We showed it last year, not only when we foresaw the weakness in the leveraged lending, but also with the additional capital, which we had to accept that we are obviously then also right sizing there our appetite. And the same thoughts we will do when it comes to German mortgages, when it comes to the extra capital, which we have to preserve for that. I think in this regard, it is it is something which is taken into account. But there is nothing actually which makes us nervous, and which prevents us from achieving our goals. It actually — it is something which in my view, is not only fine tuning but optimizing our capital allocation. That’s exactly what we need to do.
Andrew Coombs: Thank you very much.
James von Moltke: Thank you, Andrew.
Operator: The next question comes from Kian Abouhossein from JPMorgan. Please go ahead.
Kian Abouhossein : Yeah, thanks for taking my questions. And the first one is just quickly to clarify the decision not to have a buyback. It’s your decision or is being asked by you to wait until further notice? The second question is related to cost. If I look at the ’23 stated cost relative to ’22, clearly there are some not one of items but some transformation costs in there, some litigation costs in there roughly 550 or so have you added together. Should we assume to a similar amount of these kinds of costs in ’23. And in that respect, you mentioned that this business will make a loss of €1.2 billion that includes the CRU. And can you tell me the cost of the C&O business so I can get a bit of a better clarification on my modeling?
And then the last one is I made it very quickly. You used to have a cost guidance of €18.5 billion to €19 billion in ’25. Should we just ignore that now, as we are in a new world? And if that’s not the case, clearly with your guidance on CAGR, you’re not getting to your 62.5%. So just trying to understand is there some kind of cost improvement element in the later years on a net basis, rather than just sort of gross basis, or all of that has to really come from revenues?
James von Moltke: So Kian, thanks for your questions. I’ll try to be brief on all of them. So on the first, let me be really clear. The decision on the buyback was ours, it was management’s decision did not reflect any influence from the regulators. On the cost going forward. So starting with the C — corporate and other area, the 1.2 we gave hopefully a little conservative when all said and done includes the CRU. So it is a number that is pro forma for all the changes that I mentioned in terms of the push out in DBCM, in the CRU. And we’ll be able to give you some more numbers over time on the on the restated basis for that. So, lots of ins and outs, but the net is down. There will be the sort of call it €500 million or so of now of shareholder expenses, and then a little bit of volatility around things like restructuring and severance plus the CRU expenses in there.
Those CRU expenses are coming down significantly over the years to come. So we’d see some improvement from that over time. And only 18.5 to 19, look, let’s start with just FX, which is I think we disclosed something like €600 million, added €600 million to the expense base. Some of that of course, will have come back a little bit with the rally in the Euro so far this this year. So there’s a little bit of FX, a little bit of incremental investment that we’ve now built in. But remember, if revenues in 2025 are a €1 billion or €2 billion higher than we had at least initially anticipated, through the sum of everything that we’ve talked about each billion of cost at 62.5% supports, €625 million of additional expenditure. So there’s flex in the ratio.
