Credit Suisse reported a slump in commodities trading revenues in the third quarter, failing to repeat its success of the previous quarter, as it drastically cut risk exposure in a move similar to performance by many U.S. and European peers.

Some of the biggest price drops in years hit commodities markets in the third quarter as worries about the European debt crisis escalated and the dollar surged against the euro.

U.S. Wall Street heavyweights as well as European commodities trading major Barclays have already reported weaker contributions from commodities in the third quarter.

By contrast, Deutsche Bank reported record-beating performance in commodities trading.

The Swiss No.2 bank said revenues from trading commodity, emission and energy products were down to 69 million Swiss francs (49.6 million pounds) from 232 million francs in the second quarter of 2011, 74 million in the first quarter and 169 million in the same quarter last year.

In the first nine months of 2011, the bank, however, increased revenues in commodities trading by 186 percent to 375 million francs.

Credit Suisse surprised during a very challenging second quarter, which saw steep swings in commodities prices, by reporting that a fifth of its trading revenues came from commodities trading.

But with the decline in revenues from commodities in the third quarter, their share of the overall trading revenues declined to a more regular 4 percent.

As part of its results announcement Credit Suisse said on Tuesday it would cut another 1,500 jobs and scale back its investment banking business.

It said, however, that it would continue to build its commodities business and would downscale only structured long-dated unsecured trades, including in commodities.

It also said its average value at risk in commodities -- an equivalent of how much can be lost on a given trading day -- fell to 7 million francs from 12 million last quarter and 19 million a year ago.

(Philip Baillie; editing by Dmitry Zhdannikov and Christopher Johnson)