- That Goldman Sachs (NYSE:GS) is about to post another weak quarter of trading revenue isn't news, and early Q4 reporters JPMorgan (NYSE:JPM) and Citigroup (NYSE:C) have already produced sluggish numbers. Things look especially bad in the commodities business.
- According to Bloomberg, Goldman tomorrow morning will report about a 75% decline in commodity results for all 2017 - the worst year in the history of the bank, and it would put revenue at the Goldman commodity unit behind that of competitor Morgan Stanley (NYSE:MS) (where revenue rose about 20% last year).
- For longer-term perspective, commodity revenue for Goldman in 2008 neared $3.5B, and was roughly $1.25B as recently as 2015. It's expected to come in at $250M in 2017 (Goldman doesn't break out commodity revenue; these numbers are compiled by Compass Point and Bloomberg).
- So far in 2018, things are looking up a bit, in part thanks to the cold snap and related binge in natural gas trading.
- Goldman investors are looking well past this bit of news, with shares up 1.2% today.
- Now read: Morgan Stanley: Will Wealth Management Come To The Rescue Again?
Original article