And the LCR ratio, as you see, is up from the lows in the quarter to an average of 144% for the quarter and, as we’ve indicated, has improved in January as well. So, we’re three months into the restructuring. We’re taking all the necessary steps. And we’re starting to see, as you can see, positive momentum on deposits in January. The second question was really on really deposit costs. And I would say in the NII guide in the first quarter, it’s partly why we’ve guided to a loss in the first quarter for Wealth Management as well is we have a reduced deposit base compared to what we had in September. You see that impacting the NII, of course, in Q4 as well, and that will also have a knock-on impact into Q1 as well. That said, the evolution from here will depend, of course, on both factors, both volume of deposits, but the other is also the evolution of interest rates through the course of this year.
The corollary to this is also funding cost where, as I’ve indicated, we’re working hard on optimizing the balance sheet and ensuring that we can squeeze as much as we can out of it and reduce our funding cost. And step one on that path was to derisk in order to reduce our funding needs and then to be able to issue less in the capital markets, which you’re now seeing through our issuance plan as well. So, a combination of all of those would lead to NII efficiency.
Adam Terelak: Just a quick follow-up. The guide for NII is on a static balance sheet. The deposits you’re bringing on board January to date, does that increase or decrease the NII guidance?
Dixit Joshi: We would — look, depending on the NII evolution, we’d always amend our modeling and our calculations. That’s normally what we do. In fact, in October, we’ve made assumptions, forward assumptions on the reduced balance sheet given the events in the first three weeks in October, which effectively reduced even from the static balance sheet that we had at the end of September, obviously, reduced the NII, which in the numbers that I’ve given you in October really factored in a reduced balance sheet as well. Today, when we remodel our balance sheet, we have lower balances, actual balances at the end of the year, but rates are slightly higher and the net outcome is roughly the same at around CHF900 million for NII uplift. But look, as we evolve our balance sheet, we’ll give you further updates and guidance on that.
Adam Terelak: But no comment on the January cost of deposits?
Dixit Joshi: No, on deposits, as Ulrich mentioned, we’re — it’s still our cheaper source of funding. We’re competitive. As we’ve said, there’s been more competition from deposits from the rest of the industry as well through the course of last year. And as always, it’s an important part of our funding mix. We’ll continue to remain as competitive as we need to be there.
Adam Terelak: Brilliant. Thank you.
Dixit Joshi: Sure.
Operator: The next question comes from the line of Piers Brown with HSBC. Please go ahead.
Piers Brown: Good morning. My question is actually on short-term wholesale funding. We’ve talked a lot on the call about the long-term debt issuance plan and also the positive developments in terms of deposit flows. But if I look at the quarterly report, you’ve got some quite negative wording around the impact of the November credit rating downgrades on your access to short-term funding. And I wonder if you could just address that in terms of what you’re seeing more recently on access and cost of short-term funding and the impact on the IB financing derivatives businesses. Thanks.
