Good morning everybody. It is with great pleasure that I welcome all our guests today, both those attending in person and via streaming. During today presentation, I would like to focus on the future of Banca Monte dei Paschi di Siena, especially considering the great work we did all together with the chairman, Patrizia Grieco, on behalf of whom I bring you warm greetings, and the members of the board of director to whom all I owe a special thanks. We chose to present our new business plan, 2022/2026, a clear and simple commercial bank at Palazzo Salimbeni, our historical headquarters. Just from the bank's deep roots, we can start again leveraging the trust of our customer and the commitment and dedication of our colleagues. Let's now start with the presentation. Andrea, please. Okay.
I will go quickly through the mission, then, we will make some enabling description, then the strategy. We are going to deeply explain about the initiative, commercial initiative, then there will be a closing remark and Q&A section. Next. Okay. Thank you, Andrea. Let's start from the beginning, what we want to be. We want to be a clear and simple commercial bank. This is the vision, and we have a simple mission. We want to achieve sustainable profitability on a solid balance sheet and optimize our operating platform by leveraging on historically strong commercial franchise and our talented people. We start immediately with some highlights.
We aim to achieve an attractive and sustainable profitability by targeting 60% cost income in 2024, 57% in 2026, EUR 700 million in 2024, EUR 909 million in 2026. We are going to have a strong capital, about 14% in 2024 and about 15% in 2026. Our net impairment will reach EUR 1.9 billion in 2024, and we are going to reach EUR 1.4 billion in 2026. In order to power all this activity, we are going to increase our capital by EUR 2.5 billion, and we start giving back the capital to our shareholders already with the net profit 2025 and 2026, payout ratio at 30%.
I'm sure all of you know quite well Monte Paschi, but the first time I came to this bank, and I start looking at the potential of the bank, that is a huge potential, I was impressed in putting all together this figure. We account for EUR 175 billion client asset, EUR 79 billion net customer loan, EUR 3 billion operating income. As you can see, this is the oldest bank in the world. We are number one in Tuscany, number three in Veneto, number five in Lombardy. We are the number five banks for total asset. We are going, and we can leverage in reaching all this asset and activity of the bank with 14,000 branch. We have 10,000 front office specialist, 3.7 million customer.
Our capabilities are expressed by strong partnerships that we have on the side of asset management and bancassurance. Two platforms that we build up, one is on consumer loan and the other is about to be completed, is wealth management. Then we have, I think one of the most important asset in our group that is Banca Widiba. This is an excellent digital platform with 540 financial advisors. We have a strong franchise. As you can see, if we are going to consider the market share and the GDP of the region, practically, we are going to cover, starting from Toscana, practically 1.2% of the GDP coverage.
In Veneto, we have 0.8%, so we are saying that we are positioned in the best in the region, the richest region of Italy. In some of them, there is no other important player that has the same position. Again, on Banca Widiba. 540 financial advisors, EUR 10 billion asset, 290,000 customers. This is an excellent platform, and despite, I'm just underlining all the words, but is more the most important information that is on this slide is that Widiba classify second in the Bain Digitalization Index in Europe. As one of the best front end currently available, not only in Italy, in Europe. Then our journey that started at least 20-25 years ago, ESG, it started really here.
Monte dei Paschi is an important forerunner, let's put it in this way, at least in the banking sector, with attention to the women's presence and advancement, and also in investing, we have more than EUR 5 billion asset management invested in ESG products. The strategy. You will hear me several times repeating clear and simple. It's not by accident. This simple commercial bank should be focused and built on three strategic pillars. A business model that should be sustainable, a strong balance sheet, and then we have to start tackling the legacy issue with a sort of, we used to say, fact-based driven approach. Why we are confident that we can really go ahead and based on this strategic pillar? Because we have three important enablers.
Our franchise, our people that are talented and committed, and our ESG-driven culture. Which are the initiative behind this strategic pillar? In order to have a business model sustainable, we want to be efficient and simple. You cannot change the pace, or you can't drive results if you don't start from your organization. The organization should be fluid, agile, supporting the business. We want to change the business mix. Today, we depend too much from non-commercial revenue, so we want to change the mix. Then we believe that digital, despite whoever is now speaking about digital, and we believe that it's not only technology, it's also a mindset. Digital can help, not only in reducing the cost to serve to customer, but to improving our capability, commercial capability.
If we are sustainable, we have not to take care about our balance sheet, but the balance sheet is a given, how to say, element of our activity. We want to be with a very low risk profile, we want to have a stable, strong funding, and we want to have a buffer in terms of capital. How we want to tackle this legacy issue, as I said, there is no particular recipe on that, but it's enough to have a clear data-driven approach. How we are going to achieve our business model sustainable? We are going to simplify the group structure. We are going to build up a sort of stringent accountability and a strong process of governance for non-HR cost. We are going to optimize, redeploy our workforce, and we are going to streamline our branch.
This action will bring to us EUR 270 million recurring savings, starting from 2023, from the 1st of January 2023, just with the action we are going to put in place with the voluntary program of the solidarity fund, for which we are going to spend EUR 800 million one-off cost. We are going to have EUR 30 million of savings in 2024 of what we call non-HR cost, and EUR 40 million by 2026. What we do in order to change the biggest business model, the business mix on the commercial revenues. First, new business line. We are going to have an advanced household financing offer. Second, we are going to develop what today is for us a sort of best-in-class capability. Enhance wealth management and protection, also exploiting Widiba.
We are going to uplift the small business proposition, and we want to have back some customer that left. There are not too many, but we want also to go to them. Digitalization to improve commercial capability. Here we are just saying that we want to refocus our investment in order to finance our technology development. We want to maximize our end-to-end process, increase the efficiency. We want to make the customer happier to work with us through also digital, and we need to improve our engine, our CRM, because it's the base today of any successful company. Why we don't put figures here? Because we don't need to make particular investment. It is enough to rebalance the organic investment pool into the projects that are focused on the business plan initiative. The balance sheet.
As I said, we want to have a strong balance sheet so we can be focused completely on revenues. If we want to make consumer loan and we want to uplift small business, we should align the underwriting process. Today, we have only one unit that is covering the underwriting all the companies. Small, big, medium. We want to have medium, small, large, and specialized for consumer loan. We want to manage proactively NPE stock, and we want also to start selling part of them. We are going to finalize also a platform that is almost completed, helping us in enhancing our early warning and monitor system just to reduce the new flow, so to reduce the default rate. We want to be fast when there is a problem on a customer.
Normally, in the banking experience, the first to call the customer is the one that gets back the money. If you are clever and faster, you will protect also your asset. About funding, we want to keep a strong funding base, and it should be sustainable. We are going to change the mix, so we are going to increase retail deposit and reduce institutional funding, and we are going to remove our dependency from TLTRO. Practically, the indicator of this action is the fact that in the plan, the ECB funding is down by 13% compared to the 22% that is today. Capital. With the EUR 2.5 billion, we are going to have, in 2024, a capital buffer above 300 basis points.
It will be above 400 in 2026. Take the legacy issue. The message here is quite simple. We have what we call ordinary, that practically are EUR 3.8, because the EUR 4.5 include also the reps and warranty on some NPE that we sold. By the way, the last available data for disclaimer on this Valentino project already expired in July 2021. We have the traditional claims that a bank has. We are just separating the two amounts because one is connected, the EUR 1.3 are connected to NPE borrowers, so customers that are not performing, and the EUR 2.5 are ordinary claims.
I think we should weight differently the two, and weight really low, very low ponderation, put in this way, the reps and warranty, because practically we almost completed the analysis of these claims. We have the extraordinary that everybody is saying that is the strong legacy of Banca Monte dei Paschi di Siena. The extraordinary, EUR 1.9 billion. These are related to financial information, 2008- 2015. On that, we are going to have another slide, Andrea, if you turn, where we're going to explain a bit, give some granularity about this EUR 1.9 billion. We have practically EUR 1 billion that are claims, and we have EUR 800 million that are extrajudicial claims. Why we put this in a different way, no?
Because up to now, with relation to the litigation that are connected with the restatement carried out by the bank on 6th February 2013, we won in all court cases. In one of those cases, the claim was rejected. This is an important claim because it's EUR 450 million, so you can easily make how much out of EUR 1.1 billion is EUR 450 million. The claim was rejected by the Court of Milan. Clear. There is an appeal. We go ahead. By the way, first time, first round, we won, and we have provision for that. Despite we won, we have still provision for that. The bank is really keeping a very conservative approach because also in this claim, extrajudicial, despite some requests are really vague, but are inconsistent according to me.
Despite that, we set aside provision. What is the message I would like to give with this slide? That we believe, we are confident that we have the proper level of coverage of this kind of risk. Second, we are not waiting, so we are keeping update on what is going on in all the courts, in all the sentences. We have a pool of very professional lawyers, and also recently we ask some independent technical expert, very well know the market, and they supported us. All these things give us really the comfort that we have to follow this issue carefully, but we believe we have the proper coverage.
Moreover, this is what is explaining the concept of based on fact. We are really determined to really have an approach that will be data-driven and will be based on facts and the positive experience we manage. Is a work in progress. We will pay a lot of attention on that. What today I feel comfortable to say that based on what I saw and what I heard from lawyers, experts, our people, papers, the level of provisions that are currently cover this risk, we believe, is adequate. Now coming back, because I want to wrap up this issue of legacy, I want to speak only once, finito, and as you used to say, because we have to be focused on business and Montepaschi is a so is a.
I don't want to make a sort of contagious approach on that. This is one of the best commercial bank that we have in Italy. I'm not just saying because I'm proud, but I think I saw several banks in several countries. Monte dei Paschi has a strong potential. What we are going to bring as incremental contribution to the gross operating profit, we are going to bring EUR 400 million, as I said, this is a recap. In 2024, EUR 600 million. In 2026, clearly we are going to give up all the revenues that are connected with trading and with the other. We are going to contribute to the operating profit of the bank through reduction of the operating expenses, EUR 250 million to EUR 120 million.
The contribution, the real value we are going to build up of this bank with these few clear actions will be EUR 370 million in 2024, EUR 530 million in 2026. All the team has agreed with me that we are going to be focused, and this is the message I would like to give to our shareholders, to the investors, to the analysts. We are going to be focused on this figure, 370, 530. Because what we want to build up is a bank that has the capability to change and to adapt. If revenues will not come, or we find another way to make revenues, or we should reduce cost, or we have to improve risk. But the best for us is the operational profit.
This is the line that we feel committed. Now, as I said, if you don't change the organization, it's difficult that you can then tell your people, "Okay, tomorrow we make EUR 400 million." No. The organization should be adapted to the goals we want to achieve. That's why we are going to build up three new division, let's put it this way. One will be focused on retail, and this we are going to leverage of the experience of our Pasquale Marchese, that he has a long, successful experience in Poste, and so will be the person in charge to this segment, that will have a strong contribution to our P&L.
We are going to have the head of large corporate, but large corporate is because we are going to incorporate here also the investment bank that is MPS Capital Services. We're going to have the head of SME corporate. That is our historical point of reference for all the customers, especially in Tuscany, but also outside Tuscany, that is Maurizio Bai. Andrea will have below him the new structure that is head of cost management and is quite obvious because we want to get consumer loan, so we have a new division retail. We want to make asset management, and we have the new head of premium. We want to make small business uplift, and we have the head of small business, Maurizio. We have.
We want to build up a strong governance of cost. We are going to set up a special division because currently the costs are together with procurement and are under the same head of organization. If we want to be focused, we should be clearly structured. Andrea will have the responsibility of this position. Organization and strict control of what we are doing. We are going to have a well-identified owner, clear accountability. Then we are going to. You will see in the action we put in place to incorporate the consortium that is our IT provider. We are going practically to centralize. We are going to have a very sophisticated and quite tight way of monitoring the results, especially the commercial.
We need to have an HR platform that is working because, as you will see, for us, it's important that the action we are going to put in place with the voluntary funds, that implies reduction, significant reduction of people within the end of the year or the year, will be properly managed by a dedicated structure in order to overcome and not to have any operational risk. Let's say a few words on capital increase. EUR 2.5 billion. Of course, the pricing will be defined at the time where we are going to launch close. We have the underwriting for the full amount of top-class investment banking. We have BofA, Citi, UniCredit, and Credit Suisse. We already have the underwriting agreement.
It's clear that it is an underwriting agreement that is in compliance with the one that has been issued for similar transactions. Clearly, there are some conditions, and we put in the press release. I think it's important to have such a respectable group of banks that trust this bank, trust the management, are confident with the business plan. Together with the endorsement that we got from MEF, we feel really well supported, and it is important for us to start also with the support. The timing will be practically the first action will be today or tomorrow, it depends on Riccardo, that we are going to file ECB. We are confident that the MEF will get soon the approval for the extension of the restructuring period.
The shareholders' general meeting is expected to be in mid-September. Probably we are going to convene in August when we are going to make the approval of the six-month results. The launch of the plan of the increase of capital will be in the last quarter of this year. Now, the first decision was taken yesterday. We decided to incorporate. As you see, we have one, two, three, four companies. We will have only one, that is the bank. We are going to incorporate MPS Capital Services. We are going to incorporate the leasing and factoring, and we are going to incorporate the consortium, that is the operational machine with IT. I think the rationale is quite obvious.
Each of these companies has a board of directors, has his own auditors. Has his own central function, especially compliance, audit, HR, CFO. The incorporation is not a matter to save the cost. It's clear that we are going to save, but we've become more efficient. Today, the factoring, I make the example of the factoring, is not leveraging on the capability of the network. We can really grow significantly by making more effective the integration between network and product factory. At the COGS is obvious because we are going to have, first, a significant saving because by incorporating, we believe, and we already mapped, we have some positions that are duplication. Then when you make a new product, you have to write to the consortium and say, "I want to make this product.
Okay, please give me the demand in this frame. We have to fill in the frame, we have to send to the CoG, we have to wait that their board of directors will decide. It's a very unnecessary complication. We will put together, we already took the decision, consortium will be merged by the end of the year. All the other companies will have an effect from the 1st of January next year. Clearly, we are going to have some, how to say, administrative things that are to be settled, will be settled by April. Okay. This is, as you remember, here we expect to have EUR 40 million of savings. What we are going to do? We are going to centralize the cost management. What does it mean? Today, we have 80 centre that has a budget to engage the bank.
We are going to have one. At least this guy can make some comparison, no? Receiving from eight different sources. Why? If you are alone, you have no comparison, huh? This is the first. Second, we are going to introduce the concept of zero-based approach. We believe that this bank has a huge potential, commercial potential, but has also huge potential in optimize the process in managing the cost. What does it mean, zero-based approach? That we start not to accept if minus 5% is enough. I wonder why 95% should be the right figure, huh? Let's start again. If somebody wants to have something, they should make an order, so we collect everything, we ask why, and we try to make everybody responsible, even from EUR 1,000.
We are going to optimize the process to have a better assessment of the definition of expense, to have an owner, and everybody that want to spend money should justify why. We can spend money despite what is regulatory obligation that we have, or to increase the revenues, or to decrease the cost. Our three directions, all the others, if we want to be more fancy now or to follow what the other banks are doing, we are not interested. We are focused on our customers. We are going to make a review of the process, and this will be supported also by this action we put in place by the incorporation. Okay. HR, this is the most important, is the one that is closest to us in order to be implemented.
We plan to have throughout the plan a decrease of around 4,000 people. We are going to have 3.8 within 2024. We plan to get already savings for EUR 270 million. These savings are calculated on the basis of more or less 3.3, 3.4. Exit with voluntary decision, and we are going to implement the solidarity fund. Wait one second there. Why is important this action? Because we want to make this action within the end of this year. Because we can take advantage of this special fund that has 7 years of length. It is unique and will expire at the end of November.
As I mentioned, we are ready to face the exit, and hopefully we will be successful, and I think it's in the interest of the bank to get to these results. As you can see, after the solidarity fund implementation, the ratio of people in network will increase by 4 points. It's automatically understandable that the person eligible to this fund are more connected with function of head office function. We are going to implement through the support of digitalization, we are going to reach this target of 17 a nd 13, we position the banking at the top level of benchmark. Streamlining of branch network. We are planning to close 150 branch, 100 up to 2024. I would like you to pay attention to what we put on the bottom.
We are not closing the branch to save cost because if you save cost, it means that you don't have revenues. We are going to close the branch that are not profitable. If it's said to be 100, it will be 200, we close 200. There is not a number that we have to achieve because we estimated that almost this number of branch today are not always in a position that, in terms of performance, I mean, that can be in the positive area. We are going to implement action. We see if the results will come, the branch will not be closed. If results will not come, the branch will be closed. It's clear that this doesn't mean that we are not going to optimize the space.
We are not going to migrate customers onto online banking, right? The principle, really, this is important for us. We are going to base the action on economics. Moreover, as normally when you close a branch, you lose the customer. If we decide to close, we will put in place a tailored program for customer retention as the other branches wind down. Now, as I was mentioning, we want to grow income thanks to some action. I think it's proper to show to you why we are confident and which are the metrics we have in mind in order to improve our revenue. Household financing. We are going to have, as I mentioned, to exploit our new platform. We are going to have new products. We are going to improve our analytical capabilities with the true CRM.
We will keep mortgage, consider mortgage as hook product, so we have to have on our shelves. This action will bring us additionally EUR 130 million in 2024 and EUR 260 million in 2026. We plan to reach a stock in 2026 of EUR 3 billion. It's quite easy. If we get EUR 3 billion, it's easy to calculate, adjusted by the risk, what is the net revenues. Then we have the wealth management. We are very well positioned there, so we have to make an effort, an additional effort. If you want to get more results, we have to add more people. We are going to increase the number of affluent advisor. We are going to have a sort of continuous enrichment of the product.
We have a new platform that is analyzing customer, better understanding the need. It is a very well equipped platform that we already implemented, but we are going also to finalize with some additional step in two months from now. With Widiba, we say something in the next slide. How much we are going to get here. Practically, we are going to reach EUR 36 billion of asset management in 2024 or more than EUR 40 billion in 2026. In bancassurance, we are going to have a commission for EUR 280 million in 2024 and EUR 300 million, more than EUR 300 million in 2026. The stock will be EUR 32 billion in 2024 and EUR 36 billion in 2026.
Now, small business proposition here, we are already a key player, but we want to enter in this specialization. We want to redesign also our approach based on new cluster definition. We want to be specialized with our apps on different business verticals and focusing on what we call self-liquidating. Not midterm loan, but self-liquidating, because can bring additional fees by the rolling and the revolving of the facility. We are going to increase EUR 3 billion, the loans. This will bring more than EUR 100 million additional revenues, 2024 and EUR 200 million in 2026. Win back retained clients. Okay, we put this in this as action, not because we count to have a lot of results. No, because at the end, as you can see, we have EUR 600 million.
This is also a motivation factor. We want to get back to our customer, in particular to the one in the last two years, they brought with them EUR 3 billion of asset, and we want to ask them to come back to us or to Widiba. We plan at least to have EUR 600 million of asset back from this action. Now, the EUR 135 million I mentioned of consumer loan, why we are confident that we can achieve it? Because today we have a penetration of consumer finance that is 5.6%. The benchmark is 10%. If you look at our commercial effectiveness, we are half of the competitors. By using our platform, reviewing the process, increasing the number of specialists, making some marketing, we believe that we can close the gap.
By closing the gap, these are the figures of new production that we can achieve. Today we are at 0.7%, and we can grow 1.3%. 0.7% are what we are doing today with our partner, that is Compass, but we will keep working also with Compass. We put what we are producing today with the new production. The 1.3% is only ours, no? Just to show that our capability is already close to this 1.3%. Because if we make this action, we increase our penetration, and we improve our commercial capability and efficiency, we will reach this level. On asset management, we have, on the total of our customer, we have only 13% of customers that are eligible, classified as affluent. The market has 17%.
if you see the average of asset, of financial asset by customers is lower. Normally, if you have 13 and the other have 17, there are two reason. You don't know, you don't have exact, the correct information about your customer, this is one option. You didn't exploit totally the potential of the customer that you consider lower level. That's why we put these two indication. The asset management, as I mentioned, are expected to grow by EUR 8 billion. Bancassurance. You will see later in one slide where we are showing the commission. We are one of the best player in bancassurance. Clearly, as you see, we are already above the peers in terms of, life, bancassurance for, branches and in terms non-life, no?
This I think is just a little bit of figures that we put in place that we put on the slide just to see that we were thinking while we were deciding this target. We have already strong position because EUR 30 billion is a very good starting point. We are going to reach EUR 36 billion. Also in premium for insurance business, we are going to move from EUR 266 to EUR 368. This growth is in line with the market. Clearly for us is additional efforts because we are very well penetrated. Widiba. Now, despite Widiba is in the group, we have not to influence Widiba. Widiba should be independent. Because if I start discussing with the general manager of Widiba what he has to do, probably I will have a problem in understanding him.
That's why they should be autonomous, of course, in the frame of what we decided, but that was the reason why we didn't incorporate these figures in our business plan. We took a very conservative approach. We incorporated the stand-alone Widiba plan. This is the plan that the current management is committed to achieve. If he's successful, we will be successful because this is additional asset revenues that are coming to us. They have very clear strategy. They want to increase the number of advisor. They want to enlarge the product offer. They are going also to spend money in advertising to refresh the brand. This is a leading European platform. Really, we are very proud that Widiba is part of our group.
Now, how we are going to finance also Widiba, this digital investment that we want to put in place to simplify the process, to improve our risk capability, our commercial capability. The bank was used to invest more or less EUR 150 million each year. Didn't invest this money, I believe, in 2021, but was EUR 150 million. That's why in the old plan there was 150 multiplied by five, so it's 750, 800. We believe that part of this investment should be reviewed, and we have to be focused on investments that are bringing value added. They are a sort of enabler for the business plan. Just by making this selection, we believe that EUR 100 million, EUR 110 million of investment per year are enough, because 100...
We are going to have the total CapEx 2022-2026 in EUR 500 million. EUR 350 million are not connected with what we call investment for running the bank. The bank has practically, as you can see, we have EUR 30 million just to run the bank, to open the bank. In this slide, we are going to set aside what are investments that are not connected specifically with IT. Some adaptation to fire regulation for building, maintenance or safety compliance, some branch restructuring, some ATMs. We have EUR 350 million of IT. Of this, EUR 270 million. Out of this EUR 270 million, almost 90% will be investment in digital. 32 are for Widiba.
All the rest are commercial platform, some cybersecurity, also to manage NP with a more efficient way. Some testing IT testing platform, some also digitization of documents. Clearly we put here the most significant one. The bank this plan, despite saving cost, has an important investment also in terms of digital. ESG objective, as I said. We were sort of pioneer on that. We have important task. As you see, in terms of reduction in 2026, some adoption of digital signature practically will be more than 90%, sustainable finance more than 50%. Internal rules of inclusion will be further reinforced.
Practically all this action will make us, despite, I think we are very well positioned, quite committed in this, as well, in this ESG integration in the bank. Also on the side of supporting the customer, we have already integration on ESG factors in credit strategy. We have also some support, development of the country and company in this sustainable transition. We signed some agreement with SACE, and, we are also to further development our commercial offering to ESG in investment product. I think this is, an important part of our plan also because we believe that investing in ESG is helping us in reaching sustainable results and also committing to our staff in what really is one of the most important, matter that we have. Some financial targets. Okay, here.
As you see, we are showing here some old figures, but these were the macroeconomic scenario we use in implementing the plan. This is Prometeia March, if I remember well. In March, we have the interest rate at 66 basis points in 2024, 100 in 2025, 118 in 2026. What we did with our plan, in a conservative approach, we practically took only the 66 basis points, 66.17, if I remember well. In practice, we kept flat in the projection 2025, 2026. Clearly, we were conservative, but now what is the new evolution on rate is also showing that we were really not only conservative because we didn't take the 2025 and 2026, but also because the starting point 2024 is much lower what we have today in Bloomberg and also ECB.
It's important for us to say that we have some buffer, and we try to use it, the best way. I'm recapping the financial target. Commercial revenues, we are going to grow by EUR 400 million in 2024, EUR 600 million in 2026. We give up to EUR 300 million TLTRO. We are going to have operational costs lower by EUR 248 million, EUR 221 million. The NP ratio 1.9%, net 1.4%. 0.13 liabilities connected with ECB funding and higher than 14% and 15%, the Tier 1. Pretax profit will be EUR 700 million and EUR 900 million in 2024, 2026. We are going to have a dividend payout ratio of 30% on the profit 2025 and 2026.
Now a P&L, just to help you reading all these figures we were providing. As you can see, we are going always to show the pre-tax profit, but then in this slide, we are showing also the net profit, thanks to the effect of DTA, and we have a slide for that. All the other indicators are quite important and all of them are improving. I think what is important is the consistency of the results, what is on the right side of the slide. Sustainable profit, sustainable revenues. Revenues, efficiency, risk profile, strong capital, liquidity and profitability. We are coming back to the first slide because the goal also the presentation is that we want to show our consistency.
Our consistency will be shown only also during the presentation results because we will be keeping updated the market about our achievement, and we will stick to this strategic direction. Net interest income, you already saw in the previous slide, we are growing 3.8, 21, 26. Loans, we are growing, if I remember well, in a very low percentage, very low, EUR 3 billion additional. But we are changing the mix. Consistently what we mentioned, we want to be focused on retail. The mix of retail, the share of retail will increase from 44% to 51%. Contribution to this growth will be the consumer finance that will move from 3.1 that is expected to be in 2024 to 4.8.
For me, the most interesting chart, even if it is a bit overcrowded, I try to simplify. On the left, you have the fees. Now we have EUR 1.484 billion of fees. Today, these fees are half coming from traditional banking and half from bank assurance and asset management. What we are going to do, we are going to grow marginally on traditional banking because there is no way the fees on current account, the fees for transaction will decrease. This is obvious. We have to replace it with additional fees. That's why we are investing, and we plan to be focused in asset management and bank assurance and life and protection.
Already in 2024, practically this bulk of fees is going to cross the traditional one, and in 2026 will be practically EUR 200 million more. What are the message from this slide? We are really a bank that is focused on capital light business, and you will see in the capital work. We are a bank that strongly believe that today the future of the banking sector is driven by the capability to keep your customer and to offer to him a proper advisory service. The total volumes will grow by EUR 10 billion. As you will see, we are going to finance part of this growth through conversion of asset under custody. I mean, the growth on bank assurance and asset management, right? The growth will be 7%, and the other will be 8%.
The growth in our product will be 15%, and we are going to finance partly with this EUR 2 billion that we are going to take from custody. Cost reduction, I think already I mentioned on that. We are going to reduce the cost. The cost of HR will decrease by EUR 170 million, but here we are incorporating the increase of wages due to the national labor contract. It's almost EUR 20 million per year. We are going to reduce the branch, and we are going to reduce the other cost. NP. First, we want to give a composition. Now, practically 75% of our today NP stock is secured. We are going to decrease by EUR 1.3 billion. To support the decrease, we have already in progress a sale around EUR 800 million.
Hopefully, it will be completed in the second half of the year. The gross NP ratio will go down from 4.9%-3.3%. The net NP ratio will go down by 2.6% to 1.4%. The coverage will improve significantly. We are going to move from 48%-59%. Already in March this year, if I remember well, we have a coverage of 53%. I mean, it's feasible. The default rate will decrease, reducing the inflow. The cost of risk will be kept across the plan below 50. Funding. We want to have a stable funding base. We are going to increase the deposit. As you can see, the share will deposit retail, I mean.
We are going to issue new bonds in order to be compliant with MREL. You will see we'll have a solid position, and we will be above all LCR and NSFR indicator. Here we have Italian govies. Now, this is the position that we have in March. You will see on the right the sensitivity and the duration. We like to manage this volatility, so while the bonds are going to expire, if we buy, we will put in amortized cost because I think that is important in the bad and the good time not to count on revenues that are coming from something that we cannot drive. This is our approach. Okay, this is the interesting part here. The net profit. Practically, we have two opportunities in terms of DTA.
We could have an approach to account EUR 600 million in 2022, or to have a more conservative approach to account half in 2022 and to make a second reassessment in 2024. We decided for the more conservative approach. In 2024, thanks to the DTA, the net impact of tax will be EUR 300 million. That will bring the total profit, net profit of the bank above EUR 1 billion. Clearly, we are going to go ahead. I think this tax rate in 2026 is 8.1%. The bulk that we have will make us confident that the tax rate will not be very different from the level that we're going to have 2026 for, I think a long time.
The capital evolution, the work of the CET1 ratio work. We start from 10.8%. We will increase the capital. We'll bring five hundred basis points. We are going to consume part of this capital because we had the restructuring expense. We are going to increase part of the risk-weighted asset, but we have the profit up to 2024. Thanks to all this, we will end 2024 with 15.7% in a normal situation. Why we put in this way the slide? Because practically, after the increase of capital, we will be 15.9%. This, we are going to finance the restructuring cost, and we finish to 15.7%. We have a fast capability to generate additional capital because our pretax profit is going immediately there to contribute to the capital.
That's why we are using pre-tax profit, because it's the right indicator to measure the capital generation. We are going to have the headwinds due to the adoption or to the new model adoption. We reach 14.2%. Then some risk-weighted asset connected with organic growth. Then the earnings generation, 2.7%. Then some additional changes in the capital. We reach 16.2%. We distribute dividend, and we finish with 15.4%. A quite safe position of capital, looking also at the starting point. I'm going to close. I think I'm on time. We have a clear simple commercial bank. This is the goal, and I'm confident that we'll achieve that. Efficient and simple organization. We are going to change the mix. We are going to have a low-risk profile to improve the funding.
We are going to have a strong capital, and we are going to have a sustainable profitability with attractive dividend 2025, 2026. Just let me conclude by saying that Monte dei Paschi di Siena is a part of the economy, as well as the social and cultural heritage of the city, and I believe also of the entire country. We believe it can regain a key role in Italian and the European banking system. The room, San Donato in Rocca, that hosts today is an emblem of the bank's core values and symbolize the solidity and the strength of Monte dei Paschi di Siena, and what we aim to reach again. This room originally, if I remember well, and I informed myself, it was a church. It was built in eleventh century on pre-existing Roman ruins.
La Rocca here encloses our entire history, with the oldest document tracing back to 1472. In here, there is the deeds of foundation of the bank. I think the evolution and the development, we aim at start exactly from this heritage. Thank you. We are ready for the Q&A session.
I think we can move to questions, I mean, unless there are questions from people here, questions from people connected on the phone.
Excuse me. This is the operator. The first question from the English conference call is from Manuela Meroni with Intesa Sanpaolo. Please go ahead.
Good morning. Thank you for the presentation. I have three questions. The first one is on the stage of talks that you have with the European regulators. I'm wondering if this plan has been already submitted to the European regulators and what is the view of them, and when do you expect to have the official approval of the plan? The second question is on the NII, slide 41. Could you please share with us the main moving parts of the NII, including volumes, rates, cost of funding, contribution of the govies portfolio, TLTRO, and so on? The third question is on the regulatory headwinds, just to be sure I understood correctly.
In your business plan, you have embedded 180 basis points of negative impact from the regulatory headwinds, and this include a Basel IV phase-in. I'm wondering if this is correct and what would be the Basel IV full impact. Thank you.
Well Andrea you will start, then Leonardo.
Okay. First of all, good morning to everybody. I'm happy to be there joining this call. The question on the net interest income, actually, I would like to give you a summary view. I think it's important, first of all, to look at the net interest income, excluding the impact of the TLTRO. As you know, the TLTRO program is expiring. We have EUR 29.5 billion outstanding, expiring in the next three years, this year and the following two years. Excluding this impact, the net interest income is expected to grow by around EUR 350 million in 2021-2024.
Let's say by roughly breaking it down into volume slash mix impact and rate impact, we estimate the volume slash mix impact being around EUR 190 million, as a sum of the contribution of the basically newly established consumer finance business for EUR 135 million and the optimization of the retail funding, i.e., the basically runoff of term deposits contributing around EUR 55 million. We estimate that the rest roughly is rate impact amounting to EUR 160 million. To square with the net interest income trend, overall trend in the period, you have the TLTRO negative impact for EUR 180 million.
I was talking about 2020 to 2021-2024 period. If you extend this analysis to 2021-2026 period, you have to note, as mentioned by Luigi in the presentation, that to be conservative, we have assumed flat rates from 2024 to 2026. The net interest income is expected to grow only by an additional EUR 70 million in 2025-2026. The overall delta is EUR 420 million with an overall contribution of consumer finance in the period of EUR 260 million.
To conclude on this question, we are confident we have quite a relevant buffer in terms of additional NII growth in case the macroeconomic scenario and interest rate scenario presented by Luigi materializes actually also in 2025, 2026. This for the second question. On the third question, I would leave it to Leonardo.
Regarding regulatory headwind, most of them will be met by the bank by January 1, 2023. In fact, I mean, the two most important source of regulatory headwinds are the RWA inflation related to the evolution of IRB models to the guidelines on PD and LGD that will have the impact of around 200 basis points. We will have the last tranche of the first time adoption of IFRS 9 phase in that will account for around 65 basis points on CET1 ratio. Starting from that, we will have only some, I would say, almost residual impact related to the calendar provisioning, something around 30-40 basis points on the plan horizon. We do not expect significant impact from Basel IV, at least within the really manageable on the plan horizon.
Given that after the evolution of the IRB models, we will have more conservative credit parameters than the floor. Also, as the CEO said, we will plan to rely less on trading income, so impact from the fundamental review of a trading book will be really manageable. Also on the operating risk side, we already have some significant buffer in our AMA model with respect to the current standard, so we do not expect significant impact from this too.
Okay. I take now the first question. As we wrote in our press release, we have been informed that negotiations are quite in an advanced stage, and I'm referring to the negotiations between the Italian Republic and the European Commission. They are the parties. It is not Monte Paschi. We are practically at the conclusion of this discussion, as we wrote, is expected to come soon. We are quite confident also because we believe that in this case also, authorities, the government, everybody is really, I believe, committed in order to fix all the issues that are connected with Monte Paschi. We are confident that this kind of conclusion there will be soon at the conclusion of this discussion.
Thank you. The next question is from Antonio Reale with Morgan Stanley. Please go ahead.
Good morning everyone It's Antonio from Morgan Stanley. Thanks for the presentation and welcome to Andrea also from my side. I have 3 questions if I may please. One on your funding plan. I think in your press release, you said you plan to issue a total of EUR 12 billion securities by 2026. I think this will cover some bond securities and you talked about lowering your reliance to TLTRO. Can you give us a bit more color on the optimization you plan to achieve across the capital structure? Are you planning to issue an AT1 in the plan horizon? I'm asking you on funding because historically, funding has been, you know, one of the relative weaknesses you call a bank.
You've had to pay historically a premium over the years to fund some of your business. I wonder what assumptions you're making throughout your plan targets and what you think it would take for the bank to change that funding mix. Is capital enough, and is capital the reason? That's my first question. Second question is on your outlook for cost of risk, which you target at below 50 basis points, throughout the plan. My question is, what makes you confident in this environment that default rates will stay at 1% or below? I guess especially in light of some of the macro uncertainty, but also the changes you foresee in your loan book, in your loan mix, I should say, which would skew towards consumer finance and SME.
Lastly, can you talk about some of the flexibility you retain to crystallize capital gains if needed, with some of your loan funding partnerships, mainly AXA and Anima, and what is included in your plan? Thank you.
Okay. Maybe I take the first question. On our funding strategy, and in this respect, I refer to the slide 46 of the presentation. We have a number of actions in place to remix our funding. As mentioned, first of all, as mentioned before, and this is mainly initial cost, we are basically reducing our retail term deposits and increasing our sight deposits. Coming to wholesale funding, we plan to have EUR 12 billion issuances in the period, mainly replacing existing issuances as a mix of senior preferred, senior non-preferred, subordinated bonds, and also covered bonds.
In particular, we are assuming a couple of non-preferred bond issuances over the plan period. In the plan, we are assuming to replace three subordinated bond issuances that might be called then depending on the prevailing conditions at the date, and to replace them with new issuances to be done overall in the next three years. This on the first question.
Okay. Regarding cost of risk, yes, we are confident we will be able to achieve the cost of risk below 50 basis points along with the plan. There are different reasons for that. First of all, we will leverage on the proactive approach we had with clients in the last two years that allowed us to really assess the credit position, our evolution of the monitoring of the deterioration of clients. If you look at the last few years estimates, we actually had a cost of risk that was actually pretty every year lower than our expectation. Also in the first month of this year, cost of risk and especially the inflows is below our conservative assumption. I think, yes, that is a target that is definitely in reach for the bank.
Okay. On the cooperation with Anima and AXA, we have very good relations. As you see, we are counting a lot on even more improvement in the partnership with both of them. We are discussing a lot about the business that we are running together, but we like to keep separated what is the industrial view of the partnership and what is the capital increase. We are open, but we believe that now we have to be focused on the side of improving our revenues, and they are ready to help and to support us with training, marketing. This is the part on which we are focused a lot.
Clearly we are open and also ready to discuss if, on the side of capital there should be an interest. The two things we would like to keep separated.
Michael thank you very much.
The next question is from Giovanni Razzoli with Deutsche Bank. Please go ahead, sir.
Good afternoon to everybody. A couple of questions. The first one is on the legal risks, because it seems to me that this issue is a little bit overdone, at least from a fundamental point of view, also in light of what you have detailed in the presentation. Can you remind us how much you have reduced over time in the last few years, the legal risks? And what is, you know, if you can share with us what could be a reasonable estimate of, you know, looking at the past experience, what could be the evolution of those in the future? I understand this is a very random element, but, you know, can help us pin down the actual risk profile of the bank. Second question is slide number 38.
Seems to me that you have been extremely prudent in terms of evolution of the rates because you are assuming only in your FY about two months of 10 basis points in 2023. Is my understanding correct? If so, what is the upside in case that we have the 100 basis points of higher Euribor as the ECB expectation? If I'm not mistaken, you do have a sensitivity of more than EUR 100 million of NII to 100 basis points of increasing rates. We may reasonably assume that you're already these in the pocket, so I'm wondering whether my understanding is correct.
The last question, this is a tricky one, maybe a little bit strange, but also because there is the DG comp approval still in progress. I was wondering what is, if it's possible to think about an incentive scheme, so to align your interest with the, with those of the investors, as you are clearly putting your reputation in place here, you have a strong track record. I was wondering what you're thinking on that. Thank you.
Giovanni, sorry, just one clarification because I did not get fully the first question. You were asking about, if I got the correct expectation in terms of risk and charges for the future, but I missed your question on the past. What was the question?
No, my point, Andrea, is this one on the legal risk, basically. You have a good track record in terms of reducing the legal risk you've shown in the slide. If you can remind us what is the track record of such a reduction, also taking into consideration some one-off transaction that you had, and what could be a reasonable expectation for the legal risks evolution going forward.
Okay. Maybe I will start replying on the buffer on the NII and then we move to the other two questions. On the NII, yes, we have been conservative because basically we are not l et's say, fully factoring in what we are actually already seeing in the market and in the new business with our clients. Actually, the rate of new business is increasing. This we see already in our daily reporting. As you know, the forward rates are already skyrocketing. For sure, we have a buffer that in 2025, 2026 is around, let's say, EUR 150 million. We might have a upside also in the first three years.
Just to give one example, at the moment, we are not fully factoring the mechanism of the TLTRO, where, as you know, there is a discrepancy between, let's say, the rates to which we reinvest and, let's say, what we pay because there is a calculation based on the average. Yes, overall, we think we have an upside on this P&L line. I think we can move to the incentive scheme. Luigi.
Yes. For the DG COMP, if I remember well, there was some limitation on the variable part, but was connected with certain level of reaching the total compensation. It means that at the level of employees normally or average salary or employees or managers, there was already the possibility to pay variable part, and I don't believe that now they will introduce something differently. As I think we wrote in the press, when there was the breach of model, clearly the issue of the variable part will be settled and solved after the increase of capital fully. Hopefully, we have to see the commitment of DG COMP, but I don't think they are going to make commitment more rigid at what it was before, right?
We count on also, and we put some incentive cost in our planning at the level of HR cost. Regarding this litigation, practically, the bank was quite effectively reducing the stock because we reached, if I remember well, EUR 10 billion, then we went to EUR 6 billion, now we are at EUR 2 billion. It was a different environment, so there was not some verdict in favor of the bank. There was not some position also in the civil litigation in favor of the bank. Now, situation is changing. If you ask how much we plan to, the additional litigation is difficult to predict. What we can say, we are confident about the current level, and we believe that we are well-provisioned enough.
We will be very close in analyzing what is happening, what are the sentences that are going to be issued, predicted, will be issued by the court. We start from a strong position of a quite well-provisioned level of our risk.
Thank you.
The next question is from Corinne Cunningham with Autonomous. Please go ahead.
Good morning everyone and thank you for the call. Could I just follow up on one of the previous questions, which was about did you plan to issue any AT1 because this is obviously one of the key issues for you in building a buffer to your SREP. Also, do you expect market access for senior unsecured? Do you expect that pretty soon after the capital raise, or is this more back-end loaded? Last question on funding is also about deposit funding. Looks like your plans are also reliant on a very strong pickup in deposit funding. How do you expect that to be delivered? Many thanks.
Sorry. On the first question, we are not expecting to issue any AT1 in the plan, so that when you look at the capital ratios, actually the most relevant one for us is Tier 1 ratio, which is the one most binding. While I confess I missed the other question. Can you repeat?
The other question. Yes sure. Thank you. The other ones were in terms of timing, of when do you expect to be able to access the markets? Do you think that would be fairly soon after your capital raise, or are you back-end loading that? Also, on your deposit funding, your plans are assuming a strong pickup in deposit funding. How do you expect to deliver that? Thank you.
Okay. Thank you. Yes as you mentioned, let's say the first relevant action of our strategic plan is the capital raise and then the funding. We expect to successfully complete the capital increase in fourth quarter 2022. After that, we will be in the market again for funding. We have, I think, a well-distributed over time plan of issuances. We will be in the market with non-preferred bonds issuances, ideally immediately after the capital raise, and then we will go on with our plan that as mentioned is well distributed over the time horizon and targeted based on also the relevant maturities of our outstanding issuances.
On deposits?
On deposits, we expect, I mean, to reduce term deposits over time in the first years, let's say, of the plan. Since we have quite a sticky customer base, we expect volumes to move in line with the market.
It's clear that as Andrea was mentioning, on deposit, we are going to have a different approach, reducing what is costing and not giving stickiness. We will be focused exclusively, particularly, put in this way, on retail deposit or small business deposit. Because these are crucial for us also for conversion in asset management bank insurance products. Deposit is a sort of raw materials of the bank, so we need that, but we need the retail more than the corporate.
Thank you. I see that, but the proportion of deposits is also increasing, so you need to put through a net increase. Have you assumed some kind of increase in, let's say, the rate that you pay to bring in those extra deposits?
No actually, there are not, let's say, relevant actions in this respect, exactly because we are letting term deposits basically run off, and the overall amount of deposits, of customer deposits is roughly stable over the period. Slightly increasing, with just the remix that Luigi was saying towards retail deposits. As mentioned also, we have a quite sticky customer base, and we have initiatives in place like the clients win back that was presented by Luigi that can support us.
Thank you. May I just ask one follow-up question? Just in terms of your distance to SREP, do you assume any reduction in the Pillar 2 Requirement or the Pillar 2 Guidance?
Let's say we're not, of course, factoring anything in the plan. Of course, our plan is an ambitious but let's say feasible plan. We expect to implement it, and if implemented, for sure, we will start discussions with the supervisory authorities to review our requirements in the normal course of the discussions with the supervisory authority.
I think this is also reflecting the approach. We are using a self-help banking approach, so we want to count on us, and we have not to depend what regulators say. We keep this level. If something will come, more than welcome, let's put it this way, but we have to work to generate additional capital, because if the bank is not generating capital, we are not even capable to reward shareholders.
Thanks many thanks.
The next question is from Hugo Cruz with KBW. Please go ahead.
Hi thank you for the time. I have a few questions. First, I heard you on the approval from DG COMP that should be expected. I wonder if you could comment on approval from the ECB, if you must have had some discussions with them, what's your view on that, and when should we expect to get that formal approval? Second, you know, in terms of regulatory changes, you flagged the EUR 5.6 billion from IRB, the benefits from operational risk also in 2022. What would be the timing of those two changes, and are they dependent on completing the capital raise? Third, on NII, in the past you gave a guidance for the sensitivity to rate rises of EUR 120 million-EUR 150 million for 100 basis points, if I'm correct.
If you could confirm that or if that changed. Fourth, you know, on the asset quality, I heard you are confident about the cost of risk. But the fact is that you're assuming no deterioration in default rates. You know, it kind of looks like you're not assuming a deterioration from the macro, and obviously the market is very worried about it, that the macro slowdown could lead to higher default rates. You know, why are you confident that this will not happen in the case of your client base? A final question on the legal provisions. If you could disclose the amount of provisions that you have built against both the ordinary claims and the extraordinary claims.
This is an area where I'm actually not worried, but I was wondering if we could actually see some provision write-backs in this area t hat's it. Thank you.
Thank you. Maybe I will start from the last question. We do not disclose the amount of provisions for obvious reasons, also for the management of our litigation, so sorry, cannot answer to this question. The easiest one, the NII sensitivity, I confirm that in the third year is around EUR 150 million. The approval of the ECB, actually the ECB is expected to approve the capital increase and the change in the articles of association. There is not a formal approval of the business plan. Having said that, first of all, we expect, let's say, an approval by our AGM. As you know, they have 90 days to review our application.
We will file it in the next few hours. Maybe Luigi can give some color on the interactions we had with the ECB. Stated that, of course, we have had quite a deep interaction with the supervisory authority, again, in the context of our ongoing discussions. While on the questions on the asset quality, I think that Leonardo.
Just a while, Leonardo, you are preparing the answer. We kept sort of very positive interaction with the authorities. I think this is also giving us the confidence that we are really on the right path to have the process within the timeframe that will enable us to have general meeting of shareholders within September in order then to be compliance with our timetable. As Andrea said, we have just to file the application, and they have 90 days. Hopefully within these 90 days, we will be able to have a general meeting shareholders in order to approve the increase of capital.
Okay. For the RWA inflation, we expect to have the approval to use the new IRB models by the end of the year. The 5.6 billion that we are projecting is expected by the end of the year. Anyway, the impact will be partially mitigated by an improvement that we expect on RWA on operational risk of slightly above half a billion EUR again by the end of the year. The only benefit that we put it into the plan on the RWA on the operational risk side, we conservatively set it flat for the full horizon of the plan.
Regarding cost of risk, again, as I said, in the first month of this year, we are observing more or less half of the full flow that we were projecting in our previous projection. I know that the current environment is pretty volatile, and every couple of weeks there are some more negative projection, but I think we have room for conservatism in our estimation to keep with the figures that we put in. That's it.
Okay thank you.
The next question is from Anna Maria Benassi with Kepler Cheuvreux. Please go ahead.
Buongiorno, Luigi, buongiorno Andrea.
Good morning Luigi, good morning Andrea and good morning to you all.
Back to AXA and Anima partnerships, I hear you, they are important for your revenue enhancement. My question is if in the plan you have assumed any change in the perimeter of activity, in the margin sharing, and in the duration of the partnerships. In exchange, the previous plan was talking about extracting more value from the Anima partnership, in particular, maybe expanding to new segments of clients. Just a clarification on that. The other question regards again the cost of risk. I hear you, probably the problems that recently in the Italian bank was coming out with much higher cost of risk.
We are trying to compare the expectations on the whole trade to understand why one bank is more conservative than the other one. My question is more on the disposal of EUR 800 million of NPLs by year-end, so it's very short term. Do you expect your cost of risk to be significantly affected by that this year? I assume that the 50 basis points are just for the medium term. You are running 60 basis points in the Q1, so how much that could be deteriorated because of that? Another question is on Widiba interest. Sometimes it is very helpful to see the numbers on the line, which we tend to forget how things develop.
More than 500 people, financial advisory is a relevant number you want to add more. I hear about the expansion of revenues. Doubling the revenues by 2026. What about the net profit contribution? What do you expect, given you are also to invest more on that as I hear? Thank you very much.
The cost of risk. I will start from Anima. With Anima, we have a periodical review of our agreement. I think we are in the stage that we have to review. We are discussing the level of service and the renegotiation of the fees. What is happening periodically. In the plan, we didn't include any changes, yeah, of this agreement. The plan is at the current condition. There is no expectation of improving, let's put it this way, the prices coming from Anima. We are in talks to discuss the agreement, but this is just a review of the condition because as you know, the agreement is far from expiring. Disposal. We have already started the process to look for an NBO offer.
Because as I said, we would like to close this activity within the end of this year. We believe that in some way we set aside part of what we believe is necessary. It depends on the market, but we are confident that we'll not have additional significant impact on what we already set aside. Maybe I will just add something regarding the cost of risk, because then Leonardo will add, of course, additionally more precise information. What are the consideration about believing that we can go below 0.5%? First, practically, we are not growing significantly in loans. We are reducing significantly the stock portfolio, NPE. And from NPE normally are coming 30%-40% to our level of provision. By reducing, we reduce the risk.
As Leonardo was saying, despite the environment we are observing, and it's quite, since a few months, a very positive trend in the new NPL. Practically, the default rate is very close to the target we have of the plan. It's clear that it's difficult in this environment, especially when other banks are also showing cost of risk higher. At the current stage, we are confident this is the level we can keep, provided that we put in place also the action in early warning. We have a sort of automated lending on consumer loan, so there is no discretion. The underwriting is fixed by the system.
Even the new consumer loan that intuitively will bring a cost of risk slightly higher. I think it can be mitigated also this risk, because we start in offering this product to our customers. Before saturating our customer, probably we are going to get the level of net interest income we put in the plan. The last was about Widiba. Widiba, clearly in the plan, we show only revenues and we show only asset. There is also a PDA that is quite important. We are not, as I mentioned, or I want Widiba really to be free. We are not looking counting on their net profit, but we are supporting them with the growth.
In the plan, in investment, in technology, IT, digital, we already put EUR 32 million of investment in Widiba. In the cost, there are already some costs connected with refreshment of the brand. Hopefully, there will be also soon some campaign showing that Widiba is on the market and is our, in this way, jewel inside the group.
Grazie. You are shy on the profitability then. You don't wanna tell us.
No you mean, you want to know if we are showing the profitability in the plan, Anna?
Yes, I assume that.
No in our plan, I think it's flat or is about EUR 3 million.
It's slight-
Okay.
It is slightly growing. Actually, they have a standalone plan which is more aggressive. Of course, we are factoring in the IT investments that are needed for the growth. We are basically keeping the upside out of the plan.
Another, Thank you very much.
Hi everybody. I have a couple of questions, maybe three. First of all, I see no targets for the short term, so 2022, 2023. While from slide 49, I guess, I can calculate that the most of the organic capital generation will come in 2024. I was wondering whether you may say something, maybe some color about short-term targets or if we have to expect two painful years that are coming. Secondly, there have been a few, let me say, news in the press about the fact that Anima or AXA may get some shares from the capital increase, so probably by minorities and so on.
Maybe you have any idea about that. I know you don't work in Anima or AXA, but maybe you can give some light. Secondly, thirdly, sorry, a curiosity, and I excuse myself for my ingenuity or maybe my ignorance. This is a plain vanilla rights issue, as far as I understand. This comes on top of the precautionary recap of just a few years ago. I'm wondering whether there may be any legal or regulatory issue related to the rights issue, just because the precautionary recap was technically wrong. Maybe the regulators may think something about it. As far as...
I mean, I'm asking this because as far as I have read, there is not yet any green light by the regulators of DG COMP, EBA, the EU Commission and so on. Thank you.
Okay. So, maybe I start on slide 49. Actually, of course, we have a spike of our capital at the beginning of the plan because of the capital increase. That capital generation that was presented before is expected. The organic capital generation is expected to be almost evenly distributed over the period, growing, of course. There are some regulatory headwinds that were presented by Leonardo before in the first years, such as the IFRS 9 first time adoption. All in all, there are no spikes in terms of capital generation.
Your question gives me the opportunity maybe to add one point on DTAs. Because I think what it is important to mention is that stated that, you know, the DTAs on the tax loss carry forward are, as you know, fully deducted from regulatory capital. You might be tempted, let's say, to deduct this from the, as it is from the capital generation. What is important to know is that we expect to have in the plan time horizon, let's say, other DTAs that will be fully deducted after the capital increase, written up and fully deducted after the capital increase, to be used, let's say, to offset ordinary taxes.
Just to mention that if you have to model our capital generation, as was highlighted by Luigi before, is very close to the profit before tax in the plan time horizon. Also going forward, since our stock of DTA of tax loss carry forward DTAs basically will be written up just for EUR 1 billion and then we will start using them at some point in time. We have a reserve of capital generation which goes beyond the plan time horizon. This on the first question.
On the rights issue, this is expected to be a market transaction, by the way, as also basically demonstrated by the fact that we have a market standard pre-underwriting agreement for comparable transactions. We do not, let's say, envisage any conflict with previous events affecting the bank. I let Luigi complement and
I think yeah Andrea, it was perfect, right. Exactly what Andrea was mentioning. There was some commitment. They expired. Now the discussion between Italian government and the commission is just to define the extension of this period. As we wrote in the press release, this process is expected to finish soon. Let's put it this way. No influences on the capital. Regarding Anima and AXA, I have to repeat the same things, right. Practically, we are just keeping contact. We are in touch, of course, discussing the industrial projects, and we are ready also to discuss potential capital involvement of both. As we said, we would like to keep segregated the two issue.
One, the industrial, and one is the capital.
Okay. Thank you v ery clear. Thank you very much.
The next question is from Paola Sabbione with Barclays. Please go ahead. Apologies, the line of Ms. Sabbione dropped, so there are no more questions registered at this time.
Okay. Thank you very much. I understand we finish. Thank you very much, and see you next time.