“Looking towards the rest of the year, we do not expect NII to expand.”

In context

“quarter, primarily reflecting lower market levels. Transactional revenues were $869 million. Excluding the impact of DCP, revenues declined 2% year-over-year, reflective of lower client activity for most of the quarter. Fee-based flows were $22.7 billion. Bank lending balances grew by $1.1 billion, driven by mortgages, offsetting paydowns in securities-based lending. Total deposits of $343 billion were up slightly quarter-over-quarter. Sweep outflows moderated during May and June compared to April, which included seasonal tax outflows. The recent month's trends are encouraging, but it remains too early to be declarative. Net interest income of $2.2 billion was virtually flat versus the prior quarter. The impact of lower sweep balances and higher funding costs were offset by higher rates. Looking towards the rest of the year, we do not expect NII to expand. Results will be a function of our deposit mix and the trajectory of various rates. Similar to the institutional business, retail sentiment improved as the quarter progressed. For the first time since the beginning of the year, June saw positive monthly flows into equity markets from advisor-led sweep balances. We are encouraged by this more recent activity and remain well positioned to support ongoing asset growth and our clients through market cycles. Turning to Investment Management. Revenues of $1.3 billion declined 9% from the prior second quarter, primarily reflecting lower performance-based income and the cumulative impact of lower asset levels over the course of the year, commensurate with the market environment. Asset management and related fees were $1.3 billion, declining 3% yea”