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On top of this solid base, we're providing additional products and services in collaboration with licensed financialinstitutions, which generates high incremental margins as these revenues are recorded on a net fee basis. And at the same time, we want to work on constructive relationships with licensed financialinstitutions.
Offsetting these improvements was higher interest-bearing liability cost, which increased 263 basis points to 4.04% and reduced net interest margin by 215 basis points. Brian Wenzel -- Executive Vice President, Chief Financial Officer Yeah. Synchrony Financial is an advertising partner of The Ascent, a Motley Fool company.
We believe that by peering offerings and simplifying our feestructure, we're going to incentivize our clients to deepen their relationships with us. We leverage our unique assets and capabilities to serve corporates, financialinstitutions, investors, and individuals with global needs. We maintain a very strong $2.4
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