Two of America’s biggest banks have been hit by a drop in bond trading revenue inside the three months to September, however 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 which trading revenues would likely be weaker compared to a post-Brexit surge last year.
The banks’ shares slipped in early trade on the news.
Executives at both banks said they were encouraged by increasing strength inside the global economy as well as were seeing benefits via gradually rising interest rates.
However, both banks took a hit via recent natural disasters. JP Morgan said This kind of expected recent hurricanes inside the US to lead to about $55m in losses, while Citigroup predicted about $100m in losses, including the impact via earthquakes in Mexico.
The two are also setting more money aside to cover credit losses, although executives at both banks told analysts they were not worried about the economic health of consumers.
JP Morgan chief executive Jamie Dimon said: “The global economy continues to do well as well as the US consumer remains healthy with solid wage growth.”
Revenues at JP Morgan rose 2.7% to $26.2bn, as revenue via trading fell 21% year-on-year.
However, profits were lifted by its consumer as well as retail lending division, which benefited via higher interest rates as well as strong credit card sales as well as payment processing.
At Citigroup, revenues were $18.2bn, up 2% via a year earlier, helped in part by its international consumer business.
The bank said revenue via fixed income trading fell 16%, however unlike JP Morgan its revenue via equities trading was higher.
Both banks beat profit expectations, however analysts were not expecting their shares – which have gained This kind of year – to change significantly.
Citigroup share prices have increased 20% since January, while shares in JP Morgan have risen by about 10%.