Publications:
Quarterly Derivatives Fact Sheet -- Second Quarter 1997
Read Section: General.......Risk.......Revenue.....High-risk Mortgage Securities and Structured Notes
Revenues
The Call Report data include revenue information regarding cash
instruments and off-balance sheet derivative trading activities.
The data also show the impact on net interest income and non-interest income from derivatives used in non-trading activities.
Note that the revenue data reported in Table 7 reflect figures for the second quarter alone, and are
not annualized.
Relative to the first quarter of 1997, commercial banks reporting
derivatives contracts in the second quarter of 1997 show an
aggregate decrease in trading revenues from cash instruments and
derivatives activities of $421 million, or 18 percent. The
revenue figures reported for trading activities in the second
quarter indicate that the banks with derivatives realized
approximately $1.96 billion in revenue for the second quarter
from cash instruments and off-balance
sheet derivative, with the top eight banks accounting for 79
percent of these trading revenues. In the second quarter,
revenues from interest rate positions declined by $411 million,
generating $939 million, while revenues from foreign exchange
positions increased by $218 million, to $908 million. Revenue
from other trading positions, including equities and commodities
positions, decreased by $227 million, generating $116 million
in revenues, with approximately 96% of that amount in the
top eight 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 third quarter. Non-traded derivatives contributed
$259 million, or .3 percent to the gross revenues of banks with
derivative contracts in the second quarter. These figures
reflect an increase of $138 million from the first quarter.
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.
High-risk Mortgage Securities and Structured Notes
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