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Mizuho Financial Group 6-K 2015

Documents found in this filing:

  1. 6-K
  2. Graphic
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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 2015

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

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, 2015

Mizuho Financial Group, Inc.

By:

 

/s/ Junichi Shinbo

Name:

  Junichi Shinbo

Title:

  Managing Executive Officer / Group CFO


Table of Contents

 

The following is an English translation of excerpt regarding Basel capital adequacy disclosure and relevant information released in our Japanese language disclosure material published in July 2015. 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

     3   

n     Scope of consolidation

     3   

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

  

n     Composition of capital

     5   

(2)    Composition of capital, etc.

  

n     Risk-based capital

     13   

(3)    Summary of approach to assessing capital adequacy

  

(4)    Required capital by portfolio classification

  

n     Credit risk

     16   

(5)    Credit risk management

  

(6)    Credit risk exposure, etc.

  

n      Methods for credit risk mitigation

     31   

(7)    Risk management regarding credit risk mitigation

  

(8)    Credit risk mitigation by portfolio classification

  

n      Counterparty risk in derivatives transactions and long-settlement transactions

     32   

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

  

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

  

n     Securitization exposure

     34   

(11)  Summary of securitization exposure and its risk management

  

(12)  Accounting policies for securitization transactions

  

(13)  Quantitative disclosure items for securitization exposure

  

n     Market risk

     54   

n     Operational risk

     54   

n      Equity exposure in banking book

     54   

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

  

(15)  Status of equity exposure in banking book

  

n      Composition of Leverage Ratio

     56   

n      Indicators for assessing Global Systemically Important Banks (G-SIBs)

     57   

n      Compensation of directors, corporate auditors and employees

     58   

(16)  Qualitative disclosure

  

(17)  Quantitative disclosure items

 

  

Credit risk management

     62   

Market and liquidity risk management

     64   

Operational risk management

     72   

 

1


Table of Contents

Capital adequacy ratio highlights

The Basel 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)” (the FSA Notice No. 7 of 2014, etc.).

With respect to the calculation of capital adequacy ratio, we have applied the international standard and adopted (a) the advanced internal ratings-based approach as a method to calculate the amount of credit risk weighted assets and (b) the advanced measurement approach as a method to calculate the amount equivalent to the operational risk.

n Capital adequacy ratio highlights

 

Mizuho Financial Group (Consolidated)             
     (Billions of yen)  
     As of March 31, 2014     As of March 31, 2015  

Total capital ratio (International standard)

     14.36     14.58

Tier 1 capital ratio

     11.35     11.50

Common equity Tier 1 capital ratio

     8.80     9.43
  

 

 

   

 

 

 

Total capital

     8,655.9        9,508.4   
  

 

 

   

 

 

 

Tier 1 capital

     6,844.7        7,500.3   

Common equity Tier 1 capital

     5,304.4        6,153.1   
  

 

 

   

 

 

 

Risk weighted assets

     60,274.0        65,191.9   
  

 

 

   

 

 

 
Mizuho Bank (Consolidated)             
     (Billions of yen)  
     As of March 31, 2014     As of March 31, 2015  

Total capital ratio (International standard)

     15.48     15.30

Tier 1 capital ratio

     12.35     12.13

Common equity Tier 1 capital ratio

     10.19     10.42
  

 

 

   

 

 

 

Total capital

     8,180.6        8,753.5   
  

 

 

   

 

 

 

Tier 1 capital

     6,525.3        6,943.1   

Common equity Tier 1 capital

     5,386.5        5,965.7   
  

 

 

   

 

 

 

Risk weighted assets

     52,823.7        57,201.8   
  

 

 

   

 

 

 
Mizuho Bank (Non-Consolidated)             
     (Billions of yen)  
     As of March 31, 2014     As of March 31, 2015  

Total capital ratio (International standard)

     15.58     15.35

Tier 1 capital ratio

     12.29     12.01

Common equity Tier 1 capital ratio

     10.15     10.33
  

 

 

   

 

 

 

Total capital

     8,071.7        8,597.5   
  

 

 

   

 

 

 

Tier 1 capital

     6,369.6        6,727.5   

Common equity Tier 1 capital

     5,260.2        5,787.3   
  

 

 

   

 

 

 

Risk weighted assets

     51,803.7        55,981.4   
  

 

 

   

 

 

 
Mizuho Trust & Banking (Consolidated)             
     (Billions of yen)  
     As of March 31, 2014     As of March 31, 2015  

Total capital ratio (International standard)

     17.80     19.21

Tier 1 capital ratio

     14.76     16.68

Common equity Tier 1 capital ratio

     14.76     16.67
  

 

 

   

 

 

 

Total capital

     456.6        511.6   
  

 

 

   

 

 

 

Tier 1 capital

     378.7        444.4   

Common equity Tier 1 capital

     378.7        444.1   
  

 

 

   

 

 

 

Risk weighted assets

     2,564.6        2,663.4   
  

 

 

   

 

 

 
Mizuho Trust & Banking (Non-consolidated)             
     (Billions of yen)  
     As of March 31, 2014     As of March 31, 2015  

Total capital ratio (International standard)

     17.79     19.33

Tier 1 capital ratio

     14.76     16.79

Common equity Tier 1 capital ratio

     14.76     16.79
  

 

 

   

 

 

 

Total capital

     451.2        502.8   
  

 

 

   

 

 

 

Tier 1 capital

     374.5        436.7   

Common equity Tier 1 capital

     374.5        436.7   
  

 

 

   

 

 

 

Risk weighted assets

     2,536.1        2,600.9   
  

 

 

   

 

 

 

 

2


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 (the “scope of accounting consolidation”)

None As of March 31, 2014 and 2015

(B) Number of consolidated subsidiaries

 

     As of March 31, 2014      As of March 31, 2015  

Consolidated subsidiaries

     159         150   

Our major consolidated subsidiaries are 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, 2015

 

Name

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

Domestic

          

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      95.8        95.8   

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 Credit Guarantee Co., Ltd.

   Japan    Credit
guarantee
     100.0        100.0   

Mizuho Factors, Limited

   Japan    Factoring      100.0        100.0   

Shinko Asset Management Co., Ltd.

   Japan    Investment
management
     94.3        94.8   

Mizuho Trust Realty Company Limited

   Japan    Real estate
agency
     86.7        76.9   

Defined Contribution Plan Services Co., Ltd.

   Japan    Pension plan-
related
business
     60.0        60.0   

Mizuho-DL Financial Technology Co., Ltd. Japan

   Japan    Application
and
Sophistication
of Financial
Technology
     60.0        60.0   

UC Card Co., Ltd.

   Japan    Credit card      51.0        51.0   

Mizuho Capital Co., Ltd.

   Japan    Venture
capital
     50.0        50.0   

Overseas

          

Mizuho International plc

   U.K.    Securities and
banking
     100.0        100.0   

Mizuho Bank (China), Ltd.

   China    Banking      100.0        100.0   

Mizuho Securities Asia Limited

   China    Securities      100.0        100.0   

Mizuho Bank Nederland N.V.

   Netherlands    Banking and
securities
     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 Bank (USA)

   U.S.A.    Banking      100.0        100.0   

Mizuho Bank (Switzerland) Ltd

   Switzerland    Trust and
banking
     100.0        100.0   

Mizuho Trust & Banking Co. (USA)

   U.S.A.    Trust and
banking
     100.0        100.0   

Mizuho Capital Markets Corporation

   U.S.A.    Derivatives      100.0        100.0   

PT. Bank Mizuho Indonesia

   Indonesia    Banking      99.0        99.0   

 

3


Table of Contents

(C) Corporations providing financial services for which Article 9 of the FSA Notice No. 20 is applicable

None as of March 31, 2014 and 2015.

(D) Companies that are in the bank holding company’s corporate group but not included in the scope of accounting consolidation and companies that are not in the bank holding company’s corporate group but included in the scope of accounting consolidation

None as of March 31, 2014 and 2015.

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

None as of March 31, 2014 and 2015.

(F) Names of any other financial institutions, etc., classified as subsidiaries or other members of the bank holding company that are deficient in regulatory capital

None as of March 31, 2014 and 2015.

 

4


Table of Contents

n Composition of capital

(2) Composition of capital, etc.

(A) Composition of capital disclosure

Composition of capital disclosure (International standard)

 

                                                                                                     
              (Millions of yen)  
              As of March 31, 2014     As of March 31, 2015  

Basel III template

                  Amounts
excluded
under
transitional
arrangements
           Amounts
excluded
under
transitional
arrangements
 

Common equity Tier 1 capital: instruments and reserves

  

(1)

         

1a+2-1c-26

 

Directly issued qualifying common share capital plus related stock surplus and retained earnings

        5,274,735        /          5,816,601         /   

1a

 

of which: capital and stock surplus

        3,051,830        /        3,152,290         /   

2

 

of which: retained earnings

        2,314,792           /        2,768,510         /   

1c

 

of which: treasury stock (-)

        3,874        /        3,616         /   

26

 

of which: national specific regulatory adjustments (earnings to be distributed) (-)

        88,012        /        100,584         /   
 

of which: other than above

        —          /        —           /   

1b

 

Subscription rights to common shares

        3,179        /        3,820         /   

3

 

Accumulated other comprehensive income and other disclosed reserves

        156,219        624,876        811,982         1,217,973   

5

 

Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)

        10,867        /        12,106         /   
 

Total of items included in common equity Tier 1 capital: instruments and reserves subject to phase-out arrangements

        61,593        /        49,114         /   
 

of which: amount allowed in group CET1 capital subject to phase-out arrangements on common share capital issued by subsidiaries and held by third parties

        61,593        /        49,114         /   

6

 

Common equity Tier 1 capital: instruments and reserves

  

(A)

     5,506,594        /        6,693,624         /   

Common equity Tier 1 capital: regulatory adjustments

  

(2)

         

8+9

 

Total intangible assets (net of related tax liability, excluding those relating to mortgage servicing rights)

        85,091        340,365        205,759         308,639   

8

 

of which: goodwill (net of related tax liability, including those equivalent)

        24,554        98,219        42,919         64,378   

9

 

of which: other intangibles other than goodwill and mortgage servicing rights (net of related tax liability)

        60,536        242,145        162,840         244,261   

10

 

Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)

        5,773        23,092        4,559         6,839   

11

 

Deferred gains or losses on derivatives under hedge accounting

        (1,335     (5,342     10,654         15,981   

12

 

Shortfall of eligible provisions to expected losses

        834        3,065        16,617         24,806   

13

 

Securitization gain on sale

        658        2,632        154         231   

14

 

Gains and losses due to changes in own credit risk on fair valued liabilities

        281        1,125        456         685   

15

 

Net defined benefit asset

        53,235        212,941        201,673         302,509   

16

 

Investments in own shares (excluding those reported in the net assets section)

        616        2,466        1,948         2,923   

17

 

Reciprocal cross-holdings in common equity

        —          —          —           —     

18

 

Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above the 10% threshold)

        57,027        228,110        98,658         147,987   

19+20+21

 

Amount exceeding the 10% threshold on specified items

        —          —          —           —    

19

 

of which: significant investments in the common stock of financials

        —          —          —           —     

 

5


Table of Contents
                                                                                                                      

20

 

of which: mortgage servicing rights

       —          —           —          —     

21

 

of which: deferred tax assets arising from temporary differences (net of related tax liability)

       —          —           —          —     

22

  Amount exceeding the 15% threshold on specified items        —          —           —          —     

23

 

of which: significant investments in the common stock of financials

       —          —           —          —     

24

 

of which: mortgage servicing rights

       —          —           —          —     

25

 

of which: deferred tax assets arising from temporary differences (net of related tax liability)

       —          —           —          —     

27

  Regulatory adjustments applied to common equity Tier 1 due to insufficient additional Tier 1 and Tier 2 to cover deductions        —          /         —          /   

28

  Common equity Tier 1 capital: regulatory adjustments   (B)      202,182        /         540,483        /   

Common equity Tier 1 capital (CET1)

  

      

29

  Common equity Tier 1 capital (CET1) ((A)-(B))   (C)      5,304,412           /         6,153,141        /   

Additional Tier 1 capital: instruments (3)

  

      

30

   31a   Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown        —          /         —          /   

30

   31b   Subscription rights to additional Tier 1 instruments        —          /         —          /   

30

   32   Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards        —          /         —          /   

30

     Qualifying additional Tier 1 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities        —          /         —          /   

34-35

  Additional Tier 1 instruments issued by subsidiaries and held by third parties (amount allowed in group AT1)        25,376        /         29,598        /   

33+35

  Eligible Tier 1 capital instruments subject to phase-out arrangements included in additional Tier 1 capital: instruments        1,666,511        /         1,458,197        /   

33

 

of which: directly issued capital instruments subject to phase out from additional Tier 1

       1,666,511        /         1,458,197           /   

35

 

of which: instruments issued by subsidiaries subject to phase out

       —          /         —          /   
  Total of items included in additional Tier 1 capital: instruments subject to phase-out arrangements        (50,810     /         (24,272     /   
 

of which: foreign currency translation adjustments

       (50,810     /         (24,272     /   

36

  Additional Tier 1 capital: instruments   (D)      1,641,076        /         1,463,523        /   

Additional Tier 1 capital: regulatory adjustments

  

      

37

  Investments in own additional Tier 1 instruments        —          —           —          —     

38

  Reciprocal cross-holdings in additional Tier 1 instruments        —          —           —          —     

39

  Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)        327        1,311         377        566   

40

  Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions)        21,049        84,199         50,301           75,451   
  Total of items included in additional Tier 1 capital: regulatory adjustments subject to phase-out arrangements        79,365        /         65,636        /   
 

of which: goodwill equivalent

       49,791        /         35,170        /   
 

of which: intangible fixed assets recognized as a result of a merger

       25,272        /         17,771        /   
 

of which: capital increase due to securitization transactions

       2,632        /         231        /   
 

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

       1,668        /         12,462        /   

 

6


Table of Contents
                                                                                                     

42

   Regulatory adjustments applied to additional Tier 1 due to insufficient Tier 2 to cover deductions         —          /         —          /   

43

   Additional Tier 1 capital: regulatory adjustments    (E)      100,742        /         116,315        /   

Additional Tier 1 capital (AT1)

  

44

   Additional Tier 1 capital ((D)-(E))    (F)      1,540,334        /         1,347,208        /   

Tier 1 capital (T1 = CET1 + AT1)

            

45

   Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))    (G)      6,844,746           /         7,500,349           /   

Tier 2 capital: instruments and provisions

   (4)          

46

   Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown         —          /         —          /   

46

   Subscription rights to Tier 2 instruments         —          /         —          /   

46

   Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards         —          /         150,000        /   

46

   Tier 2 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities         154,380        /         180,405        /   

48-49

   Tier 2 instruments issued by subsidiaries and held by third parties (amount allowed in group Tier 2)         8,161        /         9,250        /   

47+49

   Eligible Tier 2 capital instruments subject to phase-out arrangements included in Tier 2: instruments and provisions         1,349,648        /         1,108,804        /   

47

  

of which: directly issued capital instruments subject to phase out from Tier 2

        146,480        /         180,405        /   

49

  

of which: instruments issued by subsidiaries subject to phase out

        1,203,167        /         928,399        /   

50

   Total of general allowance for loan losses and eligible provisions included in Tier 2         7,051        /         4,621        /   

        50a        

  

of which: general allowance for loan losses

        7,051        /         4,621        /   

50b

  

of which: eligible provisions

        —          /         —          /   
   Total of items included in Tier 2 capital: instruments and provisions subject to phase-out arrangements         474,042        /         730,789        /   
  

of which: 45% of unrealized gains on other securities

        394,192        /         671,710        /   
  

of which: 45% of revaluation reserve for land

        79,849        /         59,079        /   

51

   Tier 2 capital: instruments and provisions    (H)      1,993,284        /         2,183,870        /   

Tier 2 capital: regulatory adjustments

  

52

   Investments in own Tier 2 instruments         4        16         1,680        2,520   

53

   Reciprocal cross-holdings in Tier 2 instruments         —          —           —          —     

54

   Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold)         41,748        166,993         54,114        81,171   

55

   Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions)         —          —           —          —     
   Total of items included in Tier 2 capital: regulatory adjustments subject to phase-out arrangements         140,287        /         119,954        /   
  

of which: investments in the capital banking, financial and insurance entities

        138,618        /         107,491        /   
  

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

        1,668        /         12,462        /   

57

   Tier 2 capital: regulatory adjustments    (I)      182,040        /         175,748        /   

Tier 2 capital (T2)

  

58

   Tier 2 capital (T2) ((H)-(I))    (J)      1,811,244        /         2,008,122        /   

Total capital (TC = T1 + T2)

  

59

   Total capital (TC = T1 + T2) ((G) + (J))    (K)      8,655,990        /         9,508,471        /   

 

7


Table of Contents
                                                                                                     

Risk weighted assets

     (5)           
   Total of items included in risk weighted assets subject to phase-out arrangements        979,439        /        858,200        /   
  

of which: intangible assets (net of related tax liability, excluding those relating to mortgage service rights)

       216,873        /        226,489        /   
  

of which: deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)

       23,092        /        6,839        /   
  

of which: net defined benefit asset

       212,941        /        302,509        /   
  

of which: investments in the capital banking, financial and insurance entities

       526,532        /        322,361        /   

60

   Risk weighted assets      (L)        60,274,087        /        65,191,951        /   

Capital ratio (consolidated)

          

61

   Common equity Tier 1 capital ratio (consolidated) ((C)/(L))        8.80     /        9.43     /   

62

   Tier 1 capital ratio (consolidated) ((G)/(L))        11.35     /        11.50     /   

63

   Total capital ratio (consolidated) ((K)/(L))        14.36     /        14.58     /   

Regulatory adjustments

     (6)           

72

   Non-significant investments in the capital of other financials that are below the thresholds for deduction (before risk weighting)        534,399        /        675,780        /   

73

   Significant investments in the common stock of financials that are below the thresholds for deduction (before risk weighting)        145,996        /        150,800        /   

        74        

   Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)        —          /        —          /   

75

   Deferred tax assets arising from temporary differences that are below the thresholds for deduction (before risk weighting)        302,251        /        75,937        /   

Provisions included in Tier 2 capital: instruments and provisions

     (7)           

76

   Provisions (general allowance for loan losses)        7,051        /        4,621        /   

77

   Cap on inclusion of provisions (general allowance for loan losses)        57,825        /        45,586        /   

78

   Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) (if the amount is negative, report as “nil”)        —          /        —          /   

79

   Cap for inclusion of provisions in Tier 2 under internal ratings-based approach        280,561        /        310,879        /   

Capital instruments subject to phase-out arrangements

     (8)           

82

   Current cap on AT1 instruments subject to phase-out arrangements        1,666,511        /        1,458,197        /   

83

   Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) (if the amount is negative, report as “nil”)        364,873        /        257,085        /   

84

   Current cap on T2 instruments subject to phase-out arrangements        1,349,648        /        1,180,942        /   

85

   Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) (if the amount is negative, report as “nil”)        81,139        /        —          /   

 

Notes:   
1.    The above figures are calculated based on International standard applied on a consolidated basis under the FSA Notice No. 20.
2.    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.

 

8


Table of Contents

(B) Explanation of (A) Composition of capital disclosure

Reconciliation between “Consolidated balance sheet” and items of consolidated balance sheet and “Composition of capital disclosure”

 

    (Millions of yen)            

Items

  Consolidated balance sheet as
in published financial
statements
    Cross-
reference to
Appended
template
  Reference # of Basel
III template under the
Composition of  capital
disclosure
 
    As of March 31,
2014
    As of March 31,
2015
     

(Assets)

       

Cash and due from banks

    20,610,276        29,096,166       

Call loans and bills purchased

    467,758        444,115       

Receivables under resale agreements

    8,349,528        8,582,239       

Guarantee deposits paid under securities borrowing transactions

    5,010,740        4,059,340       

Other debt purchased

    3,263,057        3,239,831       

Trading assets

    11,469,811        10,781,735      6-a  

Money held in trust

    168,369        157,728       

Securities

    43,997,517        43,278,733      2-b, 6-b  

Loans and bills discounted

    69,301,405        73,415,170      6-c  

Foreign exchange assets

    1,576,167        1,623,736       

Derivatives other than for trading assets

    2,820,468        3,544,243      6-d  

Other assets

    2,840,720        4,066,424      6-e  

Tangible fixed assets

    925,266        1,078,051       

Intangible fixed assets

    531,501        657,556      2-a  

Net defined benefit asset

    413,073        743,382      3  

Deferred tax assets

    104,909        36,938      4-a  

Customers’ liabilities for acceptances and guarantees

    4,588,646        5,404,843       

Reserves for possible losses on loans

    (616,307     (525,486    

Reserve for possible losses on investments

    (27     (2    
 

 

 

   

 

 

     

Total assets

    175,822,885        189,684,749       
 

 

 

   

 

 

     

(Liabilities)

       

Deposits

    89,055,505        97,757,545       

Negotiable certificates of deposit

    12,755,776        15,694,906       

Call money and bills sold

    7,194,432        5,091,198       

Payables under repurchase agreements

    16,797,803        19,612,120       

Guarantee deposits received under securities lending transactions

    6,085,331        2,245,639       

Commercial paper

    677,459        538,511       

Trading liabilities

    8,183,037        8,743,196      6-f  

Borrowed money

    7,838,357        7,195,869      8-a  

Foreign exchange liabilities

    323,327        473,060       

Short-term bonds

    584,568        816,705       

Bonds and notes

    5,245,743        6,013,731      8-b  

Due to trust accounts

    1,300,655        1,780,768       

Derivatives other than for trading liabilities

    3,004,497        3,474,332      6-g  

Other liabilities

    3,570,902        4,261,955       

Reserve for bonus payments

    52,641        59,869       

Net defined benefit liability

    46,006        47,518       

Reserve for director and corporate auditor retirement benefits

    1,547        1,527       

Reserve for possible losses on sales of loans

    1,259        13       

Reserve for contingencies

    6,309        7,845       

Reserve for reimbursement of deposits

    16,451        15,851       

Reserve for reimbursement of debentures

    54,956        48,878       

Reserves under special laws

    1,273        1,607       

Deferred tax liabilities

    50,783        524,321      4-b  

Deferred tax liabilities for revaluation reserve for land

    81,060        72,392      4-c  

Acceptances and guarantees

    4,588,646        5,404,843       
 

 

 

   

 

 

     

Total liabilities

    167,518,336        179,884,211       
 

 

 

   

 

 

     

(Net assets)

       

Common stock and preferred stock

    2,254,972        2,255,404      1-a  

Capital surplus

    1,109,508        1,110,006      1-b  

Retained earnings

    2,315,608        2,769,371      1-c  

Treasury stock

    (3,874     (3,616   1-d  
 

 

 

   

 

 

     

Total shareholders’ equity

    5,676,215        6,131,166       
 

 

 

   

 

 

     

Net unrealized gains (losses) on other securities

    733,522        1,737,348       

Deferred gains or losses on hedges

    (6,677     26,635      5  

Revaluation reserve for land

    140,745        146,419       

Foreign currency translation adjustment

    (63,513     (40,454    

Remeasurements of defined benefit plans

    (22,979     160,005       
 

 

 

   

 

 

     

Total accumulated other comprehensive income

    781,096        2,029,955          3   
 

 

 

   

 

 

     

Stock acquisition rights

    3,179        3,820          1b   

Minority interests

    1,844,057        1,635,595      7  
 

 

 

   

 

 

     

Total net assets

    8,304,549        9,800,538       
 

 

 

   

 

 

     

Total liabilities and net assets

    175,822,885        189,684,749       
 

 

 

   

 

 

     

 

Note:

    The regulatory scope of consolidation is the same as the accounting scope of consolidation.

 

9


Table of Contents

Appended template

1. Shareholders’ equity

(1) Consolidated balance sheet

 

         (Millions of yen)      
Ref.  

Consolidated balance sheet items

   As of March 31,
2014
    As of March 31,
2015
   

Remarks

1-a  

Common stock and preferred stock

     2,254,972        2,255,404      Including eligible Tier 1 capital instruments subject to phase-out arrangements
1-b  

Capital surplus

     1,109,508        1,110,006      Including eligible Tier 1 capital instruments subject to phase-out arrangements
1-c  

Retained earnings

     2,315,608        2,769,371     
1-d  

Treasury stock

     (3,874     (3,616  
 

Total shareholders’ equity

     5,676,215        6,131,166     

(2) Composition of capital

      
          (Millions of yen)      
Basel III
template
 

Composition of capital disclosure

   As of March 31,
2014
    As of March 31,
2015
   

Remarks

 

Directly issued qualifying common share capital plus related stock surplus and retained earnings

     5,362,748        5,917,185      Shareholders’ equity attributable to common shares (before adjusting national specific regulatory adjustments (earnings to be distributed))
1a  

of which: capital and stock surplus

     3,051,830        3,152,290     
2  

of which: retained earnings

     2,314,792        2,768,510     
1c  

of which: treasury stock (-)

     3,874        3,616     
 

of which: other than above

     —          —       
31a  

Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown

     —          —        Shareholders’ equity attributable to preferred shares with a loss absorbency clause upon entering into effectively bankruptcy

2. Intangible fixed assets

      

(1) Consolidated balance sheet

      
         (Millions of yen)      
Ref.  

Consolidated balance sheet items

   As of March 31,
2014
    As of March 31,
2015
   

Remarks

2-a  

Intangible fixed assets

     531,501        657,556     
2-b  

Securities

     43,997,517        43,278,733     
 

of which: share of goodwill of companies accounted for using the equity method

     60,535        48,680      Share of goodwill of companies accounted for using the equity method
 

Income taxes related to above

     (166,580     (191,837  

(2) Composition of capital

      
         (Millions of yen)      
Basel III
template
 

Composition of capital disclosure

   As of March 31,
2014
    As of March 31,
2015
   

Remarks

8  

Goodwill (net of related tax liability, including those equivalent)

     122,774        107,297     
9  

Other intangibles other than goodwill and mortgage servicing rights (net of related tax liability)

     302,681        407,101      Software and other
 

Mortgage servicing rights (net of related tax liability)

     —          —       
20  

Amount exceeding the 10% threshold on specified items

     —          —       
24  

Amount exceeding the 15% threshold on specified items

     —          —       
74  

Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)

     —          —       

 

10


Table of Contents

3. Net defined benefit asset

 

(1) Consolidated balance sheet

 

      
         (Millions of yen)      
Ref.  

Consolidated balance sheet items

   As of March 31,
2014
    As of March 31,
2015
   

Remarks

3  

Net defined benefit asset

     413,073        743,382     
 

Income taxes related to above

     (146,897     (239,199  

 

(2) Composition of capital

 

      
Basel III
template
 

Composition of capital disclosure

   (Millions of yen)    

Remarks

     As of March 31,
2014
    As of March 31,
2015
   
15  

Net defined benefit asset

     266,176        504,183     

 

4. Deferred tax assets

 

(1) Consolidated balance sheet

 

      
         (Millions of yen)      
Ref.  

Consolidated balance sheet items

   As of March 31,
2014
    As of March 31,
2015
   

Remarks

4-a  

Deferred tax assets

     104,909        36,938     
4-b  

Deferred tax liabilities

     50,783        524,321     
4-c  

Deferred tax liabilities for revaluation reserve for land

     81,060        72,392     
 

Tax effects on intangible fixed assets

     166,580        191,837     
 

Tax effects on net defined benefit asset

     146,897        239,199     

 

(2) Composition of capital

 

      
Basel III
template
 

Composition of capital disclosure

   (Millions of yen)    

Remarks

     As of March 31,
2014
    As of March 31,
2015
   
10  

Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)

     28,865        11,399      This item does not agree with the amount reported on the consolidated balance sheet due to offsetting of assets and liabilities.
 

Deferred tax assets that rely on future profitability arising from temporary differences (net of related tax liability)

     302,251        75,937      This item does not agree with the amount reported on the consolidated balance sheet due to offsetting of assets and liabilities.
21  

Amount exceeding the 10% threshold on specified items

     —          —       
25  

Amount exceeding the 15% threshold on specified items

     —          —       
75  

Deferred tax assets arising from temporary differences that are below the thresholds for deduction (before risk weighting)

     302,251        75,937     

 

5. Deferred gains or losses on derivatives under hedge accounting

 

(1) Consolidated balance sheet

 

      
         (Millions of yen)      
Ref.  

Consolidated balance sheet items

   As of March 31,
2014
    As of March 31,
2015
   

Remarks

5  

Deferred gains or losses on hedges

     (6,677     26,635     

 

(2) Composition of capital

 

  
Basel III
template
 

Composition of capital disclosure

   (Millions of yen)    

Remarks

     As of March 31,
2014
    As of March 31,
2015
   
11  

Deferred gains or losses on derivatives under hedge accounting

     (6,677     26,635     

 

11


Table of Contents

6. Items associated with investments in the capital of financial institutions

  

  

 

(1) Consolidated balance sheet

 

 

  

 

  
         (Millions of yen)       

    Ref.    

 

Consolidated balance sheet items

   As of March 31,
2014
     As of March 31,
2015
    

Remarks

6-a   Trading assets      11,469,811         10,781,735       Including trading account securities and derivatives for trading assets
6-b   Securities      43,997,517         43,278,733      
6-c   Loans and bills discounted      69,301,405         73,415,170       Including subordinated loans
6-d   Derivatives other than for trading assets      2,820,468         3,544,243      
6-e   Other assets      2,840,720         4,066,424       Including money invested
6-f   Trading liabilities      8,183,037         8,743,196       Including trading account securities sold
6-g  

Derivatives other than for trading liabilities

     3,004,497         3,474,332      

 

(2) Composition of capital

 

        
         (Millions of yen)       

Basel III

  template  

 

Composition of capital disclosure

   As of March 31,
2014
     As of March 31,
2015
    

Remarks

  Investments in own capital instruments      3,103         9,072      
16  

Common equity Tier 1 capital

     3,083         4,872      
37  

Additional Tier 1 capital

     —           —        
52  

Tier 2 capital

     20         4,200      
 

Reciprocal cross-holdings in the capital of banking, financial and insurance entities

     —           —        
17  

Common equity Tier 1 capital

     —           —        
38  

Additional Tier 1 capital

     —           —        
53  

Tier 2 capital

     —           —        
 

Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)

     1,029,919         1,058,656      
18  

Common equity Tier 1 capital

     285,138         246,646      
39  

Additional Tier 1 capital

     1,638         943      
54  

Tier 2 capital

     208,742         135,285      
72  

Non-significant investments in the capital of other financials that are below the thresholds for deduction (before risk weighting)

     534,399         675,780      
 

Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions

     251,246         276,553      
19  

Amount exceeding the 10% threshold on specified items

     —           —        
23  

Amount exceeding the 15% threshold on specified items

     —           —        
40  

Additional Tier 1 capital

     105,249         125,753      
55  

Tier 2 capital

     —           —        
73  

Significant investments in the common stock of financials that are below the thresholds for deduction (before risk weighting)

     145,996         150,800      

 

7. Minority interests

        

 

(1) Consolidated balance sheet

 

        
         (Millions of yen)       

    Ref.    

 

Consolidated balance sheet items

   As of March 31,
2014
     As of March 31,
2015
    

Remarks

7   Minority interests      1,844,057         1,635,595      
          

 

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Table of Contents

 

(2) Composition of capital

 

        
          (Millions of yen)       
Basel III
template
  

Composition of capital disclosure

   As of March 31,
2014
     As of March 31,
2015
    

Remarks

5   

Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)

     10,867         12,106       After reflecting amounts eligible for inclusion (minority interest after adjustments)
30-31ab-32   

Qualifying additional Tier 1 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities

     —           —         After reflecting amounts eligible for inclusion (minority interest after adjustments)
34-35   

Additional Tier 1 instruments issued by subsidiaries and held by third parties (amount allowed in group AT1)

     25,376         29,598       After reflecting amounts eligible for inclusion (minority interest after adjustments)
46   

Tier 2 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities

     154,380         180,405       After reflecting amounts eligible for inclusion (minority interest after adjustments)
48-49   

Tier 2 instruments issued by subsidiaries and held by third parties (amount allowed in group Tier 2)

     8,161         9,250       After reflecting amounts eligible for inclusion (minority interest after adjustments)

 

8. Other capital instruments

 

        
(1) Consolidated balance sheet                   
          (Millions of yen)       
Ref.   

Consolidated balance sheet items

   As of March 31,
2014
     As of March 31,
2015
    

Remarks

8-a    Borrowed money      7,838,357         7,195,869      
8-b    Bonds and notes      5,245,743         6,013,731      
  

Total

     13,084,101         13,209,601      

 

(2) Composition of capital

 

           
          (Millions of yen)       
Basel III
template
  

Composition of capital disclosure

   As of March 31,
2014
     As of March 31,
2015
    

Remarks

32   

Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards

     —           —        
46   

Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards

     —           150,000      

 

Note:

  
   Amounts in the “Composition of capital disclosure” are based on those before considering amounts under transitional arrangements and include “Amounts excluded under transitional arrangements” disclosed in “(A) Composition of capital disclosure” as well as amounts included as regulatory capital. In addition, items for regulatory purposes under transitional arrangements are excluded from this table.

n Risk-based capital

(3) 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 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 common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio that exceed the minimum requirements.

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 estimate the impact of the stress on our capital from risk scenarios that are formulated based on external environment, risks inherent to our business portfolio, etc. and from scenarios such as the occurrence of historical stress events. In addition, we examine whether an appropriate return on risk is maintained in the assessments.

 

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Table of Contents

(4) Required capital by portfolio classification

 

     (Billions of yen)  
     As of March 31, 2014      As of March 31, 2015  
     EAD      Required capital      EAD      Required capital  

Credit risk

     180,860.3         5,114.7         195,982.4         5,456.6   
  

 

 

    

 

 

    

 

 

    

 

 

 

Internal ratings-based approach

     173,716.9         4,530.0         188,787.2         4,926.2   

Corporate (except specialized lending)

     59,100.4         2,360.0         68,175.7         2,434.9   

Corporate (specialized lending)

     2,977.2         258.1         3,574.5         323.9   

Sovereign

     77,644.8         82.2         77,681.9         92.8   

Bank

     6,511.3         148.5         7,239.8         155.8   

Retail

     13,531.9         587.7         13,346.9         546.0   

Residential mortgage

     10,366.2         380.4         10,173.4         344.5   

Qualifying revolving loan

     434.7         35.0         499.0         38.1   

Other retail

     2,730.9         172.2         2,674.4         163.3   

Equities

     4,299.9         485.9         5,628.1         695.3   

PD/LGD approach

     1,199.5         131.1         4,831.4         489.4   

Market-based approach (simple risk weight method)

     490.7         129.0         796.7         205.9   

Market-based approach (internal models approach)

     —           —           —           —     

Transitional measure applied

     2,609.6         225.7         n.a.         n.a.   

Regarded-method exposure

     1,761.0         344.2         2,073.3         382.1   

Purchase receivables

     1,935.4         60.0         5,111.1         140.1   

Securitizations

     3,038.7         46.6         3,340.6         24.0   

Others

     2,916.0         156.2         2,614.8         130.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

Standardized approach

     7,143.4         370.0         7,195.2         279.0   

Sovereign

     1,505.0         6.0         2,881.6         7.8   

Bank

     1,527.7         38.9         1,274.6         25.0   

Corporate

     3,619.6         272.4         2,447.9         183.7   

Residential mortgage

     —           —           —           —     

Securitizations

     20.6         9.9         21.9         9.5   

Others

     470.4         42.7         569.0         52.8   
  

 

 

    

 

 

    

 

 

    

 

 

 

CVA risk

     n.a.         195.8         n.a.         220.4   
  

 

 

    

 

 

    

 

 

    

 

 

 

Central counterparty-related

     n.a.         18.7         n.a.         31.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Market risk

     n.a.         233.5         n.a.         277.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

Standardized approach

     n.a.         62.8         n.a.         78.8   

Interest rate risk

     n.a.         39.9         n.a.         42.3   

Equities risk

     n.a.         13.5         n.a.         22.9   

Foreign exchange risk

     n.a.         8.4         n.a.         10.3   

Commodities risk

     n.a.         0.9         n.a.         3.1   

Option transactions

     n.a.         —           n.a.         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Internal models approach

     n.a.         170.6         n.a.         199.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operational risk

     n.a.         262.9         n.a.         249.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Advanced measurement approach

     n.a.         230.9         n.a.         210.4   

Basic indicator approach

     n.a.         31.9         n.a.         38.8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total required capital (consolidated)

     n.a.         4,821.9         n.a.         5,215.3   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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 and (ii) expected losses. 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 (Article 13 of supplementary provision of the FSA Notice No. 20) applies to those held from September 30, 2004 or earlier in the fiscal year ended March 31, 2014. Either the PD/LGD approach or the market-based approach applies in the fiscal year ended March 31, 2015 as the transitional period ended.

 

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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

(5) Credit risk management

Summary of credit risk management

See pages 62 to 63 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 Framework. 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. Meanwhile, we have applied the advanced internal ratings-based approach to Mizuho Bank Nederland N.V. since the end of March 2015.

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 risk weight of 100% for all of our corporate exposure.

Summary of our internal rating system

See pages 62 to 63 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.      
* Obligors who have loans in need of monitoring (restructured loans and loans past due for three months or more) out of the obligors who require close watching going forward

 

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Table of Contents

(6) 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, 2014 and 2015.

Status of credit risk exposure

(A) Breakdown by geographical area

 

     (Billions of yen)  
     As of March 31, 2014  
     Loans, commitments and
other non-derivative
off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Domestic

     74,327.0         31,575.7         1,062.4         20,235.8         127,201.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     24,724.6         9,530.9         1,996.2         5,464.1         41,716.0   

Asia

     7,108.6         1,697.0         211.9         1,662.1         10,679.8   

Central and South America

     2,460.0         133.0         136.1         633.5         3,362.9   

North America

     8,839.9         5,120.9         503.5         2,648.2         17,112.5   

Eastern Europe

     33.8         —           0.3         9.0         43.2   

Western Europe

     4,004.3         2,244.9         1,015.9         336.4         7,601.6   

Other areas

     2,277.8         335.0         128.4         174.5         2,915.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     99,051.6         41,106.7         3,058.7         25,699.9         168,917.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         7,122.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (Billions of yen)  
     As of March 31, 2015  
     Loans, commitments and
other non-derivative
off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Domestic

     69,662.6         28,131.5         1,130.5         25,941.1         124,865.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     37,120.2         11,831.1         2,545.7         7,010.2         58,507.3   

Asia

     9,175.5         2,076.8         319.9         1,764.3         13,336.8   

Central and South America

     3,157.2         162.9         141.2         578.4         4,039.9   

North America

     15,445.9         7,256.7         629.6         3,967.6         27,299.9   

Eastern Europe

     394.9         —           1.3         15.3         411.6   

Western Europe

     5,620.9         1,825.4         1,267.6         464.3         9,178.3   

Other areas

     3,325.5         509.1         185.7         220.0         4,240.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     106,782.8         39,962.7         3,676.2         32,951.3         183,373.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         7,173.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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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Table of Contents

(B) Breakdown by industry

 

     (Billions of yen)  
     As of March 31, 2014  
     Loans, commitments  and
other non-derivative
off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Manufacturing

     15,958.4         2,229.5         299.6         683.3         19,170.9   

Construction

     1,327.2         163.0         7.8         45.4         1,543.4   

Real estate

     7,191.9         503.8         56.8         17.4         7,770.1   

Service industries

     3,841.7         398.9         73.0         45.3         4,358.9   

Wholesale and retail

     7,838.4         676.6         137.8         1,080.1         9,733.0   

Finance and insurance

     11,293.9         2,567.1         1859.8         1,857.7         17,578.8   

Individuals

     12,004.9         —           0.2         11.3         12,016.5   

Other industries

     19,534.6         8,647.9         617.4         7,013.7         35,813.7   

Japanese Government; Bank of Japan

     20,060.3         25,919.4         6.0         14,945.4         60,931.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     99,051.6         41,106.7         3,058.7         25,699.9         168,917.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         7,122.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (Billions of yen)  
     As of March 31, 2015  
     Loans, commitments and
other non-derivative

off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Manufacturing

     19,834.1         2,653.2         511.1         672.0         23,670.5   

Construction

     1,470.3         194.8         14.2         61.6         1,741.0   

Real estate

     7,799.4         592.5         63.0         14.9         8,469.9   

Service industries

     4,625.9         459.4         78.9         46.6         5,210.8   

Wholesale and retail

     9,008.8         745.4         113.9         1,089.7         10,958.1   

Finance and insurance

     13,070.3         3,578.9         2,007.5         2,042.5         20,699.4   

Individuals

     11,949.5         —           0.2         10.6         11,960.3   

Other industries

     25,245.1         10,133.2         882.7         8,035.2         44,296.3   

Japanese Government; Bank of Japan

     13,779.1         21,605.0         4.3         20,977.8         56,366.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     106,782.8         39,962.7         3,676.2         32,951.3         183,373.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         7,173.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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.

 

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Table of Contents

(C) Breakdown by residual contractual maturity

 

     (Billions of yen)  
     As of March 31, 2014  
     Loans, commitments  and
other non-derivative
off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Less than one year

     29,175.7         8,360.1         455.7         4,813.1         42,804.8   

From one year to less than three years

     14,691.3         11,291.2         1,448.3         537.8         27,968.7   

From three years to less than five years

     14,945.4         10,846.7         553.2         18.8         26,364.3   

Five years or more

     24,670.2         6,308.2         601.3         8.6         31,588.4   

Other than above

     15,568.8         4,300.3         —           20,321.4         40,190.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     99,051.6         41,106.7         3,058.7         25,699.9         168,917.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         7,122.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (Billions of yen)  
     As of March 31, 2015  
     Loans, commitments  and
other non-derivative
off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Less than one year

     30,032.6         6,663.3         723.6         5,310.1         42,729.7   

From one year to less than three years

     18,221.8         10,934.4         1,645.7         604.0         31,406.1   

From three years to less than five years

     19,111.8         9,387.3         473.1         21.9         28,994.2   

Five years or more

     26,942.5         7,529.5         833.7         5.8         35,311.6   

Other than above

     12,474.0         5,448.0         —           27,009.4         44,931.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     106,782.8         39,962.7         3,676.2         32,951.3         183,373.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         7,173.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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.

 

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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, 2014  
     Loans, commitments and
other non-derivative

off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Domestic

     1,017.8         14.1         7.8         33.4         1,073.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     296.9         2.0         28.8         10.2         338.1   

Asia

     36.2         0.0         0.6         41.0         41.0   

Central and South America

     171.6         0.0         19.8         0.1         191.6   

North America

     1.2         2.0         —           2.1         5.3   

Eastern Europe

     4.3         —           —           —           4.3   

Western Europe

     66.7         0.0         8.3         3.8         78.9   

Other areas

     16.6         —           —           0.0         16.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,314.7         16.2         36.7         43.7         1,411.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         4.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (Billions of yen)  
     As of March 31, 2015  
     Loans, commitments and
other non-derivative

off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Domestic

     1,124.1         24.2         4.9         24.6         1,178.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Overseas

     349.1         1.9         23.6         6.9         381.6   

Asia

     44.8         0.0         0.6         1.2         46.7   

Central and South America

     83.9         0.0         10.6         0.0         94.6   

North America

     16.2         1.9         0.9         2.0         21.1   

Eastern Europe

     6.0         —           0.1         —           6.1   

Western Europe

     72.1         0.0         11.4         3.5         87.0   

Other areas

     125.9         —           —           0.0         125.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,473.3         26.2         28.5         31.5         1,559.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         4.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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.

 

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Table of Contents

(E) Breakdown by industry

 

     (Billions of yen)  
     As of March 31, 2014  
     Loans, commitments and
other non-derivative
off-balance-sheet exposures
     Securities      Derivatives      Others      Total  

Manufacturing

     271.1         4.8         3.5         10.6         290.1   

Construction

     40.8         2.7         0.0         0.6         44.3   

Real estate

     144.1         3.5         0.0         0.9         148.6   

Service industries

     123.7         1.6         5.5         3.5         134.5   

Wholesale and retail

     196.9         1.2         2.3         17.3         217.9   

Finance and insurance

     21.0         1.4         2.9         4.1         29.5   

Individuals

     174.4         —           —           1.1         175.5   

Other industries

     342.5         0.7         22.3         5.1         370.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,314.7         16.2         36.7         43.7         1,411.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exempt portion

     n.a.         n.a.         n.a.         n.a.         4.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (Billions of yen)  
     As of March 31, 2015  
     Loans, commitments  and
other non-derivative
off-balance-sheet exposures
     Securities      Derivatives