JPMorgan's markets revenue is likely to drop again in the fourth quarter because the year-ago period was strong, Chief Financial Officer Marianne Lake said on a conference call with analysts.
Overall, Citi's trading performance was still better than expected and bested rival JPMorgan which saw a 27 percent slide in bond trading compared with the 16 percent drop at Citi.
Wall Street stocks retreated from records early Thursday following solid earnings reports from JPMorgan Chase and Citigroup and data showing higher United States inflation in September.
Revenues rose 2.3% from a year ago to $18.17 billion, also beating analysts' view for $17.87 billion. The financial services company reported earnings per share of $1.42 for the quarter on revenue of $18.17 billion.
Both banks said that the increases were a normal part of the credit cycle and did not point to evidence of consumers under stress, but that explanation did not reassure analysts.
Citigroup Inc shares fell $0.34 (-0.45%) in premarket trading Thursday. JPMorgan's net interest income, or the difference between what it pays for funds and collects from lending them out, rose 10 percent.
Executives maintained earlier guidance for full-year net interest income, expenses, charge-offs and loan growth, indicating that they expect JPMorgan's other businesses to continue to offset capital markets pain.
NEW YORK (AP) - Financial conglomerate Citigroup said its third-quarter profits increased 8 percent from a year earlier, helped by a boost in its investment banking division. JPMorgan also had to set aside more money in the quarter to cover souring credit card loans. The branded cards business has seen loss rates rise as some customers who the bank has added in recent years during a growth push have missed payments.
Citigroup Inc's earnings for the third quarter of the year were also up when compared to the same period last year.
Citi-branded cards in the USA provide about 10 percent of Citigroup revenue and profits and are seen by Corbat as one of the company's best shots at growing profits.
The first two of the big banks reported earnings on Thursday morning, and all of the major banks are rising following the reports.