“So as we look ahead, continued normalization of cash, continued growth in revolving card balances, those are the things that would be tailwinds to NIM, but movements in the other direction, things like sustained higher than normal payment rates or reduction in card yield would be headwinds.”

In context

“ith seasonal trends, but that aids late fees. They tend to have a fourth -- a third thing of seasonally higher revolve rates and then day count in the quarter are kind of the drivers of card yield. So when I think about how those play out, you can figure out which things are kind of seasonal to the quarter versus which things are driven by more macroeconomic factors versus what is sort of underlying trends. I'll pull up though and just give a corporate view of NIM because you touched on some of the other dimensions that are really playing through more corporately, which is the reduction of cash at the total company level and having that be replaced by card growth. And then those factors, coupled with the higher yield in card that I just described is really what benefited this quarter. So as we look ahead, continued normalization of cash, continued growth in revolving card balances, those are the things that would be tailwinds to NIM, but movements in the other direction, things like sustained higher than normal payment rates or reduction in card yield would be headwinds. So we'll just have to see how those things sort of net against one another. Operator: We'll take our next question from John Hecht with Jefferies. John Hecht: Sanjay actually just asked my NIM question. So I have a question, maybe diving deeper into the growth opportunities. Are you seeing -- is there a better arbitrage or better competitive opportunities in revolver versus transactor? Or is it subprime versus prime? And maybe answer that both card and auto. Richard Fairbank: Okay, John, I don't see a particular segment that really stands out. A strategic thing that we've been really leaning into for a number of years at Capital One is a continued migration toward the transactor side of the business, not running away from the other one, but differentially really investing and enhancing”