Bank trading revenue up 65.9% during Q1, OCC reports

U.S. commercial banks and savings associations reported $10.5 billion in trading revenue for the first quarter of 2021, up $4.2 billion, or 65.9%, from the previous quarter, the Office of the Comptroller of the Currency (OCC) said Monday.

Compared with Q1 2020, the agency said, Q1 2021 trading revenue was up $3.8 billion, or 56.6%.

The OCC also reported that:

  • Credit exposure from derivatives decreased in the first quarter of 2021 compared with the fourth quarter of 2020. Net current credit exposure (NCCE) decreased $61.0 billion, or 12.1%, to $446.0 billion.
  • While four large banks held 89% of the total banking industry notional amount of derivatives, a total of 1,385 insured U.S. commercial banks and savings associations held derivatives at the end of first quarter 2021.
  • The percentage of centrally cleared derivatives transactions increased quarter-over-quarter to 38.2% in first quarter 2021.
  • Derivative contracts remained concentrated in interest rate products, which totaled $137.4 trillion or 72.7% of total derivative notional amounts.
  • Derivative notional amounts increased in the first quarter of 2021 by $25.2 trillion, or 15.4%, to $189.0 trillion.

OCC Reports First Quarter 2021 Bank Trading Revenue