OCC reports bank trading revenue up quarterly and year over year; credit exposure also up

A 1.4% increase in bank trading revenue from the previous quarter – and 16% rise from a year earlier – was reported Tuesday for second quarter 2024 by the national bank regulator.

The Office of the Comptroller of the Currency (OCC), in its Quarterly Report on Bank Trading and Derivatives Activities, reported $15.8 billion in cumulative trading revenue of U.S. commercial banks and savings associations during the second quarter of 2024, up $218 million from the previous quarter and $2.2 billion from the second quarter of 2023.

As of second quarter 2024, 1,231 insured U.S. national and state commercial banks and savings associations held derivatives, according to the report. Also:

  • Four large banks held 88.1% of the total banking industry notional amount of derivatives.
  • The same four banks held 65% of industry net current credit exposure (NCCE).
  • Credit exposure from derivatives increased in the second quarter compared with the first quarter of 2024. NCCE grew by $9.0 billion, or 3.4%, to $260.0 billion.
  • Derivative notional amounts increased in the second quarter of 2024 by $2 trillion, or 1%, to $208.1 trillion.
  • Derivative contracts remained concentrated in interest rate products, which totaled $145.0 trillion or 69.7% of total derivative notional amounts.

OCC Reports Second Quarter 2024 Bank Trading Revenue