Thanks, Operator. Good morning, everyone. The presentation is available on our website and please refer to the disclaimer in the back. Starting on page 1, the firm reported net income of $11.7 billion, EPS of $3.74 on revenue of 30.4 billion, and delivered a return on tangible common equity of 22%. These results include a $2.1 billion net credit reserve release, which I'll cover in more detail shortly, as well as an income tax benefit of 566 million. Adjusting for these items, we delivered an 18% or OTC this quarter, touching on a few highlights. It was another strong quarter for investment banking, including an all-time record for M&A. And while loan growth remains muted, we see a number of indicators to suggest it has stabilized and may be poised to begin more robust growth across the Company and particularly in card. And consistent with last quarter, credit continues to be quite healthy.
In fact, net charge-offs are the lowest we've experienced in recent history. On Page 2, we have some more detail. Revenue of $30.4 billion was up $500 million or 2% year-on-year. Net interest income was up 1% with Balance Sheet growth and higher rates primarily offset by mix and lower CIB Markets NII. And NIR was up 3% driven by solid fee generation across investment banking and AWM largely offset by net securities losses in corporate versus gains in the prior year and lower revenue in home lending. Expenses of 17.1 billion were up 1% year-on-year on continued investments and higher volume and revenue-related expenses, predominantly offset by lower legal expense and the absence of an impairment in the prior year. and credit costs were a net benefit of $1.5 billion driven by the reserve release. But it's also worth noting that net charge-offs of just over $500 million were approximately half of last year's third-quarter number.
Let's cover reserves on the next page. We released $2.1 billion this quarter driven by less severe downside scenarios as the macro environment continues to normalize. Reserves stand at 20.5 billion, which still accounts for elevated uncertainties surrounding COVID, and the current labor market dynamics, including the exploration of expanded unemployment benefits.
Now moving to balance sheet and capital on Page 4, we ended the quarter with a CG1 ratio of 12.9% down modestly primarily on higher RWA. The firm distributed $8 billion of capital to shareholders this quarter, including 5 billion of net repurchases and the common dividend was increased to $1 per share. With that, let's move on to our businesses starting with Consumer and Community Banking on page 5. CCB reported net income of 4.3 billion, including reserve releases of 950 million on revenue of $12.5 billion down 3% year-on-year. Deposits were up 3% quarter-on-quarter, indicating some deceleration as excess deposits are stabilizing. Notably contributing to this growth, we ranked number 1 in retail deposit share based on the FDIC data, and we're the only large bank to show meaningful share growth up 70 basis points year-on-year. Similarly, client investment assets were up 29% year-on-year. And while market performance was a driver, retail flows in both advisor and digital channels were strong. Touching on spend, combined credit and debit spend was up 24% versus the third quarter of '19 and in line with last quarter, within that data, travel, and entertainment spend was up 8% versus 3Q '19, and very closely track the patterns of the Delta variant within the quarter, softening in August and early September, and reaccelerating in recent weeks. Card outstanding’s were up 1% year-on-year and 4% quarter-on-quarter, benefiting from higher new account originations. And while the payment rate is still very elevated, it's come down from the highs and revolving balances have stabilized. And when we look inside our data, we see evidence of excess deposits starting to normalize in segments of the population that traditionally revolve.
So as a result, we're optimistic about the growth prospects of revolving card balances.
Moving to home lending. Average loans or down 6% year-on-year, but up 2% quarter-on-quarter with portfolio additions now outpacing prepayments. It was another strong quarter for originations totaling nearly 42 billion, up 43% year-on-year, reflecting record purchase volume and share gains in the refi market. And in Auto, we had 11.5 billion of originations, second only to last quarter's record.
So overall, loans PPP, were up 3% quarter-on-quarter on the growth in card and home lending I just mentioned Expenses 7.2 billion, were up 5% year-on-year, driven by investments in the business, including marketing. And more generally, we continue to see that the acceleration in digital adoption during the pandemic has persisted with active mobile users up 10% year-on-year to almost 45 million.
So with that, looking forward, we are encouraged by our household growth and balance sheet trends.
However, we expect it to take some time for revolving credit card balances to return to pre-pandemic levels, given the amount of liquidity in the system. In the meantime, credit losses and delinquencies remain extraordinary low. In card on a year-to-date basis versus 2019, low charge-offs more than offset lower NII.
Next, the corporate and investment bank on Page 6, CIB reported net income of $5.6 billion on revenue of 12.4 billion. Investment banking revenue of $3 billion was up 45% versus the prior year, and down 12%, sequentially. IB fees were up 52% year-on-year, driven by strong performance in advisory and equity underwriting and we maintained our number 1 rank with a year-to-date wallet share of 9.4%. An advisory was an all-time record quarter benefiting from the surge in M&A activity, and we almost tripled fees year on year in a market that doubled. Debt underwriting fees were up 3% driven by an active leveraged loan market primarily linked to acquisition financing. And in equity underwriting, fees were up 41% primarily driven by our strong performance and IPOs.
Looking ahead to the fourth quarter, the overall pipeline is healthy and the M&A market is expected to remain active. And if so, IBTs should be up year-on-year, but down sequentially.
Moving to Markets, total revenue was 6.3 billion, down 5% compared to a record third quarter last year. Notably, we were up 24% from 2019, driven by the continued strong performance in equities and spread products. Fixed income was down 20% year-on-year due to ongoing normalization across products, particularly in commodities, as well as an adjustment to liquidity assumptions in our derivatives portfolio. Equities was up 30%, a record third quarter, with strength across regions and, and reflecting higher balances in prime, strong client activity in cash, as well as ongoing momentum in derivatives.
In terms of outlook, keep in mind that it will be a difficult compare against the record fourth quarter last year. But the current environment continues to challenge our ability to forecast revenues. Wholesale payments revenue of $1.6 billion was up 22% or up 10% excluding gains on strategic equity investments. And the year-on-year growth was driven by higher deposits and fees, partially offset by deposit margin compression. Security Services revenue of 1.1 billion was up 9%, primarily driven by growth in fees on higher market levels. Expenses of 5.9 billion or flat year-on-year as higher structural and volume and revenue-related expense, as well as investments, were offset by lower legal expense. And credit costs were a net benefit of 638 million, driven by the reserve release I mentioned upfront.
Moving to commercial banking on Page 7, commercial banking reported net income of $1.4 billion, revenue of 2.5 billion was up 10% year-on-year on higher investment banking and wholesale payments revenue. Record gross investment banking revenue of $1.3 billion was up 60% primarily driven by increased large deal activity with continued strength in MNA and acquisition-related financing across both corporate client and middle-market banking. Expenses of $1 billion were up 7% year-on-year, predominantly due to investments and higher volume and revenue-related expenses. Deposits were up 4% sequentially, mainly driven by higher operating balances, and loans were down 1% quarter-on-quarter. C & I loans were down 3%, but up 1%, excluding PPP, driven by higher originations. And it's also worth noting that consistent with last quarter, we are seeing a slight uptick in utilization rates in middle market. And those among larger corporates seem to have stabilized albeit at historically low levels. CRE loans were flat with modestly higher originations in commercial term lending offset by net payoff activity and real estate banking.
Finally, credit costs were a net benefit of 363 million, driven by reserve releases with net charge-offs of 6 basis points. And then to complete our lines of business, AWM on Page 8.
Asset and Wealth Management reported net income of $1.2 billion with pretax margin of 37%, record revenue of 4.3 billion was up 21% year-on-year as higher management fees and growth in deposit and loan balances were partially offset by deposit margin compression. Expenses of 2.8 billion were up 13% year-on-year, largely driven by higher performance-related compensation, as well as distribution fees.
For the quarter net long-term inflows of 33 billion, continue to be positive across all channels, asset classes, and regions, with notable strength in equities and fixed income. AUM of $3 trillion and overall assets of $4.1 trillion, up 17% and 22% year-on-year respectively, were driven by higher market levels and strong net inflows. And finally, loans were up 3% quarter-on-quarter, with continued strength in custom lending, securities-based lending, and mortgages.
While deposits were up 5% sequentially.
Turning to corporate on Page 9. Corporate reported a net loss of $817 million, including 383 million of the 566 million tax benefit, that I mentioned upfront. Revenue was a loss of $1.3 billion down 957 million year-on-year. N II was a loss of 1.1 billion down 372 million, primarily unlimited deployment opportunities as deposit growth continued. And we realized 256 million of net investment securities losses in the quarter compared to 466 million of net gains last year. Expenses of a 160 million were down 559 million year-on-year, primarily driven by the absence of an impairment on a legacy investment in the prior year.
On the next page, let's discuss the outlook.
Our full-year outlook for 2021 remains largely in line with our previous guidance. We still expect NII to be approximately $52.5 billion and adjusted expenses to be approximately $71 billion. But as you'll see on the page, we've lowered our outlook for the card net charge-off rate to around 2% as delinquencies remain very low.
So to wrap up, we're pleased with this quarter's performance as we approach what we hope is the tail end of the pandemic. The strengths of the Company, both in terms of our diversified business model, as well as our fortress Balance Sheet, talent and culture, have enabled us to perform well through this difficult period while continuing to serve our clients, customers, and communities.
As we look ahead and the environment normalizes, new challenges will undoubtedly arise, but we feel confident with the position of the Company and the strategy going forward. With that, Operator, please open the line to Q&A.