Once known for its slow growth and relatively limited upside, Japan is now stealing the spotlight in the financial sector with global banks seeking various forms of expansion in the nation.
A growing number of global banks are seeking business expansion in Japan to tap opportunities linked to the nation’s modest but stable economic growth amid growing uncertainty worldwide.
Goldman Sachs, for example, launched transaction banking services in its Tokyo branch in April. Separately, it is planning to establish a desk in the city to start trading Japanese power derivatives, according to a «Reuters» report earlier this month citing unnamed sources.
US rival JPMorgan is also looking to take advantage of Japan’s growth potential with APAC CEO Filippo Gori recently saying that the bank will be «investing further» in the country, alongside Australia.
Swiss Opportunity
Financial services opportunities in Japan extend to wealth and asset management with interest amongst Swiss players.
In March, Geneva-based Lombard Odier formed a strategic alliance with Mizuho to help enhance the Japanese bank's wealth management capabilities for local high net worth individuals.
And in May, Genevan rival UBP acquired small-caps equity specialist Angel Japan Asset Management to strengthen the Swiss lender's investment as well as local distribution capabilities.
Record Forecasts
Sentiments at top Japanese banks mirror the optimism of foreign lenders with forecasts of record profits for the current fiscal year ending March 2024.
Mizuho Financial Group predicts an 8-year high profit of 610 billion yen ($4.3 billion) while Sumitomo Mitsui Financial Group expects a 10-year high of 820 billion yen. Mitsubishi UFJ Financial Group, Japan’s largest lender, forecasts an all-time high net income of 1.3 trillion yen.
