Letter from the Chairman
Annual Report 2014 BME
One of the leading markets in capital flows
The financial restructuring process continued in
2014, and corporate deleveraging and equity traded
instruments were increasingly popular financing alter-
natives. New financing flows or capital investment
totalled €36.1 billion, This Spanish equity market was
positioned second in Europe in this area, and eighth
in the world.
Thirteen companies carried out share placement
operations to raise funds (public offerings and initial
public offerings) compared to two in 2013. Of these,
11 launched initial public offerings (IPOs) prior to
joining the market, with all 13 raising financing of just
over €7.9 billion, 17 times the 2013 figure.
Non-resident investors are the main holders of
Non-resident investors own over 40% of the shares
on the Spanish exchange, a record number and also
far higher than at the start of the crisis. We would
note that this figure has remained above 30% for
the past 20 years, an indication of the consolidation
of the Spanish economy and market on the interna-
tional stage. The strength and loyalty of foreign inves-
tors have brought greater stability to the exchange.
BME increases profits and dividends
In 2014, BME focused on reinforcing what we consider
our core mission, our reason for being: facilitating
transparent and efficient price formation that is fair
to all participants in our markets and helping fund
The company’s results are very satisfactory, despite
the challenging backdrop. BME reported net profit of
€164.9 million in 2014, 15.2% up on 2013. Revenue
was 11.3% higher year-on-year at €342.5 million. The
largest contributors to the increase in revenue and
profit for the year were the Equity, Information, IT and
Consulting, and Derivatives businesses.
Both the return on equity (ROE) and the operating
cost/income ratio (efficiency ratio) improved year-on-
year. ROE climbed 5 points during the year from 35.9%
to 40.9%, while the efficiency ratio improved by 2
points from 32.2% at the 2013 close to 30.2% in 2014.
BME maintains a sound dividend policy and this year
proposes a 15% increase in shareholder remunera-
tion to the General Shareholders’ Meeting; this is the
highest in themarket operators sector. This is possible
as a result of increasing the final dividend by 37%.
Largest number of listings in four years
The Spanish exchange saw 13 new companies joining
all its segments, with seven listing on the primary
market and six on the MAB. The year also saw the
addition of new SOCIMIS (REITs) valued at €2 billion.
These real estate investment trusts are yet another
traded product available to issuers and investors.
Households increase their investment in shares
Once again, households are the second largest
owners of shares, accounting for 27% of the total,
nearly seven percentage points higher than during
the 2007 crisis and the highest for 11 years. Economic
stability, the diverse range of investment products
and the remuneration policies of many companies
have all helped attract retail investors.