Bloomberg News

U.S. Bank Revenue Falls 5% in OTC Derivatives Trading

June 22, 2012

U.S. commercial banks earned $7 billion in revenue by trading over-the-counter derivatives and securities in the first quarter, down 5 percent from the year- earlier period as credit trading slowed.

Banks lost $784 million in credit trading for the three months ended in March, compared with a gain of $1.7 billion in the first quarter of 2011, the Office of the Comptroller of the Currency said in a release today. The U.S. agency said its main measure of credit risk in derivatives markets, the so-called net current credit exposure, fell 12 percent, or $53 billion, to $377 billion.

The banks, including JPMorgan Chase & Co. (JPM:US), Bank of America Corp. (BAC:US) and Morgan Stanley (MS:US), made a record $25.8 billion in revenue by trading OTC derivatives and securities last year, the regulator said earlier this year.

The OCC data only captures U.S.-based commercial banks, so dealers such as Deutsche Bank AG aren’t accounted for. The revenues combine private OTC derivatives and cash securities trading, which OCC doesn’t break out by asset type.

To contact the reporter on this story: Matthew Leising in New York at mleising@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • JPM
    (JPMorgan Chase & Co)
    • $60.24 USD
    • -0.09
    • -0.15%
  • BAC
    (Bank of America Corp)
    • $17.05 USD
    • 0.04
    • 0.23%
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