Bond-trading slump hits Citi and JPMorgan

Reuters

Two of America’s largest banks have been hit by a decline in bond-trading revenue in the three months to September, but profits still rose.

JP Morgan Chase’s profit rose 7% to $6.7 bn (£5.1 bn), compared with the same period last year, while Citigroup’s profit by 8% to $4.1 billion.

The banks had warned that trading revenue would be weaker in comparison to a post-Brexit increase in the last year.

JP Morgan shares slipped in pre-market trading on the news.

At JP Morgan, sales rose by 2.7% to $26.2 bn, as the revenue from the trading business decreased by 21% year-on-year.

The gains were, however, increased, lifted by its consumer and retail lending division, which benefit from higher interest rates and strong credit-card sales and payment processing.

Chief executive Jamie Dimon said: “The global economy continues to do well and the US consumer remains healthy, with solid wage increases.”

At Citigroup, revenue was 2% higher at $18.2 bn year-on-year.

The bank said revenue from fixed-income trading is down by 16%, but in contrast to JP Morgan, its income from share trading was higher.