Because, of course, over the last couple of weeks we have seen kind of news flow of Adani or Americanas. And of course, you can argue that this is — these are accounting issues, but we kind of seem to be having these idiosyncratic kind of relatively large risks or potentially large risks, versus the sector ones more macro driven ones. How do you reconcile those risks as well within the guidance? And the question around the volumes around the Corporate Bank in particular, because, of course we talked about the revenue growth in 2022, which I have to say across the board impressive. But what sorts of business volumes do you actually see in a corporate bank over the next let’s just say two years. Because, we are kind of starting to see weakness in originations across the board.
Thank you.
Christian Sewing : Thank you for your question. I’ll start on the on the cost of credit risk. So for 2023 we see the credit cost provision that we said would be between 25 and 30 basis points on our loan book at amortized cost has being driven really by Stage 3 provisioning, right. So meaning that we’ve done quite a careful bottom up analysis in the different sectors of our book, where we want to provision to take into account, higher rates, recession, so, especially on midcap on commercial real estate, leveraged lending. And we do not see really forward-looking information or macroeconomic variable as being a key driver like it has been in 2022, where we had thrown in €58 million I believe about one over 25 basis points driven by the deterioration of macroeconomic environment.
So the base case in — the base case of the better outlook would definitely mean that we could have some relief coming from these effects. But, really the rest of the of the credit cost provision are driven by these bottom up analysis that which are sectoral analysis and have taken into account the headwinds that we’ve all talked about higher rates higher — from high inflation, recession, et cetera. In terms of idiosyncratic risk, of course, when starting this exercise, you don’t foresee everything that you can account during the year, you do you do account for some. I won’t comment on specific situation as you can expect, but as I have outlined in my in my talk, we do have for every exposure way to clear framework, either industry risk limits that prevent exposure to higher risk industries, it contributes framework that’s quite robust that would limit exposure to higher risk country as well as a concentration framework that also very important to avoid large concentration risk.
And when structuring lending, our lending standard do lead to outcomes where we well collateralized and aware we have structural enhancements. And that’s what I would say that gives us some confidence around our loan book and managing idiosyncratic event.
Olivier Vigneron: Magdalena, and on the growth side, in the Corporate Bank, and then later on the Private Bank. Look, on the one hand, we see still, an increasing loan book and in the Corporate Bank. It’s a little bit more in the short term side, that’s the change, which we have seen in the second half of 2022, because corporates are also obviously securing the liquidity, a little bit less on long term investment facilities. But in particular, the Corporate Bank next to obviously the benefit of the NII, we see an increasing flow and revenues from payments, trade finance, and our overall cash management business, not only for corporates, but also with regard to our financial institutions, where we’re doing cash management with.
