JPMorgan Leads Foreign Banks in Japan Amid Dealmaking Boom

JPMorgan Chase's Japanese subsidiary saw net income more than double to ¥45.6 billion ($309 million) in the year ended March 31, the highest in at least seven years. The lender capitalized on a dealmaking spree in Japan, while Morgan Stanley's local securities unit posted a record ¥153.2 billion in revenue. BNP Paribas' brokerage arm saw its profit slip 2.9% to ¥20.6 billion.

JPMorgan Chase & Co. (JPM) reported a significant rebound in its Japanese operations, with net income at its local securities subsidiary more than doubling to ¥45.6 billion ($309 million) in the year ended March 31. This marks the highest net income in at least seven years [2]. The surge was driven by a dealmaking spree in Japan, capitalizing on the Asian nation’s push to improve corporate governance. This performance comes on the heels of a retreat in the previous year, reflecting a jump in merger advisory and underwriting business.

Meanwhile, Morgan Stanley's local securities unit posted a record ¥153.2 billion in revenue for the same period, partly on increased income from bond and stock underwriting and sales. However, net income fell 2.3% to ¥31.9 billion due to increased liability reserves in line with its trading volumes [2].

In contrast, BNP Paribas SA's brokerage arm saw its profit slip 2.9% to ¥20.6 billion during the same period, as brokerage commissions slid [2]. The figures highlight varied results among major international banks, with Japan experiencing extreme market volatility last August following the Bank of Japan's interest rate hike [2].

The Japanese market saw significant swings in bond prices and equity movements, but stocks have since recovered. Alberto Tamura, president of Morgan Stanley MUFG Securities Co., attributed the higher sales and trading activities to the rebound in stocks and increased volatility in the Japanese government bond market [2].

JPMorgan Chase's overall earnings for the second quarter, however, showed a decline. The company's earnings totaled $14.987 billion, or $5.24 per share, compared to $18.149 billion, or $6.12 per share, last year. Revenue for the period fell 10.5% to $44.912 billion from $50.200 billion last year [1].

References:
[1] https://www.rttnews.com/3562306/jpmorgan-chase-co-reports-retreat-in-q2-bottom-line.aspx
[2] https://www.bloomberg.com/news/articles/2025-08-05/jpmorgan-tops-foreign-banks-earnings-in-japan-on-deals-boom