Thank you, Jamie. Okay, so now on to the presentation, which as always is available on our website, and we ask that you please refer to the disclaimer at the back of the presentation. Starting on Page 1, the firm reported record net income of $9.7 billion and EPS of $2.82 on revenue of $29.6 billion with a return on tangible common equity of 20%. Included in these results are tax benefits of $768 million related to the resolution of a number of tax audits. Adjusting for this as well as a few other notable items that largely offset, we delivered an 18% ROTCE this quarter. Underlying performance for the quarter was strong with highlights including client investment assets in consumer banking up 16%, largely driven by net new money flows; in card, 11% growth in sales and 8% growth in outstanding; number one in global IBCs year-to-date, gaining share across all products and regions; steady results in the commercial bank with net income of $1 billion while continuing to invest in the business; and in asset and wealth management, record long-term inflows, AUM and client assets. Overall for the firm, total loan growth was 2% year-on-year but down 1% sequentially. It's important to note here that these variances include the impact of loan sales in home lending as we continue to optimize our usage of capital and liquidity across the firm. Credit performance remained strong across businesses and we delivered another quarter of positive operating leverage.
Now on to Page 2 and some more detail about our second quarter results. Revenue of $29.6 billion was up $1.2 billion or 4% year-on-year as net interest income was up approximately $900 million or 7% on balance sheet growth and mix, as well as higher rates. Non-interest revenue was up approximately $300 million year-on-year, largely driven by the absence of the card rewards liability adjustment we took in the prior year. Excluding that variance and the other offsetting notable items I mentioned, non-interest revenue was about flat with strong performance in consumer across auto lease, home lending production, and consumer and business banking, offset by lower markets revenue and IBCs as previously guided. Expenses of $16.3 billion were up 2% related to continued investments in our businesses partially offset by a reduction in FDIC charges of approximately $250 million.
Credit remains favorable with credit costs of $1.1 billion down 5% year-on-year. In consumer, credit costs of $1.1 billion were flat as higher net charge-offs were offset by net reserve releases. And in wholesale, credit performance remained favorable with a net charge-off rate of 8 basis points, which was fully reserved for in prior quarters. Once again, we do not see any signs of broad-based deterioration across our portfolios, both consumer and wholesale.
Now on to balance sheet and capital on Page 3. We ended the second quarter with a CET-1 ratio of 12.2%, up more than 10 basis points versus last quarter. In the quarter, the firm distributed $7.5 billion of capital to shareholders, and as you know, the Fed did not object to our 2019 CCAR capital plan. We are pleased to have significant flexibility with gross repurchase capacity of up to $29.4 billion over the next four quarters, and the board announced its intention to increase the common dividend to $0.90 per share, effective in the third quarter. Now on to Page 4 and consumer and community banking. CCB generated net income of $4.2 billion and an ROE of 31%. Loans were down slightly year-on-year driven by home lending down 7%, reflecting the loan sales I just mentioned; however, card loan growth was healthy, up 8%. Business banking loans were up 2%, and auto loans and leases were flat. We saw strong deposit and investment growth year-on-year with deposits up 3% and client investment assets up 16%, growing across both physical and digital channels. Card sales were up 11% as growth remained strong across key products. Across the franchise, active mobile users were up 12% year-on-year given continued engagement in our new features. For example, customers have opened over 2 million checking and savings accounts digitally, activated over 60 million Chase offers, and our enrollment in credit journey now exceeds 18 million. Revenue of $13.8 billion was up 11%. This increase included two notable items that largely offset.
First, the current quarter included a negative MSR adjustment in home lending driven by updates to our model inputs; and in the prior year, as I mentioned, we had a rewards liability adjustment in cards of approximately $330 million. Consumer and business banking was up 11% on higher deposit NII, driven by margin expansion. Home lending was down 17%, although excluding the MSR adjustment I just mentioned, revenues would have been up 4% driven by higher net production revenue on better margins and higher volumes, largely offset by lower NII on spread compression and lower balances. In cards, merchant services and auto was up 18%. Excluding the previously noted rewards liability adjustment, revenue was up 11% driven by higher card NII on loan growth and margin expansion and the impact of higher auto lease volumes. Expenses of $7.2 billion were up 4% driven by continued investments in the business and higher auto lease depreciation, largely offset by efficiencies and lower FDIC charges. Of note, the overhead ratio was 52% and we delivered significant positive operating leverage.
On credit, this quarter included a reserve release in the home lending purchase credit impaired portfolio of $400 million, reflecting improvements in delinquencies and home prices, which was partially offset by a reserve build in cards of $200 million. This was primarily driven by growth, and to a lesser extent mix as the newer vintages naturally season and become a larger part of the portfolio. Net charge-offs were up $212 million. Excluding the recovery on a loan sale and home lending in the prior year, net charge-offs were up $80 million driven by card, as we continue to grow the portfolio.
Now turning to the corporate and investment bank on Page 5, CIB reported net income of $2.9 billion and an ROE of 14% on revenue of $9.6 billion. As a reminder, our performance was particularly strong last year, which featured record or near-record revenues in overall IBCs and equity markets. With that in mind for the quarter, IB revenue of $1.8 billion was down 9% year-on-year in a market that was also down.
Advisory, debt underwriting, and equity underwriting fees were down 15%, 13% and 11% respectively, reflecting lower levels of deal activity as well as a 10-year record share in equity underwriting in the prior year. It's worth noting on a year-to-date basis, we continue to rank number one overall and have gained share across all products and regions, benefiting from our continued investment in bankers. In advisory, we grew share in announced deal volumes and announced more deals than any other bank. In debt underwriting, we also rank number one, benefiting from our strong lead [inaudible] position in leveraged finance, and in equity underwriting we have seen significant pick-up in activity since the first quarter and we continue to benefit from our leadership positions in tech and healthcare, where there has been robust activity. Looking forward, the overall IB pipeline is healthy, though lower compared to the elevated activity we saw last year and with fewer acquisition financing and lease financing opportunities in debt underwriting. Dialog with clients remains active and we expect strong deal flow to continue.
Moving to markets, total revenue was $5.4 billion, which was flat year-on-year. Our results include a notable gain in fixed income from the IPO of Tradewind. Excluding this gain, markets revenue would have been down 6% year-on-year against strong second quarter performance last year. Fixed income markets were down 3% on an adjusted basis with relative weakness in EMEA partially offset by increased client activity in North America rates and agency mortgage trading, due to the changing rate environment. Equity markets was down 12% against a record second quarter last year. [inaudible] client activity and a tough compare contributed to a year-on-year decline in equity derivatives; that said, cash in prime remained stable with client balances in prime reaching an all-time high.
Treasury services and security services revenues were $1.1 billion and $1 billion, down 4% and 5% year-on-year respectively, with organic growth being more than offset by deposit margin compression. As a reminder, similar to last quarter, deposit margin was primarily impacted by funding basis compression rather than client betas, and at the firm-wide level there is an offset. Sequentially, treasury services was flat and security services was up 3% on higher balances and fees. Finally, expenses of $5.5 billion were up 2% compared to the prior year with higher legal expenses partially offset by lower performance-based compensation expense. The comps revenue ratio for the quarter was 28%.
Now moving onto commercial banking on Page 6. Commercial banking reported net income of $1 billion and an ROE of 17%. Revenue of $2.2 billion was down 5% year-on-year predominantly driven by lower investment banking activity due to our outperformance last year and lower NII on slightly lower deposit balances. Also worth noting here, gross IB revenue of $1.4 billion was up 8% year-to-date on strong syndicated lending and M&A advisory activity, and we continue to progress solidly toward our long-term $3 billion target. Deposit balances were down 1% year-on-year and importantly up 1% sequentially as balances have largely stabilized in total, although we continue to see migration to from non-interest to interest-bearing deposits. Expenses of $864 million were up 2% year-on-year driven by ongoing investments in banker coverage and technology. Loans were at 1% with C&I loans being flat, or up 3% adjusted for the continued run-off in our tax-exempt portfolio. The story here remains unchanged - we saw solid growth in areas where we've been investing, including expansion markets in specialized industries, offset by lower acquisition-related and short-term financing activities. CRE loans were up 2% with modestly higher activity in commercial term lending, where clients are taking advantage of lower long-term rates, offset by declines in real estate banking where we continue to be selective, given where we are in the cycle.
Finally, credit costs were $29 million with a net charge-off rate of 3 basis points. Now onto asset and wealth management on Page 7. Asset and wealth management reported net income of $719 million with pre-tax margin and ROE of 27%. Revenue of $3.6 billion for the quarter was flat year-on-year as the impact of higher average market leverage was offset by lower investment valuation gains. Expenses of $2.6 billion were up 1% year-on-year as continued investments in advisors and technology were partially offset by lower distribution fees. For the quarter, we saw record net long-term inflows of $36 billion driven by fixed income, and we had net liquidity inflows of $4 billion. AUM of $2.2 trillion and overall client assets of $3 trillion, both records, were up 7% driven by cumulative net inflows into long-term and liquidity products, as well as higher market levels globally.
Deposits were up 2% sequentially and up 1% year-on-year, and similar to the commercial bank, balances in total have largely stabilized. Finally, we had record loan balances up 7%, with strength on both wholesale and mortgage lending. Now onto corporate on Page 8. Corporate reported net income of $828 million, including the vast majority of the tax benefits that I mentioned earlier. Revenue was $322 million, up $242 million year-on-year due to higher net interest income driven by higher rates and balance sheet mix, partially offset by net losses on legacy private equity investments versus net gains in the prior year. Expenses of $232 million were down $47 million year-on-year.
Finally turning to Page 9 and the outlook, on this page I'll just comment on NII, which should not be surprising given the changes to the rate environment. As you can see, we are updating our 2019 full-year NII outlook to about $57.5 billion. The reduction is based on multiple scenarios which assume, among other things, lower long end rates and up to three rate cuts this year, which is consistent with current market sentiment. As a reminder, this compares to a rate scenario that assumed zero cuts at the time of first quarter earnings. To wrap up, the U.S. consumer remains healthy, overall credit is in great shape, and the earnings power of the company is evident. We delivered strong returns this quarter and the diversification and scale of our business model positions us well to outperform in any environment. Understanding there is some macro uncertainty and potential headwinds from the rate outlook, we still expect to grow the franchise and will continue to strategically invest in our businesses in technology, bankers and beyond. With that, Operator, please open the line for Q&A.