Santander, the biggest bank in the eurozone by market capitalisation, continues to generate capital at such a rate that it may have to return cash to shareholders next year through a special dividend, according to Alfredo Sáenz, chief executive.

The financial crisis has prompted regulators globally to press the banks to increase their capital ratios – a measure of financial strength. Santander has set a target for core tier one capital – the narrowest measure, including only equity capital and reserves – of 7 per cent of risk-weighted assets, which it regards as adequate for its retail banking model.