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Mizuho Financial Group 6-K 2007

Documents found in this filing:

  1. 6-K
  2. Graphic
  3. Graphic
  4. Graphic
  5. Graphic
  6. Graphic
Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July, 2007.

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-0004

Japan

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x    Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨    No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-                    .

 

 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: July 31, 2007
Mizuho Financial Group, Inc.
By:  

/s/ Satoru Nishibori

Name:   Satoru Nishibori
Title:   Managing Director / CFO


For Immediate Release:    July 31, 2007

 

  

Consolidated Financial Information for the First Quarter of Fiscal 2007

<under Japanese GAAP>

   LOGO

 

Company Name:                       Mizuho Financial Group, Inc. (“MHFG”)

 

Stock Code Number (Japan):

Stock Exchanges (Japan):

URL:

Address:

 

 

8411

Tokyo Stock Exchange (First Section), Osaka Securities Exchange (First Section)

http://www.mizuho-fg.co.jp/english/

5-5 Otemachi 1-chome, Chiyoda-ku, Tokyo 100-0004, Japan

Representative:

   Name:    Terunobu Maeda
   Title:    President & CEO

For Inquiry:

   Name:    Mamoru Kishida
   Title:    General Manager, Accounting
   Phone:    81-3-5224-2030
      Amounts less than one million yen and one decimal place are rounded down.

1. Financial Highlights for the First Quarter of Fiscal 2007 (for the three months ended June 30, 2007)

(1) Consolidated Results of Operations

 

     (%: Changes from corresponding period of previous fiscal year)  
     Ordinary Income    Ordinary Profits     Net Income  
     ¥ million    %    ¥ million    %     ¥ million    %  

1Q F2007

   1,052,748    22.6    166,737    (33.6 )   116,468    (49.5 )

1Q F2006

   858,158    13.7    251,363    7.8     230,838    33.2  

(Reference) Fiscal 2006

   4,099,654       748,170      620,965   

 

     Net Income
per Share of
Common Stock
   Diluted Net Income
per Share of
Common Stock
     ¥    ¥

1Q F2007

   10,034.23    9,161.11

1Q F2006

   19,886.40    18,277.01

(Reference) Fiscal 2006

   51,474.49    48,803.07

Notes:    1. Equity in Income from Investments in Affiliates:
   1Q F2007 ¥3,110 million, 1Q F2006 ¥2,479 million, Fiscal 2006 ¥9,324 million
   2. Average outstanding shares of common stock (consolidated basis):
   1Q F2007 11,607,100 shares, 1Q F2006 11,607,883 shares, Fiscal 2006 11,607,550 shares

(2) Consolidated Financial Conditions

 

     Total Assets    Total Net Assets    Own Capital Ratio    Total Net Assets
per Share of
Common Stock
     ¥ million    ¥ million    %    ¥

1Q F2007

   160,697,689    6,523,460    3.0    337,176.90

1Q F2006

   146,713,320    5,830,287    3.1    250,812.83

(Reference) Fiscal 2006

   149,880,031    6,724,408    3.2    336,937.64

Notes:     1.    Outstanding shares of common stock (consolidated basis):
   As of June 30, 2007 11,607,014 shares, As of June 30, 2006 11,607,819 shares, As of March 31, 2007 11,607,155 shares
               2.    Own Capital:
   As of June 30, 2007 ¥4,894,047 million, As of June 30, 2006 ¥4,491,820 million, As of March 31, 2007 ¥4,911,293 million
               3.    Own Capital Ratio is calculated as follows: (Total Net Assets - Minority Interests) / Total Assets × 100

2. Cash Dividends for Shareholders of Common Stock

 

     Cash Dividends per Share

(Record Date)

   First Quarter    Interim period-end    Third Quarter    Fiscal year-end    Annual
     ¥    ¥    ¥    ¥    ¥

Fiscal 2006

   —      —      —      7,000    7,000

Fiscal 2007

   —      —      —      —     

—  

Fiscal 2007 (estimate)

   —      —      —      10,000    10,000


Mizuho Financial Group, Inc.

 

3. Earnings Estimates for Fiscal 2007 (for the fiscal year ending March 31, 2008)

There is no revision of the earnings estimates for Fiscal 2007 announced on May 22, 2007. The figures are as follows:

 

     (%: Changes from corresponding period of previous fiscal year)
     Ordinary Income    Ordinary Profits     Net Income    

Net Income

per Share of

Common Stock

     ¥ million    %    ¥ million    %     ¥ million    %     ¥

First Half of Fiscal 2007

   2,250,000    20.7    480,000    (9.4 )   350,000    (10.7 )   30,153.81

Fiscal 2007

   4,600,000    12.2    1,050,000    40.3     750,000    20.7     62,894.35

The number of shares of common stock used in calculating the above Net Income per Share of Common Stock does not take into account the eventuality of a decrease in the number of shares of common stock as a result of the repurchase of own shares (common shares) announced on May 22, 2007.

4. Others

 

(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries

accompanying changes in scope of consolidation): No

 

(2) Adoption of Simplified Accounting Methods: Yes

Please refer to “Others (1)” on page 1-4 for details.

 

(3) Changes in Accounting Methods and Presentation of Consolidated Financial Statements

since the Most Recent Fiscal Year: Yes

Please refer to “Others (3)” on page 1-4 for details.

 


This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation, incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; revised assumptions or other changes related to our pension plans; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effectiveness of our operational, legal and other risk management policies; our ability to avoid reputational harm; and effects of changes in general economic conditions in Japan.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our registration statement on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on October 19, 2006, which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

 


 

1-2


Mizuho Financial Group, Inc.

 

CONSOLIDATED RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS

(1) Results of Operations

Consolidated Gross Profits for the first quarter of fiscal 2007 came to ¥449.6 billion, decreasing by ¥26.3 billion from the corresponding period of the previous fiscal year. This was because, despite an increase in net interest income from deposit and loan business, there was a decline in net dividend and interest income related to equity and other investments and non-interest income from Customer Groups of the banking subsidiaries, and a decrease in market-related income of the banking subsidiaries compared with the corresponding period of the previous fiscal year.

General and Administrative Expenses amounted to ¥275.2 billion, increasing by ¥13.2 billion from the corresponding period of the previous fiscal year. This resulted from the strategic allocation of management resources aimed at increasing top-line profits.

Credit-related Costs including Expenses related to Portfolio Problems reverted to a net provision of ¥38.2 billion, increasing by ¥53.4 billion from a net reversal in the corresponding period of the previous fiscal year.

After reflecting the above, Net Income amounted to ¥116.4 billion, decreasing by ¥114.3 billion from the corresponding period of the previous fiscal year.

(2) Financial Conditions

Total Assets as of June 30, 2007 amounted to ¥160,697.6 billion, increasing by ¥13,984.3 billion from the end of the corresponding period of the previous fiscal year.

Net Assets amounted to ¥6,523.4 billion, increasing by ¥693.1 billion from the end of the corresponding period of the previous fiscal year. This consists of ¥3,379.2 billion of Total Shareholders’ Equity, ¥1,514.8 billion of Total Valuation and Translation Adjustments, and ¥1,629.4 billion of Minority Interests.

As for asset accounts, Loans and Bills Discounted amounted to ¥66,820.0 billion, increasing by ¥3,515.0 billion, and Securities amounted to ¥38,982.0 billion, increasing by ¥2,034.1 billion from the end of the corresponding period of the previous fiscal year. As for liability accounts, Deposits amounted to ¥76,429.1 billion, increasing by ¥4,320.6 billion from the end of the corresponding period of the previous fiscal year.

 

1-3


Mizuho Financial Group, Inc.

 

OTHERS

(1) Adoption of Simplified Accounting Methods

The consolidated balance sheet, the consolidated statement of income, and the consolidated statement of changes in net assets for the first quarter (excluding the notes other than for the segment information. Hereinafter referred to as “Quarterly consolidated financial statements.”) were prepared in conformity with the “Policy for Preparation of Quarterly Consolidated Financial Statements” which MHFG established pursuant to the provisions of the standards for preparation of the interim consolidated financial statements, etc., and the simplified accounting methods set out below to the extent that they do not materially mislead interested parties such as investors.

 

 

Accounting for Reserves for Possible Losses on Loans

(Self-assessment of Assets)

All claims are assessed by each claim origination department in accordance with the internally established “Self-assessment Standard.”

(Estimated rate of loss)

The amount of Reserves for Possible Losses on Loans is calculated by multiplying (a) the balance of claims extended to normal obligors, watch obligors, and intensive control obligors as of June 30, 2007, which was determined based on the above self-assessment, less the loans whose reserves were individually assessed and provided with, by (b) the estimated rate of loss of each obligor classification used in the financial statements for fiscal 2006.

(2) Independent Accountant’s Review

The quarterly consolidated financial statements were prepared in accordance with the “Policy for Preparation of Quarterly Consolidated Financial Statements” described in (1) above and were reviewed by MHFG's independent accountant, Ernst & Young ShinNihon.

(3) Changes in Accounting Methods and Presentation of Consolidated Financial Statements since the Most Recent Fiscal Year

 

1. The “Tentative Auditing Treatment on Accounting for Depreciation” (the Japanese Institute of Certified Public Accountants (“JICPA”) Auditing and Assurance Practice Committee Report No. 81, April 25, 2007) took effect from the fiscal year ending on or after April 1, 2007, following the revision of the Corporation Tax Law. Thus MHFG applied the new standards commencing with this period. Depreciation of Fixed Assets newly booked on or after April 1, 2007 is computed based on the revised Corporation Tax Law. The effect of this application on the consolidated statement of income is immaterial.

 

2. Given that the “Practical Solutions on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements (the Accounting Standards Board of Japan (“ASBJ”) Report No. 18, May 17, 2006) took effect preliminarily from the fiscal year beginning on or before March 31, 2008, MHFG adopted the new standards commencing with this period. The effect of this adoption on the consolidated statement of income is immaterial.

 

1-4


Mizuho Financial Group, Inc.

 

CONSOLIDATED BALANCE SHEETS

 

                       Millions of yen  
                       (Reference)  
     As of June 30,
2007
    As of June 30,
2006
    Change     As of March 31,
2007
 

Assets

        

Cash and Due from Banks

   ¥ 3,758,073     ¥ 3,739,191     ¥ 18,881     ¥ 3,993,362  

Call Loans and Bills Purchased

     687,560       784,354       (96,794 )     302,336  

Receivables under Resale Agreements

     12,505,850       8,025,213       4,480,637       9,430,397  

Guarantee Deposits Paid under Securities Borrowing Transactions

     9,806,722       7,902,313       1,904,408       8,624,211  

Other Debt Purchased

     3,246,106       2,502,057       744,048       3,351,499  

Trading Assets

     11,031,486       10,383,861       647,624       10,414,573  

Money Held in Trust

     42,048       43,190       (1,142 )     49,558  

Securities

     38,982,098       36,947,981       2,034,116       36,049,983  

Loans and Bills Discounted

     66,820,001       63,304,958       3,515,042       65,964,301  

Foreign Exchange Assets

     766,298       807,033       (40,734 )     894,797  

Other Assets

     7,517,233       5,711,482       1,805,750       5,739,458  

Tangible Fixed Assets

     787,615       809,102       (21,487 )     796,746  

Intangible Fixed Assets

     245,645       232,385       13,259       255,695  

Deferred Debenture Charges

     11       287       (276 )     22  

Deferred Tax Assets

     389,541       628,042       (238,500 )     389,024  

Customers’ Liabilities for Acceptances and Guarantees

     4,939,360       5,692,763       (753,403 )     4,480,551  

Reserves for Possible Losses on Loans

     (827,780 )     (799,331 )     (28,448 )     (856,314 )

Reserve for Possible Losses on Investments

     (183 )     (1,570 )     1,386       (174 )
                                

Total Assets

   ¥ 160,697,689     ¥ 146,713,320     ¥ 13,984,369     ¥ 149,880,031  
                                

Liabilities

        

Deposits

   ¥ 76,429,148     ¥ 72,108,491     ¥ 4,320,657     ¥ 74,803,064  

Negotiable Certificates of Deposit

     9,945,944       9,695,006       250,937       8,805,239  

Debentures

     4,331,514       6,048,621       (1,717,106 )     4,723,806  

Call Money and Bills Sold

     7,436,035       8,124,623       (688,587 )     6,924,136  

Payables under Repurchase Agreements

     15,977,246       10,455,268       5,521,978       12,821,752  

Guarantee Deposits Received under Securities Lending Transactions

     7,925,965       6,058,715       1,867,250       5,946,781  

Commercial Paper

     30,000       30,000       —         30,000  

Trading Liabilities

     9,573,020       8,647,403       925,617       8,297,301  

Borrowed Money

     3,603,769       2,807,034       796,734       4,563,438  

Foreign Exchange Liabilities

     324,374       275,497       48,876       339,817  

Short-term Bonds

     671,966       809,000       (137,033 )     849,870  

Bonds and Notes

     3,508,083       2,527,185       980,897       3,237,525  

Due to Trust Accounts

     1,192,479       1,278,372       (85,892 )     1,135,358  

Other Liabilities

     7,872,102       6,081,958       1,790,143       5,770,656  

Reserve for Bonus Payments

     7,684       8,731       (1,047 )     40,972  

Reserve for Employee Retirement Benefits

     36,596       38,910       (2,314 )     37,641  

Reserve for Director and Corporate Auditor Retirement Benefits

     5,101       —         5,101       6,484  

Reserve for Contingencies

     19,948       44,851       (24,902 )     13,046  

Reserves under Special Laws

     2,660       2,465       194       2,680  

Deferred Tax Liabilities

     234,807       28,168       206,639       218,224  

Deferred Tax Liabilities for Revaluation Reserve for Land

     106,418       119,962       (13,543 )     107,272  

Acceptances and Guarantees

     4,939,360       5,692,763       (753,403 )     4,480,551  
                                

Total Liabilities

     154,174,229       140,883,033       13,291,195       143,155,622  
                                

Net Assets

        

Common Stock and Preferred Stock

     1,540,965       1,540,965       —         1,540,965  

Capital Surplus

     411,093       411,167       (73 )     411,110  

Retained Earnings

     1,429,397       1,650,429       (221,032 )     1,440,310  

Treasury Stock

     (2,213 )     (46,964 )     44,751       (32,330 )
                                

Total Shareholders’ Equity

     3,379,242       3,555,597       (176,355 )     3,360,055  
                                

Net Unrealized Gains on Other Securities, net of Taxes

     1,542,462       989,025       553,436       1,550,628  

Net Deferred Hedge Losses, net of Taxes

     (145,339 )     (175,014 )     29,674       (111,042 )

Revaluation Reserve for Land, net of Taxes

     149,402       169,050       (19,648 )     150,616  

Foreign Currency Translation Adjustments

     (31,720 )     (46,839 )     15,119       (38,964 )
                                

Total Valuation and Translation Adjustments

     1,514,804       936,222       578,582       1,551,237  
                                

Minority Interests

     1,629,413       1,338,466       290,946       1,813,115  
                                

Total Net Assets

     6,523,460       5,830,287       693,173       6,724,408  
                                

Total Liabilities and Net Assets

   ¥ 160,697,689     ¥ 146,713,320     ¥ 13,984,369     ¥ 149,880,031  
                                

Note: Amounts less than one million yen are rounded down.

 

1-5


Mizuho Financial Group, Inc.

 

CONSOLIDATED STATEMENTS OF INCOME

 

                     Millions of yen
                     (Reference)
     For the three
months ended
June 30, 2007
   For the three
months ended
June 30, 2006
   Change     For the fiscal
year ended
March 31, 2007

Ordinary Income

   ¥ 1,052,748    ¥ 858,158    ¥ 194,589     ¥ 4,099,654

Interest Income

     741,225      527,964      213,261       2,562,642

Interest on Loans and Bills Discounted

     372,507      286,092      86,415       1,302,102

Interest and Dividends on Securities

     161,146      113,078      48,067       592,863

Fiduciary Income

     14,211      14,494      (283 )     66,958

Fee and Commission Income

     133,543      141,586      (8,042 )     658,899

Trading Income

     27,069      49,884      (22,815 )     265,802

Other Operating Income

     76,342      72,482      3,860       270,945

Other Ordinary Income

     60,354      51,745      8,608       274,405
                            

Ordinary Expenses

     886,010      606,794      279,216       3,351,484

Interest Expenses

     490,697      272,057      218,639       1,472,378

Interest on Deposits

     155,217      91,393      63,824       477,042

Interest on Debentures

     6,831      9,665      (2,834 )     34,083

Fee and Commission Expenses

     26,271      25,380      890       107,775

Trading Expenses

     8,065      852      7,212       4,258

Other Operating Expenses

     17,716      32,093      (14,377 )     123,438

General and Administrative Expenses

     275,265      262,036      13,228       1,091,602

Other Ordinary Expenses

     67,995      14,373      53,621       552,032
                            

Ordinary Profits

     166,737      251,363      (84,626 )     748,170
                            

Extraordinary Gains

     12,972      23,556      (10,583 )     248,411
                            

Extraordinary Losses

     1,123      909      214       21,682
                            

Income before Income Taxes and Minority Interests

     178,586      274,011      (95,424 )     974,898
                            

Income Taxes:

          

Current

     15,854      6,883      8,970       43,267

Deferred

     17,976      17,979      (3 )     223,699
                            

Minority Interests in Net Income

     28,288      18,309      9,978       86,965
                            

Net Income

   ¥ 116,468    ¥ 230,838    ¥ (114,370 )   ¥ 620,965
                            

Note: Amounts less than one million yen are rounded down.

 

1-6


Mizuho Financial Group, Inc.

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

For the three months ended June 30, 2007

 

   

Millions of yen

 
    Shareholders’ Equity     Valuation and Translation Adjustments              
    Common
Stock and
Preferred
Stock
  Capital
Surplus
    Retained
Earnings
    Treasury
Stock
    Total
Shareholders’
Equity
    Net
Unrealized
Gains on
Other
Securities,
net of Taxes
   

Net Deferred
Hedge
Losses,

net of Taxes

   

Revaluation
Reserve

for Land,

net of Taxes

    Foreign
Currency
Translation
Adjustments
    Total
Valuation
and
Translation
Adjustments
    Minority
Interests
    Total Net
Assets
 

Balance as of March 31, 2007

  ¥ 1,540,965   ¥ 411,110     ¥ 1,440,310     ¥ (32,330 )   ¥ 3,360,055     ¥ 1,550,628     ¥ (111,042 )   ¥ 150,616     ¥ (38,964 )   ¥ 1,551,237     ¥ 1,813,115     ¥ 6,724,408  

Effect of Unification of Accounting Policies Applied to Foreign Subsidiaries

  ¥ —     ¥ —       ¥ 2,867     ¥ —       ¥ 2,867     ¥ —       ¥ —       ¥ —       ¥ —       ¥ —       ¥ —       ¥ 2,867  
                                                                                             

Changes during the period

                       

Cash Dividends

    —       —         (101,229 )     —         (101,229 )     —         —         —         —         —         —         (101,229 )

Net Income

    —       —         116,468       —         116,468       —         —         —         —         —         —         116,468  

Repurchase of Treasury Stock

    —       —         —         (129 )     (129 )     —         —         —         —         —         —         (129 )

Disposition of Treasury Stock

    —       3       —         10       13       —         —         —         —         —         —         13  

Cancellation of Treasury Stock

    —       (3 )     (30,232 )     30,235       —         —         —         —         —         —         —         —    

Transfer from Revaluation Reserve for Land, net of Taxes

    —       —         1,213       —         1,213       —         —         —         —         —         —         1,213  

Effect of Exclusion of an Affiliate from the Scope of the Equity Method

    —       (16 )     —         —         (16 )     —         —         —         —         —         —         (16 )

Effect of Decrease in the Equity Position of an Affiliate

    —       (0 )     —         —         (0 )     —         —         —         —         —         —         (0 )

Decrease in Stock issued by MHFG held by Equity-Method Affiliates

    —       —         —         0       0       —         —         —         —         —         —         0  

Net Changes in Items other than Shareholders’ Equity

    —       —         —         —         —         (8,166 )     (34,296 )     (1,213 )     7,243       (36,432 )     (183,702 )     (220,135 )
                                                                                             

Total Changes during the period

    —       (16 )     (13,780 )     30,116       16,319       (8,166 )     (34,296 )     (1,213 )     7,243       (36,432 )     (183,702 )     (203,815 )
                                                                                             

Balance as of June 30, 2007

  ¥ 1,540,965   ¥ 411,093     ¥ 1,429,397     ¥ (2,213 )   ¥ 3,379,242     ¥ 1,542,462     ¥ (145,339 )   ¥ 149,402     ¥ (31,720 )   ¥ 1,514,804     ¥ 1,629,413     ¥ 6,523,460  
                                                                                             

Note: Amounts less than one million yen are rounded down.

For the three months ended June 30, 2006

 

   

Millions of yen

 
    Shareholders’ Equity    

Valuation and Translation Adjustments

             
    Common
Stock and
Preferred
Stock
  Capital
Surplus
  Retained
Earnings
    Treasury
Stock
    Total
Shareholders’
Equity
    Net
Unrealized
Gains on
Other
Securities,
net of Taxes
   

Net Deferred
Hedge
Losses,

net of Taxes

   

Revaluation
Reserve

for Land,

net of Taxes

    Foreign
Currency
Translation
Adjustments
    Total
Valuation
and
Translation
Adjustments
    Minority
Interests
    Total Net
Assets
 

Balance as of March 31, 2006

  ¥ 1,540,965   ¥ 411,160   ¥ 1,498,143     ¥ (46,814 )   ¥ 3,403,455     ¥ 1,279,216       —       ¥ 170,384     ¥ (48,062 )   ¥ 1,401,538     ¥ 1,359,122     ¥ 6,164,116  
                                                                                           

Changes during the period

                       

Cash Dividends*

    —       —       (79,849 )     —         (79,849 )     —         —         —         —         —         —         (79,849 )

Board Members’ Bonuses*

    —       —       (36 )     —         (36 )     —         —         —         —         —         —         (36 )

Net Income

    —       —       230,838       —         230,838       —         —         —         —         —         —         230,838  

Repurchase of Treasury Stock

    —       —       —         (158 )     (158 )     —         —         —         —         —         —         (158 )

Disposition of Treasury Stock

    —       6     —         7       14       —         —         —         —         —         —         14  

Transfer from Revaluation Reserve for Land, net of Taxes

    —       —       1,333       —         1,333       —         —         —         —         —         —         1,333  

Net Changes in Items other than Shareholders’ Equity

    —       —       —         —         —         (290,190 )     (175,014 )     (1,333 )     1,222       (465,316 )     (20,656 )     (485,972 )
                                                                                           

Total Changes during the period

    —       6     152,286       (150 )     152,142       (290,190 )     (175,014 )     (1,333 )     1,222       (465,316 )     (20,656 )     (333,829 )
                                                                                           

Balance as of June 30, 2006

  ¥ 1,540,965   ¥ 411,167   ¥ 1,650,429     ¥ (46,964 )   ¥ 3,555,597     ¥ 989,025     ¥ (175,014 )   ¥ 169,050     ¥ (46,839 )   ¥ 936,222     ¥ 1,338,466     ¥ 5,830,287  
                                                                                           

* Appropriation of Retained Earnings approved at the ordinary general meeting of shareholders in June 2006.

Note: Amounts less than one million yen are rounded down.

 

1-7


Mizuho Financial Group, Inc.

 

(Reference) For the fiscal year ended March 31, 2007

 

    Millions of yen  
    Shareholders’ Equity     Valuation and Translation Adjustments          
     Common
Stock and
Preferred
Stock
  Capital
Surplus
    Retained
Earnings
    Treasury
Stock
    Total
Shareholders’
Equity
    Net
Unrealized
Gains on
Other
Securities,
net of Taxes
  Net Deferred
Hedge
Losses,
net of Taxes
    Revaluation
Reserve
for Land,
net of Taxes
    Foreign
Currency
Translation
Adjustments
    Total
Valuation
and
Translation
Adjustments
  Minority
Interests
  Total Net
Assets
 

Balance as of March 31, 2006

  ¥ 1,540,965   ¥ 411,160     ¥ 1,498,143     ¥ (46,814 )   ¥ 3,403,455     ¥ 1,279,216   ¥ —       ¥ 170,384     ¥ (48,062 )   ¥ 1,401,538   ¥ 1,359,122   ¥ 6,164,116  
                                                                                       

Changes during the period

                       

Cash Dividends*

    —       —         (79,849 )     —         (79,849 )     —       —         —         —         —       —       (79,849 )

Board Members’ Bonuses*

    —       —         (36 )     —         (36 )     —       —         —         —         —       —       (36 )

Net Income

    —       —         620,965       —         620,965       —       —         —         —         —       —       620,965  

Repurchase of Treasury Stock

    —       —         —         (604,331 )     (604,331 )     —       —         —         —         —       —       (604,331 )

Disposition of Treasury Stock

    —       32       —         50       83       —       —         —         —         —       —       83  

Cancellation of Treasury Stock

    —       (83 )     (618,680 )     618,763       —         —       —         —         —         —       —       —    

Transfer from Revaluation Reserve for Land, net of Taxes

    —       —         19,768       —         19,768       —       —         —         —         —       —       19,768  

Decrease in Stock issued by MHFG held by Equity-Method Affiliates

    —       —         —         0       0       —       —         —         —         —       —       0  

Net Changes in Items other than Shareholders’ Equity

    —       —         —         —         —         271,411     (111,042 )     (19,768 )     9,098       149,698     453,992     603,691  
                                                                                       

Total Changes during the period

    —       (50 )     (57,832 )     14,483       (43,399 )     271,411     (111,042 )     (19,768 )     9,098       149,698     453,992     560,292  
                                                                                       

Balance as of March 31, 2007

  ¥ 1,540,965   ¥ 411,110     ¥ 1,440,310     ¥ (32,330 )   ¥ 3,360,055     ¥ 1,550,628   ¥ (111,042 )   ¥ 150,616     ¥ (38,964 )   ¥ 1,551,237   ¥ 1,813,115   ¥ 6,724,408  
                                                                                       

* Appropriation of Retained Earnings approved at the ordinary general meeting of shareholders in June 2006.

Note : Amounts less than one million yen are rounded down.

 

1-8


Mizuho Financial Group, Inc.

 

SUMMARY OF SEGMENT INFORMATION

<Segment Information by Type of Business>

 

     Millions of yen
For the three months ended June 30, 2007    Banking
Business
   Securities
Business
   Other    Total    Elimination     Consolidated
Results

Ordinary Income

                

(1) Ordinary Income from outside customers

   820,185    198,652    33,910    1,052,748    —       1,052,748

(2) Inter-segment Ordinary Income

   13,378    23,660    22,340    59,379    (59,379 )   —  
                              

Total

   833,564    222,312    56,251    1,112,127    (59,379 )   1,052,748
                              

Ordinary Expenses

   700,126    190,202    48,103    938,432    (52,421 )   886,010
                              

Ordinary Profits

   133,437    32,109    8,147    173,695    (6,957 )   166,737
                              
      Millions of yen
For the three months ended June 30, 2006    Banking
Business
   Securities
Business
   Other    Total    Elimination     Consolidated
Results

Ordinary Income

                

(1) Ordinary Income from outside customers

   681,570    138,756    37,831    858,158    —       858,158

(2) Inter-segment Ordinary Income

   12,427    12,957    23,210    48,595    (48,595 )   —  
                              

Total

   693,997    151,713    61,042    906,754    (48,595 )   858,158
                              

Ordinary Expenses

   466,914    127,811    53,018    647,744    (40,949 )   606,794
                              

Ordinary Profits

   227,083    23,902    8,024    259,009    (7,645 )   251,363
                              
      Millions of yen
(Reference) For the fiscal year ended March 31, 2007    Banking
Business
   Securities
Business
   Other    Total    Elimination     Consolidated
Results

Ordinary Income

                

(1) Ordinary Income from outside customers

   3,236,020    688,225    175,408    4,099,654    —       4,099,654

(2) Inter-segment Ordinary Income

   33,728    77,954    125,328    237,011    (237,011 )   —  
                              

Total

   3,269,748    766,180    300,736    4,336,666    (237,011 )   4,099,654
                              

Ordinary Expenses

   2,672,194    646,254    263,359    3,581,808    (230,323 )   3,351,484
                              

Ordinary Profits

   597,554    119,925    37,377    754,857    (6,687 )   748,170
                              

Notes:

1. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies.
2. Major components of type of business are as follows:
  (1) Banking Business: banking and trust banking business
  (2) Securities Business: securities business
  (3) Other: investment advisory business and other

 

1-9


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL INFORMATION

For the First Quarter of Fiscal 2007

<under Japanese GAAP>

 

 

 

LOGO


Mizuho Financial Group, Inc.

C O N T E N T S

 


Notes:

“CON”: Consolidated figures of Mizuho Financial Group, Inc.(“MHFG”)

“NON”: Non-consolidated figures of Mizuho Bank, Ltd. (“MHBK”), Mizuho Corporate Bank, Ltd. (“MHCB”) and Mizuho Trust & Banking Co., Ltd. (“MHTB”).

 


 

•SUMMARY RESULTS FOR THE FIRST QUARTER OF FISCAL 2007

•FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2007

   See above Notes    Pages

1. Income Analysis

   CON    NON    2 - 1

2. Unrealized Gains/Losses on Securities

   CON    NON    2 - 3

3. Deferred Hedge Gains/Losses on Derivative Transactions Qualifying for Hedge Accounting

   NON       2 - 5

4. Status of Disclosed Claims under the Financial Reconstruction Law (“FRL”)

   CON    NON    2 - 6

5. Status of Deposits and Loans

   NON       2 - 8

 


This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation, incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; revised assumptions or other changes related to our pension plans; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effectiveness of our operational, legal and other risk management policies; our ability to avoid reputational harm; and effects of changes in general economic conditions in Japan.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our registration statement on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on October 19, 2006, which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

 



Summary Results for the First Quarter of Fiscal 2007

 


Mizuho Financial Group (“the Group”) is focusing on enhancement of its competitiveness and profitability through continued steady implementation of the “Channel to Discovery” Plan. Even after we fully repaid the public funds, we continue to improve the Group’s capital quality and strengthen the capital base which we believe will sustain our growth strategies.

The summary results for the first quarter of fiscal 2007, which reflect these efforts, are described below.

 


 

I. Summary of Income Analysis

 

· Consolidated Net Business Profits (Apr. 1-Jun. 30, 2007)

 

  Ÿ Consolidated Gross Profits for the three months ended June 30, 2007 decreased by JPY 26.3 billion on a year-on-year basis. This was because, despite an increase in net interest income from deposit and loan business, there was a decline in net dividend and interest income related to equity and other investments and non-interest income from Customer Groups of the banking subsidiaries and a decrease in market-related income of the banking subsidiaries, compared with the corresponding period of the previous fiscal year.

 

  Ÿ Consolidated Net Business Profits for the same period was JPY 166.2 billion (a decrease of JPY 39.1 billion on a year-on-year basis) due to a combination of the above factors and an increase in G&A expenses driven by an outlay of management resources for enhancing future top-line growth.

(Consolidated)

 

        

1Q FY2007

(Apr. 1-Jun.30, 2007)

               Change from
1Q FY2006
    (JPY Bn)          

Consolidated Gross Profits

     449.6    -26.3

Consolidated Net Business Profits *1

     166.2    -39.1

Credit-related Costs

     -38.2    -53.4

Net Gains related to Stocks *2

     47.7    5.9

Ordinary Profits

     166.7    -84.6

Net Income

     116.4    -114.3

*1: Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + certain equity in income from investments in affiliates and other consolidation adjustments
*2: Gains of JPY 7.7 billion on sales of stocks associated with credit and alternative investments, which we made as part of our efforts to diversify sources of our market-related income, were recorded as Net Gains related to Stocks.

 

· Consolidated Net Income (Apr. 1-Jun. 30, 2007)

 

  Ÿ Consolidated Net Income for the three months ended June 30, 2007 amounted to JPY 116.4 billion (a JPY 114.3 billion decrease from that of the corresponding period of the previous fiscal year). This was mainly because, together with the aforementioned factors, Credit-related Costs in this period reverted to a net provision from a net reversal in the corresponding period of the previous fiscal year. Meanwhile, there has been no revision to our earnings estimates of JPY 350 billion for the first half of this fiscal year.

 

  Ÿ The Group continues to maintain a high level of financial soundness.

 

    

1Q FY2007

(Apr.1-Jun.30, 2007)

 
           Change from
1Q FY2006
 

EPS *1 (JPY)

   9,161     -9,115  

ROE *2

   9.5 %   -10.3 %

*1: Fully diluted EPS: Diluted Net Income for 1Q per Share of Common Stock*

[*Calculated under the assumption that all dilutive convertible securities are converted at the price calculated based on the market price at the beginning of the fiscal year]

*2: Return on Equity = Annualized Net Income**/ [{(Total Shareholders’ Equity + Total Valuation and Translation Adjustments) <Beginning of 1Q>*** + (Total Shareholders’ Equity + Total Valuation and Translation Adjustments) <End of 1Q>} /2 ] X 100

[** Net Income for 1Q of FY2007 (Apr.1-Jun.30, 2007) x 365 / 91]

[*** The figure for the beginning of FY2006 was calculated using former “Total Shareholders’ Equity” data]

 

         Jun.30, 2007  
                Change from
Mar.31, 2007
 
    (JPY Bn, %)             

Net Deferred Tax Assets (DTAs) (Consolidated)

     154.7     -16.0  

Disclosed Claims under the Financial Reconstruction Law (3 Banks)

     1,319.6     72.8  

NPL Ratio

     1.73 %   0.08 %

Unrealized Gains on Other Securities * (Consolidated)

     2,446.0     8.8  

* The base amount to be recorded directly to Net Assets after tax and other necessary adjustments


II. Steady Enhancement of the Group’s Comprehensive Profitability

 

· Net Interest Income

 

  Ÿ The average loan balance for the three-month period from April to June 2007 continued to increase, as shown on the graph, mainly driven by an expansion in overseas lending.

 

  Ÿ In addition, the domestic loan and deposit rate margin for the same period steadily improved (an increase of 0.14% compared with the corresponding period of the previous fiscal year).

 

  Ÿ Meanwhile, despite an increase in net interest income from deposit and loan business of Customer Groups of the banking subsidiaries backed by the aforementioned improvement in the domestic loan and deposit rate margin, Consolidated Net Interest Income for the same period decreased on a year-on-year basis. This was mainly due to a decline in net dividend and interest income related to equity and other investments and a decrease in net interest income from the bond portfolio in the Trading segment.

LOGO

 

· Non-Interest Income

 

  Ÿ Net Fee and Commission Income of the 3 Banks for the three-month period from April to June 2007 amounted to JPY 76.1 billion, a decrease of JPY 3.1 billion on a year-on-year basis.

 

  Ÿ As for our business with individual customers, fee income related to investment trusts and individual annuities continued to increase.

 

  Ÿ As for our business with corporate customers, however, fee and commission income from foreign exchange business and overseas business, which showed a steady growth in the first quarter of the previous fiscal year, and others, decreased.

LOGO


III. Disciplined Capital Management

The Group has been implementing disciplined capital management even after the full repayment of public funds in the last fiscal year, aiming to improve the quality of capital and strengthen the capital base which we believe will sustain its growth strategies.

 

· Repurchase of Own Shares (Common Shares)

 

  Ÿ On May 22, 2007, the Board of Directors resolved to set up a limit for repurchasing own shares (common shares) up to a maximum of JPY 150.0 billion. Repurchase will be made for the purpose of, among other things, offsetting the potential dilutive effect of the conversion of the Eleventh Series Class XI Preferred Stock (JPY 943.7 Bn in issued value) in consideration of the possibility that the number of shares of our common stock will increase after the commencement of the conversion period (on July 1, 2008). No such repurchase had been made as of the end of June.

 

· Repurchase of Treasury Stock Held by Our Subsidiary

 

  Ÿ On May 28, 2007, we repurchased and cancelled all the treasury stock (261,040.83 shares of common stock, JPY 221.1 billion in value) held by our subsidiary, Mizuho Financial Strategy Co., Ltd.

 

· Redemption of Preferred Securities

 

  Ÿ On June 29, 2007, we redeemed all of the JPY 185.5 billion of non-dilutive preferred debt securities which were issued in February 2002 and became redeemable at the issuer’s option in June 2007.

[Reference] Breakdown of Earnings by Business Segment

(3 Banks)

 

        

1Q FY2007

(Apr.1-Jun.30, 2007)

 
     (JPY Bn)         Change from
1Q FY2006
 

Gross Profits

     322.0    - 19.5  

G&A Expenses

     - 179.7    - 11.2 *

Customer Groups

     142.3    - 30.6  

Gross Profits

     34.5    - 10.8  

G&A Expenses

     - 35.9    3.8 *

Trading & Others

     - 1.4    - 7.1  

Gross Profits

     356.6    - 30.3  

G&A Expenses

     - 215.7    - 7.6  

Net Business Profits **

     140.8    - 37.9  

(Note) For reference purposes, the figures in the above table are aggregated according to business segments and prepared using internal management data in line with the management accounting rules for FY2007.
* After excluding the effects of the change in the management accounting rules in relation to allocation of G&A expenses
** Before Reversal of (Provision for) General Reserve for Possible Losses on Loans

 

 

Definition

    
3 Banks:   

Aggregate figures for Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking on a non-consolidated basis. On October 1, 2005, each of the financial subsidiaries for corporate revitalization was merged into its own parent bank, and figures before October 1, 2005 are the aggregate figures for the above three banks and their financial subsidiaries for corporate revitalization

 


This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation, incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; revised assumptions or other changes related to our pension plans; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effectiveness of our operational, legal and other risk management policies; our ability to avoid reputational harm; and effects of changes in general economic conditions in Japan.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our registration statement on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on October 19, 2006, which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov. We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.


Mizuho Financial Group, Inc.

 

FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2007

1. Income Analysis

    CONSOLIDATED

 

          (Billions of yen)  
          First Quarter of
Fiscal 2007
    Change     First Quarter of
Fiscal 2006
   

(Reference)

Fiscal 2006

 

Consolidated Gross Profits

   1    449.6     (26.3 )   476.0     2,117.3  

Net Interest Income

   2    250.5     (5.3 )   255.9     1,090.2  

Fiduciary Income

   3    14.2     (0.2 )   14.4     66.9  

Credit Costs for Trust Accounts

   4    —       —       —       —    

Net Fee and Commission Income

   5    107.2     (8.9 )   116.2     551.1  

Net Trading Income

   6    19.0     (30.0 )   49.0     261.5  

Net Other Operating Income

   7    58.6     18.2     40.3     147.5  

General and Administrative Expenses

   8    (275.2 )   (13.2 )   (262.0 )   (1,091.6 )

Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans)

   9    (47.7 )   (47.6 )   (0.0 )   (142.6 )

Net Gains (Losses) related to Stocks

   10    47.7     5.9     41.7     (109.5 )

Equity in Income from Investments in Affiliates

   11    3.1     0.6     2.4     9.3  

Other

   12    (10.7 )   (3.9 )   (6.7 )   (34.7 )
                           

Ordinary Profits

   13    166.7     (84.6 )   251.3     748.1  

Net Extraordinary Gains (Losses)

   14    11.8     (10.7 )   22.6     226.7  

Reversal of Reserves for Possible Losses on Loans, etc.

   15    9.4     (5.7 )   15.2     102.4  

Reversal of Reserve for Possible Losses on Investments

   16    —       —       —       0.1  
                           

Income before Income Taxes and Minority Interests

   17    178.5     (95.4 )   274.0     974.8  

Income Taxes

   18    (33.8 )   (8.9 )   (24.8 )   (266.9 )

Minority Interests in Net Income

   19    (28.2 )   (9.9 )   (18.3 )   (86.9 )
                           

Net Income

   20    116.4     (114.3 )   230.8     620.9  
                           
           
           

Credit-related Costs (including Credit Costs for Trust Accounts)

   21    (38.2 )   (53.4 )   15.1     (40.1 )

* Credit-related Costs [21] = Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve

                                                for Possible Losses on Loans) [9] + Reversal of Reserves for Possible Losses on Loans, etc. [15] +

                                                Credit Costs for Trust Accounts [4]

 

 

 

(Reference)

 

           

Consolidated Net Business Profits

   22    166.2     (39.1 )   205.4     991.6  

* Consolidated Net Business Profits [22] = Consolidated Gross Profits [1] – General and Administrative Expenses (excluding

                                                                       Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain

                                                                        other consolidation adjustments

 

Number of consolidated subsidiaries

   23    136     5     131     133  

Number of affiliates under the equity method

   24    21     4     17     19  

 

2-1


Mizuho Financial Group, Inc.

 

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

          (Billions of yen)  
          First Quarter of Fiscal 2007    

First Quarter of

Fiscal 2006

   

(Reference)

Fiscal 2006

 
          MHBK     MHCB     MHTB     Aggregated
Figures
    Change      

Gross Profits

   1    208.1     116.8     31.6     356.6     (30.3 )   387.0     1,700.2  

Net Interest Income

   2    147.8     68.0     10.8     226.8     (7.5 )   234.3     952.5  

Fiduciary Income

   3    —       —       13.9     13.9     (0.2 )   14.1     66.1  

Credit Costs for Trust Accounts

   4    —       —       —       —       —       —       —    

Net Fee and Commission Income

   5    43.4     25.9     6.7     76.1     (3.1 )   79.3     400.8  

Net Trading Income

   6    (19.3 )   1.8     0.1     (17.4 )   (34.4 )   17.0     129.4  

Net Other Operating Income

   7    36.2     20.9     (0.0 )   57.1     15.0     42.0     151.3  

General and Administrative Expenses (excluding Non-Recurring Losses)

   8    (127.1 )   (66.5 )   (22.0 )   (215.7 )   (7.6 )   (208.1 )   (855.7 )
                                             

* Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)

   9    80.9     50.2     9.6     140.8     (37.9 )   178.8     844.5  

Reversal of (Provision for) General Reserve for Possible Losses on Loans

   10    3.9     0.4     —       4.4     10.4     (5.9 )   (17.3 )
                                             

Net Business Profits

   11    84.8     50.7     9.6     145.2     (27.5 )   172.8     827.2  

Net Gains (Losses) related to Bonds

   12    (0.8 )   7.8     (0.0 )   6.9     6.8     0.0     25.5  

Net Non-Recurring Gains (Losses)

   13    (46.8 )   12.9     1.2     (32.6 )   (68.9 )   36.3     (254.7 )

Net Gains (Losses) related to Stocks

   14    1.8     40.5     2.2     44.7     7.6     37.1     (115.3 )

Expenses related to Portfolio Problems

   15    (39.7 )   (19.2 )   (0.0 )   (59.1 )   (58.7 )   (0.4 )   (111.1 )

Other

   16    (8.9 )   (8.3 )   (0.9 )   (18.2 )   (17.8 )   (0.3 )   (28.2 )
                                             

Ordinary Profits

   17    38.0     63.7     10.8     112.6     (96.5 )   209.1     572.4  

Net Extraordinary Gains (Losses)

   18    8.5     1.6     8.8     19.0     (10.1 )   29.1     235.8  

Reversal of Reserves for Possible Losses on Loans, etc.

   19    6.9     0.8     8.8     16.6     (4.9 )   21.5     105.1  

Reversal of Reserve for Possible Losses on Investments

   20    —       —       —       —       (0.0 )   0.0     0.1  
                                             

Income before Income Taxes

   21    46.6     65.4     19.6     131.6     (106.6 )   238.3     808.3  

Income Taxes

   22    (4.9 )   (9.6 )   (1.7 )   (16.3 )   (0.9 )   (15.3 )   (210.1 )
                                             

Net Income

   23    41.6     55.7     17.9     115.2     (107.6 )   222.9     598.2  
                                             

*  Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) of MHTB excludes the amounts of Credit Costs for Trust Accounts [4].

     

Credit-related Costs

   24    (28.8 )   (17.9 )   8.7     (38.0 )   (53.2 )   15.1     (23.3 )

* Credit-related Costs [24] = Expenses related to Portfolio Problems [15] + Reversal of (Provision for) General Reserve

                                                for Possible Losses on Loans [10] + Reversal of Reserves for Possible Losses on Loans, etc. [19] +

                                                Credit Costs for Trust Accounts [4]

 

 

 

 

2-2


Mizuho Financial Group, Inc.

 

2. Unrealized Gains/Losses on Securities

CONSOLIDATED

(1) Other Securities (which have readily determinable fair value)

 

     (Billions of yen)
     As of June 30, 2007    As of June 30, 2006    (Reference) As of March 31, 2007
    

Book Value

(=Fair Value)

   Unrealized Gains/Losses   

Book Value

(=Fair Value)

   Unrealized Gains/Losses   

Book Value

(=Fair Value)

   Unrealized Gains/Losses
              Gains    Losses             Gains    Losses             Gains    Losses

MHFG (Consolidated)

                                

Other Securities

   33,601.9    2,370.5     2,933.4    562.9    31,813.7    1,616.4     2,173.1    556.6    30,730.7    2,441.1     2,803.3    362.2

Japanese Stocks

   6,080.3    2,797.5     2,852.9    55.3    5,065.0    2,053.6     2,108.0    54.3    6,010.8    2,693.7     2,741.8    48.0

Japanese Bonds

   17,567.4    (225.9 )   0.7    226.7    20,244.8    (270.5 )   0.8    271.3    15,397.1    (157.4 )   3.9    161.4

Other

   9,954.1    (201.1 )   79.7    280.8    6,503.9    (166.6 )   64.2    230.9    9,322.7    (95.2 )   57.5    152.7

 


Notes:

 

1.

   In addition to “Securities” on the consolidated balance sheets, NCDs in “Cash and Due from Banks” and certain items in “Other Debt Purchased” are also included.
 

2.

   Fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.
 

3.

   Unrealized Gains/Losses include ¥(75.5) billion, ¥(82.3) billion and ¥3.9 billion, which were recognized in the statement of income for June 30, 2007, June 30, 2006 and March 31, 2007, respectively, by applying the fair-value hedge method.

 

(2) Bonds Held to Maturity (which have readily determinable fair value)
    (Billions of yen)
    As of June 30, 2007    As of June 30, 2006    (Reference) As of March 31, 2007
         Unrealized Gains/Losses         Unrealized Gains/Losses         Unrealized Gains/Losses
    Book Value          Gains    Losses    Book Value          Gains    Losses    Book Value          Gains    Losses

MHFG (Consolidated)

  1,154.0    (9.6 )   —      9.6    1,349.6    (18.0 )   0.0    18.0    1,337.4    (8.0 )   0.0    8.0
NON-CONSOLIDATED
Aggregated Figures of the 3 Banks
(1) Other Securities (which have readily determinable fair value)
    (Billions of yen)
    As of June 30, 2007    As of June 30, 2006    (Reference) As of March 31, 2007
   

Book Value

(=Fair Value)

   Unrealized Gains/Losses   

Book Value

(=Fair Value)

   Unrealized Gains/Losses   

Book Value

(=Fair Value)

   Unrealized Gains/Losses
             Gains    Losses             Gains    Losses             Gains    Losses

MHBK

                               

Other Securities

  13,012.4    355.5     505.3    149.7    15,723.9    231.1     393.8    162.7    11,334.7    380.6     481.7    101.1

Japanese Stocks

  1,401.5    464.5     490.6    26.1    1,101.5    347.7     371.1    23.3    1,379.0    446.5     466.9    20.4

Japanese Bonds

  10,724.1    (98.5 )   0.2    98.8    14,253.2    (134.2 )   0.4    134.6    9,205.0    (72.1 )   2.1    74.3

Other

  886.6    (10.4 )   14.3    24.8    369.1    17.6     22.3    4.7    750.5    6.2     12.6    6.4

MHCB

                               

Other Securities

  18,183.7    1,745.0     2,114.9    369.8    14,002.9    1,160.1     1,510.3    350.1    17,218.4    1,787.1     2,013.7    226.5

Japanese Stocks

  4,220.8    2,025.5     2,054.2    28.6    3,527.4    1,438.1     1,465.1    27.0    4,176.6    1,944.3     1,969.4    25.1

Japanese Bonds

  5,544.6    (94.3 )   0.4    94.7    4,823.0    (103.3 )   0.2    103.6    5,065.9    (58.7 )   1.7    60.4

Other

  8,418.2    (186.1 )   60.2    246.4    5,652.5    (174.5 )   44.8    219.4    7,975.8    (98.4 )   42.5    140.9

MHTB

                               

Other Securities

  1,711.8    187.5     230.5    43.0    1,495.1    143.0     181.9    38.9    1,571.6    189.0     221.6    32.5

Japanese Stocks

  415.5    225.7     227.1    1.4    375.0    180.6     181.2    0.5    409.4    218.9     220.2    1.3

Japanese Bonds

  1,035.9    (32.4 )   0.0    32.4    967.6    (32.2 )   0.0    32.3    915.4    (26.3 )   0.0    26.4

Other

  260.3    (5.7 )   3.3    9.1    152.3    (5.3 )   0.6    5.9    246.6    (3.5 )   1.3    4.8

Total

                               

Other Securities

  32,908.0    2,288.1     2,850.8    562.6    31,222.0    1,534.3     2,086.1    551.8    30,124.7    2,356.8     2,717.1    360.2

Japanese Stocks

  6,038.0    2,715.8     2,772.0    56.2    5,003.9    1,966.4     2,017.4    51.0    5,965.2    2,609.8     2,656.6    46.8

Japanese Bonds

  17,304.7    (225.3 )   0.7    226.0    20,043.9    (269.8 )   0.8    270.6    15,186.4    (157.2 )   3.9    161.2

Other

  9,565.2    (202.3 )   78.0    280.3    6,174.1    (162.2 )   67.8    230.1    8,972.9    (95.7 )   56.5    152.2

 


Notes:

 

1.

   In addition to securities, NCDs and certain items in other debt purchased are also included.
 

2.

   Fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the date above. Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the date above.
 

3.

   Unrealized Gains/Losses include ¥(75.5) billion, ¥(82.3) billion and ¥3.9 billion, which were recognized as Income/Losses for June 30, 2007, June 30, 2006 and March 31, 2007, respectively, by applying the fair-value hedge method.

 

2-3


Mizuho Financial Group, Inc.

 

(2) Bonds Held to Maturity (which have readily determinable fair value)

 

     (Billions of yen)
     As of June 30, 2007    As of June 30, 2006   

(Reference)

As of March 31, 2007

     Book Value    Unrealized Gains/Losses    Book Value    Unrealized Gains/Losses    Book Value    Unrealized Gains/Losses
                Gains    Losses               Gains    Losses               Gains    Losses

MHBK

   1,154.0    (9.6 )   —      9.6    1,349.6    (18.0 )   0.0    18.0    1,337.4    (8.0 )   0.0    8.0

MHCB

   —      —       —      —      —      —       —      —      —      —       —      —  

MHTB

   —      —       —      —      —      —       —      —      —      —       —      —  
                                                              

Total

   1,154.0    (9.6 )   —      9.6    1,349.6    (18.0 )   0.0    18.0    1,337.4    (8.0 )   0.0    8.0
                                                              
(3) Investments in Subsidiaries and Affiliates (which have readily determinable fair value)
     (Billions of yen)
     As of June 30, 2007    As of June 30, 2006   

(Reference)

As of March 31, 2007

     Book Value    Unrealized Gains/Losses    Book Value    Unrealized Gains/Losses    Book Value    Unrealized Gains/Losses
                Gains    Losses               Gains    Losses               Gains    Losses

MHBK

   67.0    72.0     72.0    —      67.0    78.8     78.8    —      67.0    90.9     90.9    —  

MHCB

   11.6    40.9     40.9    —      11.6    29.5     29.5    —      11.6    39.9     39.9    —  

MHTB

   —      —       —      —      —      —       —      —      —      —       —      —  
                                                              

Total

   78.7    113.0     113.0    —      78.7    108.4     108.4    —      78.7    130.9     130.9    —  
                                                              

(Reference)

Unrealized Gains/Losses on Other Securities

(the base amount to be recorded directly to Net Assets after tax and other necessary adjustments)

For certain Other Securities (which have readily determinable fair value), Unrealized Gains/Losses were recognized as Income/Losses by applying the fair-value hedge method.

They were excluded from Unrealized gains/Losses on Other Securities.

These adjusted Unrealized Gains/Losses were the base amount, which was to be recorded directly to Net Assets after tax and other necessary adjustments.

The base amount is as follows:

CONSOLIDATED

 

     (Billions of yen)  
     As of June 30, 2007     As of June 30, 2006     (Reference)
As of March 31, 2007
 
     Unrealized Gains/Losses     Unrealized Gains/Losses     Unrealized Gains/Losses  
           Change from
June 30, 2006
    (Reference)
Change from
March 31, 2007
             

Other Securities

   2,446.0     747.2     8.8     1,698.7     2,437.1  

Japanese Stocks

   2,797.5     743.9     103.7     2,053.6     2,693.7  

Japanese Bonds

   (228.0 )   9.4     (63.9 )   (237.4 )   (164.1 )

Other

   (123.4 )   (6.1 )   (31.0 )   (117.3 )   (92.4 )
NON-CONSOLIDATED           
Aggregated Figures of the 3 Banks           
     (Billions of yen)  
     As of June 30, 2007     As of June 30, 2006    

(Reference)

As of March 31, 2007

 
     Unrealized Gains/Losses     Unrealized Gains/Losses     Unrealized Gains/Losses  
           Change from
June 30, 2006
    (Reference)
Change from
March 31, 2007
             

Other Securities

   2,363.7     747.0     10.7     1,616.6     2,352.9  

Japanese Stocks

   2,715.8     749.3     106.0     1,966.4     2,609.8  

Japanese Bonds

   (227.4 )   9.3     (63.4 )   (236.8 )   (163.9 )

Other

   (124.7 )   (11.6 )   (31.7 )   (113.0 )   (92.9 )

 

2-4


Mizuho Financial Group, Inc.

 

3. Deferred Hedge Gains/Losses on Derivative Transactions Qualifying for Hedge Accounting

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

      (Billions of yen)  
     As of June 30, 2007     As of June 30, 2006    

(Reference)

As of March 31, 2007

 
     Deferred Hedge Gains/Losses     Deferred Hedge Gains/Losses     Deferred Hedge Gains/Losses  
     Gains    Losses          Gains    Losses          Gains    Losses       

MHBK

   86.2    212.3    (126.0 )   121.6    283.2    (161.5 )   97.0    196.3    (99.3 )

MHCB

   424.7    583.1    (158.4 )   469.0    607.6    (138.6 )   375.5    485.5    (110.0 )

MHTB

   48.6    52.5    (3.9 )   50.5    55.4    (4.9 )   51.5    50.2    1.3  
                                                

Total

   559.6    848.1    (288.4 )   641.2    946.3    (305.1 )   524.1    732.1    (208.0 )
                                                

Note: Above figures reflect all derivative transactions qualifying for hedge accounting, and are before net of applicable income taxes.

 

2-5


Mizuho Financial Group, Inc.

 

4. Status of Disclosed Claims under the Financial Reconstruction Law (“FRL”)

CONSOLIDATED

 

    (Billions of yen)
    As of
June 30, 2007
  Change from
June 30, 2006
   

(Reference)

Change from
March 31, 2007

    As of
June 30, 2006
 

(Reference)

As of
March 31, 2007

Consolidated

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  146.1   4.3     7.1     141.8   139.0

Claims with Collection Risk

  547.6   206.4     (48.6 )   341.2   596.3

Claims for Special Attention

  653.3   100.8     124.7     552.4   528.6
                       

Total

  1,347.1   311.6     83.1     1,035.4   1,263.9
                       

Trust Account

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  —     —       —       —     —  

Claims with Collection Risk

  7.6   (21.2 )   (0.0 )   28.9   7.7

Claims for Special Attention

  0.1   (0.0 )   (0.0 )   0.1   0.1
                       

Total

  7.7   (21.3 )   (0.0 )   29.0   7.8
                       

Total (Consolidated + Trust Account)

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  146.1   4.3     7.1     141.8   139.0

Claims with Collection Risk

  555.2   185.1     (48.7 )   370.1   604.0

Claims for Special Attention

  653.4   100.8     124.7     552.6   528.7
                       

Total

  1,354.8   290.3     83.0     1,064.5   1,271.8
                       

Note: Trust Account denotes trust accounts with contracts indemnifying the principal amounts.

 

2-6


Mizuho Financial Group, Inc.

 

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

    (Billions of yen, %)  
    As of
June 30, 2007
    Change from
June 30, 2006
   

(Reference)

Change from
March 31, 2007

    As of
June 30, 2006
   

(Reference)

As of
March 31, 2007

 

MHBK

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  77.1     (16.2 )   6.7     93.3     70.3  

Claims with Collection Risk

  324.6     86.5     49.1     238.0     275.4  

Claims for Special Attention

  241.5     2.8     (2.7 )   238.6     244.3  

Sub-total [1]

  643.3     73.1     53.1     570.1     590.1  

NPL ratio [1]/[2]

  1.73 %   0.16 %   0.15 %   1.56 %   1.57 %

Normal Claims

  36,539.5     751.2     (298.9 )   35,788.2     36,838.4  
                             

Total [2]

  37,182.8     824.4     (245.7 )   36,358.3     37,428.5  
                             

MHCB

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  22.3     (0.2 )   0.9     22.5     21.3  

Claims with Collection Risk

  205.9     119.0     (65.8 )   86.9     271.7  

Claims for Special Attention

  309.0     63.7     89.5     245.2     219.5  

Sub-total [3]

  537.3     182.5     24.6     354.7     512.6  

NPL ratio [3]/[4]

  1.54 %   0.45 %   0.03 %   1.08 %   1.51 %

Normal Claims

  34,298.3     2,073.5     885.6     32,224.7     33,412.7  
                             

Total [4]

  34,835.6     2,256.1     910.2     32,579.5     33,925.4  
                             

MHTB

         

Banking Account

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  30.8     27.5     0.2     3.3     30.5  

Claims with Collection Risk

  8.7     (0.9 )   (34.7 )   9.6     43.4  

Claims for Special Attention

  91.6     24.6     29.6     67.0     62.0  

Sub-total [5]

  131.2     51.2     (4.8 )   80.0     136.1  

NPL ratio [5]/[6]

  3.13 %   0.91 %   (0.13 )%   2.22 %   3.27 %

Normal Claims

  4,048.7     527.5     31.9     3,521.1     4,016.8  
                             

Total [6]

  4,180.0     578.7     27.0     3,601.2     4,152.9  
                             

Trust Account

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  —       —       —       —       —    

Claims with Collection Risk

  7.6     (21.2 )   (0.0 )   28.9     7.7  

Claims for Special Attention

  0.1     (0.0 )   (0.0 )   0.1     0.1  

Sub-total [7]

  7.7     (21.3 )   (0.0 )   29.0     7.8  

NPL ratio [7]/[8]

  15.60 %   (15.59 )%   0.79 %   31.19 %   14.80 %

Normal Claims

  41.9     (22.1 )   (3.0 )   64.1     45.0  
                             

Total [8]

  49.7     (43.5 )   (3.1 )   93.2     52.8  
                             

Total (Banking Account + Trust Account)

         

Claims against Bankrupt and Substantially Bankrupt Obligors

  130.3     11.0     8.0     119.2     122.2  

Claims with Collection Risk

  546.9     183.3     (51.4 )   363.5     598.4  

Claims for Special Attention

  642.3     91.1     116.3     551.1     526.0  

Sub-total [9]

  1,319.6     285.5     72.8     1,034.0     1,246.7  

NPL ratio [9]/[10]

  1.73 %   0.30 %   0.08 %   1.42 %   1.65 %

Normal Claims

  74,928.5     3,330.2     615.5     71,598.3     74,313.0  
                             

Total [10]

  76,248.2     3,615.8     688.4     72,632.3     75,559.7  
                             

Notes:     1.

   Trust Account denotes trust accounts with contracts indemnifying the principal amounts.
               2.    NPL : Non-Performing Loans

 

2-7


Mizuho Financial Group, Inc.

 

5. Status of Deposits and Loans

NON-CONSOLIDATED

(1)-1 Deposits

Aggregated Figures of the 3 Banks

 

     (Billions of yen)
      As of
June 30, 2007
   Change     As of
June 30, 2006
  

(Reference)

As of
March 31, 2007

            

MHBK

   53,811.8    1,788.5     52,023.3    53,118.7

MHCB

   19,420.0    406.3     19,013.6    19,257.8

MHTB

   2,971.9    322.3     2,649.5    2,821.8
                    

Total

   76,203.8    2,517.3     73,686.5    75,198.4
                    
(1)-2 Domestic Deposits           
Aggregated Figures of the 3 Banks           
     (Billions of yen)
     

As of

June 30, 2007

   Change    

As of

June 30, 2006

  

(Reference)

As of
March 31, 2007

            

MHBK

   53,751.2    1,782.4     51,968.7    52,925.5

Individual deposits

   31,514.1    1,144.5     30,369.5    30,604.9

MHCB

   9,415.1    (1,280.4 )   10,695.6    9,795.5

Individual deposits

   5.2    (1.9 )   7.1    8.3

MHTB

   2,956.1    306.5     2,649.5    2,810.6

Individual deposits

   1,807.0    12.7     1,794.2    1,809.6
                    

Total

   66,122.5    808.5     65,313.9    65,531.7

Individual deposits

   33,326.3    1,155.3     32,171.0    32,422.9
                    

Note:     Above figures are before adjustment of transit accounts for inter-office transactions, and do not include deposits booked at               overseas offices and offshore deposits.

(2) Loans and Bills Discounted           
Aggregated Figures of the 3 Banks           
     (Billions of yen)
     

As of

June 30, 2007

   Change    

As of

June 30, 2006

  

(Reference)

As of

March 31, 2007

            

MHBK

   33,934.3    750.3     33,184.0    34,065.0

MHCB

   29,156.9    1,427.7     27,729.2    28,734.8

MHTB

   4,051.0    553.9     3,497.0    4,026.2
                    

Total

   67,142.3    2,732.0     64,410.2    66,826.1
                    

Note:     Loans to MHFG are included as follows:

    As of June 30, 2007: ¥1,380.0 billion (from MHBK ¥690.0 billion; from MHCB ¥690.0 billion)

    As of June 30, 2006: ¥1,638.0 billion (from MHBK ¥728.0 billion; from MHCB ¥910.0 billion)

    As of March 31, 2007: ¥1,380.0 billion (from MHBK ¥690.0 billion; from MHCB ¥690.0 billion)

 

(3) Interest Margins (Domestic Operations)

Aggregated Figures of MHBK and MHCB

 

          (%)
          First Quarter of
Fiscal 2007
( For the three months )
   Change    First Quarter of
Fiscal 2006
( For the three months )
  

(Reference)

Fiscal 2006

                  
MHBK               

Return on Loans and Bills Discounted

   1    1.82    0.27    1.54    1.62

Cost of Deposits and Debentures

   2    0.23    0.19    0.04    0.10

Loan and Deposit Rate Margin [1]-[2]

   3    1.58    0.08    1.50    1.51
MHCB               

Return on Loans and Bills Discounted

   4    1.27    0.42    0.85    1.02

Cost of Deposits and Debentures

   5    0.46    0.25    0.20    0.32

Loan and Deposit Rate Margin [4]-[5]

   6    0.81    0.16    0.65    0.70
Total               

Return on Loans and Bills Discounted

   7    1.62    0.33    1.28    1.40

Cost of Deposits and Debentures

   8    0.28    0.20    0.08    0.16

Loan and Deposit Rate Margin [7]-[8]

   9    1.34    0.13    1.20    1.24

Notes:     1.    Return on Loans and Bills Discounted excludes loans to MHFG.

     
               2.    Deposits and Debentures include NCDs.

(Reference) After excluding Loans to Deposit Insurance Corporation of Japan, government and others

 

Total

              

Return on Loans and Bills Discounted

   10    1.73    0.34    1.38    1.50

Loan and Deposit Rate Margin [10]-[8]

   11    1.44    0.14    1.29    1.34

 

2-8

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