SMBC Nikko Securities swung to its biggest quarterly loss on record, underscoring the deepening impact of a trading scandal at the brokerage of Japan’s second-largest banking group.
The firm also signaled personnel changes are in the works, and wasn’t optimistic that business will bounce back quickly.
The securities arm of Sumitomo Mitsui Financial Group posted ¥5.7 billion ($38.5 million) in net losses for its fiscal second quarter ended Sept. 30, exceeding the previous quarter’s deficit, according to a statement Monday. The company said the fallout from the scandal, along with rising interest rates in Europe and the United States and declining investor sentiment, weighed on earnings.