And this concludes the presentation for today and we're now ready to take your questions. Furthermore, the rollover of new maturing fixed business is now also happening on much more favorable terms versus the last couple of years. State Pension age. Turning to the hedge. For now given the announced increase in the counter-cyclical buffer very likely only partially mitigated by the proposed Pillar 2A offset both at the end of 2020, we are holding a level slightly above this finishing 2019 at 13.8%. The deal is the second largest in UK history and covers members in the Lloyds Bank Pension Scheme No.1, Lloyds Bank Pension Scheme No.2 and HBOS Final Salary Pension … It was partly influenced in the first half by the change in investment manager and by the longevity benefits that we got, but it was also characterized if you like by building the business across all lines really; auto enrollment being one, annuities being a second. Alongside this, we drove a 6% reduction in BAU cost. The third of your questions around insurance dividend. We are at the moment in a situation of some uncertainty about what the authorities choose to enact in terms of Basel IV -- finally enact. Our approach of progressing our strategic transformation at pace and continuing to deliver strong and sustainable returns to shareholders while being watchful and responsive to external risks remains the right one and this confidence is reflected in our 2020 guidance. Market data powered by FactSet and Web Financial Group. So, next I'll turn to other income on Slide 26. And finally, the margin on the commercial banking portfolio showed stability at 2%. More broadly, the consumer finance market evidences some competitive pressure. The yield point, you're right. Used car prices softened during the year, but they stabilized during Q4. “This will protect the Schemes from the financial risk of an unexpected increase in life expectancy and make the schemes more secure to the benefit of all members. So, our guidance for the moment although stable has these two differences between large corporates if you want and our target segments, which lead to the guidance and that's squares the two parts of your question. And then just, do you have a view on how big the deficit is at the moment? The second is in the context of a base rate cut, you may very well see a widening gap between the swap rate and the rates at which mortgages are being sold, and so you may see some widening in the margins off the back of that, which is effectively similar to what you're seeing now frankly. I'll get to the Group center in just a second. Our approach to focusing on margin and risk rather than volume and the new business flexibility provided by the Tesco book helped to protect our margin in what was a competitive environment. We come to the end of the year and the Board decides with information available then, our guidance is 13.5%. And maybe if I just add one thing just on the mortgage market. If we do get it, it's likely to be back end, second half of 2020 not front end as it was in the course of 2019. Turning to the next slide, we'll take a look at credit. This improving the profile continues to support the liability margin, which in turn was stable over the past year. Our actions have supported an improvement in our mobile app NPS by 3% to 68.4 between 2017 and 2019. So, if I take that along with the fact that you're seeing some signs of recovery, why are you not being more positive on the asset growth aspiration for the --. I guess on the mortgage side rates, I mean three key elements that matter. In today's revenue environment, doing what we can to preserve operating leverage and investment capacity is clearly critical. As you know, the Group has a focused cross culture and a strong track record of delivery. The in-year generation of 1.1p after SPPI was more than offset by dividends of 3.3p. This importantly assumes an average five-year swap yield of 75 basis points throughout the course of 2020. In mortgages, the prices have -- the margins have continued to improve as Vim said and this has been back ended in Q4 and into Q1. So, in effect the change that we've got to make now is different to what most of the industry is having to go through and therefore I guess we're not specifically calling that out this time around and it's all embedded into William's margin guidance. We have a view on what will happen to capital requirements in the years thereafter as Antonio and I articulated in our message. So, I think it's important to characterize it in that way before we begin. And in January, we announced a series of new and ambitious targets that recognize the need to tackle climate change and promote green finance for the future business prosperity of the UK. Lloyds Banking added that the longevity swap will not change the pension benefits that will be paid to members of the schemes. Q4 2019 ... 2A to fall further as pension contributions increase enabling us to bring capital back toward our target level of circa 13.5%. And as Antonio said at the start, the Board will continue to consider potential excess capital repatriation at each year-end. And looking forward, our 2020 guidance is outlined on the slide at my left. And so we're reluctant, if you like, to start giving guidance which in turn may well be wrong. And question two is on capital distribution. Indeed if you exclude PPI, the statutory RoTE would have been 14.4% as Antonio has said, up just under 1 percentage point from the previous year. In absolute terms, our technology spend increased by 14% year-on-year in 2019 and remains among the top quartile of global peers, while as I highlighted earlier, our cost-to-income ratio continues to improve. As I have said on many occasions, we see this as a key competitive advantage of our business model. With the new majority government now in place and the UK having left the EU, there is now a clearer sense of direction and some signs of gradually improving economic indicators. Moving to taxes. Looking ahead, we will continue to adopt a channel specific strategy in mortgages. And on the business side where the problem was, you have seen a significant pickup in confidence. Rohith Chandra-Rajan -- Bank of America Merrill Lynch -- Analyst. Together all this translated into a resilient underlying profit of GBP7.5 billion. And so in a sense, the question has to depend upon a point of view as to regulatory change. Antonio mentioned it in his speech with respect to the opening up if you like of the individual annuities platform that we have. The latter was particularly impacted by lower fleet volumes in Lex Autolease. We think as Antonio mentioned or we anticipate rather a significant fiscal stimulus, which in turn changes the monetary outlook and that's the reason why our scenario is as it is. Clearly, a cut is not what we envision. So, I've got the kind of sense from the presentation that there's more to come on the cost base. If we were to take a more market aligned scenario into account, we would think that shaves off a couple of basis points in terms of our view on the NIM, which puts us in turn at the lower end of our guidance. Analysts had predicted a profit of £905m on income of £14.2bn. It is structured as an insurance with Scottish Widows as the insurer and corresponding reinsurance with Pacific Life Re as the reinsurer, which means that the schemes’ longevity risk is passed on to Pacific Life Re. Finally, we have a leading franchise across a number of our business lines and have made good progress over the course of the latest strategic plan. And the Group built 86 basis points of free capital. Hi, thank you. The RWA optimization is about improving the returns of our commercial business. And finally before I conclude with 2020 guidance, we'll take a brief look at capital. The net AQR for 2019 was 29 basis points. I won't go into the particularities or the exact maths of the offset. Guy Stebbings -- Exane BNP Paribas -- Analyst. RMB/Morgan Stanley (Pty) Limited (terminated Q3 2019… Rohith Chandra-Rajan, Bank of America. It is something we will continue to concentrate on and it will remain a source of competitive advantage for the Group. Please, last question. My understanding is given the embedded value accounting approach without another step-up in auto enrollment rates, that line goes backwards in 2020. I'll now look at costs on Slide 27. So, it is not involving the relationships that would typically contribute to stress losses if you were to have an adverse macroeconomic environment. That in turn was up 6% in the year. 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