Good morning, and welcome to CaixaBank's financial results presentation for the Q4 of 2021. I hope you and your loved ones are well. For today's presentation, we are joined by our CEO, Mr. Gonzalo Gortázar, and the CFO, Javier Pano. Please note that reported figures are affected by M&A impacts and do not include Q1 2021 of Bankia. However, to facilitate comparisons, we have also provided pro forma figures. Moving on, just a reminder that we aim to spend around 30 minutes for the presentation, and 45 to 60 minutes available for Q&A after that. To participate in Q&A, you should have received instructions via email. Let me just end by saying that my team and I are available to take any calls after this presentation. Without further ado, let me hand it over to our CEO, Mr. Gortázar.
Well, good morning. Thank you, Eddie, and thank you everybody for joining us today. I'll get directly into the highlights of the quarter and the year. It's a quarter where we conclude a year of integration, which has been obviously our main duty during 2021. I t's also a quarter where we find some very positive data I have to say in terms of our business. First of all, core revenues. Core revenues the whole year has been, you know, contrast between NII, significant pressure associated to lower rates, and very strong performance on fees and insurance revenues. The quarter has been extremely. You see that 14% pick-up quarter-over-quarter on our fee level.
The Q4 being always a positive quarter from a seasonal point of view, but certainly not to the extent that we have seen this year, so very satisfied with that performance. Our year has also been a year of success in all what has to do with one of our key business and long-term savings, be it insurance, mutual pension funds. Year-on-year, we have an increase in 12.7% on comparable figures, obviously excluding the impact of Bankia. We include the impact, it will be much higher as you know. In the Q4 , we've seen our lending book in consumer and business growing 1.8% quarter-on-quarter.
The trend in mortgages continues downward unabated, but we've seen an inflection in consumer and business lending, which is quite notable, particularly in consumer business lending. I would have expected it also for seasonal reasons. Consumer was quite positive, I have to say. Cost of risk, very low. We have been improving our guidance on cost of risk during the year. Actually we haven't used the 1.4 COVID reserve during the H2 . O ver 25 basis points of cost of risk for this year is quite notable. Our NPL stays at the same level, but total amount of non-performing loans actually come down. The ratio is at 3.6 because obviously we've seen deleveraging this year, so that's stable.
Capital has been also a positive factor throughout the year and also in this Q4 . We end the year with this 12.8% on a fully loaded basis, 13.2% if we include the IFRS 9 transitional adjustment. Almost 500 basis points of MDA buffer. All this is allowing us to return to what we think is a generous capital return policy. We have fixed the payout for 2022 at the range of 50% to 60%. We have proposed the exact dividend of EUR 0.14 and 63% for 2021, which will be decided by the general meeting in April. We have also announced our intention to implement a share buyback program.
We are at the beginning of the process, and we expect to complete the details of this program when we present our 3-year plan during the Q2 . All in all, adjusted net income is close to EUR 2.4 billion, obviously a much higher figure than last year, particularly because of the reduction of provisions. Divestiture is ongoing. Obviously, we have, after the Q4 , completed the majority of the various significant steps that we had to take. I would highlight 3. 1 is the merger's IT integration. You've seen the details already. It went very well. The departure of people are taking place according to schedule.
By the end of this quarter, we would have had 70% of the people that are going to leave will be gone. In fact, already now the figure is 60%, so we're fairly well advanced in the program and can confirm we'll continue to expect to deliver on the cost savings that we have announced. On the integration of branches, we've done almost half of the program before the year-end and during this quarter and next quarter, we're expected to be mostly done. Still work to do, but a lot that we have left behind at this stage.
news of the quarter, including the news that we announced yesterday with respect to the agreement we reached with Mutua Madrileña to extend the joint venture on non-life to distribute through the Bankia branches, where we have agreed to receive an upfront payment of EUR 650 million. We also agreed at the end of the year on the terms with which we'll be acquiring Bankia Vida, the life insurance company where MAPFRE used to own 51%, which is already 100% owned by us, no? A very active quarter and very significant steps at this stage, completed. We keep very large market shares.
You know those details, around 25% and closer to 30% when we look at the business of long-term savings and basically leadership positions in almost every business that has to do with financial services. I wanted to say a few words on BPI because it's now 5 years since we took control of BPI, and we haven't spoken that much about BPI in the last year. We've been focused on integration, but BPI has had yet another extraordinary year. When you look at the 5-year history, I think the figures speak for themselves in terms of the loan and client funds development with this 4.5 to 5.4 compounded annual growth rate. Very significant increase in market share. Approximately 2 points of market share gains in 5 years, which is quite notable.
You see the impact it having in core revenues, core operating income, and most notable, core cost-income ratio. From the 65% area to the 54% of 2021. Continued and progressive decreases. A fantastic job that is being done by our people at BPI, obviously, with very positive indicators also of asset quality and capital. I have to say we are very confident on what we're doing here.
I think it also shows in the long term what an integration in the group can deliver for a large financial services company like BPI and when we look at the integration of Bankia although we're not gonna be able to track the numbers on a separate basis as we're doing with Portugal for obvious reasons because we have consolidated CaixaBank and Bankia I think we have to be confident that the combined force of the group is going to deliver a very sound very promising story. My congratulations are not to BPI. On the economy we feel fairly positive expecting 5.5% GDP growth for 2023. We're actually seeing the consumption being very resilient even during this wave of Omicron. January figures of domestic credit-debit card spending ATM withdrawals at 6%.
Very much in line with what we have seen in the previous months. Actual resilience here, and obviously there's a different interest rate outlook now, which is very familiar to you. In this context, we're looking to the future with confidence. We are stepping up commercial initiatives as we progressively leave integration work behind. You've seen or may have seen a strong campaign on the home ecosystem called MyHome, which we're conducting currently, and it's gonna stay for the whole year. I have the expectation that it will help us obviously in terms of new business, particularly in the mortgage, on the mortgage side, but all sort of lending and other products associated to the home ecosystem. We're gonna continue pushing our long-term savings strategy, which is doing extremely well.
As you know, the MyBox product, you'll see a few figures in the next pages. The focus on business payments and consumer. Obviously, it's a year where we want to start delivering on revenue synergies with Bankia now. You still have the figures there of different penetration of health insurance, 7 to 1, life risk insurance, 2 to 1, and the difference in long-term savings between 24% and 18%. There's more than that, but those are probably the figures that are more easily understood. I said Q4 is positive in consumer and business lending. You have new lending production here. The consumer evolution is quite, I would say remarkable. 25% growth quarter-on-quarter, and obviously also if you look at last year, 11% higher.
This is a different trend than what we have seen. Obviously, it's just a quarter. We need to see how this develops. Given the macro environment, I would be hopeful that this is something that can be sustained in the future. Maybe with some ups and downs, but can be sustained. Business lending is being a very positive quarter here. There is again a bit more of seasonal impact in every single year, but we've done actually very well. Just to remind you that we integrated the business side, CIB and business very early in the process. They've been now working completely as 1 single entity since the summer, and I think we're seeing some of that already in the results in the Q4.
Obviously, going forward, we have NGEU, which hopefully would also provide some tailwinds. Long-term savings, the total start inflows double the level of last year. Market share increasing again. It's quite remarkable to see our market share increase when we have been so busy integrating the businesses. Hopefully it's an indication of what we can deliver as we go forward and we leave the integration behind. Obviously very significant pickup in revenues. We're up to EUR 620 billion in terms of customer funds. As I said, that's 10.5% organic, but if we look at the long-term savings, 12.7% organic growth.
Obviously, markets have helped this year, but you see with over EUR 9 billion of net inflows, we've been very active on this front. MyBox working very well. You see pick up on premiums 76% if it's life risk and 95% if then you look at non-life. It's a product that has a lot of traction within our commercial network and within with our clients. Expect continued success from this strategy. Look at the P&L, big numbers obviously contrast between NII down 5.8% and non-interest income, which is up by higher percentages. Obviously, as those the base effect given that these are still lower numbers means that core revenues are slightly down 1% as you can see. Again, good trends.
Certainly in the Q4 , I would say very remarkable. The other piece of news in the P&L, so the big picture, cost under control, in line with our guidance and the significant reduction of loan loss charges. I think here we have 2 effects. One is we've been very prudent in the past in terms of provision building. The actual management of the NPL during 2021, the inflows, the monitoring of asset quality has been spectacular. That's been an area of focus. W e continue to see actually the lowest numbers ever on the range of 1 to 90 days default, which is usually not considered yet as a non-performing loan.
We're still seeing the lowest numbers that we have seen in the history, including now actually in January, which it tends to be a bad month. Very strong performance on that front. Obviously, you know, this year has been including a lot of extraordinary one-off. We've tried to separate those so that we have a clean net income, the pro forma EUR 2.4 billion, and then the real net income as reported is EUR 5.2 billion, mainly up by the badwill and reduced by the restructuring charges, you know. To conclude, a very strong balance sheet. Non-performing loans, as I said, stable in terms of ratio, down in terms of absolute numbers. Coverage is high, cost of risk is low, capital is high and increasing.
We've done completely with MREL. We have a significant headroom now and liquidity. Numbers speak for themselves. With all this in mind, we've fixed the dividend to be proposed to the general meeting with a 50% payout. As we communicated to the market, it's EUR 0.1463. We propose a range of 50% to 60%. We are also, as I said, starting the process of our share buyback program. We have announced today the intention, which was approved yesterday by the board to bring our Common Equity Tier 1 closer to the target level. This is obviously going to be subject to the approval of the ECB.
Once we're done and we have the details of all this, we will announce those to the market, most likely again during our capital markets day in the Q2 . Thank you very much. With that, I will leave the floor to Javier.
Okay, thank you. Good morning. Well, I will start making some brief comments on the balance sheet initially on the loan book, the ALCO, and also on our customer funds. On the loan book, well, better dynamics as commented in terms of new production on consumer lending and corporates and SMEs. This have resulted into an increase of our loan book in those segments. Still de-leveraging on mortgages. On that front, I would say that looking into 2022, I would say that aiming to reduce the gap between the market share of the front book and the back book. Also note that we have had some maturities in the public sector portfolio originated short-term lending during last year.
Finally, on this front, just to fully confirm that we have met the metrics for the TLTRO benchmark. Moving to the ALCO, we have increased the size this quarter, last quarter. In October, we took advantage of a spike in yields to purchase some medium-term securities, EUR 6 billion. As a consequence, you may see that the metrics average life and duration grow slightly, but the maturity profile and the breakdown of the sovereign exposure, I would say that remains broadly unchanged. On wholesale funding, no news. 85 basis points over 6 months Euribor is what we are paying for our wholesale funding costs. Remember that is swapped into floating. On customer funds, I would rather focus on the central chart.
It's already known, but I think it's remarkable in terms of long-term savings. Very positive market impacts, also inflows, EUR 9 billion in the year, every single quarter with positive inflows, EUR 2 billion in the Q4 . In terms of deposits, reaching approximately EUR 37 billion. Well, you know that within that we still have some room to expand that figure. Although this is clearly a measure that prevents further deposit growth. On the right-hand side, the most remarkable in my view is the fact that the end-of-period AUM balances are approximately up by 5% compared to the average of 2021. This obviously offers some support to fee revenues on this business into 2022. With this, let's move to the P&L.
I would make some remarks on the quarter-on-quarter evolution. As has been commented, a very good performance in fees and insurance that has allowed us to have positive quarter-on-quarter core revenue evolution, up by 2.8%. On NII pressure, still affected by lower asset yields and average volumes. On fees, very good performance. I would call it seasonal, not extraordinary. We had positive impact from success fees, but also on non-life we had a very strong Q4 . On life insurance, progressing, as I would say, in line with our initial expectations. It has been a record high quarter actually in terms of revenues on this business.
On costs, we are down by 1.9% as we have already having the benefits of the cost savings from the restructuring plan. On provisions in general, we have taken a prudent year-end approach, and we have added some extra provisions on other provisions. In terms of loan loss charges, at the end of the day, we end the year with this cost of risk at 25 basis points. That is below our initial guidance. On M&A impacts, well, you know that this is already ending, but this Q4 we still have some impacts.
On the positive side, mostly related to the disposal of the former payment business of Bankia to Comercia, and on the negative side, some restructurings related to the branch network, no? The net impact of those M&A one-offs is EUR 88 million. Excluding those, the Q4 pro forma net income has been EUR 337 million. Now BPI. Well, the long-term trends have already been commented by the CEO, no? but here looking into 2021, you see that this is continuing. Core revenues up by 8%. Cost very well contained at just over 1%. As a consequence, the operating leverage keeps improving with core operating income up by more than 19%.
Loan growth across all segments, with NPLs very well contained with an NPL ratio at 2.3% and with the bulk of the moratoria already behind us. With this, the attributable profit in Portugal this year EUR 170 million. Going into the retail NII down 1.9% quarter-on-quarter. As you may see in the central chart, it's still everything related to clients that is driving it downwards, impacted by lower average loan yields and also lower loan volumes. This time, the ALCO is starting to provide some support after the increase of the size of the portfolio, as you may see.
On the right-hand side, you see the evolution of our back book yield that is down by 2 basis points to 161. Still suffering the latest lags of rival repricings. On the front book, I would say you should not read too much into it this quarter, as approximately 50% of the front book is coming from CIB, obviously, at lower yields. On fees, very good performance, 6.7% up for the year, 14% this quarter. Even excluding the more volatile wholesale banking fees, up by more than 8% for the year. You may see the breakdown. We are doing well across, I would say, all segments. On recurring banking fees, with the support from corporate deposit charges.
On asset management, success fees have contributed this quarter. As I say, I don't call them extraordinary, I call them seasonal. Obviously we'll do our best to repeat it. On insurance distribution, strong focus during the quarter from the commercial point of view. Also some revenue recognition during this Q4 . All in all, a very good set of results on that part of the business. We think that it's a trend that in our view may continue. On life risk, on this front, on the central chart, what I was commenting initially, a record high in terms of life risk revenues, EUR 172 million.
You may see that this is a clear uptrend, and you may see that there is some volatility or some seasonality, better said, during the year, but, anyhow, a clear uptrend that in our view is set to continue. On the right, you have the breakdown of the different impacts of the consolidation of Bankia Vida. You know, in the first column, what you may see is the P&L breakdown as it was in 2021 with 49% ownership of Bankia Vida. This results into a pre-tax income of EUR 109 million.
On the second column, for illustration purposes, you can see the situation that we would have had if we had owned 100% of Bankia Vida, resulting into an extra pre-tax income and obviously a different P&L breakdown. We wanted to disclose all this information because I think it may help you in order to project into 2022 and beyond. Costs, not much news here. We, as I said, have reduced costs by close to 2% this quarter, with the tailwind of the restructuring implemented that is affecting personnel costs. Already 60% of the staff involved in the layoff has already left the bank, close to 4,000 people out of 6,500.
We are planning to reach 80% of cumulative cost synergies by 2022, and you may see some increase in depreciation as we continue with a strong CapEx program, mainly related to IT. Finally, on the P&L cost of risk, slightly higher end-of-year loan loss charges, but this cost of risk at 25 basis points, as commented, and you may see the breakdown of the loan book by stages. On Stage 2, a reduction of approximately EUR 3 billion, which is related to lower overlays that are no longer needed, mainly for the moratoria exposures.
Moving to the balance sheet on our NPL exposures, you may see that the NPL ratio is pretty much stable at 3.6%, well below our initial guidance. The breakdown across the different segments, no major news, as you may see. In absolute numbers, EUR 3.6 billion of NPLs, EUR 400 million less. Well, we have been active in the market with some NPL disposals, and we are happy to see that our marks are correct as we can dispose with any major P&L impacts. As also commented, we keep our EUR 1.4 billion COVID reserve fund used. In terms of credit quality on our moratoria portfolio or ex-moratoria portfolio, I would say that no major changes.
This is clearly doing better than our very initial expectations. On ICOs, we have 38% of those already paying principal, and the major milestone here being May, June, when the major part of them will start paying principal. The coverage ratio pretty much stable at 63% by the end of the year. On liquidity, not much to say. Very ample liquidity position. You have here all the metrics. I would only remark the net stable funding ratio at 154%, which is quite a remarkable figure. On MREL, we have an ample buffer. Our ratio stands by the end of the year at 26.2% with an MDA over 400 basis points.
We have been very active during the year in terms of funding across, as you may see, all asset classes. Going forward, the plan is to focus on the rollover of maturities and also on diversifying the investor base, also issuing into foreign currencies. Well, you know well about our engagement with ESG principles, and this is now being reflected in strong sustainability ratings. You have here a very detailed inventory, good qualifications in all those, and the commitment of the management team to keep those improving, no? But obviously this is facilitating ESG issuances. As you may see, we are the number 1 bank by ESG issuance for the 2nd consecutive year. T his is obviously to our plan going forward. Finally, capital.
We have further reinforced our solvency this quarter. No major capital impacts from M&A. Organic capital generation of 25 basis points, dividend and AT1s - 10. This results into a CET1 ex-transitional IFRS 9 of 12.8%. When adding IFRS 9 transitional, 13.17%, and this is an MDA buffer that is almost at 400 basis points. The tangible value per share has improved by 6% during the year, adding EUR 0.22. Well, as commented, the dividend per share that is gonna be proposed to the general meeting of EUR 0.1463, this meeting probably in the month of April. That's it.
I think that, with this we are done, and we may be ready for questions. Thank you very much.
Okay. Thank you, Javier, and thank you, Gonzalo. As Javier said, it's now time to proceed to Q&A. Operator, please proceed with the first question, including the name and company of the caller. We have a rather long queue, so just a reminder to everyone to keep your questions as brief as possible. Thank you.
Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. The first question comes from the line of Maksym Mishyn from JB Capital. Please go ahead.
Yeah. Hi, good morning. Thank you for the presentation and for allowing us to make questions. I have 3, if I may. The first one is on capital. I was just wondering if you could add more color on what the internal target for capital is. You've previously been guiding for 11% to 11.5% range, and I was wondering whether it has changed after the merger. The second is on NII. Now that you've rebuilt some ALCO, and there are promising signs in loan book growth, do you still expect Q1 of 2022 to be the bottom of the NII, or perhaps the dynamics are somewhat better? Then the last one is a clarification on SegurCaixa Adeslas. Thank you for the details on the extension of the agreements with Bankia.
We also heard from the press that Mutua has reached an agreement with El Corte Inglés, and I was wondering whether this will have any impact whatsoever on your P&L. Thank you very much.
Thank you very much, Maks. I will start with capital. We have not changed our target for core equity tier 1 CET1 fully loaded; it is 11% to 11.5%. Our intention is to bring down the 12.8% towards our range. We haven't decided to fix exactly at which point we will take it. It's the beginning of the process, but clearly there is very significant headroom here. I would also like to briefly mention that the agreement between Mutua and El Corte Inglés; obviously, I only know the public information around it. It's a good agreement for both parties.
For SegurCaixa Adeslas, it's gonna mean that they will be able to increase its sales on the health side, because all the health business of Mutua Group is done by SegurCaixa Adeslas. That should be positive, but I cannot quantify it. I think in the sort of broader picture for CaixaBank is not going to have a material impact, but if any, that should be positive for Adeslas. With respect to NII, Javier, you may wanna address that one.
Okay, Maks, thank you. Yes, on NII, let me elaborate. I think that probably this answers plenty of questions. Well, now it looks increasingly likely that the TLTRO funding benefit is ending by June. The ECB didn't gave clear signs that this will be rolled over. On the other hand, it's true that they suggested that potentially the amount of balances subject to tiering could be revised upwards, no? And I think that it's important also to know which may be the impact from this. Now, the tiering is 6x the minimum reserve requirement, and there is some market talk that this can be increased by 2x , or doubled.
In this case, the impact for CaixaBank will be approximately EUR 100 million a year, just to have this number. Also, that part is uncertain, no, what may happen. You have, as we gave the breakdown of the different impacts now from Bankia Vida, you saw that in 2021 we would have had a positive impact on NII of EUR 88 million, no? You, when making forecast for NII, you need to take this into consideration. Setting aside these all these Covid noise, no, because it's difficult to predict what may end up happening, I can now confirm that the trough on NII is gonna be in the Q1 .
We may have some negative delta in the Q1 from the Q4 , but it's gonna be lower than the negative delta we have had in the Q4 from the Q3 . This has to do with lower Euribor. There's still some negative Euribor resets that still are filtering into the Q1 , no. From there, in our view, setting aside, I insist, all, everything that may happen from the ECB, organically, I would say, we should see the trough in the Q1 , no. It's about, as you said, a loan book that is improving gradually.
I already mentioned, no, that it's our aim to reduce the gap in mortgages between the market share of the front book and the back book. Obviously, this is gonna be a gradual process, no, but this may help. The positive dynamics that we are seeing also in terms of consumer lending and corporate and SME lending also will help to have, in our view, at least a flattish loan book into next year, no? This obviously will help. On the ALCOs, where we have upside, I made comments some time ago that the size of the portfolio could reach a level of up to 15% of our assets. This is quite a large amount, no? It's approximately EUR 90 billion.
Obviously, we are not gonna be there in one go. It will be very market dependent. Depending on the pace of increase in yields, long-term yields, the shape of the yield curve, we'll see. We don't have a preset view on this. We are gonna diversify the portfolio also other than on Spanish government bonds. Obviously, this offers plenty of upside because we have plenty of liquidity to deploy. If markets help, which it looks increasingly likely that this is the trend, obviously this offers upside. Finally, I would like to mention our sensitivity to higher rates. You know, now, obviously, the market is already discounting that 12-month Euribor is gonna be at zero by the end of this year.
Who knows, no? But it's clear what in the other side of the Atlantic, which is the approach, no. I don't know what ECB will decide, but I think that at least it is the first time that things are moving for real. You know that our sensitivity is quite high in that sense. An upward move of 100 basis points in yields would result into an improvement of NII between 20% to 25%, depending on the different assumptions you make, no. Because you need to make plenty of assumptions to this in terms of shift of deposits, sight accounts into deposits, et cetera. Hope this helps.
We are not giving today a specific guidance, because as you know, we are working on our long-term strategic plan, and obviously in due time, and this spring when we reconvene for the investor day, we'll give you detailed figures, not only for 2022, but also for longer term. Thank you.
Okay, thank you, Maks. I hope that answers your question. Let's move on to the next question, please, operator.
Thank you. Next question comes from the line of Sophie Petersen from J.P. Morgan. Please go ahead.
Yeah, hi. Here is Sophie from J.P. Morgan. Thank you for taking my question. J ust to follow up on net interest income, in terms of the TLTRO, could you just remind us how much you have maturing in 2022? And confirm that it's accrued at the 100 basis points, and kind of what NII headwind you expect from this. T hen my second question would be kind of on the cost inflation. You're doing well on the restructuring, but how should we think about kind of underlying cost inflation for 2022? Should we expect kind of to see some higher wages? And could you just remind us when you do the wage negotiations in Spain? And then just the final question on fee income.
How sustainable are the kind of growth in fees that we saw in the Q4 ? I know you mentioned that it's not a one-off, but it was exceptionally high this quarter. How should we think about fee growth going forward? Thank you.
Thank you, Sophie. Good morning. I leave TLTRO for Javier. It's his favorite. It's so relevant for all of us. Cost inflation. Obviously, cost is something we can have a higher definition at this stage, as we control more variables on cost. I would say first we are on track with respect to the synergies that we announced for 2022, EUR 645 million. I think this is fairly safe. It's mostly related to staff departures. At this stage, that's something that you need to incorporate. You need to incorporate some accounting impact, basically from the acquisition of Bankia Vida. You've seen those numbers in the presentation. Javier explained there's approximately 30 million, 31 million from consolidating Bankia Vida.
That's obviously going to have a significant and positive impact on revenues, but it also has an impact on costs. With respect to the comparison between 2022 and 2021, not necessarily for the future, and obviously we're going to work hard in making sure the cost inflation is contained over the 3-year period that we will be discussing in our capital markets day. For 2021 to 2022, we're gonna have the reversal of some savings that are related to the lower level of activity in 2021 associated to the various COVID waves. That is something that is going to impact our cost base, the comparison between 2022 and 2021.
Keeping all this in mind, what we expect is that we will have a cost base this year, 2022, somewhere between EUR 5.9 billion and EUR 6 billion. That is what I would say at this stage. That is going to also depend on a number of variables, including the evolution of the pandemic. On the cost side, that estimate of being between EUR 5.9 billion and EUR 6 billion is what I would like to share with you now. Now, beyond the TLTRO fees and Javier will complement, but obviously fees and insurance are key to our strategy. The way we've been working this year gives me a lot of confidence that we have significant potential here.
We have had an extraordinary Q4 with some performance fees and a very good sort of also on the non-life levels of commercialization. I have to say, to be honest, my expectation but certainly my aspiration is that we keep repeating very strong Q4 this year, next year because the strategy we're following should lead to that structurally. Obviously, there will be ups and downs. Market is going to be the major factor. Obviously we're gonna go back to a lower level as we exclude some of these performance and special incentives that we achieve in the Q4 . Why not?
Our aspiration has to be to repeat those quarter of next year and the Q4 of 2023 and onwards. Javier, maybe you can also comment on this and discuss the TLTRO.
Yes. On fees, just to complement. No, it's already. We made a comment on the presentation. What we can call seasonal for this Q4 , I mean, this excess in terms of AUM fees due to success fees and also outperformance in terms of non-life is approximately EUR 65 million. I insist this is not an extraordinary, it's seasonality, and as the CEO was commenting, our aim is to be able to repeat, no? On TLTRO, just to be more specific, TLTRO is not ending. What is ending is the funding benefit of -1%. We have basically funding at -1%, and we are depositing those proceeds at -50.
We are making a 50 basis points carry, and this is affecting EUR 80 billion at group level. The math is simple. This is EUR 400 million per year. This is ending in June, theoretically, unless ECB says the contrary. For the year, the impact is half this, which is EUR 200 million. Rough numbers. It's probably a little bit less. Well, that's it, no? As I say, clearly the ECB hinted that they could. I would not like to use the word, but compensate the not rolling over this facility with an increase of the balances affected to tiering, no, deposited at zero. We'll see. We have an ECB meeting next week, so we probably will have further information. Thank you, Sophie.
Okay, Sophie, thank you very much. Let's move on to the next question, please.
Thank you. Next question from the line of Britta Schmidt from Autonomous. Please go ahead.
Yeah. Hi there. Good morning. I've got a few questions. One is just a clarification on the net interest income. You're essentially guiding to a less than 2% decline, Q-on-Q and Q1. D oes that include consolidation of the insurance business of around EUR 20 or so million? Another question I have is on the cost of risk outlook for 2020. Is there any idea that you can give us relative to 2021, in terms of credit cost of risk performance? Maybe a clarification. There were quite a few asset buy-downs linked to the commercial network scattered across several lines in Q4. Is there anything more that we should expect in these lines? Thank you.
Thank you, Britta. As I just mentioned on the cost of risk, we have had a very positive 2021, and actually expect 2022 to be equally positive. At this stage, we tend to be fairly conservative on these things, as you know. I would say loan loss charges, our expectation is for them to be in line with this year, around 25 basis points. Again, I will emphasize that we tend to be conservative on these matters. We have EUR 1.4 billion of unused COVID reserve.
At this stage, when I look at the state of the economy, what I mentioned in terms of sort of late payments that we're seeing, the status of the market expectations, GDP actually came just an hour ago above our expectations. I think we have upside here, clearly, no? Javier, maybe you can take on again NII and others.
On NII, well, to be more specific, what I said is that the trough is ex-TLTRO, to be clear, or all the ECB actions, is expected to be in the Q1 with a delta, negative delta, lower than the delta, negative delta we have had in the Q4. T hat's probably, this may be less than this - 2% quarter-on-quarter you mentioned. Yes, Bankia Vida NII will be included because it's already consolidating since the 1st of January. On restructuring charges, I would say that in general, on restructuring charges, we are almost done. We may have still some, I would say non-material M&A impacts on the P&L this year. It's still difficult, still to see if we are at the end.
I, as I say, clearly non-material. That's it, no? In terms of restructuring, you know that we have early provisioning for what is coming in the following quarters, no? We think that on that front, we are almost done. Thank you.
Okay, Britta, I hope that does answer your questions. With that, let's move on to the next one, please.
Thank you. Next question from Francisco Riquel, please, from Alantra. Please go ahead.
Yes, good morning. 2 questions for me. First one on, you can give more color on in terms of loan growth in Spain in particular. You mentioned flattish, I guess, for the group. I f you can update on your mortgage strategy. Recently launched, I saw a new commercial offer in MyHome. What would it bring? If you still see leverage, I guess, the front book you mentioned, closing the gap. This would still be negative. The seasonal pickup, the pickup we have seen in consumer and corporate lending, whether this is seasonal or do you see this as a change in trend. The Next Generation funds seems to be a slow process. A bit more color on loan growth by category, if possible.
Second on capital, you can update on the outlook for the build-up, if any, in 2022. Any type of risk-weighted asset inflation, regulatory headwinds left, M&A impact, the reorganization of the insurance operations, or any other impact you may highlight. Thank you.
Thank you very much, Paco. Let me start maybe giving you some color on what we see on the credit side, and Javier can take it on RWA and capital. I anticipate we expect to have another positive, clearly positive year in 2022 in terms of build-up of capital. J avier, I'm sure will elaborate on that. On the lending side, we feel it's going to be a reasonable year for the sector and a good year for us. Taking sort of category by category. Housing. Housing has been slightly positive, it seems, with the figures I have for this year for the sector, and should, I think, continue that trend for 2022.
We're expecting a slight growth just below 2% for the sector in the housing credit. On our side, we are clearly going to try to increase our share of new production. We have seen a significant reduction during 2022 with I think a strategy that we felt good about it being selective, disciplined in terms of price and and certainly I think very conservative from a sort of asset quality point of view and making sure that the mortgages that we give today continue to be good for their total life, no? We have launched this campaign, the MyHome, at the beginning of the year again. This campaign is not just about mortgages, but it includes mortgages.
It's MyHome, it's the ecosystem, and we are offering quite a lot of things for this ecosystem. We're offering, obviously, protection within our MyBox strategy. We are offering funding of refurbishing reforms. We're offering funding of electronics associated to the home, which, as you know, we also distribute through our Wivai sort of marketplace. We are including in this also some mobility elements going to and from your home, so it's a whole pack. Within that, we have the mortgage product, Casa Fácil, which we have commercialized with a lot of success. We are clearly putting incentives and the attention of our people in the branch network, given the growth that we're seeing in this part of the business, to be more active.
Obviously, pricing is part of that, and we're going to be slightly more aggressive on that front because the market is going through levels that are very competitive. It's not just about changing our pricing strategy, it's changing or focusing on that ecosystem where we think we can play a pivotal role, no? We still have 26% of market share in mortgages. In terms of our client penetration in Spain with our 19 million clients, we have a big reach, and we want to build a whole ecosystem. Again, this is not going to be a one-off campaign that we have for a month or a month and a half.
This is going to be a permanent push during the whole year, one of our main targets. As a result of that, we expect that new lending is gonna increase significantly from the levels of 2022. We've seen that in the Q4, and actually, the Q4 has been particularly difficult because of the integration. We're starting to see the success and the growth during the month of January on the mortgage side. Again, significant increase for us. Does that mean we're gonna increase our market share of stock? I would say unlikely.
I would expect to see, because our book is very mature, very seasoned, and we're gonna have higher amortization than the average of the market, I would still expect a slight reduction of market share, but certainly very different from what we have seen in 2021 and before. On consumption, we're fairly optimistic. I think this is going to be growing gradually during the year. We have had a fantastic Q4 . I think even though it's difficult and too early to look at the proper comparison to know that we compare apples with apples with the rest of the market, but my feeling is that, we've done clearly better on the market in the Q4 , and my expectation is that we can continue to do so, right?
We'll have to see how the year evolves. The sense is, pent-up demand and the normalization of life, hopefully post at least intensive phases of COVID, should be very helpful. On the business front, again, we're in pretty good shape. In the same way we expect businesses to be aided by Next Generation EU funds, but still, with plenty of liquidity, I think we're in good shape, and we should be at least maintaining our market share, but certainly our aim would be to increase that market share. The NGEU fund, it is true that they haven't yet made an impact to the business, but as something that is coming, it's coming gradually, but it's getting closer.
Obviously we see that during this year, it is going to have an impact. We actually were saying for a while that it was going to be backloaded in 2021. In fact, it's not been backloaded, it's been moved to 2022, but we're gonna see that impact this year. When we look at that's why Javier had comments that make us pretty positive on that inflection point on the overall loan book, because I can see why we're going to be doing better across the 3 categories certainly than in 2021. Javier.
Hi, Paco. On capital, yes, let's say pending M&A and regulatory impacts, I would say that the net is gonna be in neutral. On M&A, we will have some still pending positives and negatives, but that are gonna be probably compensate each other. On the regulatory front, we have also positives and negatives. We have the convergences of internal models of Bankia to, let's say, the CaixaBank, the CaixaBank models. We have also some limitations in place in some portfolios, in terms of risk-weighted assets, due to some internal inspections that are gonna be released during the year. These are positives.
Potentially, it's not clear still fully if the rollout of the IRB models in Portugal is gonna be this year or next. Anyhow, as you see, positives and negatives, it's not clear to me every single quarter when we will have the positives and the negatives, but not that large in any case. The end result for the year, pretty much neutral. We are having now the view that risk-weighted asset inflation due to rating migration is gonna be very moderate, and this is not gonna be a material issue according to our comments about the positive evolution in general about credit quality. That's it.
A year where we think that we will continue generating capital organically, despite having raised the payout ratio to 50% to 60%, and you know that what will be accrued will be the upper bound, the 60%. This is what the regulation requires. In our view, still a year with strong capital generation. This bodes well for our capital return policies.
Okay, Paco, thank you very much for your questions. Let's move on to the next one, please.
Thank you. It comes from the line of Ignacio Ulargui from BNP Paribas Exane. Please go ahead.
Thank you very much for the presentation and for taking my questions. Just have 2 questions. One is on NPL management and the strategy that you are having in terms of portfolio disposals and what should we expect into 2022. If you could also give us a bit of a sense when do you think NPLs will peak, because we have been just waiting the iteration from the ICO being postponed. Just a bit of color on NPLs. Linked to that, the 63% coverage for across the cycle period looks high. To what level do you think that the coverage could go down? 1 question on the integration of the franchise with Bankia. I mean, when do you think-
Do you think that the H2 of 2022 will be just sort of like all completed in a way we could see the real strength of the franchise in terms of commercial at full speed, or we are already there now?
Thank you, Nacho. Let me address the questions. I would say first of all on NPL management. We're having I think fairly good trends, but we face a bump in the road, which is the ICO loan finalization of the moratorium or the sort of deferral of principal mostly in the Q2 of this year. We're going to be very prudent until that happens, and hence I wouldn't expect news of us moving in the sense of being less conservative until at least the end of the Q2 , maybe the end of the Q3 , depending on how the whole thing evolves. We have a big concentration in the Q2 . That's first point.
Second, all the information we have today, which is a lot, is fairly positive. We have indeed reclassified into S3, a few or significant number of ICO loans that are still paying, but for a sort of internal rating sectors they operate, we think they may move into NPL. Not every single non-payment that we have next year is going to mean an NPL, because we already have recognized quite a few. I don't think there is any upside, if we're not prudent until this happens. I also take comfort from the fact that when we looked at the moratorium in the past, we thought that we're gonna have a significant impact on asset quality, and we managed, I wouldn't say pretty, I would say extraordinarily well. Let's see how that goes.
I think we have to be positive. The peak for NPLs should be reached this year. I am not going to be able to tell you in which quarter from our point of view, because it's gonna depend obviously on what happens with ICO loans. That may suggest Q3 of this year. It also is going to depend on what we do on the disposal of portfolios. We have been fairly successful in that generally, but when we look at, for instance, this Q4 , we sold a large portfolio. Again, we had very positive results in terms of the level at which we sold clearly above the marks we had.
My expectation during 2022 is that we can be fairly successful with that strategy, and hence, we're not only gonna try and contain the new entries, but we have, I think, opportunities to reduce non-performing loans in a significant manner. As opposed to what we might have felt, I don't know, 10 years ago after the big crisis, what we're seeing now is our marks are very conservative, and that leads into the 63% coverage ratio. Completely agree. It's not a normal level. That is the result, among other things, of our COVID EUR 1.4 billion reserves and our PPA, particularly associated to the Bankia transaction, which is around EUR 400 million. A nyhow, we can confirm that to you later.
Yes, we have a very large coverage in sort of normal, ordinary course of business. None of these will be there because it would have a runoff. That doesn't mean we're gonna release all these in the very short term, clearly not. Certainly we are, as you say, very well provided. Second point, in terms of where we are, I think if you look at the business, we have some business in which we are at 100% shape, and that includes private banking, it includes CIB, it includes business. Certainly the product factories I think they have 0 impact at this stage from the integration, generally speaking, and then you.
We have the retail network, which obviously the vast majority of the business, where a lot of things have happened, and the business has been now integrated, but we still have to integrate 750 branches. I s there some impact from all this process? Obviously, yes. We can try and do a good execution in integration. W hen we move 10 million clients from branches, and we change 6,000 people that actually were managing client relationships, but we change a different phase, this is a process which takes time. The time that it takes, making sure we provide the right service, the right quality to our clients is obviously lower time that we had for other things.
I would say we're almost there, but during the H1 of the year, we're still going to have the retail network. I wouldn't say distracted, but focused on service quality issues, making sure that we don't lose clients and that the business stays with us for the long term. Throughout the year, I would expect that this is going to mean that sort of by the summer or turn of the summer, we are really 100%, absolute 100% all engines of the bank. A gain, a good number of them are already there. That's what I would emphasize when we look at the business of the private bank, et cetera. There's a very large part of our business, even if it's retail, that is done with integrations or where the integration is not very significant.
Because as you know, the geographical presence of overlap of Bankia and CaixaBank is focused on certain regions, Madrid, Valencia, the Islands, some other places, and others have very limited impact. For instance, the north of Spain or Western Andalusia or Catalonia, et cetera. We're gonna have a very significant part of the bank at 100%. It is being at 100% from the 1st of January, and the rest of the retail is going to gradually get there during the H1 of the year.
Okay, Nacho, thank you very much. Let's move on to the next question, please.
Thank you. It comes from the line of Mario Ropero from Bestinver Securities. Please go ahead.
Hi. Good morning, everyone. 2 quick questions. The first one is on the distribution, the share buyback to bring down the capital to the target level. Would you bring it down right to the target level, or would you consider keeping some sort of cushion? If so, what kind of cushion should we have in mind? The second question is, I know you're not giving any guidance for 2022. I mean, it's obvious that the outlook for NII, it's hard for fees and insurance, maybe better. Could you give us at least some sort of indication of how you see the net of these 3 in 2022, positive or negative? Thank you.
Thank you, Mario. In terms of capital, clearly, we're not going to bring it down to the target. We're saying closer to the target, not down to the target. I think there is no decision taken on this, but I would say it is a reasonable assumption to think that around 12% would be the endpoint. T his is only an assumption. Again, no decision has been taken. On NII fees, et cetera, I am afraid it's going to be difficult to answer because we have decided that we need to give guidance for a 3-year period, and we're gonna do that in May. At this stage, we're trying to be as helpful as we can in every single category.
We're being fairly more specific on cost because there, I think is fair to you, to say where we see things. Beyond the comments that we have made, Javier, I would say let's wait for the investor day in the Q2 . Apologies for that, Mario.
Okay, Mario, thanks for that. Let's move on to the next one, please.
Thank you. From the line of Alvaro Serrano from Morgan Stanley, please go ahead.
Hi. Good morning. K ind of a follow-up. Thanks very much for the detail on the moving parts on the NII. I don't know if you can maybe sort of give some color on the sustainability of fees, because we've seen you had a very strong Q4. I noted the comments from Javier saying that some of it is, I think it was EUR 64 million, something like that, seasonal. Obviously, 2021 was a very good year also in general in banking. I don't know if you can share some thoughts. If you don't want to share a number, but at least some thoughts on should it be sort of accelerate and sort of slow down. The comps is tough, so maybe it has to slow down. Some thoughts there.
Obviously, with the IT integration now done, you've touched on it, maybe some of the cross-selling can start coming through. The second question is, on the buyback, is it fair to assume that the limitation ultimately will be the criteria can't go above 40%? Would that be the limit or? Thank you.
Thank you. I'll refer to Javier to give you detail on fees. On the second point, I would not relate the limitation of the share buyback to the ownership of any particular sort of shareholder, be it large or small. No. The limitation is going to be our capital position and our views on not just on the short term, but mid, long term. That's what is going to be driving the decision. You know, again, as I see, and Javier explained, 2022 is fairly positive in terms of capital creation as well. I am optimistic on that front, but there's nothing to do with the particular position of shareholders, you know. On fees, Javier, you want to elaborate?
Yeah. Some color, Alvaro. Hello. Well, you know that what is clearly supporting fees is asset management, no? It's EUR 1.4 billion revenue pool. This is a structurally growing business. We have done well. Obviously market has helped. It has been exceptional year on that front. In terms of inflows, we don't think that we should have lower inflows than in 2021. I think that we are quite a bit on the evolution of this business. We are good at it, so we have really a very good franchise on the distribution of AUMs.
Well, we are quite a bit, as I say, you know, so the pace of inflows in our view will continue, you know. On non-life, on that front, we had a very strong end of the year. There is a very strong focus, as you know. You know that, well, our commercial strategy there, the MyBox commercial offer, is doing extremely well. Now, obviously gradually rolling out into former Bankia clients. Our view is very positive, you know. I think that I mentioned, you know, that we had some seasonality in the Q4 also in this business. We should at least be able to try to repeat, you know.
I think that it's a growing business also, no. We have the larger world of recurring fees. On that front, we are having the extra support of something that actually is NII, you know, but is the custody fees. We have had close to EUR 90 million this year on custody fees and our view is that we can have something more. Clearly on that front it's a figure that is important, but the most important is that the fact that we have this strategy in place is shielding a little bit ourselves on deposit inflows, you know.
Actually we have anecdotal observation that this is the case, you know, that is preventing a clear deposit inflow. There is an area that is important, which is payments, no? On that area, we have had 2 consecutive summers that have been, let's say, much different than normal, no? For us, it's the summer is important because part of the payment fee revenue pool is due to the use of ATMs. Our ATMs, which have the largest part of ATMs in Spain. When, let's say, non-CaixaBank credit card uses our ATMs, obviously we have a fee. Well, the summer for us is important with all foreigners using ATMs, et cetera.
Hopefully this is gonna be a better summer also, despite we have already been observing an increase on the traffic in terms of the use of points of sale terminals, et cetera. Obviously, if we have a better summer season, also this will help on that front, no? At the end of the day, if lending improves, this ends up with fees also, because on mainly on the CIB side, you have origination fees, et cetera. It's also gonna be providing support. All in all, AUMs, in our view, is gonna keep doing well, probably with less support from the market than this year. Who knows, no? In terms of inflows, nonetheless, this is our view.
On non-life insurance, also very good momentum. Not specifically fees, but I would like to mention also our life insurance business, no? That I displayed the chart of the quarterly evolution, no? It's clearly an upward trend. This is, in our view, set to continue. As you know, gradually rolling out also the revenue synergies on that front, that you know that is one of our key businesses. Hope this helps, Alvaro. Thank you.
Okay. Thank you, Alvaro. Let's move on to the next question, please.
Thank you. Next question comes from the line of Carlos Cobo from Société Générale. Please go ahead.
Hello, good morning, and thank you for the presentation. I wanted to sorry if you touched on this already, but if you could clarify a little bit more, in terms of what are the one-offs related to the merger and other impact. You reported something around EUR 90 million in costs, but in the other provisions, non-credit and gains and losses, there seems to be another EUR 200 million, roughly, from, let's call it unexpected losses in consensus. Could you explain a little bit more what that is and what is the breakdown? Then a quick question in the future about the potential share buyback. Should we adjust any potential penalty from the agreement with MAPFRE?
Also, around this insurance business, do you expect any positive impact on capital from the consolidation of Bankia Vida under your own life company under the Danish compromise? Will that have any positive impact on CET1? Thank you very much.
Thank you, Carlos. The answer is yes, it will have a positive impact in due course. With respect to the share buyback and the penalties associated to the reorganization of the insurance, I would say there's no relationship. Again, share buyback, we are saying it's going to be based on capital, excess capital at year-end, bringing it down closer to our target capital. There is no further impact. Obviously, if we were to have a view of issues, problems, capital threats in 2022, we will take that into account. I am confident that that's not the case.
As I said, and Javier explained some of the detail, the net of what we expect for 2022 in terms of capital generation, beyond the 60% payout or 50% to 60%, but as you know, we say 50% to 60%, we will be accruing 60%. Beyond that, we still expect significant capital generation in 2022, all in all. We have perfect room to accommodate unexpected surprises, if any comes. On the rest, Javier, maybe you can help me.
Well, on what you mentioned about other provisions and other one-offs. Well, on other provisions, ex M&A related, we had a prudent approach to some legal issues, mainly related to foreign exchange mortgages, exposures to revolving.
We had a conservative approach towards that part. We had a book on that front, an early retirement scheme in Portugal. All this adds approximately EUR 100 million to that part, no? This is, as I say, ex the M&A impacts, no? I understand that probably is a little bit complex, no? We have quarter-on-quarter some moves, no? Some changes, no? In other provisions, we have the release. This is related to M&A, no? We have the release of approximately EUR 130 million that is now being assigned to another P&L line, which is gains and losses by approximately EUR 100 million and also to extra costs for the EUR 25 million remaining, no.
Additionally, we have on other provisions, EUR 68 million from, I would say, this is advancing, which is gonna be the impact of branch restructuring implemented in the Q1 that has already been booked as other provisions. That, in due time, will be assigned to other gains and losses. This is, I understand, probably a little bit confusing. Sorry about this accounting rules. On that front, I would only highlight that the total amount of charges is perfectly in line with the figure initially announced. Yeah. Remember approximately EUR 2.4 billion of restructuring costs, and we are there.
If you do the math for the year, so we are there, and as I mentioned, any remaining for 2022 is gonna be non-material. Thank you.
Okay. Thank you, Carlos. Let's move on to the next one, please.
Thank you. It comes from the line of Fernando Gil from Barclays. Please go ahead.
Hi. Good morning. Thank you for taking my question. I have a question about the insurance operations and the agreements reached with SegurCaixa Adeslas and Bankia Vida. If you can provide clarity on how this will be accounted into the P&L, because I see some kind of footnote saying that it would be accrued during 10 years. If you can just clarify how this will enter and be accounted that will be great. A follow-up question on mortgages, if I may. Can you please remind us what is the percentage back book on fixed mortgages and variable mortgages? Thank you very much.
Javier, if you want to, let's.
Yes.
Try and speed up because we only have 9 more minutes, and do we have more questions to-
Okay.
I think we have 2 more questions.
Okay.
on the queue.
Well, on SegurCaixa Adeslas, as you say, this amount is accrued over 10 years. Part of it is gonna be used also to compensate the penalty to pay to MAPFRE for the non-life business, okay? This is also accrued. Then you have a net of both things. Remind that this is paid by SegurCaixa Adeslas, that actually it's owned 49.9% by CaixaBank. Thus, as a consequence, it also has a negative impact on the equity account, yeah, from SegurCaixa Adeslas. If you do the net of all those impacts, actually is not that large as it is accrued over 10 years.
Unfortunately, we still don't have a final view on which is gonna be the final breakdown by P&L. Because there are different moving pieces, and unfortunately, we're still working on it. I am sure we will be able to inform once we announce the Q1 results. Back to your question about the mortgage portfolio, I was consulting my notes. Well, I can give you the data for the overall portfolio. We have now at group level, at fixed 35% of the loan book, and this is the loan book. At floating 65, no.
Of the total loan book, indexed to 12-month Euribor, we have 42%, and then we have 3-month Euribor 12% and 6-month Euribor 7%. This is approximately the breakdown. Into the mortgage portfolio, the percentage of floating to fixed is a little bit lower. It's approximately 25% fixed and 75% floating. Thank you.
Fernando, thanks for your question. Let's move on to the next question, please.
It comes from the line of Borja Ramirez. Please go ahead.
Hello. Good morning. Thank you very much for your time. I have 2 quick questions. Firstly, as a follow-up on the AUM growth, you could kindly provide a bit more detail on the outlook of the growth of AUM. Did you see an increase in the conversion of deposits into AUM? Then, my second question would be related to CIB. I saw an announcement that CaixaBank had launched ESG advisory capabilities. I would like to ask if you could provide some details on the CIB opportunity for the group. Thank you.
I didn't understand the last.
Last question was on ESG advisory capabilities.
Yeah. What was the last one?
What does the opportunity represent for the group?
Oh, okay, fine. I'll start with that, Borja. Thanks. Obviously, ESG is in a
A big driver. We actually did over EUR 30 billion of ESG-related funding for clients only in 2021. It's a fast-moving environment, and it's become an integral part of what corporations have to do, is to fund themselves, but also show that path towards net zero on the environmental side, and obviously a number of other considerations, both on the environment and on social. Having that dialogue is absolutely critical. If you look at EMEA sustainable funding last year, we were number 6. We were first among the Spanish banks. We have a great DNA, a great team, and lots of early wins. Not so early, but lots of very significant wins.
We had, for instance, a growth of 41% in sustainable operations in 2021 vis-à-vis 2020. Big opportunity, both for us in terms of how we position ourselves. Javier made some comments about how the sustainability agencies look at us, and we are almost at the top on almost from every dimension or from every agency. Lots of things to do, but plenty of opportunities indeed. AUMs and conversion of deposits obviously is part of the strategy. Javier, you wanna add any?
Well, not much to that. It's. I mentioned, no? That, it's, as you know well, it's, one of our key businesses. We have had EUR 9 billion of inflows. I mentioned that, we don't see less than this, into 2022. We think that we do it well, the proper manner. You know that, this is not about pushing, it's about the proper distribution, about, advice. We have, I think that the most advanced advisory model in Spain. Well, at the end of the day, this is doing well. Inflows every quarter, even in the worst quarters of 2020, when markets had such high volatility, we had no outflows, no?
This already tells you that, let's say that the selling process, the distribution process, the advisory process has been done, well, no? Just to reconfirm 1 more time, that is, one of our key levers for revenues.
Okay, thanks, Borja. Operator, let's take 1 final question, please.
Thank you. It's from the line of Marta Sanchez Romero from Bank of America. Please go ahead.
Thank you very much. Just a couple of quick ones. The first one on mortgages. What level of market share in new mortgage lending would make you confident the My Home campaign has been a success? You're currently around 10% to 11%. The second question is on capital. What has been the impact on core equity tier 1 from the revaluation of your pension liabilities this quarter? Many thanks.
Sure. On MyHome, again, it's not just about mortgages, Marta. Maybe we do greatly or just half greatly on mortgages, but there's plenty of consumer associated to that and plenty of insurance. We don't want to define the success of MyHome by just the mortgage product. It will contribute, that's our clear view, to a higher share of new production. We haven't made a target now, but of share of new production. I would say, I think we have to be much closer to our sort of stock market share of mortgages than we are currently.
That means a significant increase in new production, i.e., above 50% increase in new production, is something that we should be expecting for this year. Time will tell. It will depend also on the market. Y es, a significant impact. On the other one, maybe Javier, you can-
Yes, on pension liabilities, I was consulting my figures, no? The impact from mark to market on pension liabilities has not been that large. It's just a few basis points, no? It has not been an issue because at the end of the day, you know that it's about assets and liabilities and the liabilities are also revalued at market levels. This has not been an issue at all. Nor the ALCO portfolio that you know that we have, the major part of it accounted as held to maturity, no?
Actually, the available-for-sale portfolio with impact on fair value OCI is limited because you know that we had the long-standing view that yields should go up or should go up at some point. Thank you, Marta.
Okay, thanks, Marta. That's all we have time for today. It's been a pleasure to host you 1 more quarter, and thank you for watching, and goodbye.
Thank you.