[VIEW] agent=Treasury Funding Manager | scenario_id=22 | rounds=20

--- Round 0 ---
[R0.1] Regulatory Capital Manager (speak, public): To make an informed recommendation on the Tier 2 capital issuance, I need clarity on our refinancing pressures and liquidity resilience. How are we positioned in terms of incremental funding costs and their expected impact on our earnings? Additionally, are there any market-pricing ceilings or external capital-floor expectations we should consider?
[R0.2] Treasury Funding Manager (speak, private to=Regulatory Capital Manager,Finance & Investor Relations Partner): Regarding our refinancing pressures, we have senior unsecured maturities of $1.2 billion and covered bond maturities of $650 million in 2026. Our liquidity position is strong with an LCR of 128%, well above our internal minimum of 115%. As for incremental funding costs, we should consider recent peer Tier 2 spreads averaging T+210 bps with a new issue concession of 15 bps. We need to evaluate how these costs might impact our earnings under various scenarios. Additionally, could you provide insight on any expected regulatory headroom or balance-sheet growth to help us gauge our capacity for this issuance?
[R0.3] Finance & Investor Relations Partner (speak, public): To address the refinancing pressures and liquidity resilience, it's important to note that while our current LCR is robust at 128%, we must consider how the expected Tier 2 spreads of T+210 bps, including the new issue concession of 15 bps, could impact our net interest income. Each 50 bps increase in funding costs could reduce our NII by $18 million annually. Additionally, we should evaluate our regulatory headroom and potential balance-sheet growth to assess our capacity for this issuance effectively. Let's discuss these aspects further to build a comprehensive view for our recommendation.

--- Round 1 ---
[R1.1] Regulatory Capital Manager (speak, public): Thank you for the insights on refinancing pressures and liquidity. Regarding regulatory headroom, as of now, we have a MREL requirement of 24.0% of RWA, and we are currently at 22.7%. Additionally, our CET1 position at FY25 close is 12.4%, which is above our internal target of 11.5%. Given the expected Tier 2 spreads and their potential impact on our NII, how do we feel about our balance sheet growth projections and their alignment with our capacity for this issuance?
[R1.2] Treasury Funding Manager (speak, private to=Regulatory Capital Manager,Finance & Investor Relations Partner): In light of our current CET1 position at 12.4% and the MREL requirement of 24.0% of RWA, it seems we have some flexibility for balance-sheet growth. However, we need to closely monitor how the projected Tier 2 spreads may influence our capacity for this issuance. Could we explore any projections for balance-sheet growth that align with our regulatory headroom? This will help us make a more informed decision regarding the timing and sizing of the issuance.
[R1.3] Finance & Investor Relations Partner (speak, private to=Regulatory Capital Manager,Treasury Funding Manager): To effectively gauge our balance sheet growth projections, we should examine both historical growth rates and current market conditions that could impact our capacity for this Tier 2 issuance. Aligning our projections with the regulatory headroom we have will be crucial. Let's ensure we have a comprehensive analysis that incorporates these factors. I propose setting a meeting to discuss these projections in detail and finalize our recommendation.

--- Round 2 ---
[R2.1] Regulatory Capital Manager (speak, private to=Treasury Funding Manager,Finance & Investor Relations Partner): I agree that a detailed analysis of our balance sheet growth projections in relation to our regulatory headroom is essential. Let's set up a meeting to dive into this analysis, ensuring we incorporate historical rates and current market conditions. This will enable us to finalize our recommendation on the Tier 2 issuance effectively.
[R2.2] Treasury Funding Manager (speak, private to=Regulatory Capital Manager,Finance & Investor Relations Partner): I agree with the need for a detailed analysis of our balance sheet growth projections relative to our regulatory headroom. Let's schedule a meeting soon to ensure we have all the necessary data and insights to finalize our recommendation on the Tier 2 issuance.
[R2.3] Finance & Investor Relations Partner (speak, private to=Regulatory Capital Manager,Treasury Funding Manager): I agree with the consensus on the importance of analyzing our balance sheet growth projections. Let's schedule a meeting at the earliest convenience to compile our data and insights, ensuring we are fully prepared to make a well-informed recommendation regarding the Tier 2 issuance.

--- Round 3 ---
[R3.1] Regulatory Capital Manager (speak, private to=Treasury Funding Manager,Finance & Investor Relations Partner): Let's schedule that meeting as soon as possible to ensure we have a thorough analysis of our balance sheet growth projections and regulatory headroom. It’s critical that we align these factors to finalize our recommendation on the Tier 2 issuance effectively.
[R3.2] Treasury Funding Manager (speak, private to=Regulatory Capital Manager,Finance & Investor Relations Partner): Let's coordinate our schedules for the meeting to discuss our balance sheet growth projections and regulatory headroom. It’s essential that we align these details to finalize our recommendation on the Tier 2 issuance effectively. Can we aim for early next week?
[R3.3] Finance & Investor Relations Partner (speak, private to=Regulatory Capital Manager,Treasury Funding Manager): I agree that early next week works well for our meeting. Let's finalize the details so we can ensure a thorough analysis of our balance sheet growth projections and regulatory headroom. It's essential we come prepared to make our recommendation on the Tier 2 issuance effectively.

--- Round 4 ---
[R4.1] Regulatory Capital Manager (leave, public): 
[R4.2] Treasury Funding Manager (leave, public): 
[R4.3] Finance & Investor Relations Partner (leave, public): 

--- Round 5 ---
[R5.1] Regulatory Capital Manager (leave, public): 
[R5.2] Treasury Funding Manager (leave, public): 
[R5.3] Finance & Investor Relations Partner (leave, public): 

--- Round 6 ---
[R6.1] Regulatory Capital Manager (leave, public): 
[R6.2] Treasury Funding Manager (leave, public): 
[R6.3] Finance & Investor Relations Partner (leave, public): 

--- Round 7 ---
[R7.1] Regulatory Capital Manager (leave, public): 
[R7.2] Treasury Funding Manager (leave, public): 
[R7.3] Finance & Investor Relations Partner (leave, public): 

--- Round 8 ---
[R8.1] Regulatory Capital Manager (leave, public): 
[R8.2] Treasury Funding Manager (leave, public): 
[R8.3] Finance & Investor Relations Partner (leave, public): 

--- Round 9 ---
[R9.1] Regulatory Capital Manager (leave, public): 
[R9.2] Treasury Funding Manager (leave, public): 
[R9.3] Finance & Investor Relations Partner (leave, public): 

--- Round 10 ---
[R10.1] Regulatory Capital Manager (leave, public): 
[R10.2] Treasury Funding Manager (leave, public): 
[R10.3] Finance & Investor Relations Partner (leave, public): 

--- Round 11 ---
[R11.1] Regulatory Capital Manager (leave, public): 
[R11.2] Treasury Funding Manager (leave, public): 
[R11.3] Finance & Investor Relations Partner (leave, public): 

--- Round 12 ---
[R12.1] Regulatory Capital Manager (leave, public): 
[R12.2] Treasury Funding Manager (leave, public): 
[R12.3] Finance & Investor Relations Partner (leave, public): 

--- Round 13 ---
[R13.1] Regulatory Capital Manager (leave, public): 
[R13.2] Treasury Funding Manager (leave, public): 
[R13.3] Finance & Investor Relations Partner (leave, public): 

--- Round 14 ---
[R14.1] Regulatory Capital Manager (leave, public): 
[R14.2] Treasury Funding Manager (leave, public): 
[R14.3] Finance & Investor Relations Partner (leave, public): 

--- Round 15 ---
[R15.1] Regulatory Capital Manager (leave, public): 
[R15.2] Treasury Funding Manager (leave, public): 
[R15.3] Finance & Investor Relations Partner (leave, public): 

--- Round 16 ---
[R16.1] Regulatory Capital Manager (leave, public): 
[R16.2] Treasury Funding Manager (leave, public): 
[R16.3] Finance & Investor Relations Partner (leave, public): 

--- Round 17 ---
[R17.1] Regulatory Capital Manager (leave, public): 
[R17.2] Treasury Funding Manager (leave, public): 
[R17.3] Finance & Investor Relations Partner (leave, public): 

--- Round 18 ---
[R18.1] Regulatory Capital Manager (leave, public): 
[R18.2] Treasury Funding Manager (leave, public): 
[R18.3] Finance & Investor Relations Partner (leave, public): 

--- Round 19 ---
[R19.1] Regulatory Capital Manager (leave, public): 
[R19.2] Treasury Funding Manager (leave, public): 
[R19.3] Finance & Investor Relations Partner (leave, public): 

