Analysts were expecting the company to report earnings per share of $1.32 on revenue of $17.90 billion for the quarter. The banking giant, however, also reported a 27 percent year-over-year decline in fixed income trading revenue.
Executives at the largest USA bank touted the diverse mix of businesses that allow JPMorgan to weather a dip in one area or another, and downplayed a 27 percent drop in bond trading revenue even though weakness has continued into the fourth quarter.More news: Western Digital Announces Tech Breakthrough for Hard Drives
"The results were solid but not exceptional", said Morningstar analyst Jim Sinegal.
As of 1409 BST, shares of Citi were up 0.73% to $75.49. Annualized return on equity was 7.3 percent. The Labor Department said USA producer prices rose 0.4 percent last month and 2.6 percent in the 12 months through September. He said, in the end, September was better than anticipated.Citi's shares were down 2 percent in late morning trade, the worst performer among the major USA banks.
AT&T tumbled more than 4 percent after the No. 2 US wireless carrier said it lost 90,000 USA video subscribers in the third quarter due to intense competition and the impact of recent hurricanes.More news: Jordan predicts 'garbage' National Basketball Association teams
Like its Wall Street rival JP Morgan Chase & Co (NYSE:JPM) - which reported its results earlier today - Citi recorded a 16% year-on-year decline in fixed income trading revenue which totalled US$2.88bn.
Wall Street banks have been grappling with bond market challenges for most of the past seven years, as client volumes have been depressed for a number of reasons and new regulations have restricted certain activities and made trading more expensive.
Energy stocks declined with the price of oil amid concern about increased U.S. production at a time the world's major oil producers are trying to curb output. While bond trading was down 16 percent, stock trading was up 16 percent and security services were up 12 percent. BRANDED CARDSCiti's global consumer banking business had a mixed quarter as growth in Asia and Latin America was overshadowed by a drop in the United States.More news: Baird Reiterates "Hold" Rating for Juniper Networks, Inc. (JNPR)
During a call with reporters, Lake cited "the benefits of diversification and scale", while Daniel Pinto, who runs JPMorgan's investment bank, pointed to "balanced strength across diverse businesses" in a memo to employees.
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