OCC releases Q3 bank trading revenue report

The cumulative trading revenue of U.S. commercial banks and savings associations was $13.2 billion in the third quarter of 2023, the OCC said today in its quarterly report on bank trading and derivatives activities. Trading revenue for Q3 was $470 million, or 3.4%, less than in the previous quarter and $474 million, or 3.7%, more than in Q3 2022.

A total of 1,185 insured U.S. national and state commercial banks and savings associations held derivatives in Q3, according to the OCC. Four large banks held 87.8% of the total banking industry notional amount of derivatives. Net current credit exposure increased $35 billion, or 12.9%, to $308 billion in Q3. Derivative notional amounts decreased by $17.7 trillion, or 8%, to $204.2 trillion. Derivative contracts remained concentrated in interest rate products, which totaled $145.8 trillion or 71.4% of total derivative notional amounts.