Market Leader with Potential for Further Penetration slide image

Market Leader with Potential for Further Penetration

NII-Sticky Deposit Base Resulting in Modest Deposit Pass-Through Resilient deposit pass-through¹; gradually increasing at sustained Outlook 2023-2024 • Assumptions updated to reflect resilient pass- through Gradual increase in Time and Notice deposit pass- through to 50% by June 2024 (previously expected by December 2023) Gradual change in deposit mix; Time and Notice deposits from 30% to c.45% by June 2024 and to 50% by December 2024 (previously expected by December 2023) levels of 50% Cost (bps) Current 2025 • • Time and Notice deposit pass-through to remain stable at 50% Deposit mix: Time and Notice deposits to remain stable at c.50% Factoring in higher wholesale funding costs through further MREL issuances 1) Calculated as a percentage of the cost of Time and Notice deposits over average 6m Euribor rate of the period 4Q2022 1Q2023 1 0 Time & Notice Total deposits 20 31 7 10 Time & Notice pass-through c.7% c. 10% Deposit mix: Time and Notice deposits to remain at c.50% € bn Time & Notice 17.5 34% 19.0 29% 19.0 30% 50% Savings, Current & Demand Dec 21 Dec 22 Mar 23 Dec 23 Dec 24 52
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