The Office of the Comptroller of the Currency ("OCC") reported that the trading revenue of U.S. banks rose to $7.1 billion in the first quarter of 2017. This represented a $1.1 billion (or 18 percent) increase over revenue in the previous quarter, and a $1.5 billion (or 26 percent) increase over revenue in the first quarter of 2016.
The OCC Q uarterly Report on Bank Trading and Derivatives Activities (the "Report") showed that the largest driver of the revenue increase was foreign exchange and interest rate trading.
The Report also showed that derivative notional amounts increased by 7.9 percent to $178.3 trillion, and that derivative contracts remained concentrated in interest rate products.
The analysis in the Report was based on call report data provided by U.S. banks and financial holding company reports, as well as other relevant data.
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