The big earnings story so far has been the drop in revenue at the top banks. At Citigroup (NYSE: C), revenues fell 26 percent to $22.1 billion from $30.0 billion a year ago. At Bank of America (NYSE: BAC), second quarter revenues dropped 11 percent to $29.2 billion from $32.8 billion a year ago. At JPMorgan (NYSE: JPM), revenue declined 8 percent, to $25.6 billion, in the second quarter, from $27.7 billion in the period a year ago.

Much of this of course reflects trading activity, which everyone expected to be poor--but perhaps not this poor. Citigroup's revenue from securities and banking division was down 11 percent year over year and 26 percent sequentially. At Bank of America, revenue from fixed-income, currency and commodity trading declined to $2.32 billion from a record $5.52 billion in the first quarter and $2.68 billion a year ago. All of this should add a note of caution as the world awaits results from Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS), both coming soon.

The big revenue drop-off masked some really good news. Credit quality is on the mend. And most banks released some loan-loss reserves. At Citigroup, the release of $1.5 billion was the first time in three years. 

For more:
- here's a look at Citigroup's earnings
- here's a look at Bank of America's earnings

Related Articles:
Citigroup (C) Earnings Q2 2010
Bank of America (BAC) Earnings Q2 2010
JPMorgan beats estimates handily
Uncertainty lingers over earnings at Goldman Sachs, Morgan Stanley
Analyst research still woeful on earnings