* Cites poor performance in investor products, power and gas
* Full-year commodities revenue seen down 14 pct
* Says inventory financing remains robust
LONDON, Nov 14 Commodities revenue slid by 18
percent in the first nine months of the year at the top 10
investment banks, partly because of poor performance in investor
products and power and gas, a consultancy said on Thursday.
Many banks have reduced their commodities business, hit by
increasing regulation and higher capital requirements after the
global financial crisis.
Revenue from commodities for top banks fell to $4 billion
during the first three quarters of 2013, down from $4.9 billion
in the same period last year, London-based financial industry
analytics firm Coalition said in a report.
Full-year commodity revenues are forecast to decline by 14
percent to $4.7 billion, it added.
Poor performance in investor products and power and gas
continued into the third quarter of 2013 while oil revenues were
in line with the first half of the year and metals remained
stable, Coalition said.
"Across commodities products, however, inventory financing
activities were more robust."
Deutsche Bank told Reuters last month that
inventory financing in Asia was growing at 10-20 percent a year
and has expanded into a business where up to $20 billion of
short-dated deals are in place at any one time.
Wall Street investment banks typically do not break down
their commodity revenue, preferring to cite it as part of the
broader fixed income, currency and commodities category (FICC).
Overall FICC revenues in the first nine months dropped by 19
percent to $60 billion and the full-year figure is expected to
come in at $73.6 billion, down 20 percent, Coalition said.
Last year investment bank Goldman Sachs took the top
spot for commodities revenue, followed by JPMorgan Chase
and Morgan Stanley, Coalition said in March.
The other banks Coalition tracks are: Bank of America
Merrill Lynch, Barclays, BNP Paribas,
Citigroup, Credit Suisse, Deutsche Bank and UBS
The 19-commodity Thomson Reuters-Jefferies CRB index
has shed 7.3 percent so far this year.