Citigroup Inc reported a marginal fall in adjusted quarterly profit from ongoing businesses after the Federal Reserve's decision to continue its bond-buying program for longer than expected slowed trading by clients.

Citigroup shares were down 1 percent at $49.10 in premarket trading as the earnings fell short of market expectations.

Third-quarter net income, adjusted for certain items, slipped to $3.26 billion, or $1.02 per share, from $3.27 billion, or $1.06 per share a year earlier, the third-largest U.S. bank said on Tuesday.

Analysts on average had expected earnings of $1.04 per share on an adjusted basis, according to Thomson Reuters I/B/E/S.

Revenue from bond market trading fell 26 percent on the same basis.

Bond trading volume across much of Wall Street slowed during the quarter after the Federal Reserve decided to continue its program of bond buying for longer than expected.

JPMorgan Chase & Co reported on Friday that its revenue from fixed-income trading fell 8 percent in the quarter.

Citigroup had better results in equity trading, but those gains were not enough to offset the decline in bond trading as revenue from the bank's securities and banking business fell 10 percent on an adjusted basis.

Revenue for the whole company fell 5 percent to $18.22 billion, excluding items.

Adjustments excluded a loss in the prior year related to the sale of the bank's interest in brokerage Morgan Stanley Smith Barney, as well as the impact of tax benefits and changes in the value of Citigroup debts and those of trading partners.

"While many of the factors which influence our revenues are not within our full control, we certainly can control our costs and I am pleased with our expense discipline and improved efficiency year-to-date," Chief Executive Michael Corbat said.

Total cost of credit fell 25 percent to $1.96 billion.

Under generally accepted accounting principles, net income rose to $3.23 billion, or $1.00 per share, from $468 million, or 15 cents per share, a year earlier.

(Reporting by David Henry in New York and Tanya Agrawal in Bangalore; Editing by Ted Kerr)