If we travel at about the level we were this year, our math tells us we should be right in line with that. And then lastly, on the litigation item, litigation ran higher than we expected this year for sure. And some of the items were frankly unexpected. And so we would hope that that goes back to a more moderate level in the years to come. So, again, lots of things to manage in the years ahead, but we think our model works well.
Kian Abouhossein : Thank you.
James von Moltke: Thank you, Kian.
Operator: The next question comes from Andrew Lim from Societe Generale. Please go ahead.
Andrew Lim : Hi, afternoon. Thanks for taking my questions. So first of all, well done on the operating leverage coming through in the Corporate Bank and a Private Bank. But it seems tainted somewhat by what’s going on in the corporate and other division. You seem to have quite large outsized negative revenues and large costs. Can you tell us what exactly happened in the fourth quarter? Whether these should be temporary in nature and move back down to a lower level? Secondly, on the IB side, I think you’ve talked about the robustness of trading coming into ’23. Could you give a bit more color on whether this is macro driven or credit driven? And maybe give us a sense of year on year increases for January. And then on the IBD side, you’ve been weak there.
This is origination and advisory of course. Have you seen a sense in January that this is rebounding strongly with the rally markets that we’ve seen? And then thirdly, I’ve got to come back to this buyback issue. I just can’t rationalize it in my head why you’re pausing this. I mean, you’ve given an answer leading to modeling considerations. And these happen to be taking into account. But at the same time, I can’t sense that things have actually deteriorated in terms of macroeconomic outlook in the past quarter and you yourself say that cost of risk is actually going to be flattish year on year for ’23. Is that really an issue what’s happened in the past quarter to make you more cautious there? And if it’s not really that if it’s more to do with, like credit risk rate inflation, as you’ve alluded to.
Is there a sensor that maybe the CET1 ratio might come under a bit of pressure from the 13.4% that you’ve just reported? So a bit more color there, please?
James von Moltke: Sure, Andrew. I’ll try to get through as much of that as I can. So in the fourth quarter, the biggest expense, that was the litigation item, which is in corporate and others. So the biggest if you like variance to Q3 was a litigation item. In general, to your point the push out of those expenses, that you’ll see on a pro forma basis, and then going forward represents depending on the business, maybe to up to 4%, of a cost income ratio. So it’s a significant impact, but over time, given the efficiencies that we’re working to achieve, especially in infrastructure we think that essentially washes out by ’25 and the guidance we gave in March for the businesses assumed that push out would take place. So I don’t think in substantive changes really much about the businesses in their trajectory.
