Trading revenue climbed nearly 20% in ’21; big banks continue dominance in derivatives

Trading revenue was up nearly 20% at banks and savings associations at the end of 2021 from the previous year, the regulator of national banks and savings associations said Friday.

The Office of the Comptroller of the Currency (OCC) said trading revenue was $7.5 billion at the end of the fourth quarter of last year, up 19.4% from the previous year’s $6.3 billion reported at the end of the final quarter.

In other areas, the OCC said:

  • Four large national banks held 89.2% of the total banking industry notional amount of derivatives. Those are: JP Morgan Chase; Citibank; Bank of America; and Goldman Sachs Bank USA. However, the agency added, 1,306 insured U.S. national and state commercial banks and savings associations held derivatives at the end of fourth quarter 2021.
  • Derivative contracts remain concentrated in interest rate products, which represented 71.1% of total derivative notional amounts.
  • The percentage of centrally cleared derivatives transactions increased quarter-over-quarter to 39.4% in fourth quarter 2021.

OCC Reports Fourth Quarter 2021 Bank Trading Revenue