(Banco) Popular decision? Shares rise as chairman Angel Ron ousted

 
Hayley Kirton
Follow Hayley
Portuguese Economy Facing EU Bailout
Shares in the bank are now some 70 per cent lower compared with a year ago (Source: Getty)

Shareholders can be a harsh bunch sometimes; shares in Spain's Banco Popular shot up today after the board voted to oust its long-serving chairman.

Angel Ron has sat at the helm of the struggling bank for more than a decade, but his leadership, include poor progress in ditching the lender's toxic assets, has recently sparked grumbles from investors.

The board also announced that it planned to replace Ron with Emilio Saracho, currently a vice chairman at JP Morgan Chase, and it is intended for him start his new role by the first quarter of next year.

Shares in the bank soared on the news, and closed up 13.7 per cent at €0.94. However, the share price is also more than 70 per cent lower than it was this time last year.

Read more: Bank of England stress test results - what did the lenders have to say?

A new chairman on the horizon not the only reason Banco Popular shareholders have to be cheerful. The Spanish media also reported today that the bank could be in talks with BBVA, among others, for a potential merger.

Banco Popular declined to comment on the merger reports. A spokesperson for BBVA said it would not comment on market rumours.

Related articles