Bank trading revenue trends up at end of ’22, but lags third quarter performance

Bank trading revenue in the fourth quarter of 2022 was up from the same quarter of the previous year by nearly 34% to $9.6 billion, even though the revenue was down from the previous 2022 quarter, the national bank regulator said Friday.

In a release, the Office of the Comptroller of the Currency (OCC), noting that only four banks hold 88.2% of the total bank trading revenue, said the trading revenue for the fourth quarter was $3.1 billion, 24.5% less than the previous quarter. However, that amount was $2.4 billion more than in the fourth quarter of 2021.

The OCC also reported:

  • Credit exposure from derivatives decreased in the fourth quarter of 2022 compared with the third quarter of 2022. Net current credit exposure (NCCE) decreased $111.0 billion, or 28.4%, to $279.0 billion.
  • Derivative notional amounts decreased in the fourth quarter of 2022 by $4.1 trillion, or 2.1%, to $191.0 trillion.
  • Derivative contracts remained concentrated in interest rate products, which totaled $139.8 trillion or 73.2% of total derivative notional amounts.
  • A total of 1,139 insured U.S. national and state commercial banks and savings associations held derivatives.

OCC Reports Fourth Quarter 2022 Bank Trading Revenue