“While losses in the commercial real estate office portfolio declined in the third quarter, market fundamentals remained weak, and we still expect commercial real estate office losses to be lumpy, as we continue to actively work with our clients.”

In context

“r efficiency initiatives helps reduce salaries and professional and outside services expense compared with a year ago. These declines were partially offset by higher revenue-related compensation, predominantly in Wealth and Investment Management as well as higher technology and equipment expense. Operating losses declined from a year ago and from the higher levels we had in the first half of this year. Turning to credit quality on Slide 8. Net loan charge-offs decreased 8 basis points from the second quarter to 49 basis points of average loans. The decline was driven by lower commercial net loan charge-offs, which were down $145 million from the second quarter to 24 basis points of average loans with lower losses in both our commercial real estate and commercial and industrial portfolios. While losses in the commercial real estate office portfolio declined in the third quarter, market fundamentals remained weak, and we still expect commercial real estate office losses to be lumpy, as we continue to actively work with our clients. Consumer net loan charge-offs declined $45 million from the second quarter to 83 basis points of average loans, driven by lower losses in the credit card portfolio. Non-performing assets decreased 3% in the second quarter driven by lower commercial real estate non-accrual loans. Commercial real estate office non-accruals declined $164 million, which included paydowns and net loan charge-offs. Moving to Slide 9. Our allowance for credit losses for loans was down $50 million from the second quarter with modest declines across most asset classes, largely offset by an increase in allowance for credit card loans driven by higher balances. Our allowance coverage for loans has been relatively stable over the past year, as credit trends remain within our expectations. Our allowance coverage for o”