The cumulative trading revenue of U.S. commercial banks and savings associations was $11.6 billion in the fourth quarter of 2023, the Office of the Comptroller of the Currency said today in its quarterly report on bank trading and derivatives activities. Trading revenue for Q4 was $1.6 billion, or 11.8%, less than in the previous quarter and $2 billion, or 20.4%, more than in Q4 2022.
A total of 1,185 insured U.S. national and state commercial banks and savings associations held derivatives in Q4, according to the OCC. Four large banks held 87.4% of the total banking industry notional amount of derivatives. Net current credit exposure decreased $68 billion, or 22%, to $240 billion in Q4. Derivative notional amounts decreased by $11.7 trillion, or 5.7%, to $192.5 trillion. Derivative contracts remained concentrated in interest rate products, which totaled $136.3 trillion or 40.8% of total derivative notional amounts.
