Market Guide: Retail Investment Market in Spain 2006

EXECUTIVE SUMMARY - MARKET HIGHLIGHTS

Market overview

Market forecasts

Market regulation

Competitive market structure

Market leaders

INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

CHAPTER 1 MARKET OVERVIEW

Introduction

The retail market accounts for more than three-quarters of investments in mutual funds in Spain, and more than 50% of deposits

Close to 60% of all retail investments is held in deposits

Since 2003, the composition of household savings portfolios has been stable, with nominal increases in the proportion of mutual funds

CHAPTER 2 MARKET FORECASTS

Introduction

Key findings

Deposits and mutual funds will continue to account for more than 80% of household wealth

CHAPTER 3 MARKET REGULATION

Introduction

Key findings

The Central Bank and the Comisión Nacional del Mercado de Valores regulate the Spanish financial services industry

The Banco de España has enhanced the anti-money laundering requirements applicable to banks

Spanish credit institutions, including banks, adopt new accounting standards

Spanish savings banks adjust to closer regulation by the Banco de España and CNMV

For banks and investment companies, Basel II capital adequacy requirements imply additional investment in risk management expertise and in IT systems to calculate risk

Banks, asset management companies and investment companies that belong to financial conglomerates face additional supervisory requirements

Legislation aims at improving the flexibility and efficiency of the collective investments sector, while enhancing investor protection

New rules govern the portfolios of investment companies

Upcoming EU legislation (UCITS directive and MiFID) facilitates market development and enhances consumer protection

CHAPTER 4 COMPETITIVE MARKET STRUCTURE

Introduction

Key findings

Credit-co-operatives represent close to one-third of all banks in Spain

The top two banks dominate Spain's banking industry

The leading savings bank rivals Spain's biggest banks

The market leaders control more than 40% of the banking industry

Spanish banks are increasing their branch presence

The leading banks also dominate the collective investments industry

SICAVs represent the largest category of available collective investments in Spain

Competitors in securities trading include investment companies and other authorized institutions

CHAPTER 5 MARKET LEADERS

Introduction

Key findings

BBVA is the market leader, based on customer deposits to commercial banks; it has the second largest asset management company

Banco Santander trails the market leader in banking but ranks first among asset managers

La Caixa ranks third among banks and asset managers

Caja Madrid is the fourth highest ranked bank by total deposits; Gesmadrid is the fifth largest asset manager

Banesto rounds out the top 5 banks, while Ahorro Corporación is the fourth largest asset manager in Spain

APPENDIX

Definitions

Asset manager / Asset management company

Bank

Collective Investment Scheme

Friendly society

Fund of funds

Hedge fund

Investment company

Non-retail market

Retail market

UCITS

Further reading

Savings and Investments SPP

Interactive Databases

Reports

Related Global Wealth Service SPP Reports

Interactive Databases

Market Reports

Strategic Insight Reports

Wealth Management Competitor Tracker

SPP writing team

List of Tables

Table 1: Total Savings & Investments segmented by retail v institutional, EURm, as at Dec 2005

Table 2: Total Savings & Investments segmented by retail v institutional, in percentages, as at Dec 2005

Table 3: Retail Savings & Investments, segmented by asset class, EURm, as at Dec 2005

Table 4: Retail Savings & Investments, segmented by asset class, EURm, 2001 - 2005

Table 5: Retail Savings & Investments, segmented by asset class, in percentages, 2001 - 2005

Table 6: Retail Savings & Investments, segmented by asset class, EURm, 2006 - 2010

Table 7: Retail Savings & Investments, segmented by asset class, in percentages, 2006 - 2010

Table 8: Number of banks segmented by type, as at Dec 2005

Table 9: Top 5 banks by Customer Deposits, as at Dec 2005

Table 10: Top 5 savings banks by customer deposits, as at Dec 2005

Table 11: Top 5 banks and savings banks, by customer deposits, as at Dec 2005

Table 12: Top 5 asset management companies by assets under management (AuM), as at Dec 2005

Table 13: Number of collective investment schemes segmented by type, as at Dec 2005

List of Figures

Figure 1: Deposits and equities form the bulk of savings & investments in Spain in 2005

Figure 2: Deposits represent 57% of household savings, while mutual funds account for just over one-quarter

Figure 3: Deposits consistently account for the single highest proportion of household assets, followed by mutual funds

Figure 4: Over the next 5 years, deposits will continue to dominate retail savings & investments, reaching EUR681bn by 2010

Figure 5: Credit co-operatives dominate the Spanish banking sector

Figure 6: BBVA and Banco Santander control 29% and 24% of the bank sector, respectively, measured by customer deposits

Figure 7: La Caixa controls one-fifth of the savings bank sector

Figure 8: The banking sector is dominated by the leading banks and savings banks, in terms of customer deposits

Figure 9: Santander manages one-quarter of all mutual fund assets

Figure 10: Over 90% of available collective investments are SICAVs or equity funds