Spain's largest bank Santander said it would take an impairment charge of €600m, mostly due to its US consumer finance group.

The bank said the impairment charge would hit its fourth quarter earnings.  

The decision follows a review of the bank's goodwill and is driven by a fall in earnings at Santander Consumer USA Holdings relative to previous years, Santander said in a statement.  

Santander said that the sale of Allfunds Bank, partly to funds GIC and Hellman & Friedman and partly to Warburg Pincus and General Atlantic, would reduce its fully loaded core tier 1 capital ratio (CET1) by nine basis points in the fourth quarter. 

At the close of the third quarter, Santander's fully loaded CET1 was 10.8%.

The bank reiterated its plan to raise its dividend this year and next and raise earnings per share in 2017 and by double digits in 2018.