J.P Morgan Chase and Citigroup reported slightly higher profits Thursday due to increased lending and higher interest rates, opening third-quarter reporting season on a solid note. But revenues in some key markets divisions were again weak due to limited volatility and a shift among customers to automated trading platforms. The banks also said a string of US hurricanes and natural disasters weighed on activity.
"J.P Morgan Chase delivered solid results in a competitive environment this quarter with steady core growth across the platform," said chief executive Jamie Dimon. JPMorgan, the biggest US bank by assets, reported $6.7 billion in profits for the quarter ending September 30, up seven percent from the year-ago period. Revenues were $25.3 billion, up three percent.
The numbers were similar at Citigroup, which also scored a seven percent rise in profits to $4.1 billion. Revenues edged up two percent to $18.2 billion. Both banks cited the gains from higher interest rates following Federal Reserve rate hikes, which permit financial companies to charge more for loans.
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