“As rates continue to rise, we would expect deposit betas to continue to increase in customer migration from lower yielding to higher yielding deposit products to also increase.”

In context

“ur deposit-gathering businesses. Compared with the second quarter, Wealth and Investment Management had the largest decline by dollar amount as clients looked for higher yielding alternatives. Declines in our commercial businesses were driven mostly by outflows of non-operational deposits, which can be more price sensitive and are a less stable source of funding. Outflows in Consumer and Small Business Banking were driven by continued customer spending and increased outflows from customers seeking higher yielding products. Our average deposit cost increased 10 basis points from the second quarter to 14 basis points. Pricing has been consistent with our expectations, with deposit costs holding relatively stable in consumer banking and lending, while trending higher across other businesses. As rates continue to rise, we would expect deposit betas to continue to increase in customer migration from lower yielding to higher yielding deposit products to also increase. Turning to net interest income on Slide 7. Third quarter net interest income increased $3.2 billion or 36% from a year ago and $1.9 billion or 19% from the second quarter. The growth from the second quarter was primarily driven by the impact of higher rates, which increased earning asset yields and reduced premium amortization from mortgage-backed securities. We also benefit from higher loan balances and 1 additional day in the quarter. These benefits were partially offset by higher funding costs. In the first 9 months of this year, net interest income was up 19% compared with a year ago. We currently expect full year 2022 net interest income to be approximately 24% higher than a year ago, with fourth quarter 2022 net interest income expected to be approximately $12.9 billion. Turning to”