US Bank Trading Revenues up 73% in 4th Qtr, driven by derivatives


The report, released yesterday by the Office of the Comptroller of the Currency (OCC) shows US commercial bank trading revenues were $4.4bln in 4th quarter, 73pct higher than the $2.5bln in Q4, 2011.

Summary of the report:

  • U.S. commercial banks trading revenues of $4.4 bln in the fourth quarter, 73% higher than $2.5 bln in the fourth quarter of 2011.
  • Trading revenues in Q4 of 2012 were 17% lower than Q3 of 2012 revenues of $5.3 bln.
  • Credit exposure from derivatives decreased in the Q4.  Net current credit exposure fell 3%, or $13 billion, to $386 billion.
  • Trading risk exposure, as measured by Value-at-Risk (VaR), averaged $503 million at the 5 largest trading companies in 2012, 23% lower than $655 billion in 2011.
  • Notional derivatives declined $3.8 trillion, or 2%, to $223 trillion.  Notionals have now declined in five of the past six quarters
  • Derivative contracts remain concentrated in interest rate products, which comprise 80% of total derivative notional amounts.  Credit derivatives, which represent 6% of total derivatives notionals, declined 6% to $13 trillion.
  • Derivatives trading dominated by four banks, representing 93% of the total banking industry notional amounts and 81% of industry net current credit exposure.
Commercial Bank Trading Revenues
                                           Commercial Bank Trading Revenues
Commercial Bank Trading Revenues by Qtr
                                          Commercial Bank Trading Revenues by Qtr
The full report available here, full of huge amount of data, tables and charts on derivatives revenues, positions and notionals held.

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