🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Top banks' commodities revenue up 6% in first quarter - report

Published 30/05/2019, 11:50
© Reuters.  Top banks' commodities revenue up 6% in first quarter - report
C
-
BAC
-
GS
-
JPM
-
BARC
-
CSGN
-
DBKGn
-
BNPP
-
SOGN
-
MS
-

LONDON (Reuters) - Commodities-related revenue at the 12 biggest investment banks was 6% higher in the first three months of this year than in the same period in 2018 thanks to increased earnings from oil, consultancy Coalition said on Thursday.

The increase follows a rebound in commodities revenue at the 12 banks last year from its lowest in more than a decade in 2017. That rise came from power, gas and base metals.

Banks' commodity revenue has been on a steady downward path since the global financial crisis as heightened government regulation and poor performance made them shrink their commodities businesses.

Commodities-related revenues for the top 12 banks last year were $3.6 billion, down from $15.9 billion in 2008, according to Coalition.

In the first quarter of this year, revenue from commodity trading, selling derivatives to investors and other activities in the sector was $1.2 billion, the financial industry analytics firm said.

"(The) revenue increase was mainly driven by oil. U.S. power and gas declined from strong results in 1Q18. Metals revenue declined due to the lack of one-off gains in base metals," Coalition said.

The 12 banks Coalition tracks for its quarterly reports are Bank of America (NYSE:BAC) Merrill Lynch, Barclays (LON:BARC), BNP Paribas (PA:BNPP), Citigroup (NYSE:C), Credit Suisse (SIX:CSGN), Deutsche Bank (DE:DBKGn), Goldman Sachs (NYSE:GS), HSBC, JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Societe Generale (PA:SOGN) and UBS.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.