Non-interest expense did increase from the fourth quarter of ’13 as a result of higher performance-based incentives, as well as increased support cost. We increased the number of financial advisors in year-to-date retention of our experienced financial advisors remains at record levels. Return on allocated capital was 23%. Client balances were nearly $2.5 trillion, up 36 billion from the third quarter of ’14 and were driven by strong client balance inflows. Long-term AUM flows were $9 billion for the quarter and represented the 22nd consecutive quarter of positive flows. Our record loan flows during the quarter reflect $3 billion in growth over the third quarter of ’14 in securities space as well as residential mortgage lending. And our period end deposits were up 7 billion or 3% from the third quarter of 2014.
If we turn to Slide 13, global banking earnings for the quarter were 1.4 billion, up from the fourth quarter of ’13 on lower credit cost and to a lesser degree, reduced expenses. Results were partially — the net income was partially offset during the quarter on a year-over-year basis by lower investment banking fees off of what was a record level in the fourth quarter of ’13. Return on allocated capital was strong at 18%. We look at the investment banking revenues of north of $1.5 billion. We feel very good about the results. They were up on a linked quarter basis, and our investment banking team executed very well in a tough distribution environment given the volatility of rates as well as energy prices. Provision was a slight benefit in the quarter and reflected continued low loss rates in a small reserve release compared to the year ago period which included a reserve addition of $434 million. If we look at the balance sheet would point to two average loans, were $271 billion up $3.7 billion from the third quarter of 2014 levels.
If we switch to Global Markets on Slide 14, the business reported a modest loss in the quarter but that did include a $497 million charge to implement FVA. For those unfamiliar with FVA, funding valuation adjustment is an adjustment to the fair value of uncollateralized derivative trades to account for the present value of funding cost. This is an accounting practice many of our peers have also adopted and as you all know this is a one-time transition cost for implementation. Separately, net DVA for the quarter was a loss of $130 million versus a loss of 617 million during the fourth quarter of ’13. Earnings are down from the fourth quarter of ’13 as a result of a decline in sales and trading revenue that was mostly offset by decline in expense. If you recall on our fourth quarter ’13 call, fixed sales and trading during that quarter included $220 million in recoveries on legacy positions in the fourth quarter of ’13. Sales and trading adjusting for net DVA and FVA were $2.4 billion in the fourth quarter of ’14 versus $2.8 billion in the fourth quarter of ’13 after we adjust for the recoveries. On the same adjustment basis fixed sales and trading revenues of $1.5 billion compare to $1.9 billion in the year ago period.
December results were particularly challenging during the quarter with the toughest areas of performance being the credit sensitive businesses within FICC most notably mortgages and credit trading which are generally our largest trading revenue-related businesses. On the positive side, we saw increases in both FX in rates revenues versus the prior year that were driven by increased volatility given global deflationary expectations leading to the U.S. dollar strengthening. Equity sales and trading was up modestly from the fourth quarter of ’13 as increased volatility was a positive for secondary flows across both our cash and derivative trading businesses. On the expense front, the decline reflects litigation expense of $655 million in the fourth quarter of ’13. If we take that litigation expense out, expenses still declined 5% from the fourth quarter of ’13 as the incentives were reduced to align with the revenue performance that we saw.
