Home World Business Bond trading slump hits Citigroup and JPMorgan Chase

Bond trading slump hits Citigroup and JPMorgan Chase

JP Morgan Chase HQ in New YorkImage copyright Reuters

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

JP Morgan Chase profits rose 7% to $6.7bn (£5.1bn) compared with the same period last year, while Citigroup profits were up 8% at $4.1bn.

The banks had warned that trading revenues would be weaker compared to a post-Brexit surge last year.

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

At JP Morgan revenues rose just 2.7% to $26.2bn, as revenue from trading fell 21% year-on-year.

However, profits were boosted lifted by its consumer and retail lending division, which benefited 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 growth.”

At Citigroup, revenues were 2% higher at $18.2bn year-on-year.

The bank said revenue from fixed income trading fell 16%, but unlike JP Morgan, its revenue from equities trading was higher.


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