Commercial banks reported total trading revenue of $5.5 billion in the second quarter of 2015, 28.1 percent lower than in the first quarter and 14.2 percent lower than a year prior, according to the OCC’s Quarterly Report on Bank Trading and Derivatives Activities released yesterday.
“The expected seasonal decline in trading revenue showed up on schedule in the second quarter,” said OCC official Kurt Wilhelm. “The fall in second quarter trading revenue was a little more than the average 25 percent decline we’ve seen in second quarters since 2009, as there is still pressure on revenue from interest rate and foreign exchange products.”
The net current credit exposure fell 19 percent to $406 billion in the second quarter, the report said. The notional amount of derivatives banks held fell by 3 percent to $198 trillion.