Operator: Our next question is from Daragh Quinn from KBW.
Daragh Quinn: The first 1 would just be on Spain and looking at the current level of your for those with variable rate mortgages 2023 will obviously be quite a dramatic change in in mortgage payments. What level do you think would imply stress levels or have a material impact on cost of risk or require further write-downs of real estate assets? And then a second question just on capital and potential capital return, you very clearly indicated your targets and also very clearly indicated your policy or approach to that with the pro forma January first level being 12.8 and presumably with the outlook for additional organic capital generation in the early part of the year. At what stage do you think you’ll be revisiting this potential incremental capital return?
Will you be waiting for the second half of the year? Is it something you want to wait and see where the numbers finish at the end of the year. Maybe if you could just give us some idea of what you’re thinking is around timing.
Onur Genc: Daragh, thank you for the questions. On the first one, you should know that the key — the mortgage portfolio in Spain, we are relatively positive despite all the rate rises that we are seeing. So we’re asking for a threshold that the NPLs will then go up significantly and so on. We don’t think it will matter too much today of 3.5, 3.36 versus the 4% Euribor and so on. The reason being when you look into obviously the cash flow for the client, the load on the client, what matters is if you have a variable rate loan that was originated with recently, those are the loans that is most exposed, because the loans that you have given 10 years ago, 15 years ago in variable rate loans, the principal in the quarter in the installment is now much lower.
As a result, the increase in the monthly installment will not be that high if the loan that you have gotten is relatively old. When we look into that portfolio, in the last five years, 80% of the mortgages that we granted in Spain, 80% were fixed already. So our loan portfolio, variable rate mortgage portfolio, dates back to many years ago. In that sense, the increase in the installment will not be that high. In that sense, 3.36 of today, or it can go up to more 4%, it will not make a huge difference in our view in terms of sensitivity. The second question, at what stage would you return the excess capital back. This is a question that we cannot answer apologies. It’s basically any time. And whenever we feel the need, we’ll do that. But I’m repeating once again that our commitment, our target is 11.5% to 12%, repeating it for the third time.
And the excess capital, as we have said before, we are committed to either grow very profitably organically in our business or return it to the shareholders. And the timing obviously, depends on the conditions and so on. So I would not be giving a specific data on this one.
Operator: Our next question is from Britta Schmidt from Autonomous Research.
Britta Schmidt: I’ve got two questions. So first one is just picking up on the last point. You’re funding your growth organically. You’re adamant that 12% is enough, but you are still at 12.6%. So why did you not — why did you decide not to distribute more this year? And the second one is on the guidance. If you could just give us the equivalent FX assumption for the cost growth if it grows from 15% to 16% inflation? How much do we need to take off for devaluations?
