Thank you, operator. Good morning, everyone. I'm going to take you through presentation which is available on our website. Please refer to the disclaimer at the back of the presentation. Starting on page 1. The firm reported net income of $8.4 billion and EPS of $2.34 on revenue of $27.8 billion with the return on tangible common equity of 17%. The result this quarter was strong. Record net income for third quarter even excluding the impact of tax reform with key drivers being higher net interest income across businesses reflecting continued rate normalization and solid growth in both loans and deposits, as well as very strong credit performance across all portfolios. Highlights include, average core loan growth excluding the CIB up 6% year-on-year, card and debit sales as well as client investment assets and merchant processing volumes and consumer were all up double digits. We gained share in global IB fees and across all regions year-to-date and in Asset & Wealth Management, AUM and clients assets were both up 7%. Turning to page 2 and some more detail about our third quarter results.
Revenue of $27.8 billion was up $1.4 billion or 5% year-on-year. Net interest income was up $945 million or 7%, reflecting the impact of higher rate, net of lower market NII as well as loan and deposit growth. Noninterest revenue was up $425 million driven by market NII and higher auto lease income, partially offset by markdowns on certain legacy private equity investments. Expense of $15.6 billion was up 7% year-on-year. More than half of the increase relates to investments we're making in technology, marketing, bankers broadly defined and real estate. And the remainder is driven by revenue related costs, principally higher auto lease depreciation and transaction expenses on higher volumes. Credit trends remained favorable across both consumer and wholesale. For the quarter, credit costs of $950 million were down $500 million year-on-year, driven by changes in consumer reserves. Briefly on page 3, turning to balance sheet and capital. So, little to say here other than as you can see, capital and risk weighted assets remained basically flat quarter-on-quarter with the CET1 ratio of 12%. Moving on to page four and Consumer & Community Banking. CCB generated $4.1 billion of net income and an ROE of 31%. Core loans were up 6% year-on-year, driven by home lending up 10%, business banking up 5%, card up 4% and auto loans and leases up 3%. Deposits grew 4% year-on-year, continuing to outpace the industry although slower than a year ago. According to the recently released FDIC annual survey, we grew at nearly 2 times the average and we were the fastest growing bank in 9 of our top 10 markets. Chase also earned the number one spot in customer satisfaction in the J.D. Power U.S. National Banking Satisfaction Study. Client investment assets were up 14% as we saw clear record net new money flows, more than doubling year-on-year, with flows accounting for more than half of the growth. Card sales volume was up 12% with strength across our portfolio, and we also saw very strong debit sales performance, up 13%.
Revenue of $13.3 billion was up 10%. Consumer and business banking revenue up 18% on higher NII, driven by continued margin expansion and deposit growth. Home lending revenue was down 16% as higher rates drive loan spread compression and the smaller markets pressuring production margins. In addition, net servicing revenue was down including the MSR. Card, merchant services, and auto revenue was up 10%, driven by higher card NII on margin expansion and loan growth, higher net card fees on lower acquisition costs predominately offset by lower net interchange and also on higher auto lease volumes.
Expense of $7 billion was up 7%, driven by continued investments in technology and by auto lease depreciation. The overhead ratio was 53%. Finally on credit, starting with reserves.
This quarter, we built reserves in card of $150 million, largely driven by growth. And we released reserve in the home lending purchased credit-impaired portfolio of $250 million, reflecting improvements in home prices and delinquencies. On charge-offs, there are few moving pieces. Year-on-year charge-offs were down $137 million, driven by a recovery from a reperforming loan sale in home lending this quarter of about $80 million, together with an approximately $50 million charge-off adjustment in auto this period last year.
Excluding those, charge-offs were about flat. But, we are seeing improvement across all portfolios except for card. And in card, while charge-offs are up as newer vintages season, they are up less than expected and credit performance remained very strong. At this point, we expect card charge-off rates for the year to be below our guidance at about 310 basis points. Now turning to page five and the Corporate and Investment Bank. CIB reported net income of $2.6 billion, and an ROE of 14% on revenue of $8.8 billion up 3%.
In banking, we maintained our number one ranking year-to-date in global IB fees as well as in North America and EMEA, and gained share across regions. For the quarter, IB revenue of $1.7 billion was flat to a strong prior year and we outperformed in a market of sound meaningful as we saw robust activity, particularly in ECM. Equity underwriting fees were up 40%, gaining share across all products with continued strength in IPOs, particularly in technology and healthcare. Advisory fees were down 6% compared to a third quarter record last year, outperforming the market and gaining share year-to-date. And debt underwriting fees were down 11% although better than the market, as our strong lead left positions drove share gains. Looking forward, the overall pipeline remains strong, up solidly from the prior year across products.
Moving to markets. Total revenue was $4.4 billion, down 2% or up 1% when adjusting for the impact of tax reform, so another good performance. Fixed income markets revenue was down 6% adjusted with no single predominant driver. We saw mild weakness in rates, financing, credit rating and securitized products as a result of compressed margins and tighter financing spreads in range-bound and competitive markets. This was partly offset by higher activity levels in emerging markets on volatility and commodities returning to more normal levels relative to a weaker prior year. Equities continued the momentum from previous quarters and was up across all segments on the back of strong client activity. Equity revenue was up 17%, reflecting continued share gains in cash and prime and strong performance in corporate derivatives. Treasury services and securities services revenue were $1.2 billion and $1.1 billion, up 12% and 5% year-on-year respectively, driven by higher rates and balances. And securities services also benefited from higher asset-based fees on new client activity. Quarter-on-quarter, securities services revenue was down principally on seasonality and the impacts of the business exit. Finally, expense of $5.2 billion was up 8%, driven by higher legal expense, higher compensation expense as we invest in technology and bankers, and volume related transaction costs.
Moving to commercial banking on page six. Another strong quarter for this business with net income of $1.1 billion and an ROE of 21%. Revenue of $2.3 billion was up 6% year-on-year, driven by higher deposit NII. Gross IB revenue of $581 million was flat, although we saw a strong underlying flow of business and pipelines remained robust and active. On deposits, while we continue to benefit from the normalizing rate environment, as expected, balances are down year-on-year and bases are trending higher, as we are seeing some migration at the top end to higher yielding investments. Expense of $853 million was up 7%, as we continue to invest in the business in banker coverage and technology initiatives. Loan balances were up 4% year-on-year and 1% sequentially. In C&I, demand remains muted in the wake of tax reform as well client confidence is high, balance sheet is strong and liquid, and the environment is competitive. For us, C&I loans were up 4% year-on-year and flat sequentially, in line with the industry. But if you decompose it, we're growing strongly in our expansion markets and specialized industries, growing solidly in our core markets, but are seeing notable offset in tax expense activity, given the mix of our business. CRE loans were up 3% year-on-year, a little less than the industry as we're seeing increased competition and continue to be very selective.
Finally, credit performance remained strong with net recovery of 3 basis points. Moving on to asset and wealth management on page seven. Asset and wealth management reported net income of $724 million with a pretax margin of 27% and an ROE of 31%. Revenue of $3.6 billion was up 3% year-on-year, driven by higher management fees, net of fee compression on higher market levels and continued growth in long-term products. These are partially offset by lower mark-to-market gains, including on seed capital investments. Additionally, banking is also strong. Expense of $2.6 billion was up 7%, driven by continued investments in advisors and technology, as well as high external fees on revenue growth.
For the quarter, we saw net long-term inflows of $8 billion with positive flows across all asset classes. In addition, we saw net liquidity inflows of $14 billion. AUM of $2.1 trillion and overall client assets of $2.9 trillion were both up 7% with more than half of the increase being driven by flows and the remainder on higher market. Deposits were down 8% year-on-year, reflecting migration into investments with us, and down 5% sequentially including seasonality. Finally, we had loan balances up 12% with strength in global wholesale and mortgage lending.
Moving to page eight and corporate. Corporate reported a net loss of $145 million. Treasury and CIO net income was up year-on-year, primarily driven by higher rates. Other corporate was a net loss of $241 million, including markdowns on certain legacy private equity investments of $220 million pretax. For the whole Company, legal costs were a modest negative, with the benefit here in other corporate being more than offset in the CIB.
Moving to page 9 and outlook. We recently gave you updated outlook, so unsurprisingly that still holds and it's here on the page. Only two things of note. Our expense outlook assumes that the FDIC surcharge ended this quarter. So, clearly an extension would pose a risk. And on tax, there are a number of questions in the rules, which we expect to be clarified by the end of the year. We will have to work through them but would not expect any changes to be material. So to close. We are growing across most of our businesses. We're investing heavily in all of them. We're investing in technology, bankers and beyond. Credit is in great shape and the earnings power of the Company is evident. We are particularly proud of the strength and improvement in customer satisfaction broadly and our continued investments which drive leadership positions and market share gains. This quarter, we announced Sapphire Banking and our digital investing platform You Invest. We opened our first branch as part of our expansion strategy in Washington DC, announced additional expansion into Philadelphia and Boston, and also announced our AdvancingCities initiative as we invest for growth in the clients and communities that we serve. With that, operator, please open the line to Q&A.