09.17.2021

Q2 2021 U.S. Bank Trading Revenue Drops 41%

09.17.2021
Q2 2021 U.S. Bank Trading Revenue Drops 41%

The Office of the Comptroller of the Currency (OCC) reported trading revenue of U.S. commercial banks and savings associations of $8.1 billion in the second quarter of 2021.

The second quarter trading revenue was $2.4 billion, or 22.9 percent, less than the previous quarter.

In the report, Quarterly Report on Bank Trading and Derivatives Activities, the OCC noted that trading revenue in second quarter 2021 decreased by 40.9 percent compared with the $13.6 billion reported in second quarter 2020.

The OCC reported that

  • while four large banks held 88.7 percent of the total banking industry notional amount of derivatives, a total of 1,372 insured U.S. national and state commercial banks and savings associations held derivatives at the end of second quarter 2021.
  • derivative contracts remained concentrated in interest rate products, which represented 72.6 percent of total derivative notional amounts.
  • the percentage of centrally cleared derivatives transactions increased quarter-over-quarter to 39.5 percent in second quarter 2021.

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Source: OCC

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