“And then we expect it to grow again at a faster pace on a sequential basis in the fourth quarter.”

In context

“dditional day of interest, more than offset the impact of lower securities balances. Our net interest yield was 1.86%, improving 17 basis points from Q1 and benefited from the rise in rates, loans growth funded with cash and a 4 basis point improvement from lower premium amortization on securities. Looking forward, we want to provide the following NII guidance, and we just have to provide a few caveats. First, we based the guidance on interest rates and the forward curve materializing, and I'm referring to the curve on July 15th. Second, we assume modest growth in loans and deposits. And third, we assume deposit betas reflecting disciplined pricing to achieve our growth. If those assumptions hold true, we can see NII in Q3 increase by at least $900 million, possibly $1 billion, versus Q2. And then we expect it to grow again at a faster pace on a sequential basis in the fourth quarter. And the way we think about those NII increases, given the expense discipline that we have, is we expect the majority of that to fall to the bottom line for shareholders. Focusing on asset sensitivity for a moment. As you know, we typically disclose our asset sensitivity based on a 100 basis point instantaneous parallel shock in rates above the forward curve. And on that forward basis, asset sensitivity at June 30 was $5 billion of expected NII over the next 12 months. More than 90% of that is driven by short rates. That's down from $5.4 billion at March 31, largely because the benefit of higher rates is now already factored into our baseline of actual NII after we grew the $870 million. Now given that the yield curve is projecting 125 basis points of rate hikes over the next couple of mee”