The ten largest banks in the world experienced a marked decline in their commodities revenue throughout 2012, a new study has shown.
Research carried out by analytics firm Coaltion revealed that total revenues in this area slumped to $6 billion last year from $8 billion 12 months previously due to a combination of "low volatility and reduced client activity".
This represents a drop of 24 per cent and the first slip in this area since before the onset of the global downturn.
In addition, the downward movement proves that the source of banking revenues is changing as lenders have to adjust their business models in order to deal with the evolving regulatory landscape.
"Performance was also subdued by ongoing concerns about increased regulation and capital sensitivity, pushing banks to reevaluate their commodities strategies," Coalition noted.
By contrast, the banks saw their revenues from investment banking climb for the first time in three years to a total of $159 billion.
By Tony Aynsley