NEW YORK, Jan 14 - JPMorgan Chase & Co slightly
raised its commodity trading risk for the first time since last
spring in the fourth quarter, even as it exits the physical
commodities trading business, its quarterly results showed on
Value-at-Risk (VaR) in commodities at JPMorgan, the largest
U.S. bank, rose to $15 million in the fourth quarter, from $13
million, unchanged during the previous two quarters, and up $1
million from the fourth quarter of 2012. VaR is the most that
can be lost on 95 percent of trading days within a given period.
JPMorgan, typical of Wall Street banks, groups its
commodities revenue under the fixed income category and does not
break out the sector, often leaving VaR as one of its key
risk-reward indicators that can measure commodities exposure.
For the fourth quarter, fixed income revenue was $3.2
billion, down from $3.4 billion in the third quarter and in line
with the fourth quarter of 2012.
The bank said in July it would sell its physical commodities
business, and expects to complete a sale in the first quarter of
The bank said it will retain its financial commodity trading
business to serve client needs.