Daiwa Securities' profit slumped while SMBC Nikko Securities fell into the red as stock and bond trading revenue at the two Japanese brokerages dropped even before this month’s market turmoil.
Net income at Daiwa tumbled 24% year-on-year to ¥30 billion ($208 million) in the three months ended March 31, according to a statement Monday. That marked the first decline in eight quarters, and was in line with analysts’ estimates.
SMBC Nikko, the brokerage arm of Sumitomo Mitsui Financial Group, posted a net loss of ¥2.6 billion for the quarter, compared with a profit of ¥24.2 billion a year earlier. This is a setback for the firm that has been regaining its footing after a market rigging scandal more than two years ago.
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