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: Omar Fall - Barclays Bank PLC, Research Division - Analyst
: Just firstly, how much of the decline in the core lending was related to the protective drawings being repaid? And are you saying now we are at
the trough of volume growth in Wholesale because, in some ways, it feels like this business is shrinking forever, particularly with this restructuring
you've announced today?
And then on that same note, in Wholesale, why didn't you take this opportunity to deal with financial markets? The business has made an ROE for
-- it goes through its cost of the capital in basically almost a decade. So wouldn't it be an obvious candidate for restructuring?
And then -- so I think I misheard that the changes to the Maggie program are completely unrelated to the Unite program, right? So could you
update us on that one and potential cost savings there?
Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst
: Got it. And sorry, as just a cheeky follow-up on the TLTRO. How is the balances spread or the allocation across the divisions just so we can get a
sense of, for our modeling, the impact on NII and NIM?
Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst
: Just a couple of questions. Firstly, coming back to the pullback in the Wholesale Banking from Asia, LatAm, can you just give us a feel for what kind
of sort of volume RWAs or revenue impact we should be thinking about? And timing-wise, when does this shrinkage get underway? And is it also
fair to assume a lot of it's going to overlap with your oil and gas commodity and shipping book?
And then the second question is on capital, more just -- really just a technical point because I think at the first half stage, you were letting your
profits flow into CET1 capital. But then I see at the third quarter stage, you're not letting the profits flow into CET1 capital. So sorry if I missed it, but
what's the thinking there? What's the -- have the regulators said something there? So just some color on that sort of moving parts on your CET1
capital, please.
Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst
: Can I have 2, please, as well? The first one is just on dividends. If the ECB were to allow dividend payments next year, are you intending to pay the
2019 reserve dividend to the EUR 1.8 billion roughly as well as 50% for 2020? Otherwise, I'm struggling to understand why you're accruing the EUR
788 million that you have taken in the third quarter. So that clearly implies you intend to pay into 2019 as well as 50% payout for 2020. If you confirm
that, that would be helpful.
And then the second one is a broader question on the return on tangible equity target that you're reiterating the ambition of 10% to 12%. I'm really
struggling with that, I have to say. I mean you're at 5.1% this quarter. The cost of risk is not that far away from a through-cycle normalized level.
And in terms of your sort of cost messaging put against the NII pressures, it doesn't look to me like that it's going to be a very significant step-down
Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst
: That's really helpful. If I can just follow up on the ROTE point. I suspect the cost-to-income ratio is obviously going to be a key driver of the
improvement going forward. And I think you referred to how low rates have impacted, structurally, your cost-to-income ratio. Should we think
about the ROTE ambition as something which also considers a normalized rate environment?
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