Morgan Stanley (MS:US), 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:US) 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.
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