LONDON, Nov 14 (Reuters) - Active trading on oil markets wasa bright spot in otherwise lacklustre commodities revenue growthat the top investment banks in the nine months to October, aconsultancy said.
Revenue from commodities for the leading 10 banks rose 8percent to $4.3 billion, sharply down from the 21 percent gainin the first half, London-based financial industry analyticsfirm Coalition said in a report on Friday.
Coalition, which did not break out third quarter revenue,said turnover was affected by the continued withdrawal of somebanks from the commodities sector, while the metals businesscontinued to be hit by regulatory pressures and a slowdown intop consumer China.
"Energy's performance was more favourable, due to increasedvolatility in oil prices," the consultancy said.
Higher volatility in financial markets typically opens upmore trading opportunities. Brent crude oil has tumblednearly 30 percent this year to a four-year low below $80 abarrel, weighed down by excess supplies and lacklustre demand.
Banks' commodities revenue has been steadily declining inrecent years as some institutions have slashed exposure andothers have shut commodities units.
Credit Suisse said in July it was winding downcommodities trading, joining the likes of Deutsche Bank, JPMorgan and Barclays in eitherexiting or significantly downsizing their activities incommodities.
The top banks' commodities revenue came in at $4.5 billionlast year, less than a third of the $14.1 billion they racked upin 2008 at the height of the commodities boom.
Coalition tracks the following banks: Bank of AmericaMerrill Lynch, Barclays, BNP Paribas,Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley and UBS. (Reporting by Eric Onstad; Editing by Michael Urquhart)