JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C) got the third-quarter reporting season for US banks underway on Thursday with strong consumer banking performances.
JPMorgan Chase Q3 earnings
JPM's earnings per share of $1.76 beat last year's $1.58 and topped expectations of $1.65 thanks to "steady core growth across the platform".
Revenues also beat market expectations, coming in at $25.3bn – up from the $24.7bn in the same period last year and just above the $25.2bn forecast on Wall Street.
Jamie Dimon, chairman and chief executive, noted in a statement: "For the first time, the firm led the nation in total US deposits as consumers and businesses continue to view us as their partner of choice."
Citigroup Q3 earnings
Citi's earnings per share of $1.42 beat the $1.24 earned in the same period last year and beat market forecasts of $1.32, thanks to loan growth in consumer and institutional businesses.
Revenues came in at $18.2bn, beating the $17.8bn of last year and market expectations of $17.9bn.
Chief executive Michael Corbat said in a statement: “We delivered a very strong quarter, showing the balance of our franchise by both product and geography and highlighting our multiple engines of client-led growth.”
Fixed income trading revenues drop
Revenues at both JPM’s and Citi’s fixed income trading businesses fell sharply, however, as benign market conditions presented few opportunities for profit.
In September, Dimon had warned that JPMorgan’s market trading revenue would drop 20% and Wall Street had been expecting weaker returns from banks' trading divisions this earnings season as volumes and volatility remained low.
JPMorgan's trading revenues fell 21% to $4.53bn as fixed income fell 27% and equity market dealings were down 4%.
At Citi, fixed income trading revenues fell 16% to $2.88bn, but this decline was partially offset by a 16% increase in equity trading income to $757m.