JPMorgan Chase & Co. out-earned global rivals in Japan last year after capitalizing on a dealmaking spree fueled by the Asian nation¡¯s push to improve corporate governance.

Net income at the U.S. lender¡¯s local securities subsidiary more than doubled to ?45.6 billion ($309 million) in the year ended March 31 ¡ª the highest in at least seven years, according to filings. That marked a rebound from the previous year¡¯s retreat, reflecting a jump in merger advisory and underwriting business.

Japanese companies have stepped up acquisitions as well as sales of noncore units in recent years, providing more opportunities for investment banks. The trend has also stoked competition for talent at global firms from Citigroup to Deutsche Bank.

Morgan Stanley¡¯s local securities unit posted a record ?153.2 billion in revenue for the year ended March 31, partly on increased income from bond and stock underwriting and sales. Still, net income fell 2.3% to ?31.9 billion as the firm set aside liability reserves in line with its increased trading volumes.

BNP Paribas¡¯ brokerage arm saw its profit slip 2.9% to ?20.6 billion in the same period as brokerage commissions slid.

The figures follow varied results at other major international banks, which closed their books earlier, on Dec. 31, as they contended with volatile markets.

Japan saw the most extreme market moves in decades last August, after the Bank of Japan raised interest rates. Stocks tumbled the most since the October 1987 crash and swings in bond prices hurt some traders, though equities have since recovered.

¡°Volatility in the Japanese government bond market increased sharply as the BOJ moved to normalize its monetary policy,¡± said Alberto Tamura, president of Morgan Stanley MUFG Securities. Together with the rebound in stocks, that led to ¡°higher sales and trading activities in Japan in an eventful year.¡±

JPMorgan and BNP Paribas representatives declined to comment.