Spain’s Banco Santander has said net profit for the first quarter fell 26% compared with the same period a year earlier owing to slower economic growth in Brazil and Britain as well as a recession at home.

Spain has paid sharply higher interest rates to raise €2.5bn in a medium-term debt auction, reflecting fears it will be caught up in the fallout of the Greek crisis.

Banco Santander SA and Banco Bilbao Vizcaya Argentaria will set aside €4.5bn to meet a Spanish government order to boost real estate provisions as analysts speculate the industry may need more.