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SMBC Nikko Posts Pre-Tax Loss as Scandal Hands Rivals Business

Probe Gets SMBC Nikko Dropped From Bond Underwriting Deal
Photographer: Takaaki Iwabu/Bloomberg

SMBC Nikko Securities Inc. posted its first quarterly pre-tax loss since at least 2009, as a scandal over alleged stock market manipulation caused some companies to take business away from the Japanese brokerage. 

The securities arm of Sumitomo Mitsui Financial Group Inc. lost 600 million yen ($4.6 million) on a before-tax basis in the three months ended March 31, the first loss since it became part of the banking titan in 2009, according to a spokesman and a statement Thursday. The company eked out 1.9 billion yen in net income because of tax refunds.