But yes, we see many more benefits. And I want to again insist on the structural change in the model, and that is what one transformation is allowing us to do. We’re reducing not just efficiency as a ratio, but the cost to serve the customer. We see a very, very strong acceleration in the numbers that you have in the presentation in the second half of the year, and we hope to carry that. We have positive momentum in all our markets. And again, I use the example of the U.S. because the U.S. is the place where we have an upscale auto business. But with our common platforms in the consumer and retail banks, we will get to be very competitive on the deposit gathering side. You saw in the slide that Hector showed that we had targeted around 400 million in savings in our consumer business in the U.S. by ’25.
With delivered 200 million this year. We are, of course, investing investments in the U.S. transformation will not be as large next year. So you are going to see a much better performance for the U.S. as a whole in ’25. But what I said before, we will migrate our existing retail customers in ’25 to this new platform. So in ’25 and again, this is only one example with the U.S., driven by one transformation by the common platform that technically is already up and running, which is in the regulatory approval process. So that should drive increased efficiencies. And then again in Hector’s slide. You saw that one transformation is helping us across the board in many other areas in technology. So our investments, one transformation investment in technology have reached 2.4, but they’ve been more than offset in real terms by savings in the global tech platform.
So again, we’re very confident that these numbers will be delivered and will get better. You want to give a bit more on the one transformation.
Hector Grisi: Do you want me to compliment? I think this is one very important point, Ignacio, to remember about. I mean, one transformation is not just about the platforms. There are two steps before it, which are quite important where you see the impact on the cost. One is simplification. As you have seen in one of Ana’s slides, you saw the amount of products that were basically diminishing throughout all the whole organization. So that’s very important. That’s simplification. Then the second is automation, which basically allows us to automate a huge amount of processes and basically have people in the branches and mainly a lot of amount of our products in our apps, which basically allows us to spend more time with clients selling products, et cetera, and also diminishing the cost.
Opti means better service user experience, less cost per transaction and client, more revenues, which is best basically means, profitability. And then you’re going to see an inflection point that goes through ’24, ’25 when the platforms are being deployed and cost should start coming down in a much faster way.
Operator: Benjamin Toms from RBC.
Benjamin Toms: You’ve guided for UK NIM to be down in 2024. Can you quantify how much NIM pressure you’d expect to materialize this year in the UK versus the Q4 exit rate? Or if it’s easier, express this as a percentage expectation for NII change in the UK 2024 versus 2023. And secondly, your structural hedge notional in the UK increased by 7 billion or 7% quarter-on-quarter. That compares to a fall in current accounts of about 1.6 billion, that’s a little counterintuitive. Can you explain this is driven by growth in savings deposits? Or rather, is it because you manage the structural hedge using a dynamic rather than the caterpillar approach? And could you guide us, please, for how much change you expect in the structural hedge notional in the UK in 2024?
Ana Botin: So yes, let me just frame the answer in terms of the UK NIM in the context of our retail business. So again, our overall retail business for ’24 will do better than ’23, driven more by the Americas, in this case, both Latin America, but also the U.S. because it’s on the consumer side actually. So, what’s very important is again, single and mid single digit growth is what we are guiding in terms of revenue growth overall. With mid single digit growth overall, I mean, also for net interest income. Within that, the UK, this year has delivered a 13%, I believe, 13% RoTE. Will continue to be double-digit, but will be lower profitability. So, as you as you know volumes and the top line net interest income, I’ll let Hector and Jose give you a bit more detail on that, but has not been as strong because we have basically managed the UK for profitability.
So, we have a very strong business in mortgages, very strong business in current accounts in the UK at scale and competitive. And for ’24, we expect still double-digit profitability, but lower than this year. What’s important and again, as we think about the one transformation, that is going to help maybe not as much as in other countries next year in the U.S. in terms of the top line, but is going to help already on the cost side. So, we’re guiding UK should be flattish cost next year with low cost of risk, in a very, very strong balance sheet. And so, again, leading to lower profitability overall in the UK, but still double-digit RoTE. So, in terms of, I don’t know if you want to give a bit more detail on volumes or on NIM in the UK?
