On the top line, revenues rose 0.2% year/year to $22.2 billion, which fell in-line with expectations. Second quarter 2017 also excluded discrete tax benefits totaling $186 million, or approximately $0.04 per share.
Net interest income in second quarter 2017 increased $183 million from first quarter 2017 to $12.5 billion, as the benefit of repricing earning assets in response to higher short-term interest rates exceeded the cost of repricing liabilities, due in part to continued deposit pricing discipline. Second quarter results also benefited from one additional business day. These benefits more than offset the impact of lower average loan and investment securities balances.
Net interest margin was 2.90%, up 3 basis points from first quarter 2017. The benefit of higher short-term interest rates, disciplined deposit pricing, and a reduction in long-term debt was partially offset by the impacts from lower loan and investment securities balances.
Meanwhile, total average loans were $956.9 billion, up $6.1 billion, or 1%, while return on assets (ROA) were 1.21% and return on equity (ROE) 11.95%.
Also, the company reported continued improvement in credit quality and a strong capital position.
The company reported a provision expense of $555 million, which was down $519 million, or 48%, from second quarter 2016. Net charge-offs were $655 million, down $269 million and net charge-offs were 0.27% of average loans (annualized), down from 0.39% Reserve release of $100 million. The company's Common Equity Tier 1 ratio (fully phased-in) came in at 11.6%.
Auto originations were $4.5 billion in second quarter, down 17% from prior quarter and down 45% from prior year, as proactive steps to tighten underwriting standards resulted in lower origination volume.
Home Lending Originations improved at $56 billion, up from $44 billion in prior quarter. Applications were $83 billion, up from $59 billion in prior quarter, while its application pipeline was $34 billion at quarter end, up from $28 billion at March 31, 2017.
The company expects that efficiency initiatives will reduce expenses by $2 billion annually by year-end 2018 and that those savings will support its investment in the business; expect an additional $2 billion in annual expense reductions by the end of 2019; these savings are projected to go to the "bottom line"