Alison Rose: Yes. I’m probably not going to go into that level of detail with you. I think what you can see is we have a very strong funding and capital position, a competitive position in terms of deposits, and a good acquisition and track record of bringing customers into the bank. So you can see the strength of our deposit franchise, you can see the strength of our funding and capital. And we’re very comfortable, we are able to be competitive. And you can see that through how we’re managing our deposits for volume and value.
Operator: Our next question comes from Fahed Kunwar for Redburn.
Fahed Kunwar: Just a couple of quite direct ones, I guess. The first one is, the go-forward cost base in 2023. Based on the guidance, it seems to imply around a kind of 6%, 7%. Year-on-year growth versus 2022. Obviously, that’s still generating tons of operating leverage in ’23 given the revenue growth. But going into ’24, it looks like consensus 3% revenue growth, 3% cost growth, do you think operating leverage remains positive in 2024? That would be my first question. My second question would be on the Basel 3 guidance, the exit rate of RWA’s in 2004. Are we looking at about a 200 billion number based on that guidance? And if I can sneak in a really quick question on the third one, your peers at Barclays talked about corporate deposit time mix moving to time, whereas household isn’t?
Obviously, you’ve got a very big corporate deposit base, especially in current accounts. Are you seeing differences in behavior between your SME customers and your household customers? And do you think you will see differences in behavior in 2023? Sorry, to sneak in that extra question. Thank you.
Alison Rose: Okay. We’re very happy to answer all three. And so on the cost base, we don’t talk about the go-forward cost base. I think we’ve given you really clear guidance on costs. And we’ve also talked about what our cost income ratios are going to be. What I would say is, we have a very good track record of running costs, we will continue to focus on operating leverage and discipline across the business and you will see that as we go forward. So I think that’s probably all I would say on that. On deposits and corporate deposits. Look, I think what we’re seeing is, from a business perspective, customers are largely wanting to stay transactional at this the smaller end, I talked a little bit about the example of bounce back loans still sitting in cash in people’s transactional accounts, there’s definitely a different behavior between sort of consumers and business and how they manage their deposits.
And so we would see different behaviors. For at the moment, what we’re seeing small and medium sized businesses are really focused on managing their operating costs. They’re looking to stay liquid. They have the benefit of term deposits that they can make use of the larger end of corporates. We can see people being sensitive to where they put their deposits. And we’re competing effectively on that. And on the consumer side, it really does vary from a consumer perspective. So different behaviors across retail and business, but we actively manage both. RWA’s Katie?
