“Going forward, we would expect the balance on the investment portfolio to remain relatively flat to the current level and for the reinvestment benefit from quarterly securities runoff to be approximately 6 basis points to 8 basis points on average based on current rates.”

In context

“crease of $3.6 billion or 1.0% linked-quarter. The increase was driven by higher credit card loans from high spend -- higher spend volumes and increased commercial loans from growth in corporate banking. Loan growth this quarter was partially offset by lower commercial real estate and total other retail loans. With elevated deposit levels, we opportunistically increased the size of our investment securities portfolio with short-dated high-quality securities to better optimize cash levels. As a result, the ending balance on our investment portfolio was $168 billion as of June 30. Actions taken on the investment portfolio this quarter, together with approximately $3 billion of securities runoff resulted in an average yield increase to 3.15%, a 19 basis point increase from the prior quarter. Going forward, we would expect the balance on the investment portfolio to remain relatively flat to the current level and for the reinvestment benefit from quarterly securities runoff to be approximately 6 basis points to 8 basis points on average based on current rates. Slide 8 highlights our credit quality performance. Asset quality metrics continue to develop in line with expectations and we remain appropriately reserved for potential adverse economic conditions. In the second quarter, delinquencies were flat sequentially. Non-performing assets increased approximately 3.7% linked quarter, reflecting a slower pace of change. The ratio of non-performing assets to loans and other real estate was 49 basis points at June 30th, compared with 48 basis points at March 31st and 29 basis points a year ago. Our second quarter net charge-off ratio of 58 basis points increased 5 basis points from the first quarter, in line with our expectations and we continue to expect our net charge-off ratio to approach 60 basis points in the second half of this year. Our allowa”