With that, if you turn to Page 1, for the quarter, we generated $4.3 billion in net income, $1.02 a share on revenues of $24.4 billion. There are a number of significant items for the quarter which we’re highlighting upfront. I want to discuss each of those in more detail actually when we get to the businesses in the presentation.At the bottom of the page, you’ll see we ended the quarter Basel I and Basel III ratios of 9.9% and 7.7%, respectively. And that's after the impact of repurchasing $4.4 billion of JPM shares and warrants in the quarter and that completes our previously approved repurchase authority of $8 billion. It's worth noting a number of items this quarter for credit. You see our loan loss coverage ratio is 3.74% on total loans. Firmwide reserves remained essentially unchanged quarter-on-quarter. From a loan growth standpoint, we saw loans grow across the Company’s $7 billion and that's despite the run-off we see in our home lending portfolio. We had meaningful year-to-date growth year-over-year in our small business originations up 71%, middle market balance is up 18%, trade finance up 70% year-over-year, just some examples of some of the strength in various categories. We also experienced significant deposit growth, $44 billion, quarter-on-quarter, total deposits up $1.1 billion and deposit growth year-over-year up 21%. Finally, return on tangible common equity is a circled number on the next page of 13%. And with that, I’d ask you to turn to Page 3 in the Investment Bank. Results secured were clearly impacted by the challenging market this quarter. We have circled net income of $1.6 billion, that’s on revenues of $6.4 billion. IB fees in the quarter of $1 billion, down 31% year-over-year, largely driven by the challenging capital markets environment. On an absolute basis, it was our weakest IB fee quarter since the third quarter of 2005. But having said that, we did maintain our number one market share in terms of fees, and we also had very positive league table results, which you could see in the appendix on Page 21.
Markets and CPG results, as you know, from the upfront highlight include a $1.9 billion in DVA, and that largely resulted from the firm’s credit spreads widening this quarter. They actually more than doubled in the quarter. Now if these spreads reversed themselves, we’d ultimately book losses, neither the gains nor the losses related to the underlying operations of the Company.So if you remove $900 million in DVA, that’s associated with structured notes, fixed income revenue would be $2.8 billion, down 34% quarter-on-quarter, that largely reflects lower results in our credit-related products and that was offset by solid results in our rates and our currency businesses. Equity’s revenue of $1 billion, down 9% quarter-on-quarter, that’s driven largely by the volatility, I talked about lower volumes and the continued deleveraging of our prime service customers. $578 million you see in the credit portfolio, remember three parts here; NII and fees to retain loans. We had $1 billion DVA gain in the credit portfolio, and that was largely offset by a $700 million CVA loss after hedging, and that's again as credit spreads widen for our counterparties, CVA increases as well. Expenses in the quarter of $3.8 billion, that's down 12% quarter-on-quarter, up 3% year-on-year, and you see the comp to revenue ratio of 29%. We continue to expect to remain full year in the range of 35% to 40% comp to revenue ratio. And before I talk about 4Q, I just want to step back. So if you – and everyone will adjust differently. If you adjusted out the complete impact of DVA, net income in the quarter would be about $500 million. For those that adjust DVA and CVA, net income in the quarter would have been $900 million, and others are going to make different adjustments as you go through your analysis.
The final comment I'd make on the fourth quarter for the IB is, given current markets, it's not unreasonable to expect that the fourth quarter is going to look very similar to the third quarter.With that, let me turn to Page 4, just a quick note here. This is consolidated RFS. Circled net income of $1.2 billion on $7.5 billion worth of revenues, and I want to dive into each of the businesses. So, if you turn to Page 5, our Consumer & Business Banking business, that's the retail branch in Business Banking business recorded $1 billion in net income. That's up 22% year-on-year. Revenues were up 6% year-on-year, and if you want to focus on the highlights, deposit growth up 7%, Business Banking loan growth up 28% year-on-year, actually the pipeline there remains very solid. And all of that in revenues was offset by lower deposit spreads we saw year-on-year. Expenses in the quarter up 2% year-on-year, and that really is the continuing investment spend. We opened 60 branches, 123 chase private client branches this quarter, and we’re going to continue that investment. And then the final comment is the impact of Durbin, which as you know took effect October 1st. We continue to expect revenues on an annualized basis from Durbin to be $1 billion plus or minus. We expect $300 million in the fourth quarter versus the third quarter run rate, and that’s an elevated amount due to the timing of when we ended some of our debit reward programs. Page 6, Mortgage Production and Servicing, you see net income of $200 million. That’s compares to $25 million in the prior year. Production revenues, we’ve broken out Production and Servicing, so if you go to top Production revenues excluding repurchases were $1.3 billion. It’s down year-over-year but up quarter-on-quarter largely on the back of $37 billion of originations and the improved margins sequentially. Repurchase losses in the quarter you see $314 million. That was below our expected run rate, but we do expect losses to remain at $350 million plus or minus a quarter, but they are going to vary due to timing differences around settlements and the like.
Servicing revenues of $1.2 billion, down 10% year-over-year, and that’s been driven by the decline in third-party loan service and that’s been partially offset by reduced amortization year-on-year and that reflects the revaluation of the MSR asset we took in the first quarter.Servicing expense $866 million this quarter, up almost $300 million year-on-year. Approximately, two-thirds of that expense is default related and we expect that number to continue remain elevated, likely to be up actually slightly in the next several quarters. Page 7, the real estate portfolios, a loss of $70 million on lower revenues of $1.2 billion, that is a function of the decline in NII and that's a function of our portfolio run-off. We talked about that, $27 billion loan declines year-over-year, $6 billion quarter-on-quarter. The expenses are also down 7% year-on-year and you'll see the note, that's due to a temporary delay in foreclosure activity. We do expect FAE expense to increase $20 million to $30 million per quarter as that activity resumes. Page 8, the Mortgage Banking portfolios, just a little deeper dive on credit. You see circled net charge-offs for the quarter of $900 million, and that's a modest decline versus the prior quarter, but delinquency trends really flattened at the end of the third quarter. We've got, as you know, the additional detail on delinquencies on Page 19 in the appendix. Read the rest of this transcript for free on seekingalpha.com