Trading revenue slips during third quarter by 15.5% for banks, savings associations

Trading revenue was down 15.5% — or $1.3 billion – in the third quarter from the previous quarter at commercial banks and savings associations, their federal regulator said Monday.

In its Quarterly Report on Bank Trading and Derivatives Activities, the Office of the Comptroller of the Currency (OCC) noted that total trading revenue for the quarter was $6.8 billion – which was also down from a year before, when it came in at $6.9 billion (a 1.2% reduction).

The agency also reported that:

  • Four large banks held 89.3% of the total banking industry notional amount of derivatives, but, overall, 1,357 insured U.S. national and state commercial banks and savings associations held derivatives at the end of third quarter 2021.
  • Derivative contracts remained concentrated in interest rate products, which represented 71.4% of total derivative notional amounts.
  • The percentage of centrally cleared derivatives transactions decreased quarter-over-quarter to 39.0% in third quarter 2021.

OCC Reports Third Quarter 2021 Bank Trading Revenue