TOKYO (Reuters) -Two of Japan's megabanks, Sumitomo Mitsui Financial Group Inc (SMFG) and Mizuho Financial Group Inc, on Friday reported a surge in first-half profit as the economy ravaged by the COVID-19 pandemic recovered and credit costs abated. SMFG, Japan's second-largest bank by assets, said net profit jumped 69% to 456 billion yen ($4 billion) in the April-September period. Mizuho, the No. 3 lender, said earnings rose 79% to 385.7 billion yen.
Japan's securities watchdog has launched an investigation into Sumitomo Mitsui Financial Group's brokerage unit over employees' potential involvement in fraudulent stock transactions, the Nikkei business daily said on Tuesday. The Securities and Exchange Surveillance Commission held its investigation at the Tokyo head office of SMBC Nikko Securities Inc, Nikkei said, citing sources familiar with the matter. SMBC Nikko confirmed in a statement that the company and its employees are being investigated, but declined to comment on details because the probe is ongoing.
What happened Shares of Jefferies Financial (NYSE: JEF) jumped 5.4% on Wednesday after the U.S. investment bank announced a strategic alliance with Japan-based Sumitomo Mitsui Financial Group (NYSE: SMFG).