OCC: Trading revenue decreased in second quarter compared to first quarter

Commercial banks reported total trading revenue of $13.7 billion in the second quarter of 2023, down 22.4% from the previous quarter but up 31.7% compared with the year before, according to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities released today.

A total of 1,186 insured U.S. national and state commercial banks and savings associations held derivatives, according to the report. Four large banks held 87% of the total banking industry notional amount of derivatives. Derivative contracts remained concentrated interest rate products, which totaled $164.1 trillion or 73.9% of total derivative notional amounts.