Goldman Sachs drops from top three banks for commodities revenue

Goldman Sachs is no longer among the top three commodities banks, according to Reuters.

The US-based investment bank has been in the top three chart since Coalition, a data analytics firm, started compiling figures in 2010. In 2017 the top three banks for commodities-related revenue were JPMorgan, Morgan Stanley and Citibank.

Last year saw Goldman Sachs post one of its worst results on record. The bank has recently appointed a new commodities finance team to improve performance by developing a stronger corporate client base.

The banks with the largest revenue in commodities for 2017 were JPMorgan and Morgan Stanley, according to Coalition. In the previous year, Goldman Sachs had top ranking while JPMorgan and Citibank were in third place.

More stringent regulation and poor performance have been exerting downward pressure on revenue from commodities trading in recent years. In 2017 the sector stood at $4.3bn, the lowest in a decade. At the peak of the commodities cycle in 2008, revenue stood at $15.9bn.