Awards for Excellence 2012: Best Commodities House
An aggressive organic growth strategy has propelled the firm into the top tier of the commodities trading market.
Best Commodities House: Deutsche Bank
Also nominated: Barclays, JPMorgan and Morgan Stanley
Barclays and JPMorgan most recently may have led the way in taking the fight to Goldman Sachs and Morgan Stanley in the global commodities market, but a new contender has emerged and is taking on the ruling hierarchy.
In the past year, Deutsche Bank has broken into the commodities firmament and is now showing the type of momentum that suggests it can continue to take market share from the once dominant quartet.
Faced with heightened competition between banks for deal flow, low prices and slim trading volumes, Deutsche’s commodities business still attracted a healthy number of new clients and revenues hit a record.
Although the bank does not break out earnings for commodities, analysts estimate revenues hit about $1 billion in 2011 on the back of successful trades in aluminium, precious metals and gas and power.
With Goldman Sachs and Morgan Stanley generating revenues estimated to be between $1.5 billion and $2 billion from commodities trading, Deutsche can claim to be a top-tier house by revenues.