And so that would be the second drag we expect. And then, the third is just broader restructuring. We’d indicated that we would try and front load to an extent the restructuring expenses. You saw CHF300 million, just north of CHF300 million in the fourth quarter. This year, we’ve estimated around CHF1.6 billion. That was the guidance we gave in October for this year. And for next year, it’s about CHF1 billion. So, you’ll see the P&L absorbing those restructuring expenses as well through the course of this year. Again, we’ll give a further update as we begin — as we get through the rest of the year, but we’re really three months into the execution of our strategy. And really, so when we say we’ll be loss-making for this year, it’s to absorb all of those costs.
You asked specifically, is it the IB? It’s a combination, actually, for example, our cost reduction program, it really goes horizontally across the organization. So, it really affects all of our business units and all our infrastructure areas.
Ulrich Koerner: Amit, with respect to compensation question, as you have seen, variable compensation 2022 was reduced by 50% compared to the last year, but even more significantly to previous year, so to say. And you are alluding to, I guess, to what we call the transformation award. That is an award which goes to, call it, a pretty selected, relatively small group of people in the firm. These are colleagues which, independently of hierarchy, and this is also important, independently of hierarchy, who have — if you want additional important tasks to support our transformation and to help us with the transformation. And overall, this is not an — in my eyes, very material amount. And the award has on top of it — and this is also to bear in mind for you, has on top of it a strong cliff vesting element in it, which kicks in if everything gets done as we laid out.
And we are convinced of that, this kicks in after 2025. So, overall, if you look through ’23, ’24, ’25, that will not disturb your model in any meaningful way.
Amit Goel: Okay. Thank you.
Operator: The next question comes from the line of Stefan Stalmann with Autonomous Research. Please go ahead.
Stefan Stalmann: Yes, good morning. I wanted to follow up on liquidity, please. In one of your recent disclosures, you did point to some liquidity breaches in some of your subsidiaries. And I was wondering if those breaches have been resolved since then. And the second question relates to your funding cost guidance, the CHF0.5 billion increase that you mentioned for 2023. Is that relating, in a relatively narrow sense, to wholesale funding only? Or are you also allowing for some adverse pricing effects on deposits, either by trying to get them back or by having to offer more to your existing depositors? Thank you.
Dixit Joshi: Stefan, yes, happy to take both of those. On liquidity, as we said in October, pretty exceptional month for the company at that point, and glad that it’s now behind us. As Ulrich mentioned, more than two-thirds of the flows occurred in October and more than 85% in October and November. And in our disclosures, we were pretty fulsome in October around some temporary breaches that we had. So, I’d highlight the word temporary because, as you say, were they resolved? Yes, absolutely. As you know, when we’re operating multi-legal entity construct, we would try and retain the appropriate level of liquidity in each of the entities, but not necessarily excesses at the entity level. We would retain those excesses in the group.
