The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Domenico Santoro - HSBC, Research Division - Analyst
: Just a couple of follow-ups. First of all, on the target in terms of net profit. Does the EUR 3 billion at least net profit include also an allocation of the
Nexi capital gain to potential further provisions for the situation, the economic situation. And whether this is already included in the 90 bps. The
reason why I'm asking, we have seen, of course, your colleagues, your Spanish colleagues charging much more in the quarter, more than EUR 1
billion for the large. So I'm just wondering whether you're going to book an additional part, which is a model update, if my understanding is correct,
once you have the input from the ECB in the second quarter.
The second question is on capital. Can you please tell us what could be the impact positive from the measures that the European Commission has
approved last week, especially the SME supporting factor and the others. And whether you expect, in the second part of the year when you have
more visibility on the situation, some risk-weighted assets inflation because you're going to potentially update your PD, LGD in the portfolio. Can
you also mention whether you're going to take up more in terms of TLTRO at the end of June, and what could be the maximum allotment.
Question: Delphine Lee - JP Morgan Chase & Co, Research Division - Analyst
: I just have one question actually. In regards capital, when I look at your Slide 91, just wanted to understand a little bit sort of where the -- it looks
like in your 14.5% CET1, you have this quarter a slightly bigger benefit from DTAs and also a smaller impact from IFRS 9 transitional adjustments.
Just wondering sort of if you can explain a little bit the difference and the mechanics.
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