Derivatives valuation adjustments (XVAs) wiped out 9% of Wells Fargo’s trading revenues in 2018.
The San Francisco-based dealer posted annual trading revenues of $602 million. This total would have been $54 million higher, though, had XVAs not cut into the value of its derivatives assets.
Credit valuation adjustments (CVAs) took a $112 million bite out of trading revenues over the year. This was only partly offset by debit valuation adjustments (DVAs), which added $58 million to trading