LONDON, March 5 (Reuters) - Commodities-related revenue at
the world's 12 biggest investment banks surged by 85% last year
compared to 2019 as oil and metals trading made further strong
gains, consultancy Coalition said on Friday.
Commodities revenue at the 12 banks climbed for a third
successive year after several years of declines, hitting its
lowest for more than a decade in 2017.
During 2020, revenue from commodity trading, selling
derivatives to investors and other activities in the sector rose
to $7.5 billion, the financial industry analytics firm said.
"In metals, revenues from precious metals multiplied as
investors sought safe havens from the volatile markets and
uncertainty caused by the pandemic," Coalition said in a
statement.
"In energy, oil was the key performer with continued growth
throughout the year driven by large one-off gains and increased
corporate hedging activity," the consultancy said.
One of the banks that Coalition tracks, JPMorgan,
alone had earned record revenue of around $1 billion from
trading, storing and financing precious metals to date in 2020,
two sources familiar with the matter told Reuters in November.
The other 11 banks Coalition tracks for its quarterly
reports are Bank of America, Barclays, BNP
Paribas, Citigroup, Credit Suisse,
Deutsche Bank, Goldman Sachs, HSBC,
Morgan Stanley, Societe Generale and UBS
.
(Reporting by Eric Onstad
Editing by Chizu Nomiyama)
HSBC Holdings (HSBA)
Barclays (BARC)