Scandal Pushes Down SMBC Nikko's April-Dec. Revenue by 33 B. Yen

Tokyo, Jan. 31 (Jiji Press)--A stock price manipulation scandal is estimated to have pushed down SMBC Nikko Securities Inc.'s revenue in April-December 2022 by 33 billion yen, according to the Japanese brokerage firm.

The scandal, in which the company and six former executives have been indicted, prompted institutional investors to refrain from trading stocks and bonds through the company.

Since fiscal 2021, which ended in March 2022, the scandal is believed to have dented the company's revenue by a total of 43 billion yen, including the 33 billion yen in the first three quarters of fiscal 2022.

Over the scandal, SMBC Nikko has given up a plan to set up a securities firm in Beijing, for which it and its parent, Sumitomo Mitsui Financial Group Inc. <8316>, had jointly submitted an application to Chinese authorities in July 2021.

"The incident made it difficult for us to get approval from the authorities," Shinsuke Ushijima, managing executive officer of SMBC Nikko, said at an online press conference Monday.

[Copyright The Jiji Press, Ltd.]