“I don't think we'll get back to where we were pre-pandemic but I would expect over time that, that will come down from today's level. So that would also be a tailwind to NIM.”

In context

“h related reserves. Sanjay Sakhrani: NIM? Andrew Young: NIM, sure. There is a lot of factors at play with NIM and maybe I'll do the same housekeeping with NIM. Just to remind everyone that in the first quarter with one fewer day, we're going to see roughly a 7 basis points headwind there. But let me then also enumerate here the puts and takes to NIM. On the tailwind side, growth in card balances as percentage of the balance sheet and even within those balances possibly a higher revolver rate. Certainly a tailwind, and that's something we've seen over the last couple of quarters. And then also a lower cash balance, we've talked about this before, but cash balances today in total of $43 billion. I think the number is with about $37 billion at the Fed is quite a bit higher than pre-pandemic. I don't think we'll get back to where we were pre-pandemic but I would expect over time that, that will come down from today's level. So that would also be a tailwind to NIM. On the headwind side, even though the Fed has stopped moving up in July, we continue to see some deposit product rotation, and it creates a bit of upward pressure to the deposit betas. And then even if the Fed starts decreasing rates, we're going to see the assets reprice more quickly than the deposits. And the competitive environment in the backdrop of QT will potentially have an impact on betas on a downward cycle. So that would create a bit of marketing pressure. And then a couple of other things that I would just highlight as potential headwinds, the uncertainty around potential regulatory changes that could impact interest income as well as just the path of credit. You've seen suppression go up over the last few quarters, as losses go up, so that also creates some pressure to NIM. So”