Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 60: 
Earnings Summary

The following table outlines changes in our consolidated statements of income (dollars in millions):|    |                                                       |                                  |        |                                  |        |                                  |        |       |    |         |    |      |         |         |      |    |      |    |         |      |    |
|---:|:------------------------------------------------------|:---------------------------------|:-------|:---------------------------------|:-------|:---------------------------------|:-------|:------|:---|:--------|:---|:-----|:--------|:--------|:-----|:---|:-----|:---|:--------|:-----|:---|
|  1 |                                                       | For the Years Ended December 31, |        | 2023 vs. 2022Increase (Decrease) |        | 2022 vs. 2021Increase (Decrease) |        |       |    |         |    |      |         |         |      |    |      |    |         |      |    |
|  2 |                                                       | 2023                             |        | 2022                             |        | 2021                             |        | $     | %  |         | $  | %    |         |         |      |    |      |    |         |      |    |
|  3 | Interest income                                       | $                                | 17,845 |                                  |        | $                                | 12,864 |       | $  | 10,651  |    | $    | 4,981   |         | 39   | %  |      | $  | 2,213   | 21   | %  |
|  4 | Interest expense                                      | 4,746                            |        |                                  | 1,865  |                                  |        | 1,134 |    | 2,881   |    | 154  | %       | 731     |      |    | 64   | %  |         |      |    |
|  5 | Net interest income                                   | 13,099                           |        |                                  | 10,999 |                                  |        | 9,517 |    | 2,100   |    | 19   | %       | 1,482   |      |    | 16   | %  |         |      |    |
|  6 | Provision for credit losses                           | 6,018                            |        |                                  | 2,359  |                                  |        | 218   |    | 3,659   |    | 155  | %       | 2,141   |      |    | 982  | %  |         |      |    |
|  7 | Net interest income after provision for credit losses | 7,081                            |        |                                  | 8,640  |                                  |        | 9,299 |    | (1,559) |    | (18) | %       | (659)   |      |    | (7)  | %  |         |      |    |
|  8 | Other income                                          | 2,761                            |        |                                  | 2,294  |                                  |        | 2,534 |    | 467     |    | 20   | %       | (240)   |      |    | (9)  | %  |         |      |    |
|  9 | Other expense                                         | 6,016                            |        |                                  | 5,216  |                                  |        | 4,805 |    | 800     |    | 15   | %       | 411     |      |    | 9    | %  |         |      |    |
| 10 | Income before income taxes                            | 3,826                            |        |                                  | 5,718  |                                  |        | 7,028 |    | (1,892) |    | (33) | %       | (1,310) |      |    | (19) | %  |         |      |    |
| 11 | Income tax expense                                    | 886                              |        |                                  | 1,344  |                                  |        | 1,606 |    | (458)   |    | (34) | %       | (262)   |      |    | (16) | %  |         |      |    |
| 12 | Net income                                            | $                                | 2,940  |                                  |        | $                                | 4,374  |       | $  | 5,422   |    | $    | (1,434) |         | (33) | %  |      | $  | (1,048) | (19) | %  |
| 13 | Net income allocated to common stockholders           | $                                | 2,859  |                                  |        | $                                | 4,286  |       | $  | 5,323   |    | $    | (1,427) |         | (33) | %  |      | $  | (1,037) | (19) | %  |
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, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 61: 
Net Interest Income

The tables that follow this section have been provided to supplement the discussion below and provide further analysis of net interest income, net interest margin and the impact of rate and volume changes on net interest income. Net interest income represents the difference between interest income earned on our interest-earning assets and the interest expense incurred to finance those assets. We analyze net interest income in total by calculating net interest margin (net interest income as a percentage of average total loan receivables) and net yield on interest-earning assets (net interest income as a percentage of average total interest-earning assets). We also separately consider the impact of the level of loan receivables and the related interest yield and the impact of the cost of funds related to each of our funding sources, along with the income generated by our liquidity portfolio, on net interest income.
Our interest-earning assets consist of: (i) cash and cash equivalents primarily related to amounts on deposit with the Federal Reserve Bank of Philadelphia, (ii) restricted cash, (iii) other short-term investments, (iv) investment securities and (v) loan receivables. Our interest-bearing liabilities consist primarily of deposits, both direct-to-consumer and brokered, and long-term borrowings, including amounts owed to securitization investors. The following factors influence net interest income:
•The level and composition of loan receivables, including the proportion of credit card loans to other loans, as well as the proportion of loan receivables bearing interest at promotional rates as compared to standard rates;
•The credit performance of our loans, particularly with regard to charge-offs of finance charges, which reduce interest income;
•The terms of long-term borrowings and certificates of deposit upon initial offering, including maturity and interest rate;
•The interest rates necessary to attract and maintain direct-to-consumer deposits;
•The level and composition of other interest-earning assets, including our liquidity portfolio, and interest-bearing liabilities;
•Changes in the interest rate environment, including the levels of interest rates and the relationships among interest rate indices, such as the prime rate, the federal funds rate, the interest rate on reserve balances, LIBOR and SOFR; and
•The effectiveness of interest rate swaps in our interest rate risk management program.
Net interest income increased for the year ended December 31, 2023, as compared to the year ended December 31, 2022, primarily driven by a higher yield on loans and a higher average level of loan receivables, partially offset by higher funding costs. Interest income increased compared to the prior year primarily due to higher market rates and a higher average level of loan receivables. Interest expense increased compared to the prior year primarily due to higher funding costs driven by higher market rates and a larger funding base.
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, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 62: 
Average Balance Sheet Analysis


(dollars in millions)
|    |                                               |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
|---:|:----------------------------------------------|:---------------------------------|:--------|:-----------|:------|:---------|:-------|:----------------|:--------|:-----------|:--------|:---------|:---|:----------------|:-------|:-----------|:-------|:---------|:--------|:--------|:----|:---|:------|:---|:-------|:-------|:-----|:---|:---|:----|
|  1 |                                               | For the Years Ended December 31, |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
|  2 |                                               | 2023                             |         | 2022       |       | 2021     |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
|  3 |                                               | Average Balance                  |         | Yield/Rate |       | Interest |        | Average Balance |         | Yield/Rate |         | Interest |    | Average Balance |        | Yield/Rate |        | Interest |         |         |     |    |       |    |        |        |      |    |    |     |
|  4 | Assets                                        |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
|  5 | Interest-earning assets                       |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
|  6 | Cash and cash equivalents                     | $                                | 8,192   |            |       | 5.17     | %      |                 | $       | 423        |         |          | $  | 9,279           |        |            | 1.89   | %        |         | $       | 175 |    |       | $  | 14,236 |        | 0.13 | %  | $  | 18  |
|  7 | Restricted cash                               | 250                              |         |            | 7.80  | %        |        | 20              |         |            | 515     |          |    | 1.48            | %      |            | 8      |          |         | 695     |     |    | 0.03  | %  |        | NM     |      |    |    |     |
|  8 | Other short-term investments                  | -                                |         |            | -     |          |        | -               |         |            | -       |          |    | -               |        |            | -      |          |         | 176     |     |    | 0.12  | %  |        | NM     |      |    |    |     |
|  9 | Investment securities                         | 12,938                           |         |            | 3.47  | %        |        | 449             |         |            | 6,988   |          |    | 2.57            | %      |            | 179    |          |         | 8,713   |     |    | 2.09  | %  |        | 182    |      |    |    |     |
| 10 | Loan receivables(1)                           |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 11 | Credit card loans(2)(3)                       | 94,205                           |         |            | 15.33 | %        |        | 14,438          |         |            | 79,243  |          |    | 13.42           | %      |            | 10,632 |          |         | 69,365  |     |    | 12.57 | %  |        | 8,717  |      |    |    |     |
| 12 | Private student loans                         | 10,382                           |         |            | 9.95  | %        |        | 1,033           |         |            | 10,240  |          |    | 8.11            | %      |            | 831    |          |         | 10,057  |     |    | 7.38  | %  |        | 742    |      |    |    |     |
| 13 | Personal loans                                | 9,011                            |         |            | 12.83 | %        |        | 1,156           |         |            | 7,295   |          |    | 11.95           | %      |            | 872    |          |         | 6,945   |     |    | 12.64 | %  |        | 878    |      |    |    |     |
| 14 | Other                                         | 4,713                            |         |            | 6.92  | %        |        | 326             |         |            | 2,895   |          |    | 5.77            | %      |            | 167    |          |         | 2,054   |     |    | 5.57  | %  |        | 114    |      |    |    |     |
| 15 | Total loan receivables                        | 118,311                          |         |            | 14.33 | %        |        | 16,953          |         |            | 99,673  |          |    | 12.54           | %      |            | 12,502 |          |         | 88,421  |     |    | 11.82 | %  |        | 10,451 |      |    |    |     |
| 16 | Total interest-earning assets                 | 139,691                          |         |            | 12.77 | %        |        | 17,845          |         |            | 116,455 |          |    | 11.05           | %      |            | 12,864 |          |         | 112,241 |     |    | 9.49  | %  |        | 10,651 |      |    |    |     |
| 17 | Allowance for credit losses                   | (7,936)                          |         |            |       |          |        |                 | (6,820) |            |         |          |    |                 |        | (7,351)    |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 18 | Other assets                                  | 6,938                            |         |            |       |          |        |                 | 6,070   |            |         |          |    |                 |        | 6,237      |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 19 | Total assets(4)                               | $                                | 138,693 |            |       |          |        |                 |         | $          | 115,705 |          |    |                 |        |            |        | $        | 111,127 |         |     |    |       |    |        |        |      |    |    |     |
| 20 | Liabilities and Stockholders' Equity          |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 21 | Interest-bearing liabilities                  |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 22 | Interest-bearing deposits                     |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 23 | Time deposits                                 | $                                | 38,220  |            |       | 3.89     | %      |                 | $       | 1,485      |         |          | $  | 23,988          |        |            | 2.02   | %        |         | $       | 484 |    |       | $  | 23,928 |        | 1.84 | %  | $  | 440 |
| 24 | Money market deposits                         | 8,143                            |         |            | 4.16  | %        |        | 339             |         |            | 8,453   |          |    | 1.67            | %      |            | 141    |          |         | 8,142   |     |    | 0.53  | %  |        | 43     |      |    |    |     |
| 25 | Other interest-bearing savings deposits       | 51,366                           |         |            | 4.01  | %        |        | 2,062           |         |            | 44,276  |          |    | 1.43            | %      |            | 632    |          |         | 40,912  |     |    | 0.43  | %  |        | 178    |      |    |    |     |
| 26 | Total interest-bearing deposits               | 97,729                           |         |            | 3.98  | %        |        | 3,886           |         |            | 76,717  |          |    | 1.64            | %      |            | 1,257  |          |         | 72,982  |     |    | 0.91  | %  |        | 661    |      |    |    |     |
| 27 | Borrowings                                    |                                  |         |            |       |          |        |                 |         |            |         |          |    |                 |        |            |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 28 | Short-term borrowings                         | 44                               |         |            | 10.21 | %        |        | 5               |         |            | 225     |          |    | 0.70            | %      |            | 2      |          |         | 72      |     |    | 0.18  | %  |        | NM     |      |    |    |     |
| 29 | Securitized borrowings(5)(6)(7)               | 10,528                           |         |            | 4.30  | %        |        | 453             |         |            | 9,060   |          |    | 2.41            | %      |            | 219    |          |         | 9,627   |     |    | 1.06  | %  |        | 102    |      |    |    |     |
| 30 | Other long-term borrowings(6)(7)(8)           | 9,090                            |         |            | 4.43  | %        |        | 402             |         |            | 9,334   |          |    | 4.15            | %      |            | 387    |          |         | 9,888   |     |    | 3.75  | %  |        | 371    |      |    |    |     |
| 31 | Total borrowings                              | 19,662                           |         |            | 4.37  | %        |        | 860             |         |            | 18,619  |          |    | 3.26            | %      |            | 608    |          |         | 19,587  |     |    | 2.42  | %  |        | 473    |      |    |    |     |
| 32 | Total interest-bearing liabilities            | 117,391                          |         |            | 4.04  | %        |        | 4,746           |         |            | 95,336  |          |    | 1.96            | %      |            | 1,865  |          |         | 92,569  |     |    | 1.23  | %  |        | 1,134  |      |    |    |     |
| 33 | Other liabilities and stockholders' equity(9) | 21,302                           |         |            |       |          |        |                 | 20,369  |            |         |          |    |                 |        | 18,558     |        |          |         |         |     |    |       |    |        |        |      |    |    |     |
| 34 | Total liabilities and stockholders' equity    | $                                | 138,693 |            |       |          |        |                 |         | $          | 115,705 |          |    |                 |        |            |        | $        | 111,127 |         |     |    |       |    |        |        |      |    |    |     |
| 35 | Net interest income                           |                                  |         |            |       | $        | 13,099 |                 |         |            |         |          |    | $               | 10,999 |            |        |          |         |         |     | $  | 9,517 |    |        |        |      |    |    |     |
| 36 | Net interest margin(10)                       |                                  |         | 11.07      | %     |          |        |                 |         |            | 11.04   | %        |    |                 |        |            |        | 10.76    | %       |         |     |    |       |    |        |        |      |    |    |     |
| 37 | Net yield on interest-earning assets(11)      |                                  |         | 9.38       | %     |          |        |                 |         |            | 9.45    | %        |    |                 |        |            |        | 8.48     | %       |         |     |    |       |    |        |        |      |    |    |     |
| 38 | Interest rate spread(12)                      |                                  |         | 8.73       | %     |          |        |                 |         |            | 9.09    | %        |    |                 |        |            |        | 8.26     | %       |         |     |    |       |    |        |        |      |    |    |     |
(1)Average balances of loan receivables and yield calculations include non-accruing loans. If the non-accruing loan balances were excluded, there would not be a material impact on the amounts reported above. 
(2)Interest income on credit card loans includes $468 million, $365 million and $295 million of amortization of balance transfer fees for the years ended December 31, 2023, 2022 and 2021, respectively.
(3)Includes the impact of interest rate swap agreements used to change a portion of floating-rate assets to fixed-rate assets for the years ended December 31, 2023, 2022 and 2021.
(4)The return on average assets, based on net income, was 2.12%, 3.80% and 4.90% for the years ended December 31, 2023, 2022 and 2021, respectively.
(5)Includes the impact of one terminated derivative formerly designated as a cash flow hedge for the years ended December 31, 2023, 2022 and 2021.
(6)Includes the impact of interest rate swap agreements used to change a portion of fixed-rate funding to floating-rate funding for the years ended December 31, 2023, 2022 and 2021.
(7)Includes the impact of terminated derivatives formerly designated as fair value hedges for the years ended December 31, 2023, 2022 and 2021.
(8)Includes the impact of interest rate swap agreements used to change a portion of floating-rate funding to fixed-rate funding for the years ended December 31, 2023 and 2022.
(9)The return on average stockholders' equity, based on net income, was 21.00%, 32.00% and 43.12% for the years ended December 31, 2023, 2022 and 2021, respectively.
(10)Net interest margin represents net interest income as a percentage of average total loan receivables.
(11)Net yield on interest-earning assets represents net interest income as a percentage of average total interest-earning assets.
(12)Interest rate spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities.
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Question: How did Discover’s Net Interest Margin for 2023 compare to the previous year?
Answer: In 2023, Discover’s Net Interest Margin (NIM), representing net interest income as a percentage of average total loan receivables, increased to 11.07% from 11.04% in 2022, despite a disproportionate rise in interest expenses.