Bear Stearns' net profits slumped by almost 20% to $283m (€229m) in the three months to the end of August on the back of lower capital markets revenues compared with the second quarter of 2004.

The US bank revealed on Wednesday that net profits for the third quarter were 19% below the $347.8m in the second quarter and 10% down on the $313.4m figure reported in the third quarter of last year. However, net revenues of $1.5bn outstripped last year's third quarter level by 3%.