(Reuters) - Goldman Sachs Group Inc’s (GS.N) commodity market trading risk measure, known as Value-at-Risk (VaR), fell for a second quarter in the three months through September, the bank said on Thursday, as it reported a sharp yearly drop in fixed-income, currency and commodity trading performance.
The Wall Street bank’s VaR indicator was $17 million, or down $2 million from the prior quarter and down $6 million from the same period a year earlier. That marked its lowest VaR value since the third quarter of 2013.
Quarterly revenue from fixed income, currency and commodities fell 33 percent to $1.46 billion, the biggest year-over-year drop since the third quarter of 2013.
The results come after a slump in China’s stock market amid worries over growth in the world’s second-biggest economy. That triggered a fresh rout across industrial raw materials from crude oil to copper. Lack of volatility curbed investors’ appetite to trade.
The VaR is often a key risk-reward indicator that can measure the commodities exposure of Wall Street banks, as they typically group commodities revenue under the fixed income category and do not break out the sector.
Reporting by Luc Cohen and Josephine Mason in New York; Editing by Bernadette Baum