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Mizuho Financial Group 6-K 2008

Documents found in this filing:

  1. 6-K
  2. Graphic
  3. Graphic
  4. Graphic
  5. Graphic
  6. Graphic
  7. 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 January, 2008.

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:   January 31, 2008  
Mizuho Financial Group, Inc.
By:  

/s/ Satoru Nishibori

Name:   Satoru Nishibori
Title:   Managing Director / CFO


For Immediate Release:    January 31, 2008

 

 

Consolidated Financial Information for the Third Quarter of Fiscal 2007

<under Japanese GAAP>

  LOGO

 

Company Name:    Mizuho Financial Group, Inc. (“MHFG”)
Stock Code Number (Japan):    8411

Stock Exchanges (Japan):

URL:

Address:

  

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 Third Quarter of Fiscal 2007 (for the nine months ended December 31, 2007)

(1) Consolidated Results of Operations

 

     (%: Changes from corresponding period of previous fiscal year)
     Ordinary Income    Ordinary Profits     Net Income     Net Income per Share of
Common Stock
   Diluted Net Income per Share of
Common Stock
     ¥ million    %    ¥ million    %     ¥ million    %     ¥    ¥

3Q F2007

   3,428,422    19.8    490,989    (33.9 )   393,028    (32.2 )   34,149.27    31,154.71

3Q F2006

   2,861,519    10.8    743,087    (0.3 )   579,967    (0.2 )   49,662.96    45,643.70
                               

(Reference) Fiscal 2006

   4,099,654       748,170      620,965      51,474.49    48,803.07
                               

 

 

Notes:       1.        Equity in Income from Investments in Affiliates :
     3Q F2007   ¥8,442 million,     3Q F2006   ¥6,772 million,     Fiscal 2006   ¥9,324 million
  2.    Average outstanding shares of common stock (consolidated basis) :
     3Q F2007   11,509,143 shares,     3Q F2006   11,607,650 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    %    ¥

3Q F2007

   155,747,871    6,126,135    2.9    313,090.94

3Q F2006

   151,853,501    5,942,522    3.0    309,213.45
                   

(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 December 31, 2007   11,391,693 shares,   As of December 31, 2006   11,607,320 shares,
     As of March 31, 2007   11,607,155 shares
  2.    Own Capital:
     As of December 31, 2007   ¥4,547,066 million,   As of December 31, 2006   ¥4,569,569 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)

 

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

Fiscal 2007

   4,800,000    17.0    630,000    (15.7 )   480,000    (22.7 )   40,072.58

MHFG hereby revises its consolidated earnings estimates for fiscal 2007, which were announced on November 14, 2007. Please refer to “ (3) Earnings Estimates” on page 1-3 in this “ Consolidated Financial Information for the Third Quarter of Fiscal 2007” and “ Summary Results for the Third Quarter of Fiscal 2007” for the information regarding revised consolidated earnings estimates.

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.

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 most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) 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

(Please refer to Summary Results for the Third Quarter of Fiscal 2007 on page 2-1 for more information)

(1) Results of Operations

Consolidated Gross Profits for the third quarter of fiscal 2007 came to ¥1,291.3 billion, decreasing by ¥204.2 billion from the corresponding period of the previous fiscal year.

This is because Mizuho Securities(consolidated basis) recorded a significant decline of its profitability, suffering from the dislocation in the global financial markets which stemmed from the US subprime loan issues, and other factors, while the income of the banking subsidiaries is increasing with the substantial increase from Customer Groups, particularly that in net interest income from deposit and loan business, and strong market-related income.

General and Administrative Expenses amounted to ¥837.6 billion, increasing by ¥37.3 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 ¥107.7 billion, increasing by ¥164.7 billion from a net reversal in the corresponding period of the previous fiscal year.

After reflecting the above, Net Income amounted to ¥393.0 billion, decreasing by ¥186.9 billion from the corresponding period of the previous fiscal year.

(2) Financial Conditions

Total Assets as of December 31, 2007 amounted to ¥155,747.8 billion, increasing by ¥3,894.3 billion from the end of the corresponding period of the previous fiscal year.

Net Assets amounted to ¥6,126.1 billion, increasing by ¥183.6 billion from the end of the corresponding period of the previous fiscal year. This consists of ¥3,506.7 billion of Total Shareholders’ Equity, ¥1,040.2 billion of Total Valuation and Translation Adjustments, and ¥1,579.0 billion of Minority Interests.

As for asset accounts, Loans and Bills Discounted amounted to ¥67,927.4 billion, increasing by ¥2,470.9 billion, and Securities amounted to ¥34,070.3 billion, decreasing by ¥2,721.4 billion from the end of the corresponding period of the previous fiscal year. As for liability accounts, Deposits amounted to ¥74,986.2 billion, increasing by ¥2,827.8 billion from the end of the corresponding period of the previous fiscal year.

(3) Earnings Estimates

Considering increasing losses due to the dislocation in the global financial market stemming from the US subprime loan issues, and other factors, MHFG hereby revises its consolidated earnings estimates for fiscal 2007, which were announced on November 14, 2007, and estimates ordinary profits of ¥630.0 billion (a decrease of ¥200.0 billion from the November 2007 estimate) and net income of ¥480.0 billion (a decrease of ¥170.0 billion from the November 2007 estimate).

The above estimates constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Please see the “forward-looking statements” legend at the bottom of page 1-2 for a description of the factors that could affect our ability to meet these estimates.

 

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 third 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 December 31, 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 the first half of fiscal 2007.

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 assessment standard and the assessment method of Securities

Net Unrealized Gains/ Losses on Other Securities, net of Taxes have been receiving greater focus because of the considerable change in the market circumstances these days, and the values of securities deemed as market prices such as those obtained from brokers and financial information vendors have been more available. Hence, taking into account the convergence of global accounting standards, if the values deemed as market prices could be obtained by the reasonable estimate, Other Securities formerly measured at acquisition cost as securities without fair values are measured at such values.

This change decreases Securities by ¥25,086 million, Net Unrealized Gains/ Losses on Other Securities, net of Taxes by ¥14,813 million, and Deferred Tax Liabilities by ¥7,498 million, and increases Other Debt Purchased by ¥131 million and Deferred Tax Assets by ¥2,642 million on the consolidated balance sheet.

(2) The method of depreciation

In accordance with the revision of the Corporate Tax Law of 2007, depreciation of the tangible fixed assets acquired on or after April 1, 2007 is computed by the procedure stipulated in the revised law. As a result, Ordinary Profits and Income before Income Taxes and Minority Interests decreased by ¥1,021 million compared with the corresponding amounts under the previously applied method.

As for the tangible fixed assets acquired before April 1, 2007 and depreciated to their final depreciable limit, the salvage values of them are depreciated using the straight-line method in the following five fiscal years. As a result, Ordinary Profits and Income before Income Taxes and Minority Interests both decreased by ¥1,422 million compared with the corresponding amounts under the previously applied method.

(3) Reserve for Possible Losses on Sales of Loans

Reflecting the considerable changes in the market circumstances these days, Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amount deemed necessary based on a reasonable estimate of possible future losses.

 

1-4


Mizuho Financial Group, Inc.

 

(4) Reserve for Frequent Users Services

Reserve for Frequent Users Services is provided to meet the future use of points of Mizuho Mileage Club at the amount deemed necessary based on the reasonable estimate of the future usage of points. While the Reserve was formerly included within Other Liabilities because of its limited materiality, it has been stated independently from this period due to its increased materiality with the increase in the number of members.

(5) Reserve for Reimbursement of Deposits

In accordance with “Auditing Treatment relating to Reserve defined under the Special Tax Measurement Law, Reserves defined under the Special Law and Reserve for Directors and Corporate Auditor Retirement Benefits” (The Japanese Institute of Certified Public Accountants (“JICPA”) Auditing and Assurance Practice Committee report No.42, April 13, 2007) effective from the fiscal year 2007, MHFG has adopted the report from this period to recognize Reserve for Reimbursement of Deposits for the deposits derecognized from the liabilities at the estimated amount of future claims for withdrawal. As a result, Ordinary Profits and Income before Income Taxes and Minority Interests both decreased by ¥8,520 million compared with the corresponding amounts under the previously applied method.

(6) Reserves under Special Laws

Reserve for Contingent Liabilities from Futures Transactions and Reserve for Contingent Liabilities from Securities Transactions, which were recognized under Article 81 of the Financial Futures Transaction Law and under Article 51 of the Securities and Exchange Law respectively, are stated as Reserve for Contingent Liabilities from Financial Instruments and Exchange from this period because of the enforcement of the Financial Instruments and Exchange Law on September 30, 2007.

(7) Others

 Practical Solutions on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements

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.

Accounting Standards for Financial Instruments

The definitions of securities in “Accounting Standards for Financial Instruments” (ASBJ Statement No. 10) and in “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Laws and Regulations Committee Report No. 14) were partially revised on June 15, 2007 and on July 4, 2007 respectively, which is applicable from the fiscal year and the interim period ending on or after the enforcement date of the Financial Instruments and Exchange Law. MHFG has adopted the revised standards and guidelines commencing with this period.

ƒ Practical Guidelines for Tax Effects on Consolidated Financial Statements

As for the tax effects of sales of investments (such as subsidiaries’ stocks) within the Group, MHFG has adopted Paragraph 30-2 of “Practical Guidelines for Tax Effects on Consolidated Financial Statements” (JICPA Laws and Regulations Committee Report No. 6, March 29, 2007) from this period.

 

1-5


Mizuho Financial Group, Inc.

 

4. Subsequent events

Mizuho Capital Investment (JPY) 2 Limited, which is an overseas special purpose subsidiary and of which the voting rights are wholly owned by MHFG, issued Preferred Securities on January 11, 2008 as follows:

 

(1) Type of Security : Japanese Yen denominated Non-cumulative Perpetual Preferred Securities (not convertible into MHFG’s common stock)

 

(2) Aggregate Issued Amount : ¥274,500 million

 

(3) Dividend Rate : 3.28% per annum (Fixed dividend rate until June 2018)

Floating dividend rate after June 2018 (with Step-up)

 

(4) Payment Date : January 11, 2008

 

(5) The increase in Minority Interests resulting from the issuance of preferred securities amounted to ¥274,500 million. Proceeds from the issuance were ultimately provided to the banking subsidiaries as perpetual subordinated loans and will be incorporated into “Tier 1 Capital,” which is used in calculating the “Capital Adequacy Ratio.”

 

1-6


Mizuho Financial Group, Inc.

 

CONSOLIDATED BALANCE SHEETS

 

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

Assets

        

Cash and Due from Banks

   ¥ 3,712,949     ¥ 3,546,570     ¥ 166,378     ¥ 3,993,362  

Call Loans and Bills Purchased

     622,433       507,340       115,093       302,336  

Receivables under Resale Agreements

     10,654,953       9,594,951       1,060,001       9,430,397  

Guarantee Deposits Paid under Securities Borrowing Transactions

     7,384,670       7,642,600       (257,929 )     8,624,211  

Other Debt Purchased

     3,449,157       3,122,849       326,307       3,351,499  

Trading Assets

     13,724,443       11,156,490       2,567,953       10,414,573  

Money Held in Trust

     31,197       38,856       (7,659 )     49,558  

Securities

     34,070,326       36,791,747       (2,721,421 )     36,049,983  

Loans and Bills Discounted

     67,927,486       65,456,500       2,470,985       65,964,301  

Foreign Exchange Assets

     781,643       786,116       (4,473 )     894,797  

Other Assets

     7,669,124       6,671,570       997,553       5,739,458  

Tangible Fixed Assets

     788,325       795,809       (7,483 )     796,746  

Intangible Fixed Assets

     266,742       238,359       28,382       255,695  

Deferred Debenture Charges

     0       35       (34 )     22  

Deferred Tax Assets

     446,230       383,864       62,365       389,024  

Customers’ Liabilities for Acceptances and Guarantees

     5,043,294       5,902,989       (859,695 )     4,480,551  

Reserves for Possible Losses on Loans

     (825,027 )     (782,117 )     (42,909 )     (856,314 )

Reserve for Possible Losses on Investments

     (81 )     (1,035 )     953       (174 )
                                

Total Assets

   ¥ 155,747,871     ¥ 151,853,501     ¥ 3,894,369     ¥ 149,880,031  
                                

Liabilities

        

Deposits

   ¥ 74,986,266     ¥ 72,158,380     ¥ 2,827,886     ¥ 74,803,064  

Negotiable Certificates of Deposit

     11,098,709       10,735,776       362,932       8,805,239  

Debentures

     3,513,133       5,132,545       (1,619,411 )     4,723,806  

Call Money and Bills Sold

     6,910,603       6,442,078       468,524       6,924,136  

Payables under Repurchase Agreements

     13,625,574       14,604,142       (978,567 )     12,821,752  

Guarantee Deposits Received under Securities Lending Transactions

     6,958,310       5,955,272       1,003,038       5,946,781  

Commercial Paper

     50,000       30,000       20,000       30,000  

Trading Liabilities

     7,599,287       8,735,740       (1,136,452 )     8,297,301  

Borrowed Money

     5,896,505       4,493,530       1,402,974       4,563,438  

Foreign Exchange Liabilities

     291,395       229,266       62,129       339,817  

Short-term Bonds

     1,114,761       721,480       393,280       849,870  

Bonds and Notes

     3,783,360       3,083,879       699,480       3,237,525  

Due to Trust Accounts

     1,210,051       1,195,065       14,986       1,135,358  

Other Liabilities

     7,186,477       6,117,052       1,069,424       5,770,656  

Reserve for Bonus Payments

     22,083       16,558       5,524       40,972  

Reserve for Employee Retirement Benefits

     36,132       37,410       (1,278 )     37,641  

Reserve for Director and Corporate Auditor Retirement Benefits

     6,390       —         6,390       6,484  

Reserve for Possible Losses on Sales of Loans

     28,163       —         28,163       —    

Reserve for Contingencies

     84,292       29,767       54,524       13,046  

Reserve for Frequent Users Services

     7,403       —         7,403       —    

Reserve for Reimbursement of Deposits

     8,520       —         8,520       —    

Reserves under Special Laws

     2,680       2,587       92       2,680  

Deferred Tax Liabilities

     52,751       174,019       (121,267 )     218,224  

Deferred Tax Liabilities for Revaluation Reserve for Land

     105,584       113,434       (7,849 )     107,272  

Acceptances and Guarantees

     5,043,294       5,902,989       (859,695 )     4,480,551  
                                

Total Liabilities

     149,621,735       145,910,979       3,710,756       143,155,622  
                                

Net Assets

        

Common Stock and Preferred Stock

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

Capital Surplus

     411,093       411,110       (16 )     411,110  

Retained Earnings

     1,557,230       1,390,313       166,916       1,440,310  

Treasury Stock

     (2,506 )     (32,182 )     29,675       (32,330 )
                                

Total Shareholders’ Equity

     3,506,782       3,310,206       196,575       3,360,055  
                                

Net Unrealized Gains on Other Securities, net of Taxes

     970,923       1,261,478       (290,554 )     1,550,628  

Net Deferred Hedge Losses, net of Taxes

     (40,174 )     (123,747 )     83,573       (111,042 )

Revaluation Reserve for Land, net of Taxes

     148,181       159,609       (11,427 )     150,616  

Foreign Currency Translation Adjustments

     (38,647 )     (37,977 )     (669 )     (38,964 )
                                

Total Valuation and Translation Adjustments

     1,040,283       1,259,362       (219,079 )     1,551,237  
                                

Minority Interests

     1,579,069       1,372,952       206,116       1,813,115  
                                

Total Net Assets

     6,126,135       5,942,522       183,613       6,724,408  
                                

Total Liabilities and Net Assets

   ¥ 155,747,871     ¥ 151,853,501     ¥ 3,894,369     ¥ 149,880,031  
                                

 

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

 

1-7


Mizuho Financial Group, Inc.

 

CONSOLIDATED STATEMENTS OF INCOME

 

     Millions of yen
     For the nine months
ended

December 31, 2007
   For the nine months
ended

December 31, 2006
   Change     (Reference)
For the fiscal year
ended
March 31, 2007

Ordinary Income

   ¥ 3,428,422    ¥ 2,861,519    ¥ 566,903     ¥ 4,099,654

Interest Income

     2,267,035      1,822,624      444,410       2,562,642

Interest on Loans and Bills Discounted

     1,163,683      950,156      213,527       1,302,102

Interest and Dividends on Securities

     503,364      391,276      112,087       592,863

Fiduciary Income

     47,263      47,971      (707 )     66,958

Fee and Commission Income

     428,653      465,760      (37,107 )     658,899

Trading Income

     150,992      174,199      (23,206 )     265,802

Other Operating Income

     176,452      197,283      (20,830 )     270,945

Other Ordinary Income

     358,024      153,679      204,345       274,405
                            

Ordinary Expenses

     2,937,433      2,118,432      819,001       3,351,484

Interest Expenses

     1,488,030      1,037,068      450,961       1,472,378

Interest on Deposits

     468,306      339,840      128,466       477,042

Interest on Debentures

     18,597      26,437      (7,840 )     34,083

Fee and Commission Expenses

     83,960      87,987      (4,027 )     107,775

Trading Expenses

     112,396      3,685      108,710       4,258

Other Operating Expenses

     94,698      83,521      11,176       123,438

General and Administrative Expenses

     837,646      800,325      37,320       1,091,602

Other Ordinary Expenses

     320,702      105,843      214,859       552,032
                            

Ordinary Profits

     490,989      743,087      (252,098 )     748,170
                            

Extraordinary Gains

     36,774      121,070      (84,295 )     248,411
                            

Extraordinary Losses

     21,579      19,034      2,544       21,682
                            

Income before Income Taxes and Minority Interests

     506,184      845,122      (338,938 )     974,898

Income Taxes:

          

Current

     25,137      30,529      (5,391 )     43,267

Deferred

     61,287      178,185      (116,897 )     223,699
                            

Minority Interests in Net Income

     26,730      56,440      (29,709 )     86,965
                            

Net Income

   ¥ 393,028    ¥ 579,967    ¥ (186,938 )   ¥ 620,965
                            

 

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

 

1-8


Mizuho Financial Group, Inc.

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

For the nine months ended December 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, 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

    —       —         393,028       —         393,028       —         —         —         —         —         —         393,028  

Repurchase of Treasury Stock

 

 

—  

    —         —         (150,422 )     (150,422 )     —         —         —         —         —         —         (150,422 )

Disposition of Treasury Stock

    —       8       —         60       69       —         —         —         —         —         —         69  

Cancellation of Treasury Stock

    —       (8 )     (180,181 )     180,189       —         —         —         —         —         —         —         —    

Transfer from Revaluation Reserve for Land, net of Taxes

    —       —         2,434       —         2,434       —         —         —         —         —         —         2,434  

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 )

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

    —       —         —         (3 )     (3 )     —         —         —         —         —         —         (3 )

Net Changes in Items other than Shareholders’ Equity

    —       —         —         —         —         (579,705 )     70,868       (2,434 )     317       (510,953 )     (234,046 )     (745,000 )
                                                                                             

Total Changes during the period

    —       (16 )     114,052       29,824       143,859       (579,705 )     70,868       (2,434 )     317       (510,953 )     (234,046 )     (601,140 )
                                                                                             

Balance as of December 31, 2007

  ¥ 1,540,965   ¥ 411,093     ¥ 1,557,230     ¥ (2,506 )   ¥ 3,506,782     ¥ 970,923     ¥ (40,174 )   ¥ 148,181     ¥ (38,647 )   ¥ 1,040,283     ¥ 1,579,069     ¥ 6,126,135  
                                                                                             

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

For the nine months ended December 31, 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

    —       —         579,967       —         579,967       —         —         —         —         —         —       579,967  

Repurchase of Treasury Stock

    —       —         —         (604,169 )     (604,169 )     —         —         —         —         —         —       (604,169 )

Disposition of Treasury Stock

    —       27       —         37       64       —         —         —         —         —         —       64  

Cancellation of Treasury Stock

    —       (77 )     (618,686 )     618,763       —         —         —         —         —         —         —       —    

Transfer from Revaluation Reserve for Land, net of Taxes

    —       —         10,774       —         10,774       —         —         —         —         —         —       10,774  

Net Changes in Items other than Shareholders’ Equity

    —       —         —         —         —         (17,738 )     (123,747 )     (10,774 )     10,085       (142,175 )     13,829     (128,346 )
                                                                                           

Total Changes during the period

    —       (50 )     (107,830 )     14,632       (93,248 )     (17,738 )     (123,747 )     (10,774 )     10,085       (142,175 )     13,829     (221,594 )
                                                                                           

Balance as of December 31, 2006

  ¥ 1,540,965   ¥ 411,110     ¥ 1,390,313     ¥ (32,182 )   ¥ 3,310,206     ¥ 1,261,478     ¥ (123,747 )   ¥ 159,609     ¥ (37,977 )   ¥ 1,259,362     ¥ 1,372,952   ¥ 5,942,522  
                                                                                           

 

* 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.

 

1-9


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.

 

1-10


Mizuho Financial Group, Inc.

 

SUMMARY OF SEGMENT INFORMATION

<Segment Information by Type of Business>

For the nine months ended December 31, 2007

 

     Millions of yen
     Banking
Business
   Securities
Business
    Other    Total    Elimination     Consolidated
Results

Ordinary Income

               

(1) Ordinary Income from outside customers

   2,859,706    466,684     102,032    3,428,422    —       3,428,422

(2) Inter-segment Ordinary Income

   30,700    76,737     90,277    197,715    (197,715 )   —  
                               

Total

   2,890,406    543,421     192,310    3,626,138    (197,715 )   3,428,422
                               

Ordinary Expenses

   2,227,721    729,598     170,399    3,127,719    (190,285 )   2,937,433
                               

Ordinary Profits

   662,684    (186,176 )   21,910    498,419    (7,430 )   490,989
                               

For the nine months ended December 31, 2006

 

               
     Millions of yen
     Banking
Business
   Securities
Business
    Other    Total    Elimination     Consolidated
Results

Ordinary Income

               

(1) Ordinary Income from outside customers

   2,258,650    485,382     117,486    2,861,519    —       2,861,519

(2) Inter-segment Ordinary Income

   26,190    53,983     83,913    164,087    (164,087 )   —  
                               

Total

   2,284,841    539,366     201,399    3,025,607    (164,087 )   2,861,519
                               

Ordinary Expenses

   1,636,473    460,410     177,985    2,274,868    (156,436 )   2,118,432
                               

Ordinary Profits

   648,368    78,955     23,414    750,738    (7,651 )   743,087
                               

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

 

               
     Millions of yen
     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

 

1-11


 

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL INFORMATION

 

For the Third 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 THIRD QUARTER OF FISCAL 2007

             Pages
         2- 1

•FINANCIAL INFORMATION FOR THE THIRD QUARTER OF FISCAL 2007

   See above Notes    Pages

1. Income Analysis

   CON    NON    3- 1

2. Unrealized Gains/Losses on Securities

   CON    NON    3- 3

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

   NON       3- 5

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

   CON    NON    3- 6

5. Status of Deposits and Loans

   NON       3- 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.

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 most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”), 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 Third Quarter of Fiscal 2007

I. Summary of Income Analysis

 

Ø  

Consolidated Net Business Profits (Apr. 1-Dec. 31, 2007)

 

   

Consolidated Net Business Profits for the nine months ended December 31, 2007 significantly decreased to JPY 432.9 billion on a year-on-year basis.

 

   

Net Business Profits (JPY 599.6 billion) of 3 Banks for the same period increased by JPY 21.9 billion on a year-on-year basis, maintaining an upward trend. It was because income from Customer Groups, particularly net interest income from deposit and loan business, virtually increased, and market-related income was also strong.

 

   

Meanwhile, Mizuho Securities recorded a significant decline of its profitability (a decrease of JPY 254.6 billion in Consolidated Ordinary Profits on a year-on-year basis), as it suffered from the dislocation in the global financial market stemming from the US subprime loan issues.

 

Ø  

Consolidated Net Income (Apr. 1-Dec. 31, 2007)

 

   

Consolidated Net Income for the nine months ended December 31, 2007 decreased to JPY 393.0 billion by JPY 186.9 billion on a year-on-year basis. This was because, together with the aforementioned factors, Credit-related Costs in this period reverted from a net reversal in the corresponding period of the previous fiscal year to a net provision.

 

   

Credit-related Costs increased on a year-on-year basis as Mizuho Bank conducted a review of obligors, especially for those with lower credit ratings, amid uncertainty over the future of the economy.

(Reference) Credit Costs Ratio *1 (excluding the impact of the dislocation in the financial market): approx. 16bps (3 Banks)

 
  *1: Credit Costs Ratio = Annualized Credit-related Costs / Total claims under the Financial Reconstruction Law as of December 31, 2007

(Consolidated)

 

     3Q of FY2007
(Apr. 1 - Dec. 31, 2007)
          Change from
3Q of FY2006
(JPY Bn)          

Consolidated Gross Profits

   1,291.3    -204.2

Consolidated Net Business Profits *2

   432.9    -235.0

Credit-related Costs

   -107.7    -164.7

Net Gains related to Stocks *3

   282.1    170.8

Ordinary Profits

   490.9    -252.0

Net Income

   393.0    -186.9
 
  *2: Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments
  *3: Gains of JPY 19.8 billion on sale of stocks associated with credit and alternative investments, which we made as part of our efforts to diversify sources of market-related income, were recorded as Net Gains related to Stocks

(Reference) 3 Banks

 

     3Q of FY2007
(Apr. 1 - Dec. 31, 2007)
          Change from
3Q of FY2006
(JPY Bn)          

Gross Profits

   1,240.1    30.6

G&A Expenses (excluding Non-Recurring Losses)

   -640.5    -8.7

Net Business Profits

   599.6    21.9

Credit-related Costs

   -115.3    -163.0

Net Gains related to Stocks

   267.3    167.4

Ordinary Profits

   571.4    9.7

Net Income

   548.3    17.2

 

   

The total impact of the dislocation in the global financial market stemming from the US subprime loan issues on our consolidated P&L was a loss of approximately JPY 345.0 billion for the nine-month period from April to December 2007 (an increased loss of approximately JPY 170.0 billion from the November 2007 estimate).

[Breakdown of the P&L impact of JPY 345.0 billion (including overseas subsidiaries)]

3 Banks

 

  -  

Losses on sale of securitization products, etc.: approx. JPY -14.0 Bn

 

  -  

Credit-related Costs associated with SIVs: approx. JPY -23.0 Bn

 

  -  

Reserve for Contingencies associated with ABCP programs: approx. JPY -70.0 Bn

 

  -  

Reserve for Possible Losses on Sales of Loans: approx. JPY -28.0 Bn

 

  -  

Profits from hedging by CDS: approx. JPY 18.0 Bn

Mizuho Securities

 

  -  

Trading losses on securitization products: approx. JPY -178.0 Bn

(of which foreign currency denominated: approx. JPY -170.0 Bn)

 

  -  

Allowance associated with US financial guarantors (monolines): approx. JPY -49.0 Bn

(Consolidated)

 

     3Q of FY2007
(Apr. 1 - Dec. 31, 2007)
 
           Change from
3Q of FY2006
 

EPS *4 (JPY)

   31,154     -14,488  

ROE *5

   11.0 %   -5.3 %
 
  *4: Fully diluted EPS: Diluted Net Income for the 3Q 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]
  *5: Return on Equity = Annualized Net Income**/ [{(Total Shareholders’ Equity + Total Valuation and Translation Adjustments) <beginning>*** + (Total Shareholders’ Equity + Total Valuation and Translation Adjustments) <period-end>} /2 ]X 100
       [** Net Income for the 3Q of FY2007 (Apr.1 - Dec.31, 2007) X 365 / 275]
       [*** Figures for Apr.1, 2006 calculated using former “Total Shareholders’ Equity” data]

 

2-1


II. Steady Enhancement of the Group’s Comprehensive Profitability

 

Ø  

Net Interest Income

 

   

The average loan balance for the three-month period from October to December 2007 continued to increase mainly driven by expansion of overseas lending.

 

   

In addition, the domestic loan-and-deposit rate margin for the same period steadily improved by 0.02% compared with the second quarter of fiscal 2007.

 

   

Although Consolidated Net Interest Income for the nine-month period from April to December 2007 slightly decreased on a year-on-year basis, Net Interest Income of the 3 Banks increased backed by the aforementioned improvement in the domestic loan-and-deposit rate margin.

LOGO

 

  *1: Aggregate average balance of the 3 Banks for the period, excluding Trust Account and loans to Mizuho Financial Group, Inc.  

 

  *2: Aggregate figures of domestic operations of Mizuho Bank and Mizuho Corporate Bank after excluding loans to Mizuho Financial Group, Inc., Deposit Insurance Corporation of Japan and the Japanese Government  

 

Ø  

Non-Interest Income

 

   

Net Fee and Commission Income of the 3 Banks for the nine-month period from April to December 2007 decreased to JPY 251.8 billion by JPY 22.3 billion compared with the corresponding period of the previous fiscal year.

 

   

As for our business with individual customers, fee income related to the sales of investment trusts and individual annuities for the three-month period from October to December 2007 decreased on a year-on-year basis.

 

   

As for our business with corporate customers, fee and commission income from solution-related business, foreign exchange business, and others decreased, against the backdrop of intensified competition among banks and other factors.

LOGO

 

2-2


III. Financial Soundness

 

Ø  

We maintain our financial soundness at a high level.

 

     December 31, 2007  
            Change from
September 30, 2007
 
(JPY Bn)             

Net Deferred Tax Assets (DTAs) (Consolidated)

   393.4     82.1  

Disclosed Claims under the Financial Reconstruction Law (3 Banks)

   1,338.1     69.3  

NPL Ratio

   1.73 %   0.04 %

Unrealized Gains on Other Securities * (Consolidated)

   1,517.6     -346.5  

 

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

 

Ø  

The total balance of securitization products and its breakdown as of December 31, 2007 are shown on the table below.

Please refer to the attached, the summary of the impact of the dislocation in the global financial market on our foreign currency denominated exposures.

 

[The group in total]       
[balances on managerial accounting and fair value basis]    December 31, 2007  

Securitization Products

   JPY 5.1 Tn (JPY 0.6 Tn) *

Foreign currency denominated

   JPY 1.4 Tn (JPY 0.4 Tn)  

RMBS / CDO

   JPY 0.8 Tn (JPY 0.3 Tn)  

 

* Figures in brackets are the balances of all the trading accounts of Mizuho Securities, including its overseas subsidiaries

 

Ø  

We will announce our Capital Adequacy Ratio as of December 31, 2007 at a later date.

IV. Disciplined Capital Management

 

Ø  

Issuance of “Non-Dilutive” Preferred Securities

 

   

In January 2008, we issued JPY 274.5 billion of preferred debt securities through an overseas special purpose subsidiary so as to increase the group’s Tier 1 capital to secure the agility and to improve the flexibility of our future capital strategy.

[Reference] Breakdown of Earnings by Business Segment

 

(3 Banks)    3Q FY2007
(Apr.1 - Dec.31, 2007)
   Change from 3Q FY2006
after adjusting the effects
of the establishment of a
banking subsidiary in
China and other factors
           Change from
3Q FY2006
  
(JPY Bn)               

Gross Profits

   1,057.5    - 3.3    (    4.7)

G&A Expenses

   - 505.7    2.6    (  -1.8)

Customer Groups

   551.8    - 0.7    (    2.9)

Gross Profits

   182.4    33.7   

G&A Expenses

   - 134.6    - 11.2   

Trading & Others

   47.8    22.5   

Gross Profits

   1,240.1    30.6   

G&A Expenses

   - 640.5    - 8.7   

Net Business Profits

   599.6    21.9   

(Note) The figures on the above table are shown for reference purposes, based on the internal management data, in line with the

    management accounting rules for FY2007, and by each business segment

 

2-3


Earnings Estimates for Fiscal 2007

We hereby revise our consolidated earnings estimates for fiscal 2007, which we announced on November 14, 2007, as follows.

(Figures below are on a consolidated basis)

 

Ø  

We estimate Consolidated Net Business Profits for fiscal 2007 to be JPY 620.0 billion, a decrease of JPY 371.6 billion on a year-on-year basis (a decrease of JPY 220.0 billion from the November 2007 estimate).

This is because, as described earlier, the impact of the global financial market dislocation stemming from the US subprime loan issues during the third quarter (from October to December 2007) has become even larger (an increased loss of approximately JPY 170.0 billion) than the estimate as of November 2007. In addition, reflecting a further decline in prices of securitization products and other factors since the end of December 2007, we estimate additional losses (approximately JPY 50.0 billion) at Mizuho Securities in the fourth quarter.

Meanwhile, income from banking subsidiaries, including that from Customer Groups, is estimated to continue to show a steady performance.

LOGO

 

  * Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring  
       Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments  

 

Ø  

We estimate Credit-related Costs and Net Gains related to Stocks to be JPY -120.0 billion and JPY 310.0 billion respectively, taking into account the circumstances in the third quarter.

 

Ø  

Based on the above, we estimate Consolidated Net Income to be JPY 480.0 billion, a decrease of JPY 140.9 billion on a year-on-year basis (a decrease of JPY 170.0 billion from the November 2007 estimate).

 

Ø  

Meanwhile, we plan to increase cash dividends per share of common stock for the fiscal year ending March 31, 2008 to JPY 10,000 (a JPY 3,000 increase from that for the previous fiscal year), unchanged from the level estimated as of November 2007, and make dividend payments on preferred stock as prescribed.

 

 

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, including as a result of the impact of the dislocation in the global financial markets stemming from US subprime mortgage loan issues; 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 latest annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SECfs 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.

 

 

 

 

 

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

 

 

 

2-4


Attachment

[Reference] Summary of the impact of the dislocation in the global financial market on our foreign currency denominated exposures (the group in total)

 

     (Managerial accounting basis)

Breakdown of foreign currency denominated securitization products

(JPY Bn, round figures)

 

         Balances as of
Dec. 31, 2007
   Unrealized
Gains/Losses
   Price Declining
Ratios
 
         a    b    =b/(a-b)  
   

3 Banks (including overseas subsidiaries)

= Banking account

   (Fair Value)    (Dec. 31, 2007)    (Dec. 31, 2007)  

1

 

Foreign currency denominated securitization products *1

   1,090    -65    -6 %

2

 

ABSCDOs

   130    -14    -10 %

3

 

CDOs backed by RMBS

   -    -    -  

4

 

CDOs except above

   130    -14    -10 %

5

 

CDOs backed by CMBS

   -    -    -  

6

 

RMBS

   350    -29    -8 %

7

 

RMBS with underlying assets in US

   -    -    -  

8

 

RMBS except above

  (RMBS with underlying assets mainly in UK and Europe)

   350    -29    -8 %

9

 

ABS, CLOs and others

   610    -21    -3 %

10

 

CMBS

   90    -4    -4 %
         Balances as of
Dec. 31, 2007
   Realized
Gains/Losses
   Mark Down Ratios  
         a    b    =b/(a-b)  
   

Mizuho Securities (including overseas subsidiaries)

= Trading account

   (Fair Value)    (Total for 9 months)
Apr. 2007-Dec. 2007
   (Total for 9 months)
Apr. 2007-Dec. 2007
 

11

 

Foreign currency denominated securitization products *2

   470    -220    32 %

12

 

ABSCDOs*2

   280    -133    -33 %

13

 

CDOs backed by RMBS*2,3

   160    -127    -44 %

14

 

Hedged by CDS with a non-investment grade financial guarantor*2

   30    -44    -60 %

15

 

CDOs except above*2

   110    -6    -5 %

16

 

CDOs backed by CMBS

   0    -0    -3 %

17

 

Hedged by CDS with a non-investment grade financial guarantor*2

   80    -6    -7 %

18

 

RMBS

   180    -85    -33 %

19

 

RMBS backed by US subprime mortgage loans

   30    -28    -48 %

20

 

RMBS except above

  (RMBS backed by mid-prime loans, prime loans and others)

   150    -58    -28 %

21

 

ABS, CLOs and others

   20    -1    -7 %

22

 

CMBS

   10    -1    -8 %

 

*1: All the US subprime mortgage loan related securitization products held by the banking subsidiaries were sold during 3Q of FY2007
*2: CDO exposures hedged by CDS with a non-investment grade US financial guarantor (monoline), net of allowances, are listed in line 14 and 17 and shown as gross exposures
*3: The proportion of US subprime mortgage related assets to the total underlying assets was approximately 10%

 

2-5


Other relevant information (December 31, 2007)

 

Ø  

ABCP program related

 

 

 

With respect to a liquidity facility for an overseas ABCP program sponsored by Mizuho Corporate Bank, approximately JPY 70.0 billion of Reserve for Contingencies was recorded for the equivalent amount of entire valuation losses on approximately JPY 150.0 billion CDO*4, which was included as underlying asset in the program.

 
  *4: A part of underlying assets of the CDO included US subprime mortgage loan related exposures

 

Ø  

Transactions with US financial guarantors (monolines) related to securitization products

 

   

With respect to Mizuho Securities, the notional amount of credit default swaps (CDS) referred to securitization products, which were contracted with US financial guarantors (monolines) and provided Mizuho Securities with protections for such exposures, was approximately JPY 250.0 billion. Of which, approximately JPY 70.0 billion was referred to a CDO, which included US subprime related exposures in its underlying assets. The remaining amount (JPY 180.0 billion) was referred to CDOs and others mainly backed by claims against corporations.

     With respect to CDS protections purchased from a financial guarantor with non-investment grade ratings (the notional amount of approximately JPY 160.0 billion including the protection against the aforementioned US subprime related CDO of approximately JPY 70.0 billion), approximately JPY 49.0 billion*5 of allowance was recorded for the entire amount of NPV, or the estimated amount to be claimed at the settlement of the CDS.

 
  *5: Included in realized losses shown on the table of the previous page (line 14 and 17)

     Other than that CDS, we also purchased CDS protections (the notional amount of approximately JPY 90.0 billion with approximately JPY 6.0 billion NPV) from a financial guarantor with an investment grade rating (external rating of AAA (stable) as of January 25).

 

   

With respect to Mizuho Corporate Bank, the outstanding balance of securitization products guaranteed by monolines was approximately JPY 40.0 billion, all of which were ABS backed by auto lease receivables and others as underlying assets and purchased and held by overseas ABCP programs sponsored by the bank.

 

Ø  

Investments and loans associated with SIVs

 

   

Approximately JPY 12.0 billion of reserve was recorded for approximately JPY 13.0 billion of investments and loans associated with SIVs at the banking subsidiaries after a write-off. (The aggregate amount of Credit-related Costs was approximately JPY 23.0 billion, including approximately JPY 11.0 billion of the write-off in the first half of FY2007).

 

Ø  

Loans held for sale

 

   

Approximately JPY 28.0 billion of Reserve for Possible Losses on Sales of Loans was recorded for approximately JPY 990.0 billion of the outstanding balance of loans held for sale associated with overseas LBO and other transactions (Reserve ratio: 2.8%).

 

2-6


Mizuho Financial Group, Inc.

 

FINANCIAL INFORMATION FOR THE THIRD QUARTER OF FISCAL 2007

1. Income Analysis

CONSOLIDATED

 

          (Billions of yen)  
          Third Quarter of
Fiscal 2007
(A)
    Change
(A) - (B)
    Third Quarter of
Fiscal 2006
(B)
    (Reference)
Fiscal 2006
 

Consolidated Gross Profits

   1    1,291.3     (204.2 )   1,495.5     2,117.3  

Net Interest Income

   2    779.0     (6.5 )   785.5     1,090.2  

Fiduciary Income

   3    47.2     (0.7 )   47.9     66.9  

Credit Costs for Trust Accounts

   4    —       —       —       —    

Net Fee and Commission Income

   5    344.6     (33.0 )   377.7     551.1  

Net Trading Income

   6    38.5     (131.9 )   170.5     261.5  

Net Other Operating Income

   7    81.7     (32.0 )   113.7     147.5  

General and Administrative Expenses

   8    (837.6 )   (37.3 )   (800.3 )   (1,091.6 )

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

   9    (133.6 )   (89.2 )   (44.4 )   (142.6 )

Net Gains (Losses) related to Stocks

   10    282.1     170.8     111.2     (109.5 )

Equity in Income from Investments in Affiliates

   11    8.4     1.6     6.7     9.3  

Other

   12    (119.5 )   (93.8 )   (25.7 )   (34.7 )
                           

Ordinary Profits

   13    490.9     (252.0 )   743.0     748.1  

Net Extraordinary Gains (Losses)

   14    15.1     (86.8 )   102.0     226.7  

Reversal of Reserves for Possible Losses on Loans, etc.

   15    25.9     (75.5 )   101.4     102.4  

Reversal of Reserve for Possible Losses on Investments

   16    —       —       —       0.1  
                           

Income before Income Taxes and Minority Interests

   17    506.1     (338.9 )   845.1     974.8  

Income Taxes

   18    (86.4 )   122.2     (208.7 )   (266.9 )

Minority Interests in Net Income

   19    (26.7 )   29.7     (56.4 )   (86.9 )
                           

Net Income

   20    393.0     (186.9 )   579.9     620.9  
                           

Credit-related Costs

(including Credit Costs for Trust Accounts)

   21    (107.7 )   (164.7 )   56.9     (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    432.9     (235.0 )   667.9     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    139     6     133     133  

Number of affiliates under the equity method

   24    21     2     19     19  

 

3-1


Mizuho Financial Group, Inc.

 

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

     (Billions of yen)  
     Third Quarter of Fiscal 2007     Third
Quarter of
Fiscal 2006
(B)
     (Reference)
Fiscal 2006
 
          MHBK     MHCB     MHTB     Aggregated
Figures

(A)
    Change
(A) - (B)
      

Gross Profits

   1    686.9     430.6     122.5     1,240.1     30.6     1,209.4      1,700.2  

Net Interest Income

   2    449.0     203.2     39.2     691.5     2.9     688.6      952.5  

Fiduciary Income

   3        46.2     46.2     (1.0 )   47.2      66.1  

Credit Costs for Trust Accounts

   4        —       —       —       —        —    

Net Fee and Commission Income

   5    134.2     89.3     28.2     251.8     (22.3 )   274.2      400.8  

Net Trading Income

   6    42.5     127.2     0.7     170.5     87.7     82.7      129.4  

Net Other Operating Income

   7    61.1     10.7     7.9     79.9     (36.6 )   116.5      151.3  

General and Administrative Expenses (excluding Non-Recurring Losses)

   8    (394.2 )   (181.1 )   (65.0 )   (640.5 )   (8.7 )   (631.7 )    (855.7 )
                                              

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

   9    292.6     249.4     57.4     599.6     21.9     577.6      844.5  

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

   10    (24.4 )   —       —       (24.4 )   8.2     (32.6 )    (17.3 )
                                              

Net Business Profits

   11    268.2     249.4     57.4     575.1     30.1     545.0      827.2  

Net Gains (Losses) related to Bonds

   12    10.1     58.5     8.3     76.9     43.0     33.9      25.5  

Net Non-Recurring Gains (Losses)

   13    (90.4 )   88.9     (2.2 )   (3.7 )   (20.3 )   16.6      (254.7 )

Net Gains (Losses) related to Stocks

   14    66.2     199.8     1.2     267.3     167.4     99.9      (115.3 )

Expenses related to Portfolio Problems

   15    (128.1 )   (14.9 )   (0.6 )   (143.7 )   (80.6 )   (63.1 )    (111.1 )

Other

   16    (28.5 )   (95.8 )   (2.9 )   (127.3 )   (107.1 )   (20.1 )    (28.2 )
                                              

Ordinary Profits

   17    177.7     338.4     55.1     571.4     9.7     561.6      572.4  

Net Extraordinary Gains (Losses)

   18    14.9     18.6     22.6     56.3     (88.4 )   144.7      235.8  

Reversal of Reserves for Possible Losses on Loans, etc.

   19    12.9     18.4     21.4     52.7     (90.6 )   143.4      105.1  

Reversal of Reserve for Possible Losses on Investments

   20    —       —       —       —       —       —        0.1  
                                              

Income before Income Taxes

   21    192.7     357.1     77.8     627.7     (78.6 )   706.4      808.3  

Income Taxes

   22    (8.7 )   (60.6 )   (9.9 )   (79.4 )   95.9     (175.3 )    (210.1 )
                                              

Net Income

   23    184.0     296.4     67.8     548.3     17.2     531.0      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    (139.6 )   3.4     20.7     (115.3 )   (163.0 )   47.7      (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]

 

3-2


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 December 31, 2007   As of December 31, 2006   (Reference)
As of September 30, 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

  32,895.9   1,539.8     2,022.3   482.5   31,317.5   2,153.2     2,554.7   401.4   34,844.2   1,878.3     2,359.2   480.9

Japanese Stocks

  4,985.9   1,796.0     1,926.3   130.3   5,488.1   2,434.0     2,482.9   48.8   5,426.3   2,183.9     2,292.2   108.3

Japanese Bonds

  16,120.1   (86.1 )   15.1   101.2   16,362.4   (183.8 )   2.8   186.6   17,371.1   (141.3 )   5.0   146.3

Other

  11,789.7   (170.0 )   80.8   250.9   9,466.9   (96.9 )   68.9   165.9   12,046.6   (164.2 )   61.9   226.2

 

* In addition to “Securities” on the consolidated balance sheets, NCDs in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included.
* 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.
* Unrealized Gains/Losses include ¥22.1billion, ¥(8.3) billion and ¥14.0 billion, which were recognized in the statement of income for the Third quarter of Fiscal 2007 and 2006, and for the period ended September 30, 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 December 31, 2007    As of December 31, 2006    (Reference)
As of September 30, 2007
     Book Value    Unrealized Gains/Losses    Book Value    Unrealized Gains/Losses    Book Value    Unrealized Gains/Losses
             Gains    Losses              Gains    Losses              Gains    Losses

MHFG (Consolidated)

   892.0    0.9    1.2    0.3    1,339.9    (10.5 )    —      10.5    895.5    (3.2 )    —      3.2

Non-Consolidated

Aggregated Figures of the 3 Banks

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

 

    (Billions of yen)
    As of December 31, 2007   As of December 31, 2006   (Reference)
As of September 30, 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

  14,090.7   196.3     340.5   144.2   12,003.8   332.0     445.9   113.8   16,031.8   246.0     399.5   153.4

Japanese Stocks

  1,154.2   247.6     315.6   68.0   1,162.4   404.7     425.5   20.7   1,232.1   327.7     384.6   56.8

Japanese Bonds

  9,263.1   (40.6 )   6.3   46.9   10,072.6   (84.4 )   1.8   86.2   11,263.4   (64.3 )   2.8   67.2

Other

  3,673.2   (10.6 )   18.5   29.1   768.8   11.7     18.4   6.7   3,536.2   (17.3 )   12.0   29.3

MHCB

                       

Other Securities

  16,548.0   1,123.4     1,440.2   316.8   17,094.3   1,566.8     1,820.3   253.5   16,220.6   1,400.7     1,696.4   295.6

Japanese Stocks

  3,429.0   1,305.7     1,369.4   63.7   3,872.4   1,742.3     1,770.3   28.0   3,781.4   1,595.1     1,646.2   51.1

Japanese Bonds

  5,680.8   (26.7 )   7.7   34.4   5,086.7   (71.0 )   0.8   71.8   4,730.1   (51.0 )   2.0   53.0

Other

  7,438.1   (155.5 )   63.0   218.6   8,135.1   (104.5 )   49.1   153.6   7,708.9   (143.3 )   48.1   191.4

MHTB

                       

Other Securities

  1,669.5   139.6     164.8   25.1   1,642.5   175.8     210.1   34.2   1,996.2   147.4     180.2   32.7

Japanese Stocks

  348.5   158.3     161.4   3.1   400.2   207.1     208.1   1.0   367.0   176.6     178.8   2.1

Japanese Bonds

  911.3   (18.9 )   0.9   19.8   1,020.9   (28.1 )   0.0   28.1   1,182.5   (25.8 )   0.1   25.9

Other

  409.7   0.2     2.4   2.1   221.3   (3.1 )   1.9   5.0   446.6   (3.3 )   1.2   4.6

Total

                       

Other Securities

  32,308.3   1,459.4     1,945.6   486.2   30,740.7   2,074.7     2,476.4   401.6   34,248.6   1,794.3     2,276.2   481.9

Japanese Stocks

  4,931.7   1,711.6     1,846.5   134.9   5,435.1   2,354.2     2,404.1   49.8   5,380.6   2,099.5     2,209.7   110.2

Japanese Bonds

  15,855.4   (86.2 )   14.9   101.2   16,180.3   (183.5 )   2.8   186.3   17,176.1   (141.1 )   5.0   146.2

Other

  11,521.1   (165.9 )   84.0   249.9   9,125.3   (95.9 )   69.5   165.4   11,691.8   (164.0 )   61.4   225.4

 

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

* Unrealized Gains/Losses include ¥22.1 billion, ¥(8.3) billion and ¥14.0 billion, which were recognized as Income/Losses for the Third quarter of Fiscal 2007 and 2006, and for the period ended September 30, 2007, respectively, by applying the fair-value hedge method.

 

3-3


Mizuho Financial Group, Inc.

 

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

 

     (Billions of yen)
     As of December 31, 2007    As of December 31, 2006    (Reference)
As of September 30, 2007
     Book Value   

Unrealized Gains/Losses

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

MHBK

   892.0    0.9    1.2    0.3    1,339.9    (10.5 )   —      10.5    895.5    (3.2 )    —      3.2

MHCB

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

MHTB

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

Total

   892.0    0.9    1.2    0.3    1,339.9    (10.5 )   —      10.5    895.5    (3.2 )    —      3.2
                                                              

(3) Investments in Subsidiaries and Affiliates (which have readily determinable fair value)

 

     (Billions of yen)
     As of December 31, 2007    As of December 31, 2006    (Reference)
As of September 30, 2007
     Book Value   

Unrealized Gains/Losses

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

MHBK

   88.2    26.8    26.8    —      67.0    55.4    55.4    —      67.0    32.4    32.4    —  

MHCB

   29.9    29.7    29.7    —      11.6    26.6    26.6    —      11.6    30.3    30.3    —  

MHTB

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

Total

   118.2    56.6    56.6    —      78.7    82.0    82.0    —      78.7    62.8    62.8    —  
                                                           

(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 December 31, 2007     As of December 31, 2006      (Reference)
As of September 30, 2007
 
     Unrealized Gains/Losses     Unrealized Gains/Losses      Unrealized Gains/Losses  
           Change from
December 31, 2006
    (Reference)
Change from
September 30, 2007
              

Other Securities

   1,517.6     (643.9 )   (346.5 )   2,161.6      1,864.2  

Japanese Stocks

   1,796.0     (638.0 )   (387.8 )   2,434.0      2,183.9  

Japanese Bonds

   (118.9 )   68.9     51.0     (187.8 )    (169.9 )

Other

   (159.4 )   (74.9 )   (9.7 )   (84.5 )    (149.7 )

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

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

Other Securities

   1,437.2     (645.9 )   (342.9 )   2,083.1      1,780.2  

Japanese Stocks

   1,711.6     (642.6 )   (387.9 )   2,354.2      2,099.5  

Japanese Bonds

   (119.0 )   68.5     50.8     (187.5 )    (169.8 )

Other

   (155.3 )   (71.8 )   (5.8 )   (83.4 )    (149.4 )

 

3-4


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 December 31, 2007     As of December 31, 2006      (Reference)
As of September 30, 2007
 
     Deferred Hedge Gains/Losses     Deferred Hedge Gains/Losses      Deferred Hedge Gains/Losses  
     Gains    Losses          Gains    Losses           Gains    Losses       

MHBK

   83.6    142.8    (59.2 )   104.2    216.7    (112.4 )    82.0    169.7    (87.6 )

MHCB

   498.4    518.0    (19.5 )   396.8    517.8    (120.9 )    431.0    511.6    (80.6 )

MHTB

   49.8    46.2    3.5     52.6    52.3    0.3      48.3    47.8    0.5  
                                                 

Total

   631.8    707.1    (75.2 )   553.7    786.8    (233.1 )    561.4    729.1    (167.7 )
                                                 

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

 

3-5


Mizuho Financial Group, Inc.

 

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

CONSOLIDATED

 

     (Billions of yen)
     As of
December 31,
2007 (A)
   Change
(A) - (B)
    (Reference)
Change
(A) - (C)
    As of
December 31,
2006 (B)
   (Reference)
As of
September 30,
2007 (C)

Consolidated

            

Claims against Bankrupt and Substantially Bankrupt Obligors

   155.2    3.6     8.6     151.5    146.5

Claims with Collection Risk

   582.1    201.4     (18.7 )   380.7    600.8

Claims for Special Attention

   597.3    37.8     76.2     559.4    521.0
                          

Total

   1,334.6    242.9     66.2     1,091.7    1,268.4
                          

Trust Account

            

Claims against Bankrupt and Substantially Bankrupt Obligors

   0.0    0.0     0.0     —      —  

Claims with Collection Risk

   6.4    (1.2 )   (0.8 )   7.7    7.3

Claims for Special Attention

   —      (0.1 )   —       0.1    —  
                          

Total

   6.4    (1.3 )   (0.8 )   7.8    7.3
                          
Total (Consolidated + Trust Account)             

Claims against Bankrupt and Substantially Bankrupt Obligors

   155.2    3.6     8.6     151.5    146.5

Claims with Collection Risk

   588.6    200.1     (19.5 )   388.4    608.2

Claims for Special Attention

   597.3    37.7     76.2     559.5    521.0
                          

Total

   1,341.1    241.6     65.3     1,099.5    1,275.7
                          

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

 

3-6


Mizuho Financial Group, Inc.

 

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

     (Billions of yen)  
     As of
December 31,
2007 (A)
    Change
(A) - (B)
    (Reference)
Change
(A) - (C)
    As of
December 31,
2006 (B)
    (Reference)
As of
September 30,
2007 (C)
 
MHBK           

Claims against Bankrupt and Substantially Bankrupt Obligors

   121.9     11.8     8.1     110.1     113.8  

Claims with Collection Risk

   343.0     80.4     (20.3 )   262.6     363.3  

Claims for Special Attention

   308.4     41.3     75.9     267.0     232.4  

Sub-total [1]

   773.4     133.6     63.7     639.8     709.6  

NPL ratio [1]/[2]

   2.08 %   0.36 %   0.14 %   1.71 %   1.94 %

Normal Claims

   36,311.5     (247.4 )   466.0     36,558.9     35,845.4  
                              

Total [2]

   37,084.9     (113.7 )   529.8     37,198.7     36,555.1  
                              
MHCB           

Claims against Bankrupt and Substantially Bankrupt Obligors

   17.5     (1.6 )   0.2     19.2     17.2  

Claims with Collection Risk

   225.4     149.0     6.1     76.4     219.3  

Claims for Special Attention

   237.9     11.2     3.1     226.6     234.7  

Sub-total [3]

   480.9     158.6     9.5     322.3     471.3  

NPL ratio [3]/[4]

   1.31 %   0.36 %   (0.03 )%   0.95 %   1.35 %

Normal Claims

   35,969.1     2,430.2     1,700.4     33,538.8     34,268.7  
                              

Total [4]

   36,450.0     2,588.9     1,709.9     33,861.1     34,740.0  
                              
MHTB           
Banking Account           

Claims against Bankrupt and Substantially Bankrupt Obligors

   29.2     25.0     (0.6 )   4.2     29.9  

Claims with Collection Risk

   7.5     (26.9 )   (1.3 )   34.4     8.8  

Claims for Special Attention

   40.4     (23.8 )   (1.1 )   64.3     41.5  

Sub-total [5]

   77.2     (25.7 )   (3.1 )   103.0     80.3  

NPL ratio [5]/[6]

   2.16 %   (0.59 )%   (0.06 )%   2.75 %   2.22 %

Normal Claims

   3,498.2     (133.5 )   (39.4 )   3,631.8     3,537.7  
                              

Total [6]

   3,575.4     (159.3 )   (42.6 )   3,734.8     3,618.1  
                              
Trust Account           

Claims against Bankrupt and Substantially Bankrupt Obligors

   0.0     0.0     0.0     —       —    

Claims with Collection Risk

   6.4     (1.2 )   (0.8 )   7.7     7.3  

Claims for Special Attention

   —       (0.1 )   —       0.1     —    

Sub-total [7]

   6.4     (1.3 )   (0.8 )   7.8     7.3  

NPL ratio [7]/[8]

   14.94 %   1.41 %   (0.93 )%   13.52 %   15.87 %

Normal Claims

   36.8     (13.2 )   (1.9 )   50.0     38.7  
                              

Total [8]

   43.2     (14.5 )   (2.7 )   57.8     46.0  
                              
Total (Banking Account + Trust Account)           

Claims against Bankrupt and Substantially Bankrupt Obligors

   168.8     35.1     7.7     133.6     161.0  

Claims with Collection Risk

   582.5     201.2     (16.4 )   381.2     598.9  

Claims for Special Attention

   586.7     28.6     77.9     558.0     508.7  

Sub-total [9]

   1,338.1     265.1     69.3     1,072.9     1,268.7  

NPL ratio [9]/[10]

   1.73 %   0.30 %   0.04 %   1.43 %   1.69 %

Normal Claims

   75,815.6     2,036.0     2,125.0     73,779.6     73,690.6  
                              

Total [10]

   77,153.8     2,301.2     2,194.3     74,852.6     74,959.4  
                              

 

Note: 1.    Trust Account denotes trust accounts with contracts indemnifying the principal amounts.
          2.    NPL : Non-Performing Loans

 

3-7


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
December 31,
2007 (A)
   Change
(A)-(B)
   As of
December 31,
2006 (B)
   (Reference)
As of
September 30,
2007

MHBK

   53,032.9    1,774.1    51,258.8    52,012.0

MHCB

   19,553.0    937.8    18,615.2    19,179.8

MHTB

   2,908.4    61.2    2,847.2    2,985.2
                   

Total

   75,494.5    2,773.2    72,721.2    74,177.1
                   

(1)-2 Domestic Deposits

Aggregated Figures of the 3 Banks

 

     (Billions of yen)
      As of
December 31,
2007 (A)
   Change
(A)-(B)
    As of
December 31,
2006 (B)
   (Reference)
As of
September 30,
2007

MHBK

   52,945.1    1,652.4     51,292.7    51,961.0

Individual deposits

   32,264.8    1,486.9     30,777.8    31,279.7

MHCB

   9,232.5    (277.3 )   9,509.9    9,508.2

Individual deposits

   6.8    (2.9 )   9.8    5.3

MHTB

   2,907.3    72.8     2,834.4    2,975.7

Individual deposits

   1,831.8    (48.2 )   1,880.0    1,832.8
                    

Total

   65,085.1    1,448.0     63,637.1    64,445.0

Individual deposits

   34,103.5    1,435.7     32,667.8    33,118.0
                    

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
December 31,
2007 (A)
   Change
(A)-(B)
    As of
December 31,
2006 (B)