The following is excerpted from the question-and-answer section of the transcript.
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Question: Hugo Moniz Marques Da Cruz - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst
: I have a few questions. First, I heard you on the approval from Digicontent should be expected. I wonder if you could comment on approval from
the ECB. If you must have had some discussions with them. What's your view on that? And when should we expect to get that formal approval?
Second, in terms of regulatory changes. You flagged the EUR 5.6 billion from IRB, the benefit from operational risk also in 2022. What would be the
timing of those 2 changes? And are they dependent on completing the capital raise? Third, on NII. In the past, you gave a guidance for the sensitivity
to rate rises of EUR 120 million to EUR 150 million for 100 basis points, if I'm correct, if you could confirm that or has that changed?
Fourth, on the asset quality, I heard you why you're confident about the cost of risk, but the fact is that you're assuming no deterioration in default
rates it kind of looks like you're not assuming a deterioration from the macro.
And obviously, the market is very worried about it that the macro slowdown could lead to higher default rates. So why are you confident that this
will not happen in the case of your client base? And a final question on the legal provisions. If you could disclose the amount of provisions that
you have brought against both the ordinary claims and the extraordinary claims. This is an area where I'm actually not worried, but I was wondering
if we could actually see some provision write-backs in this area.
Unidentified Company Representative
Thank you. Maybe I will start from the last question. We do not disclose the amount of provisions for obvious reasons also for the management of
our litigation. So sorry, I cannot answer to this question.
Then the easiest one, the NII sensitivity. I confirm that in the third year is around EUR 100 million, EUR 150 million. Then the approval of the ACB,
actually, the ACB is expected to approve the capital increase and the change in the appreciation. There is not the formal approval of the business
plan.
Having said that, first of all, we expect, let's say, an approval by our AGM. As you know, they have 90 days to review our application. We will file in
the next few hours. And maybe Luigi can give some color the interactions we had with ECB stated that, of course, we have had quite a deep
interaction with the supervisory authority again, in the context of our ongoing discussions. While on the questions on just qualitative...
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