Bankia, the Spanish lender whose property losses pushed Spain to seek a bailout for its banking industry last year, posted a nine-month profit of €362m on lower impairment charges.

Land in Ireland once earmarked for homes and offices is being sold at knockdown prices to farmers, sometimes the same farmers who made fortunes selling it in the boom years, as swathes of the country return to its agricultural roots.

Santander plans to invest in Spain’s so-called “bad bank” in a sign that healthy domestic lenders are willing to support the entity created to clean up the aftermath of a 2008 property crash.