OCC: Banks’ trading revenue up 34.2% for quarter, down 11.1% year over year

First-quarter trading revenue totaled $15.6 billion in the first quarter for U.S. commercial banks and savings associations, up 34.2%, from the previous quarter but down 11.1% from the same period one year ago, according to recent data from the national bank regulator.

The Office of the Comptroller of the Currency (OCC) said first-quarter trading revenue was $4 billion more than the fourth quarter of 2023 but $2 billion less than the first quarter of 2023.

Again, four large banks held most of the industry notional amount of derivatives – this time, 87.6% of the total – during the first quarter. They also represented 64.5% of industry net current credit exposure (NCCE), the agency said.

The report also shows:

  • Industry NCCE increased $11.0 billion, or 4.6%, to $251.0 billion, from the fourth quarter of 2023.
  • Derivative notional amounts increased in the first quarter of 2024 by $13.6 trillion, or 7.1%, to $206.1 trillion. Derivative contracts remained concentrated in interest rate-products, which totaled $144.4 trillion, or 70.1% of total derivative notional amounts.

Overall, derivatives were held by 1,208 insured U.S. national and state commercial banks and savings associations, the report shows.

OCC Reports First Quarter 2024 Bank Trading Revenue