Sumitomo Mitsui Injects $1.7 Billion Into Scandal-Hit Nikko Unit

Sumitomo Mitsui Financial Group Inc. injected ¥250 billion ($1.7 billion) into SMBC Nikko Securities Inc., its brokerage arm that is seeking to recover from a market rigging scandal.

The cash will help SMBC Nikko use its balance sheet to enhance its solutions business and improve customer service, the unit said in a statement on Tuesday.

The investment by Japan’s second-largest banking group will bolster SMBC Nikko’s capital by nearly 30%, the Nikkei newspaper reported earlier.

Read more on the market rigging scandal at SMBC Nikko

SMBC Nikko has been trying to restore profitability after a stock market manipulation ...