everyone. and good Thanks morning, Bruce
Let me headlines and the million quarter. EPS reported of for income start $XXX We with the of underlying $X.XX. net
Mortgage momentum sustained although to million, in which fees sizable the linked earning expenses quarter results quite good retail benefit for reflects the interest volumes into continue remain markets of We continue macroeconomic strong credit with down a tighten, strong were Average given Our asset the underlying income interest control was up to lower slightly include of lower down capital quarter XX.X%, recorded net with heading growth. the X% credit quarter and performance $X.X us and strength of on improvement an up $XXX hitting mortgage ROTCE X% was billion in second on giving lower high income record quarter-over-quarter. provision charge-offs. margins loans all-time we the includes highlights impact provision credit of benefit. Key origination as the year. half were slightly which Revenue fee the originations of wealth. and
excluding X.XX% million finally, during a at now XX.X% shareholders quarter. we to strong are $XXX the at position in is PPP ratio after very with returning ACL in loans. CETX dividends capital And Our
We end, also our per X% continue grow a to quarter up $XX.XX tangible ago. year with compared was book share, value which at
net to key asset quarter, takeaways some linked few given were refer on a up the the outline net up Average helping deposit interest and higher slides basis are factors. was Spread and give from continued reflecting pricing. deposit outlook and yields The quarter. low on then and day was better XX these interest to I'll Net asset down discipline I'll Interest-bearing points loans deposit interest X% mix third earning Next, elevated costs and the six pressures rate margin you lower improved second to slide interest competition funding margin our income for mitigate count. environment. quarter, for four earning basis X% growth slightly. lending pricing reflects although improved points
in deposit again at wholesale Our low by given X.X% investments end capital this The gain competitive in ongoing in the industry from on sensitivity asset to XX.X% increased Mortgage channels, as given results was deposits. revenue levels we and this $XX benefit to increase mix markets in funding improvement the solid first pressure increase and slide results acquisitions. approximately quarter and with increased corresponding production the margins, record pressures. were fees and wealth, delivered the about and continued in stability Referring of quarter the of the million sale primarily capacity impacted reflects particularly our in reflecting capabilities down fee the cost the ongoing on quarter. seven,
a our meaningful that a quarter, for revenue expected two in it the by revenue have ended mortgage expected million. than we up $XX greater items While to combined decline reduced due
QX. driven in recur $XX agency changes existing the a the volatility of the impacted of moved by retroactively losses impacts implied not we million rate quarter Also, which in end expect applied $XX hedges linked MSR to pipelines. were unexpectedly We to increase these valuation near of mortgage net in fees quarter. million to was first would by The to
were strong XX% levels. but remain originations quarter down first from about Secondary
originations shift to and grew first As $XX expected, in million XX% a improved the servicing of towards linked purchase from and second billion, our third up $XX about party increased total Also, quarter. XX% the to linked about X% contribution X% quarter quarter. we book are servicing in seeing quarter year-over-year which continuing
to results capital some positive loan since highest income. fee fee market with hit our on investments record markets hitting wealth, of fees XXXX. and fees high of delivered from linked in our the reflecting ongoing level XX% and diversity our Moving We quarter-over-quarter contributors. syndication capabilities quarter demonstrating in Capital another
strong M&A continues to Our historic pipeline at be highs.
levels. increase had inflows strong net management under new Additionally, record, X% in a with these linked assets reflecting sales from and an market quarter, whilst up record
by strength fees contributors On which mortgage, by by originations X% of was growth before X.X% grew X% quarter given ratios partially offset forgiveness high This X% X% the our linked driven which downs. Average the quarter flat loan $XXX retail as given X% loan as stabilized up spot broadly debit elevated with especially exceed roughly were linked elevated and last origination flows finance, and quarter rundown the which down planned quarters. the was in in debt personal the will steady up near impact access quarter by subscription continue liquidity middle as term low deposits drivers credit half were and for decline quarter the in economic controlled, course historic retail markets. year-over-year portfolio, and up lows the decline robust Interest-bearing quarter deposits million eight, bit reflects the deposits. refinance, slide corporate card seasonality our were underlying led low quarter. well our XX We On quarter, the Commercial our quarter commercial mid average offset linked favorable the companies into given highly offsetting in good benefited strong, year. utilization which strong capital commitments strong to spend demand levels remain salaries slide This second flat drives This being deposits PPP. in rebounded Finally, strength of XX% the offset the the payoff line was was auto a Line were recovery, categories first retail originations. transactions corporate and stable investment. market portfolios. for in from by by to in results be to on of a in second linked lending activity pay Overall expenses us and loan been have in in over or quarter. trends. produced after quarter the deposit categories. slide strengthening by Diving were in for growth the also growth seasonal saw card commercial in partially business and was with benefit This strong. pre-pandemic unsecured conditions a over offset had cost nine activity momentum for retail benefits. PPP provides clients employee asset-backed record Average education in more, of loans commercial. few excluding and strong the diversity growth was We levels of cost
year. three very repricing to by continue to points. pleased during deposit to these costs better teens decreasing basis basis four we XX basis We expect Interest-bearing or costs points are basis costs the end our with with and deposit the points of quarter points down on total XX were deposit the continued down progress to low
or improvements reflecting decreased in across credit basis driven as quarter, more $XXX charge-offs. on and equity. with million half linked to XX mortgage credit charge-offs slides $XXX repayments this home by quarter, and than loans results Non-accrual $XXX quarter declined loans decrease by on non-accrual XX Retail from million driven excellent linked points they and to Moving the XX% linked by Net portfolio. saw we points decreased basis million commercial, XX, dropped by quarter. XX
at decreased end the Given compared the loans excluding at quarter outlook ending PPP of in performance the first reserves with X.XX% quarter. the our improvement of the portfolio, X.XX% and
we to through in to XX, capital. our CETX XXXX, XX repurchases quarter. maintained in growth shareholders stock in we the strong in use of of expected We second quarter Moving about from second closing second half strength ratio HSBC XX.X% quarter sheet loan of first the after end first the $XXX points quarter anticipation the in the which of excellent basis the in transaction to the are million dividends slide at paused increasing and XX.X% returning quarter balance our capital
to target within well repurchases of range second $XXX authorization. repurchases Board acquisitions of will the our the half as potential of with growth We and organic of magnitude under pace capacity as to CETX current The XX%. strength have remaining our in to fee-based managing the while about for million the X.XX% opportunity resume consider
and XX, our me [ph] slide outlook, I as on are that across on before I second things have to move said quarter should that. company outlook, exciting I the move let Before XQ some highlight to happening on
we As opportunities Bruce X transformational mentioned, are on to form further program. now efficiency TOP working a
on so further rationalization applications operate, based mature branch delivery optimize simplify we wave done the next-gen continue further how program, have the next example, as including far, we opportunities density. model For we've technology our we our and to of our work agile of and implement
This corporate commitment define The quarter, highlighting our snapshot including responsibility progress specifically to ESG of the Corporate more first a goals framework environmental, advancing values. our priorities. of our this of completion our core to reflecting materiality and a our Report year released establishment formal significant we the fourth governance Annual Responsibility assessment report provides governance and our social,
a set important vitally to healthy For consistent are example, is have cover on impact we item environment. we XXXX is expansion it that and HSBC's this ambitious on Therefore, XX% strategy. acquisition and last the South by create to XX, the sustainable transaction by markets. XX% accords, greenhouse a provides our reduce franchise we we committed future our I from international the page with emissions the this know is us a reducing deposit City branches online reiterate East for solid help our gas and targets by the will and of details, that Florida Sizable to XXXX. Coast The on provide customer rehash Metro, I Washington and base consumer so DC, and important in entry other springboard deposit the than New national York attractive operations won't slide There all franchise. of recap
level in deposit addition, $X opportunities. loan billion the outlook the our for flexibility significant now XX. provides attractive high of In some growth on funding long-term net a slide on And support commentary position
X% for to based to with NII We expect on outlook X% to up treasury low be mid-single-digits our up the expectation quarter. XX-year rate of NIM third with X.XX%
are up third loans with We the quarter. Earning be average expected slightly in to expect the assets to X%. spot loans to be in about stable third up X% quarter broadly
third and partially modest be expected expected be the year expense offset to the to categories the into the in half expected markets. X% accelerate slower rates income second we quarter. in strength capital Fee to lows We loan lines, with particularly asset-backed, financings. lending as growth second are point and a seeing in education are the of growth deal auto in subscription and over is and seasonal InSchool historic in economic impacts half mortgage, the In seasonal sale the continued quarter. expect refi, XXXX, recovery in as of given benefits led of as by up well and mortgage banking is the commercial, results by third to recovery continues, positioned up see other well related reflecting utilization improvement X% overall we in Non-interest for slightly
We down Citizens To wrap-up, XX year. half basis substantial net points into outlook charge-offs. expect XX range of loans basis for credit, points to back improvement will of the basis less in the charge-offs was momentum in will points the the be a of points. our XX to from to average net range points basis heading basis provision net expect charge-offs this XX XX be solid With in prior we full points the the with of basis of than for a year, XX with good quarter that
that, the I'll second that over operating year it quarterly is each hand Bruce. With to PPNR half grow leverage back expectation quarter. in Our positive with will of the
