Publications:
Derivatives Fact Sheet -- Fourth Quarter 1995
Choose Section: General.......Risk........High-risk Mortgage Securities and Structured Notes....Revenue
Revenues
The Call Report data include revenue information regarding cash and derivative trading
activities. The data also show the impact on net interest income and non-interest income from
non-trading activities. Note that the revenue data reported in Table 7 reflect figures
for the fourth quarter alone, and do not reflect year-to-date data.
Relative to the third quarter, the fourth quarter resulted in a decrease in trading revenues from
cash and derivatives activities of $377 million, totaling $1.6 billion in the fourth quarter, with the
top nine banks accounting for 84 percent of that amount. Year-to-date trading revenue for 1995 from
cash and off-balance sheet positions was $6.14 billion. In the quarter, revenues from interest rate
contracts fell $85 million to $879 million, while revenues from foreign exchange contracts
decreased $169 million, to $592 million. Revenue from other trading contracts, including
equities and commodities contracts, fell $122 million, generating $95 million in revenues, with
virtually all of that amount in the top nine banks. [See Table 7.]
Derivatives held for purposes other than trading did not have a significant impact on either net
interest income or non-interest income in the fourth quarter. Non-traded derivatives contributed
$509 million, or .69 percent to the $73.8 billion in gross revenues of banks with derivative contracts in
the fourth quarter. These figures reflect a decline of $268 million from the third quarter (third
quarter contributed $777 million to gross revenues). Readers must be cautioned that these results
are only useful in the context of a more complete analysis of each bank's asset/liability structure
and management process.
This is the last section of the fact sheet.
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