Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Betsy Graseck of Morgan Stanley.
Betsy Graseck - Morgan Stanley
Good morning, thanks. A couple of questions: One is on the asset sensitivity and if you could just help us understand the duration that you have for the loan book and the securities book and then just walk us through the NIM impact that you are anticipating from the front end of the curve going up versus front end of the curve potentially steeping; I'm just wondering what's more important for you?
Irene Esteves
We are expecting that our NIM is to going to be about flat and not have to do with our expectation that interest rates will not be increasing into the latter part of next year. But we do expect with that increase that our NIM will run substantially and you can see that in our 10-Q...
Betsy Graseck - Morgan Stanley
Disclosure yeah, okay.
Irene Esteves
And what we have said is that our deposit pricing and loan spread improvement was beyond expectations which drove the 11 basis point increase this quarter, the roll off of our derivative portfolio which is about 7 basis points, this quarter it will be about 14 basis points next quarter. But our progress on deposit pricing in loan spreads has offset that.
Betsy Graseck - Morgan Stanley
Okay. And is there anything that you would do as we are approaching the second half next year as interested rates rise, as business off even more of a rate hike in the loan book or the securities book?
Irene Esteves
We are still very asset sensitive compared to our peers, but we think we are well positioned.
Betsy Graseck - Morgan Stanley
And then just other question on as we look out to what normalize earnings should be. Could you give us a sense as to where you think the organization can get to on a normalized ROA?
Irene Esteves
That's a difficult question, as you know; that the various moving parts and what timeframe we are looking at -- it would be difficult for me to answer that.
Betsy Graseck - Morgan Stanley
Okay. So I guess different way of asking the question is we hear a lot about what's going on with regard to pricing for different types of products and particular in the consumer space on insufficient funds and there is other kinds of regulatory changes that are going to be coming with capital, et cetera.
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