MADRID—Cost savings arising from domestic consolidation in the Spanish banking sector should be a driver for more potential deals, bank executives told a financial event in Madrid on Wednesday. Facing ultra low interest rates and the impact of the COVID-19 pandemic, European banks are under growing pressure to cut costs, either on their own or through tie-ups. “Such deals, when done correctly, make a lot of sense and help make the business more profitable and sustainable,” Unicaja Chief Executive Manuel Menendez told the forum. Spain now has 10 banks, down from 55 before the 2008 financial crisis, with recent deals including Caixabank’s acquisition of Bankia and Unicaja’s deal to buy Liberbank. The deals have been accompanied by promises of cost savings. “Personally, I think there will be more (mergers), I don’t know when or who and I don’t think it will happen tomorrow,” Caixabank CEO Gonzalo Gortazar said. Gortazar said …