UPDATE 2-Morgan Stanley commodity results worst since 1995

Fri Jan 18, 2013 9:32pm GMT

Related Topics

Quotes

   

NEW YORK Jan 18 (Reuters) - Morgan Stanley said on Friday its fourth quarter commodities results were the worst in nearly two decades, joining arch rival Goldman Sachs in singling out the sector for a particularly weak performance during the quarter.

"Commodities results declined meaningfully in a challenging market," the Wall Street bank said in a statement accompanying its results.

Morgan Stanley Chief Executive James Gorman told a conference call that commodities trading posted their worst results since 1995 in the fourth quarter.

Morgan Stanley's Value-at-Risk (VaR) in commodities stood at $22 million in the fourth quarter, unchanged from the previous three months but down from $26 million in the 2011 fourth quarter.

Earlier in the week, Goldman had reported "significantly lower" net revenues from commodities for the quarter.

Goldman said its commodities VaR fell to $20 million in the fourth quarter, from $22 million in the third quarter and from $26 million a year ago.

JPMorgan Chase & Co, a rival to Morgan Stanley and Goldman, said its commodities VaR stood at $14 million in the fourth quarter compared with $13 million in the third quarter and $20 million in the fourth quarter of 2011.

Average commodities VaR by quarter:

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4'10

2012 2011 * Goldman Sachs 20 22 20 26 26 25 39 37 23 * JPMorgan 14 13 13 21 20 15 16 13 14 * Morgan Stanley 22 22 34 31 26 32 29 33 26 * Bank of America n/a 12.5 11.9 13.1 12.1 15.7 23.7 23.9 17.7 ** Citigroup n/a 15 18 14 18 21 25 23 27 * Value-at-Risk based on a 95 percent confidence level ** Value-at-Risk based on a 99 percent confidence level Note: Bank of America and Citigroup have reported fourth-quarter results. Their VaR numbers are typically issued in separate filings known as 10Q.

FILED UNDER: