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Top banks’ 2019 commodities revenue climbs 11% -consultancy Coalition

Commodities-related revenue at the world’s 12 biggest investment banks gained 11% last year compared to 2018 due to buoyant oil and metals trading, consultancy Coalition said.

Commodities revenue at the 12 banks extended its rebound from 2018, when revenue jumped 45% from its lowest in more than a decade in 2017. That rise came from power, gas and base metals.

During 2019, revenue from commodity trading, selling derivatives to investors and other activities in the sector was $4 billion, the financial industry analytics firm said.

“Commodities improvement came on the back of higher revenues from oil trading and metals,” Coalition said in a statement.

Commodities revenue had been on a steady downward trajectory since the global financial crisis as heightened government regulation and poor performance made the top banks shrink their commodities businesses, peaking at $15.9 billion in 2008, according to Coalition.

The 12 banks Coalition tracks for its quarterly reports are Bank of America, Barclays, BNP Paribas , Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan , Morgan Stanley, Societe Generale and UBS.
Source: Reuters (Reporting by Eric Onstad; editing by David Evans)

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