J.P. Morgan's Revenue Slides

J.P. Morgan Chase & Co. said its third-quarter revenue declined as the bank wrestled with volatile markets and continued low interest rates.

Shares dropped 1.4% to $60.70 after hours.

The largest U.S. bank by assets reported a profit of $6.8 billion, or $1.68 a share. That compares with a profit of $5.57 billion, or $1.35 a share, in the same period of 2014. Excluding $2.2 billion of tax benefits and other one-time items, earnings were $1.32 a share.

Analysts polled by Thomson Reuters had expected earnings of $1.37 a share.

Revenue fell to $23.54 billion. Analysts had expected $23.69 billion.

J.P. Morgan kicks off the third-quarter earnings season for large U.S. banks, offering investors and analysts a snapshot of a quarter that is expected to be characterized by a decline in bond trading amid summer market swings and continued pressure on revenue.

J.P. Morgan continued to cut its workforce last quarter, shedding 1,781 people to 235,678. That includes reductions across its consumer & community banking and corporate divisions. In May, The Wall Street Journal reported the bank began to eliminate more than 5,000 jobs as it looks to save on expenses.

Shares in J.P. Morgan hit an all-time record of $70.61 in July but have fallen 13% since then. For the year, they are down 1.7% compared with a 5.1% decrease in the KBW index of bank stocks over the same period.

Write to Emily Glazer at emily.glazer@wsj.com

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(END) Dow Jones Newswires

October 13, 2015 16:45 ET (20:45 GMT)

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