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Mizuho Financial Group 6-K 2012

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Form 6-K
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2012

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-                    .

 

 

 


Table of Contents

SIGNATURES

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

 

Date:

  July 30, 2012

Mizuho Financial Group, Inc.

By:

 

/s/ Hideyuki Takahashi

Name:

  Hideyuki Takahashi

Title:

  Managing Director / CFO


Table of Contents

The following is an English translation of excerpt regarding Basel II capital adequacy disclosure and relevant information released in our Japanese language disclosure material published in July 2012. The capital adequacy disclosure and other financial information included herein are based on Japanese GAAP pursuant to Japanese regulatory requirements.

In this report, “we,” “us,” and “our” refer to Mizuho Financial Group, Inc. and, unless the context indicates otherwise, its consolidated subsidiaries. “Mizuho Financial Group” refers to Mizuho Financial Group, Inc.

Status of Capital Adequacy

 

 

Capital adequacy ratio highlights

     2   

n      Capital adequacy ratio highlights

  

Status of Mizuho Financial Group’s consolidated capital adequacy

     4   

n     Scope of consolidation

     4   

(1)    Scope of consolidation for calculating consolidated capital adequacy ratio

  

n      Consolidated capital adequacy ratio

     6   

(2)    Summary table of consolidated capital adequacy ratio (BIS Standard)

  

n     Risk-based capital

     8   

(3)    Summary of types of capital instruments

  

(4)    Summary of approach to assessing capital adequacy

  

(5)    Required capital by portfolio classification

  

n     Credit risk

     20   

(6)    Credit risk management

  

(7)    Credit risk exposure, etc.

  

n      Methods for credit risk mitigation

     34   

(8)    Risk management regarding credit risk mitigation

  

(9)    Credit risk mitigation by portfolio classification

  

n      Counterparty risk in derivatives transactions and long-settlement transactions

     35   

(10)  Management of counterparty risk in derivatives transactions and long-settlement transactions

  

(11)  Status of counterparty risk in derivatives transactions and long-settlement transactions

  

n     Securitization exposure

     37   

(12)  Summary of securitization exposure and its risk management

  

(13)  Accounting policies for securitization transactions

  

(14)  Quantitative disclosure items for securitization exposure

  

n     Market risk

     53   

n     Operational risk

     53   

n      Equity exposure in banking book

     53   

(15)  Risk management related to equity exposure in banking book

  

(16)  Status of equity exposure in banking book

  

n      Compensation of directors, corporate auditors and employees

     55   

(17)  Qualitative disclosure

  

(18)  Quantitative disclosure items

 

        

Credit risk management

     58   

Market and liquidity risk management

     59   

Operational risk management

     67   

 

1


Table of Contents

Capital adequacy ratio highlights

The Basel II Framework, based on the “International Convergence of Capital Measurement and Capital Standards: A Revised Framework” issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy information to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the “Matters Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions, etc. pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law (Ministry of Finance Ordinance No. 10 of 1982)” (FSA Notice No. 15 of 2007).

As a method to calculate the amount of credit risk-weighted assets under the Basel II Framework, we have adopted the advanced internal ratings-based approach. In addition, as a method to calculate the amount equivalent to the operational risk, we have adopted the advanced measurement approach.

n Capital adequacy ratio highlights

 

Mizuho Financial Group (Consolidated)

 

   (Billions of yen)  
     As of March 31, 2011     As of March 31, 2012  

Consolidated capital adequacy ratio (BIS standard)

     15.30     15.49

Tier 1 capital ratio

     11.93     12.75
  

 

 

   

 

 

 

Tier 1 capital

     6,170.2        6,397.8   

Tier 2 capital

     2,103.4        1,745.1   

Deductions for total risk-based capital

     362.6        370.0   
  

 

 

   

 

 

 

Total risk-based capital

     7,910.9        7,772.9   
  

 

 

   

 

 

 

Risk-weighted assets

     51,693.8        50,165.9   
  

 

 

   

 

 

 

(Reference)

    

Mizuho Corporate Bank (Consolidated)

 

   (Billions of yen)  
     As of March 31, 2011     As of March 31, 2012  

Consolidated capital adequacy ratio (BIS standard)

     18.80     17.80

Tier 1 capital ratio

     16.10     15.86
  

 

 

   

 

 

 

Tier 1 capital

     4,528.8        4,430.8   

Tier 2 capital

     881.2        680.6   

Deductions for total risk-based capital

     122.9        137.2   
  

 

 

   

 

 

 

Total risk-based capital

     5,287.1        4,974.2   
  

 

 

   

 

 

 

Risk-weighted assets

     28,121.6        27,931.6   
  

 

 

   

 

 

 

Mizuho Corporate Bank (Non-consolidated)

 

   (Billions of yen)  
     As of March 31, 2011     As of March 31, 2012  

Non-consolidated capital adequacy ratio (BIS standard)

     20.34     20.15

Tier 1 capital ratio

     15.82     16.32
  

 

 

   

 

 

 

Tier 1 capital

     4,053.6        4,135.2   

Tier 2 capital

     1,214.8        1,011.2   

Deductions for total risk-based capital

     57.0        41.3   
  

 

 

   

 

 

 

Total risk-based capital

     5,211.5        5,105.1   
  

 

 

   

 

 

 

Risk-weighted assets

     25,617.3        25,327.3   
  

 

 

   

 

 

 

Mizuho Bank (Consolidated)

 

   (Billions of yen)  
     As of March 31, 2011     As of March 31, 2012  

Consolidated capital adequacy ratio (Domestic standard)

     14.91     15.52

Tier 1 capital ratio

     10.38     11.39
  

 

 

   

 

 

 

Tier 1 capital

     2,374.7        2,428.1   

Tier 2 capital

     1,129.5        977.6   

Deductions for total risk-based capital

     93.4        98.9   
  

 

 

   

 

 

 

Total risk-based capital

     3,410.8        3,306.8   
  

 

 

   

 

 

 

Risk-weighted assets

     22,868.8        21,299.9   
  

 

 

   

 

 

 

(Reference) Consolidated capital adequacy ratio (BIS standard)

     14.60     15.46
  

 

 

   

 

 

 

Mizuho Bank (Non-Consolidated)

 

   (Billions of yen)  
     As of March 31, 2011     As of March 31, 2012  

Non-consolidated capital adequacy ratio (Domestic standard)

     15.02     15.62

Tier 1 capital ratio

     10.54     11.51
  

 

 

   

 

 

 

Tier 1 capital

     2,329.4        2,379.6   

Tier 2 capital

     1,129.4        978.7   

Deductions for total risk-based capital

     140.6        131.0   
  

 

 

   

 

 

 

Total risk-based capital

     3,318.1        3,227.2   
  

 

 

   

 

 

 

Risk-weighted assets

     22,091.2        20,656.9   
  

 

 

   

 

 

 

(Reference) Non-consolidated capital adequacy ratio (BIS standard)

     14.68     15.47
  

 

 

   

 

 

 

 

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Table of Contents

Mizuho Trust & Banking (Consolidated)

 

   (Billions of yen)  
     As of March 31, 2011     As of March 31, 2012  

Consolidated capital adequacy ratio (BIS standard)

     16.34     18.26

Tier 1 capital ratio

     12.11     14.02
  

 

 

   

 

 

 

Tier 1 capital

     296.8        334.5   

Tier 2 capital

     110.8        103.5   

Deductions for total risk-based capital

     7.2        2.4   
  

 

 

   

 

 

 

Total risk-based capital

     400.4        435.7   
  

 

 

   

 

 

 

Risk-weighted assets

     2,449.6        2,386.0   
  

 

 

   

 

 

 

Mizuho Trust & Banking (Non-Consolidated)

 

   (Billions of yen)  
     As of March 31, 2011     As of March 31, 2012  

Non-consolidated capital adequacy ratio (BIS standard)

     16.54     18.42

Tier 1 capital ratio

     12.28     14.13
  

 

 

   

 

 

 

Tier 1 capital

     296.3        332.4   

Tier 2 capital

     110.3        103.1   

Deductions for total risk-based capital

     7.4        2.3   
  

 

 

   

 

 

 

Total risk-based capital

     399.1        433.1   
  

 

 

   

 

 

 

Risk-weighted assets

     2,412.3        2,351.6   
  

 

 

   

 

 

 

 

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Table of Contents

Status of Mizuho Financial Group’s consolidated capital adequacy

n Scope of consolidation

(1) Scope of consolidation for calculating consolidated capital adequacy ratio

(A) Difference from the companies included in the scope of consolidation based on consolidation rules for preparation of consolidated financial statements

None as of March 31, 2011 and 2012.

(B) Number of consolidated subsidiaries

 

     As of March 31, 2011      As of March 31, 2012  

Consolidated subsidiaries

     152         149   

Our major consolidated subsidiaries are Mizuho Corporate Bank, Ltd., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co., Ltd.

The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2012:

 

Name

   Country of
organization
   Main business    Proportion  of
ownership
interest
(%)
    Proportion of
voting
interest
(%)
 

Domestic

          

Mizuho Corporate Bank, Ltd.

   Japan    Banking      100.0     100.0

Mizuho Bank, Ltd.

   Japan    Banking      100.0        100.0   

Mizuho Trust & Banking Co., Ltd.

   Japan    Trust and
banking
     100.0        100.0   

Mizuho Securities Co., Ltd.

   Japan    Securities      94.7        94.7   

Mizuho Investors Securities Co., Ltd.

   Japan    Securities      100.0        100.0   

Trust & Custody Services Bank, Ltd.

   Japan    Trust and
banking
     54.0        54.0   

Mizuho Asset Management Co., Ltd.

   Japan    Investment
management
     98.7        98.7   

Mizuho Research Institute Ltd.

   Japan    Research and
consulting
     98.6        98.6   

Mizuho Information & Research Institute Inc.

   Japan    Information
technology
     91.5        91.5   

Mizuho Financial Strategy Co., Ltd.

   Japan    Consulting      100.0        100.0   

Mizuho Private Wealth Management Co., Ltd.

   Japan    Consulting      100.0        100.0   

Mizuho Factors, Limited

   Japan    Factoring      100.0        100.0   

Mizuho Credit Guarantee Co., Ltd.

   Japan    Credit
guarantee
     100.0        100.0   

Mizuho Capital Co., Ltd.

   Japan    Venture
capital
     50.0        50.0   

Defined Contribution Plan Services Co., Ltd.

   Japan    Pension
plan-related
business
     60.0        60.0   

Overseas

          

Mizuho Bank (Switzerland) Ltd

   Switzerland    Trust and
banking
     100.0        100.0   

Mizuho Capital Markets Corporation

   U.S.A.    Derivatives      100.0        100.0   

Mizuho Corporate Bank (China), Ltd.

   China    Banking      100.0        100.0   

Mizuho Corporate Bank (USA)

   U.S.A.    Banking      100.0        100.0   

Mizuho Corporate Bank Nederland N.V.

   Netherlands    Banking and
securities
     100.0        100.0   

Mizuho International plc

   U.K.    Securities
and banking
     100.0        100.0   

Mizuho Securities USA Inc.

   U.S.A.    Securities      100.0        100.0   

Mizuho Trust & Banking (Luxembourg) S.A.

   Luxembourg    Trust and
banking
     100.0        100.0   

Mizuho Trust & Banking Co. (USA)

   U.S.A.    Trust and
banking
     100.0        100.0   

PT. Bank Mizuho Indonesia

   Indonesia    Banking      99.0        99.0   

 

Note:

  
   In September 2011, Mizuho Securities, Mizuho Investors Securities and Mizuho Trust & Banking became wholly-owned subsidiaries through stock-for-stock exchanges, and all three companies, formerly listed on the Tokyo Stock Exchange and other financial instrument exchanges, were delisted.

 

4


Table of Contents

(C) Corporations providing financial services for which Article 9 of the Consolidated Capital Adequacy Ratio Notice is applicable

None as of March 31, 2011 and 2012.

(D) Related companies for which deductions set forth in Article 8, Paragraph 1, Item 2, Subsections 1 to 3 of the Consolidated Capital Adequacy Ratio Notice are applicable

None as of March 31, 2011 and 2012.

(E) Companies described in Article 52-23, Paragraph 1, Item 10 of the Banking Law that are mainly engaged in businesses as described in Subsection 1 of such item or companies set forth in Item 11 of such paragraph, but that are not in the holding company’s corporate group

None as of March 31, 2011 and 2012.

(F) Restrictions on transfer of funds or capital within the holding company’s corporate group

None as of March 31, 2011 and 2012.

 

5


Table of Contents

n Consolidated capital adequacy ratio

(2) Summary table of consolidated capital adequacy ratio (BIS standard)

 

                (Billions of yen)  
                As of March 31, 2011     As of March 31, 2012  

Tier 1 capital

  

Common stock and preferred stock

       2,181.3        2,254.9   
       

 

 

   

 

 

 
  

Non-cumulative perpetual preferred stock

       —          —     
       

 

 

   

 

 

 
  

Advance payment for new shares

       —          —     
  

Capital surplus

       937.6        1,109.7   
  

Retained earnings

       1,132.3        1,405.4   
  

Less: Treasury stock

       3.1        7.0   
  

Advance payment for treasury stock

       —          —     
  

Less: Dividends (estimate), etc

       140.0        76.3   
  

Less: Unrealized losses on other securities

       7.0        —     
  

Foreign currency translation adjustments

       (103.9     (102.8
  

Stock acquisition rights

       2.7        2.1   
       

 

 

   

 

 

 
  

Minority interest in consolidated subsidiaries

       2,269.6        1,941.4   
       

 

 

   

 

 

 
  

Preferred securities issued by overseas SPCs

       1,919.8        1,859.6   
       

 

 

   

 

 

 
  

Less: Goodwill equivalent

       1.9        60.5   
  

Less: Intangible fixed assets recognized as a result of a merger

       38.9        38.3   
  

Less: Capital increase due to securitization transactions

       5.4        4.5   
  

Less: 50% of excess of expected losses relative to eligible reserves by banks adopting internal ratings-based approach

       52.9        26.1   
  

Total of Tier 1 capital before deduction of deferred tax assets (total of the above items)

       6,170.2        6,397.8   
  

Deduction for deferred tax assets

       —          —     
       

 

 

   

 

 

 
  

Total

     (A     6,170.2        6,397.8   
       

 

 

   

 

 

 
  

Preferred securities with a step-up interest rate provision

     (B     524.0        524.0   
  

Ratio to Tier 1 = (B) / (A) X 100

       8.49     8.19
       

 

 

   

 

 

 

Tier 2 capital

  

45% of unrealized gains on other securities

       —          45.1   
  

45% of revaluation reserve for land

       106.2        102.5   
  

General reserve for possible losses on loans

       4.9        4.2   
  

Excess of eligible reserves relative to expected losses by banks adopting internal ratings-based approach

       —          —     
       

 

 

   

 

 

 
  

Debt capital, etc.

       1,992.2        1,593.2   
       

 

 

   

 

 

 
  

Perpetual subordinated debt and other debt capital

       343.6        262.6   
  

Dated subordinated debt and redeemable preferred stock

       1,648.6        1,330.6   
       

 

 

   

 

 

 
  

Total

       2,103.4        1,745.1   
       

 

 

   

 

 

 
  

Tier 2 capital included as qualifying capital

     (C     2,103.4        1,745.1   
       

 

 

   

 

 

 

Tier 3 capital

  

Short-term subordinated debt

       —          —     
       

 

 

   

 

 

 
  

Tier 3 capital included as qualifying capital

     (D     —          —     
       

 

 

   

 

 

 

Deductions for total

risk-based capital

  

Deductions for total risk-based capital

     (E     362.6        370.0   
       

 

 

   

 

 

 

Total risk-based capital

  

(A) + (C) + (D) – (E)

     (F     7,910.9        7,772.9   
       

 

 

   

 

 

 

Risk-weighted assets

  

Credit risk-weighted assets

     (G     46,997.1        45,165.4   
       

 

 

   

 

 

 
  

On-balance-sheet items

       38,958.0        37,683.9   
  

Off-balance-sheet items

       8,039.0        7,481.4   
       

 

 

   

 

 

 
  

Market risk equivalent assets [(I)/8%]

     (H     1,389.2        2,083.3   
  

(Reference) Market risk equivalent

     (I     111.1        166.6   
  

Operational risk equivalent assets [(K)/8%]

     (J     3,307.4        2,917.1   
  

(Reference) Operational risk equivalent

     (K     264.5        233.3   
  

Adjusted amount for credit risk-weighted assets

     (L     —          —     
  

Adjusted amount for operational risk equivalent

     (M     —          —     
       

 

 

   

 

 

 
  

Total [(G) + (H) + (J) + (L) + (M)]

     (N     51,693.8        50,165.9   
       

 

 

   

 

 

 

Consolidated capital adequacy ratio (BIS standard) = (F) / (N) X 100

       15.30     15.49
       

 

 

   

 

 

 

Tier 1 capital ratio = (A) / (N) X 100

       11.93     12.75
       

 

 

   

 

 

 

 

 

Notes:   
1.    The above figures are calculated based on the BIS standard applied on a consolidated basis under the “Standards for Determining the Status of Capital Adequacy in consideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (FSA Notice No. 20 of 2006 (the “Notice”)). For the figures as of March 31, 2011 and 2012, we did not apply the exception to the Notice (FSA Notice No. 79 of 2008).
2.    As it is not possible to break down Mizuho Financial Group’s common stock and preferred stock according to classes of stock, non-cumulative perpetual preferred stock is not stated separately from capital.

 

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    3.    In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young ShinNihon LLC, on the basis of “Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio” (Industry Committee Practical Guideline No. 30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on our consolidated financial statements. This consists of an examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of the capital adequacy ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor the internal controls related to the calculation of the capital adequacy ratio.
    4.    The amounts of net deferred tax assets as of March 31, 2011 and 2012 were ¥471.1 billion and ¥340.7 billion, respectively, and the maximum amounts of deferred tax assets that can be recorded without diminishing the amount of Tier 1 capital for the purpose of calculating capital adequacy ratio as of March 31, 2011 and 2012 were ¥1,234.0 billion and ¥1,279.5 billion, respectively.
    5.    The “adjusted amount for credit risk-weighted assets” is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under the foundation internal ratings-based approach multiplied by the rate prescribed in the Notice over the required capital under the advanced internal ratings-based approach; and the “adjusted amount for operational risk equivalent” is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under the basic indicator approach multiplied by the rate prescribed in the Notice over the required capital under the advanced measurement approach.

 

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Table of Contents

n Risk-based capital

(3) Summary of types of capital instruments

(A) Summary of preferred securities

We have included each of the following preferred securities issued by our overseas special purpose companies as Tier 1 capital for the purposes of our consolidated capital adequacy ratios. The preferred securities issued by Mizuho Preferred Capital (Cayman) 1 Limited were redeemed in full on June 29, 2012.

Preferred securities issued by SPCs of Mizuho Financial Group

 

Issuer    Mizuho Preferred Capital (Cayman) 1 Limited (as “MPC1,” and the preferred securities described below are referred to as the “MPC1 Preferred Securities.”)    Mizuho Capital Investment (USD) 1 Limited (“MCI (USD) 1,” and the preferred securities described below are referred to as “MCI (USD) 1 Preferred Securities.”)
Type of securities    Non-cumulative perpetual preferred securities    Non-cumulative perpetual preferred securities
Mandatory redemption date    None    None
Optional redemption    Optionally redeemable on each dividend payment date falling in or after June 2012 (subject to prior approval from regulatory authorities)    Starting from the dividend payment date falling in June 2016, optionally redeemable on each dividend payment date in five-year intervals (subject to prior approval from regulatory authorities)
Dividends    Floating dividend rate (No dividend rate step-up. As stated in “Dividend suspension events” below, dividend payments that are suspended are non-cumulative.)    Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2016. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.)
Dividend payment date    Last business day of June in each year    June 30th and December 30th of each year
Total amount issued    ¥171.0 billion    US$600 million
Issue date    February 14, 2002    March 13, 2006
Dividend suspension events   

If any of the following events arise, dividend payments are suspended on a non-cumulative basis:

(1)    when Mizuho Financial Group issues to MPC 1 a Loss Absorption Certificate(1);

(2)    when dividends on Mizuho Financial Group’s Preferred Stock(2) are suspended;

(3)    when Mizuho Financial Group issues to MPC 1 a Distributable Amounts Limitation Certificate(4) stating that there are no Available Distributable Amounts(3); and

(4)    when the dividend payment date is not a Mandatory Dividend Payment Date(5), and Mizuho Financial Group issues to MPC 1 a dividend instruction instructing it not to pay any dividends on such dividend payment date.

  

(Mandatory dividend suspension or reduction event)

(1)    When a Liquidation Event(7), Reorganization Event(7), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;

(2)    when Mizuho Financial Group’s Available Distributable Amounts(11) is insufficient, or dividends on its preferred stock(12) are suspended or reduced; (Optional dividend suspension or reduction event)

(3)    when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (USD) 1 Preferred Securities, and Mizuho Financial Group issues a dividend suspension notice to MCI (USD) 1; and

(4)    when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (USD) 1.

Mandatory dividend event    If Mizuho Financial Group pays any dividends on its common stock with respect to a fiscal year, full dividends must be paid on Parity Preferred securities(6) in June of the calendar year in which such fiscal year ends. However, it is subject to the following conditions: (1) no Loss Absorption Certificate(1) has been issued; (2) no preferred stock dividend limitation has arisen with respect thereto (partial dividend payments are made to the extent applicable); and (3) no Distributable Amounts Limitation Certificate(4) has been issued with respect thereto (partial dividends are paid to the extent applicable).    If Mizuho Financial Group pays any dividends on its common stock with respect to a fiscal year, dividend payments for the full amount of MCI (USD) 1 Preferred Securities must be made on the dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event.
Distributable amounts limitation    When Mizuho Financial Group issues a Distributable Amounts Limitation Certificate(4) to MPC1, dividends are limited to the Available Distributable Amounts(3).    Dividends for the MCI (USD) 1 Preferred Securities are paid to the extent of Mizuho Financial Group’s Available Distributable Amounts(11).
Dividend limitations    When dividends on Mizuho Financial Group’s Preferred Stock(2) are reduced, dividends on Parity Preferred Securities(6) are also reduced by an equal percentage.    When dividends on Mizuho Financial Group’s Preferred Stock(12) are reduced, dividends on MCI (USD) 1 Preferred Securities are also reduced by an equal percentage.
Claims on residual assets    Same priority as Mizuho Financial Group’s Preferred Stock(2)    Same priority as Mizuho Financial Group’s Preferred Stock(12)

 

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Issuer   Mizuho Capital Investment (JPY) 1 Limited (“MCI (JPY) 1,” and the preferred securities described below are referred to as “MCI (JPY) 1 Preferred Securities.”)   Mizuho Capital Investment (JPY) 2 Limited (“MCI (JPY) 2,” and the preferred securities described below are referred to as “MCI (JPY) 2 Preferred Securities.”)   Mizuho Capital Investment (JPY) 3 Limited (“MCI (JPY) 3,” and the preferred securities described below (Series A and Series B) are collectively referred to as “MCI (JPY) 3 Preferred Securities.”)
Type of securities   Non-cumulative perpetual preferred securities   Non-cumulative perpetual preferred securities   Non-cumulative perpetual preferred securities
Mandatory redemption date   None   None   None
Optional redemption   Starting from the dividend payment date falling in June 2016, optionally redeemable on each dividend payment date in five -year intervals (subject to prior approval from regulatory authorities)   Starting from the dividend payment date falling in June 2018, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)   Starting from the dividend payment date falling in June 2019, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)
Dividends  

Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2016. No dividend rate step-up.

Dividend payments that are suspended are non-cumulative.)

 

Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2018. Dividend rate step-up is applied.

Dividend payments that are suspended are non-cumulative.)

 

Series A

Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2019. Dividend rate step-up is applied.

Dividend payments that are suspended are non-cumulative.)

Series B

Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2019. No dividend rate step-up.

Dividend payments that are suspended are non-cumulative.)

Dividend payment date   June 30th and December 30th of each year   June 30th and December 30th of each year   June 30th and December 30th of each year
Total amount issued   ¥400 billion   ¥274.5 billion  

Series A ¥249.5 billion

Series B ¥53.5 billion

Issue date   January 12, 2007   January 11, 2008   July 11, 2008
Dividend suspension events  

(Mandatory dividend suspension or reduction event)

(1) When a Liquidation
Event
(7), Reorganization
Event
(8), Insolvency
Event
(9) or Governmental
Action
(10) has occurred to Mizuho Financial Group;

 

(Mandatory dividend suspension or reduction event)

(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;

 

(Mandatory dividend suspension or reduction event)

(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;

 

(2) when Mizuho Financial Group’s Available Distributable Amounts(13) is insufficient, or dividends on its preferred stock(12) are suspended or reduced;

(Optional dividend suspension or reduction event)

 

(2) when Mizuho Financial Group’s Available Distributable Amounts(14) is insufficient, or dividends on its preferred stock(12) are suspended or reduced;

(Optional dividend suspension or reduction event)

 

(2) when Mizuho Financial Group’s Available Distributable Amounts(15) is insufficient, or dividends on its preferred stock(12) are suspended or reduced;

(Optional dividend suspension or reduction event)

 

(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 1 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 1; and

 

(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 2 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 2; and

 

(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 3 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 3; and

 

(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 1

 

(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 2

 

(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 3

 

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Mandatory dividend event  

If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 1 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that

no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event.

 

If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 2 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that

no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event.

 

If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 3 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that

no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event.

Distributable amounts limitation   Dividends for the MCI (JPY) 1 Preferred Securities are paid to the extent of Mizuho Financial Group’s Available Distributable Amounts(13).   Dividends for the MCI (JPY) 2 Preferred Securities are paid to the extent of Mizuho Financial Group’s Available Distributable Amounts(14).   Dividends for the MCI (JPY) 3 Preferred Securities are paid to the extent of Mizuho Financial Group’s Available Distributable Amounts(15).
Dividend limitations   When dividends on Mizuho Financial Group’s Preferred Stock(12) are reduced, dividends on MCI (JPY) 1 Preferred Securities are also reduced by an equal percentage.   When dividends on Mizuho Financial Group’s Preferred Stock(12) are reduced, dividends on MCI (JPY) 2 Preferred Securities are also reduced by an equal percentage.   When dividends on Mizuho Financial Group’s Preferred Stock(12) are reduced, dividends on MCI (JPY) 3 Preferred Securities are also reduced by an equal percentage.
Claims for residual assets   Same priority as Mizuho Financial Group’s Preferred Stock(12)   Same priority as Mizuho Financial Group’s Preferred Stock(12)   Same priority as Mizuho Financial Group’s Preferred Stock(12)

 

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Issuer   Mizuho Capital Investment (JPY) 4 Limited (“MCI (JPY) 4,” and the preferred securities described below are referred to as “MCI (JPY) 4 Preferred Securities.”)   Mizuho Capital Investment (USD) 2 Limited (“MCI (USD) 2,” and the preferred securities described below are referred to as “MCI (USD) 2 Preferred Securities.”)   Mizuho Capital Investment (JPY) 5 Limited (“MCI (JPY) 5,” and the preferred securities described below (Series A, Series B and Series C) are collectively referred to as “MCI (JPY) 5 Preferred Securities.”)
Type of securities   Non-cumulative perpetual preferred securities   Non-cumulative perpetual preferred securities   Non-cumulative perpetual preferred securities
Mandatory redemption date   None   None   None
Optional redemption   Starting from the dividend payment date falling in June 2015, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)   Starting from the dividend payment date falling in June 2014, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)  

Series A

Starting from the dividend payment date falling in June 2014, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)

Series B

Starting from the dividend payment date falling in June 2015, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)

Series C

Starting from the dividend payment date falling in June 2015, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)

Dividends   Fixed dividend rate for the first seven years (although a floating dividend rate is applied with respect to dividend payment dates after June 2015. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.)   Fixed dividend rate for the first five years (although a floating dividend rate is applied with respect to dividend payment dates after June 2014. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.)  

Series A

Fixed dividend rate for the first five years (although a floating dividend rate is applied with respect to dividend payment dates after June 2014. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.)

Series B

Fixed dividend rate for the first six years (although a floating dividend rate is applied with respect to dividend payment dates after June 2015. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.)

Series C

Fixed dividend rate for the first six years (although a floating dividend rate is applied with respect to dividend payment dates after June 2015. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.)

Dividend payment date   March 31, 2009 and June 30th and December 30th of each year   June 30th and December 30th of each year   June 30th and December 30th of each year
Total amount issued   ¥355 billion   $850 million  

Series A ¥139.5 billion

Series B ¥72.5 billion

Series C ¥25.0 billion

 

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Issue date   December 29, 2008   February 27, 2009  

Series A June 30, 2009

Series B August 31, 2009

Series C September 29, 2009

Dividend suspension events  

(Mandatory dividend suspension or reduction event)

(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;

(2) when Mizuho Financial Group’s Available Distributable Amounts(16) is insufficient, or dividends on its preferred stock(12) are suspended or reduced;

(Optional dividend suspension or reduction event)

(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 4 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 4; and

 

(Mandatory dividend suspension or reduction event)

(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;

(2) when Mizuho Financial Group’s Available Distributable Amounts(17) is insufficient, or dividends on its preferred stock(12) are suspended or reduced;

(Optional dividend suspension or reduction event)

(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (USD) 2 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (USD) 2; and

 

(Mandatory dividend suspension or reduction event)

(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;

(2) when Mizuho Financial Group’s Available Distributable Amounts(18) is insufficient, or dividends on its preferred stock(12) are suspended or reduced;

(Optional dividend suspension or reduction event)

(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 5 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 5; and

 

(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 4

 

(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (USD) 2

 

(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 5

Mandatory dividend event  

If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 4 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that

no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event.

 

If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (USD) 2 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that

no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event.

 

If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 5 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that

no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event.

Distributable amounts limitation   Dividends for the MCI (JPY) 4 Preferred Securities are paid to the extent of Mizuho Financial Group’s Available Distributable Amounts(16).   Dividends for the MCI (USD) 2 Preferred Securities are paid to the extent of Mizuho Financial Group’s Available Distributable Amounts(17).   Dividends for the MCI (JPY) 5 Preferred Securities are paid to the extent of Mizuho Financial Group’s Available Distributable Amounts(18).
Dividend limitations   When dividends on Mizuho Financial Group’s Preferred Stock(12) are reduced, dividends on MCI (JPY) 4 Preferred Securities are also reduced by an equal percentage.   When dividends on Mizuho Financial Group’s Preferred Stock(12) are reduced, dividends on MCI (USD) 2 Preferred Securities are also reduced by an equal percentage.   When dividends on Mizuho Financial Group’s Preferred Stock(12) are reduced, dividends on MCI (JPY) 5 Preferred Securities are also reduced by an equal percentage.
Claims for residual assets   Same priority as Mizuho Financial Group’s Preferred Stock(12)   Same priority as Mizuho Financial Group’s Preferred Stock(12)   Same priority as Mizuho Financial Group’s Preferred Stock(12)

 

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Notes:   
(1)   

Loss Absorption Certificate

 

   Refers to a certificate that Mizuho Financial Group delivers to the issuer (in case of the loss absorption event set forth in clause (iv) below, the issuance thereof is at our discretion) upon any of the following events with respect to Mizuho Financial Group: (i) liquidation event that shall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho Financial Group or a competent court in Japan shall have (a) adjudicated Mizuho Financial Group to be subject to bankruptcy proceedings or (b) approved a preparation of a reorganization plan for abolishment of all business of Mizuho Financial Group; (ii) reorganization event that shall be deemed to occur if a competent court in Japan shall have adjudicated (a) the commencement of a corporate reorganization proceeding of Mizuho Financial Group under the Corporate Reorganization Law or (b) the commencement of a civil rehabilitation proceeding of Mizuho Financial Group under the Civil Rehabilitation Law; (iii) governmental action that shall be deemed to occur if the government authority in Japan (a) publicly declares Mizuho Financial Group is not able to pay its debts as they become due, (b) publicly declares Mizuho Financial Group’s liabilities exceed its assets, (c) publicly declares Mizuho Financial Group to be under public management or (d) issues an order that Mizuho Financial Group be transferred to a third party; (iv) inadequate ratio event that shall be deemed to occur if capital adequacy ratio or Tier 1 capital ratio fails to meet the minimum requirement or would fall short as a result of a dividend payment on the relevant preferred securities; (v) default event that shall be deemed to occur if Mizuho Financial Group is not able to pay its debts as they become due or would not be able to do so as a result of a dividend payment on the relevant preferred securities; or (vi) insolvency event shall be deemed to occur if the liabilities of Mizuho Financial Group exceeds its assets or would exceed its assets as a result of a dividend payment on the relevant preferred securities.
(2)    Preferred Stock
   Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking most senior compared to other preferred stock of Mizuho Financial Group as to dividend payments. It includes such preferred stocks that are issued in the future.
(3)    Available Distributable Amounts
   Refers to the maximum amount available for dividends (“Distributable Amounts”) calculated based on the immediately preceding fiscal year’s financial statements, less the aggregate amount of dividends paid previously during the current fiscal year and scheduled to be paid thereafter in respect of such fiscal year in respect of any Preferred Stock (provided that each interim dividend payment on Preferred Stock to be paid during such current Fiscal Year shall be excluded in calculating Available Distributable Amounts). Notwithstanding the foregoing, if there are securities issued by a company other than Mizuho Financial Group of which the rights to dividends and the rights at the time of liquidation, etc., are determined by reference to the financial condition and results of operation of Mizuho Financial Group and which rank, in relation to MPC1, equal in point of subordination as the Parity Preferred Securities(6) (“Parallel Preferred Securities”), the Available Distributable Amounts are adjusted as follows:
  

Available Distributable Amounts after the adjustment = Available Distributable Amounts x (Total of full dividend payment amount for Parity Preferred Securities(6) in such fiscal year) / (Total of full dividend payment amount for Parity Preferred Securities(6) in such fiscal year + Total amount of full dividend payment amount for Parallel Securities in such fiscal year)

(4)   

DistributableAmounts Limitation Certificate

   Refers to a certificate issued by Mizuho Financial Group on or before the annual general meeting of shareholders to issuers if Available Distributable Amounts falls short of total dividends to be paid on the dividend payment date, which shall set forth the Available Distributable Amounts of such fiscal year.
(5)   

MandatoryDividend Payment Date

   Refers to a dividend payment date in June of a calendar year when a fiscal year of Mizuho Financial Group ends with respect to which it paid dividends on its common stock.
(6)   

ParityPreferred Securities

   Refers to the collective designation for preferred securities and MPC1 Preferred Securities issued by MPC1 which are perpetual and the dividend payment dates and the use of proceeds are the same as that of the relevant MPC1 Preferred Securities. (As to MPC1, for example, Parity Preferred Securities are the collective designation of MPC1 Preferred Securities as well as other preferred securities that satisfy the above conditions if newly issued in the future.)
(7)   

LiquidationEvent

   Shall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho Financial Group or a competent court in Japan shall have (i) adjudicated Mizuho Financial Group to be subject to bankruptcy proceedings or (ii) approved a preparation of a reorganization plan for abolishment of all business of Mizuho Financial Group.
(8)   

ReorganizationEvent

   Shall be deemed to occur if a competent court in Japan shall have adjudicated (i) the commencement of a corporate reorganization proceeding of Mizuho Financial Group under the Corporate Reorganization Law or (ii) the commencement of a civil rehabilitation proceeding of Mizuho Financial Group under the Civil Rehabilitation Law.
(9)   

InsolvencyEvent

   Shall be deemed to occur if (i) Mizuho Financial Group is not able to pay its debts as they become due or would not be able to do so as a result of a dividend payment on the relevant preferred securities, or (ii) if the liabilities of Mizuho Financial Group exceeds its assets or would exceed its assets as a result of a dividend payment on the relevant preferred securities.
(10)   

GovernmentalAction

   Shall be deemed to occur if the government authority in Japan (i) publicly declares Mizuho Financial Group is not able to pay its debts as they become due, (ii) publicly declares Mizuho Financial Group’s liabilities exceed its assets, (iii) publicly declares Mizuho Financial Group to be under public management or (iv) issues an order that Mizuho Financial Group be transferred to a third party.

 

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(11)   

AvailableDistributable Amounts for MCI (USD) 1 Preferred Securities

  

(i)     Amount available in June

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (USD) 1 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (USD) 1 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (USD) 1 Preferred Securities.
  

(ii)    Amount available in December

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (USD) 1 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date falling in June, pro-rated between full dividends on MCI (USD) 1 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (USD) 1 Preferred Securities falling in June up to the dividend payment date falling in December.
(12)   

PreferredStocks

   Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking most senior compared to other preferred stock of Mizuho Financial Group as to dividend payments and claims to residual assets.
(13)   

AvailableDistributable Amounts for the MCI (JPY) 1 Preferred Securities

  

(i)     Amount available in June

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 1 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 1 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 1 Preferred Securities.
  

(ii)    Amount available in December

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 1 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 1 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 1 Preferred Securities falling in June up to the dividend payment date falling in December.
(14)   

AvailableDistributable Amounts for the MCI (JPY) 2 Preferred Securities

  

(i)     Amount available in June

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 2 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 2 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 2 Preferred Securities.
  

(ii)    Amount available in December

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 2 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 2 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 2 Preferred Securities falling in June up to the dividend payment date falling in December.
(15)   

AvailableDistributable Amounts for the MCI (JPY) 3 Preferred Securities

  

(i)     Amount available in June

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 3 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 3 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 3 Preferred Securities.
  

(ii)    Amount available in December (except for the amount available in December 2008)

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 3 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 3 Preferred Securities falling in June up to the dividend payment date falling in December.
  

(iii)  Amount available in December 2008

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments) and (B) the dividends on Equivalent Securities paid or declared to be paid from April 1, 2008 to June 30, 2008, pro-rated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment date falling in December 2008 and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after June 30, 2008 up to the dividend payment date falling in December 2008.

 

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(16)   

AvailableDistributable Amounts for the MCI (JPY) 4 Preferred Securities

  

(i)     Amount available in March 2009

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the fiscal year ended March 31, 2008, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments) and (B) the dividends on Equivalent Securities paid or declared to be paid from April 1, 2008 to December 30, 2008, pro-rated between the full dividend amount on MCI (JPY) 4 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 4 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared to be paid from the day after December 30, 2008 up to the dividend payment date falling in March 2009.
  

(ii)    Amount available in June

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 4 Preferred Securities and the full dividend amount on Equivalent Securities to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 4 Preferred Securities.
  

(iii)  Amount available in December

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 4 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 4 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 4 Preferred Securities falling in June up to the dividend payment date falling in December.
(17)   

AvailableDistributable Amounts for the MCI (USD) 2 Preferred Securities

  

(i)     Amount available in June

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (USD) 2 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (USD) 2 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (USD) 2 Preferred Securities.
  

(ii)    Amount available in December

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (USD) 2 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (USD) 2 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (USD) 2 Preferred Securities falling in June up to the dividend payment date falling in December.
(18)   

AvailableDistributable Amounts for the MCI (JPY) 5 Preferred Securities

  

(i)     Amount available in June

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 5 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 5 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 5 Preferred Securities.
  

(ii)    Amount available in December (except for the amount available in December 2009)

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 5 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 5 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 5 Preferred Securities falling in June up to the dividend payment date falling in December.
  

(iii)  Amount available in December 2009

   Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the fiscal year ended March 31, 2009, less (A) the amount of dividend payments on Preferred Stock(12) (excluding interim dividend payments) and (B) the dividends on Equivalent Securities paid or declared to be paid from April 1, 2009 to June 30, 2009, pro-rated between full dividends on MCI (JPY) 5 Preferred Securities for the dividend payment date falling in December 2009 and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after June 30, 2009 up to the dividend payment date falling in December 2009.

 

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Table of Contents

(B) Summary of preferred stock

The preferred stocks that have been issued as stated below are included in Tier 1 capital of Mizuho Financial Group’s consolidated capital adequacy ratio.

 

      

Eleventh Series Class XI

Preferred Stock

  

Thirteenth Series Class XIII

Preferred Stock

Amount outstanding as of fiscal year end (excluding treasury stock)      ¥373.6782 billion    ¥36.69 billion

Preferred dividend payment

     An annual dividend payment of ¥20 per preferred share to holders of preferred stock in priority to dividend payments to holders of common stock.    An annual dividend payment of ¥30 per preferred share to holders of preferred stock in priority to dividend payments to holders of common stock.

Non-cumulative clause

     In the event that all or part of the preferred dividends are not paid during a given fiscal year, the shortfall is not accumulated in or beyond the following fiscal year.    In the event that all or part of the preferred dividends are not paid during a given fiscal year, the shortfall is not accumulated in or beyond the following fiscal year.

Non-participation clause

     No distribution of surplus exceeding the preferred dividend payment is made to holders of preferred stock.    No distribution of surplus exceeding the preferred dividend payment is made to holders of preferred stock.

Preferred interim dividend payment

     If an interim dividend payment is made, ¥10 per share is to be paid in priority to holders of common stock.    If an interim dividend payment is made, ¥15 per share is to be paid in priority to holders of common stock.

Distribution of residual assets

     ¥1,000 per preferred share is to be paid in priority to holders of common stock and no other distribution of residual assets is to be made.    ¥1,000 per preferred share is to be paid in priority to holders of common stock and no other distribution of residual assets is to be made.

 

Conversion(1)

request

  

 

Conversion period

    

 

From July 1, 2008 to June 30, 2016.

  

 

n.a.

  

 

Conversion price

    

 

¥282.90 (As of July 1, 2012)

  

 

n.a.

  

 

Reset of

conversion price

    

 

On July 1 of each year from July 1, 2009 to July 1, 2015 (hereafter, “Conversion Price Reset Date”), in the event the market price of common stock on such date is below the effective conversion price on the day before the relevant Conversion Price Reset Date, the reset price is to be adjusted as of the relevant Conversion Price Reset Date to such market price (minimum: ¥282.90), where market price is defined as the average of the daily closing prices of common stock as reported by the Tokyo Stock Exchange for the 30 consecutive trading days commencing on the 45th trading day prior to the Conversion Price Reset Date.

  

 

n.a.

  

 

Adjustment of

the conversion price

    

 

Adjustments to the conversion price are to be made upon the issuance or disposition of common stock at a price lower than the market price and in other specified circumstances.

  

 

n.a.

  

 

Number of

shares of common stock to be provided upon conversion

    

 

The number obtained by dividing (i) the total issue price of the preferred stock submitted in connection with the conversion request by the holders of such preferred stock by (ii) the conversion price.

  

 

n.a.

 

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Mandatory conversion of preferred stock

  

 

Mizuho Financial Group shall acquire on July 1, 2016 any preferred stock in respect of which a request for conversion has not been made by June 30, 2016 and deliver common stock to the holder of such preferred stock. The number of shares of common stock to be delivered is obtained by dividing ¥1,000 by the average of the daily closing prices of common stock as reported by the Tokyo Stock Exchange for the 30 consecutive trading days commencing on the 45th trading day prior to July 1, 2016 (minimum: ¥282.90).

  

 

n.a.

Conversion clause    n.a.   

On or after April 1, 2013, as determined by a resolution of the general meeting of shareholders, all or a portion of the preferred stock can be repurchased at the conversion price set forth below.

The conversion price per share will be the sum of ¥1,000 and the preferred dividend pro-rated for the number of days from the first day of the fiscal year during which the conversion date falls; provided, however, that if preferred interim dividends are paid, the conversion price per share is to be reduced by the amount of such interim dividend.

Voting rights    The holders of preferred stock shall not have voting rights at a general meeting of shareholders; provided, however, that the holders of preferred stock may have voting rights from the date of a general meeting of shareholders if a proposal for the payment of preferred dividends is not submitted to such general meeting of shareholders, or immediately after the closing of a general meeting of shareholders if a proposal on the preferred dividends is rejected at such general meeting of shareholders, until, in either case, such time as a resolution of a general meeting of shareholders for the payment of preferred dividends is approved.    The holders of preferred stock shall not have voting rights at a general meeting of shareholders; provided, however, that the holders of preferred stock may have voting rights from the date of a general meeting of shareholders if a proposal for the payment of preferred dividends is not submitted to such general meeting of shareholders, or immediately after the closing of a general meeting of shareholders if a proposal on the preferred dividends is rejected at such general meeting of shareholders, until, in either case, such time as a resolution of a general meeting of shareholders for the payment of preferred dividends is approved.
Preferential status    All classes of preferred stock rank pari passu with respect to preferred dividends, preferred interim dividends and residual assets.    All classes of preferred stock rank pari passu with respect to preferred dividends, preferred interim dividends and residual assets.

 

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(C) Summary of debt capital instruments

1. Summary

The following debt capital instruments are included in Tier 2 capital:

 

   

Perpetual subordinated debt;

 

   

Dated subordinated debt; and

 

   

Dated preferred stock.

Of the above, perpetual subordinated debt and dated subordinated debt are in the form of subordinated bonds with subordination clause (corporate bonds with subordination clause) or subordinated loans (borrowing by means of loan agreement with subordination clause) (collectively, “Subordinated Bonds, Etc.”). Specifically, such debt capital is raised as follows:

 

(1) Subordinated bonds offered to investors in Japan and abroad;

 

(2) Subordinated bonds using a Euro MTN program, etc.; and

 

(3) Subordinated loans.

The Subordinated Bonds, Etc., are issued by or loaned to Mizuho Financial Group, its banking subsidiaries or overseas consolidated SPC subsidiaries.

In each case, the above instruments are based on terms that are in accordance with relevant public notices and supervisory guidelines of the Financial Services Agency so as to ensure eligibility as Tier 2 capital, and the following is the summary of such terms as of July 1, 2012.

At present, we have no dated preferred stock outstanding.

2. Subordination clause

Subordinated Bonds, Etc., include subordination clauses pursuant to which, in the event that certain grounds for subordination arise, payments of principal and interest on the relevant Subordinated Bonds, Etc., are ranked lower in priority compared to the execution of obligations relating to more senior claims which are obligations other than those that rank pari passu or junior to such Subordinated Bonds, Etc. (concerning the rights of holders of Subordinated Bonds, Etc., that seek payment, the order of priority in receiving payments in bankruptcy proceedings is junior to subordinated bankrupt claims as set forth in the Bankruptcy Law). As a result, senior creditors have priority over holders of Subordinated Bonds, Etc., in the event of bankruptcy, corporate reorganization and civil rehabilitation proceedings, etc.

3. Perpetual subordinated debt

Perpetual subordinated debt is a debt capital instrument with all of the following features:

 

(1) Unsecured, fully paid and subordinated to other obligations;

 

(2) Not redeemable or repayable, except when it is optional and the debtor anticipates that a sufficient capital adequacy ratio will be maintained after such redemption or repayment or in connection with the raising of capital in an amount equal to or in excess of the amount to be redeemed or repaid;

 

(3) Applicable to absorb losses while the obligor continues to do business; and

 

(4) Contains a provision that allows a deferred payment of interest.

4. Dated subordinated debt

Dated subordinated debt differs from perpetual subordinated debt in that it has a fixed redemption or repayment term of more than five years.

In the case of both perpetual subordinated debt and dated subordinated debt, if a step-up in interest is provided for, the application of such step-up must be made at a time five years or more from the issue or loan date so as to prevent the interest to be paid after step-up from being excessive, and the amount of step-up must be within the limit that the Financial Services Agency determines in supervisory guidelines.

(4) Summary of approach to assessing capital adequacy

In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct the following assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring structure.

Maintaining a sufficient BIS capital adequacy ratio and Tier 1 capital ratio

We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether our risk-based capital is adequate in qualitative as well as quantitative terms, in light of our business plans and strategic targets to match the increase in risk-weighted assets acquired for growth, in addition to maintaining risk-based capital that exceeds the minimum requirements (8% under BIS standards, 4% under domestic standards).

Balancing risk and capital

On the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overall risk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating capital that corresponds to the amount of risk to the business groups and units of our banking subsidiaries, etc., within the bounds of our capital, and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. When making these assessments, we examine whether an appropriate return on risk is maintained in addition to considering the effects that interest rate risk related to our banking book, credit concentration risk and stress tests have on our capital.

 

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(5) Required capital by portfolio classification

 

     (Billions of yen)  
     As of March 31, 2011      As of March 31, 2012  
     EAD      Required capital      EAD      Required capital  

Credit risk

     168,629.5         5,084.9         171,425.4         4,737.4   
  

 

 

    

 

 

    

 

 

    

 

 

 

Internal ratings-based approach

     160,055.2         4,834.2         163,265.5         4,486.1   

Corporate (except specialized lending)

     49,049.3         2,690.6         51,054.8         2,523.9   

Corporate (specialized lending)

     2,615.8         326.0         2,378.0         239.5   

Sovereign

     74,995.2         53.8         77,549.7         62.9   

Bank

     5,073.8         134.4         5,525.0         123.2   

Retail

     13,885.2         665.1         13,652.5         623.7   

Residential mortgage

     10,774.8         447.5         10,529.9         418.2   

Qualifying revolving loan

     350.4         33.3         346.3         31.0   

Other retail

     2,759.9         184.2         2,776.2         174.4   

Equities

     3,530.3         375.5         3,357.6         353.0   

PD/LGD approach

     1,037.1         109.9         964.4         97.7   

Market-based approach (simple risk weight method)

     285.3         78.3         274.2         75.6   

Market-based approach (internal models approach)

     —           —           —           —     

Transitional measure applied

     2,207.9         187.2         2,118.8         179.6   

Regarded-method exposure

     1,035.1         255.5         1,261.8         270.5   

Purchase receivables

     1,929.8         68.7         1,834.9         54.2   

Securitizations

     4,422.1         89.6         3,818.1         74.0   

Others

     3,518.1         174.7         2,832.6         160.8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Standardized approach

     8,574.3         250.6         8,159.8         251.2   

Sovereign

     4,664.3         3.3         4,273.0         4.2   

Bank

     1,250.4         24.5         1,159.0         24.1   

Corporate

     2,038.9         157.5         2,064.2         164.5   

Residential mortgage

     0.0         0.0         —           —     

Securitizations

     39.4         30.1         37.0         24.4   

Others

     581.1         35.1         626.5         33.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Market risk

     n.a.         111.1         n.a.         166.6   
  

 

 

    

 

 

    

 

 

    

 

 

 

Standardized approach

     n.a.         84.5         n.a.         68.4   

Interest rate risk

     n.a.         49.8         n.a.         38.5   

Equities risk

     n.a.         26.1         n.a.         22.2   

Foreign exchange risk

     n.a.         4.3         n.a.         4.2   

Commodities risk

     n.a.         4.2         n.a.         3.3   

Option transactions

     n.a.         —           n.a.         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Internal models approach

     n.a.         26.6         n.a.         98.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operational risk

     n.a.         264.5         n.a.         233.3   
  

 

 

    

 

 

    

 

 

    

 

 

 

Advanced measurement approach

     n.a.         218.5         n.a.         192.5   

Basic indicator approach

     n.a.         46.0         n.a.         40.8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total required capital (consolidated)

     n.a.         4,135.5         n.a.         4,013.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Notes:

  

1.

   EAD: Exposure at default.

2.

   PD: Probability of default.

3.

   LGD: Loss given default.

4.

   Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and (iii) deductions from capital. For market risk, the market risk equivalent amount. For operational risk, the operational risk equivalent amount.

5.

   Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.

6.

   The major exposures included in each portfolio classification of internal ratings-based approach are as follows:

 

Corporate (excluding specialized lending)    Credits to corporations and sole proprietors (excluding credits to retail customers)
Corporate (specialized lending)    Credits which limit interest and principal repayment sources to cash flow derived from specific real estate, chattel, businesses, etc, including real estate non-recourse loan, ship finance and project finance, etc.
Sovereign    Credits to central governments, central banks and local governmental entities
Bank    Credits to banks and securities companies, etc.
Retail    Housing loans (residential mortgage), credit card loans (qualifying revolving retail loan) and other individual consumer loans and loans to business enterprises with total credit amount of less than ¥100 million, etc. (other retail).
Equities   

Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)

 

* The transitional measure applies to those held from September 30, 2004 or earlier, and others are applied either the PD/LGD approach or the market-based approach.

Regarded-method exposure    Investment trusts and funds, etc.
Purchase receivables    Receivables purchased from third parties excluding securities (excluding securitizations)
Securitizations    Transactions in the form of “non-recourse” and having a “senior/subordinated structure,” etc. (excluding specialized lending).

 

    7.

   EAD calculated using the standardized approach for credit risk represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs.

 

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n Credit risk

(6) Credit risk management

Summary of credit risk management

See pages 58 to 59 for a summary of our credit risk management policies and procedures.

We apply the advanced internal ratings-based approach to calculate credit risk-weighted assets under Basel II. With regard to some business units or asset classes that are deemed to be immaterial for purposes of calculating credit risk-weighted assets, we apply the standardized approach.

We use our estimates of PD (probability of default) and LGD (loss given default) in calculating credit risk-weighted assets. In accordance with regulations, we estimate PD by using long-term averages of actual defaults, to which conservative adjustments are made, based on internal data, and make adjustments to LGD taking into account recessionary periods. We regularly perform verifications of PD and LGD through back testing and other methods. We also utilize these estimates for measuring credit risks for internal use, allocating risk capital and other purposes.

Status of portfolios to which the standardized approach is applied

Eligible external credit assessment institutions used for determining the risk weight for portfolios to which the standardized approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and Standard & Poor’s Ratings Services (S&P) overseas.

We apply a 100% risk weight for all of our corporate exposure.

Summary of our internal rating system

See pages 58 for a summary of our internal rating system and rating assignment procedures.

The following table sets forth information with respect to the definition of obligor ratings.

Obligor ratings

 

Obligor ratings

(major category)

         Definition of ratings         Classification
A1–A3               Obligors whose certainty of debt fulfillment is very high, hence their level of credit risk is excellent.       Investment grade zone
B1–B2               Obligors whose certainty of debt fulfillment poses no problems for the foreseeable future, hence their level of credit risk is sufficient.      
C1–C3               Obligors whose certainty of debt fulfillment and their level of credit risk pose no problems for the foreseeable future.      

Non-investment grade zone

D1–D3               Obligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future changes in business environment is low.      
  E1               Obligors who require close watching going forward because there are problems with their borrowing conditions, such as reduced or suspended interest payments, problems with fulfillment such as de facto postponements of principal or interest payments, or problems with their financial positions as a result of their poor or unstable business conditions.      
  E2              
     R           
  F1               Obligors who are not yet bankrupt but are in financial difficulties and are deemed to be very likely to go bankrupt in the future because they are finding it difficult to make progress in implementing their management improvement plans (including obligors who are receiving ongoing support from financial institutions).       Default

 

 

 

  G1               Obligors who have not yet gone legally or formally bankrupt but who are substantially bankrupt because they are in serious financial difficulties and are not deemed to be capable of restructuring.      
  H1               Obligors who have already gone bankrupt, from both a legal and/or formal perspective.      
* Including restructured loans and loans past due for three months or more

 

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(7) Credit risk exposure, etc.

We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.

The outstanding balance is based on exposure at default.

No significant difference exists between period-end credit risk position and the average credit risk position during the fiscal years ended March 31, 2011 and 2012.

Status of credit risk exposure

(A) Breakdown by geographical area

 

     (Billions of yen)  
     As of March 31, 2011  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Domestic

     80,450.9         36,914.8         2,146.5         10,636.2         130,148.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     13,971.5         5,354.8         2,112.5         3,010.2         24,449.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asia

     3,452.6         773.5         119.3         869.9         5,215.4   

Central and South America

     2,062.6         147.4         232.2         3.5         2,445.9   

North America

     4,602.1         3,168.3         637.1         1,721.0         10,128.7   

Eastern Europe

     48.8         —           0.0         1.5         50.4   

Western Europe

     2,706.2         1,122.5         1,040.9         255.8         5,125.6   

Other areas

     1,098.9         142.9         82.7         158.3         1,483.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     94,422.5         42,269.7         4,259.0         13,646.5         154,597.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         8,534.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     (Billions of yen)  
     As of March 31, 2012  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Domestic

     77,828.0         40,146.5         1,842.3         7,323.2         127,140.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     17,071.5         8,465.3         2,054.8         3,453.5         31,045.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asia

     4,363.0         996.8         148.4         981.9         6,490.2   

Central and South America

     2,258.9         144.2         201.5         8.8         2,613.7   

North America

     5,825.6         6,029.2         595.1         1,922.0         14,372.0   

Eastern Europe

     29.2         —           0.9         6.2         36.5   

Western Europe

     3,222.0         1,140.7         992.9         474.0         5,829.6   

Other areas

     1,372.5         154.2         115.7         60.3         1,702.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     94,899.5         48,611.9         3,897.1         10,776.7         158,185.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         8,122.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Notes:

 
1.   Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2.   Exposure to non-Japanese residents is included in “Overseas.”
3.   “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

 

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(B) Breakdown by industry

 

     (Billions of yen)  
     As of March 31, 2011  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Manufacturing

     13,031.1         2,228.1         617.2         225.4         16,102.0   

Construction

     1,426.7         198.3         22.1         4.9         1,652.1   

Real estate

     6,669.9         512.1         51.7         42.0         7,276.0   

Service industries

     3,784.0         989.9         157.8         82.2         5,014.0   

Wholesale and retail

     7,264.2         589.1         655.0         513.2         9,021.6   

Finance and insurance

     9,384.2         1,864.0         2,069.9         1,314.5         14,632.7   

Individuals

     12,135.1         —           0.2         14.0         12,149.4   

Other industries

     14,300.7         4,990.4         675.9         5,813.5         25,780.7   

Japanese Government; Bank of Japan

     26,426.1         30,897.5         8.8         5,636.4         62,968.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     94,422.5         42,269.7         4,259.0         13,646.5         154,597.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         8,534.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     (Billions of yen)  
     As of March 31, 2012  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Manufacturing

     13,808.8         2,080.9         537.5         249.9         16,677.2   

Construction

     1,374.8         188.3         18.6         4.1         1,585.8   

Real estate

     6,752.2         439.8         53.1         33.2         7,278.4   

Service industries

     3,575.2         2,136.7         123.5         60.5         5,896.1   

Wholesale and retail

     7,474.5         593.3         457.2         512.4         9,037.6   

Finance and insurance

     9,899.3         2,549.1         2,014.7         1,057.5         15,520.7   

Individuals

     11,907.2         —           0.1         14.3         11,921.8   

Other industries

     15,769.1         5,946.2         681.1         5,690.6         28,087.1   

Japanese Government; Bank of Japan

     24,338.1         34,677.4         11.0         3,153.9         62,180.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     94,899.5         48,611.9         3,897.1         10,776.7         158,185.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         8,122.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Notes:

  

1.

   Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.

2.

   “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

 

22


Table of Contents

(C) Breakdown by residual contractual maturity

 

     (Billions of yen)  
     As of March 31, 2011  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Less than one year

     29,640.8         15,622.7         489.5         1,928.9         47,682.0   

From one year to less than three years

     13,673.1         9,881.0         1,781.8         38.9         25,374.9   

From three years to less than five years

     9,339.6         7,815.5         1,033.2         27.0         18,215.4   

Five years or more

     26,685.1         5,387.3         864.7         0.0         32,937.2   

Other than above

     15,083.7         3,563.0         89.6         11,651.6         30,388.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     94,422.5         42,269.7         4,259.0         13,646.5         154,597.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         8,534.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     (Billions of yen)  
     As of March 31, 2012  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Less than one year

     29,665.1         13,917.9         536.9         1,897.0         46,017.1   

From one year to less than three years

     12,628.3         12,704.9         1,606.1         43.9         26,983.4   

From three years to less than five years

     11,347.2         11,449.5         937.4         27.8         23,762.1   

Five years or more

     28,158.3         7,156.6         746.9         1.8         36,063.7   

Other than above

     13,100.3         3,382.8         69.7         8,806.0         25,358.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     94,899.5         48,611.9         3,897.1         10,776.7         158,185.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         8,122.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Notes:

 

1.

  Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.

2.

  “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

 

23


Table of Contents

Status of exposure past due three months or more or in default

(D) Breakdown by geographical area

 

     (Billions of yen)  
     As of March 31, 2011  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Domestic

     1,561.1         28.8         79.2         75.3         1,744.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     185.5         1.9         8.2         20.8         216.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asia

     25.1         0.0         0.0         4.0         29.2   

Central and South America

     42.3         1.5         6.3         0.0         50.2   

North America

     23.6         0.4         0.0         14.7         38.8   

Eastern Europe

     8.7         —           —           0.0         8.7   

Western Europe

     58.3         —           1.8         1.7         61.8   

Other areas

     27.3         —           —           0.3         27.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,746.7         30.7         87.5         96.2         1,961.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         1.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     (Billions of yen)  
     As of March 31, 2012  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Domestic

     1,439.5         20.5         82.3         59.0         1,601.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     197.0         0.5         17.7         14.5         229.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asia

     41.7         0.0         0.1         3.9         45.8   

Central and South America

     59.0         0.0         9.5         0.0         68.7   

North America

     8.0         0.5         0.0         8.4         17.0   

Eastern Europe

     0.4         —           —           —           0.4   

Western Europe

     66.5         —           8.0         1.6         76.2   

Other areas

     21.2         —           —           0.4         21.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,636.5         21.1         100.1         73.6         1,831.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         1.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Notes:

  

1.

   Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.

2.

   Exposure to non-Japanese residents is included in “Overseas.”

3.

   “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

 

24


Table of Contents

(E) Breakdown by industry

 

     (Billions of yen)  
     As of March 31, 2011  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Manufacturing

     415.7         9.3         39.5         19.5         484.1   

Construction

     94.0         3.4         0.4         1.9         99.9   

Real estate

     291.1         5.2         0.2         4.5         301.1   

Service industries

     191.3         3.5         3.7         6.9         205.5   

Wholesale and retail

     266.8         2.4         34.9         35.9         340.1   

Finance and insurance

     24.5         1.8         0.1         17.3         43.9   

Individuals

     264.5         —           0.0         1.6         266.2   

Other industries

     198.4         4.9         8.4         8.2         220.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,746.7         30.7         87.5         96.2         1,961.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         1.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     (Billions of yen)  
     As of March 31, 2012  
     Loans, commitments and
other non-OTC derivative
off-balance-sheet  exposures
     Securities      OTC
derivatives
     Others      Total  

Manufacturing

     386.7         8.0         35.1         16.6         446.6   

Construction

     53.7         2.7         0.2         1.1         58.0   

Real estate

     251.1         5.3         0.0         0.8         257.4   

Service industries

     205.6         3.4         5.6         6.2         221.0   

Wholesale and retail

     268.2         0.8         41.6         31.1         341.9   

Finance and insurance

     21.2         0.2         3.0         10.5         35.0   

Individuals

     236.2         —           0.0         1.3         237.5   

Other industries

     213.3         0.3         14.2         5.7         233.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,636.5         21.1         100.1         73.6         1,831.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         1.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Notes:

  

1.

   Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.

2.

   “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

 

25


Table of Contents

Status of reserves for possible losses on loans

The amounts associated with regarded-method exposure and securitization exposure are excluded.

(F) Fiscal year-end balances of reserves for possible losses on loans and changes during the fiscal year

  (after partial direct write-offs)

 

     (Billions of yen)  
     As of, or for
the fiscal year ended,
March 31, 2011
     As of, or for
the fiscal year ended,
March 31, 2012
 

General reserve for possible losses on loans

     

Beginning balance

     563.8         501.4   

Increase during the fiscal year

     501.4         447.5   

Decrease during the fiscal year

     563.8         501.4   

Ending balance

     501.4         447.5   
  

 

 

    

 

 

 

Specific reserve for possible losses on loans

     

Beginning balance

     317.7         259.1   

Increase during the fiscal year

     259.1         243.9   

Decrease during the fiscal year

     317.7         259.1   

Ending balance

     259.1         243.9   
  

 

 

    

 

 

 

Reserve for possible losses on loans to restructuring countries

     

Beginning balance

     0.1         0.0   

Increase during the fiscal year

     0.0         0.0   

Decrease during the fiscal year

     0.1         0.0   

Ending balance

     0.0         0.0   
  

 

 

    

 

 

 

Total

     

Beginning balance

     881.8         760.5   

Increase during the fiscal year

     760.5         691.5   

Decrease during the fiscal year

     881.8         760.5   

Ending balance

     760.5         691.5   
  

 

 

    

 

 

 

 

Note:

  General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and the amounts associated with regarded-method exposure and securitization exposure are not excluded.

(G) Specific reserve for possible losses on loans by geographical area and industry

 

     (Billions of yen)  
     As of March 31, 2010      As of March 31, 2011      Change  

Domestic

     274.8         220.0         (54.8

Manufacturing

     24.7         27.0         2.2   

Construction

     6.4         18.6         12.2   

Real estate

     30.2         19.7         (10.5

Service industries

     22.5         17.0         (5.5

Wholesale and retail

     29.0         39.0         10.0   

Finance and insurance

     9.4         0.5         (8.8

Individuals

     71.1         84.2         13.1   

Other industries

     81.2         13.5         (67.6
  

 

 

    

 

 

    

 

 

 

Overseas

     36.2         34.2         (1.9
  

 

 

    

 

 

    

 

 

 

Exempt portion

     6.7         4.8         (1.8
  

 

 

    

 

 

    

 

 

 

Total

     317.7         259.1         (58.6
  

 

 

    

 

 

    

 

 

 

 

     (Billions of yen)  
     As of March 31, 2011      As of March 31, 2012      Change  

Domestic

     220.0         187.4         (32.5

Manufacturing

     27.0         26.8         (0.1

Construction

     18.6         6.0         (12.5

Real estate

     19.7         20.3         0.6   

Service industries

     17.0         14.1         (2.9

Wholesale and retail

     39.0         39.7         0.6   

Finance and insurance

     0.5         0.8         0.2   

Individuals

     84.2         67.3         (16.9

Other industries

     13.5         12.0         (1.5
  

 

 

    

 

 

    

 

 

 

Overseas

     34.2         50.4         16.1   
  

 

 

    

 

 

    

 

 

 

Exempt portion

     4.8         6.0         1.2   
  

 

 

    

 

 

    

 

 

 

Total

     259.1         243.9         (15.1
  

 

 

    

 

 

    

 

 

 

 

Note:

  Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit risk-weighted assets.

 

26


Table of Contents

(H) Write-offs of loans by industry

 

     (Billions of yen)  
     For the fiscal year ended
March 31, 2011
     For the fiscal year ended
March 31, 2012
 

Manufacturing

     13.3         7.1   

Construction

     1.8         1.1   

Real estate

     8.6         1.7   

Service industries

     9.1         3.4   

Wholesale and retail

     19.8         7.5   

Finance and insurance

     0.4         0.0   

Individuals

     9.3         12.2   

Other industries

     8.8         5.0   
  

 

 

    

 

 

 

Exempt portion

     0.1         0.1   
  

 

 

    

 

 

 

Total

     71.6         38.5   
  

 

 

    

 

 

 

 

Notes:   
1.    The above table represents the breakdown of losses on write-offs of loans recorded in our consolidated statement of income after excluding the amounts associated with regarded-method exposure and securitization exposure.
2.    Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit risk-weighted assets.
3.    “Other industries” include overseas and non-Japanese resident portions.

Status of exposure to which the standardized approach is applied

(I) Exposure by risk weight category after applying credit risk mitigation

 

         (Billions of yen)  
         As of March 31, 2011  
                                      
Risk weight    On-balance
sheet
     Off-balance
sheet
     Total           With external
rating
 
0%        714.7         3,893.1         4,607.9            90.0   
10%        1.2         —           1.2            —     
20%        302.1         847.9         1,150.1            9.2   
35%        0.0         —           0.0            —     
50%        73.9         8.2         82.2            5.5   
100%        1,863.2         829.9         2,693.2            34.6   
150%        0.0         —           0.0            —     
350%        —           —           —              —     
625%        —           0.0         0.0            —     
937.5%        —           0.0         0.0            —     
1,250%        —           0.0         0.0            —     
    

 

 

    

 

 

    

 

 

       

 

 

 
Total        2,955.4         5,579.4         8,534.9            139.6   
    

 

 

    

 

 

    

 

 

       

 

 

 

 

         (Billions of yen)  
         As of March 31, 2012  
                                      
Risk weight    On-balance
sheet
     Off-balance
sheet
     Total           With external
rating
 
0%        452.3         3,702.0         4,154.3            139.1   
10%        67.4         0.1         67.5            —     
20%        288.5         796.1         1,084.7            8.7   
35%        —           —           —              —     
50%        4.4         1.0         5.4            2.0   
100%        2,144.8         665.7         2,810.5            42.8   
150%        0.1         —           0.1            —     
350%        —           —           —              —     
625%        —           0.0         0.0            —     
937.5%        —           —           —              —     
1,250%        —           0.0         0.0            —     
    

 

 

    

 

 

    

 

 

       

 

 

 
Total        2,957.8         5,165.0         8,122.8            192.8   
    

 

 

    

 

 

    

 

 

       

 

 

 

 

Notes:   
1.    The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs.
2.    Off-balance-sheet exposure shows credit equivalent amount.

 

27


Table of Contents

(J) Deduction from capital

 

     (Billions of yen)  
     As of March 31, 2011      As of March 31, 2012  

Deduction from capital

     27.9         21.9   

Status of exposure to which the internal ratings-based approach is applied

(K) Specialized lending exposure under supervisory slotting criteria by risk weight category

 

         (Billions of yen)  
Risk weight    As of March 31, 2011      As of March 31, 2012  
50%        158.0         —     
70%        757.2         13.1   
90%        235.9         —     
95%        4.1         84.0   
115%        80.2         15.5   
120%        15.4         2.4   
140%        —           41.9   
250%        402.5         236.7   
Default        102.4         7.1   
    

 

 

    

 

 

 
Total        1,756.1         400.9   
    

 

 

    

 

 

 

(L) Equity exposure under simple risk weight method of market-based approach by risk weight category

 

         (Billions of yen)  
Risk weight    As of March 31, 2011      As of March 31, 2012  
300%        217.7         204.9   
400%        67.6         69.2   
    

 

 

    

 

 

 
Total        285.3         274.2   
    

 

 

    

 

 

 

 

Note:   Of the equity exposure under the simple risk weight method, 300% risk weight is applied for listed equities and 400% for unlisted equities.

 

28


Table of Contents

(M) Portfolio by asset class and ratings segment (Corporate, etc.)

 

    (Billions of yen, except percentages)  
    As of March 31, 2011  
    PD
(EAD
weighted
average)

(%)
    LGD
(EAD
weighted
average)

(%)
    EL
default

(EAD
weighted
average)

(%)
    Risk
weight
(EAD
weighted
average)

(%)
    EAD
(Billions
of yen)
                    Amount of
undrawn
commitments
    Weighted
average of
credit
conversion
factor (%)
 
                               
                On-balance
sheet
    Off-balance
sheet
     

Corporate

    4.08        35.30        n.a.        46.38        51,448.3          38,017.0        13,431.3        9,671.1        75.10   

Investment grade zone

    0.11        36.51        n.a.        23.60        29,926.6          20,015.7        9,910.9        7,797.9        75.12   

Non-investment grade zone

    3.29        32.37        n.a.        80.84        20,116.7          16,723.2        3,393.5        1,843.8        75.03   

Default

    100.00        51.50        48.63        38.08        1,404.9          1,278.0        126.8        29.3        75.10   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Sovereign

    0.00        38.73        n.a.        0.88        75,302.4          54,017.2        21,285.2        114.2        76.70   

Investment grade zone

    0.00        38.73        n.a.        0.80        75,235.2          53,951.3        21,283.8        113.9        76.71   

Non-investment grade zone

    2.51        38.66        n.a.        96.54        67.1          65.7        1.4        0.2        75.00   

Default

    100.00        43.59        39.62        52.58        0.1          0.1        —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Bank

    0.79        37.55        n.a.        25.13        5,157.1          2,440.6        2,716.5        255.1        75.67   

Investment grade zone

    0.11        37.23        n.a.        21.31        4,749.2          2,263.8        2,485.4        197.6        75.87   

Non-investment grade zone

    1.77        36.83        n.a.        72.83        379.0          148.1        230.9        57.5        75.00   

Default

    100.00        98.49        96.44        27.19        28.7          28.6