Goldman Sachs Group Inc. was one of the major global banks that achieved a lower profit in Japan last year, and withdrew from a Bumper 2023. The net income at Goldman Sachs local security arm fell 30% in the year ended December 31 to 27.6 billion, from a 14-year high in the previous year, showed a filing. Barclays PLC and Deutsche Bank AG also placed a double-digit declines in profit with their Japan investment banking units in a reversal of the previous year’s excellent performances, partly due to poor trade in fixed income. In contrast, the local arm of Bank of America Corp. Returned to profit, while UBS Group AG’s net income increased by 82%. The diverse results indicate that 2024 was a difficult year for the world’s largest borrowers working in Japan, as investors adapted to rising interest rates. The country’s markets have seen the most extreme moves in decades in August, with shares most tumbling since the collapse of the accident in October 1987 and the prices of mortgage prices that have damaged some traders. “This does not mean that the heat is dead and that there will be another period of stagnation,” said Hideyasu Ban, a senior analyst at Bloomberg Intelligence. “The revenue pool for investment banks has grown as the economy of Japan and market conditions normalizes, leading to improvements in their profit margin.” Although its earnings have dropped, Goldman Sachs local unit has held its place as the most profitable among foreign banks that close their books in December and earn three times more than its closest competitor. The decline in the profit came because it discussed a higher accountability reserves in accordance with an increase in the trading volume. Barclays’ rankings rose to second place by a notch. The British bank wants to strengthen its Yen interest rate business to take advantage of the revival of the mortgage market in Japan. A spokesman for Barclays Securities Japan Ltd. said that the fee-based financing businesses can provide profits without being significantly influenced by market volatility. Bofa Securities Japan Co. Earn $ 7.5 billion to profit after losing $ 6 billion last year. The Unit of the Charlotte, North Carolina-based money shooter, recorded sharp profits from shares and mortgage trading. Consolidated profit from UBS Securities Japan Co. and the majority interest at Joint Venture UBS Sumi Trust Wealth Management Co. rose as the markets, investment banking and wealth services performed better, according to a spokesman. Citigroup Inc. finished the year in third place after the net revenue at the Japan security arm dropped by 33%. The lead at the firm was the highest among the world banks, even if it has reduced staff members over the past year. © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.
Goldman Sachs leads in a turbulent year for foreign banks in Japan
