“We continue to expect net interest margin expansion in the medium term.”

In context

“book value per share increased 12.7% on a year-over-year basis. Slide 10 provides key performance metrics. As the slide illustrates, each of our key profitability and efficiency ratios improved this quarter, highlighted by a return on average assets of 1.17% and a return on tangible common equity of 18.6%. Over the last two years, we have increased our tangible common equity approximately 30% while continuing to deliver a high teens ROTCE on steadily improving earnings growth. Notably, we also delivered an improved efficiency ratio of 57.2% and a net interest margin of 2.75% this quarter. Our sequential margin expansion of nine basis points was driven by fixed asset repricing, strong card and commercial loan growth, as well as strategic balance sheet actions we took in the second quarter. We continue to expect net interest margin expansion in the medium term. Slide 11 provides a balance sheet summary. Total average deposits increased 1.8% linked quarter to $512 billion as we continued to emphasize growth in relationship-based deposits. Our percentage of non-interest-bearing to total deposits remained stable at approximately 16%. Average loans totaled $379 billion, up 0.2% from the prior quarter. Adjusting for loan sales last quarter, our underlying growth rate was 1% linked quarter and 2.8% on a year-over-year basis. Loan yields increased to 5.97%, an eight basis point improvement linked quarter. As we continue to strategically remix our balance sheet with a greater proportion of commercial and credit card loan balances, increased both commercial and credit card loans 9.5% and 4.3% respectively on a year-over-year basis. Given the current indu”