Goldman Sachs Group Inc., the biggest U.S. securities firm by market value, and other overseas investment banks posted record full-year revenue in Japan as they earned more from brokerage commissions and merger advisory fees.
Goldman Sachs Japan Co.'s revenue rose to ¥256.5 billion for the year that ended on March 31, from ¥231.3 billion a year earlier, according to filings to Japan's financial regulator made public Friday. Deutsche Bank AG, Merrill Lynch & Co. and JPMorgan Chase & Co. also posted record revenue in the country, according to their disclosures.
Seven overseas banks ranked among the top 10 merger advisers in Japan for the fiscal year. Falling equity and bond markets in the wake of the U.S. mortgage-market collapse have increased Wall Street's reliance on advising, as profit from trading drops and Japanese companies take advantage of low stock prices overseas to buy into companies.
"Japanese blue chips are seeking to purchase stakes in companies abroad for expansion as they have plenty of capital," said Yuri Yoshida, an analyst at Standard & Poor's. "That's generating more fee opportunity for Wall Street firms that have greater knowhow and research than local banks."
Goldman's Japan profit also rose to a record, according to its filing. Net income swelled to ¥79 billion for the year to March 31 from ¥29.6 billion. Total commissions climbed 18 percent to ¥213.6 billion as brokerage, advising and other fees rose.