Thank you, and good morning, everyone.
Starting on Page 1, the firm reported net income of $14.6 billion, EPS of $5.07 on revenue of $46 billion with an ROTCE of 21%. These results included a First Republic related gain of $588 million, which was previously disclosed in the 10-K. On Page 2, we have more on our first quarter results. The firm reported revenue of $46 billion, up $3.5 billion or 8% year-on-year.
NII ex. Markets was down $430 million or 2%, driven by the impact of lower rates and deposit margin compression as well as lower deposit balances in CCB. This was predominantly offset by higher card revolving balances, the impact of securities activity, including from prior quarters, as well as higher wholesale deposits. NIR ex. Markets was up $2.2 billion or 20%, and excluding the significant item I just mentioned was up 14%, largely on higher asset management fees, lower net investment securities losses and higher investment banking fees. And Markets revenue was up $1.7 billion or 21%. Expenses of $23.6 billion were up $840 million or 4%, largely driven by compensation, including growth in employees across the front office and technology, higher brokerage and distribution fees, as well as marketing and legal expense. The quarter also reflected a $323 million release of the FDIC special assessment accrual compared with a $725 million increase in the prior quarter. Credit costs were $3.3 billion, with net charge-offs of $2.3 billion and a net reserve build of $973 million We have more details on the reserve build on Page 3. With this quarter's reserve build, firm's total allowance for credit losses is $27.6 billion. Let's take a second to add a little bit of context to our thinking surrounding this number in light of the unique environment of the last several weeks. Our first quarter allowance is anchored on the relatively benign central case economic outlook, which was in effect at the end of the quarter. But in light of the significantly elevated risks and uncertainties at the time, we increased the probability weightings associated with the downside scenarios in our CECL framework. As a result, the weighted average unemployment rate embedded in our allowance is 5.8%, up from 5.5% last quarter, driving the $973 million increase in the allowance. So, with that in mind, the consumer build of $441 million was driven by changes in the weighted average macroeconomic outlook. The wholesale build of $549 million was predominantly driven by credit quality changes on certain exposures and net lending activity as well as changes in the outlook. In addition, it's important to note that the increase in the allowance is not, to any meaningful degree, driven by deterioration in the actual credit performance in the portfolio, which remains largely in line with expectations.
With that, let's go to balance sheet and capital on Page 4. We ended the quarter with a CET1 ratio of 15.4%, down 30 basis points versus the prior quarter as net income and OCI gains were more than offset by capital distributions and higher RWA. This quarter, the firm distributed $11 billion of capital to shareholders, which reflects $7.1 billion of net common share repurchases and the payment of our common dividend, which has been increased to $1.40 per share. This quarter's higher RWA is primarily driven by overall business growth in Markets and some seasonal effects.
Now, let's go to our businesses, starting with CCB on Page 5. Consumers and small businesses remain financially healthy. Despite the recent downtrends in consumer and small business sentiment based on our data, spend, cash buffers, payment to income ratios and credit utilization are all in line with our expectations.
Moving to the financial results, CCB reported net income of $4.4 billion on revenue of $18.3 billion, which was up 4% year-on-year. In Banking & Wealth Management, revenue was down 1% year-on-year, driven by lower deposit NII, predominantly offset by growth in Wealth Management revenue. Average deposits were down 2% year-on-year and flat sequentially, while end-of-period deposits were up 2% quarter-on-quarter. Client investment assets were up 7% year-on-year, predominantly driven by market performance and we continue to see strong flows into managed products. In Home Lending, revenue was up 2% year-on-year and originations were up 42% year-on-year off a small base in a slowly growing market.
Turning to Card Services & Auto, revenue was up 12% year-on-year, predominantly driven by Card NII and higher revolving balances, as well as higher operating lease income in Auto. Card outstandings were up 10% due to strong account acquisition. And in Auto, originations were $10.7 billion, up 20%, driven by higher lease volume. Expenses of $9.9 billion were up 6% year-on-year, predominantly driven by growth in marketing and technology, higher field compensation, as well as higher auto lease depreciation.
Credit costs were $2.6 billion, reflecting net charge-offs of $2.2 billion, up $275 million year-on-year, predominantly driven by the seasoning of recent vintages in Card with delinquencies and losses in line with expectations. The net reserve build was $475 million, of which $400 million was in Card. Next, the Commercial & Investment Bank on Page 6. CIB reported net income of $6.9 billion on revenue of $19.7 billion, which is up 12% year-on-year.
IB fees were up 12% year-on-year and we ranked #1 with wallet share of 9%. In advisory, fees were up 16%, benefiting from the closing of deals announced in 2024. Debt underwriting fees were up 16%, primarily driven by elevated refinancing activity, particularly in leveraged finance. In equity underwriting, fees were down 9% year-on-year, reflecting challenging market conditions. In light of market conditions, we are adopting a cautious stance on the investment banking outlook. While client engagement and dialogue is quite elevated, both the conversion of the existing pipeline and origination of new activity will require a reduction in the current levels of uncertainty. Payments revenue was up 3% year-on-year, excluding equity investments, driven by higher deposit balances and fee growth, predominantly offset by deposit margin compression. Lending revenue was up 11% year-on-year, driven by lower losses on hedges, partially offset by lower balances.
Moving to Markets, total revenue was up 21% year-on-year, reflecting record performance in equities. Fixed Income was up 8% with better performance in rates and commodities against a relatively weak prior-year quarter. Equities was up 48% as the business performed well during a period of elevated volatility supported by higher client activity and strong monetization of flows, particularly in derivatives.
Securities Services revenue was up 7% year-on-year, driven by fee growth and higher deposit balances, partially offset by deposit margin compression. Expenses of $9.8 billion were up 13% year-on-year, predominantly driven by higher compensation, legal and brokerage expense. Average Banking & Payments loans were down 3% year-on-year and down 1% sequentially as we continue to observe payoff activity and limited demand for new loans across client segments. Average client deposits were up 11% year-on-year and up 2% sequentially, reflecting increased activity across Payments and Securities Services.
Finally, credit costs were $705 million, largely driven by the net reserve build. Then, to complete our lines of business, Asset & Wealth Management on Page 7. AWM reported net income of $1.6 billion, with pre-tax margin of 35%. Revenue of $5.7 billion was up 12% year-on-year, predominantly driven by growth in management fees on strong net inflows and higher average market levels, as well as higher brokerage activity and higher deposit balances. Expenses of $3.7 billion were up 7% year-on-year, largely driven by higher compensation, including revenue-related compensation and continued growth in our private banking advisor teams as well as higher distribution fees. Long-term net inflows were $54 billion for the quarter, primarily driven by equity and fixed income. In liquidity, we saw net inflows of $36 billion. AUM of $4.1 trillion and client assets of $6 trillion were both up 15% year-on-year, driven by continued net inflows and higher market levels. And finally, loans were up 5% year-on-year and flat quarter-on-quarter, and deposits were up 7% year-on-year and down 2% sequentially.
Turning to Corporate on Page 8. Corporate reported net income of $1.7 billion. Revenue of $2.3 billion was up $102 million year-on-year. NII of $1.7 billion was down $826 million year-on-year. NIR was a net gain of $653 million compared with a net loss of $275 million in the prior year. Current quarter included the significant item I mentioned upfront, while the prior-year quarter included net securities losses of $336 million. Expenses of $185 million were down $1.1 billion year-on-year, driven by the changes to the FDIC special assessment accruals I mentioned upfront.
To finish up, let's turn to the full year outlook on Page 9. We continue to expect NII ex. Markets to be approximately $90 billion. The firm-wide NII outlook has increased to about $94.5 billion, reflecting an increase in Markets NII, which you should think of as being primarily offset in NIR. Our adjusted expense outlook continues to be about $95 billion. And on Credit, we expect the card net charge-off rate to be in line with our previous guidance of approximately 3.6%. So, to wrap up, we're pleased with another quarter of strong operating performance, but of course, the focus right now is on the future, which is obviously unusually uncertain.
But no matter what outcomes eventually materialize, we are eager to do our part to continue to support our clients, the markets and the broader economy, and we believe the banking system will be a source of strength in this dynamic environment. And with that, let's open the line for Q&A.