New York City's two largest bank holding companies reported third quarter earnings today and the results reversed the pattern of recent years. Citicorp reported an unusual 11 per cent dip in its results for the quarter while arch rival Chase Manhattan Corp. accelerated its earnings recovery with a 41 per cent increase.

Merrill Lynch & Co. and E. F. Hutton Group Inc., the parent companies of the country's two largest publicly held brokerage firms, meanwhile reported that their earnings respectively declined 35 per cent and 11 per cent for the third period, reflecting the sliding state of the stock market.

Citicorp, holding company for the world's second largest bank said third quarter operating earnings dropped to $87.8 million (70 cents a share) from the $98.7 million (79 cents) registered in the same period last year. Net income after securities gains was $88.7 million (71 cents), down 9 per cent compared with $97.8 million (78 cents) earned a year ago.

This put operating earnings for the nine months at $288 million ($2.30), down 2 per cent from $293.4 million ($2.36) earned in the same period in 1976.

Citicorp said expansion and modernization costs - including electronic funds transfer research - plus losses mainly related to real estate, increases in employee salaries and benefits, and generally lower interest reate spreads worldwide (with U.S. loan demand sluggish) all contributed to the earnings drop.

Chase Manhattan, meanwhile, said its quarterly and nine month income was impacted by an increase in overseas net interest income resulting from higher loan volume which was only partially offset by narrower interest rate spreads.

For the third quarter, Chase Manhattan earned $31.1 million (91 cents a share) compared with $22.1 million (69 cents) for the same period last year. After securities transactions net income for the quarter came to $31.5 million (93 cents), up 32 per cent from $23.9 million (75 cents) the year before.

Chase Manhattan nine months operaing net totaled $87.1 million ($2.65), up 10 per cent from the year before when the holding company for the nation's third largest bank earned $79.4 million ($2.48). After securities gains, net income came to $90 million ($2.74), up 13 per cent from $79.4 million ($2.48) for the comparable period in 1976.

Merrill Lynch & Co. third quarter earnings totaled $11.1 million (32 cents), down 35 per cent from the $17 million (49 cents) earned in the comparable 1976 quarter. But revenues increased 15 per cent to $296.2 million.

For the nine months, Merrill Lynch net income totaled $36.1 million ($1.03), down 55 per cent from net income of $80.2 million ($2.27) for the first three quarters of 1976. Revenues for the period were basically flat at $819.7 million.

E. F. Hutton Group meanwhile registered earnings of $4 million (69 cents) for the third quarter, down 11 per cent from income of $4.5 million (74 cents) for the same period a year ago. For the nine months net income totaled $13.1 million ($2.20), down 30 per cent from the comparable period last year when the firm earned $18.5 million ($3.06). Revenue for the nine months, however, increased 5 per cent to $248.9 million.