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And also to welcome Doug Braunstein. I don't know how many of you know him, but you will have plenty of time to get to know him in the future. Previously, he had been running the Investment Banking USA division including the Bankers and Equity, Debt, Derivative, Capital Markets and extraordinary – extraordinarily talented individual and he is obviously – he's been through this process with us last two weeks. So he is sitting here to listen to have a go, but I know he looks forward to seeing you and I know he will be a great CFO of JPMorgan Chase.So I'm going to hand the call back over to Mike and when he is done, we will be taking some questions. Mike Cavanagh Thanks, Jamie. And I just want to thanks to the entire finance team at JPMorgan Chase. They are going to do – they did great for me and they are going to do a great job for Doug, and welcome Doug and congrats from me as well. So I'm going to start and go through the usual slide deck that we've got here. So if you start on page one here, second quarter highlights. As you see, we earned $4.8 billion after tax, earnings per share of $1.09 on revenues of about $26 billion in the quarter. We flagged for you a – the two big significant items and most of the rest of the stuff we'll get into washing itself out throughout the rest of the numbers. But two big items, reduction to loan loss allowance of about $1.5 billion or $0.36 after tax. I'll cover this upfront and once. It's really coming in three places throughout the firm. First is in the Investment Bank where we had about $350 million pretax reserve release. That's really the same reason in the last quarter of loan paydowns and loan sales freeing up reserves. On – in the credit card business then, you will see the lower current losses leading to lower estimates for future losses and that leads to a reduction in reserves of about $1.5 billion there.
And then finally in our commercial bank, about $400 million pretax of reserve release, which is just related to the periodic, but normal refinements to our credit loss estimates in that business. So those three places are what's driving the reduction to loan loss allowance. We still ended the quarter with $37 billion of loan loss reserves and more than 5% loan loss coverage. So we feel very good – in very good shape on that score.The other items, the U.K. bonus tax, we booked about $550 million after tax, mostly running through the comp line – all running through the compensation line mostly in our Investment Bank. Those two items together, about $0.22 worth of net positive earnings, so about $0.87 away from that. Broad characterization of those results is that most of our businesses performed pretty solidly as you'll see when we go through the numbers. And of particular note is the decline in levels of actual charge-off losses in our consumer businesses, both retail and credit card, from prior quarters. Capital strength continues to be very strong, strong balance sheet continues and we'll get to that towards the end. So now flipping on slide two, I'm just going to skip, it's everything I just said. And now let's go to the Investment Bank on slide three. So there, you see a circled number, profits of $1.4 billion in the Investment Bank. I've already commented on the credit cost line, which was driven by the reserve release. So starting with revenues, you see total revenues of $6.3 billion in the quarter for the Investment Bank. So starting with investment banking fees, as you can see and read for yourself, we continue to be number one ranked year-to-date in investment banking fee revenue and that amounts to $1.4 billion for the quarter, which is down from a very strong and capital issuance-heavy quarter in the prior year.
Moving to the markets businesses, I'd say generally speaking that we are back to sort of pre-crisis levels for spreads. And that combined with lower levels of client activities is – as a general matter throughout the quarter on average, it is the broad backdrop. But specifically, fixed income markets, you see we had revenues of $3.6 billion, down from last quarter and last year and that's – the main areas for those declines from prior periods was in credit markets businesses, rates and commodities areas. Included in the fixed income revenue is a $3.6 billion, about $400 million positive of – benefit from DVA or credit spread tightening on structured notes.Next, in equity markets, $1 billion of revenue and that included $200 million of DVA. Not much more to really highlight there, nor in credit portfolio revenues. Just on expenses, $4.5 billion. Remember, that includes the U.K. bonus tax. When you back that out, the comp to revenue ratio in the quarter was about 37%. So that's it for the Investment Bank. Moving on now to retail, page four gives what drives the P&L that we are going to see on the next slide. I'll just say, retail banking top half of the – top portion of the page, the deposit-taking business, retail branches, you can read these through yourself, but you continue to see healthy underlying trends in the growth of the business, whether it's stabilization in growth in deposits. Remember, we've been running of high-cost deposits. So the net growth here, we feel good about and continued growth in underlying – other underlying trends. Middle of the page, other consumer lending and mortgage banking originations, a total of about $38 billion worth of loan originations in the quarter. That's part of $156 billion of loan originations across the whole business including middle market, small business in the broader company. So we continue to be originating credits for our clients at very good levels.
Now, I'll talk about real estate portfolios at the bottom in a second. If you flip to slide five, you have the P&L for the retail business. I'll walk you down the circled numbers on the left. So in total, retail, the sum of all of this division made $1.042 billion of net income in the quarter.Read the rest of this transcript for free on seekingalpha.com