

XVAs boost Helaba trading income but inflate hedging costs
Expense from non-trading hedges reaches highest since at least 2016
Derivatives valuation adjustments (XVAs) cut both ways at German lender Helaba in the first half of the year, propelling trading income to the highest in at least six years while pushing hedging costs to their highest since the beginning of the Covid-19 pandemic.
Trading income hit €299 million ($299 million) in the six months to end-June – reversing a €28 million loss in H2 2021 and more than tripling from H1 2021 – with the bank citing, among other factors, “a marked change in [XVAs] that
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