Morgan Stanley Had ‘De Minimis’ Commodities Revenue in Quarter

Morgan Stanley (MS), owner of the world’s biggest brokerage, had “de minimis” commodities revenue in the fourth quarter.

Fourth-quarter revenue from fixed-income and commodities sales and trading was $811 million, compared with a $493 million loss a year earlier, the New York-based company said today. Commodities revenue was “de minimis,” it said on a conference call with Chief Executive Officer James Gorman and Chief Financial Officer Ruth Porat.

“Commodities experienced meaningfully lower revenue in a difficult market,” Porat said on the call.

Commodities value-at-risk, a measure of how much the bank estimates it might lose in a single day, was $22 million, the same as in the third quarter, and down from $26 million a year earlier, Morgan Stanley said on its website.

Goldman Sachs Group Inc. (GS) said on Jan. 16 its net revenue in commodities were “significantly lower” in the fourth quarter. Its commodities value at risk was $20 million, down from $26 million a year earlier, it said on its website.

Morgan Stanley and Goldman Sachs, which previously dominated commodities trading among Wall Street banks, have lost ground to JPMorgan Chase & Co. and Barclays Plc, according to a Greenwich Associates survey published in March.

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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