Goldman Sachs recorded its highest revenue from Japan in more than 15 years, underscoring a powerful resurgence in the country’s financial markets that has drawn renewed attention from major global banks. The firm’s Japanese brokerage arm reported net revenue of ¥125.5 billion, or roughly $800 million, for the year ending December 31, marking a 10% increase from the previous year and outperforming international rivals operating in the country.
The strong performance was driven largely by booming securities trading activity and rising demand from global investors seeking exposure to Japanese assets. Goldman also maintained the highest net income among major foreign banks in Japan despite a slight decline in profits caused by higher operating costs. The results highlight Japan’s growing importance as a strategic market for international financial institutions after years of relative stagnation.
The rebound comes amid a sharp acceleration in Japanese mergers and acquisitions activity. According to Bloomberg data, the value of Japan-related M&A deals has jumped 60% this year after reaching record levels in 2025. Investors have also poured money into Japanese equities as the country’s stock market approaches historic highs, while speculation surrounding monetary policy shifts has intensified trading in yen-denominated bonds.
Citigroup also reported its strongest revenue performance in Japan in at least a decade. The bank credited growth in merger advisory services and increasing cross-border investment activity by Japanese corporations for the surge. Citigroup has been actively expanding staffing in Japan to capture rising demand for international financial solutions.
Meanwhile, UBS posted its highest consolidated revenue in Japan since 2021, boosted by improvements across all major business lines, including wealth management. The Swiss banking giant’s local operations benefited from stronger collaboration with its joint venture involving Sumitomo Mitsui Trust Group.
Bank of America reported its best Japanese revenue figures since 2014, while Deutsche Bank recorded a dramatic 143% increase in net income in its local securities business. Barclays and Société Générale also posted revenue growth, reflecting broad momentum across the sector.
Despite the surge in revenues, hiring growth remained relatively limited across many firms as competition for financial talent in Japan intensified. Several institutions either reduced staff numbers or kept headcounts largely unchanged even as profits expanded, suggesting banks remain cautious about long-term labor costs in an increasingly competitive market.
The gains in Japan mirrored a broader global rebound for major Wall Street institutions. Increased market volatility linked to the policies of U.S. President Donald Trump fueled trading activity worldwide, helping many investment banks generate stronger revenues across equities, bonds, and advisory services.
However, profitability in Japan remained uneven. Bank of America’s local entity saw net income fall 29% because of rising compensation and operational expenses, while Goldman’s profits dipped slightly despite record revenues. Analysts say the mixed results reflect the increasingly expensive battle among global banks to maintain a competitive presence in one of Asia’s most strategically important financial markets.
Additional results from major foreign institutions including Morgan Stanley and JPMorgan Chase are expected later this year, as their Japanese securities subsidiaries operate on a different fiscal calendar ending March 31.
