Thank you, operator. Good morning, everybody. I'm going to take you through the earning presentation which is available on our website. Please refer to the disclaimer at the back of the presentation. Starting on page one, the firm reported record net income of $9.2 billion and EPS of $2.65 and record revenue of nearly $30 billion with a return on tangible common equity of 19%.
The results this quarter was strong and broad-based. The highlights include core loan growth ex-CIB at 5%, with loan trends continuing to progress as expected. Credit performance remained strong across businesses.
We saw record client investment asset in consumer of over $300 billion and record new money flows this quarter, and double digit growth in both card sales and merchant processing volumes, up 10% and 13% respectively. We ranked number one in Global IB fees and gained meaningful share, which are well above 9% this quarter. In the commercial bank we had record growth IB revenue, in asset and wealth management record AUM and client assets and the firm delivered another quarter of strong positive operating leverage.
Turning to page, two and talking into more detail about the third quarter, revenue of $29.9 billion was up $1.3 billion or 5% year-on-year, driven by net interest income which was up $1.1 billion or 8% on higher rates as well as balance sheet growth and mix. Non-interest revenue was up slightly as reported, but excluding fair value gains on the implementation of a new accounting standard last year, NII would have been up 5%, reflecting auto lease growth and strong investment banking fees and while market revenue was lower, there were other items more than offsetting.
Expense of $16.4 billion was up 2% relating to continued investments we are making in technology, real-estate, marketing and front office, partially offset by a reduction in FDIC fee charges of a little over $200 million. Credit remained favorable across both Consumer and Wholesale. Credit costs of $1.5 billion were up $330 million year-on-year driven by changes in wholesale reserves. In Consumer charge-offs were in line with expectations and there were no changes to reserves this quarter. In Wholesale, we had about a $180 million of credit costs, driven by reserve sales on select C&I client downgrades and recall that there was a net release last year related to energy. Once again these downgrades were idiosyncratic. It was a handful of names and across sectors. Net reserve sales of this order of magnitude are extremely modest given the size of our portfolio and we are not seeing signs of deterioration. Moving on to page three, and balance sheet and capitals.
We ended the quarter with a CET1 ratio of 12.1%, up modestly from last quarter, with a benefit of strong earnings and the AOCI gains given rallying rates being partially offset by slightly higher risk-weighted assets. RWA is up primarily due to high accounts cost of credit on trading activity, but notably this quarter being offset by lower loans across businesses on a spot basis. Quarter-on-quarter loans were down in Home Lending as a result of a loan sale transaction in the CIB as a result of a large syndication and in Card and Asset & Wealth Management seasoning. Also in the page total assets are up over $100 billion quarter-on-quarter, basically driven by higher CIB trading assets in part and normalization from lower levels at the end of the year given market conditions. Lower end of period loans are partially offset by treasury balances, including higher security. In the quarter the firm distributed $7.4 billion of canceled shareholders, including $4.7 billion of share repurchases, and our pre-submitted our 2019 CCAR capital plan for the Federal Reserves.
Moving to Consumer & Community Banking on page four, CCB generated net income of $4 billion and an ROE of 30%, with consumers remaining strong and confident. Core loans were up 4% year-on-year, driven by Home Lending and Products both up 6% and business banking up 3%.
Deposits grew 3%, in line with our expectation and we believe we continue to outperform. Client investment assets were up 13% driven by record new money flows reflecting both across physical and digital channels including new invest. We also announced plans to open 90 branches this year in new markets.
Revenues of $13.8 billion was up 9%; Consumer & Business Banking revenue up 15% on higher deposit NII driven by continued margin expansion; Home Lending revenue was down 11%, driven by net serving revenue on both lower operating revenue and MSR, but notably while volumes are down production revenue is up nicely year-on-year on disciplined pricing. And product Merchant Services & Auto revenue was up 9% driven by higher Card NII on loan growth and margin expansion and higher auto lease volumes. Expense of $7.2 billion was up 4%, driven by investments in the business and also lease depreciation, partly offset by expense efficiencies and lower FDIC charges. On Credit, net charge-offs were flat as lower charge-offs in Home Lending and Auto were offset by higher charge-offs in Card on loan growth. Charge-off rates were down year-on-year across lending portfolios. Now turning to page five under Corporate & Investment Bank.
CIB reported net income of $3.3 billion and an ROE of 16% on strong revenue performance of nearly $10 billion. For the quarter IB revenues of $1.7 billion was up 10% year-on-year and outside of an accounting nuance, all of advisory, DTM and total IB fees would have been record for our first quarter. Advisory fees were up 12% in a market that was down, benefiting from a number of larger deals closing this quarter. We ranked Number one in announced dollar volumes and gained nearly a 100 basis points of wallet share. Debt underwriting fees were up 21%, also outperforming a market that was down, driven by large acquisition financing deals and our continued strong lead-left positions in leverage finance. We maintained our number one rank and gained well over 100 basis points of share. And Equity underwriting fees were down 23%, but in the market down more as a combination of the government shutdown, uncertainty around Brexit and residual impact from December volatility weighed on issuance activity across the regions in the first quarter. But already in the second quarter we've seen a major recovery in US IPO volumes back to normalized levels and we are benefiting from our leadership in the technology and Healthcare sectors which again dominate the calendar.
Moving to markets, total revenue was $5.5 billion, down 17% reported was down 10% adjusted to the impact of the accounting standards last year that I referred to. Big picture, on a year-on-year we basis we are challenged by a tough comparison. Backlog in the first quarter of '18 was reported, clients were active and we saw broad based strength in performance which a clear record in equity last year. In contrast this quarter started relatively slowly and overhanging uncertainties kept flying from the slide lines despite and recovered in more favorable environments.
And with that in mind I would characterize the results are solid and a little better than we thought at Investor Day just a few weeks ago, largely due to a better second half of March. And for what it's worth so far, the environment in April, sales general constructed but it's too early to draw any conclusion in terms of P&L. Fixed income markets revenue was down 8% adjusted, driven by lower activity, particularly in rates and in current fees and emerging markets, which normalized following a strong prior year. However we did see relative strengths in credit trading and strong flow, as well as in commodity. Equities revenue was down 13% adjusted, seeking more to the record prior year quarter and this quarter's performance, which was still generally strong across products. Although it got off to a somewhat slower start, cash in particular nearly matched last year's exceptional results.
Treasury services revenue was $1.1 billion, up 3% year-on-year, benefitting from higher balances and payments volume, being partially offset by deposit margin compression. Security services revenue was a $1 billion, down 4% as organic growth was more than offset by fee and deposit margin compression, lower market levels and the impact of the business exist. Of note, deposit margin in both treasury services and security services is impacted by funding basis compression rather than client basis and at the firm wide level there is an offset. Finally, expense of $5.5 billion was down 4% driven by lower performance based compensation and lower FDIC charges, partially offset by continued investments in the business. The comps and revenue ratio for the quarter was 30%.
Moving to commercial banking on page 6. A strong quarter for the commercial bank with net income of $1.1 billion and an ROE of 19%. Revenue of $2.3 billion was up 8% year-on-year on strong investment banking performance and higher deposit NII. Record Gross IB revenue of over $800 million was up more than 40% year-on-year due to several large transactions, and the pipeline continues to stay robust and active. Deposit balances were down 5% year-on-year and 1% sequentially, as migration of non-operating deposits to higher yielding alternatives has decelerated and we believe it's largely behind us. From here we expect deposits to stabilize given the benign rate outlook. Expense of $873 million was up 3% year-on-year as we continue to invest in the business and the banker coverage and in technology. Loans were up 2% year-on-year and flat sequentially. C&I loans were up 2% or up 5% adjusted for the continued runoff in our tax exempt portfolio. We continue to see solid growth across expansion market and specialized industries. CRE loans were up 1% as competition remained elevated and we continued to maintained discipline given where we are in the cycle. Finally credit costs of $90 million was predominantly driven by higher reserves from select client downgrades and net charge offs were only 2 basis points on strong underline performance. Before we go on, I want to address the perceived seat gap between our reported C&I growth statistics and those that we all see in the fed weekly data. If we look across all of our hotel business, we also show strong growth year-on-year at about 8%, but there are three comments I would make; the first is that there can be reasonable noise in the fed weekly data; second, CIB is a big contributor for us, and CIB loan growth this quarter was supported by robust acquisition financing and higher market loans. And third, as previously noted, the definition of C&I for the Feds does not include our tax reform portfolio, which has seen significant year-on-year declines given tax reforms. So while it's true that the Fed base was showing strong growth year-on-year and apples-to-apples ROE, in the domain stream middle market lending phase we are seeing good, mid-single digit demand in line with our expectation. Moving on to assets and Wealth Management on page seven. Assets and Wealth Management reported net income of $661 million with a pretax margin of 24% and an ROE of 25%. Revenue of $3.5 billion for the quarter was flat year-on-year as lower management fees on average market levels, as well as lower growth brokerage activity were offset by higher investment valuation gains. Expense of $2.6 billion was up 3% year-on-year but continued investment in our business, as well other headcount related expenses were partially offset by lower external fees. For the quarter we saw net long-term inflows of $10 billion with strength in fixed income, partially offset by outflows from other asset classes. Additionally we have net liquidity outflows of $5 billion. AUM of $2.1 trillion and overall client assets of $2.9 trillion were both records of 4% driven by cumulative net inflows into liquidity and long term products and with third quarter market performance nearly offsetting fourth quarter declines.
Deposits were up 4% sequentially on seasonality and down 4% year-on-year, reflecting continued migration into investments, although decelerating as we continue to capture the vast majority of inflows. Finally we had record loan balances up 10% with strength in both wholesale and mortgage lending. Moving to page eight in corporate.
Corporate reported a net income of $251 million with net revenue of $425 million, compared to a net loss of over $200 million last year. The increase was driven by higher NII on higher rates, as well as cash deploying opportunities in the treasury. And recall last year we had nearly $250 million of net losses on security sales relative to a small net gain this quarter. Expenses of $211 million is up year-on-year and includes the contributions to the foundation of $100 million this quarter. Concluding on page nine, to wrap up this is a sort of quarter that really showcases the strengths of the firms operating model, benefiting from diversification and scale and our consistent investment agenda. We delivered record revenue and net income in a clean first quarter performance despite some hangover from the fourth quarter. Underlying drives across our businesses continue to propel us forward and in March and coming into April the economic backdrop feels increasingly constructed, client sentiment has recovered and recent global data shows encouraging momentum. Deposits grew is only six weeks behind us, so our guidance for the full hasn't changed. We do remain well positioned and optimistic about the firm's performance. With that operator, we'll take questions.