Mor­gan Stan­ley beats Gold­man Sachs in Ja­pan

New Straits Times - - Business -

TOKYO: Mor­gan Stan­ley beat Gold­man Sachs Group Inc to be­come the most prof­itable for­eign se­cu­ri­ties firm in Ja­pan last fis­cal year af­ter it boosted struc­tured-prod­uct sales and man­aged the two big­gest ini­tial pub­lic of­fer­ings.

Net in­come at Mor­gan Stan­ley MUFG Se­cu­ri­ties Co rose 32 per cent to 29 bil­lion yen (RM1.12 bil­lion) in the year ended March 31, the most among 10 large global banks that sub­mit­ted an­nual fi­nan­cial state­ments.

The ven­ture with Mitsubishi UFJ Fi­nan­cial Group Inc posted its big­gest rev­enue in three years as Ja­pan’s in­tro­duc­tion of neg­a­tive in­ter­est rates prompted clients to seek as­sets with bet­ter re­turns than gov­ern­ment bonds.

It also un­der­wrote the de­but share sales of Kyushu Rail­way Co and Line Corp, the largest in Ja­pan last year.

“We are com­mit­ted to grow­ing our busi­nesses in Ja­pan where the na­tional-level re­forms of­fer ex­cit­ing po­ten­tial,” said chief ex­ec­u­tive of­fi­cer Jonathan Kin­dred. He was re­fer­ring to ini­tia­tives such as the gov­ern­ment’s ef­forts to make Tokyo a global fi­nan­cial hub.

Mor­gan Stan­ley’s fees for fixed in­come-re­lated sales and trad­ing climbed 22 per cent to 43.7 bil­lion yen, ac­cord­ing to the fil­ing to the Fi­nan­cial Ser­vices Agency.

Gold­man Sachs gen­er­ated the sec­ond-high­est rev­enue as well as profit, which to­talled 22.1 bil­lion yen in the year ended De­cem­ber 31. The firm’s head­count dropped by 46 over the 12 months, bring­ing it roughly level with JPMor­gan Chase & Co.

This year, Gold­man Sachs is ad­vis­ing Toshiba Corp on the sale of its mem­ory-chip busi­ness, a trans­ac­tion that may fetch about US$19 bil­lion (RM81.5 bil­lion), and it’s work­ing with the fi­nance min­istry on its sale of an ad­di­tional stake in Ja­pan Post Hold­ings Co.

JPMor­gan posted the third­largest profit, fol­lowed by Deutsche Bank AG, while BNP Paribas SA had the third-big­gest rev­enue. The French bank has also been grow­ing in struc­tured prod­ucts, hir­ing about 30 peo­ple here since January, and plans to re­cruit more this year, said sources ear­lier this month.

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