Global investment banks are experiencing a significant downturn in their commodity trading revenues, marking the worst performance since before the pandemic. According to Coalition Greenwich, over 250 companies, including Goldman Sachs, Citigroup (C, Financial), and JPMorgan Chase, are expected to generate a combined net revenue of $10.6 billion this year, a decrease of nearly 20% from last year.
Angad Chhatwal, head of global macro markets at Coalition Greenwich, anticipates a further 3% decline in revenue by 2025 as trading activity diminishes. While representatives from Citigroup (C, Financial), Goldman Sachs, Morgan Stanley, and JPMorgan Chase did not comment on the declining outlook, an insider revealed that Citigroup (C) has expanded its North American commodities team by six members over the past year, indicating continued commitment to this sector.
