Commodities Revenue at 10 Top Banks Seen Down 54% in 1st Quarter

Commodities revenue at the 10 largest banks fell 54 percent in the first quarter from a year earlier, according to analytics company Coalition.

Commodities revenue of the top banks in the Coalition index dropped to $1.2 billion from $2.6 billion a year earlier, the London-based Coalition said in an e-mailed report today. Revenue fell 24 percent last year, it said in February.

“Low volatility, reduced client activity, and a shift of institutional investment out of the asset class meant index revenues halved,” Coalition said in response to questions from Bloomberg. “Weak performance, capital constraints and regulatory challenges caused some banks to re-evaluate the scope and scale of their commitment to parts of the commodities business.”

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