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  • 6-K (Mar 5, 2018)
  • 424B2 (Mar 1, 2018)
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  • 6-K (Feb 14, 2018)
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  • SC 13G (Feb 8, 2018)
Mizuho Financial Group 6-K 2017

Documents found in this filing:

  1. 6-K
  2. 6-K
Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2017

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  ☒    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  ☒

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

 

 

 


THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF MIZUHO FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.


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: August 14, 2017
Mizuho Financial Group, Inc.
By:  

/s/ Makoto Umemiya

Name:   Makoto Umemiya
Title:   Managing Executive Officer / Group CFO


UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2017

On August 14, 2017, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2017 prepared in accordance with Japanese GAAP as part of our quarterly securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. We have included in this report on Form 6-K an English translation of the unaudited quarterly consolidated financial statements and the notes thereto included in such quarterly securities report. Japanese GAAP differs in certain respects from U.S. GAAP. For a description of certain differences between U.S. GAAP and Japanese GAAP, see “Item 5. Operating and Financial Review and Prospects - Reconciliation with Japanese GAAP” in our most recent annual report on Form 20-F filed with the U.S. Securities Exchange Commission.


Financial Information

 

1. The quarterly consolidated financial statements of Mizuho Financial Group, Inc. (“MHFG”) are prepared in accordance with the “Ordinance on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” (Cabinet Office Ordinance No. 64 of 2007). The classification of assets and liabilities and that of income and expenses are in accordance with the “Ordinance for Enforcement of the Banking Act” (Ordinance of the Ministry of Finance No. 10 of 1982).

 

2. Ernst & Young ShinNihon LLC conducted a quarterly review on the quarterly consolidated financial statements of MHFG for the three months ended June 30, 2017, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

 

- 1 -


  I. Quarterly Consolidated Financial Statements

    (1) Quarterly Consolidated Balance Sheet

 

    

(Millions of yen)

 
    

As of

March 31, 2017

   

As of

June 30, 2017

 

Assets

          

Cash and Due from Banks

        47,129,583          41,811,173  

Call Loans and Bills Purchased

        1,035,746          1,519,891  

Receivables under Resale Agreements

        8,967,777          9,350,185  

Guarantee Deposits Paid under Securities Borrowing Transactions

        3,350,051          2,913,515  

Other Debt Purchased

        2,745,204          2,639,525  

Trading Assets

        10,361,787          11,303,501  

Money Held in Trust

        247,583          247,314  

Securities

   *2      32,353,158     *2      35,367,515  

Loans and Bills Discounted

   *1      78,337,793     *1      78,488,564  

Foreign Exchange Assets

        1,828,782          1,924,522  

Derivatives other than for Trading Assets

        2,170,750          1,868,313  

Other Assets

        4,180,339          5,216,753  

Tangible Fixed Assets

        1,136,329          1,120,611  

Intangible Fixed Assets

        1,045,486          1,068,056  

Net Defined Benefit Asset

        797,762          810,730  

Deferred Tax Assets

        56,066          57,348  

Customers’ Liabilities for Acceptances and Guarantees

        5,273,581          5,409,044  

Reserves for Possible Losses on Loans

        (509,175        (477,008
  

 

   

 

 

Total Assets

        200,508,610          200,639,561  
  

 

   

 

 

 

- 2 -


    

(Millions of yen)

 
    

As of

March 31, 2017

   

As of

June 30, 2017

 

Liabilities

          

Deposits

        120,045,217          119,242,930  

Negotiable Certificates of Deposit

        10,631,277          11,350,828  

Call Money and Bills Sold

        1,255,172          1,511,951  

Payables under Repurchase Agreements

        17,969,753          18,310,442  

Guarantee Deposits Received under Securities Lending Transactions

        1,679,300          1,733,018  

Commercial Paper

        789,705          534,655  

Trading Liabilities

        7,923,285          8,124,844  

Borrowed Money

        6,307,230          5,449,220  

Foreign Exchange Liabilities

        526,053          404,689  

Short-term Bonds

        226,348          206,530  

Bonds and Notes

        7,564,535          7,416,653  

Due to Trust Accounts

        4,784,077          4,479,344  

Derivatives other than for Trading Liabilities

        1,784,857          1,547,923  

Other Liabilities

        3,883,168          5,036,408  

Reserve for Bonus Payments

        67,633          13,089  

Reserve for Variable Compensation

        3,018          3,810  

Net Defined Benefit Liability

        55,236          55,226  

Reserve for Director and Corporate Auditor Retirement Benefits

        1,327          1,169  

Reserve for Possible Losses on Sales of Loans

        298          58  

Reserve for Contingencies

        5,680          5,706  

Reserve for Reimbursement of Deposits

        19,072          17,466  

Reserve for Reimbursement of Debentures

        32,720          30,781  

Reserves under Special Laws

        2,309          2,285  

Deferred Tax Liabilities

        337,800          329,530  

Deferred Tax Liabilities for Revaluation Reserve for Land

        66,585          66,462  

Acceptances and Guarantees

        5,273,581          5,409,044  
  

 

   

 

 

Total Liabilities

        191,235,249          191,284,072  
  

 

   

 

 

Net Assets

          

Common Stock and Preferred Stock

        2,256,275          2,256,548  

Capital Surplus

        1,134,416          1,134,811  

Retained Earnings

        3,615,449          3,638,845  

Treasury Stock

        (4,849        (5,478
  

 

   

 

 

Total Shareholders’ Equity

        7,001,291          7,024,727  
  

 

   

 

 

Net Unrealized Gains (Losses) on Other Securities

        1,289,985          1,356,077  

Deferred Gains or Losses on Hedges

        10,172          10,499  

Revaluation Reserve for Land

        145,609          145,329  

Foreign Currency Translation Adjustments

        (69,657        (79,421

Remeasurements of Defined Benefit Plans

        144,866          144,856  
  

 

   

 

 

Total Accumulated Other Comprehensive Income

        1,520,976          1,577,341  
  

 

   

 

 

Stock Acquisition Rights

        1,754          1,210  

Non-controlling Interests

        749,339          752,209  
  

 

   

 

 

Total Net Assets

        9,273,361          9,355,489  
  

 

   

 

 

Total Liabilities and Net Assets

        200,508,610          200,639,561  
  

 

   

 

 

 

- 3 -


(2) Quarterly Consolidated Statement of Income and

      Quarterly Consolidated Statement of Comprehensive Income

      Quarterly Consolidated Statement of Income

 

 

    

(Millions of yen)

 
    

For the three months ended
June 30, 2016

   

For the three months ended
June 30, 2017

 

Ordinary Income

                       780,350                         793,607  

Interest Income

       334,632         381,591  

Interest on Loans and Bills Discounted

       225,147         246,024  

Interest and Dividends on Securities

       55,453         59,730  

Fiduciary Income

       10,394         10,942  

Fee and Commission Income

       169,821         156,381  

Trading Income

       112,084         57,374  

Other Operating Income

       111,457         86,592  

Other Ordinary Income

                     *1     41,960                       *1     100,724  

Ordinary Expenses

       588,197         651,263  

Interest Expenses

       118,956         188,736  

Interest on Deposits

       46,971         78,477  

Fee and Commission Expenses

       37,863         40,431  

Trading Expenses

       120         —    

Other Operating Expenses

       30,551         23,611  

General and Administrative Expenses

       350,354         362,106  

Other Ordinary Expenses

   *2     50,350     *2     36,377  
  

 

   

 

 

Ordinary Profits

       192,153         142,344  
  

 

   

 

 

Extraordinary Gains

   *3     1,410     *3     1,659  

Extraordinary Losses

   *4     881     *4     1,821  
  

 

   

 

 

Income before Income Taxes

       192,683         142,182  
  

 

   

 

 

Income Taxes:

        

Current

       56,373         50,611  

Deferred

       (9,885       (36,991
  

 

   

 

 

Total Income Taxes

       46,488         13,619  
  

 

   

 

 

Profit

       146,194         128,562  
  

 

   

 

 

Profit Attributable to Non-controlling Interests

       13,555         10,272  
  

 

   

 

 

Profit Attributable to Owners of Parent

       132,639         118,290  
  

 

   

 

 

 

- 4 -


      Quarterly Consolidated Statement of Comprehensive Income

 

    

(Millions of yen)

 
    

For the three months ended
June 30, 2016

   

For the three months ended
June 30, 2017

 

Profit

                       146,194                         128,562  

Other Comprehensive Income

       (95,447           53,619  

Net Unrealized Gains (Losses) on Other Securities

       (130,342       63,494  

Deferred Gains or Losses on Hedges

            42,390         910  

Revaluation Reserve for Land

       (4       (0

Foreign Currency Translation Adjustments

                              (9,461                              (4,019

Remeasurements of Defined Benefit Plans

       6,710         3,973  

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

       (4,739       (10,737
  

 

   

 

 

Comprehensive Income

       50,747         182,182  
  

 

   

 

 

(Breakdown)

        

Comprehensive Income Attributable to Owners of Parent

       40,302         174,934  

Comprehensive Income Attributable to Non-controlling Interests

       10,444         7,247  

 

- 5 -


Notes to Quarterly Consolidated Financial Statements

Additional Information

The Board Benefit Trust (“BBT”) Program

Since MHFG operates its business giving due regard to creating value for diverse stakeholders and realizing improved corporate value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy defined under the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a performance-based stock compensation program using a trust (the “Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer to exert maximum effort in performing his or her duties, and also as consideration for such exertion of effort.

 

(1) Outline of the Program

The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will be acquired through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be distributed to Directors, Executive Officers, and Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The number of MHFG’s shares to be distributed will be determined pursuant to a performance evaluation based on the annual business plan.

A structure has been introduced for the distribution of MHFG’s shares under the Program, whereby the distribution will be deferred over three years, and the deferred portion will be subject to reduction or forfeiture depending on certain factors, including the performance of the Company Group or the relevant Directors, Executive Officers, and Specialist Officers.

Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.

 

(2) MHFG’s Shares Outstanding in the Trust

MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount (excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of June 30, 2017 was ¥1,428 million for 9,000 thousand shares.

 

- 6 -


Notes to Quarterly Consolidated Balance Sheet

 

*1. Non-Accrual, Past Due & Restructured Loans, which are included in Loans and Bills Discounted, are as follows:

 

                                                                                             
     (Millions of yen)  
     As of March 31, 2017      As of June 30, 2017  

Loans to Bankrupt Obligors

     33,330        31,118  

Non-Accrual Delinquent Loans

     430,525        396,529  

Loans Past Due for Three Months or More

     7,896        6,465  

Restructured Loans

     414,700        396,933  

Total

     886,452        831,047  

The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

 

*2. Amounts of liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)

 

                                                                                             
     (Millions of yen)  
     As of March 31, 2017      As of June 30, 2017  
     1,169,267        1,164,783  

Notes to Quarterly Consolidated Statement of Income

 

*1. Other Ordinary Income includes the following:

 

                                                                                             
     (Millions of yen)  
     For the three months ended
June 30, 2016
     For the three months ended
June 30, 2017
 

Gains on Sales of Stocks

          25,443             66,824  

Reversal of Reserves for Possible Losses on Loans

     —          21,906  

 

*2. Other Ordinary Expenses includes the following:

 

                                                                                             
     (Millions of yen)  
     For the three months ended
June 30, 2016
     For the three months ended
June 30, 2017
 

System Migration-related Expenses

          10,047             15,285  

 

*3. Extraordinary Gains includes the following:

 

                                                                                             
     (Millions of yen)  
     For the three months ended
June 30, 2016
     For the three months ended
June 30, 2017
 

Gains on Disposition of Fixed Assets

            1,410               1,653  

 

*4. Extraordinary Losses includes the following:

 

                                                                                             
     (Millions of yen)  
     For the three months ended
June 30, 2016
     For the three months ended
June 30, 2017
 

Losses on Impairment of Fixed Assets

     —          1,150  

Losses on Disposition of Fixed Assets

               814                  671  

 

- 7 -


Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the three months ended June 30, 2017. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the three months ended June 30, 2016 and 2017 are as follows:

 

                                                                                             
     (Millions of yen)  
     For the three months ended
June 30, 2016
     For the three months ended
June 30, 2017
 

Depreciation

          39,307             42,629  

Amortization of Goodwill

     360        1,040  

Changes in Net Assets

For the three months ended June 30, 2016

 

1. Cash dividends paid

 

Resolution

 

Type

  Cash Dividends
(Millions of yen)
    Cash
Dividends
per  Share
(Yen)
   

Record
Date

 

Effective
Date

 

Resource

of
Dividends

May 13,

2016

  Common Stock     93,838       3.75    

March 31,

2016

 

June 3,

2016

  Retained Earnings

The Board of

Directors

  Eleventh Series Class XI Preferred Stock     989       10    

March 31,

2016

 

June 3,

2016

  Retained Earnings

For the three months ended June 30, 2017

 

1. Cash dividends paid

 

Resolution

 

Type

  Cash Dividends
(Millions of Yen)
    Cash
Dividends
per  Share
(Yen)
   

Record
Date

 

Effective
Date

 

Resource

of
Dividends

May 15,

2017

  Common Stock     95,173       3.75    

March 31,

2017

 

June 5,

2017

  Retained Earnings

The Board of

Directors

           

 

(Note) Cash dividends based on the resolution of the Board of Directors on May 15, 2017 include ¥33 million of cash dividends on MHFG shares held by BBT trust account.

 

- 8 -


Business Segment Information, etc.

Business Segment Information

 

1. Summary of reportable segment

MHFG has introduced an in-house company system based on the group’s diverse customer segments. The aim of this system is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking, trust and securities functions under a holding company structure, to speedily provide high-quality financial services that closely match customer needs.

Specifically, the company system is classified into the following five in-house companies, each based on a customer segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company, the Global Markets Company, and the Asset Management Company.

The services that each in-house company is in charge of are as follows:

Retail & Business Banking Company:

Services for individual customers, small and medium-sized enterprises and middle market firms in Japan

Corporate & Institutional Company:

Services for large corporations, financial institutions and public corporations in Japan

Global Corporate Company:

Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.

Global Markets Company:

Investment services with respect to interest rates, equities and credits, etc. and other services

Asset Management Company:

Development of products and provision of services that match the asset management needs of its wide range of customers from individuals to institutional investors

The reportable segment information, set forth below, is derived from the internal management reporting systems used by management to measure the performance of the Group’s operating segments. Management measures the performance of each of the operating segments in accordance with internal managerial accounting rules and practices.

 

- 9 -


2. Gross profits (excluding the amounts of credit costs of trust accounts) and Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) by reportable segment

For the three months ended June 30, 2016

 

     (Millions of yen)  
     MHFG (Consolidated)  
   Retail &
Business
Banking
Company
    Corporate &
Institutional
Company
     Global
Corporate
Company
     Global
Markets
Company
     Asset
Management
Company
    Others
(Note 2)
       

Gross profits: (excluding the amounts of credit costs of trust accounts)

     164,100       89,200        95,800        199,000        12,100       (9,302        550,897  

General and administrative expenses (excluding Non-Recurring Losses)

     180,700       48,700        57,100        44,700        7,700       (572     338,327  

Equity in income from investments in affiliates

     1,200       300        600        —          (300     812       2,612  

Others

     —         —          —          —          —         (12,122     (12,122

Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)

     (15,400       40,800          39,300        154,300        4,100       (20,039     203,060  

 

(Notes)    1.    Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general corporations.
   2.    “Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
   3.    Following the change in allocation method for transactions between each segment and “Others” made in April, 2017, reclassification was made on the above table to reflect the relevant change.

 

- 10 -


For the three months ended June 30, 2017

 

     (Millions of yen)  
     MHFG (Consolidated)  
   Retail &
Business
Banking
Company
    Corporate &
Institutional
Company
     Global
Corporate
Company
     Global
Markets
Company
     Asset
Management
Company
    Others
(Note 2)
       

Gross profits: (excluding the amounts of credit costs of trust accounts)

     159,800       79,800        74,900        118,800        12,700       (5,895        440,104  

General and administrative expenses (excluding Non-Recurring Losses)

     179,800       48,800        59,300        49,400        7,100       10,428       354,828  

Equity in income from investments in affiliates

     2,800       300        900        —          100        297       4,397  

Others

     —         —          —          —          —         (5,280     (5,280

Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)

     (17,200       31,300          16,500        69,400        5,700       (21,306     84,393  

 

(Notes)

     1.      Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general corporations.
     2.      “Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.

 

- 11 -


3. The difference between the total amounts of Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) of reportable segments and the recorded amounts in the Quarterly Consolidated Statement of Income, and the contents of the difference (Matters relating to adjustment to difference)

The above total amounts of Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) derived from internal management reporting are different from Income before income taxes recorded in the Quarterly Consolidated Statement of Income.

The contents of the difference for the three months ended June 30, 2016 and 2017, are as follows:

 

     (Millions of yen)  
     For the three months ended
June 30, 2016
     For the three months ended
June 30, 2017
 

Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)

     203,060        84,393  

Credit Costs for Trust Accounts

     —          —    

General and Administrative Expenses (non-recurring losses)

     (12,026      (7,278

Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)

     (2,901      (5,141

Gains on Reversal of Reserves for Possible Losses on Loans, and others

     8,229        24,345  

Net Gains (Losses) related to Stocks

     13,622        62,306  

Net Extraordinary Gains (Losses)

     529        (161

Others

     (17,831      (16,281
  

 

 

    

 

 

 

Income before Income Taxes recorded in Quarterly Consolidated Statement of Income

     192,683        142,182  
  

 

 

    

 

 

 

 

- 12 -


Securities

 

* In addition to “Securities” on the quarterly consolidated balance sheet, Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included. Unlisted stocks and others, the fair values of which are deemed extremely difficult to determine, are excluded.

 

1. Bonds Held to Maturity

As of March 31, 2017

 

                                                                                                                                                              
     (Millions of yen)  
     Consolidated Balance Sheet
Amount
     Fair Value      Difference  

Japanese Government Bonds

     3,059,975        3,097,144        37,168  

Foreign Bonds

     755,698        749,574        (6,124

Total

     3,815,674        3,846,718        31,043  

As of June 30, 2017

 

                                                                                                                                                              
     (Millions of yen)  
     Quarterly Consolidated
Balance Sheet Amount
     Fair Value      Difference  

Japanese Government Bonds

     2,759,961        2,789,329        29,367  

Foreign Bonds

     707,288        698,883        (8,404

Total

     3,467,250        3,488,212        20,962  

 

(Note) The fair value is based on market prices as of June 30, 2017 (March 31, 2017) and other data.

 

2. Other Securities

As of March 31, 2017

 

                                                                                                  
     (Millions of yen)  
     Acquisition Cost      Consolidated Balance Sheet
Amount
     Difference  

Stocks

     1,687,587        3,542,046        1,854,458  

Bonds

     13,223,974        13,245,155        21,181  

Japanese Government Bonds

     10,255,613        10,264,329        8,716  

Japanese Local Government Bonds

     279,863        284,472        4,608  

Short-term Bonds

     99        99        —    

Japanese Corporate Bonds

     2,688,397        2,696,253        7,856  

Other

     11,749,945        11,693,530        (56,415

Foreign Bonds

     9,099,741        8,955,436        (144,305

Other Debt Purchased

     236,419        237,781        1,361  

Other

     2,413,783        2,500,312        86,528  

Total

     26,661,507        28,480,731        1,819,224  

 

- 13 -


As of June 30, 2017

 

                                                                                                  
     (Millions of yen)  
     Acquisition Cost         Quarterly Consolidated   
Balance Sheet  Amount
     Difference  

Stocks

     1,665,738        3,613,382        1,947,643  

Bonds

     16,206,323        16,204,283        (2,040

Japanese Government Bonds

     13,174,797        13,163,148        (11,648

Japanese Local Government Bonds

     295,380        299,037        3,657  

Short-term Bonds

     99        99        —    

Japanese Corporate Bonds

     2,736,046        2,741,997        5,950  

Other

     12,238,482        12,199,882        (38,599

Foreign Bonds

     9,371,199        9,235,292        (135,906

Other Debt Purchased

     325,698        326,882        1,183  

Other

     2,541,583        2,637,707        96,123  

Total

     30,110,544        32,017,549        1,907,004  

 

(Notes)   1.
   Unrealized Gains (Losses) include ¥34,372 million and ¥48,982 million, which were recognized in the statements of income for the year ended March 31, 2017 and the three months ended June 30, 2017, respectively, by applying the fair-value hedge method.
  2.    As for the quarterly consolidated balance sheet amount (consolidated balance sheet amount), fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price, or other reasonable value during the last month of the three months ended June 30, 2017 (last month of the fiscal year ended March 31, 2017), and fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value as of June 30, 2017 (March 31, 2017).
  3.    Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the three months ended June 30, 2017 (the fiscal year ended March 31, 2017) (impairment (devaluation)), if the fair value (primarily the closing market price as of June 30, 2017 (March 31, 2017)) has significantly deteriorated compared with the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value.
     The amount of impairment (devaluation) for the fiscal year ended March 31, 2017 was ¥1,139 million.
     The amount of impairment (devaluation) for the three months ended June 30, 2017 was ¥535 million.
     The criteria for determining whether a security’s fair value has “significantly deteriorated” are outlined as follows:
    

•       Securities whose fair value is 50% or less of the acquisition cost

    

•       Securities whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower

  4.    Floating-rate Japanese Government Bonds
     Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fair value, are based on the reasonably calculated prices as book value on the quarterly consolidated balance sheet (consolidated balance sheet).
     In deriving the reasonably calculated prices, we used the Discounted Cash Flow method as well as other methods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese Government Bonds as underlying assets.

 

- 14 -


Money Held in Trust

 

1. Money Held in Trust Held to Maturity

There was no Money Held in Trust held to maturity.

 

2. Other in Money Held in Trust (other than for investment purposes and held to maturity purposes)

 

                                                                                                                 
As of March 31, 2017         
     (Millions of yen)  
     Acquisition Cost         Consolidated Balance Sheet   
Amount
     Difference  

Other in Money Held in Trust

              3,286                 3,286        —    
As of June 30, 2017         
     (Millions of yen)  
     Acquisition Cost      Quarterly Consolidated
Balance Sheet Amount
     Difference  

Other in Money Held in Trust

     3,512        3,512        —    

 

- 15 -


Derivatives Information

 

(1) Interest Rate-Related Transactions

As of March 31, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      18,745,005        (1,621     (1,621
   Options      1,206,236        775       (179

Over-the-Counter

   FRAs      30,828,579        (5,618     (5,618
   Swaps      878,154,442              109,894             109,894  
   Options      13,760,116        (100,160     (100,160

Inter-Company or Internal Transactions

   Swaps      13,874,345        32,379       32,379  
     

 

 

    

 

 

   

 

 

 

Total

     —          35,649       34,694  
     

 

 

    

 

 

   

 

 

 

 

(Notes)     1.      The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
    2.      Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

As of June 30, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

  

Futures

     20,979,955        (1,241     (1,241
  

Options

     3,893,755        793       (163

Over-the-Counter

  

FRAs

     32,252,226        1,768       1,768  
  

Swaps

     861,704,166                50,250               50,250  
  

Options

     12,775,470        (99,487     (99,487

Inter-Company or Internal Transactions

  

Swaps

     15,502,311        6,295       6,295  
     

 

 

    

 

 

   

 

 

 

Total

     —          (41,621     (42,577
     

 

 

    

 

 

   

 

 

 

 

(Notes)     1.      The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
    2.      Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

 

- 16 -


(2) Currency-Related Transactions

As of March 31, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      94,383        —         —    

Over-the-Counter

   Swaps      45,250,084        54,489       99,071  
   Forwards      112,895,843              110,932             110,932  
   Options      5,453,339        (21,795     (22,230

Inter-Company or Internal Transactions

   Swaps      3,441,048        (228,425     6,386  
   Forwards      160,189        (2,328     (2,328
     

 

 

    

 

 

   

 

 

 

Total

     —          (87,128     191,831  
     

 

 

    

 

 

   

 

 

 

 

(Notes)      1.      The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
     2.      The following transactions are excluded from the above table:
     

•       Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002) and others.

     

•       Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the consolidated balance sheet.

     

•       Transactions denominated in foreign currencies which are eliminated in consolidation.

As of June 30, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      113,664        4       4  

Over-the-Counter

   Swaps      45,508,871        84,365             109,410  
   Forwards      107,861,396                92,798       92,798  
   Options      4,860,031        (20,965     (22,294

Inter-Company or Internal Transactions

   Swaps      3,098,766        (195,824     13,084  
   Forwards      160,414        2,772       2,772  
     

 

 

    

 

 

   

 

 

 

Total

     —          (36,849     195,775  
     

 

 

    

 

 

   

 

 

 

 

(Notes)      1.      The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
     2.      The following transactions are excluded from the above table:
     

•       Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002) and others.

     

•       Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the quarterly consolidated balance sheet.

     

•       Transactions denominated in foreign currencies which are eliminated in consolidation.

 

- 17 -


(3) Stock-Related Transactions

As of March 31, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Index Futures      845,111        1,557       1,557  
   Index Futures Options          2,052,562        (97,647     (5,067

Over-the-Counter

   Equity Linked Swaps      191,842                11,513               11,513  
   Options      919,581        (5,596     (10,114
   Other      414,495        24,548       24,548  
     

 

 

    

 

 

   

 

 

 

Total

     —          (65,623     22,438  
     

 

 

    

 

 

   

 

 

 

 

(Notes)      1.      The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
     2.      Derivative transactions qualifying for hedge accounting are excluded from the above table.

As of June 30, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Index Futures      871,965        (3,786     (3,786
   Index Futures Options          2,049,886        (104,281     (8,709

Over-the-Counter

   Equity Linked Swaps      203,024        9,531       9,531  
   Options      880,813        (5,710     (10,282
   Other      425,551                28,865               28,865  
     

 

 

    

 

 

   

 

 

 

Total

     —          (75,383     15,617  
     

 

 

    

 

 

   

 

 

 

 

(Notes)      1.      The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
     2.      Derivative transactions qualifying for hedge accounting are excluded from the above table.

 

- 18 -


(4) Bond-Related Transactions

As of March 31, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures          1,179,498        (1,988     (1,988
   Futures Options      687,146                       64                      18  

Over-the-Counter

   Options        1,491,680        (181     209  
     

 

 

    

 

 

   

 

 

 

Total

     —          (2,105     (1,759
     

 

 

    

 

 

   

 

 

 

 

(Note)    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of June 30, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      2,857,247        (1,478     (1,478
   Futures Options      1,167,789        (212                      3  

Over-the-Counter

   Options          1,310,429                         0       (301
     

 

 

    

 

 

   

 

 

 

Total

     —          (1,691     (1,777
     

 

 

    

 

 

   

 

 

 

 

(Note)    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

 

(5) Commodity-Related Transactions

As of March 31, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      54,436        (189     (189

Over-the-Counter

   Swaps      5,296                         1                        1  
   Options              299,986         2,186        2,186  
     

 

 

    

 

 

   

 

 

 

Total

     —          1,997       1,997  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
  2.    Commodities include oil, copper, aluminum and others.

As of June 30, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

  

Futures

     67,625        (569     (569

Over-the-Counter

  

Swaps

     5,414                         1                        1  
  

Options

             303,833         2,199        2,199  
     

 

 

    

 

 

   

 

 

 

Total

     —          1,631       1,631  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
  2.    Commodities include oil, copper, aluminum and others.

 

- 19 -


(6) Credit Derivative Transactions

As of March 31, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

   Credit Derivatives        3,840,024                (2,751             (2,751
     

 

 

    

 

 

   

 

 

 

Total

        —          (2,751     (2,751
     

 

 

    

 

 

   

 

 

 

 

(Note)    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of June 30, 2017

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

   Credit Derivatives        3,741,968                (2,972             (2,972
     

 

 

    

 

 

   

 

 

 

Total

        —          (2,972     (2,972
     

 

 

    

 

 

   

 

 

 

 

(Note)    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

 

- 20 -


Per Share Information

Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock are based on the following information:

 

     For the three months ended
June 30, 2016
     For the three months ended
June 30, 2017
 

(1)    Net Income per Share of Common Stock

   Yen      5.29        4.66  

(The basis used for calculating Net Income per Share of
Common Stock)

     

Profit Attributable to Owners of Parent

   Millions of yen      132,639        118,290  

Amount not attributable to
Common Stock

   Millions of yen      —          —    

Profit Attributable to Owners of Parent related to Common Stock

   Millions of yen      132,639        118,290  

Average Outstanding Shares of Common Stock (during the period)

   Thousands of shares      25,039,256        25,367,097  

(2)    Diluted Net Income per Share of Common Stock

   Yen      5.22        4.66  

(The basis used for calculating Diluted Net Income per Share of Common Stock)

     

Adjustment to Profit Attributable to Owners of Parent

   Millions of yen      —          —    

Increased Number of Shares of Common Stock

   Thousands of shares      346,050        8,582  

Preferred Stock

   Thousands of shares      332,885        —    

Stock Acquisition Rights

   Thousands of shares      13,164        8,582  

Description of dilutive securities which were not included in the calculation of Diluted Net Income per Share of Common Stock as they have no dilutive effects and in which significant changes occurred after the end of the previous fiscal year

        —          —    

 

(Note)    In the calculation of Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock, MHFG shares outstanding in BBT trust account that were recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during the period. The average number of such Treasury Stock shares deducted during the period is 9,000 thousand.

Subsequent Events

There is no applicable information.

 

- 21 -


II. Others

At the meeting of the Board of Directors held on May 15, 2017, the year-end cash dividends for the 15th term were resolved as follows:

 

Total amount of year-end cash dividends

     ¥95,173 million  

Year-end cash dividends per share Common Stock

     ¥3.75  

Effective date and starting date of dividend payments

     June 5, 2017  

 

- 22 -

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