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Mizuho Financial Group 6-K 2011

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 November 2011

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-1, Marunouchi 2-chome

Chiyoda-ku, Tokyo 100-8333

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: November 14, 2011
Mizuho Financial Group, Inc.
By:  

/s/ Takeo Nakano

Name:   Takeo Nakano
Title:   Managing Director / CFO


For Immediate Release:   November 14, 2011

 

  

Financial Statements for the Second Quarter of Fiscal 2011

(Six months ended September 30, 2011)

<Under Japanese GAAP>

   LOGO

 

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

Stock Code Number (Japan):

  8411         

Stock Exchanges (Japan):

  Tokyo Stock Exchange (First Section), Osaka Securities Exchange (First Section)
URL:   http://www.mizuho-fg.co.jp/english/

Representative:

  Yasuhiro Sato              President & CEO

For Inquiry:

  Hisaaki Hirama              General Manager of Accounting

Phone: +81-3-5224-2030

        

Filing of Shihanki Hokokusho (scheduled):

   November 28, 2011    Trading Accounts: Established

Commencement of Dividend Payment (scheduled):

   December 7, 2011      

Supplementary Materials on Quarterly Results: Attached

  

IR Conference on Quarterly Results: Scheduled

  

Amounts less than one million yen are rounded down.

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2011

(for the six months ended September 30, 2011)

(1) Consolidated Results of Operations

 

(%: Changes from the previous first half)  
     Ordinary Income     Ordinary Profits     Net Income  
     ¥ million      %     ¥ million      %     ¥ million      %  

1H F2011

     1,344,326         (7.2     256,467         (39.4     254,665         (25.4

1H F2010

     1,449,871         (2.3     423,829         308.3        341,759         289.2   

Note: Comprehensive Income: 1H F2011: ¥177,529 million, (39.6)%; 1H F2010: ¥294,024 million, -%

 

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

1H F2011

     11.28         10.76   

1H F2010

     19.15         17.50   

(2) Consolidated Financial Conditions

 

     Total Assets      Total Net Assets      Own Capital Ratio      Consolidated Capital Adequacy Ratio
(BIS Standard)
 
     ¥ million      ¥ million      %      %  

1H F2011

     161,286,878         6,518,929         2.8         14.92   

Fiscal 2010

     160,812,006         6,623,999         2.6         15.30   

 

Reference:

 

Own Capital:

As of September 30, 2011: ¥4,568,035 million; As of March 31, 2011: ¥4,329,116 million

Notes:

 

1.

  Own Capital Ratio was calculated as follows: (Total Net Assets - Stock Acquisition Rights - Minority Interests) / Total Assets × 100
 

2.

  Consolidated Capital Adequacy Ratio (BIS Standard) is based on the “Standards for Bank Holding Company to Consider the Adequacy of Its Capital Based on Assets and Others Held by It and Its Subsidiaries Pursuant to Article 52-25 of the Banking Law” (Financial Services Agency Ordinance Announcement No. 20, March 27, 2006).
 

3.

  Consolidated Capital Adequacy Ratio (BIS) as of September 30, 2011 is a preliminary figure.

2. Cash Dividends for Shareholders of Common Stock

 

     Annual Cash Dividends per Share  
      First
Quarter-end
     Second
Quarter-end
     Third
Quarter-end
     Fiscal
Year-end
     Total  
     ¥      ¥      ¥      ¥      ¥  

Fiscal 2010

     —           0.00         —           6.00         6.00   

Fiscal 2011

     —           3.00            

Fiscal 2011 (estimate)

           —           3.00         6.00   

 

Notes:   1.    Revision of the latest announced estimates for cash dividends for shareholders of common stock: No
  2.    Please refer to the following “Cash Dividends for Shareholders of Classified Stock” for cash dividends for shareholders of classified stock (unlisted), the rights of which are different from those of common stock.

3. Consolidated Earnings Estimates for Fiscal 2011 (for the fiscal year ending March 31, 2012)

 

               (%: Changes from the previous fiscal year)  
               Net Income      Net Income
per Share of
Common Stock
 
               ¥ million                      %      ¥  

Fiscal 2011

           460,000         11.3         19.55   

 

Notes:   1.    Revision of the latest announced earnings estimates for fiscal 2011: No
  2.    The number of shares of common stock used in the above calculation is based on the following:
   

The average of “the average number of shares during the 1H Fiscal 2011” and “the number of shares as of September 30, 2011 (which is expected to be the average number of shares during the 2H of fiscal 2011)” is used.

   

It does not take into account any increase in the number of shares of common stock due to requests for acquisition (conversion) of the Eleventh Series Class XI Preferred Stock in the 2H of fiscal 2011.

4. Others

(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries accompanying changes in the scope of consolidation): No

(2) Changes in Accounting Policies and Accounting Estimates / Restatements

 Changes in accounting policies due to revisions of accounting standards, etc.: No

 Changes in accounting policies other than  above: No

ƒ Changes in accounting estimates: No

 Restatements: No

(3) Issued Shares of Common Stock

 

 Period-end issued shares (including treasury stock):    

 

As of September 30, 2011

As of March 31, 2011

  

  

   

 

24,013,550,567 shares

21,782,185,320 shares

  

  

Period-end treasury stock:    

 

As of September 30, 2011

As of March 31, 2011

  

  

   

 

85,754,990 shares

5,656,647 shares

  

  

ƒ Average number of outstanding shares:    

 

1st Half of Fiscal 2011

1st Half of Fiscal 2010

  

  

   

 

22,181,330,433 shares

17,846,169,840 shares

  

  


Non-consolidated Financial Statements

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2011

(for the six months ended September 30, 2011)

 

(1) Non-Consolidated Results of Operations            (%: Changes from the previous first half)  
     Operating Income     Operating Profits     Ordinary Profits     Net Income  
     ¥ million      %     ¥ million      %     ¥ million      %     ¥ million      %  

1H F2011

     22,910         (29.7     12,502         (45.6     9,145         (45.4     9,050         (45.4

1H F2010

     32,606         66.3        22,991         130.6        16,770         450.1        16,585         436.1   
     Net Income
per Share of
Common Stock
                                               
     ¥                                                

1H F2011

     0.21                     

1H F2010

     0.92                     

(2) Non-Consolidated Financial Conditions

 

     Total Assets      Total Net Assets      Own Capital Ratio  
     ¥ million      ¥ million      %  

1H F2011

     6,152,970         4,754,636         77.2   

Fiscal 2010

     6,035,158         4,652,883         77.0   

 

Reference:

 

1.   Own Capital:

      As of September 30, 2011: ¥4,753,617 million; As of March 31, 2011: ¥4,651,097 million

 

2.   Maximum amount available for dividends as of September 30, 2011: ¥1,293,907 million; As of March 31, 2011:

      ¥1,434,007 million

 

(Note) “Maximum amount available for dividends” is calculated pursuant to Article 461, Paragraph 2 of the Company Law.

(Presentation of Implementation Status of Interim Review Procedure)

The semi-annual audit procedure of consolidated and non-consolidated interim financial statements based on the Financial Instruments and Exchange Law has not been completed at the time of the disclosure of these Financial Statements.

 

 

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; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Management Policy and other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

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.

MHFG is a specified business company under “Cabinet Office Ordinance on Disclosure of Corporate Information, etc.” Article 17-15 clause 2 and prepares the interim consolidated and interim non-consolidated financial statements in the second quarter.

 

 


Cash Dividends for Shareholders of Classified Stock

Breakdown of cash dividends per share related to classified stock, the rights of which are different from those of common stock is as follows:

 

     Annual Cash Dividends per Share  

(Record Date)

   First
Quarter-end
     Second
Quarter-end
     Third
Quarter-end
     Fiscal
Year-end
          Total  
     ¥      ¥      ¥      ¥           ¥  

Eleventh Series Class XI Preferred Stock

                 

Fiscal 2010

     —           0.00         —           20.00            20.00   

Fiscal 2011

     —           10.00               

Fiscal 2011 (estimate)

           —           10.00            20.00   

Thirteenth Series Class XIII Preferred Stock

                 

Fiscal 2010

     —           0.00         —           30.00            30.00   

Fiscal 2011

     —           15.00               

Fiscal 2011 (estimate)

           —           15.00            30.00   


Mizuho Financial Group, Inc.

 

mContents of Attachment

 

1.   Qualitative Information related to Financial Results      p.1-2   
  (1) Qualitative Information related to Consolidated Results of Operations      p.1-2   
  (2) Qualitative Information related to Consolidated Financial Conditions      p.1-2   
  (3) Qualitative Information related to Consolidated Earnings Estimates      p.1-2   
2.   Interim Consolidated Financial Statements      p.1-3   
  (1) Consolidated Balance Sheets      p.1-3   
  (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income      p.1-5   
  (3) Consolidated Statements of Changes in Net Assets      p.1-7   
  (4) Note for Assumption of Going Concern      p.1-10   
  (5) Additional Information      p.1-10   
3.   Interim Non-Consolidated Financial Statements      p.1-11   
  (1) Non-Consolidated Balance Sheets      p.1-11   
  (2) Non-Consolidated Statements of Income      p.1-12   
  (3) Non-Consolidated Statements of Changes in Net Assets      p.1-13   
  (4) Note for Assumption of Going Concern      p.1-14   

[Note to XBRL]

Please note that the names of the English accounts contained in XBRL data, which are available through EDINET and TDNet, may be different from those of the English accounts in our financial statements.

A MHFG IR conference for institutional investors and analysts is scheduled for November 21, 2011 (Monday). It will be broadcasted live on the Internet and its presentation materials will also be available for use by individual investors in the IR Information section of the Mizuho Financial Group HP immediately after the conference.

 

1-1


Mizuho Financial Group, Inc.

 

1. Qualitative Information related to Financial Results

(Please refer to “Summary Results for the Second Quarter (First Half) of Fiscal 2011” on page 2-1 for more information.)

(1) Qualitative Information related to Consolidated Results of Operations

Reviewing the economic environment during the second quarter of fiscal 2011, while the United States is experiencing an extremely weak recovery, in Europe there is uncertainty in the financial system against the backdrop of the fiscal problems experienced by certain countries, which is gradually impacting the real economy. Thus overall, the recovery in the global economy is weakening.

In the United States, the recovery in the economy is extremely weak as the housing market and employment conditions continue to be sluggish. Regarding the future of the U.S. economy, the risk remains of a slackening in the economy with a further decline in housing prices and rising unemployment and others. With the fiscal constraints imposed by the debt ceiling, there is uncertainty going forward, including the ability to implement further economic stimulus measures. In Europe, the problem of sovereign risk is becoming apparent against the backdrop of the fiscal problems experienced by certain counties, impacting the real economy, as well as casting uncertainty over the financial system. The future of the European economy holds little prospect of a drastic speedy fix for the Euro-area’s debt problems, and the situation makes it difficult to say exactly what the effects will be on the global economy. In Asia, the increase in demand in the Chinese market has had an impact, inducing an increase in exports and production activity in neighboring economies. While the pace of growth is slowing somewhat, the region continues to maintain strong economic growth, although signs of a decline in growth are beginning to appear as the slowdown in the U.S. and the European economies takes effect.

In Japan, despite the continuing recovery from the sharp decline in the economy resulting from the impact of the Great Eastern Japan Earthquake, the weakness of the recovery in the overseas economies is leading to a slow recovery in Japan. As for the future direction of the economy, while there are positive boosting factors such as the growing demand for restoring damaged capital assets, there are also several causes for concern, such as a slowing in economies overseas, the constraints of electricity shortages, fluctuations in foreign exchange and stock prices and prolonged deflation. So the risk remains that these factors may hold back economic growth.

Under the above economic environment, Net Income for the second quarter (first half) of the fiscal year ending March 31, 2012 amounted to ¥254.6 billion, decreasing by ¥87.0 billion from the corresponding period of the previous fiscal year.

(2) Qualitative Information related to Consolidated Financial Conditions

Consolidated total assets as of September 30, 2011 amounted to ¥161,286.8 billion, increasing by ¥474.8 billion from the end of the previous fiscal year.

Net Assets amounted to ¥6,518.9 billion, decreasing by ¥105.0 billion from the end of the previous fiscal year. Shareholders’ Equity amounted to ¥4,601.3 billion, Accumulated Other Comprehensive Income amounted to ¥(33.3) billion and Minority Interests amounted to ¥1,949.8 billion.

In Assets, the balance of Loans and Bills Discounted amounted to ¥61,731.6 billion, decreasing by ¥1,046.1 billion from the end of the previous fiscal year while Securities were ¥47,554.4 billion, increasing by ¥2,772.4 billion from the end of the previous fiscal year. In Liabilities, Deposits amounted to ¥77,332.8 billion, decreasing by ¥1,901.0 billion from the end of the previous fiscal year.

The Consolidated Capital Adequacy Ratio (Basel II BIS Standard) was 14.92% (preliminary).

 

     March 31, 2010   March 31, 2011   September 30, 2011

Basel II

   13.46%   15.30%   14.92%

(3) Qualitative Information related to Consolidated Earnings Estimates

Based on the financial results for the second quarter of fiscal 2011, MHFG estimates Ordinary Profits of ¥590.0 billion (a decrease of ¥70.0 billion from the estimate which was announced on May 13, 2011) and Net Income of ¥460.0 billion (no change from the same estimate above) for fiscal 2011.

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 beginning of this immediate release for a description of the factors that could affect our ability to meet these estimates.

 

1-2


Mizuho Financial Group, Inc.

 

2. INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED BALANCE SHEETS

 

     Millions of yen  
     As of
March 31, 2011
    As of
September 30, 2011
 

Assets

    

Cash and Due from Banks

   ¥ 9,950,913      ¥ 6,163,627   

Call Loans and Bills Purchased

     375,716        270,608   

Receivables under Resale Agreements

     7,467,309        7,512,195   

Guarantee Deposits Paid under Securities Borrowing Transactions

     6,541,512        6,118,870   

Other Debt Purchased

     1,667,808        1,564,197   

Trading Assets

          13,500,182        15,504,498   

Money Held in Trust

     122,267        75,028   

Securities

     44,782,067        47,554,498   

Loans and Bills Discounted

     62,777,757        61,731,606   

Foreign Exchange Assets

     977,465        1,022,902   

Derivatives other than for Trading Assets

     5,102,760        5,685,544   

Other Assets

     2,754,017        3,261,898   

Tangible Fixed Assets

     947,986        931,819   

Intangible Fixed Assets

     442,922        491,172   

Deferred Tax Assets

     488,769        450,982   

Customers' Liabilities for Acceptances and Guarantees

     3,673,339        3,667,333   

Reserves for Possible Losses on Loans

     (760,762     (719,893

Reserve for Possible Losses on Investments

     (25     (11
  

 

 

   

 

 

 

Total Assets

   ¥ 160,812,006      ¥ 161,286,878   
  

 

 

   

 

 

 

 

1-3


Mizuho Financial Group, Inc.

 

     Millions of yen  
     As of
March 31, 2011
    As of
September 30, 2011
 

Liabilities

    

Deposits

   ¥ 79,233,922      ¥ 77,332,871   

Negotiable Certificates of Deposit

     9,650,236        11,160,993   

Debentures

     740,932        25,932   

Call Money and Bills Sold

     5,095,412        5,426,361   

Payables under Repurchase Agreements

     11,656,119        11,505,439   

Guarantee Deposits Received under Securities Lending Transactions

     5,488,585        8,698,140   

Commercial Paper

     226,167        348,164   

Trading Liabilities

     7,652,811        9,155,347   

Borrowed Money

     15,969,385        12,299,213   

Foreign Exchange Liabilities

     167,670        170,441   

Short-term Bonds

     585,497        570,796   

Bonds and Notes

     5,110,947        4,908,393   

Due to Trust Accounts

     1,045,599        997,173   

Derivatives other than for Trading Liabilities

     4,599,579        4,942,866   

Other Liabilities

     3,053,136        3,333,057   

Reserve for Bonus Payments

     39,336        29,722   

Reserve for Employee Retirement Benefits

     35,615        36,312   

Reserve for Director and Corporate Auditor Retirement Benefits

     2,239        1,993   

Reserve for Possible Losses on Sales of Loans

     420        686   

Reserve for Contingencies

     15,081        14,813   

Reserve for Reimbursement of Deposits

     15,229        16,089   

Reserve for Reimbursement of Debentures

     13,344        15,245   

Reserves under Special Laws

     1,382        1,212   

Deferred Tax Liabilities

     17,599        12,719   

Deferred Tax Liabilities for Revaluation Reserve for Land

     98,415        96,625   

Acceptances and Guarantees

     3,673,339        3,667,333   
  

 

 

   

 

 

 

Total Liabilities

         154,188,007        154,767,949   
  

 

 

   

 

 

 

Net Assets

    

Common Stock and Preferred Stock

     2,181,375        2,254,972   

Capital Surplus

     937,680        1,109,779   

Retained Earnings

     1,132,351        1,249,339   

Treasury Stock

     (3,196     (12,712
  

 

 

   

 

 

 

Total Shareholders’ Equity

     4,248,209        4,601,378   
  

 

 

   

 

 

 

Net Unrealized Gains (Losses) on Other Securities

     (21,648     (152,381

Deferred Gains or Losses on Hedges

     68,769        87,230   

Revaluation Reserve for Land

     137,707        135,088   

Foreign Currency Translation Adjustments

     (103,921     (103,281
  

 

 

   

 

 

 

Total Accumulated Other Comprehensive Income

     80,906        (33,343
  

 

 

   

 

 

 

Stock Acquisition Rights

     2,754        1,019   

Minority Interests

     2,292,128        1,949,875   
  

 

 

   

 

 

 

Total Net Assets

     6,623,999        6,518,929   
  

 

 

   

 

 

 

Total Liabilities and Net Assets

   ¥ 160,812,006      ¥ 161,286,878   
  

 

 

   

 

 

 

 

1-4


Mizuho Financial Group, Inc.

 

(2) CONSOLIDATED STATEMENTS OF INCOME AND

      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

[CONSOLIDATED STATEMENTS OF INCOME]

 

     Millions of yen  
     For the six months ended
September 30, 2010
     For the six months ended
September 30, 2011
 

Ordinary Income

   ¥ 1,449,871       ¥ 1,344,326   

Interest Income

     733,453         693,324   

Interest on Loans and Bills Discounted

     454,147         435,294   

Interest and Dividends on Securities

     179,472         167,052   

Fiduciary Income

     24,058         24,507   

Fee and Commission Income

     271,146         267,300   

Trading Income

     177,612         87,688   

Other Operating Income

     185,542         187,294   

Other Ordinary Income

     58,058         84,210   

Ordinary Expenses

     1,026,042         1,087,858   

Interest Expenses

     179,908         158,175   

Interest on Deposits

     58,381         49,672   

Interest on Debentures

     3,986         339   

Fee and Commission Expenses

     56,171         55,968   

Other Operating Expenses

     59,031         55,429   

General and Administrative Expenses

     635,198         636,777   

Other Ordinary Expenses

     95,731         181,507   
  

 

 

    

 

 

 

Ordinary Profits

     423,829         256,467   
  

 

 

    

 

 

 

Extraordinary Gains

     34,961         91,443   

Extraordinary Losses

     7,713         4,277   
  

 

 

    

 

 

 

Income before Income Taxes and Minority Interests

     451,076         343,634   
  

 

 

    

 

 

 

Income Taxes:

     

Current

     11,236         21,043   

Deferred

     47,250         25,991   

Total Income Taxes

     58,486         47,034   

Net Income before Minority Interests

     392,590         296,599   

Minority Interests in Net Income

     50,831         41,933   
  

 

 

    

 

 

 

Net Income

   ¥ 341,759       ¥ 254,665   
  

 

 

    

 

 

 

 

1-5


Mizuho Financial Group, Inc.

 

[CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME]

 

     Millions of yen  
     For the six months ended
September 30, 2010
    For the six months ended
September 30, 2011
 

Income before Minority Interests

   ¥ 392,590      ¥ 296,599   

Other Comprehensive Income

     (98,566     (119,070

Net Unrealized Gains (Losses) on Other Securities

     (149,161     (136,627

Deferred Gains or Losses on Hedges

     60,003        18,788   

Revaluation Reserve for Land

     (21     —     

Foreign Currency Translation Adjustments

     (9,206     (516

Share of Other Comprehensive Income of Associates Accounted for Using Equity Method

     (180     (714
  

 

 

   

 

 

 

Comprehensive Income

     294,024        177,529   
  

 

 

   

 

 

 

Comprehensive Income Attributable to Owners of the Parent

     249,043        143,034   

Comprehensive Income Attributable to Minority Interests

     44,980        34,495   

 

1-6


Mizuho Financial Group, Inc.

 

(3) CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

 

     Millions of yen  
     For the six months ended
September 30, 2010
    For the six months ended
September 30, 2011
 

Shareholders’ Equity

    

Common Stock and Preferred Stock

    

Balance as of the beginning of the period

   ¥ 1,805,565      ¥ 2,181,375   

Changes during the period

    

Issuance of New Shares

     375,810        350   

Increase in Stock due to Share Exchange

     —          73,247   
  

 

 

   

 

 

 

Total Changes during the period

     375,810        73,597   
  

 

 

   

 

 

 

Balance as of the end of the period

     2,181,375        2,254,972   
  

 

 

   

 

 

 

Capital Surplus

    

Balance as of the beginning of the period

     552,135        937,680   

Changes during the period

    

Issuance of New Shares

     385,544        350   

Increase in Stock due to Share Exchange

     —          171,575   

Disposition of Treasury Stock

     —          173   
  

 

 

   

 

 

 

Total Changes during the period

     385,544        172,099   
  

 

 

   

 

 

 

Balance as of the end of the period

     937,680        1,109,779   
  

 

 

   

 

 

 

Retained Earnings

    

Balance as of the beginning of the period

     854,703        1,132,351   

Changes during the period

    

Cash Dividends

     (134,966     (140,097

Net Income

     341,759        254,665   

Disposition of Treasury Stock

     (1,314     (199

Transfer from Revaluation Reserve for Land

     455        2,618   
  

 

 

   

 

 

 

Total Changes during the period

     205,934        116,987   
  

 

 

   

 

 

 

Balance as of the end of the period

     1,060,637        1,249,339   
  

 

 

   

 

 

 

Treasury Stock

    

Balance as of the beginning of the period

     (5,184     (3,196

Changes during the period

    

Increase in Stock due to Share Exchange

     —          (13,318

Repurchase of Treasury Stock

     (1     (2

Disposition of Treasury Stock

     1,989        3,804   
  

 

 

   

 

 

 

Total Changes during the period

     1,988        (9,515
  

 

 

   

 

 

 

Balance as of the end of the period

   ¥ (3,195   ¥ (12,712
  

 

 

   

 

 

 

 

1-7


Mizuho Financial Group, Inc.

 

     Millions of yen  
     For the six months ended
September 30, 2010
    For the six months ended
September 30, 2011
 

Total Shareholders’ Equity

    

Balance as of the beginning of the period

   ¥ 3,207,219      ¥ 4,248,209   

Changes during the period

    

Issuance of New Shares

     761,354        701   

Increase in Stock due to Share Exchange

     —          231,504   

Cash Dividends

     (134,966     (140,097

Net Income

     341,759        254,665   

Repurchase of Treasury Stock

     (1     (2

Disposition of Treasury Stock

     675        3,779   

Transfer from Revaluation Reserve for Land

     455        2,618   
  

 

 

   

 

 

 

Total Changes during the period

     969,277        353,168   
  

 

 

   

 

 

 

Balance as of the end of the period

     4,176,496        4,601,378   
  

 

 

   

 

 

 

Accumulated Other Comprehensive Income

    

Net Unrealized Gains (Losses) on Other Securities

    

Balance as of the beginning of the period

     176,931        (21,648

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     (144,425     (130,732
  

 

 

   

 

 

 

Total Changes during the period

     (144,425     (130,732
  

 

 

   

 

 

 

Balance as of the end of the period

     32,505        (152,381
  

 

 

   

 

 

 

Deferred Gains or Losses on Hedges

    

Balance as of the beginning of the period

     83,093        68,769   

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     59,478        18,461   
  

 

 

   

 

 

 

Total Changes during the period

     59,478        18,461   
  

 

 

   

 

 

 

Balance as of the end of the period

     142,572        87,230   
  

 

 

   

 

 

 

Revaluation Reserve for Land

    

Balance as of the beginning of the period

     138,430        137,707   

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     (477     (2,618
  

 

 

   

 

 

 

Total Changes during the period

     (477     (2,618
  

 

 

   

 

 

 

Balance as of the end of the period

   ¥ 137,952      ¥ 135,088   
  

 

 

   

 

 

 

 

1-8


Mizuho Financial Group, Inc.

 

     Millions of yen  
     For the six months ended
September 30, 2010
    For the six months ended
September 30, 2011
 

Foreign Currency Translation Adjustments

    

Balance as of the beginning of the period

   ¥ (92,623   ¥ (103,921

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     (7,748     640   
  

 

 

   

 

 

 

Total Changes during the period

     (7,748     640   
  

 

 

   

 

 

 

Balance as of the end of the period

     (100,371     (103,281
  

 

 

   

 

 

 

Total Accumulated Other Comprehensive Income

    

Balance as of the beginning of the period

     305,831        80,906   

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     (93,171     (114,250
  

 

 

   

 

 

 

Total Changes during the period

     (93,171     (114,250
  

 

 

   

 

 

 

Balance as of the end of the period

     212,659        (33,343
  

 

 

   

 

 

 

Stock Acquisition Rights

    

Balance as of the beginning of the period

     2,301        2,754   

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     476        (1,735
  

 

 

   

 

 

 

Total Changes during the period

     476        (1,735
  

 

 

   

 

 

 

Balance as of the end of the period

     2,778        1,019   
  

 

 

   

 

 

 

Minority Interests

    

Balance as of the beginning of the period

     2,321,700        2,292,128   

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     (24,379     (342,253
  

 

 

   

 

 

 

Total Changes during the period

     (24,379     (342,253
  

 

 

   

 

 

 

Balance as of the end of the period

     2,297,321        1,949,875   
  

 

 

   

 

 

 

Total Net Assets

    

Balance as of the beginning of the period

     5,837,053        6,623,999   

Changes during the period

    

Issuance of New Shares

     761,354        701   

Increase in Stock due to Share Exchange

     —          231,504   

Cash Dividends

     (134,966     (140,097

Net Income

     341,759        254,665   

Repurchase of Treasury Stock

     (1     (2

Disposition of Treasury Stock

     675        3,779   

Transfer from Revaluation Reserve for Land

     455        2,618   

Net Changes in Items other than Shareholders’ Equity

     (117,074     (458,238
  

 

 

   

 

 

 

Total Changes during the period

     852,203        (105,069
  

 

 

   

 

 

 

Balance as of the end of the period

   ¥ 6,689,256      ¥ 6,518,929   
  

 

 

   

 

 

 

 

1-9


Mizuho Financial Group, Inc.

 

(4) NOTE FOR ASSUMPTION OF GOING CONCERN

There is no applicable information.

(5) ADDITIONAL INFORMATION

Mizuho Financial Group has applied “Accounting Standard for Accounting Changes and Error Corrections” (ASBJ Statement No.24, December 4, 2009) and “Guidance on Accounting Standard for Accounting Changes and Error Corrections” (ASBJ Guidance No.24, December 4, 2009) beginning with the treatment of accounting changes and corrections of prior period errors which are made after the beginning of this interim period.

Based on “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting Practice Committee Statement No.14), “Reversal of Reserves for Possible Losses on Loans” and “Recovery on Written-off Claims” have been recorded in “Other Ordinary Income” beginning with this interim period. However, retrospective application was not made for the previous interim period.

 

1-10


Mizuho Financial Group, Inc.

 

3. INTERIM NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) NON-CONSOLIDATED BALANCE SHEETS

 

     Millions of yen  
     As of
March 31, 2011
    As of
September 30, 2011
 

Assets

    

Current Assets

    

Cash and Due from Banks

   ¥ 16,490      ¥ 56,153   

Accounts Receivable

     3,540        1,471   

Other Current Assets

     6,861        8,173   

Total Current Assets

     26,892        65,798   

Fixed Assets

    

Tangible Fixed Assets

     1,446        1,862   

Intangible Fixed Assets

     3,202        2,887   

Investments

     6,003,616        6,082,422   

Investments in Subsidiaries and Affiliates

     5,938,822        6,034,650   

Other Investments

     64,793        47,772   

Total Fixed Assets

     6,008,266        6,087,172   
  

 

 

   

 

 

 

Total Assets

   ¥ 6,035,158      ¥ 6,152,970   
  

 

 

   

 

 

 

Liabilities

    

Current Liabilities

    

Short-term Borrowings

   ¥ 741,575      ¥ 738,315   

Short-term Bonds

     380,000        405,000   

Accrued Corporate Taxes

     94        75   

Reserve for Bonus Payments

     246        260   

Other Current Liabilities

     7,468        5,668   

Total Current Liabilities

     1,129,384        1,149,319   

Non-Current Liabilities

    

Bonds and Notes

     240,000        240,000   

Reserve for Employee Retirement Benefits

     1,757        1,890   

Asset Retirement Obligations

     640        642   

Other Non-Current Liabilities

     10,491        6,481   

Total Non-Current Liabilities

               252,890        249,013   
  

 

 

   

 

 

 

Total Liabilities

     1,382,274        1,398,333   
  

 

 

   

 

 

 

Net Assets

    

Shareholders’ Equity

    

Common Stock and Preferred Stock

     2,181,375        2,254,972   

Capital Surplus

    

Capital Reserve

     1,025,651        1,194,864   

Total Capital Surplus

     1,025,651        1,194,864   

Retained Earnings

    

Appropriated Reserve

     4,350        4,350   

Other Retained Earnings

     1,437,204        1,305,957   

Retained Earnings Brought Forward

     1,437,204        1,305,957   

Total Retained Earnings

     1,441,554        1,310,307   

Treasury Stock

     (3,196     (2,928
  

 

 

   

 

 

 

Total Shareholders’ Equity

     4,645,383        4,757,217   
  

 

 

   

 

 

 

Valuation and Translation Adjustments

    

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

     5,713        (3,599
  

 

 

   

 

 

 

Total Valuation and Translation Adjustments

     5,713        (3,599
  

 

 

   

 

 

 

Stock Acquisition Rights

     1,786        1,019   
  

 

 

   

 

 

 

Total Net Assets

     4,652,883        4,754,636   
  

 

 

   

 

 

 

Total Liabilities and Net Assets

   ¥ 6,035,158      ¥ 6,152,970   
  

 

 

   

 

 

 

 

1-11


Mizuho Financial Group, Inc.

 

(2) NON-CONSOLIDATED STATEMENTS OF INCOME

 

     Millions of yen  
     For the six months ended
September 30, 2010
    For the six months ended
September 30, 2011
 

Operating Income

   ¥ 32,606      ¥ 22,910   

Operating Expenses

    

General and Administrative Expenses

     9,615        10,408   

Total Operating Expenses

     9,615        10,408   
  

 

 

   

 

 

 

Operating Profits

     22,991        12,502   
  

 

 

   

 

 

 

Non-Operating Income

     5,622        5,856   

Non-Operating Expenses

     11,843        9,213   
  

 

 

   

 

 

 

Ordinary Profits

     16,770        9,145   
  

 

 

   

 

 

 

Extraordinary Losses

     202        1   
  

 

 

   

 

 

 

Income before Income Taxes

     16,567        9,144   
  

 

 

   

 

 

 

Income Taxes:

    

Current

     2        68   

Deferred

     (20     25   
  

 

 

   

 

 

 

Total Income Taxes

     (17     93   
  

 

 

   

 

 

 

Net Income

   ¥ 16,585      ¥ 9,050   
  

 

 

   

 

 

 

 

1-12


Mizuho Financial Group, Inc.

 

(3) NON-CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

 

     Millions of yen  
     For the six months ended
September 30, 2010
    For the six months ended
September 30, 2011
 

Shareholders’ Equity

    

Common Stock and Preferred Stock

    

Balance as of the beginning of the period

   ¥ 1,805,565      ¥ 2,181,375   

Changes during the period

    

Issuance of New Shares

     375,810        73,597   
  

 

 

   

 

 

 

Total Changes during the period

     375,810        73,597   
  

 

 

   

 

 

 

Balance as of the end of the period

     2,181,375        2,254,972   
  

 

 

   

 

 

 

Capital Surplus

    

Capital Reserve

    

Balance as of the beginning of the period

     649,841        1,025,651   

Changes during the period

    

Issuance of New Shares

     375,810        73,597   

Increase in Stock due to Share Exchange

     —          95,615   
  

 

 

   

 

 

 

Total Changes during the period

     375,810        169,213   
  

 

 

   

 

 

 

Balance as of the end of the period

     1,025,651        1,194,864   
  

 

 

   

 

 

 

Total Capital Surplus

    

Balance as of the beginning of the period

     649,841        1,025,651   

Changes during the period

    

Issuance of New Shares

     375,810        73,597   

Increase in Stock due to Share Exchange

     —          95,615   
  

 

 

   

 

 

 

Total Changes during the period

     375,810        169,213   
  

 

 

   

 

 

 

Balance as of the end of the period

     1,025,651        1,194,864   
  

 

 

   

 

 

 

Retained Earnings

    

Appropriated Reserve

    

Balance as of the beginning of the period

     4,350        4,350   

Changes during the period

    

Total Changes during the period

     —          —     
  

 

 

   

 

 

 

Balance as of the end of the period

     4,350        4,350   
  

 

 

   

 

 

 

Other Retained Earnings

    

Retained Earnings Brought Forward

    

Balance as of the beginning of the period

     1,554,974        1,437,204   

Changes during the period

    

Cash Dividends

     (134,966     (140,097

Net Income

     16,585        9,050   

Disposition of Treasury Stock

     (1,314     (199
  

 

 

   

 

 

 

Total Changes during the period

     (119,695     (131,246
  

 

 

   

 

 

 

Balance as of the end of the period

     1,435,279        1,305,957   
  

 

 

   

 

 

 

Total Retained Earnings

    

Balance as of the beginning of the period

     1,559,324        1,441,554   

Changes during the period

    

Cash Dividends

     (134,966     (140,097

Net Income

     16,585        9,050   

Disposition of Treasury Stock

     (1,314     (199
  

 

 

   

 

 

 

Total Changes during the period

     (119,695     (131,246
  

 

 

   

 

 

 

Balance as of the end of the period

   ¥ 1,439,629      ¥ 1,310,307   
  

 

 

   

 

 

 

 

1-13


Mizuho Financial Group, Inc.

 

     Millions of yen  
     For the six months ended
September 30, 2010
    For the six months ended
September 30, 2011
 

Treasury Stock

    

Balance as of the beginning of the period

   ¥ (5,184   ¥ (3,196

Changes during the period

    

Repurchase of Treasury Stock

     (1     (2

Disposition of Treasury Stock

     1,989        271   
  

 

 

   

 

 

 

Total Changes during the period

     1,988        268   
  

 

 

   

 

 

 

Balance as of the end of the period

     (3,195     (2,928
  

 

 

   

 

 

 

Total Shareholders’ Equity

    

Balance as of the beginning of the period

     4,009,546        4,645,383   

Changes during the period

    

Issuance of New Shares

     751,620        147,195   

Increase in Stock due to Share Exchange

     —          95,615   

Cash Dividends

     (134,966     (140,097

Net Income

     16,585        9,050   

Repurchase of Treasury Stock

     (1     (2

Disposition of Treasury Stock

     675        71   
  

 

 

   

 

 

 

Total Changes during the period

     633,913        111,833   
  

 

 

   

 

 

 

Balance as of the end of the period

     4,643,460        4,757,217   
  

 

 

   

 

 

 

Valuation and Translation Adjustments

    

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

    

Balance as of the beginning of the period

     (44     5,713   

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     (22     (9,313
  

 

 

   

 

 

 

Total Changes during the period

     (22     (9,313
  

 

 

   

 

 

 

Balance as of the end of the period

     (66     (3,599
  

 

 

   

 

 

 

Stock Acquisition Rights

    

Balance as of the beginning of the period

     1,643        1,786   

Changes during the period

    

Net Changes in Items other than Shareholders’ Equity

     142        (766
  

 

 

   

 

 

 

Total Changes during the period

     142        (766
  

 

 

   

 

 

 

Balance as of the end of the period

     1,786        1,019   
  

 

 

   

 

 

 

Total Net Assets

    

Balance as of the beginning of the period

     4,011,146        4,652,883   

Changes during the period

    

Issuance of New Shares

     751,620        147,195   

Increase in Stock due to Share Exchange

     —          95,615   

Cash Dividends

     (134,966     (140,097

Net Income

     16,585        9,050   

Repurchase of Treasury Stock

     (1     (2

Disposition of Treasury Stock

     675        71   

Net Changes in Items other than Shareholders’ Equity

     120        (10,079
  

 

 

   

 

 

 

Total Changes during the period

     634,033        101,753   
  

 

 

   

 

 

 

Balance as of the end of the period

   ¥ 4,645,179      ¥ 4,754,636   
  

 

 

   

 

 

 

(4) NOTE FOR ASSUMPTION OF GOING CONCERN

There is no applicable information.

 

1-14


SUMMARY OF FINANCIAL RESULTS

For the Second Quarter (First Half) of Fiscal 2011

(Six months ended September 30, 2011)

<Under Japanese GAAP>

 

 

LOGO

Mizuho Financial Group, Inc.


Summary Results for the Second Quarter (First Half) of Fiscal 2011

I. Summary of Income Analysis

 

Ø  

Consolidated Net Business Profits

 

   

Consolidated Gross Profits for the first half of fiscal 2011 decreased by JPY 106.1 billion on a year-on-year basis to JPY 990.5 billion.

Gross Profits of the 3 Banks decreased by JPY 88.6 billion on a year-on-year basis. This is mainly due to a decrease of JPY 83.6 billion in income from Trading and Others. Income from Customer Groups, including domestic business, decreased by JPY 5.0 billion in total, despite an increase in income from overseas business, particularly from Asia.

G&A Expenses of the 3 Banks decreased by JPY 3.0 billion on a year-on-year basis with our continued overall cost reduction efforts and other factors.

 

   

Aggregated Consolidated Gross Profits (Net Operating Revenues) of our two securities subsidiaries (Mizuho Securities and Mizuho Investors Securities) decreased by JPY 38.4 billion on a year-on-year basis.

 

   

As a result, Consolidated Net Business Profits for the first half of fiscal 2011 amounted to JPY 351.4 billion, a year-on-year decrease of JPY 113.5 billion.

 

Ø  

Consolidated Net Income

 

   

Credit-related Costs of the 3 Banks amounted to a net reversal of JPY 8.4 billion, primarily due to improved obligor classifications through our business revitalization support to corporate customers and other factors. Consolidated Credit-related Costs also amounted to a net reversal of JPY 13.2 billion, an improvement of JPY 4.6 billion on a year-on-year basis.

 

   

Net Losses related to Stocks of the 3 Banks amounted to JPY 67.2 billion. This was mainly due to recording impairment losses for certain stocks reflecting a decline in stock prices.

 

   

Due to the above-mentioned factors and the JPY 77.4 billion impact of turning the three listed subsidiaries into wholly-owned subsidiaries, Consolidated Net Income for the first half of fiscal 2011 amounted to JPY 254.6 billion. Thus, progress ratio was approximately 110% against our planned net income for the first half of fiscal 2011 (JPY 230 billion) and approximately 55% against our planned net income for full fiscal 2011 (JPY 460 billion).

(Consolidated)

 

      1H of FY2011
(Apr. 1 - Sep. 30, 2011)
 
            Change from
1H of FY2010
 
(JPY Bn)              

Consolidated Gross Profits *1

     990.5         -106.1   

Consolidated Net Business Profits *2

     351.4         -113.5   

Credit-related Costs

     13.2         4.6   

Net Gains (Losses) related to Stocks

     -60.6         -50.0   

Ordinary Profits

     256.4         -167.3   

Net Income

     254.6         -87.0   
(Reference) 3 Banks      
      1H of FY2011
(Apr. 1 - Sep. 30, 2011)
 
            Change from
1H of FY2010
 
(JPY Bn)              

Gross Profits *1

     792.3         -88.6   

G&A Expenses *1 (excluding Non-Recurring Losses)

     -432.7         3.0   

Net Business Profits

     359.5         -85.5   

Credit-related Costs

     8.4         -16.7   

Net Gains (Losses) related to Stocks

     -67.2         -52.2   

Ordinary Profits

     219.4         -135.8   

Net Income *3

     152.4         -202.5   

 

  *1 Certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as General and Administrative Expenses (excluding Non-Recurring Losses) until the previous period, have been included in Gross Profits beginning with this period, and reclassification of the figures for 1H of FY 2010 has been made accordingly

 

  *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 Includes JPY -27.2 billion impact of turning the three listed subsidiaries into wholly-owned subsidiaries. Excluding this impact, Net Income was JPY 179.6 billion.

 

2-1


Ø  

Net Interest Income

 

   

The average loan balance for the first half of fiscal 2011 decreased by JPY 0.3 trillion from that for the second half of fiscal 2010. This was due to a decrease in domestic loans, particularly those to the Japanese Government, offset in part by an increase in overseas loans.

 

   

The period end loan balance as of September 30, 2011 decreased by JPY 1.4 trillion compared with that as of March 31, 2011, mainly due to a decrease of JPY 1.0 trillion in loans to the Japanese Government.

 

   

The domestic loan-and-deposit rate margin for the first half of fiscal 2011 was 1.32%, a decrease of 0.04% from that for the second half of fiscal 2010.

LOGO

 

*1  

Aggregate of the 3 Banks, excluding Trust Account and loans to Mizuho Financial Group, Inc.

Balance for overseas branches includes foreign exchange translation impact.

*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

 

   

Non-interest Income from Customer Groups of the 3 Banks (on a managerial accounting basis) for the first half of fiscal 2011 increased by JPY 2.7 billion on a year-on-year basis.

 

   

This mainly resulted from a year-on-year increase in Non-interest Income from overseas business, particularly from Asia.

LOGO

 

*    Certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as General and Administrative Expenses until the previous period, have been included in Non-interest Income beginning with this period, and reclassification of the figure for 1H of FY 2010 has been made accordingly. The impact of the reclassification is JPY -4.4 billion for 1H of FY2010 and JPY -4.0 billion for 1H of FY2011, respectively

 

2-2


II. Financial Soundness

 

   

Our consolidated Capital Adequacy Ratio was 14.92%, a decline of 0.38% from that as of March 31, 2011.

 

   

The balance of Disclosed Claims (3 Banks) under the Financial Reconstruction Law decreased by JPY 41.9 billion from that as of March 31, 2011. NPL Ratio remained at a low level of 1.70%.

 

   

The balance of Consolidated Net Deferred Tax Assets decreased by JPY 32.9 billion from that as of March 31, 2011, and the ratio to Tier 1 Capital was 7.2%.

 

   

Unrealized Losses on Other Securities on a consolidated basis amounted to JPY -145.2 billion, mainly due to a decline in stock prices.

 

     September 30, 2011  
           Change from
Mar. 31, 2011
 
(JPY Bn, %)             

Consolidated Capital Adequacy Ratio

     14.92     -0.38

(Total Risk-based Capital)

     (7,615.2     (-295.7

Tier 1 Capital Ratio

     11.89     -0.04

(Tier 1 Capital)

     (6,069.8     (-100.4

Disclosed Claims under the Financial Reconstruction Law (3 Banks)

     1,166.0        -41.9   

NPL Ratio

     1.70     -0.02

(Net NPL Ratio *1)

     (0.82 %)      (-0.00 %) 

Net Deferred Tax Assets (DTAs) (Consolidated)

     438.2        -32.9   

Net DTAs / Tier 1 Ratio

     7.2     -0.4

Unrealized Gains (Losses) on Other Securities (Consolidated) *2

     -145.2        -145.8   

 

*1 (Disclosed Claims under the Financial Reconstruction Law - Reserves for Possible Losses on Loans) / (Total Claims - Reserves for Possible Losses on Loans) x 100

 

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

III. Disciplined Capital Management

 

   

We continue to pursue “strengthening of stable capital base” and “steady returns to shareholders” as our “disciplined capital management” policy. However, considering the ongoing global discussions with respect to capital, uncertainty over the economy and market trends, and other factors, we are placing a higher priority on “strengthening of stable capital base.”

 

   

Amid the ongoing global discussions on the revision of capital regulations, we aim to increase, as our medium-term target, our Consolidated Tier 1 Capital Ratio (under Basel II) to 12% or above and our Common Equity Capital Ratio* (under Basel III) as of the end of fiscal 2012, when the new capital regulations are scheduled to be implemented, to the mid-8% level.

 

   

We will strive to strengthen further our financial base mainly by accumulating retained earnings and improving asset efficiency through our initiatives such as the steady implementation of Mizuho’s Transformation Program that we announced in May 2010, and the realization in advance of the synergy effects of the integrated group-wide business operations including the transformation into ‘one bank’. Accordingly, we believe we will be able sufficiently to meet the new capital regulations including the framework to identify G-SIFIs.

 

  * The calculation of our Common Equity Capital Ratio includes the outstanding balance of the Eleventh Series Class XI Preferred Stock that will be mandatorily convertible into common stock in July 2016.

 

     Meanwhile, as of today, details (such as the calculation method for the capital adequacy ratio under the new capital regulations) have yet to be determined. Therefore, our Common Equity Capital Ratio is the estimated figure that Mizuho Financial Group calculates based on the publicly-available materials that have been issued to date.

 

(Note)

  The outstanding balance of the Eleventh Series Class XI Preferred Stock as of September 30, 2011 (excluding treasury stock) amounted to JPY 383.4 billion (59.3% of the initial amount issued of JPY 943.7 billion, had already been converted into common stock as of such date).

 

2-3


Earnings Plan for Fiscal 2011

(Figures below are on a consolidated basis)

 

Ø  

We now plan Consolidated Net Business Profits for fiscal 2011 to be JPY 770.0 billion, a decrease of JPY 30.0 billion compared with the original plan(*) based on the results for the first half of fiscal 2011 (an increase of JPY 28.2 billion compared with the actual results of the previous fiscal year). We plan Net Business Profits of the 3 Banks to be JPY 717.0 billion, an increase of JPY 30.0 billion compared with the original plan.

We endeavor to strengthen profitability by thoroughly promoting group collaboration among the banking, trust and securities subsidiaries in light of turning the three listed group companies into wholly-owned subsidiaries, as well as by realizing in advance the integration effects of the transformation into ‘one bank’.

(*) original plan announced on May 13, 2011

 

Ø  

Credit-related Costs are estimated to be JPY 65.0 billion considering the uncertainty over the global economy, while continuously implementing our business revitalization support to corporate customers and others.

 

Ø  

Based on the above, we continue to plan Consolidated Net Income to be JPY 460.0 billion.

 

Ø  

We plan to make cash dividend payments of JPY 6 per share of common stock as annual dividend payments for the fiscal year ending March 31, 2012, unchanged from that in the previous fiscal year, in consideration of the balance between “strengthening of stable capital base” and “steady returns to shareholders. We also plan to make cash dividend payments on preferred stock as prescribed. Pertaining to the above, we plan to make interim cash dividend payments in order to provide returns to shareholders at a more appropriate timing.

(Consolidated)

 

     FY2011 (Plan)  
            Change from
FY2010
 
(JPY Bn)              

Consolidated Net Business Profits*

     770.0         28.2   

Credit-related Costs

     -65.0         -48.3   

Net Gains (Losses) related to Stocks

     -60.0         10.5   

Ordinary Profits

     590.0         1.5   

Net Income

     460.0         46.7   

 

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

(Reference) 3 Banks

 

      FY2011 (Plan)  
             Change from
FY2010
 
(JPY Bn)              

Net Business Profits

     717.0         -25.3   

Credit-related Costs

     -63.0         -79.0   

Net Gains (Losses) related to Stocks

     -65.0         11.2   

Ordinary Profits

     455.0         -52.2   

Net Income

     325.0         -122.0   

 

[Planned cash dividends for the fiscal year ending March 31, 2012]

  

Common Stock

   Annual Cash Dividends per share      JPY 6   
   o/w Interim Cash Dividends      JPY 3   

The Eleventh Series

   Annual Cash Dividends per share      JPY 20   

Class XI Preferred Stock

   o/w Interim Cash Dividends      JPY 10   

The Thirteenth Series

   Annual Cash Dividends per share      JPY 30   

Class XIII Preferred Stock

   o/w Interim Cash Dividends      JPY 15   

 

 

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; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Management Policy, realize the synergy effects of the transformation into ‘one bank’, and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations. 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.

 

 

 

2-4


[Reference]

Breakdown of Earnings by Business Segment

 

[3 Banks]    1H of FY2011
(Apr. 1 - Sep. 30, 2011)
 
            Change from
1H of FY2010
 
(JPY Bn)              

Gross Profits *

     601.5         -5.0   

G&A Expenses *

     -347.1         4.0   

Customer Groups

     254.3         -0.9   

Gross Profits

     190.7         -83.6   

G&A Expenses

     -85.5         -0.9   

Trading & Others

     105.1         -84.5   

Gross Profits *

     792.3         -88.6   

G&A Expenses *

     -432.7         3.0   

Net Business Profits

     359.5         -85.5   

 

* Certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as General and Administrative Expenses until the previous period, have been included in Gross Profits beginning with this period, and reclassification of the figures for 1H of FY2011 has been made accordingly

 

 

Definition

3 Banks: Aggregate figures for Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking on a non-consolidated basis.

 

 

 

2-5


SELECTED FINANCIAL INFORMATION

For the Second Quarter (First Half) of Fiscal 2011

(Six months ended September 30, 2011)

<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”)

“HC”: Non-consolidated figures of Mizuho Financial Group, Inc.

 

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2011

   See above Notes    Page  

1. Income Analysis

   CON    NON      3- 1   

2. Interest Margins (Domestic Operations)

   NON         3- 6   

3. Use and Source of Funds

   NON         3- 7   

4. Net Gains/Losses on Securities

   NON         3- 11   

5. Unrealized Gains/Losses on Securities

   CON    NON      3- 13   

6. Projected Redemption Amounts for Securities

   NON         3- 15   

7. Overview of Derivative Transactions Qualifying for Hedge Accounting

   NON         3- 16   

8. Employee Retirement Benefits

   NON    CON      3- 17   

9. Capital Adequacy Ratio

   CON         3- 19   

II. REVIEW OF CREDITS

   See above Notes    Page  

1. Status of Non-Accrual, Past Due & Restructured Loans

   CON    NON      3- 21   

2. Status of Reserves for Possible Losses on Loans

   CON    NON      3- 23   

3. Reserve Ratios for Non-Accrual, Past Due & Restructured Loans

   CON    NON      3- 24   

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

   CON    NON      3- 25   

5. Coverage on Disclosed Claims under the FRL

   NON         3- 27   

6. Overview of Non-Performing Loans(“NPLs”)

   NON         3- 30   

7. Results of Removal of NPLs from the Balance Sheet

   NON         3- 31   

8. Status of Loans by Industry

        

(1) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Industry

   NON         3- 33   

(2) Disclosed Claims under the FRL and Coverage Ratio by Industry

   NON         3- 35   

9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises

        

(“SMEs”) and Individual Customers

        

(1) Balance of Housing and Consumer Loans

   NON         3- 36   

(2) Loans to SMEs and Individual Customers

   NON         3- 36   

10. Status of Loans by Region

        

(1) Balance of Loans to Restructuring Countries

   NON         3- 37   

(2) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Region

   NON         3- 37   

III. DEFERRED TAXES

   See above Notes    Page  

1. Change in Deferred Tax Assets, etc.

   CON    NON      3- 38   

2. Estimation of Deferred Tax Assets, etc.

        

(1) Calculation Policy

   NON         3- 39   

(2) Estimation for Calculating Deferred Tax Assets

   NON         3- 40   


IV. OTHERS

   See above Notes    Page  

1. Breakdown of Deposits (Domestic Offices)

   NON         3- 44   

2. Number of Directors and Employees

   HC    NON      3- 45   

3. Number of Branches and Offices

   NON         3- 46   

4. Earnings Plan for Fiscal 2011

   CON    NON      3- 47   

Attachments

   See above Notes    Page  

Mizuho Bank, Ltd.

        

Comparison of Non-Consolidated Balance Sheets (selected items)

   NON         3- 48   

Comparison of Non-Consolidated Statements of Income (selected items)

   NON         3- 49   

Non-Consolidated Statement of Changes in Net Assets

   NON         3- 50   

Mizuho Corporate Bank, Ltd.

        

Comparison of Non-Consolidated Balance Sheets (selected items)

   NON         3- 51   

Comparison of Non-Consolidated Statements of Income (selected items)

   NON         3- 52   

Non-Consolidated Statement of Changes in Net Assets

   NON         3- 53   

Mizuho Trust & Banking Co., Ltd.

        

Comparison of Non-Consolidated Balance Sheets (selected items)

   NON         3- 54   

Comparison of Non-Consolidated Statements of Income (selected items)

   NON         3- 55   

Non-Consolidated Statement of Changes in Net Assets

   NON         3- 56   

Statement of Trust Assets and Liabilities

   NON         3- 57   

Comparison of Balances of Principal Items

   NON         3- 58   

 

 

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; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Management Policy and other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

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.

 


Mizuho Financial Group, Inc.

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2011

1. Income Analysis

Consolidated

 

            (Millions of yen)  
            First Half of Fiscal 2011     First Half of
Fiscal 2010
 
                  Change    

Consolidated Gross Profits

     1         990,542        (106,159     1,096,701   

Net Interest Income

     2         535,149        (18,394     553,544   

Fiduciary Income

     3         24,507        449        24,058   

Credit Costs for Trust Accounts

     4         —          —          —     

Net Fee and Commission Income *1

     5         211,331        (3,643     214,974   

Net Trading Income

     6         87,688        (89,923     177,612   

Net Other Operating Income

     7         131,864        5,353        126,511   

General and Administrative Expenses

     8         (636,777     (1,578     (635,198

Personnel Expenses

     9         (316,420     (3,638     (312,781

Non-Personnel Expenses *1

     10         (293,132     2,600        (295,733

Miscellaneous Taxes

     11         (27,223     (540     (26,683

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

     12         (19,954     10,027        (29,982

Losses on Write-offs of Loans

     13         (19,326     10,102        (29,429

Reversal of Reserves for Possible Losses on Loans, etc. *2

     14         33,198        33,198     

Net Gains (Losses) related to Stocks *3

     15         (60,616     (50,049     (10,567

Equity in Income from Investments in Affiliates

     16         82        (2,421     2,503   
     

 

 

   

 

 

   

 

 

 

Other

     17         (50,007     (50,379     372   
     

 

 

   

 

 

   

 

 

 

Ordinary Profits

     18         256,467        (167,361     423,829   

Net Extraordinary Gains (Losses)

     19         87,166        59,918        27,247   

Gains on Negative Goodwill Incurred

     20         91,180        91,180        —     

Reversal of Reserves for Possible Losses on Loans, etc. *2

     21           (38,543     38,543   

Reversal of Reserve for Possible Losses on Investments *3

     22           (7     7   

Income before Income Taxes and Minority Interests

     23         343,634        (107,442     451,076   

Income Taxes - Current

     24         (21,043     (9,807     (11,236

              - Deferred

     25         (25,991     21,258        (47,250

Net Income before Minority Interests

     26         296,599        (95,991     392,590   

Minority Interests in Net Income

     27         (41,933     8,898        (50,831
     

 

 

   

 

 

   

 

 

 

Net Income

     28         254,665        (87,093     341,759   
     

 

 

   

 

 

   

 

 

 

 

*1.    Certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “Non-Personnel Expenses” [10] until the previous period, have been included in “Net Fee and Commission Income” [5] as “Fee and Commission Expenses” beginning with this period, and reclassification of prior period figures has been made accordingly.

*2.    “Reversal of Reserves for Possible Losses on Loans, etc.” [21], which had been included in “Net Extraordinary Gains (Losses)” until the previous period, has been presented as “Reversal of Reserves for Possible Losses on Loans, etc.” [14] beginning with this period. (Please refer to page 1-10 of this release for more information.)

*3.    “Reversal of Reserve for Possible Losses on Investments” [22], which had been included in “Net Extraordinary Gains (Losses)” until the previous period, has been included in “Net Gains (Losses) related to Stocks” [15] beginning with this period.

          

         

         

Credit-related Costs

(including Credit Costs for Trust Accounts)

     29         13,244        4,683        8,561   

 

*  Credit-related Costs [29] = Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans) [12] + Reversal of Reserves for Possible Losses on Loans, etc. [14] , [21] + Credit Costs for Trust Accounts [4]

    

(Reference)

         

Consolidated Net Business Profits

     30         351,426        (113,564     464,991   

 

*  Consolidated Net Business Profits [30] = 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

     31         153        (10     163   

Number of affiliates under the equity method

     32         23        2        21   

 

3-1


Mizuho Financial Group, Inc.

 

Aggregated Figures of the 3 Banks

Non-Consolidated

 

            (Millions of yen)  
            First Half of Fiscal 2011     First Half of
Fiscal 2010
 
            MHBK     MHCB     MHTB     Aggregated
Figures
    Change    

Gross Profits

     1         382,218        347,734        62,354        792,307        (88,668     880,976   

Domestic Gross Profits

     2         341,751        132,203        56,524        530,478        (65,045     595,524   

Net Interest Income

     3         264,893        95,506        19,485        379,885        (20,544     400,429   

Fiduciary Income

     4             24,242        24,242        435        23,806   

Credit Costs for Trust Accounts *1

     5             —          —          —          —     

Net Fee and Commission Income *2

     6         61,662        25,607        9,117        96,387        (9,949     106,336   

Net Trading Income

     7         2,755        6,043        1,856        10,654        (3,283     13,937   

Net Other Operating Income

     8         12,440        5,046        1,822        19,309        (31,705     51,014   

International Gross Profits

     9         40,467        215,530        5,830        261,828        (23,622     285,451   

Net Interest Income

     10         7,750        94,535        1,902        104,188        (6,389     110,577   

Net Fee and Commission Income

     11         5,252        33,844        (59     39,037        6,108        32,929   

Net Trading Income

     12         25,440        (3,743     (826     20,870        (55,485     76,356   

Net Other Operating Income

     13         2,023        90,893        4,814        97,732        32,143        65,588   

General and Administrative Expenses (excluding Non-Recurring Losses)

     14         (276,263     (116,834     (39,676     (432,774     3,099        (435,873

Expense Ratio

     15         72.2     33.5     63.6     54.6     5.1     49.4

Personnel Expenses

     16         (95,439     (44,026     (17,889     (157,355     (5,769     (151,585

Non-Personnel Expenses *2

     17         (164,892     (66,999     (20,579     (252,471     8,732        (261,204

Premium for Deposit Insurance

     18         (23,191     (3,705     (1,208     (28,105     55        (28,161

Miscellaneous Taxes

     19         (15,932     (5,807     (1,207     (22,947     136        (23,083
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     20         105,954        230,899        22,677        359,532        (85,569     445,102   

Excluding Net Gains (Losses) related to Bonds

     21         88,980        172,617        16,182        277,780        (41,040     318,821   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     22         —          (7,040     —          (7,040     (7,545     504   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Business Profits

     23         105,954        223,859        22,677        352,492        (93,115     445,607   

Net Gains (Losses) related to Bonds

     24         16,974        58,281        6,495        81,751        (44,529     126,281   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Non-Recurring Gains (Losses)

     25         (51,749     (72,889     (8,432     (133,071     (42,753     (90,317

Net Gains (Losses) related to Stocks *3

     26         (5,192     (59,440     (2,641     (67,274     (52,245     (15,029

Expenses related to Portfolio Problems

     27         (13,899     6,150        (169     (7,918     22,961        (30,879

Reversal of Reserves for Possible Losses on Loans, etc. *4

     28         21,393        1,576        477        23,447        23,447     

Other

     29         (54,050     (21,176     (6,098     (81,325     (36,917     (44,408
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ordinary Profits

     30         54,205        150,969        14,245        219,420        (135,868     355,289   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Extraordinary Gains (Losses)

     31         (29,487     (622     (28     (30,139     (74,930     44,790   

Net Gains (Losses) on Disposition of Fixed Assets

     32         (918     (437     (25     (1,381     179        (1,560

Losses on Impairment of Fixed Assets

     33         (841     (185     (2     (1,029     1,421        (2,451

Reversal of Reserves for Possible Losses on Loans, etc. *4

     34                 (55,662     55,662   

Reversal of Reserve for Possible Losses on Investments *3

     35                 (93     93   

Income before Income Taxes

     36         24,718        150,346        14,217        189,281        (210,798     400,080   

Income Taxes - Current

     37         (219     (11,756     (4     (11,980     (7,058     (4,922

              - Deferred

     38         (6,894     (13,466     (4,451     (24,812     15,336        (40,148
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

     39         17,604        125,123        9,760        152,488        (202,521     355,009   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*1.    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” [5].

*2.    Certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “Non-Personnel Expenses” [17] in MHTB until the previous period, have been included in “Net Fee and Commission Income” [6] as “Fee and Commission Expenses” beginning with this period, and reclassification of prior period figures has been made accordingly.

*3.    “Reversal of Reserve for Possible Losses on Investments” [35], which had been included in “Net Extraordinary Gains (Losses)” until the previous period, has been presented as “Net Gains (Losses) related to Stocks” [26] beginning with this period.

*4.    “Reversal of Reserves for Possible Losses on Loans, etc.” [34], which had been included in “Net Extraordinary Gains (Losses)” until the previous period, has been presented as “Reversal of Reserves for Possible Losses on Loans, etc.” [28] beginning with this period. (Please refer to page 1-10 of this release for more information.)

        

          

        

         

Credit-related Costs

     40         7,493        686        308        8,488        (16,799     25,288   

 

*  Credit-related Costs [40] = Expenses related to Portfolio Problems [27] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [22] + Reversal of Reserves for Possible Losses on Loans, etc. [28], [34] + Credit Costs for Trust Accounts [5]

    

(Reference) Breakdown of Credit-related Costs

  

         

Credit Costs for Trust Accounts

     41             —          —          —          —     

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

     42         12,356        (7,040     1,200        6,515        (28,513     35,029   

Losses on Write-offs of Loans

     43         (2,057     1,090        (169     (1,136     4,466        (5,602

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

     44         (2,086     6,778        (731     3,961        7,907        (3,946

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

     45         —          1        0        1        (160     161   

Reversal of (Provision for) Reserve for Contingencies

     46         —          (110     8        (101     (742     641   

Other (including Losses on Sales of Loans)

     47         (719     (32     —          (751     243        (995

Total

     48         7,493        686        308        8,488        (16,799     25,288   

 

3-2


Mizuho Financial Group, Inc.

 

Mizuho Bank

Non-Consolidated

            (Millions of yen)  
            First Half of Fiscal 2011     First Half of
Fiscal 2010
 
                  Change    

Gross Profits

     1         382,218        (39,474     421,693   

Domestic Gross Profits

     2         341,751        (18,308     360,060   

Net Interest Income

     3         264,893        (8,644     273,537   

Net Fee and Commission Income

     4         61,662        (6,699     68,361   

Net Trading Income

     5         2,755        889        1,865   

Net Other Operating Income

     6         12,440        (3,855     16,295   

International Gross Profits

     7         40,467        (21,165     61,633   

Net Interest Income

     8         7,750        (4,597     12,347   

Net Fee and Commission Income

     9         5,252        (274     5,526   

Net Trading Income

     10         25,440        (15,357     40,798   

Net Other Operating Income

     11         2,023        (936     2,960   

General and Administrative Expenses (excluding Non-Recurring Losses)

     12         (276,263     3,104        (279,368

Expense Ratio

     13         72.2     6.0     66.2

Personnel Expenses

     14         (95,439     (1,626     (93,812

Non-Personnel Expenses

     15         (164,892     4,891        (169,783

Premium for Deposit Insurance

     16         (23,191     39        (23,231

Miscellaneous Taxes

     17         (15,932     (160     (15,771
     

 

 

   

 

 

   

 

 

 

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

     18         105,954        (36,370     142,325   

Excluding Net Gains (Losses) related to Bonds

     19         88,980        (24,471     113,452   
     

 

 

   

 

 

   

 

 

 

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

     20         —          —          —     
     

 

 

   

 

 

   

 

 

 

Net Business Profits

     21         105,954        (36,370     142,325   

Net Gains (Losses) related to Bonds

     22         16,974        (11,898     28,872   
     

 

 

   

 

 

   

 

 

 

Net Non-Recurring Gains (Losses)

     23         (51,749     1,292        (53,041

Net Gains (Losses) related to Stocks *1

     24         (5,192     1,066        (6,258

Expenses related to Portfolio Problems

     25         (13,899     11,406        (25,306

Reversal of Reserves for Possible Losses on Loans, etc. *2

     26         21,393        21,393     

Other

     27         (54,050     (32,573     (21,476
     

 

 

   

 

 

   

 

 

 

Ordinary Profits

     28         54,205        (35,077     89,283   
     

 

 

   

 

 

   

 

 

 

Net Extraordinary Gains (Losses)

     29         (29,487     (54,799     25,312   

Net Gains (Losses) on Disposition of Fixed Assets

     30         (918     (185     (732

Losses on Impairment of Fixed Assets

     31         (841     792        (1,633

Reversal of Reserves for Possible Losses on Loans, etc. *2

     32           (28,113     28,113   

Reversal of Reserve for Possible Losses on Investments *1

     33           (9     9   

Income before Income Taxes

     34         24,718        (89,877     114,595   

Income Taxes - Current

     35         (219     28        (247

              - Deferred

     36         (6,894     (19,563     12,669   
     

 

 

   

 

 

   

 

 

 

Net Income

     37         17,604        (109,412     127,017   
     

 

 

   

 

 

   

 

 

 

 

*1.    “Reversal of Reserve for Possible Losses on Investments” [33], which had been included in “Net Extraordinary Gains (Losses)” until the previous period, has been included in “Net Gains (Losses) related to Stocks” [24] beginning with this period.

*2.    “Reversal of Reserves for Possible Losses on Loans, etc.” [32], which had been included in “Net Extraordinary Gains (Losses)” until the previous period, has been presented as “Reversal of Reserves for Possible Losses on Loans, etc.” [26] beginning with this period. (Please refer to page 1-10 of this release for more information.)

        

         

Credit-related Costs

     38         7,493        4,685        2,807   

 

*  Credit-related Costs [38] = Expenses related to Portfolio Problems [25] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [20] + Reversal of Reserves for Possible Losses on Loans, etc. [26], [32]

   

(Reference) Breakdown of Credit-related Costs

         

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

     39         12,356