OCC Reports Fourth Quarter 2023 Bank Trading Revenue

WASHINGTON—The Office of the Comptroller of the Currency (OCC) reported cumulative trading revenue of U.S. commercial banks and savings associations of $11.6 billion in the fourth quarter of 2023. The fourth quarter trading revenue was $1.6 billion, or 11.8 percent, less than in the previous quarter and $2 billion, or 20.4 percent, more than a year earlier.

In the report, Quarterly Report on Bank Trading and Derivatives Activities, the OCC also reported that as of the fourth quarter of 2023:

  • a total of 1,185 insured U.S. national and state commercial banks and savings associations held derivatives.
  • four large banks held 87.4 percent of the total banking industry notional amount of derivatives.
  • credit exposure from derivatives decreased in the fourth quarter of 2023 compared with the third quarter of 2023. Net current credit exposure decreased $68.0 billion, or 22.0 percent, to $240.0 billion.
  • derivative notional amounts decreased in the fourth quarter of 2023 by $11.7 trillion, or 5.7 percent, to $192.5 trillion.
  • derivative contracts remained concentrated in interest rate products, which totaled $136.3 trillion or 40.8 percent of total derivative notional amounts.

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