U.S. commercial banks had $14.9 billion in cumulative trading revenue in the fourth quarter of 2025 – down $2.9 billion, or 16.3%, from the previous quarter and $680 million, or 4%, from a year earlier, the Office of the Comptroller of the Currency (OCC) said.
The OCC, in a report Tuesday, said a total of 1,197 insured U.S. national and state commercial banks and savings associations reported trading and derivatives activities at the end of the fourth quarter.
It said a small group of large financial institutions continues to dominate trading and derivatives activity in the U.S. commercial banking system. The agency reported that:
- Four large banks represented 85.1% of the total banking industry notional amounts and 74.5% of industry net current credit exposure (NCCE).
- Initial credit exposure from derivatives before netting decreased in the fourth quarter of 2025 compared with the third quarter of 2025. NCCE decreased $10.7 billion, or 4.2%, to $241 billion.
- Derivative notional amounts decreased by $23.8 trillion, or 10.3%, to $208.1 trillion.
- Derivative contracts remained concentrated in interest rate products, which totaled $135.8 trillion, or 65.3% of total derivative notional amounts.
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