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.