JPMorgan Chase & Co. (JPM:US), the largest U.S. bank by assets, generated the most revenue from commodities out of the 10 biggest investment banks in the first six months this year, according to Coalition, an analytics company.
Goldman Sachs Group Inc. (GS:US) ranked second and Morgan Stanley (MS:US) was third, Coalition, based in London, said in a report today. For all of last year, Goldman had the most revenue from commodities, followed by JPMorgan and Morgan Stanley. Figures for individual banks weren’t disclosed.
Commodity prices dropped 5.5 percent in the first half as Chinese growth slowed and supply surpluses emerged. JPMorgan said in July that it plans to get out of the business of owning and trading physical commodities.
Revenue from raw materials fell 20 percent in the first half to $2.7 billion and dropped 24 percent for all of last year, to $6 billion, Coalition said. Last year’s total was less than half the level in 2008, when oil climbed to a record. Spokesmen for JPMorgan, Goldman and Morgan Stanley declined to comment about their commodity rankings.
Morgan Stanley Chief Executive Officer James Gorman said this year that he’s open to different structures in his bank’s commodities unit. The firm held talks last year with Qatar’s sovereign-wealth fund about selling a stake in the business.
Goldman Sachs’s physical commodities unit is a “core” business that provides a crucial service to clients, Chief Executive Officer Lloyd C. Blankfein said yesterday.
JPMorgan was the largest investment bank by revenue in the first six months this year and also ranked first for fixed income, currencies and commodities as a group, Coalition said.
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