Now it’s hard to predict what exactly will be, but people expect either one or two more hikes. But that competitive impact will remain to be seen, and we will play our role to see, okay, how do we balance it out in terms of the role that we play in different markets, but typically more of a follower in, let’s say, the incumbent markets in which we’re active and where we grow the number of clients in the, let’s say, the challenger markets. There we sometimes do marketing actions to attract customers like we have seen now in Germany, for example, and that led to also an incredible amount of €16 billion additional deposits. The good thing is that interest rates at some point will rise, but we have a replicating portfolio whereby the majority indeed, 55% of our euro-denominated deposits is replicated for longer than one year, and that will be a good support even when competitive pressure increases to further benefit from this interest rate environment and what that level exactly will be we will need to see depending on the market circumstances.
Ljiljana Cortan : Good morning, Giulia from my side. Correct. Our asset quality remains strong and resilient as well in the second quarter. And we do see some better prospects eventually for soft lending in some of the geographies we operate in. However, this uncertainty is still there. And thus, as said, we remain vigilant when it comes to the higher interest rate and inflationary environment and specifically across the portfolios that are experiencing higher, I would say, cost of doing business or higher borrowing costs, but as well for private individual’s cost of living. That means that the obviously focus is on the more cyclical parts of the portfolio. Clearly, we are looking at the commercial real estate and acquisition finance but as well as some other steel energy-intense manufacturing parts of our portfolio.
So far, we do not see structural deteriorations there, but that’s also one of the reasons why we proactively take the measures in order not to allow those to become visible. Thank you.
Giulia Miotto : Thanks.
Operator: The next question comes from Raul Sinha from JPMorgan.
Raul Sinha : Yeah. Good morning, everybody. Thanks for taking my questions. Two from me as well. The first one, Steven, I was just wondering if you think you have seen the peak in inflation pressure on the cost side? And the reason I ask that is because I think costs came in slightly below where the market was expecting. They seem to be annualizing just below where consensus is sitting for the full year. Would you expect perhaps there to be more or less cost pressure in the second half of the year compared to what you’ve delivered here? That’s my first question. And then the second question, just coming back on NII. Some of the other banks, which do have financial markets businesses where the funding cost of the Financial Markets business is still booked in NII are moving towards banking NII definition, in particular, HSBC and Standard Chartered in the UK.
So I guess you guys have the same accounting asymmetry. So I was wondering whether you considered perhaps at your end to refine the definition of NII or perhaps give us another measure in terms of banking NII. Thank you.
Steven van Rijswijk: Thank you. Maybe I’ll do the second question first. We’re currently not considering to the final definition, but I can see that it requires some explanation because it indeed moves from NII to other income. And Tanate, I’ll give you the first question.
