“Outside of quarterly day count, the NIM from here will largely be a function of the changes in our balance sheet mix, interest rates and the impacts of competition on loan yields and deposit betas.”

In context

“sing rates drove a market value decline of $4.3 billion, with the remaining decline due to our continued efforts to reduce our investment portfolio from the elevated levels during the pandemic. Turning to page seven, I will cover our net interest margin. Our first quarter net interest margin was 6.49%, 50 basis points higher than the year ago quarter and 11 basis points lower than Q4. Relative to a year ago, the increase in NIM is largely driven by a balance sheet shift, as we deployed excess cash to loans. The linked-quarter decrease in NIM was driven by having two fewer days in the first quarter. Normalizing for day count effect, higher yields in both our Card business and in our investment portfolio were roughly offset by the impact of hedges on the balance sheet and lower auto yields. Outside of quarterly day count, the NIM from here will largely be a function of the changes in our balance sheet mix, interest rates and the impacts of competition on loan yields and deposit betas. Turning to slide eight, I will end by discussing our capital position. Our common equity Tier 1 capital ratio was 12.7% at the end of the first quarter, down 40 basis points from the prior quarter. Net income in the quarter was more than offset by share repurchases, the impact of the CECL transition and higher risk weighted assets. Recall that the phasing of CECL transition relief began on January 1st. We recognize 25% of our $2.4 billion total after-tax phasing amount in the first quarter. Also in the quarter, we repurchased $2.4 billion of common stock as part of the $5 billion share authorization that our Board approved in January. Earlier this month, in addition to approving our CCAR 2022 submission and our capital plan, our Board of Directors also approved the authorization of up to”