Trading activity at U.S. commercial banks and federal savings associations brought in $5 billion in revenue in the fourth quarter of 2017, down by 21.2% from the previous quarter and 16.1% year over year, according to the Office of the Comptroller of the Currency's report.
The OCC also noted a decline in the percentage of centrally cleared derivatives transactions for the fourth-quarter to 38%, compared to 38.8% in fourth quarter 2016.
Trading risk, as measured by value-at-risk, increased in the fourth quarter. Total average value-at-risk across the top five dealer banking companies — JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley — increased to $258 million, or 0.8% from the previous quarter.
JPMorgan Chase, Bank of America, Citigroup and Goldman Sachs held 89.4% of the total notional amount of derivatives of the U.S. banking industry, and 1,364 U.S. commercial banks and savings associations held derivatives at the end of the fourth quarter of 2017.
