Foreign brokerages in Japan increased profits in fiscal 2013
TOKYO -- Foreign-affiliated brokerages in Japan benefited from the active financial market in fiscal 2013, with seven of 10 major players reporting improved earnings for the year.
These companies have strong ties to institutional investors. Abenomics drew these investors at home and abroad to the Japanese market, and the brokerages saw a boost in commissions on stock trading. The nation's businesses also actively engaged in acquisitions and initial public offerings.
Morgan Stanley MUFG Securities led in net profit. Although higher corporate taxes dragged net profit down 8% from the year before, the figure still came in at 30.5 billion yen ($295 million).
Deutsche Securities and Barclays Securities Japan posted record net profits. Deutsche Securities enjoyed a 370% boost on strong trading of derivatives, as well as reduced personnel and other costs.
Trading in Japanese government bonds bolstered Merrill Lynch Japan Securities. While net profit dipped, it booked an operating profit for the first time in four years. Credit Suisse Securities turned its first net profit in five years, and BNP Paribas Securities its first in four.