Goldman Ranked No. 1 in Commodities in 2012, JPMorgan Second

Goldman Sachs Group Inc. ranked No.1 in commodities revenue in 2012, according to analytics company Coalition.

JPMorgan Chase & Co. had the second-biggest revenues from commodities and Morgan Stanley came third, London-based Coalition said in a report e-mailed today. Spokesmen for the three banks declined to comment. Barclays Plc and Bank of America Merrill Lynch were the strongest performers when measured against 2011 returns, according to the report.

Commodities revenue at the 10 largest banks slumped 24 percent last year to $6 billion, Coalition estimated in February. The Standard & Poor’s GSCI Spot Index of raw materials climbed less than 0.3 percent in 2012, the worst performance in four years, and is little changed in 2013. The gauge’s 100-day historic volatility fell to as low as 14.1 percent in May, from as much as 23.8 percent in January 2012, data compiled by Bloomberg show.

“Low volatility and reduced client activity” spurred a drop in commodity revenues in 2012, Coalition said in a report last month. Increasing concerns about regulation and capital sensitivity also led banks to re-examine commodity strategies, it said. The Volcker rule ban on proprietary trading and rules designed to increase transparency in derivatives markets are among regulations mandated by the Dodd-Frank Act awaiting completion by U.S. authorities.

Tier Two

Deutsche Bank AG, Barclays and UBS AG were among “tier two” performers, rated No. 4 to No. 6 for commodity revenues, Coalition said today without providing the banks with specific rankings. BofAML, Citigroup Inc. and Credit Suisse were in “tier three,” and Royal Bank of Scotland Group Plc wasn’t ranked, it said.

Barclays said in February it would shut its speculative agricultural trading, Deutsche Bank has cut power and natural gas traders in the U.S. and Europe, and UBS is ceasing to trade oil, industrial metals and agricultural products.

JPMorgan was the largest investment bank, with $24.1 billion in revenue and $14.4 billion in fixed income, currencies and commodities, Coalition said. Goldman Sachs was the second-largest investment bank, followed by Citi, BofAML and Deutsche Bank tied for the third-largest ranking, according to the report.

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