UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2007.
Commission File Number 001-33098
Mizuho Financial Group, Inc.
(Translation of registrant’s name into English)
5-5, Otemachi 1-chome
Chiyoda-ku, Tokyo 100-0004
Japan
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- .
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: November 14, 2007 | ||
| Mizuho Financial Group, Inc. | ||
| By: | /s/ Satoru Nishibori | |
| Name: | Satoru Nishibori | |
| Title: | Managing Director / CFO | |
| For Immediate Release:
|
November 14, 2007
| |
 |
Financial Statements for the First Half of Fiscal 2007
<under Japanese GAAP>
| Company Name: | Mizuho Financial Group, Inc. (“MHFG”) | |||
|
Stock Code Number (Japan): Stock Exchanges (Japan): |
8411 Tokyo Stock Exchange (First Section), Osaka Securities Exchange (First Section) |
|||
| URL: | http://www.mizuho-fg.co.jp/english/ | |||
| Address: | 5-5 Otemachi 1-chome, Chiyoda-ku, Tokyo 100-0004, Japan |
| Representative: | Name: | Terunobu Maeda | Filing of Hanki Hokokusho (scheduled): | December 27, 2007 | ||||
| Title: | President & CEO | Trading Accounts : | Established | |||||
| For Inquiry: | Name: | Mamoru Kishida | ||||||
| Title: | General Manager, Accounting | |||||||
| Phone: | +81-3-5224-2030 | |||||||
Amounts less than one million yen and one decimal place are rounded down.
1. Financial Highlights for the First Half of Fiscal 2007 (for the six months ended September 30, 2007)
(1) Consolidated Results of Operations
| (%: Changes from the previous first half) | ||||||||||||||||||
| Ordinary Income | Ordinary Profits | Net Income | Net Income per Share of Common Stock |
Diluted Net Income per Share of | ||||||||||||||
| ¥ million | % | ¥ million | % | ¥ million | % | ¥ | ¥ | |||||||||||
| 1H F2007 |
2,256,140 | 21.0 | 399,184 | (24.7 | ) | 327,061 | (16.6 | ) | 28,272.51 | 25,804.83 | ||||||||
| 1H F2006 |
1,863,970 | 9.5 | 530,155 | 17.0 | 392,338 | 15.9 | 33,498.34 | 30,787.32 | ||||||||||
| Fiscal 2006 |
4,099,654 | 748,170 | 620,965 | 51,474.49 | 48,803.07 | |||||||||||||
Reference: Equity in Income from Investments in Affiliates :
1H F2007 ¥5,886 million, 1H F2006 ¥4,201 million, Fiscal 2006 ¥9,324 million
(2) Consolidated Financial Conditions
| Total Assets | Total Net Assets | Own Capital Ratio | Total Net Assets Common Stock |
Consolidated Capital Adequacy Ratio (BIS Standard) |
|||||||
| ¥ million | ¥ million | % | ¥ | % | |||||||
| 1H F2007 |
151,711,905 | 6,226,971 | 3.0 | 321,328.20 | 11.79 | * | |||||
| 1H F2006 |
148,962,319 | 5,689,314 | 2.9 | 288,908.64 | 10.97 | ||||||
| Fiscal 2006 |
149,880,031 | 6,724,408 | 3.2 | 336,937.64 | 12.48 | ||||||
| * Preliminary |
| Reference: | Own Capital: | |||
| As of September 30, 2007: ¥4,640,955 million; As of September 30, 2006: ¥4,333,940 million; As of March 31, 2007: ¥4,911,293 million | ||||
| Note: | 1. | Own Capital Ratio was calculated as follows: (Total Net Assets - Minority Interests) / Total Assets ×100 | ||
| 2. | Consolidated Capital Adequacy Ratio (BIS Standard) is based on the “Standards for Bank Holding Company to Consider the Adequacy of Its Capital Based on Assets and Others Held by It and Its Subsidiaries Pursuant to Article 52-25 of the Banking Law” (Financial Services Agency Ordinance Announcement No. 20 March 27, 2006), commencing with Fiscal 2006. The ratio for the First Half of Fiscal 2006 was based on the previous standards. | |||
(3) Conditions of Consolidated Cash Flows
| Cash Flows from Operating Activities |
Cash Flows from Investing Activities |
Cash Flows from Financing Activities |
Cash and Cash Equivalents the period/fiscal year | |||||||
| ¥ million | ¥ million | ¥ million | ¥ million | |||||||
| 1H F2007 |
(511,678 | ) | 313,647 | (528,627 | ) | 2,363,820 | ||||
| 1H F2006 |
(3,045,302 | ) | 2,572,052 | (823,961 | ) | 2,091,375 | ||||
| Fiscal 2006 |
(3,104,934 | ) | 3,221,212 | (417,280 | ) | 3,089,030 | ||||
2. Cash Dividends for Shareholders of Common Stock
| Cash Dividends per Share | ||||||
| (Record Date) |
Interim Period-end | Fiscal year-end | Annual | |||
| ¥ | ¥ | ¥ | ||||
| Fiscal 2006 |
— | 7,000 | 7,000 | |||
| Fiscal 2007 |
— | |||||
| Fiscal 2007 (estimate) |
10,000 | 10,000 | ||||
| Note: | Please refer to p.1-3 for cash dividends for shareholders of classified stock (unlisted), the rights of which are different from those of common stock. |
3. Earnings Estimates for Fiscal 2007 (for the fiscal year ending March 31, 2008)
| (%: Changes from the previous first half) | ||||||||||||||
| Ordinary Income | Ordinary Profits | Net Income | Net Income per Share of Common Stock | |||||||||||
| ¥ million | % | ¥ million | % | ¥ million | % | ¥ | ||||||||
| Fiscal 2007 |
4,800,000 | 17.0 | 830,000 | 10.9 | 650,000 | 4.6 | 54,880.12 | |||||||
MHFG hereby revises its consolidated earnings estimates for fiscal 2007, which were announced on May 22, 2007. Please refer to “Financial Statements for the First Half of Fiscal 2007, P.1-5 1. Consolidated Results of Operations” and “Summary of Interim Results for Fiscal 2007” for the information regarding revised consolidated earnings estimates.
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Mizuho Financial Group, Inc.
4. Others
| (1) | Changes in Significant Subsidiaries during the period |
| (changes in specified subsidiaries accompanying changes in scope of consolidation): No |
| (2) | Changes in Accounting Methods and Presentation of Consolidated Financial Statements |
| (a) | Changes due to revisions of accounting standards etc.: Yes |
| (b) | Changes other than (a) above: Yes |
Please refer to:
Notes 3. 6. 15. 17. 18. 24. 37. 45. 46. 47. to consolidated balance sheet.
Notes 4. to consolidated statement of cash flows.
(3) Issued Shares
| First Half of Fiscal 2007 | First Half of Fiscal 2006 | Fiscal 2006 | ||||||||||
| Average Issued Shares |
Period-end Issued Shares |
Average Issued Shares |
Period-end Issued Shares |
Average Issued Shares |
Year-end Issued Shares | |||||||
| Common Stock |
11,688,939 | 11,396,254 | 11,942,056 | 11,872,195 | 11,907,221 | 11,872,195 | ||||||
| (Treasury Stock) |
120,773 | 4,396 | 334,288 | 264,684 | 299,671 | 265,040 | ||||||
| Common Stock (excluding Treasury Stock) |
11,568,165 | 11,391,857 | 11,607,768 | 11,607,511 | 11,607,550 | 11,607,155 | ||||||
| Fourth Series Class IV Preferred Stock |
— | — | 77,049 | — | 38,630 | — | ||||||
| Sixth Series Class VI Preferred Stock |
— | — | 77,049 | — | 38,630 | — | ||||||
| Eleventh Series Class XI Preferred Stock |
943,740 | 943,740 | 943,740 | 943,740 | 943,740 | 943,740 | ||||||
| Thirteenth Series Class XIII Preferred Stock |
36,690 | 36,690 | 36,690 | 36,690 | 36,690 | 36,690 | ||||||
Note: Listed above is the number of shares, based on which Net Income per share of common stock (consolidated basis) was
calculated.
(Reference) Non-consolidated Financial Statements for the First Half of Fiscal 2007
1. Financial Highlights for the First Half of Fiscal 2007 (for the six months ended September 30, 2007)
| (1) | Non-Consolidated Results of Operations |
| (%: Changes from the previous first half) | ||||||||||||||||||||||
| Operating Income | Operating Profits | Ordinary Profits | Net Income | Net Income per Share of Common Stock | ||||||||||||||||||
| ¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | ||||||||||||||
| 1H F2007 |
604,926 | (50.9 | ) | 595,884 | (51.3 | ) | 588,255 | (51.7 | ) | 626,454 | (49.5 | ) | 53,772.60 | |||||||||
| 1H F2006 |
1,234,363 | 931.2 | 1,225,085 | 982.2 | 1,219,706 | 979.4 | 1,241,772 | 747.7 | 103,714.54 | |||||||||||||
| Fiscal 2006 |
1,250,099 | 1,230,893 | 1,218,468 | 1,239,710 | 102,168.76 | |||||||||||||||||
(2) Non-Consolidated Financial Conditions
| Total Assets | Total Net Assets | Own Capital Ratio | Total Net Assets Common Stock | |||||
| ¥ million | ¥ million | % | ¥ | |||||
| 1H F2007 |
4,623,615 | 3,328,419 | 71.9 | 206,100.60 | ||||
| 1H F2006 |
4,772,176 | 3,178,778 | 66.6 | 185,215.51 | ||||
| Fiscal 2006 |
4,764,036 | 3,176,404 | 66.6 | 183,338.04 | ||||
| Reference: |
1. Own Capital: | |
| As of September 30, 2007: ¥3,328,419 million; As of September 30, 2006: ¥3,178,778 million; As of March 31, 2007: ¥3,176,404 million | ||
| 2. Maximum amount available for dividends as of September 30, 2007: ¥771,352 million | ||
| (note) “Maximumamount available for dividends” is calculated pursuant to Article 461, Paragraph 2 of the Company Law. | ||
| 2. | Earnings Estimates for Fiscal 2007 (for the fiscal year ending March 31, 2008) |
| (%: Changes from the previous fiscal year) | ||||||||||||||||||||||
| Operating Income | Operating Profits | Ordinary Profits | Net Income | Net Income Common Stock | ||||||||||||||||||
| ¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | ||||||||||||||
| Fiscal 2007 |
810,000 | (35.2 | ) | 790,000 | (35.8 | ) | 770,000 | (36.8 | ) | 810,000 | (34.6 | ) | 68,571.06 | |||||||||
MHFG hereby revises its non-consolidated earnings estimates for fiscal 2007, which were announced on May 22, 2007. Please refer to “Revision of Non-Consolidated Earnings Estimates for the Fiscal Year Ending March 31, 2008” released today, November 14, 2007, for the information regarding revised non-consolidated earning estimates.
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Mizuho Financial Group, Inc.
Cash Dividends for Shareholders of Classified Stock
Breakdown of cash dividends per share related to classified stock, the rights of which are different from those of common stock is as follows:
| Cash Dividends per Share | ||||||
| Interim period-end | Fiscal year-end | Annual | ||||
| ¥ | ¥ | ¥ | ||||
| Eleventh Series Class XI Preferred Stock |
||||||
| Fiscal 2006 |
— | 20,000 | 20,000 | |||
| Fiscal 2007 |
— | 20,000 | ||||
| Fiscal 2007 (estimate) |
20,000 | |||||
| Thirteenth Series Class XIII Preferred Stock |
||||||
| Fiscal 2006 |
— | 30,000 | 30,000 | |||
| Fiscal 2007 |
— | 30,000 | ||||
| Fiscal 2007 (estimate) |
30,000 | |||||
Per Share Information (consolidated basis)
| First Half of Fiscal 2007 | First Half of Fiscal 2006 | Fiscal 2006 | |||||||
| Total Net Assets per Share of Common Stock |
¥ | 321,328.20 | 288,908.63 | 336,937.64 | |||||
| Net Income per Share of Common Stock |
¥ | 28,272.51 | 33,498.33 | 51,474.49 | |||||
| Diluted Net Income per Share of Common Stock |
¥ | 25,804.83 | 30,787.31 | 48,803.07 | |||||
1. Total Net Assets per Share of Common Stock is based on the following information.
| First Half of Fiscal 2007 | First Half of Fiscal 2006 | Fiscal 2006 | |||||||
| Total Net Assets per Share of Common Stock |
|||||||||
| Total Net Assets |
¥ | million | 6,226,971 | 5,689,314 | 6,724,408 | ||||
| Deductions from Total Net Assets |
¥ | million | 2,566,445 | 2,335,804 | 2,813,521 | ||||
| Paid-in Amount of Preferred Stock |
¥ | million | 980,430 | 980,430 | 980,430 | ||||
| Cash Dividends on Preferred Stock |
¥ | million | — | — | 19,975 | ||||
| Minority Interests |
¥ | million | 1,586,015 | 1,355,374 | 1,813,115 | ||||
| Net Assets (period-end) related to Common Stock |
¥ | million | 3,660,525 | 3,353,510 | 3,910,887 | ||||
| Period-end Outstanding Shares of Common Stock, based on which Total Net Assets per Share of Common Stock was calculated |
|
Thousands of shares |
11,391 | 11,607 | 11,607 | ||||
2. Net Income per Share of Common Stock is based on the following information.
| First Half of Fiscal 2007 | First Half of Fiscal 2006 | Fiscal 2006 | |||||||
| Net Income per Share of Common Stock |
|||||||||
| Net Income |
¥ | million | 327,061 | 392,338 | 620,965 | ||||
| Amount not attributable to Common Stock |
¥ | million | — | 3,497 | 23,472 | ||||
| Cash Dividends on Preferred Stock |
¥ | million | — | — | 19,975 | ||||
| Deemed Dividends on Cancellation of Preferred Stock |
¥ | million | — | 3,497 | 3,497 | ||||
| Net Income related to Common Stock |
¥ | million | 327,061 | 388,840 | 597,492 | ||||
| Average Outstanding Shares of Common Stock (during the period) |
|
Thousands of shares |
11,568 | 11,607 | 11,607 | ||||
3. Diluted Net Income per Share of Common Stock is based on the following information.
| First Half of Fiscal 2007 | First Half of Fiscal 2006 | Fiscal 2006 | |||||||
| Diluted Net Income per Share of Common Stock |
|||||||||
| Adjustment to Net Income |
¥ | million | — | — | 18,874 | ||||
| Cash Dividends on Preferred Stock |
¥ | million | — | — | 18,874 | ||||
| Increased Number of Shares of Common Stock |
|
Thousands of shares |
1,106 | 1,022 | 1,022 | ||||
| Preferred Stock |
|
Thousands of shares |
1,106 | 1,022 | 1,022 | ||||
| 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 |
— | — | — | ||||||
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Mizuho Financial Group, Inc.
This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation, incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; revised assumptions or other changes related to our pension plans; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effectiveness of our operational, legal and other risk management policies; our ability to avoid reputational harm; and effects of changes in general economic conditions in Japan.
Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.
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Mizuho Financial Group, Inc.
1. CONSOLIDATED RESULTS OF OPERATIONS
(Please refer to Summary of Interim Results for more information)
(1) Analysis of Results of Operations
Looking back over the global economic climate during the last six months ended September 30, 2007, although economic growth in the U.S. was rather slow mainly due to the subprime mortgage problem, the overall trend in the worldwide economy was a general improvement as a whole supported by steady growth in Asia, including China. As for the Japanese economy, although there was continued improvement in corporate performance supported by robust exports, domestic demand was weak because of sluggish growth in personal consumption. Domestic corporate goods prices continued to rise, but the year-on-year rate of change in the Consumer Price Index was close to 0 percent.
As for the Japanese financial and capital markets, stock prices temporarily declined with concerns over a U.S. economic downturn but showed no marked fluctuations thereafter. In spite of a temporary rise in long-term interest rates against the anticipation of an increase in interest rates supported by the steady Japanese economy, rates during the latter half of the period remained at the same level as at the beginning of the period in response to the declining trend in U.S. interest rates.
Reflecting the above economic environment, Net Income amounted to ¥327.0 billion, decreasing by ¥65.2 billion from the corresponding period of the previous fiscal year.
Taking segment information by type of business for MHFG and its consolidated subsidiaries categorized under banking business (banking and trust banking business), securities business and other, Ordinary Profits before excluding inter-segment Ordinary Profits was ¥396.8 billion for banking business, ¥(4.3) billion for securities business and ¥13.3 billion for other. Looking at segment information by geographic area categorized under Japan, the Americas, Europe and Asia/Oceania, Ordinary Profits before excluding inter-segment Ordinary Profits was ¥331.1 billion for Japan, ¥62.1 billion for the Americas, ¥(8.6) billion for Europe and ¥25.2 billion for Asia/Oceania.
Based on the current business circumstances of Mizuho Securities, MHFG hereby revises its consolidated earnings estimates for fiscal 2007, announced on May 22, 2007, to ordinary income of ¥4,800.0 billion, ordinary profits of ¥830.0 billion, and net income of ¥650.0 billion.
The above estimates are based on information that is available at this moment and assumptions of factors that have an influence on future results of operations. Actual results may differ materially from these estimates, depending on future events. Please refer to “forward-looking statements” on page 1-4.
(2) Analysis of Financial Conditions
Consolidated total assets as of September 30, 2007 amounted to ¥151,711.9 billion, increasing by ¥1,831.8 billion from the end of the previous fiscal year mainly due to increases in Trading Assets of ¥2,067.0 billion and others.
Securities were ¥36,153.9 billion, increasing by ¥103.9 billion from the end of the previous fiscal year.
The balance of Loans and Bills Discounted amounted to ¥66,056.4 billion, increasing by ¥92.1 billion from the end of the previous fiscal year.
Deposits amounted to ¥74,167.4 billion, decreasing by ¥635.6 billion from the end of the previous fiscal year as a result of the steady growth in personal deposits being offset by decreases in deposits of corporate customers and others.
Net Cash Used in Operating Activities was ¥511.6 billion mainly due to increased market-related activity. Net Cash Provided by Investing Activities was ¥313.6 billion mainly due to sales and redemption of securities, and Net Cash Used in Financing Activities was ¥528.6 billion mainly due to repurchase of treasury stock.
As a result, Cash and Cash Equivalents as of September 30, 2007 was ¥2,363.8 billion.
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Mizuho Financial Group, Inc.
The Consolidated Capital Adequacy Ratio (Basel II BIS Standard) was 11.79%. (Preliminary)
| March 31, 2004 | March 31, 2005 | March 31, 2006 | March 31, 2007 | September 30, 2007 | |||||||||||
| Basel I |
11.35 | % | 11.91 | % | 11.59 | % | 11.58 | % | 10.90 | % | |||||
| Basel II |
12.48 | % | 11.79 | % |
(3) Basic Policy on Profit Distribution, Forecast Dividend Payment for Fiscal 2007
MHFG will continue to accumulate its Net Income steadily, place our management emphasis on ROE from the perspective of effective utilization of our capital and consider returning profits to the shareholders while maintaining and strengthening the capital base.
Based on this policy we estimate a dividend payment of ¥10,000 per share of common stock for fiscal 2007, in view of our consolidated earnings estimates for fiscal 2007, the level of Retained Earnings and other factors. We also estimate dividend payments on preferred stock as prescribed. And we have no plan to pay a dividend on common stock and preferred stock for interim fiscal 2007.
In interim fiscal 2007, we have completed the repurchase of our common shares of ¥149.9 billion and canceled all the shares repurchased, for the purpose of, among other things, offsetting the potential dilutive effect of the conversion of the Eleventh Series Class XI Preferred Stock in consideration of the possibility that the number of shares of our common stock will increase after the commencement of the conversion period from July 1, 2008.
We will continue to consider setting up additional repurchase limits and conducting share repurchase, based on market conditions, and earnings trend and other factors.
The above estimates are based on information that is available at this moment and assumptions of factors that have an influence on future results of operations. Actual results may differ materially from these estimates, depending on future events. Please refer to “forward-looking statements” on page 1-4.
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Mizuho Financial Group, Inc.
1. ORGANIZATION STRUCTURE OF MIZUHO FINANCIAL GROUP
Mizuho Financial Group (the “Group”) is composed of Mizuho Financial Group, Inc. (“MHFG”) and its affiliates. The Group provides various financial services, principally banking business, together with securities business, trust and asset management business among others.
(as of September 30, 2007)
(Note) DLIBJ Asset Management Co., Ltd. is an affiliate of MHFG.
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Mizuho Financial Group, Inc.
Of the major domestic subsidiaries and affiliates, the following companies are listed on Japanese domestic stock exchanges.
| Company Name |
Location | Main Business |
Ownership % |
Listed Stock Exchanges | ||||
| Mizuho Trust & Banking Co., Ltd. |
Chuo-Ku, Tokyo |
Trust and Banking Business |
69.9 0.2 |
Tokyo Stock Exchange (First Section) Osaka Securities Exchange (First Section) | ||||
| Mizuho Investors Securities Co., Ltd. |
Chuo-Ku, Tokyo |
Securities Business |
66.8 66.8 |
Tokyo Stock Exchange (First Section) Osaka Securities Exchange (First Section) Nagoya Stock Exchange (First Section) | ||||
| Shinko Securities Co., Ltd |
Chuo-Ku, Tokyo |
Securities Business |
27.3 27.3 |
Tokyo Stock Exchange (First Section) Osaka Securities Exchange (First Section) Nagoya Stock Exchange (First Section) |
Italic figures of Ownership Percentage denote percentage of interest held by subsidiaries.
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Mizuho Financial Group, Inc.
3. MANAGEMENT POLICY
(1) Principal Management Policy
Mizuho Financial Group (the “Group”) pursues our goals of being held in high regard by our shareholders and the financial markets and earning widespread trust from the community as Japan’s leading comprehensive financial services group on the basis of the three fundamental management philosophies below.
| a) | To provide the highest level of comprehensive financial services to our customers and clients. |
| b) | To provide an attractive, inspiring workplace for our employees where they can each demonstrate their rich individuality and ability to meet their respective challenges. |
| c) | To enable each group company to demonstrate to the utmost its own particular characteristics and strengths in its respective business field and function. |
(2) Management’s Medium/Long-term Targets and Issues to be Resolved
In order to achieve total and final completion of its “Channel to Discovery” Plan, promoted as a business strategy since fiscal 2005, and to increase corporate value significantly, the Group will further advance its Business Portfolio Strategy in which the three global groups of the Group strive to improve profitability by exploiting their respective characteristics in a manner responsive to customer needs. We will strive also to win the further confidence of domestic and overseas customers by developing a Corporate Management Strategy by careful consideration of customer perspectives and by establishing a solid compliance structure and advanced risk management system.
Business Portfolio Strategy (Please refer to “Management Structure of Mizuho” on page 1-11)
(The Global Corporate Group)
Mizuho Corporate Bank, Ltd. (“MHCB”) will continue to reinforce the global strategy it has pursued to date, in order to respond more promptly and wisely to the increasingly advanced and global management and financial issues engaging our customers. More specifically, having acquired its status as a Financial Holding Company (“FHC”) under the U.S. Bank Holding Company Act in December 2006, MHCB intends to strengthen further its operations in the Americas and expand its comprehensive investment banking business by combining banking and securities services. Also MHCB established banking subsidiaries in China in June 2007 and is striving to expand further its network of offices in the Americas, Asia, Europe, Middle East and other regions. MHCB will also accelerate efforts for full-scale deployment of forefront asset management services targeting domestic and foreign institutional investors.
Mizuho Securities Co., Ltd. (“MHSC”) will aim to become a market leader in securities and investment banking businesses offering a wide range of integrated financial products and services and intensively pursuing group synergy by actively promoting mutual collaboration within the group. In addition, by virtue of its merger with Shinko Securities Co., Ltd. (“Shinko”), MHSC intends quickly to attain the highest capabilities in product development, financial technology and marketing. MHSC and Shinko were originally proceeding with preparations for a merger scheduled for January 2008, subject to clearance from the relevant authorities. However, due to the market turmoil caused by the sub-prime mortgage situation in the United States during the negotiations for the merger ratio and other matters, both companies agreed that it would be appropriate to postpone the merger until May 2008 (scheduled date).
(The Global Retail Group)
Mizuho Bank, Ltd. (“MHBK”) will actively deploy “Personal Squares” (branches placing more priority on individual customers) in order to increase the strength of its products and services, further improve the “Mizuho Mileage Club” membership service, expand channels and develop new products for personal loans, and reinforce its asset management consulting functions to meet a wide range of personal asset management needs. In the small and medium-sized enterprise market, MHBK aims to offer the most suitable solutions tailored to ever more diverse and sophisticated customer needs by reinforcing its M&A and business inheritance advisory functions, support for initial public stock offerings and customers’ overseas business operations and so on. In addition to taking these measures, MHBK continuously strives to establish a stable revenue base by decisively streamlining its headquarters organization, transferring personnel to branches, and deepening and strengthening its customer relationships even further.
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Mizuho Financial Group, Inc.
(The Global Asset & Wealth Management Group)
Mizuho Trust & Banking Co., Ltd. (“MHTB”) plans to embark on various new types of trust businesses as it develops new products and reinforces its consulting strengths within a climate strongly influenced by the easing of regulatory controls, the revision of the Trust Law and so on. MHTB plans to expand its market share by employing a trust agency system and further strengthening business collaborations with group companies, and thereby becoming the trust bank most relied upon by its customers.
Mizuho Private Wealth Management Co., Ltd., as a fully-fledged private banking services company, aims to establish long-term relationships with customers by providing optimal, high-quality comprehensive and integrative products and services tailored to the needs of individual customers.
In addition, Dai-Ichi Kangyo Asset Management Co., Ltd. and Fuji Investment Management Co., Ltd. merged in July 2007 to form a new company called Mizuho Asset Management Co., Ltd. This new company will strive to meet a wide range of customer needs as a central player in the asset management business of the Group, together with DLIBJ Asset Management Co., Ltd. (which is due to be renamed DIAM Co., Ltd. in January 2008).
Corporate Management Strategy
In order to establish solid internal control systems, the Group will promote strengthening its compliance systems by establishing a business structure that will enable the Group to identify issues of concern at an early stage, adopt the amended regulations for international standard regarding the soundness of banks, or “Basel II”, and maintain strong disclosure and internal control practices in compliance with the U.S. Sarbanes-Oxley Act.
In promoting corporate social responsibility (CSR), the Group will particularly emphasize and focus on five different themes—involvement in environmental awareness, supporting financial education, enhancement of corporate governance, implementation of highly-responsive communications and promotion of group-wide approach to CSR—all of which are significant themes in order for the Group to coexist and develop with the community. In supporting financial education, we will make appropriate and extensive contributions towards helping primary, secondary and high school students.
In our efforts to become “a financial partner that helps customers shape their future and achieve their dreams” (an ideal implicit in the Group’s unified brand slogan, “Channel to Discovery”), the Group will work to further improve our corporate value by faithfully implementing the Business Portfolio Strategy and Corporate Management Strategy, so as to enhance our competitiveness and profitability and to fulfill our social responsibilities and public duties.
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Mizuho Financial Group, Inc.
Global Corporate Group:
The Global Corporate Group provides highly specialized and cutting-edge products and services by leveraging our
comprehensive financial capability, with close cooperation between the global corporate banking sector and the wholesale securities sector in response to the needs of large and global corporations.
Global Retail Group:
The Global Retail Group provides top-level products and services on a global scale, with close cooperation with leading domestic and international companies in response to the diversified and globalized needs of individuals as well as SMEs and middle-market corporations in Japan.
Global Asset & Wealth Management Group:
The Global Asset & Wealth Management Group provides top-level products and services on a global scale in response to the diversified and advanced customers’ needs in the business areas of trust and custody, and private banking.
Group Strategy Affiliates:
Mizuho Financial Strategy Co., Ltd.:
An advisory company for financial institutions regarding corporate management and corporate revitalization.
Mizuho Research Institute Ltd.:
A think tank.
Mizuho Information & Research Institute, Inc.:
An IT-related company.
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Mizuho Financial Group, Inc.
BASIS FOR PRESENTATION AND PRINCIPLES OF CONSOLIDATION
1. Scope of Consolidation
| a) | Number of consolidated subsidiaries: 137 |
Names of principal companies:
Mizuho Bank, Ltd.
Mizuho Corporate Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Mizuho Securities Co., Ltd.
During the period, Mizuho Corporate Bank (China), Ltd. and ten other companies were newly consolidated upon their establishment and so on.
During the period, UC Card Co., Ltd. and six other companies were excluded from the scope of consolidation as a result of partial disposal of their shares, and other factors.
b) Number of non-consolidated subsidiaries: 0
2. Application of the Equity Method
| a) | Number of affiliates under the equity method: 22 |
Names of principal companies:
The Chiba Kogyo Bank, Ltd.
Shinko Securities Co., Ltd.
During the period, UC Card Co., Ltd. and three other companies were newly included in the scope of the equity method.
During the period, Japan Mortgage Co., Ltd. was excluded from the scope of the equity method as a result of the disposal of its shares.
| b) | Non-consolidated subsidiaries and affiliates not under the equity method: |
Name of principal company:
Asian-American Merchant Bank Limited
Non-consolidated subsidiaries and affiliates not under the equity method are excluded from the scope of the equity method since such exclusion has no material effect on MHFG’s consolidated financial statements in terms of Net Income/Net Loss (amount corresponding to MHFG’s equity position), Retained Earnings (amount corresponding to MHFG’s equity position) and others.
3. Balance Sheet Dates of Consolidated Subsidiaries
| a) | Balance sheet dates of consolidated subsidiaries are as follows: |
| April 30 |
1 company | |
| June 30 |
53 companies | |
| September 30 |
61 companies | |
| The day before the last business day of December |
22 companies |
| b) | Consolidated subsidiaries with interim balance sheet dates of April 30 and the day before the last business day of December were consolidated based on their tentative financial statements as of and for the period ended June 30. Other consolidated subsidiaries were consolidated based on their financial statements as of and for the interim period ended their respective balance sheet dates. |
The necessary adjustments have been made to the financial statements for any significant transactions that took place between their respective balance sheet dates and the date of the consolidated financial statements.
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Mizuho Financial Group, Inc.
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2007
| Millions of yen | ||||
| Assets |
||||
| Cash and Due from Banks |
¥ | 3,234,898 | ||
| Call Loans and Bills Purchased |
406,491 | |||
| Receivables under Resale Agreements |
10,312,578 | |||
| Guarantee Deposits Paid under Securities Borrowing Transactions |
7,291,739 | |||
| Other Debt Purchased |
3,348,693 | |||
| Trading Assets |
12,481,601 | |||
| Money Held in Trust |
32,410 | |||
| Securities |
36,153,905 | |||
| Loans and Bills Discounted |
66,056,468 | |||
| Foreign Exchange Assets |
766,307 | |||
| Other Assets |
6,117,328 | |||
| Tangible Fixed Assets |
792,866 | |||
| Intangible Fixed Assets |
253,354 | |||
| Deferred Debenture Charges |
3 | |||
| Deferred Tax Assets |
438,617 | |||
| Customers’ Liabilities for Acceptances and Guarantees |
4,807,434 | |||
| Reserves for Possible Losses on Loans |
(782,653 | ) | ||
| Reserve for Possible Losses on Investments |
(142 | ) | ||
| Total Assets |
¥ | 151,711,905 | ||
| Liabilities |
||||
| Deposits |
¥ | 74,167,419 | ||
| Negotiable Certificates of Deposit |
8,572,632 | |||
| Debentures |
3,919,564 | |||
| Call Money and Bills Sold |
6,473,059 | |||
| Payables under Repurchase Agreements |
13,700,034 | |||
| Guarantee Deposits Received under Securities Lending Transactions |
6,754,515 | |||
| Trading Liabilities |
7,978,672 | |||
| Borrowed Money |
5,298,957 | |||
| Foreign Exchange Liabilities |
186,481 | |||
| Short-term Bonds |
1,046,363 | |||
| Bonds and Notes |
3,556,844 | |||
| Due to Trust Accounts |
1,211,478 | |||
| Other Liabilities |
7,445,823 | |||
| Reserve for Bonus Payments |
32,368 | |||
| Reserve for Employee Retirement Benefits |
36,154 | |||
| Reserve for Director and Corporate Auditor Retirement Benefits |
5,779 | |||
| Reserve for Possible Losses on Sales of Loans |
23,468 | |||
| Reserve for Contingencies |
16,542 | |||
| Reserve for Frequent Users Services |
6,196 | |||
| Reserve for Reimbursement of Deposits |
9,420 | |||
| Reserve under Special Law |
2,670 | |||
| Deferred Tax Liabilities |
127,249 | |||
| Deferred Tax Liabilities for Revaluation Reserve for Land |
105,803 | |||
| Acceptances and Guarantees |
4,807,434 | |||
| Total Liabilities |
145,484,934 | |||
| Net Assets |
||||
| Common Stock and Preferred Stock |
1,540,965 | |||
| Capital Surplus |
411,093 | |||
| Retained Earnings |
1,490,943 | |||
| Treasury Stock |
(2,426 | ) | ||
| Total Shareholders’ Equity |
3,440,575 | |||
| Net Unrealized Gains on Other Securities, net of Taxes |
1,180,567 | |||
| Net Deferred Hedge Losses, net of Taxes |
(91,961 | ) | ||
| Revaluation Reserve for Land, net of Taxes |
148,501 | |||
| Foreign Currency Translation Adjustments |
(36,728 | ) | ||
| Total Valuation and Translation Adjustments |
1,200,379 | |||
| Minority Interests |
1,586,015 | |||
| Total Net Assets |
6,226,971 | |||
| Total Liabilities and Net Assets |
¥ | 151,711,905 | ||
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Mizuho Financial Group, Inc.
NOTES TO CONSOLIDATED BALANCE SHEET
| 1. | Amounts less than one million yen are rounded down. |
| 2. | Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates, currency exchange rates, market prices of securities and related indices are recognized on a trade date basis and recorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. |
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values, assuming that such transactions were terminated and settled at the consolidated balance sheet date.
| 3. | Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving average method. Investments in non-consolidated subsidiaries and affiliates, which are not under the equity method, are stated at acquisition cost and determined by the moving average method. Other Securities which have readily determinable fair value are stated at fair value. Fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date (cost of securities sold is calculated primarily by the moving average method). Other Securities which do not have readily determinable fair value are stated at acquisition cost or amortized cost and determined by the moving average method. The net unrealized gains on Other Securities are included directly in Net Assets, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method. |
Net Unrealized Gains/Losses on Other Securities, net of Taxes have been receiving greater focus because of the considerable change in the market circumstances these days, and the values of securities deemed as market prices such as those obtained from brokers and financial information vendors have been more available. Hence, taking into account the convergence of global accounting standards, if the values deemed as market prices could be obtained by the reasonable estimate, Other Securities formerly measured at acquisition cost as securities without fair values are measured at such values.
This change decreases Other Debt Purchased by ¥7,773 million, Securities by ¥16,993 million, Net Unrealized Gains/ Losses on Other Securities, net of Taxes by ¥15,024 million, Net Deferred Tax Liabilities by ¥4,596 million and increases Deferred Tax Assets by ¥5,146 million on the consolidated balance sheet. Among Other Securities valued at acquisition cost, Reserves for Possible Losses on Loans are provided for the bonds which are issued by private placement (Article 2 Paragraph 3 of the Financial Instruments and Exchange Law) mentioned in Note 10.
| 4. | Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as given in Note 3. |
| 5. | Derivative transactions (other than transactions for trading purposes) are valued at fair value. |
| 6. | Depreciation of buildings is computed mainly by the straight-line method, and that of equipment is computed mainly by the declining-balance method, and the applicable share of estimated annual depreciation costs for the period is recorded based on the following range of useful lives. |
| Buildings: |
3 years to 50 years | |
| Equipment: |
2 years to 20 years |
| In accordance with the revision of the Corporate Tax Law of 2007, depreciation of the tangible fixed assets acquired on or after April 1, 2007 is computed by the procedure stipulated in the revised law. As a result, Ordinary Profits and Income before Income Taxes and Minority Interests decreased by ¥540 million compared with the corresponding amounts under the previously applied method. |
| As for the tangible fixed assets acquired before April 1, 2007 and depreciated to their final depreciable limit, the salvage values of them are depreciated using the straight-line method in the following five fiscal years. As a result, Ordinary Profits and Income before Income Taxes and Minority Interests both decreased by ¥1,109 million compared with the corresponding amounts under the previously applied method. |
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Mizuho Financial Group, Inc.
| 7. | Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-used software are capitalized and amortized over their estimated useful lives of mainly five years as determined by MHFG and consolidated subsidiaries. |
| 8. | Deferred assets are treated as follows: |
| (1) | Bond issuance costs are expensed as incurred. |
| (2) | Debenture issuance costs are expensed as incurred. Debenture issuance costs booked on the consolidated balance sheet as of March 31, 2006 are amortized under the straight-line method within a certain period by applying the previous accounting method based on the tentative measure stipulated in the “Tentative Solution on Accounting for Deferred Assets” (the Accounting Standards Board of Japan (“ASBJ”) Report No. 19, August 11, 2006). |
| (3) | Bonds and Debentures are stated at amortized costs computed by the straight-line method on the consolidated balance sheet. |
| Bond discounts and debenture discounts booked on the consolidated balance sheet as of March 31, 2006 are amortized under the straight-line method over the term of the bond and debenture by applying the previous accounting method and the unamortized balance is directly deducted from bonds and debentures, based on the tentative measure stipulated in the “Tentative Solution on Accounting for Deferred Assets” (ASBJ Report No. 19, August 11, 2006). |
| 9. | Assets and Liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidated banking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily at the exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in non-consolidated subsidiaries and affiliates not under the equity method, which are translated at historical exchange rates. |
| Assets and Liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the consolidated balance sheet dates. |
| 10. | Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance with internally established standards for write-offs and reserve provisions. |
For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under the Company Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions (“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described below and expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees. For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.
For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 30 below) and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows: (i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method is applied, under which the reserve is determined as the difference between the book value of the loan and its present value of future cash flows discounted using the contractual interest rate before the loan was classified as a Restructured Loan, and (ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for the losses estimated for each individual loan.
For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experience and other factors. Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses based on analyses of the political and economic climates of the countries. All claims are assessed by each claim origination department in accordance with the internally established “Self-assessment Standard,” and the results of the assessments are verified and examined by the independent examination departments. Reserves for Possible Losses on Loans are provided for on the basis of such verified assessments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale of collateral pledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are written off against the respective claims balances. The total directly written-off amount was ¥532,965 million.
The claims above include corporate bonds which are issued by private placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Law) and others.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experience and other factors for general claims and the assessment for each individual loan for other claims.
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Mizuho Financial Group, Inc.
| 11. | Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments in securities, after taking into consideration the financial condition and other factors concerning the investee company. |
| 12. | Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amount accrued at the end of the interim period, based on the estimated future payments. |
| 13. | Reserve for Employee Retirement Benefits (including Prepaid Pension Cost), which is provided for future pension payments to employees, is recorded as the required amount accrued at the end of the interim period, based on the projected benefit obligation and the estimated plan asset amounts at the end of the fiscal year. Unrecognized actuarial differences are recognized as income or expenses from the following fiscal year under the straight-line method over a certain term within the average remaining service period of the current employees. |
| 14. | Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued for this interim period based on the internally established standards. |
| 15. | Reflecting the considerable changes in the market circumstances these days, Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amount deemed necessary based on a reasonable estimate of possible future losses. |
| 16. | Reserve for Contingencies is maintained to provide against possible losses from contingencies, which are not covered by other specific reserves in off-balance transactions, trust transactions and others. The balance is an estimate of possible future losses, on an individual basis, considered to require a reserve. |
| 17. | Reserve for Frequent Users Services is provided to meet the future use of points of Mizuho Mileage Club at the amount deemed necessary based on the reasonable estimate of the future usage of points. While the Reserve was formerly included within Other Liabilities because of its limited materiality, it has been stated independently from this interim period due to its increased materiality with the increase in the number of members. Reserve for Frequent Users Services formerly included within Other Liabilities on the consolidated balance sheet as of September 30, 2006 was ¥1,250 million. |
| 18. | In accordance with “Auditing Treatment relating to Reserve defined under the Special Tax Measurement Law, Reserves defined under the Special Law and Reserve for Directors and Corporate Auditor Retirement Benefits” (The Japanese Institute of Certified Public Accountants (“JICPA”) Auditing and Assurance Practice Committee report No.42, April 13, 2007) effective from the fiscal year 2007, MHFG has adopted the report from this interim period to recognize Reserve for Reimbursement of Deposits for the deposits derecognized from the liabilities at the estimated amount of future claims for withdrawal. As a result, Ordinary Profits and Income before Income Taxes and Minority Interests both decreased by ¥9,420 million compared with the corresponding amounts under the previously applied method. |
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Mizuho Financial Group, Inc.
| 19. | Finance leases of MHFG and domestic consolidated subsidiaries that do not involve transfer of ownership to the lessee are accounted for as operating leases. |
| 20. | The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied as hedge accounting methods. |
The portfolio hedge for a large volume of small-value monetary claims and liabilities of domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by the method stipulated in the “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.24).
The effectiveness of hedging activities for the portfolio hedge for a large volume of small-value monetary claims and liabilities is assessed as follows:
| (i) | as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both the hedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, in the same maturity bucket. |
| (ii) | as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between a base interest rate index of the hedged cash flow and that of the hedging instrument. |
The effectiveness of the individual hedge is assessed based on the correlation between the fluctuation in the market or cash flows of the hedged instruments and that of the hedging instruments.
Net Deferred Hedge Losses, net of Taxes recorded on the consolidated balance sheet resulted from the application of the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), under which the overall interest rate risks inherent in loans, deposits and others are controlled on a macro-basis using derivatives transactions. These deferred hedge gains/losses are amortized as interest income or interest expenses over the remaining maturity and average remaining maturity of the respective hedging instruments. The unamortized amounts of gross deferred hedge losses and gross deferred hedge gains on the macro-hedges, before net of applicable income taxes were ¥195,174 million and ¥183,611 million, respectively.
| 21. | Domestic consolidated banking subsidiaries and a domestic consolidated trust banking subsidiary apply the deferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25). The effectiveness of the hedge is assessed by confirming both the amount for the foreign currency position of the hedging instruments of currency-swap transactions, exchange swap transactions and similar transactions as the method of hedging the foreign exchange risks of monetary claims and liabilities denominated in foreign currencies and the amount for the foreign currency position of the hedged monetary claims and liabilities denominated in foreign currency are equivalent. |
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method to portfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates in foreign currency and Other Securities in foreign currency (except for bonds) identified as hedged items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange contracts exceeds the amount of acquisition cost of the hedged foreign securities in foreign currency.
| 22. | Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains and losses are recognized in the statement of income or deferred under hedge accounting, because these inter-company derivatives are executed according to the criteria for appropriate outside third-party cover operations which are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports Nos. 24 and 25. |
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Mizuho Financial Group, Inc.
| 23. | With respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption taxes are excluded from transaction amounts. |
| 24. | Reserve under Special Law is recorded as follows: |
Reserve for Contingent Liabilities from Financial Instruments and Exchange: ¥2,670 million
This is the reserve pursuant to Article 48-3, Paragraph 1 of the Financial Instruments and Exchange Law. Reserve for Contingent Liabilities from Futures Transactions and Reserve for Contingent Liabilities from Securities Transactions, which were recognized under Article 81 of the Financial Futures Transaction Law and under Article 51 of the Securities and Exchange Law respectively, are stated as Reserve for Contingent Liabilities from Financial Instruments and Exchange from this interim period because of the enforcement of the Financial Instruments and Exchange Law on September 30, 2007.
| 25. | Investments in subsidiaries and affiliates amounted to ¥96,096 million (excluding consolidated subsidiaries). |
| 26. | Accumulated depreciation of Tangible Fixed Assets amounted to ¥703,530 million. |
| 27. | The book value of Tangible Fixed Assets adjusted for gains on sales of replaced assets and others amounted to ¥41,622 million. |
| 28. | Loans and Bills Discounted include Loans to Bankrupt Obligors of ¥31,726 million and Non-Accrual Delinquent Loans of ¥636,547 million. |
Loans to Bankrupt Obligors are loans, excluding loans written-off, on which delinquencies in payment of principal and/or interest have continued for a significant period of time or for some other reason there is no prospect of collecting principal and/or interest (“Non-Accrual Loans”), as per Article 96, Paragraph 1, Item 3, Subsections 1 to 5 or Item 4 of the Corporate Tax Law Enforcement Ordinance (Government Ordinance No. 97, 1965).
Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans for which interest payments have been deferred in order to assist or facilitate the restructuring of the obligors.
| 29. | Balance of Loans Past Due for Three Months or More: ¥6,776 million |
Loans Past Due for Three Months or More are loans for which payments of principal and/or interest have not been received for a period of three months or more beginning with the next day following the last due date for such payments, and which are not included in Loans to Bankrupt Obligors, or Non-Accrual Delinquent Loans.
| 30. | Balance of Restructured Loans: ¥514,158 million |
Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g. reduction of, or exemption from, stated interest, deferral of interest payments, extension of maturity dates, renunciation of claims) in order to assist or facilitate the restructuring of the obligors. Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans and Loans Past Due for Three Months or More are not included.
| 31. | Total balance of Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans, Loans Past Due for Three Months or More and Restructured Loans: ¥1,189,208 million |
The amounts given in Notes 28 through 31 are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.
| 32. | In accordance with JICPA Industry Audit Committee Report No. 24, bills discounted are accounted for as financing transactions, although the banking subsidiaries have rights to sell or pledge these bankers’ acceptances, commercial bills, documentary bills and foreign exchange bills. The face value amount of these bills amounted to ¥775,202 million. |
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Mizuho Financial Group, Inc.
| 33. | The following assets were pledged as collateral: |
| Trading Assets: |
¥ | 5,521,588 million | |
| Securities: |
¥ | 12,330,150 million | |
| Loans and Bills Discounted: |
¥ | 4,998,695 million | |
| Other Assets: |
¥ | 1,067 million | |
| Tangible Fixed Assets: |
¥ | 172 million | |
| The following liabilities were collateralized by the above assets: |
|||
| Deposits: |
¥ | 409,917 million | |
| Call Money and Bills Sold: |
¥ | 2,117,631 million | |
| Payables under Repurchase Agreements: |
¥ | 5,541,085 million | |
| Guarantee Deposits Received under Securities Lending Transactions: |
¥ | 6,096,792 million | |
| Borrowed Money: |
¥ | 3,550,320 million | |
| Other Liabilities: |
¥ | 8,788 million | |
In addition to the above, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥8,387 million, Trading Assets of ¥387,391 million, Securities of ¥2,551,639 million and Loans and Bills Discounted of ¥637,628 million.
None of the assets was pledged as collateral in connection with borrowings by the non-consolidated subsidiaries and affiliates.
Other Assets includes guarantee deposits of ¥121,017 million, collateral pledged for derivatives transactions of ¥412,459 million, margins for futures transactions of ¥20,402 million and other guarantee deposits of ¥10,658 million.
| 34. | In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder, net of applicable income taxes, is stated as Revaluation Reserve for Land, net of Taxes included in Net Assets. |
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations was revalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Item 4 of the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on the basis of the appraisal valuation stipulated in Item 5.
| 35. | Borrowed Money includes subordinated borrowed money of ¥760,989 million with a covenant that performance of the obligation is subordinated to that of other obligations. |
| 36. | Bonds and Notes include subordinated bonds of ¥2,054,364 million. |
| 37. | 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 Law) amounted to ¥1,538,720 million. |
The respective amounts of “Acceptances and Guarantees” and “Customers’ Liabilities for Acceptances and Guarantees” relating to the liabilities for guarantees are netted, excluding the amounts guaranteed by the Credit Guarantee Corporations which have already been netted, in accordance with the revision of the appendix forms of “Banking Law Enforcement Regulations” (Ministry of Finance Ordinance No. 10, 1982) by the “Cabinet Office Ordinance to Amend Part of Banking Law Enforcement Regulations” (Cabinet Office Ordinance No. 38, April 17, 2007).
“Acceptances and Guarantees” and “Customers’ Liabilities for Acceptances and Guarantees” on the consolidated balance sheet as of September 30, 2006 would each decrease by ¥1,489,094 million if the said netting was applied.
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Mizuho Financial Group, Inc.
| 38. | The principal amounts of money trusts and loan trusts with contracts indemnifying the principal amounts, which are entrusted to domestic consolidated trust banking subsidiaries, are ¥967,660 million and ¥117,638 million, respectively. |
| 39. | Net Assets per share of common stock: ¥321,328.20 |
| 40. | Figures for fair value and unrealized gains/losses on securities are as follows. In addition to “Securities” on the consolidated balance sheet, negotiable certificates of deposit (“NCDs”) in “Cash and Due from Banks”, certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included. The same inclusion applies to Note 41. |
Bonds Held to Maturity which have readily determinable fair value:
| Millions of yen | |||||||
| Amount on Consolidated BS |
Fair Value | Net Unrealized Gains / Losses |
|||||
| Japanese Government Bonds |
¥569,515 | ¥568,349 | ¥(1,166 | ) | |||
| Japanese Local Government Bonds |
49,261 | 49,135 | (126 | ) | |||
| Other |
276,762 | 274,770 | (1,992 | ) | |||
| Total |
¥895,539 | ¥892,254 | ¥(3,285 | ) | |||
Other Securities which have readily determinable fair value:
| Millions of yen | |||||||
| Acquisition Cost |
Amount on Consolidated BS |
Net Unrealized Gains / Losses |
|||||
| Japanese Stocks |
¥ 3,242,496 | ¥ 5,426,399 | ¥ 2,183,903 | ||||
| Japanese Bonds |
17,512,451 | 17,371,132 | (141,318) | ||||
| Japanese Government Bonds |
16,382,479 | 16,247,591 | (134,888 | ) | |||
| Japanese Local Government Bonds |
65,766 | 65,383 | (382 | ) | |||
| Japanese Corporate Bonds |
1,064,205 | 1,058,157 | (6,047 | ) | |||
| Other |
12,210,973 | 12,046,691 | (164,281) | ||||
| Total |
¥32,965,920 | ¥34,844,223 | ¥1,878,303 | ||||
Net Unrealized Gains include ¥14,090 million, which was recognized in the statement of income by applying the fair-value hedge method. As a result, the base amount to be recorded directly to Net Assets was ¥1,864,212 million and ¥1,180,436 million of the amount after the following adjustments were included in Net Unrealized Gains on Other Securities, net of Taxes:
| Difference between acquisition cost and fair value: |
¥1,864,212 million | |
| Less: Deferred Tax Liabilities: |
(640,765) million | |
| Less: Amount corresponding to Minority Interests: |
(48,318) million | |
| Amount corresponding to Net Unrealized Gains on Other Securities owned by affiliates, which corresponds to the holding share of their investor companies: |
5,308 million | |
| Amount included in Net Unrealized Gains on Other Securities, net of Taxes: |
¥1,180,436 million |
1-20
Mizuho Financial Group, Inc.
Certain Other Securities which have readily determinable 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 interim period (“devaluation”), if the fair value (primarily the closing market price at the consolidated balance sheet date) 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 devaluation for the interim period was ¥7,853 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.
| 41. | Components of securities not stated at fair value and their amount on the consolidated balance sheet are as follows: |
| Millions of yen | |||
| Amount on Consolidated BS | |||
| Other Securities: |
|||
| Non-publicly Offered Bonds |
¥ | 1,882,693 | |
| Unlisted Stock |
403,980 | ||
| Unlisted Foreign Securities |
467,711 | ||
| Other |
288,206 | ||
| 42. | Details of Money Held in Trust are as follows: |
| Millions of yen | ||||||||
| Acquisition Cost |
Amount on Consolidated BS |
Net Unrealized Gains / Losses | ||||||
| Other Money Held in Trust |
¥ | 685 | ¥ | 685 | — | |||
There is no Money Held in Trust held to maturity.
| 43. | Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥4,996 million and are included in trading securities under Trading Assets. |
MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral. Among them, the total of securities repledged was ¥9,624,508 million, securities re-loaned was ¥53 million and securities neither repledged nor re-loaned was ¥4,672,750 million, respectively.
| 44. | Overdraft protection on current accounts and contracts for the commitment line for loans are contracts by which banking subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer is in breach of contract conditions. The unutilized balance of these contracts amounted to ¥54,873,167 million. Of this amount, ¥45,259,918 million relates to contracts in which the original contractual maturity is one year or less, or which are unconditionally cancelable at any time. |
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affect future cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse the execution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation, necessity to preserve a claim or other similar reasons. The banking subsidiaries obtain, moreover, real estate, securities or others as collateral at the time the contract is entered into, if needed, and periodically monitor customers’ business conditions, based on and in accordance with internally established standards, and take measures to control credit risks such as amendments to contracts, if needed.
1-21
Mizuho Financial Group, Inc.
| 45. | Given that the “Practical Solutions on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements”(ASBJ Report No. 18, May 17, 2006) can be adopted from the fiscal year beginning on or before March 31, 2008, MHFG has adopted the new standards commencing with this period. The effect of this adoption on the consolidated statement of income is immaterial. |
| 46. | As for the tax effects of sales of investments (such as subsidiaries’ stocks) within the Group, MHFG has adopted Paragraph 30-2 of “Practical Guidelines for Tax Effects on Consolidated Financial Statements” (JICPA Laws and Regulations Committee Report No. 6, March 29, 2007) from this interim period. This application has no effect on the consolidated balance sheet. |
| 47. | The definitions of securities in “Accounting Standards for Financial Instruments” (ASBJ Statement No. 10) and in “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Laws and Regulations Committee Report No. 14) were partially revised on June 15, 2007 and on July 4, 2007 respectively, which is applicable from the fiscal year and the interim period ending on or after the enforcement date of the Financial Instruments and Exchange Law. MHFG has adopted the revised standards and guidelines commencing with this interim period. |
1-22
Mizuho Financial Group, Inc.
CONSOLIDATED STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
| Millions of yen | ||||||
| Ordinary Income |
¥ | ¥ | 2,256,140 | |||
| Interest Income |
1,520,768 | |||||
| Interest on Loans and Bills Discounted |
755,864 | |||||
| Interest and Dividends on Securities |
361,921 | |||||
| Fiduciary Income |
33,115 | |||||
| Fee and Commission Income |
295,737 | |||||
| Trading Income |
140,298 | |||||
| Other Operating Income |
108,598 | |||||
| Other Ordinary Income |
157,621 | |||||
| Ordinary Expenses |
1,856,956 | |||||
| Interest Expenses |
982,867 | |||||
| Interest on Deposits |
313,654 | |||||
| Interest on Debentures |
13,008 | |||||
| Fee and Commission Expenses |
57,057 | |||||
| Trading Expenses |
18,264 | |||||
| Other Operating Expenses |
52,453 | |||||
| General and Administrative Expenses |
559,564 | |||||
| Other Ordinary Expenses |
186,749 | |||||
| Ordinary Profits | 399,184 | |||||
| Extraordinary Gains | 28,656 | |||||
| Extraordinary Losses | 5,069 | |||||
| Income before Income Taxes and Minority Interests | 422,770 | |||||
| Income Taxes: |
||||||
| Current |
19,121 | |||||
| Deferred |
37,983 | |||||
| Minority Interests in Net Income | 38,604 | |||||
| Net Income | ¥ | 327,061 | ||||
1-23
Mizuho Financial Group, Inc.
NOTES TO CONSOLIDATED STATEMENT OF INCOME
| 1. | Amounts less than one million yen are rounded down. |
| 2. | Net Income per share of common stock for the interim period: ¥28,272.51 |
| 3. | Diluted Net Income per share of common stock for the interim period: ¥25,804.83 |
| 4. | Income or expenses on trading transactions are recognized on a trade date basis and are recorded in “Trading Income” or “Trading Expenses” on the consolidated statement of income. Trading Income and Trading Expenses include the interest received and the interest paid during the interim period, the gains or losses resulting from any change in the value of securities and other monetary claims between the beginning and the end of the interim period, and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the end of the interim period, assuming they were settled at the end of the interim period. |
| 5. | “Other Ordinary Income” includes gains on sales of stocks of ¥122,020 million. |
| 6. | “Other Ordinary Expenses” includes losses on write-offs of loans of ¥61,713 million, losses on devaluation of stocks of ¥40,086 million, provision for Reserve for Possible Losses on Sales of Loans of ¥23,468 million and provision for Reserve for Reimbursement of Deposits of ¥9,420 million. |
| 7. | “Extraordinary Gains” includes gains on recovery of written-off claims of ¥22,158 million. |
| 8. | “Extraordinary Losses” includes losses on disposition of fixed assets of ¥4,059 million. |
1-24
Mizuho Financial Group, Inc.
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
| Millions of yen | |||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ Equity | Valuation and Translation Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock and Preferred Stock |
Capital Surplus |
Retained Earnings |
Treasury Stock |
Total Shareholders’ Equity |
Net Unrealized Gains on Other Securities, net of Taxes |
Net net of Taxes |
Revaluation net of Taxes |
Foreign Currency Translation Adjustments |
Total Valuation and Translation Adjustments |
Minority Interests |
Total Net Assets |
||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2007 |
¥ | 1,540,965 | ¥ | 411,110 | ¥ | 1,440,310 | ¥ | (32,330 | ) | ¥ | 3,360,055 | ¥ | 1,550,628 | ¥ | (111,042 | ) | ¥ | 150,616 | ¥ | (38,964 | ) | ¥ | 1,551,237 | ¥ | 1,813,115 | ¥ | 6,724,408 | ||||||||||||||||||||
| Effect of Unification of Accounting Policies Applied to Foreign Subsidiaries |
¥ | — | ¥ | — | ¥ | 2,867 | ¥ | — | ¥ | 2,867 | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | 2,867 | |||||||||||||||||||||||
| Changes during the period |
|||||||||||||||||||||||||||||||||||||||||||||||
| Cash Dividends |
— | — | (101,229 | ) | — | (101,229 | ) | — | — | — | — | — | — | (101,229 | ) | ||||||||||||||||||||||||||||||||
| Net Income |
— | — | 327,061 | — | 327,061 | — | — | — | — | — | — | 327,061 | |||||||||||||||||||||||||||||||||||
| Repurchase of Treasury Stock |
— | — | — | (150,327 | ) | (150,327 | ) | — | — | — | — | — | — | (150,327 | ) | ||||||||||||||||||||||||||||||||
| Disposition of Treasury Stock |
— | 9 | — | 41 | 51 | — | — | — | — | — | — | 51 | |||||||||||||||||||||||||||||||||||
| Cancellation of Treasury Stock |
— | (9 | ) | (180,180 | ) | 180,189 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Transfer from Revaluation Reserve for Land, net of Taxes |
— | — | 2,114 | — | 2,114 | — | — | — | — | — | — | 2,114 | |||||||||||||||||||||||||||||||||||
| Effect of Exclusion of an Affiliate from the Scope of the Equity Method |
— | (16 | ) | — | — | (16 | ) | — | — | — | — | — | — | (16 | ) | ||||||||||||||||||||||||||||||||
| Effect of Decrease in the Equity Position of an Affiliate |
— | (0 | ) | — | — | (0 | ) | — | — | — | — | — | — | (0 | ) | ||||||||||||||||||||||||||||||||
| Decrease in Stock issued by MHFG held by Equity-Method Affiliates |
— | — | — | 0 | 0 | — | — | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||||
| Net Changes in Items other than Shareholders’ Equity |
— | — | — | — | — | (370,061 | ) | 19,081 | (2,114 | ) | 2,236 | (350,857 | ) | (227,100 | ) | (577,957 | ) | ||||||||||||||||||||||||||||||
| Total Changes during the period |
— | (16 | ) | 47,765 | 29,904 | 77,652 | (370,061 | ) | 19,081 | (2,114 | ) | 2,236 | (350,857 | ) | (227,100 | ) | (500,305 | ) | |||||||||||||||||||||||||||||
| Balance as of September 30, 2007 |
¥ | 1,540,965 | ¥ | 411,093 | ¥ | 1,490,943 | ¥ | (2,426) | ¥ | 3,440,575 | ¥ | 1,180,567 | ¥ | (91,961 | ) | ¥ | 148,501 | ¥ | (36,728) | ¥ | 1,200,379 | ¥ | 1,586,015 | ¥ | 6,226,971 | ||||||||||||||||||||||
1-25
Mizuho Financial Group, Inc.
NOTES TO CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
1. Amounts less than one million yen are rounded down.
2. Types and number of issued shares and of treasury stock are as follows:
| Thousands of Shares | ||||||||||
| As of March 31, 2007 |
Increase during the period |
Decrease during the period |
As of September 30, |
Remarks | ||||||
| Issued shares |
||||||||||
| Common stock |
11,872 | — | 475 | 11,396 | *1 | |||||
| Eleventh Series Class XI Preferred Stock |
943 | — | — | 943 | ||||||
| Thirteenth Series Class XIII Preferred Stock |
36 | — | — | 36 | ||||||
| Total |
12,852 | — | 475 | 12,376 | ||||||
| Treasury stock |
||||||||||
| Common stock |
265 | 215 | 476 | 4 | *2 | |||||
| Total |
265 | 215 | 476 | 4 | ||||||
| *1. | Decreases are due to cancellation of treasury stock (common stock). |
| *2. | Increases are due to repurchase of treasury stock (214 thousand shares of common stock) and repurchase of fractional shares(0 thousand shares), decreases are due to cancellation of treasury stock (475 thousand shares of common stock) and additional purchase of fractional shares (0 thousand shares). |
3. Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the six months ended September 30, 2007
| Resolution | Types |
Cash Dividends (Millions of yen) |
Cash Dividends (Yen) |
Record Date |
Effective Date | |||||||||
| June 26, 2007
|
Common Stock
|
83,081
|
7,000
|
March 31, 2007
|
||||||||||
| Ordinary General Meeting of Shareholders |
Eleventh Series Class XI Preferred Stock | 18,874 | 20,000 | March 31, 2007 | June 26, 2007 | |||||||||
| Thirteenth Series Class XIII Preferred Stock | 1,100 | 30,000 | March 31, 2007 | |||||||||||
| Total | 103,056 | |||||||||||||
1-26
Mizuho Financial Group, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
| Millions of yen | ||||
| I. Cash Flow from Operating Activities |
||||
| Income before Income Taxes and Minority Interests |
¥ | 422,770 | ||
| Depreciation |
63,372 | |||
| Losses on Impairment of Fixed Assets |
1,009 | |||
| Equity in Income from Investments in Affiliates |
(5,886 | ) | ||
| Increase (Decrease) in Reserves for Possible Losses on Loans |
(74,008 | ) | ||
| Increase (Decrease) in Reserve for Possible Losses on Investments |
(32 | ) | ||
| Increase (Decrease) in Reserve for Possible Losses on Sales of Loans |
23,468 | |||
| Increase (Decrease) in Reserve for Contingencies |
3,495 | |||
| Increase (Decrease) in Reserve for Bonus Payments |
(8,096 | ) | ||
| Increase (Decrease) in Reserve for Employee Retirement Benefits |
(595 | ) | ||
| Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits |
(705 | ) | ||
| Increase (Decrease) in Reserve for Frequent Users Services |
2,422 | |||
| Increase (Decrease) in Reserve for Reimbursement of Deposits |
9,420 | |||
| Interest Income—accrual basis |
(1,520,768 | ) | ||
| Interest Expenses—accrual basis |
982,867 | |||
| Losses (Gains) on Securities |
(116,628 | ) | ||
| Losses (Gains) on Money Held in Trust |
(58 | ) | ||
| Foreign Exchange Losses (Gains)—net |
28,435 | |||
| Losses (Gains) on Disposition of Fixed Assets |
644 | |||
| Decrease (Increase) in Trading Assets |
(2,057,483 | ) | ||
| Increase (Decrease) in Trading Liabilities |
(337,569 | ) | ||
| Decrease (Increase) in Loans and Bills Discounted |
(9,700 | ) | ||
| Increase (Decrease) in Deposits |
(685,180 | ) | ||
| Increase (Decrease) in Negotiable Certificates of Deposit |
(217,252 | ) | ||
| Increase (Decrease) in Debentures |
(804,883 | ) | ||
| Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money) |
719,171 | |||
| Decrease (Increase) in Due from Banks (excluding Due from Central Banks) |
39,775 | |||
| Decrease (Increase) in Call Loans, etc. |
(1,047,841 | ) | ||
| Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions |
1,332,471 | |||
| Increase (Decrease) in Call Money, etc. |
530,486 | |||
| Increase (Decrease) in Commercial Paper |
(30,000 | ) | ||
| Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions |
807,733 | |||
| Decrease (Increase) in Foreign Exchange Assets |
129,220 | |||
| Increase (Decrease) in Foreign Exchange Liabilities |
(153,725 | ) | ||
| Increase (Decrease) in Short-term Bonds (Liabilities) |
204,492 | |||
| Increase (Decrease) in Bonds and Notes |
379,969 | |||
| Increase (Decrease) in Due to Trust Accounts |
76,119 | |||
| Interest and Dividend Income—cash basis |
1,544,883 | |||
| Interest Expenses—cash basis |
(983,235 | ) | ||
| Other—net |
133,182 | |||
| Subtotal |
(618,240 | ) | ||
| Cash Paid in Income Taxes |
106,562 | |||
| Net Cash Used in Operating Activities |
(511,678 | ) | ||
| II. Cash Flow from Investing Activities |
||||
| Payments for Purchase of Securities |
(40,795,981 | ) | ||
| Proceeds from Sale of Securities |
29,396,607 | |||
| Proceeds from Redemption of Securities |
11,775,122 | |||
| Payments for Increase in Money Held in Trust |
(15,000 | ) | ||
| Proceeds from Decrease in Money Held in Trust |
32,145 | |||
| Payments for Purchase of Tangible Fixed Assets |
(32,915 | ) | ||
| Payments for Purchase of Intangible Fixed Assets |
(54,665 | ) | ||
| Proceeds from Sale of Tangible Fixed Assets |
7,109 | |||
| Proceeds from Sale of Intangible Fixed Assets |
386 | |||
| Proceeds from Sale of Stocks of Subsidiaries (affecting the scope of consolidation) |
838 | |||
| Net Cash Provided by Investing Activities |
313,647 | |||
| III. Cash Flow from Financing Activities |
||||
| Proceeds from Subordinated Borrowed Money |
74,000 | |||
| Repayments of Subordinated Borrowed Money |
(58,062 | ) | ||
| Proceeds from Issuance of Subordinated Bonds |
80,500 | |||
| Payments for Redemption of Subordinated Bonds |
(136,489 | ) | ||
| Proceeds from Investments by Minority Shareholders |
7,343 | |||
| Repayments to Minority Shareholders |
(185,500 | ) | ||
| Cash Dividends Paid |
(101,041 | ) | ||
| Cash Dividends Paid to Minority Shareholders |
(59,100 | ) | ||
| Payments for Repurchase of Treasury Stock |
(150,327 | ) | ||
| Proceeds from Sale of Treasury Stock |
51 | |||
| Net Cash Used in Financing Activities |
(528,627 | ) | ||
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents |
1,448 | |||
| V. Net Decrease in Cash and Cash Equivalents |
(725,210 | ) | ||
| VI. Cash and Cash Equivalents at the beginning of the period |
3,089,030 | |||
| VII. Cash and Cash Equivalents at the end of the period |
¥ | 2,363,820 | ||
1-27
Mizuho Financial Group, Inc.
NOTES TO CONSOLIDATED STATEMENT OF CASH FLOWS
| 1. | Amounts less than one million yen are rounded down. |
| 2. | For the purpose of the consolidated statement of cash flows, Cash and Cash Equivalents consists of cash and due from central banks included in “Cash and Due from Banks” on the consolidated balance sheet. |
| 3. | Cash and Cash Equivalents at the end of the period on the consolidated statement of cash flows reconciles to “Cash and Due from Banks” on the consolidated balance sheet as follows: |
| Millions of yen | ||||
| Cash and Due from Banks |
¥ | 3,234,898 | ||
| Due from Banks excluding central banks |
(871,078 | ) | ||
| Cash and Cash Equivalents |
¥ | 2,363,820 | ||
| 4. | Increase (Decrease) in Reserve for Frequent Users Services (¥621 million for the corresponding period of the previous fiscal year), formerly included in “Other – net” under “Cash Flow from Operating Activities”, is stated independently as “Increase (Decrease) in Reserve for Frequent Users Services” commencing with this period, due to the materiality of the amount. |
1-28
Mizuho Financial Group, Inc.
SEGMENT INFORMATION
1. Segment Information by Type of Business
For the six months ended September 30, 2006
| Millions of yen | |||||||||||||
| Banking Business |
Securities Business |
Other | Total | Elimination | Consolidated Results | ||||||||
| Ordinary Income |
|||||||||||||
| (1) Ordinary Income from outside customers |
1,488,724 | 296,261 | 78,983 | 1,863,970 | — | 1,863,970 | |||||||
| (2) Inter-segment Ordinary Income |
18,925 | 30,790 | 57,076 | 106,793 | (106,793 | ) | — | ||||||
| Total |
1,507,650 | 327,052 | 136,060 | 1,970,763 | (106,793 | ) | 1,863,970 | ||||||
| Ordinary Expenses |
1,036,921 | 276,100 | 119,934 | 1,432,956 | (99,142 | ) | 1,333,814 | ||||||
| Ordinary Profits |
470,729 | 50,951 | 16,126 | 537,807 | (7,651 | ) | 530,155 | ||||||
| Notes: | 1. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies. | |
| 2. Major components of type of business are as follows: | ||
| (1) Banking Business: banking and trust banking business | ||
| (2) Securities Business: securities business | ||
| (3) Other: investment advisory business and others | ||
For the six months ended September 30, 2007
| Millions of yen | ||||||||||||||
| Banking Business |
Securities Business |
Other | Total | Elimination | Consolidated Results | |||||||||
| Ordinary Income |
||||||||||||||
| (1) Ordinary Income from outside customers |
1,816,163 | 371,361 | 68,615 | 2,256,140 | — | 2,256,140 | ||||||||
| (2) Inter-segment Ordinary Income |
22,302 | 49,853 | 53,659 | 125,815 | (125,815 | ) | — | |||||||
| Total |
1,838,466 | 421,214 | 122,275 | 2,381,956 | (125,815 | ) | 2,256,140 | |||||||
| Ordinary Expenses |
1,441,606 | 425,594 | 108,946 | 1,976,146 | (119,189 | ) | 1,856,956 | |||||||
| Ordinary Profits |
396,860 | (4,379 | ) | 13,329 | 405,809 | (6,625 | ) | 399,184 | ||||||
| Notes: | 1. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies. | |
| 2. Major components of type of business are as follows: | ||
| (1) Banking Business: banking and trust banking business | ||
| (2) Securities Business: securities business | ||
| (3) Other: investment advisory business and others | ||
| 3. In accordance with the revision of the Corporate Tax Law of 2007, depreciation of the tangible fixed assets acquired on or after April 1, 2007 is computed by the procedure stipulated in the revised law. As a result, Ordinary Profits decreased by ¥444 million, ¥78 million and ¥17 million for Banking Business, Securities Business and Other, respectively, compared with the corresponding amounts under the previously applied method. | ||
| As for the tangible fixed assets acquired before April 1, 2007 and depreciated to their final depreciable limit, the salvage values of them are depreciated using the straight-line method in the following five fiscal years. As a result, Ordinary Profits decreased by ¥1,075 million, ¥15 million and ¥18 million for Banking Business, Securities Business and Other, respectively, compared with the corresponding amounts under the previously applied method. | ||
For the fiscal year ended March 31, 2007
| Millions of yen | |||||||||||||
| Banking Business |
Securities Business |
Other | Total | Elimination | Consolidated Results | ||||||||
| Ordinary Income |
|||||||||||||
| (1) Ordinary Income from outside customers |
3,236,020 | 688,225 | 175,408 | 4,099,654 | — | 4,099,654 | |||||||
| (2) Inter-segment Ordinary Income |
33,728 | 77,954 | 125,328 | 237,011 | (237,011 | ) | — | ||||||
| Total |
3,269,748 | 766,180 | 300,736 | 4,336,666 | (237,011 | ) | 4,099,654 | ||||||
| Ordinary Expenses |
2,672,194 | 646,254 | 263,359 | 3,581,808 | (230,323 | ) | 3,351,484 | ||||||
| Ordinary Profits |
597,554 | 119,925 | 37,377 | 754,857 | (6,687 | ) | 748,170 | ||||||
| Notes: | 1. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies. | |
| 2. Major components of type of business are as follows: | ||
| (1) Banking Business: banking and trust banking business | ||
| (2) Securities Business: securities business | ||
| (3) Other: investment advisory business and others | ||
| 3. Until the previous fiscal year, MHFG and certain domestic consolidated subsidiaries recognized director and corporate auditor retirement benefits as expenses at the time of payment. However, in accordance with the public announcement of the “Accounting Standard for Directors’ Bonus” (ASBJ Statement No. 4, November 29, 2005) and the “Auditing Treatment relating to Reserve defined under the Special Tax Measurement Law, Reserve defined under the Special Law and Reserve for Director and Corporate Auditor Retirement Benefits” (JICPA Auditing and Assurance Practice Committee Report No. 42, April 13, 2007), these benefits are recorded as Reserve for Director and Corporate Auditor Retirement Benefits at the required amount at the end of the fiscal year, based on internally established standards. As a result, Ordinary Expenses increased by ¥5,144 million, ¥506 million and ¥137 million for Banking Business, Securities Business and Other, respectively, and Ordinary Profits decreased by the same amounts for respective business, compared with the corresponding amounts under the previously applied method. | ||
1-29
Mizuho Financial Group, Inc.
2. Segment Information by Geographic Area
For the six months ended September 30, 2006
| Millions of yen | |||||||||||||||
| Japan | Americas | Europe | Asia/Oceania excluding Japan |
Total | Elimination | Consolidated Results | |||||||||
| Ordinary Income |
|||||||||||||||
| (1) Ordinary Income from outside customers |
1,292,138 | 278,858 | 196,835 | 96,137 | 1,863,970 | — | 1,863,970 | ||||||||
| (2) Inter-segment Ordinary Income |
25,212 | 64,508 | 19,088 | 2,215 | 111,024 | (111,024 | ) | — | |||||||
| Total |
1,317,350 | 343,366 | 215,924 | 98,353 | 1,974,994 | (111,024 | ) | 1,863,970 | |||||||
| Ordinary Expenses |
849,902 | 311,172 | 201,118 | 78,801 | 1,440,995 | (107,180 | ) | 1,333,814 | |||||||
| Ordinary Profits |
467,448 | 32,194 | 14,805 | 19,551 | 533,999 | (3,843 | ) | 530,155 | |||||||
| Notes: | 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities and correlation between business operations. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies. | |
| 2. Americas includes the United States of America and Canada, etc., Europe includes the United Kingdom, etc. and Asia/Oceania includes Hong Kong and the Republic of Singapore, etc. | ||
For the six months ended September 30, 2007
| Millions of yen | ||||||||||||||||
| Japan | Americas | Europe | Asia/Oceania excluding Japan |
Total | Elimination | Consolidated Results | ||||||||||
| Ordinary Income |
||||||||||||||||
| (1) Ordinary Income from outside customers |
1,469,729 | 353,915 | 311,241 | 121,254 | 2,256,140 | — | 2,256,140 | |||||||||
| (2) Inter-segment Ordinary Income |
26,041 | 120,061 | 40,582 | 893 | 187,578 | (187,578 | ) | — | ||||||||
| Total |
1,495,770 | 473,976 | 351,824 | 122,147 | 2,443,719 | (187,578 | ) | 2,256,140 | ||||||||
| Ordinary Expenses |
1,164,591 | 411,815 | 360,502 | 96,903 | 2,033,813 | (176,856 | ) | 1,856,956 | ||||||||
| Ordinary Profits |
331,178 | 62,160 | (8,677 | ) | 25,244 | 409,905 | (10,721 | ) | 399,184 | |||||||
| Notes: | 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and correlation between business operations. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies. | |
| 2. Americas includes the United States of America and Canada, etc., Europe includes the United Kingdom, etc. and Asia/Oceania includes Hong Kong and the Republic of Singapore, etc. | ||
For the fiscal year ended March 31, 2007
| Millions of yen | |||||||||||||||
| Japan | Americas | Europe | Asia/Oceania excluding Japan |
Total | Elimination | Consolidated Results | |||||||||
| Ordinary Income |
|||||||||||||||
| (1) Ordinary Income from outside customers |
2,822,824 | 614,136 | 445,162 | 217,530 | 4,099,654 | — | 4,099,654 | ||||||||
| (2) Inter-segment Ordinary Income |
33,941 | 166,460 | 51,229 | 4,495 | 256,126 | (256,126 | ) | — | |||||||
| Total |
2,856,765 | 780,597 | 496,392 | 222,026 | 4,355,781 | (256,126 | ) | 4,099,654 | |||||||
| Ordinary Expenses |
2,276,141 | 700,757 | 441,505 | 183,878 | 3,602,283 | (250,798 | ) | 3,351,484 | |||||||
| Ordinary Profits |
580,623 | 79,840 | 54,886 | 38,148 | 753,498 | (5,328 | ) | 748,170 | |||||||
| Notes: | 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and correlation between business operations. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies. | |
| 2. Americas includes the United States of America and Canada, etc., Europe includes the United Kingdom, etc. and Asia/Oceania includes Hong Kong and the Republic of Singapore, etc. | ||
1-30
Mizuho Financial Group, Inc.
3. Ordinary Income from Overseas Entities
For the six months ended September 30, 2006
| Millions of yen | ||||
| Ordinary Income from Overseas Entities |
Total Ordinary Income | Ordinary Income of Overseas Entities’ Ratio (%) | ||
| 571,831 | 1,863,970 | 30.6 | ||
| Notes: | 1. Ordinary Income from Overseas Entities is presented in lieu of Sales as utilized by non-financial companies. | |
| 2. Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of domestic subsidiaries and overseas subsidiaries excluding inter-segment Ordinary Income. Geographical analyses of Ordinary Income from Overseas Entities are not presented as no such information is available. | ||
For the six months ended September 30, 2007
| Millions of yen | ||||
| Ordinary Income from Overseas Entities |
Total Ordinary Income | Ordinary Income of Overseas Entities’ Ratio (%) | ||
| 786,411 | 2,256,140 | 34.8 | ||
| Notes: | 1. Ordinary Income from Overseas Entities is presented in lieu of Sales as utilized by non-financial companies. | |
| 2. Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of domestic subsidiaries and overseas subsidiaries excluding inter-segment Ordinary Income. Geographical analyses of Ordinary Income from Overseas Entities are not presented as no such information is available. | ||
For the fiscal year ended March 31, 2007
| Millions of yen | ||||
| Ordinary Income from Overseas Entities |
Total Ordinary Income | Ordinary Income of Overseas Entities’ Ratio (%) | ||
| 1,276,830 | 4,099,654 | 31.1 | ||
| Notes: | 1. Ordinary Income from Overseas Entities is presented in lieu of Sales as utilized by non-financial companies. | |
| 2. Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of domestic subsidiaries and overseas subsidiaries excluding inter-segment Ordinary Income. Geographical analyses of Ordinary Income from Overseas Entities are not presented as no such information is available. | ||
(Information not presented)
Please refer to EDINET system for information on lease transactions and derivative transactions.
For deferred taxes, securities and employee retirement benefits, please refer to the attached “Selected Financial Information For the First Half of Fiscal 2007.”
1-31
Mizuho Financial Group, Inc.
COMPARISON OF CONSOLIDATED BALANCE SHEETS (selected items)
| Millions of yen |
||||||||||||||||||||
| As of September 30, 2007 (A) |
As of September 30, 2006 (B) |
Change (A) - (B) |
As of March 31, 2007 (C) |
Change (A) - (C) |
||||||||||||||||
| Assets |
||||||||||||||||||||
| Cash and Due from Banks |
¥ | 3,234,898 | ¥ | 3,490,918 | ¥ | (256,019 | ) | ¥ | 3,993,362 | ¥ | (758,463 | ) | ||||||||
| Call Loans and Bills Purchased |
406,491 | 458,825 | (52,333 | ) | 302,336 | 104,155 | ||||||||||||||
| Receivables under Resale Agreements |
10,312,578 | 8,655,773 | 1,656,805 | 9,430,397 | 882,181 | |||||||||||||||
| Guarantee Deposits Paid under Securities Borrowing Transactions |
7,291,739 | 7,567,197 | (275,457 | ) | 8,624,211 | (1,332,471 | ) | |||||||||||||
| Other Debt Purchased |
3,348,693 | 2,907,480 | 441,212 | 3,351,499 | (2,806 | ) | ||||||||||||||
| Trading Assets |
12,481,601 | 10,584,892 | 1,896,708 | 10,414,573 | 2,067,028 | |||||||||||||||
| Money Held in Trust |
32,410 | 39,024 | (6,614 | ) | 49,558 | (17,148 | ) | |||||||||||||
| Securities |
36,153,905 | 37,093,870 | (939,964 | ) | 36,049,983 | 103,922 | ||||||||||||||
| Loans and Bills Discounted |
66,056,468 | 65,062,729 | 993,739 | 65,964,301 | 92,167 | |||||||||||||||
| Foreign Exchange Assets |
766,307 | 781,032 | (14,725 | ) | 894,797 | (128,490 | ) | |||||||||||||
| Other Assets |
6,117,328 | 5,916,106 | 201,221 | 5,739,458 | 377,870 | |||||||||||||||
| Tangible Fixed Assets |
792,866 | 796,615 | (3,749 | ) | 796,746 | (3,880 | ) | |||||||||||||
| Intangible Fixed Assets |
253,354 | 237,804 | 15,549 | 255,695 | (2,341 | ) | ||||||||||||||
| Deferred Debenture Charges |
3 | 58 | (54 | ) | 22 | (18 | ) | |||||||||||||
| Deferred Tax Assets |
438,617 | 378,429 | 60,188 | 389,024 | 49,593 | |||||||||||||||
| Customers’ Liabilities for Acceptances and Guarantees |
4,807,434 | 5,735,419 | (927,984 | ) | 4,480,551 | 326,883 | ||||||||||||||
| Reserves for Possible Losses on Loans |
(782,653 | ) | (742,778 | ) | (39,875 | ) | (856,314 | ) | 73,660 | |||||||||||
| Reserve for Possible Losses on Investments |
(142 | ) | (1,080 | ) | 937 | (174 | ) | 32 | ||||||||||||
| Total Assets |
¥ | 151,711,905 | ¥ | 148,962,319 | ¥ | 2,749,585 | ¥ | 149,880,031 | ¥ | 1,831,873 | ||||||||||
| Liabilities |
||||||||||||||||||||
| Deposits |
¥ | 74,167,419 | ¥ | 71,912,235 | ¥ | 2,255,183 | ¥ | 74,803,064 | ¥ | (635,645 | ) | |||||||||
| Negotiable Certificates of Deposit |
8,572,632 | 9,624,366 | (1,051,734 | ) | 8,805,239 | (232,607 | ) | |||||||||||||
| Debentures |
3,919,564 | 5,553,640 | (1,634,075 | ) | 4,723,806 | (804,241 | ) | |||||||||||||
| Call Money and Bills Sold |
6,473,059 | 7,229,632 | (756,572 | ) | 6,924,136 | (451,076 | ) | |||||||||||||
| Payables under Repurchase Agreements |
13,700,034 | 12,345,445 | 1,354,588 | 12,821,752 | 878,281 | |||||||||||||||
| Guarantee Deposits Received under Securities Lending Transactions |
6,754,515 | 6,402,587 | 351,927 | 5,946,781 | 807,733 | |||||||||||||||
| Commercial Paper |
— | 30,000 | (30,000 | ) | 30,000 | (30,000 | ) | |||||||||||||
| Trading Liabilities |
7,978,672 | 7,743,727 | 234,945 | 8,297,301 | (318,628 | ) | ||||||||||||||
| Borrowed Money |
5,298,957 | 4,794,865 | 504,092 | 4,563,438 | 735,519 | |||||||||||||||
| Foreign Exchange Liabilities |
186,481 | 208,210 | (21,729 | ) | 339,817 | (153,335 | ) | |||||||||||||
| Short-term Bonds |
1,046,363 | 887,683 | 158,679 | 849,870 | 196,492 | |||||||||||||||
| Bonds and Notes |
3,556,844 | 2,815,959 | 740,884 | 3,237,525 | 319,318 | |||||||||||||||
| Due to Trust Accounts |
1,211,478 | 1,145,828 | 65,649 | 1,135,358 | 76,119 | |||||||||||||||
| Other Liabilities |
7,445,823 | 6,483,986 | 961,836 | 5,770,656 | 1,675,166 | |||||||||||||||
| Reserve for Bonus Payments |
32,368 | 27,572 | 4,795 | 40,972 | (8,603 | ) | ||||||||||||||
| Reserve for Employee Retirement Benefits |
36,154 | 37,201 | (1,047 | ) | 37,641 | (1,487 | ) | |||||||||||||
| Reserve for Director and Corporate Auditor Retirement Benefits |
5,779 | — | 5,779 | 6,484 | (705 | ) | ||||||||||||||
| Reserve for Possible Losses on Sales of Loans |
23,468 | — | 23,468 | — | 23,468 | |||||||||||||||
| Reserve for Contingencies |
16,542 | 31,764 | (15,221 | ) | 13,046 | 3,495 | ||||||||||||||
| Reserve for Frequent Users Services |
6,196 | — | 6,196 | — | 6,196 | |||||||||||||||
| Reserve for Reimbursement of Deposits |
9,420 | — | 9,420 | — | 9,420 | |||||||||||||||
| Reserve under Special Law |
2,670 | 2,509 | 160 | 2,680 | (9 | ) | ||||||||||||||
| Deferred Tax Liabilities |
127,249 | 146,130 | (18,880 | ) | 218,224 | (90,974 | ) | |||||||||||||
| Deferred Tax Liabilities for Revaluation Reserve for Land |
105,803 | 114,236 | (8,433 | ) | 107,272 | (1,469 | ) | |||||||||||||
| Acceptances and Guarantees |
4,807,434 | 5,735,419 | (927,984 | ) | 4,480,551 | 326,883 | ||||||||||||||
| Total Liabilities |
145,484,934 | 143,273,005 | 2,211,928 | 143,155,622 | 2,329,311 | |||||||||||||||
| Net Assets |
||||||||||||||||||||
| Total Shareholders’ Equity |
3,440,575 | 3,121,572 | 319,003 | 3,360,055 | 80,520 | |||||||||||||||
| Total Valuation and Translation |
1,200,379 | 1,212,367 | (11,988 | ) | 1,551,237 | (350,857 | ) | |||||||||||||
| Minority Interests |
1,586,015 | 1,355,374 | 230,641 | 1,813,115 | (227,100 | ) | ||||||||||||||
| Total Net Assets |
6,226,971 | 5,689,314 | 537,656 | 6,724,408 | (497,437 | ) | ||||||||||||||
| Total Liabilities and Net Assets |
¥ | 151,711,905 | ¥ | 148,962,319 | ¥ | 2,749,585 | ¥ | 149,880,031 | ¥ | 1,831,873 | ||||||||||
Note: Amounts less than one million yen are rounded down.
1-32
Mizuho Financial Group, Inc.
COMPARISON OF CONSOLIDATED STATEMENTS OF INCOME (selected items)
| Millions of yen | |||||||||||||
| For the six months September 30, 2007 |
For the six months September 30, 2006 |
Change (A - B) |
For the fiscal year March 31, 2007 | ||||||||||
| Ordinary Income |
¥ | 2,256,140 | ¥ | 1,863,970 | ¥ | 392,170 | ¥ | 4,099,654 | |||||
| Interest Income |
1,520,768 | 1,153,833 | 366,935 | 2,562,642 | |||||||||
| Interest on Loans and Bills Discounted |
755,864 | 605,511 | 150,352 | 1,302,102 | |||||||||
| Interest and Dividends on Securities |
361,921 | 255,464 | 106,456 | 592,863 | |||||||||
| Fiduciary Income |
33,115 | 33,344 | (228 | ) | 66,958 | ||||||||
| Fee and Commission Income |
295,737 | 305,539 | (9,802 | ) | 658,899 | ||||||||
| Trading Income |
140,298 | 108,217 | 32,081 | 265,802 | |||||||||
| Other Operating Income |
108,598 | 137,863 | (29,265 | ) | 270,945 | ||||||||
| Other Ordinary Income |
157,621 | 125,170 | 32,450 | 274,405 | |||||||||
| Ordinary Expenses |
1,856,956 | 1,333,814 | 523,142 | 3,351,484 | |||||||||
| Interest Expenses |
982,867 | 618,708 | 364,158 | 1,472,378 | |||||||||
| Interest on Deposits |
313,654 | 206,150 | 107,503 | 477,042 | |||||||||
| Interest on Debentures |
13,008 | 18,222 | (5,214 | ) | 34,083 | ||||||||
| Fee and Commission Expenses |
57,057 | 56,610 | 446 | 107,775 | |||||||||
| Trading Expenses |
18,264 | 3,658 | 14,605 | 4,258 | |||||||||
| Other Operating Expenses |
52,453 | 62,303 | (9,850 | ) | 123,438 | ||||||||
| General and Administrative Expenses |
559,564 | 535,340 | 24,224 | 1,091,602 | |||||||||
| Other Ordinary Expenses |
186,749 | 57,192 | 129,557 | 552,032 | |||||||||
| Ordinary Profits |
399,184 | 530,155 | (130,971 | ) | 748,170 | ||||||||
| Extraordinary Gains |
28,656 | 119,326 | (90,670 | ) | 248,411 | ||||||||
| Extraordinary Losses |
5,069 | 16,661 | (11,591 | ) | 21,682 | ||||||||
| Income before Income Taxes and Minority Interests |
422,770 | 632,821 | (210,050 | ) | 974,898 | ||||||||
| Income Taxes: |
|||||||||||||
| Current |
19,121 | 19,610 | (488 | ) | 43,267 | ||||||||
| Deferred |
37,983 | 187,040 | (149,056 | ) | 223,699 | ||||||||
| Minority Interests in Net Income |
38,604 | 33,832 | 4,771 | 86,965 | |||||||||
| Net Income |
¥ | 327,061 | ¥ | 392,338 | ¥ | (65,277 | ) | ¥ | 620,965 | ||||
Note: Amounts less than one million yen are rounded down.
1-33
Mizuho Financial Group, Inc.
COMPARISON OF CONSOLIDATED STATEMENTS OF CASH FLOWS
| Millions of yen | ||||||||||||||||
| For the six months ended September 30, 2007 (A) |
For the six months ended September 30, 2006 (B) |
Change (A-B) |
For the fiscal year ended March 31, 2007 |
|||||||||||||
| I. Cash Flow from Operating Activities |
||||||||||||||||
| Income before Income Taxes and Minority Interests |
¥ | 422,770 | ¥ | 632,821 | ¥ | (210,050 | ) | ¥ | 974,898 | |||||||
| Depreciation |
63,372 | 63,391 | (19 | ) | 132,228 | |||||||||||
| Losses on Impairment of Fixed Assets |
1,009 | 2,789 | (1,779 | ) | 4,281 | |||||||||||
| Amortization of Goodwill |
— | 758 | (758 | ) | 758 | |||||||||||
| Equity in Income from Investments in Affiliates |
(5,886 | ) | (4,201 | ) | (1,685 | ) | (9,324 | ) | ||||||||
| Increase (Decrease) in Reserves for Possible Losses on Loans |
(74,008 | ) | (71,426 | ) | (2,582 | ) | 34,099 | |||||||||
| Increase (Decrease) in Reserve for Possible Losses on Investments |
(32 | ) | (128 | ) | 96 | (1,034 | ) | |||||||||
| Increase (Decrease) in Reserve for Possible Losses on Sales of Loans |
23,468 | — | 23,468 | — | ||||||||||||
| Increase (Decrease) in Reserve for Contingencies |
3,495 | (13,802 | ) | 17,298 | (32,520 | ) | ||||||||||
| Increase (Decrease) in Reserve for Bonus Payments |
(8,096 | ) | (8,525 | ) | 428 | 4,385 | ||||||||||
| Increase (Decrease) in Reserve for Employee Retirement Benefits |
(595 | ) | (1,467 | ) | 871 | (1,076 | ) | |||||||||
| Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits |
(705 | ) | — | (705 | ) | 6,484 | ||||||||||
| Increase (Decrease) in Reserve for Frequent Users Services |
2,422 | — | 2,422 | — | ||||||||||||
| Increase (Decrease) in Reserve for Reimbursement of Deposits |
9,420 | — | 9,420 | — | ||||||||||||
| Interest Income—accrual basis |
(1,520,768 | ) | (1,153,833 | ) | (366,935 | ) | (2,562,642 | ) | ||||||||
| Interest Expenses—accrual basis |
982,867 | 618,708 | 364,158 | 1,472,378 | ||||||||||||
| Losses (Gains) on Securities |
(116,628 | ) | (100,016 | ) | (16,611 | ) | 84,020 | |||||||||
| Losses (Gains) on Money Held in Trust |
(58 | ) | 31 | (90 | ) | (41 | ) | |||||||||
| Foreign Exchange Losses (Gains)—net |
28,435 | (30,451 | ) | 58,886 | (180,289 | ) | ||||||||||
| Losses (Gains) on Disposition of Fixed Assets |
644 | 2,992 | (2,348 | ) | 428 | |||||||||||
| Losses (Gains) on Cancellation of Employee Retirement Benefit Trust |
— | — | — | (125,961 | ) | |||||||||||
| Decrease (Increase) in Trading Assets |
(2,057,483 | ) | (523,687 | ) | (1,533,795 | ) | (255,216 | ) | ||||||||
| Increase (Decrease) in Trading Liabilities |
(337,569 | ) | (190,778 | ) | (146,791 | ) | 246,107 | |||||||||
| Decrease (Increase) in Loans and Bills Discounted |
(9,700 | ) | 354,570 | (364,270 | ) | (153,790 | ) | |||||||||
| Increase (Decrease) in Deposits |
(685,180 | ) | (1,107,502 | ) | 422,321 | 1,310,550 | ||||||||||
| Increase (Decrease) in Negotiable Certificates of Deposit |
(217,252 | ) | 265,235 | (482,488 | ) | (588,911 | ) | |||||||||
| Increase (Decrease) in Debentures |
(804,883 | ) | (1,052,665 | ) | 247,781 | (1,884,284 | ) | |||||||||
| Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money) |
719,171 | 2,053,014 | (1,333,842 | ) | 1,841,174 | |||||||||||
| Decrease (Increase) in Due from Banks (excluding Due from Central Banks) |
39,775 | 230,096 | (190,321 | ) | 751,656 | |||||||||||
| Decrease (Increase) in Call Loans, etc. |
(1,047,841 | ) | (2,396,650 | ) | 1,348,809 | (3,267,835 | ) | |||||||||
| Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions |
1,332,471 | 1,076,372 | 256,098 | 19,358 | ||||||||||||
| Increase (Decrease) in Call Money, etc. |
530,486 | (279,665 | ) | 810,151 | (446,971 | ) | ||||||||||
| Increase (Decrease) in Commercial Paper |
(30,000 | ) | (20,000 | ) | (10,000 | ) | (20,000 | ) | ||||||||
| Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions |
807,733 | (898,952 | ) | 1,706,686 | (1,354,758 | ) | ||||||||||
| Decrease (Increase) in Foreign Exchange Assets |
129,220 | 28,906 | 100,314 | (75,975 | ) | |||||||||||
| Increase (Decrease) in Foreign Exchange Liabilities |
(153,725 | ) | (181,447 | ) | 27,721 | (50,229 | ) | |||||||||
| Increase (Decrease) in Short-term Bonds (Liabilities) |
204,492 | (497,416 | ) | 701,909 | (535,229 | ) | ||||||||||
| Increase (Decrease) in Bonds and Notes |
379,969 | 378,851 | 1,117 | 753,664 | ||||||||||||
| Increase (Decrease) in Due to Trust Accounts |
76,119 | (209,060 | ) | 285,180 | (219,530 | ) | ||||||||||
| Interest and Dividend Income—cash basis |
1,544,883 | 1,118,722 | 426,161 | 2,482,364 | ||||||||||||
| Interest Expenses—cash basis |
(983,235 | ) | (578,028 | ) | (405,206 | ) | (1,387,389 | ) | ||||||||
| Board Members’ Bonuses |
— | (70 | ) | 70 | (70 | ) | ||||||||||
| Other—net |
133,182 | (528,489 | ) | 661,671 | (19,684 | ) | ||||||||||
| Subtotal |
(618,240 | ) | (3,021,005 | ) | 2,402,764 | (3,053,924 | ) | |||||||||
| Cash Paid in Income Taxes |
106,562 | (24,296 | ) | 130,859 | (51,009 | ) | ||||||||||
| Net Cash Provided by (Used in) Operating Activities |
(511,678 | ) | (3,045,302 | ) | 2,533,623 | (3,104,934 | ) | |||||||||
| II. Cash Flow from Investing Activities |
||||||||||||||||
| Payments for Purchase of Securities |
(40,795,981 | ) | (29,222,483 | ) | (11,573,498 | ) | (59,052,804 | ) | ||||||||
| Proceeds from Sale of Securities |
29,396,607 | 17,578,658 | 11,817,948 | 35,176,618 | ||||||||||||
| Proceeds from Redemption of Securities |
11,775,122 | 14,226,624 | (2,451,501 | ) | 27,231,259 | |||||||||||
| Payments for Increase in Money Held in Trust |
(15,000 | ) | (21,114 | ) | 6,114 | (56,289 | ) | |||||||||
| Proceeds from Decrease in Money Held in Trust |
32,145 | 31,911 | 234 | 56,401 | ||||||||||||
| Payments for Purchase of Tangible Fixed Assets |
(32,915 | ) | (25,568 | ) | (7,346 | ) | (77,699 | ) | ||||||||
| Payments for Purchase of Intangible Fixed Assets |
(54,665 | ) | (13,537 | ) | (41,128 | ) | (104,524 | ) | ||||||||
| Proceeds from Sale of Tangible Fixed Assets |
7,109 | 18,148 | (11,039 | ) | 48,000 | |||||||||||
| Proceeds from Sale of Intangible Fixed Assets |
386 | 214 | 172 | 1,050 | ||||||||||||
| Payments for Purchase of Stocks of Subsidiaries (affecting the scope of consolidation) |
— | (800 | ) | 800 | (800 | ) | ||||||||||
| Proceeds from Sales of Stocks of Subsidiaries (affecting the scope of consolidation) |
838 | — | 838 | — | ||||||||||||
| Net Cash Provided by (Used in) Investing Activities |
313,647 | 2,572,052 | (2,258,405 | ) | 3,221,212 | |||||||||||
| III. Cash Flow from Financing Activities |
||||||||||||||||
| Proceeds from Subordinated Borrowed Money |
74,000 | 34,757 | 39,242 | 64,600 | ||||||||||||
| Repayments of Subordinated Borrowed Money |
(58,062 | ) | (62,000 | ) | 3,937 | (112,000 | ) | |||||||||
| Proceeds from Issuance of Subordinated Bonds |
80,500 | 202,191 | (121,691 | ) | 309,334 | |||||||||||
| Payments for Redemption of Subordinated Bonds |
(136,489 | ) | (273,700 | ) | 137,210 | (350,000 | ) | |||||||||
| Proceeds from Investments by Minority Shareholders |
7,343 | — | 7,343 | 415,734 | ||||||||||||
| Repayments to Minority Shareholders |
(185,500 | ) | — | (185,500 | ) | — | ||||||||||
| Cash Dividends Paid |
(101,041 | ) | (79,748 | ) | (21,293 | ) | (79,793 | ) | ||||||||
| Cash Dividends Paid to Minority Shareholders |
(59,100 | ) | (41,525 | ) | (17,574 | ) | (60,908 | ) | ||||||||
| Payments for Repurchase of Treasury Stock |
(150,327 | ) | (603,980 | ) | 453,652 | (604,331 | ) | |||||||||
| Proceeds from Sale of Treasury Stock |
51 | 44 | 6 | 83 | ||||||||||||
| Net Cash Provided by (Used in) Financing Activities |
(528,627 | ) | (823,961 | ) | 295,334 | (417,280 | ) | |||||||||
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents |
1,448 | 657 | 790 | 2,103 | ||||||||||||
| V. Net Increase (Decrease) in Cash and Cash Equivalents |
(725,210 | ) | (1,296,553 | ) | 571,343 | (298,898 | ) | |||||||||
| VI. Cash and Cash Equivalents at the beginning of the period |
3,089,030 | 3,387,929 | (298,898 | ) | 3,387,929 | |||||||||||
| VII. Increase (Decrease) in Cash and Cash Equivalents for Exclusion from Scope of Consolidation |
— | (0 | ) | 0 | (0 | ) | ||||||||||
| VIII. Cash and Cash Equivalents at the end of the period |
¥ | 2,363,820 | ¥ | 2,091,375 | ¥ | 272,444 | ¥ | 3,089,030 | ||||||||
Note: Amounts less than one million yen are rounded down.
1-34
Mizuho Financial Group, Inc.
NON-CONSOLIDATED BALANCE SHEETS
| Millions of yen, % | |||||||||||||||||||||
| As of September 30, 2006 |
% | As of September 30, 2007 |
% | As of March 31, 2007 (Selected Items) |
% | ||||||||||||||||
| Assets |
|||||||||||||||||||||
| Current Assets |
|||||||||||||||||||||
| Cash and Due from Banks |
¥ | 10,097 | ¥ | 7,959 | ¥ | 2,726 | |||||||||||||||
| Accounts Receivable |
248,545 | 124,418 | 248,480 | ||||||||||||||||||
| Other Current Assets |
8,240 | 6,655 | 7,142 | ||||||||||||||||||
| Total Current Assets |
266,883 | 5.6 | 139,033 | 3.0 | 258,349 | 5.4 | |||||||||||||||
| Fixed Assets |
|||||||||||||||||||||
| Tangible Fixed Assets |
693 | 1,019 | 952 | ||||||||||||||||||
| Intangible Fixed Assets |
3,867 | 3,799 | 4,199 | ||||||||||||||||||
| Investments |
4,500,580 | 4,479,762 | 4,500,535 | ||||||||||||||||||
| Investments in Subsidiaries and Affiliates |
4,496,426 | 4,474,686 | 4,496,431 | ||||||||||||||||||
| Other Investments |
4,154 | 5,076 | 4,104 | ||||||||||||||||||
| Total Fixed Assets |
4,505,141 | 94.4 | 4,484,581 | 97.0 | 4,505,687 | 94.6 | |||||||||||||||
| Deferred Assets |
152 | 0.0 | — | — | — | — | |||||||||||||||
| Total Assets |
¥ | 4,772,176 | 100.0 | ¥ | 4,623,615 | 100.0 | ¥ | 4,764,036 | 100.0 | ||||||||||||
| Liabilities |
|||||||||||||||||||||
| Current Liabilities |
|||||||||||||||||||||
| Short-term Borrowings |
¥ | 1,380,000 | ¥ | 1,130,000 | ¥ | 1,380,000 | |||||||||||||||
| Short-term Bonds |
210,000 | 160,000 | 203,000 | ||||||||||||||||||
| Reserve for Bonus Payments |
189 | 236 | 187 | ||||||||||||||||||
| Other Current Liabilities |
1,086 | 2,214 | 1,906 | ||||||||||||||||||
| Total Current Liabilities |
1,591,275 | 33.4 | 1,292,450 | 27.9 | 1,585,093 | 33.3 | |||||||||||||||
| Non-Current Liabilities |
|||||||||||||||||||||
| Reserve for Employee Retirement Benefits |
572 | 824 | 704 | ||||||||||||||||||
| Reserve for Director and Corporate Auditor Retirement Benefits |
— | 414 | 648 | ||||||||||||||||||
| Other Non-Current Liabilities |
1,549 | 1,505 | 1,185 | ||||||||||||||||||
| Total Non-Current Liabilities |
2,121 | 0.0 | 2,745 | 0.1 | 2,538 | 0.0 | |||||||||||||||
| Total Liabilities |
1,593,397 | 33.4 | 1,295,195 | 28.0 | 1,587,631 | 33.3 | |||||||||||||||
| Net Assets |
|||||||||||||||||||||
| Shareholders’ Equity |
|||||||||||||||||||||
| Common Stock and Preferred Stock |
1,540,965 | 32.3 | 1,540,965 | 33.3 | 1,540,965 | 32.3 | |||||||||||||||
| Capital Surplus |
|||||||||||||||||||||
| Capital Reserve |
385,241 | 385,241 | 385,241 | ||||||||||||||||||
| Total Capital Surplus |
385,241 | 8.0 | 385,241 | 8.3 | 385,241 | 8.1 | |||||||||||||||
| Retained Earnings |
|||||||||||||||||||||
| Appropriated Reserve |
4,350 | 4,350 | 4,350 | ||||||||||||||||||
| Other Retained Earnings |
1,249,924 | 1,400,226 | 1,247,876 | ||||||||||||||||||
| Retained Earnings Brought Forward |
1,249,924 | 1,400,226 | 1,247,876 | ||||||||||||||||||
| Total Retained Earnings |
1,254,274 | 26.3 | 1,404,576 | 30.4 | 1,252,226 | 26.3 | |||||||||||||||
| Treasury Stock |
(1,713 | ) | (0.0 | ) | (2,369 | ) | (0.0 | ) | (2,037 | ) | (0.0 | ) | |||||||||
| Total Shareholders’ Equity |
3,178,767 | 66.6 | 3,328,414 | 72.0 | 3,176,394 | 66.7 | |||||||||||||||
| Valuation and Translation Adjustments |
|||||||||||||||||||||
| Net Unrealized Gains on Other Securities, net of Taxes |
10 | 0.0 | 5 | 0.0 | 9 | 0.0 | |||||||||||||||
| Total Valuation and Translation Adjustments |
10 | 0.0 | 5 | 0.0 | 9 | 0.0 | |||||||||||||||
| Total Net Assets |
3,178,778 | 66.6 | 3,328,419 | 72.0 | 3,176,404 | 66.7 | |||||||||||||||
| Total Liabilities and Net Assets |
¥ | 4,772,176 | 100.0 | ¥ | 4,623,615 | 100.0 | ¥ | 4,764,036 | 100.0 | ||||||||||||
1-35
Mizuho Financial Group, Inc.
NON-CONSOLIDATED STATEMENTS OF INCOME
| Millions of yen, % | ||||||||||||||||||
| For the six months ended September 30, 2006 |
% | For the six months ended September 30, 2007 |
% | For the fiscal year ended March 31,
2007 |
% | |||||||||||||
| Operating Income |
¥1,234,363 | 100.0 | ¥604,926 | 100.0 | ¥1,250,099 | 100.0 | ||||||||||||
| Operating Expenses |
9,277 | 0.8 | 9,042 | 1.5 | 19,205 | 1.5 | ||||||||||||
| General and Administrative Expenses |
9,277 | 9,042 | 19,205 | |||||||||||||||
| Operating Profits |
1,225,085 | 99.2 | 595,884 | 98.5 | 1,230,893 | 98.5 | ||||||||||||
| Non-Operating Income |
185 | 0.0 | 258 | 0.0 | 214 | 0.0 | ||||||||||||
| Non-Operating Expenses |
5,564 | 0.4 | 7,887 | 1.3 | 12,640 | 1.0 | ||||||||||||
| Ordinary Profits |
1,219,706 | 98.8 | 588,255 | 97.2 | 1,218,468 | 97.5 | ||||||||||||
| Extraordinary Gains |
24,563 | 2.0 | 38,377 | 6.4 | 24,809 | 2.0 | ||||||||||||
| Extraordinary Losses |
2,730 | 0.2 | 254 | 0.0 | 3,640 | 0.3 | ||||||||||||
| Income before Income Taxes |
1,241,539 | 100.6 | 626,378 | 103.6 | 1,239,637 | 99.2 | ||||||||||||
| Income Taxes: |
||||||||||||||||||
| Current |
2 | 9 | 5 | |||||||||||||||
| Deferred |
(235 | ) | (84 | ) | (78 | ) | ||||||||||||
| Total Income Taxes |
(233 | ) | (0.0 | ) | (75 | ) | (0.0 | ) | (73 | ) | (0.0 | ) | ||||||
| Net Income |
¥1,241,772 | 100.6 | ¥626,454 | 103.6 | ¥1,239,710 | 99.2 | ||||||||||||
1-36
Mizuho Financial Group, Inc.
NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
| Millions of yen | |||||||||||||||||||||||||||||||||||||||
| Shareholders’ Equity | Valuation and Translation Adjustments |
||||||||||||||||||||||||||||||||||||||
| Capital Surplus | Retained Earnings |
||||||||||||||||||||||||||||||||||||||
| Common Stock and Preferred Stock |
Capital Reserve |
Other Capital Surplus |
Total Capital Surplus |
Appropriated Reserve |
Other Retained Earnings |
Total Retained Earnings |
Treasury Stock |
Total Shareholders’ Equity |
Net Unrealized Gains on Other Securities, net of Taxes |
Total Net Assets |
|||||||||||||||||||||||||||||
| Retained Earnings Brought Forward |
|||||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2007 |
¥ | 1,540,965 | ¥ | 385,241 | — | ¥ | 385,241 | ¥ | 4,350 | ¥ | 1,247,876 | ¥ | 1,252,226 | ¥ | (2,037 | ) | ¥ | 3,176,394 | ¥9 | ¥ | 3,176,404 | ||||||||||||||||||
| Changes during the period |
|||||||||||||||||||||||||||||||||||||||
| Cash Dividends |
— | — | — | — | — | (103,056 | ) | (103,056 | ) | — | (103,056 | ) | — | (103,056 | ) | ||||||||||||||||||||||||
| Net Income |
— | — | — | — | — | 626,454 | 626,454 | — | 626,454 | — | 626,454 | ||||||||||||||||||||||||||||
| Repurchase of Treasury Stock |
— | — | — | — | — | — | — | (371,429 | ) | (371,429 | ) | — | (371,429 | ) | |||||||||||||||||||||||||
| Disposition of Treasury Stock |
— | — | 9 | 9 | — | — | — | 41 | 51 | — | 51 | ||||||||||||||||||||||||||||
| Cancellation of Treasury Stock |
— | — | (9 | ) | (9 | ) | — | (371,046 | ) | (371,046 | ) | 371,055 | — | — | — | ||||||||||||||||||||||||
| Net Changes in Items other than Shareholders’ Equity |
— | — | — | — | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||||||
| Total Changes during the period |
— | — | — | — | — | 152,350 | 152,350 | (331 | ) | 152,019 | (4 | ) | 152,014 | ||||||||||||||||||||||||||
| Balance as of September 30, 2007 |
¥ | 1,540,965 | ¥ | 385,241 | — | ¥ | 385,241 | ¥ | 4,350 | ¥ | 1,400,226 | ¥ | 1,404,576 | ¥ | (2,369 | ) | ¥ | 3,328,414 | ¥5 | ¥ | 3,328,419 | ||||||||||||||||||
1-37
SUMMARY OF INTERIM RESULTS
For Fiscal 2007
< under Japanese GAAP >
Summary Results for the First Half of Fiscal 2007
I. Summary of Income Analysis
| · | Consolidated Net Business Profits |
| • | Consolidated Net Business Profits for the first half of fiscal 2007 decreased by JPY 33.6 billion on a year-on-year basis. |
| • | Net Business Profits from the banking subsidiaries for the same period increased by JPY 21.0 billion on a year-on-year basis, recovering significantly from a decrease in profits for the first quarter by JPY 37.9 billion compared with the corresponding period of the previous fiscal year. The increase was due to an increase in income from Customer Groups, particularly that in net interest income from deposit and loan business, and strong market-related income. |
| • | Meanwhile, Mizuho Securities recorded a significant decline of its profitability (a decrease of JPY 53.0 billion in Consolidated Ordinary Profits on a year-on-year basis), suffering from the dislocation in the global financial market which stemmed from the US subprime loan issues. |
(Consolidated)
| 1H of FY2007 | ||||
| Change from 1H of FY2006 | ||||
| (JPY Bn) | ||||
| Consolidated Gross Profits |
987.8 | -9.6 | ||
| Consolidated Net Business Profits *1 |
414.0 | -33.6 | ||
| Credit-related Costs |
-44.6 | -137.7 | ||
| Net Gains related to Stocks *2 |
85.1 | -4.7 | ||
| Ordinary Profits |
399.1 | -130.9 | ||
| Net Income |
327.0 | -65.2 | ||
| *1: | Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments |
| *2: | Gains of JPY 14.7 billion on sale of stock associated with credit and alternative investments, which we made as part of our efforts to diversify sources of our market-related income, were recorded as Net Gains related to Stocks. |
| · | Consolidated Net Income |
| • | Consolidated Net Income for the first half of fiscal 2007 decreased by JPY 65.2 billion to JPY 327.0 billion. This was mainly because, together with the aforementioned factors, Credit-related Costs in this period reverted to a net provision from a net reversal of JPY 93.0 billion in the corresponding period of the previous fiscal year. |
| • | Credit-related Costs increased on a year-on-year basis as we revised obligor ratings, especially for SME and other obligors with the relatively lower ratings, in light of uncertainty over the economy. |
| • | The total impact of the dislocation in the global financial market stemmed from the US subprime loan issues on the Group’s P&L for the first half of fiscal 2007 was slightly less than JPY 70.0 billion. |
[Breakdown of the P&L impact (including overseas subsidiaries)]
| • Banking subsidiaries |
| Losses on the sale of securitization products and others : approx. JPY -2.0 Bn |
| Reserve for Possible Losses on Sales of Loans : approx. JPY -23.0 Bn |
| Others (Credit-related Costs associated with SIVs* and profits from hedging by CDS) : approx. JPY -8.0 Bn |
| • Mizuho Securities Co., Ltd. (Trading losses on securitization products) : approx JPY -35.0 Bn |
| * | Structured Investment Vehicle (refer to section III described later) |
(Reference) 3 Banks
| 1H of FY2007 | ||||
| Change from 1H of FY2006 | ||||
| (JPY Bn) | ||||
| Gross Profits |
849.0 | 32.1 | ||
| G&A Expenses (excluding Non-Recurring Losses) |
-434.7 | -11.0 | ||
| Net Business Profits |
414.2 | 21.0 | ||
| Credit-related Costs |
-53.8 | -139.9 | ||
| Net Gains related to Stocks |
73.9 | -7.5 | ||
| Ordinary Profits |
319.7 | -130.9 | ||
| Net Income |
326.0 | -36.6 | ||
(Consolidated)
| 1H of FY2007 | ||||||
| Change from 1H of FY2006 |
||||||
| EPS *1 (JPY) |
25,804 | -4,982 | ||||
| ROE *2 |
13.6 | % | -3.4 | % | ||
| *1: | Fully diluted EPS: Diluted Net Income for the 1H per Share of Common Stock* [*Calculated under the assumption that all dilutive convertible securities are converted at the price calculated based on the market price at the beginning of the fiscal year.] |
| *2: | Return on Equity = Annualized Net Income **/ [{(Total Shareholders’ Equity + Total Valuation and Translation Adjustments) <beginning> *** + (Total Shareholders’ Equity + Total Valuation and Translation Adjustments) <half-year-end>} /2 ]X 100 |
| [** Net Income for the 1H of FY2007 (Apr. 1—Sep. 30, 2007) X 365 / 183] |
| [*** Figures for Apr. 1, 2006 calculated using former “Total Shareholders’ Equity” data] |
2-1
II. Steady Enhancement of the Group’s Comprehensive Profitability
| · | Net Interest Income |
| • | The average loan balance for the first half of fiscal 2007 continued to increase mainly driven by expansion of overseas lending. |
| • | In addition, the domestic loan-and-deposit rate margin for the same period steadily improved by 0.13% compared with the corresponding period of the previous fiscal year. |
| • | Despite some factors including a decline in net dividend and interest income related to equity and other investments, due to an increase in net interest income from deposit and loan business backed by the aforementioned improvement in the domestic loan-and-deposit rate margin, Consolidated Net Interest Income for the same period increased by JPY 2.7 billion on a year-on-year basis. |
(Consolidated Net Interest Income for the first quarter of fiscal 2007 decreased by JPY 5.3 billion on a year-on-year basis).
| * | Aggregate average balance of the 3 Banks for the period, excluding Trust Account and loans to Mizuho Financial Group, Inc. |
| ** | Aggregate figures of domestic operations of Mizuho Bank and Mizuho Corporate Bank after excluding loans to Mizuho Financial Group, Inc., Deposit Insurance Corporation of Japan and the Japanese Government. |
| · | Non-Interest Income |
| • | Net Fee and Commission Income of the 3 Banks remained flat at JPY 179.2 billion compared with the corresponding period of the previous fiscal year. |
| • | As for our business with individual customers, fee income related to investment trusts and individual annuities continued to increase. |
| • | As for our business with corporate customers, fee and commission income from solution-related business and foreign exchange business decreased, despite an increase in that from overseas business. |
2-2
III. Financial Soundness
| · | The Group maintains its financial soundness at a high level. |
| · | In response to changes in the market conditions, we have taken the following actions since the first half of fiscal 2007 in light of U.S.GAAP. |
| • | Expansion of scope for fair value measurement |
| – | Adoption of fair value measurement for 96% of the total balance of Other Securities (excluding stocks, private placement bonds guaranteed by our banking subsidiaries.) |
| – | Unrealized losses associated with expansion of the scope is approximately JPY 25.0 billion. |
| • | Reserve for Possible Losses on Sales of Loans |
| – | Recorded reserve of JPY 23.4 billion for possible losses on sales of loans (approximately JPY 860.0 billion), out of those related to LBO and others. |
| · | The total balance of securitization products and the breakdown as o f the end of September 2007 are shown on the right table. |
The outstanding balance of investments and loans associated with SIVs is approximately JPY 25.0 billion, the vast majority of which has already been provisioned. Moreover, there is no such case that we established an SIV which invests in securitization products, and we provide liquidity support and other assistance for it.
| September 30, 2007 | ||||||
| Change from March 31, 2007 |
||||||
| (JPY Bn) | ||||||
| Consolidated Capital Adequacy Ratio |
11.79 | % | -0.69 | % | ||
| (Total Risk-based Capital) |
(8,325.2 | ) | (-516.0 | ) | ||
| Tier I Capital Ratio |
6.97 | % | 0.01 | % | ||
| (Tier I Capital) |
(4,918.7 | ) | (-14.8 | ) | ||
| Net Deferred Tax Assets (DTAs) (Consolidated) |
311.3 | 140.5 | ||||
| Net DTAs / Tier 1 Ratio |
6.3 | % | 2.8 | % | ||
| Disclosed Claims under the Financial Reconstruction Law (3 Banks) |
1,268.7 | 22.0 | ||||
| NPL Ratio |
1.69 | % | 0.04 | % | ||
| (Net NPL Ratio *1) |
(0.79 | %) | (0.12 | %) | ||
| Unrealized Gains on Other Securities *2 (Consolidated) |
1,864.2 | -572.9 | ||||
| *1: | (Disclosed Claims under the Financial Reconstruction Law - Reserves for Possible Losses on Loans) / (Total Claims - Reserves for Possible Losses on Loans) X 100 |
| *2: | The base amount to be recorded directly to Net Assets after tax and other necessary adjustments |
[The Group in total]
| [Managerial accounting basis] |
September 30, 2007 | |
| Securitization Products |
JPY 5.6 Tn (JPY 0.9 Tn)*1 | |
| Foreign currency denominated |
JPY 1.8 Tn (JPY 0.5 Tn) | |
| RMBS related (including CDO) *2 |
JPY 0.8 Tn (JPY 0.4 Tn) |
| *1: | Figures in brackets are the outstanding balance of Mizuho Securities (consist entirely of trading account, including overseas subsidiaries.) |
| *2: | Including securitization products (RMBS· CDO) that include U.S subprime morgage loans as underlying assets. (3 Banks: Approx. JPY6.0 Bn, Mizuho Securities: JPY0.1 Tn, including overseas subsidiaries.) |
IV. Disciplined Capital Management
| · | Repurchase and Cancellation of Own Shares (Common Shares) |
| • | In September 2007, we repurchased and cancelled approximately JPY 149.9 billion (214,900 shares) of our own shares (common shares) (Period of repurchase: From August to September 2007). The repurchase and cancellation were conducted for the purpose of, among other things, offsetting the potential dilutive effect of the conversion of the Eleventh Series Class XI Preferred Stock (JPY 943.7 billion in issued value) in consideration of the possibility that the number of shares of our common stock will increase after the commencement of the conversion period from July 1, 2008. |
We continue to consider setting up additional repurchase limits and conducting share repurchase, based on market conditions, our earning trends and other factors.
| · | Repurchase and Cancellation of Treasury Stock Held by Our Subsidiary |
| • | On May 28, 2007, we repurchased and cancelled all the treasury stock (261,040.83 shares of common stock, JPY 221.1 billion in value) held by our subsidiary, Mizuho Financial Strategy, Co., Ltd. |
| · | Optional redemption of Preferred Securities |
| • | On June 29, 2007, we redeemed all of the JPY 185.5 billion of non-dilutive preferred debt securities which were issued in February 2002 and became redeemable at the issuer’s option in June 2007. |
2-3
Earning Estimates for Fiscal 2007
(The figures below are on a consolidated basis.)
| · | We estimate Consolidated Net Business Profits for fiscal 2007 of JPY 840.0 billion, a decrease of JPY 151.6 billion on a year-on-year basis. |
Regarding the banking subsidiaries, we estimate Net Business Profits at almost the same level as those in the previous fiscal year. We aim at increasing income from Customer Groups by continuing strategic outlays of management resources in the areas of growth and further enhancing the Group’s comprehensive strengths, while estimating the market-related income at a conservative level.
On the other hand, however, due to the impact of dislocation in the global financial market stemming from the U.S. subprime loan issues, additional losses of Mizuho Securities in the second half are taken into consideration.
| · | We estimate Credit-related Costs to be JPY 95.0 billion for the full fiscal year, based on the results of the first half, our plan to continue taking precautionary measures for the future, and other factors. Moreover, we estimate Net Gains related to Stocks of JPY 230.0 billion. |
| · | In addition, the recognition of the accounting gains on the scheduled merger between Mizuho Securities and Shinko Securities will be carried forward to the next term, as a result of the postponement of the merger which was announced today. Mainly due to the aforementioned factors, Consolidated Net Income is estimated to be JPY 650.0 billion (a decrease of JPY 100.0 billion compared with the May 2007 estimate), which is an increase of JPY 29.0 billion on a year-on-year basis. |
| · | Meanwhile, we plan to increase cash dividends per share of common stock for the fiscal year ending March 2008 to JPY 10,000 (a JPY 3,000 increase from that for the previous fiscal year), unchanged from the level estimated as of May 2007, and make dividend payments on preferred stock as prescribed. |
(Consolidated)
| FY2007 (Estimates) | ||||
| (JPY Bn) | Change from FY2006 | |||
| Consolidated Net Business Profits * |
840.0 | -151.6 | ||
| Credit-related Costs |
-95.0 | -54.8 | ||
| Net Gains related to Stocks |
230.0 | 339.5 | ||
| Ordinary Profits |
830.0 | 81.8 | ||
| Net Income |
650.0 | 29.0 | ||
| *1: | Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments |
(Reference) 3 Banks
| FY2007 (Estimates) | ||||
| (JPY Bn) | Change from FY2006 | |||
| Net Business Profits |
841.0 | -3.5 | ||
| Credit-related Costs |
-93.0 | -69.6 | ||
| Net Gains related to Stocks |
220.0 | 335.3 | ||
| Ordinary Profits |
800.0 | 227.5 | ||
| Net Income |
715.0 | 116.7 | ||
Definition
| 3 Banks: |
Aggregate figures for Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking on a non-consolidated basis. On October 1, 2005, each of the financial subsidiaries for corporate revitalization was merged into its own parent bank, and figures before October 1, 2005 are the aggregate figures for the above three banks and their financial subsidiaries for corporate revitalization |
2-4
This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation, incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; revised assumptions or other changes related to our pension plans; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effectiveness of our operational, legal and other risk management policies; our ability to avoid reputational harm; and effects of changes in general economic conditions in Japan.
Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.
2-5
SELECTED FINANCIAL INFORMATION
For the First Half of Fiscal 2007
<under Japanese GAAP>
Mizuho Financial Group, Inc.
C O N T E N T S
Notes:
“CON”: Consolidated figures of Mizuho Financial Group, Inc. (“MHFG”).
“NON(B)”: Non-consolidated figures of Mizuho Bank, Ltd. (“MHBK”), Mizuho Corporate Bank, Ltd. (“MHCB”) and Mizuho Trust & Banking Co., Ltd. (“MHTB”).
“NON(B&R)”: Aggregated figures of the relevant banks including past figures for their former financial subsidiaries for corporate revitalization.
*MHBK, MHCB and MHTB merged with their own financial subsidiaries for corporate revitalization respectively, as of October 1, 2005.
“HC”: Non-consolidated figures of Mizuho Financial Group, Inc.
| I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2007 |
See above Notes | Pages | ||||
| 1. Income Analysis |
CON | NON(B) | 3- 1 | |||
| 2. Interest Margins (Domestic Operations) |
NON(B) | 3- 6 | ||||
| 3. Use and Source of Funds |
NON(B) | 3- 7 | ||||
| 4. Net Gains /Losses on Securities |
NON(B) | 3- 11 | ||||
| 5. Unrealized Gains /Losses on Securities |
CON | NON(B) | 3- 13 | |||
| 6. Projected Redemption Amounts for Securities |
NON(B) | 3- 15 | ||||
| 7. Overview of Derivative Transactions Qualifying for Hedge Accounting |
NON(B) | 3- 16 | ||||
| 8. Employee Retirement Benefits |
NON(B) | CON | 3- 17 | |||
| 9. Capital Adequacy Ratio (Basel II) |
CON | 3- 19 | ||||
| II. REVIEW OF CREDITS |
See above Notes | Pages | ||||
| 1. Status of Non-Accrual, Past Due & Restructured Loans |
CON | NON(B) | 3- 21 | |||
| 2. Status of Reserves for Possible Losses on Loans |
CON | NON(B) | 3- 23 | |||
| 3. Reserve Ratios for Non-Accrual, Past Due & Restructured Loans |
CON | NON(B) | 3- 24 | |||
| 4. Status of Disclosed Claims under the Financial Reconstruction Law (“FRL”) |
CON | NON(B) | 3- 25 | |||
| 5. Coverage on Disclosed Claims under the FRL |
NON(B) | 3- 27 | ||||
| 6. Overview of Non-Performing Loans(“NPLs”) |
NON(B) | 3- 30 | ||||
| 7. Results of Removal of NPLs from the Balance Sheet |
NON(B&R) | 3- 31 | ||||
| 8. Status of Loans by Industry |
||||||
| (1) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Industry |
NON(B) | 3- 33 | ||||
| (2) Disclosed Claims under the FRL and Coverage Ratio by Industry |
NON(B) | 3- 35 | ||||
| 9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises (“SMEs”) and Individual Customers |
||||||
| (1) Balance of Housing and Consumer Loans |
NON(B) | 3- 36 | ||||
| (2) Loans to SMEs and Individual Customers |
NON(B) | 3- 36 | ||||
| 10. Status of Loans by Region |
||||||
| (1) Balance of Loans to Restructuring Countries |
NON(B) | 3- 37 | ||||
| (2) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Region |
NON(B) | 3- 37 | ||||
| III. DEFERRED TAXES |
See above Notes | Pages | ||||
| 1. Change in Deferred Tax Assets, etc. |
CON | NON(B) | 3- 38 | |||
| 2. Estimation of Deferred Tax Assets, etc. |
||||||
| (1) Calculation Policy |
NON(B) | 3- 39 | ||||
| (2) Estimation for Calculating Deferred Tax Assets |
NON(B) | 3- 40 | ||||
| IV. OTHER |
See above Notes | Pages | ||||||||
| 1. Breakdown of Deposits (Domestic Offices) |
NON | (B) | 3- 44 | |||||||
| 2. Number of Directors and Employees |
HC | NON | (B) | 3- 45 | ||||||
| 3. Number of Branches and Offices |
NON | (B) | 3- 46 | |||||||
| 4. Earnings Estimates for Fiscal 2007 |
CON | NON | (B) | HC | 3- 47 | |||||
| Attachments |
See above Notes | Pages | ||||||||
| Mizuho Bank, Ltd. |
||||||||||
| Comparison of Non-Consolidated Balance Sheets (selected items) |
NON | (B) | 3- 48 | |||||||
| Comparison of Non-Consolidated Statements of Income (selected items) |
NON | (B) | 3- 49 | |||||||
| Non-Consolidated Statement of Changes in Net Assets |
NON | (B) | 3- 50 | |||||||
| Mizuho Corporate Bank, Ltd. |
||||||||||
| Comparison of Non-Consolidated Balance Sheets (selected items) |
NON | (B) | 3- 51 | |||||||
| Comparison of Non-Consolidated Statements of Income (selected items) |
NON | (B) | 3- 52 | |||||||
| Non-Consolidated Statement of Changes in Net Assets |
NON | (B) | 3- 53 | |||||||
This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation, incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; revised assumptions or other changes related to our pension plans; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effectiveness of our operational, legal and other risk management policies; our ability to avoid reputational harm; and effects of changes in general economic conditions in Japan.
Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”), which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.
Mizuho Financial Group, Inc.
I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2007
1. Income Analysis
Consolidated
| (Millions of yen) | |||||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||||
| Consolidated Gross Profits |
1 | 987,876 | (9,640 | ) | 997,517 | ||||||
| Net Interest Income |
2 | 537,901 | 2,776 | 535,125 | |||||||
| Fiduciary Income |
3 | 33,115 | (228 | ) | 33,344 | ||||||
| Credit Costs for Trust Accounts |
4 | — | — | — | |||||||
| Net Fee and Commission Income |
5 | 238,680 | (10,248 | ) | 248,929 | ||||||
| Net Trading Income |
6 | 122,034 | 17,475 | 104,559 | |||||||
| Net Other Operating Income |
7 | 56,144 | (19,415 | ) | 75,560 | ||||||
| General and Administrative Expenses |
8 | (559,564 | ) | (24,224 | ) | (535,340 | ) | ||||
| Personnel Expenses |
9 | (240,694 | ) | (12,394 | ) | (228,300 | ) | ||||
| Non-Personnel Expenses |
10 | (290,315 | ) | (10,355 | ) | (279,960 | ) | ||||
| Miscellaneous Taxes |
11 | (28,554 | ) | (1,475 | ) | (27,078 | ) | ||||
| Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans ) |
12 | (68,055 | ) | (54,955 | ) | (13,099 | ) | ||||
| Losses on Write-offs of Loans |
13 | (61,713 | ) | (48,955 | ) | (12,758 | ) | ||||
| Net Gains (Losses) related to Stocks |
14 | 85,103 | (4,768 | ) | 89,872 | ||||||
| Equity in Income from Investments in Affiliates |
15 | 5,886 | 1,685 | 4,201 | |||||||
| Other |
16 | (52,063 | ) | (39,066 | ) | (12,996 | ) | ||||
| Ordinary Profits |
17 | 399,184 | (130,971 | ) | 530,155 | ||||||
| Net Extraordinary Gains (Losses) |
18 | 23,586 | (79,078 | ) | 102,665 | ||||||
| Reversal of Reserves for Possible Losses on Loans, etc. |
19 | 23,368 | (82,762 | ) | 106,131 | ||||||
| Reversal of Reserve for Possible Losses on Investments |
20 | 31 | 31 | — | |||||||
| Income before Income Taxes and Minority Interests |
21 | 422,770 | (210,050 | ) | 632,821 | ||||||
| Income Taxes - Current |
22 | (19,121 | ) | 488 | (19,610 | ) | |||||
| - Deferred |
23 | (37,983 | ) | 149,056 | (187,040 | ) | |||||
| Minority Interests in Net Income |
24 | (38,604 | ) | (4,771 | ) | (33,832 | ) | ||||
| Net Income |
25 | 327,061 | (65,277 | ) | 392,338 | ||||||
| Credit-related Costs (including Credit Costs for Trust Accounts) |
26 | (44,686 | ) | (137,718 | ) | 93,031 | |||||
| _____________ |
|||||||||||
| * Credit-related Costs [26] = Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans ) [12] + Reversal of Reserves for Possible Losses on Loans, etc. [19] + Credit Costs for Trust Accounts [4] |
| ||||||||||
| (Reference) |
|||||||||||
| Consolidated Net Business Profits |
27 | 414,039 | (33,677 | ) | 447,717 | ||||||
| _____________ |
|||||||||||
| * Consolidated Net Business Profits [27] = Consolidated Gross Profits [1] - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments
|
| ||||||||||
| Number of consolidated subsidiaries |
28 | 137 | 6 | 131 | |||||||
| Number of affiliates under the equity method |
29 | 22 | 2 | 20 | |||||||
3-1
Mizuho Financial Group, Inc.
Aggregated Figures of the 3 Banks
Non-Consolidated
| (Millions of yen) | ||||||||||||||||||||
| First Half of Fiscal 2007 | First Half of Fiscal 2006 |
|||||||||||||||||||
| MHBK | MHCB | MHTB | Aggregated Figures |
Change | ||||||||||||||||
| Gross Profits |
1 | 466,934 | 301,877 | 80,190 | 849,003 | 32,125 | 816,878 | |||||||||||||
| Domestic Gross Profits |
2 | 392,878 | 148,980 | 74,882 | 616,741 | 44,355 | 572,386 | |||||||||||||
| Net Interest Income |
3 | 299,431 | 111,771 | 23,756 | 434,959 | 7,776 | 427,183 | |||||||||||||
| Fiduciary Income |
4 | 32,468 | 32,468 | (411 | ) | 32,880 | ||||||||||||||
| Credit Costs for Trust Accounts |
5 | — | — | — | — | |||||||||||||||
| Net Fee and Commission Income |
6 | 88,279 | 24,777 | 18,060 | 131,118 | (10,328 | ) | 141,446 | ||||||||||||
| Net Trading Income |
7 | 3,628 | 9,910 | (105 | ) | 13,433 | 30,902 | (17,468 | ) | |||||||||||
| Net Other Operating Income |
8 | 1,538 | 2,520 | 702 | 4,762 | 16,416 | (11,654 | ) | ||||||||||||
| International Gross Profits |
9 | 74,056 | 152,896 | 5,308 | 232,261 | (12,230 | ) | 244,491 | ||||||||||||
| Net Interest Income |
10 | 1,417 | 38,295 | 2,483 | 42,196 | (7,257 | ) | 49,453 | ||||||||||||
| Net Fee and Commission Income |
11 | 6,843 | 41,318 | (32 | ) | 48,130 | 10,136 | 37,993 | ||||||||||||
| Net Trading Income |
12 | 26,573 | 62,343 | 675 | 89,592 | 23,082 | 66,510 | |||||||||||||
| Net Other Operating Income |
13 | 39,222 | 10,938 | 2,182 | 52,342 | (38,191 | ) | 90,534 | ||||||||||||
| General and Administrative Expenses (excluding Non-Recurring Losses) |
14 | (267,235 | ) | (123,606 | ) | (43,910 | ) | (434,752 | ) | (11,030 | ) | (423,722 | ) | |||||||
| Expense Ratio |
15 | 57.2 | % | 40.9 | % | 54.7 | % | 51.2 | % | (0.6 | %) | 51.8 | % | |||||||
| Personnel Expenses |
16 | (64,243 | ) | (43,401 | ) | (14,461 | ) | (122,106 | ) | 2,440 | (124,547 | ) | ||||||||
| Non-Personnel Expenses |
17 | (186,111 | ) | (73,627 | ) | (27,910 | ) | (287,649 | ) | (12,446 | ) | (275,202 | ) | |||||||
| Premium for Deposit Insurance |
18 | (21,692 | ) | (3,720 | ) | (1,428 | ) | (26,840 | ) | 507 | (27,347 | ) | ||||||||
| Miscellaneous Taxes |
19 | (16,881 | ) | (6,576 | ) | (1,538 | ) | (24,996 | ) | (1,024 | ) | (23,972 | ) | |||||||
| Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) * |
20 | 199,698 | 178,271 | 36,280 | 414,250 | 21,094 | 393,155 | |||||||||||||
| Excluding Net Gains (Losses) related to Bonds |
21 | 200,380 | 142,284 | 33,367 | 376,031 | (1,877 | ) | 377,909 | ||||||||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
22 | 10,044 | — | — | 10,044 | 13,647 | (3,603 | ) | ||||||||||||
| Net Business Profits |
23 | 209,743 | 178,271 | 36,280 | 424,295 | 34,742 | 389,552 | |||||||||||||
| Net Gains (Losses) related to Bonds |
24 | (681 | ) | 35,987 | 2,912 | 38,218 | 22,972 | 15,246 | ||||||||||||
| Net Non-Recurring Gains (Losses) |
25 | (113,761 | ) | 10,563 | (1,392 | ) | (104,590 | ) | (165,712 | ) | 61,122 | |||||||||
| Net Gains (Losses) related to Stocks |
26 | 12,463 | 60,135 | 1,303 | 73,902 | (7,552 | ) | 81,455 | ||||||||||||
| Expenses related to Portfolio Problems |
27 | (102,918 | ) | (16,334 | ) | (511 | ) | (119,765 | ) | (108,678 | ) | (11,086 | ) | |||||||
| Other |
28 | (23,306 | ) | (33,237 | ) | (2,184 | ) | (58,727 | ) | (49,481 | ) | (9,246 | ) | |||||||
| Ordinary Profits |
29 | 95,981 | 188,835 | 34,887 | 319,704 | (130,970 | ) | 450,674 | ||||||||||||
| Net Extraordinary Gains (Losses) |
30 | 9,705 | 23,180 | 23,357 | 56,243 | (41,608 | ) | 97,852 | ||||||||||||
| Net Gains (Losses) on Disposition of Fixed Assets |
31 | (634 | ) | 517 | (305 | ) | (422 | ) | 2,208 | (2,630 | ) | |||||||||
| Losses on Impairment of Fixed Assets |
32 | (949 | ) | (38 | ) | (17 | ) | (1,005 | ) | 1,783 | (2,789 | ) | ||||||||
| Reversal of Reserves for Possible Losses on Loans, etc. |
33 | 11,112 | 22,530 | 22,219 | 55,862 | (44,957 | ) | 100,820 | ||||||||||||
| Reversal of Reserve for Possible Losses on Investments |
34 | — | 33 | — | 33 | 33 | — | |||||||||||||
| Income before Income Taxes |
35 | 105,687 | 212,015 | 58,245 | 375,948 | (172,578 | ) | 548,527 | ||||||||||||
| Income Taxes - Current |
36 | (243 | ) | (19 | ) | (9 | ) | (271 | ) | 30 | (302 | ) | ||||||||
| - Deferred |
37 | (4,547 | ) | (38,216 | ) | (6,836 | ) | (49,600 | ) | 135,866 | (185,467 | ) | ||||||||
| Net Income |
38 | 100,896 | 173,779 | 51,400 | 326,075 | (36,681 | ) | 362,757 | ||||||||||||
| _____________ |
||||||||||||||||||||
| * Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) of MHTB excludes the amounts of Credit Costs for Trust Accounts [5]. |
| |||||||||||||||||||
| Credit-related Costs |
39 | (81,761 | ) | 6,195 | 21,708 | (53,858 | ) | (139,988 | ) | 86,130 | ||||||||||
| _____________ |
||||||||||||||||||||
| * Credit-related Costs [39] = Expenses related to Portfolio Problems [27] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [22] + Reversal of Reserves for Possible Losses on Loans, etc. [33] + Credit Costs for Trust Accounts [5] |
| |||||||||||||||||||
| (Reference) Breakdown of Credit-related Costs |
||||||||||||||||||||
| Credit Costs for Trust Accounts |
40 | — | — | — | — | |||||||||||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
41 | 10,044 | 35,400 | 951 | 46,396 | 3,876 | 42,520 | |||||||||||||
| Losses on Write-offs of Loans |
42 | (36,984 | ) | (5,788 | ) | (507 | ) | (43,279 | ) | (65,549 | ) | 22,269 | ||||||||
| Reversal of (Provision for) Specific Reserve for Possible Losses on Loans |
43 | (52,064 | ) | (22,587 | ) | 21,062 | (53,589 | ) | (62,532 | ) | 8,943 | |||||||||
| Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries |
44 | 51 | 2,694 | 177 | 2,923 | 2,079 | 843 | |||||||||||||
| Reversal of (Provision for) Reserve for Contingencies |
45 | — | (3,524 | ) | 28 | (3,495 | ) | (15,390 | ) | 11,894 | ||||||||||
| Other (including Losses on Sales of Loans) |
46 | (2,808 | ) | — | (4 | ) | (2,813 | ) | (2,472 | ) | (341 | ) | ||||||||
| Total |
47 | (81,761 | ) | 6,195 | 21,708 | (53,858 | ) | (139,988 | ) | 86,130 | ||||||||||
3-2
Mizuho Financial Group, Inc.
Mizuho Bank
Non-Consolidated
| (Millions of yen) | |||||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||||
| Gross Profits |
1 | 466,934 | (10,122 | ) | 477,056 | ||||||
| Domestic Gross Profits |
2 | 392,878 | 16,388 | 376,489 | |||||||
| Net Interest Income |
3 | 299,431 | 4,367 | 295,063 | |||||||
| Net Fee and Commission Income |
4 | 88,279 | (4,306 | ) | 92,586 | ||||||
| Net Trading Income |
5 | 3,628 | 449 | 3,179 | |||||||
| Net Other Operating Income |
6 | 1,538 | 15,879 | (14,340 | ) | ||||||
| International Gross Profits |
7 | 74,056 | (26,510 | ) | 100,566 | ||||||
| Net Interest Income |
8 | 1,417 | 2,301 | (884 | ) | ||||||
| Net Fee and Commission Income |
9 | 6,843 | (533 | ) | 7,377 | ||||||
| Net Trading Income |
10 | 26,573 | 11,743 | 14,829 | |||||||
| Net Other Operating Income |
11 | 39,222 | (40,022 | ) | 79,244 | ||||||
| General and Administrative Expenses (excluding Non-Recurring Losses) |
12 | (267,235 | ) | (6,822 | ) | (260,413 | ) | ||||
| Expense Ratio |
13 | 57.2 | % | 2.6 | % | 54.5 | % | ||||
| Personnel Expenses |
14 | (64,243 | ) | 3,758 | (68,001 | ) | |||||
| Non-Personnel Expenses |
15 | (186,111 | ) | (9,675 | ) | (176,436 | ) | ||||
| Premium for Deposit Insurance |
16 | (21,692 | ) | 125 | (21,817 | ) | |||||
| Miscellaneous Taxes |
17 | (16,881 | ) | (905 | ) | (15,975 | ) | ||||
| Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) |
18 | 199,698 | (16,944 | ) | 216,642 | ||||||
| Excluding Net Gains (Losses) related to Bonds |
19 | 200,380 | (30,140 | ) | 230,520 | ||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
20 | 10,044 | 10,044 | — | |||||||
| Net Business Profits |
21 | 209,743 | (6,899 | ) | 216,642 | ||||||
| Net Gains (Losses) related to Bonds |
22 | (681 | ) | 13,196 | (13,877 | ) | |||||
| Net Non-Recurring Gains (Losses) |
23 | (113,761 | ) | (106,776 | ) | (6,984 | ) | ||||
| Net Gains (Losses) related to Stocks |
24 | 12,463 | 10,261 | 2,202 | |||||||
| Expenses related to Portfolio Problems |
25 | (102,918 | ) | (93,843 | ) | (9,075 | ) | ||||
| Other |
26 | (23,306 | ) | (23,194 | ) | (112 | ) | ||||
| Ordinary Profits |
27 | 95,981 | (113,676 | ) | 209,658 | ||||||
| Net Extraordinary Gains (Losses) |
28 | 9,705 | 9,905 | (200 | ) | ||||||
| Net Gains (Losses) on Disposition of Fixed Assets |
29 | (634 | ) | 1,097 | (1,732 | ) | |||||
| Losses on Impairment of Fixed Assets |
30 | (949 | ) | 1,389 | (2,338 | ) | |||||
| Reversal of Reserves for Possible Losses on Loans, etc. |
31 | 11,112 | 7,306 | 3,806 | |||||||
| Reversal of Reserve for Possible Losses on Investments |
32 | — | — | — | |||||||
| Income before Income Taxes |
33 | 105,687 | (103,770 | ) | 209,457 | ||||||
| Income Taxes - Current |
34 | (243 | ) | 16 | (260 | ) | |||||
| - Deferred |
35 | (4,547 | ) | 79,234 | (83,781 | ) | |||||
| Net Income |
36 | 100,896 | (24,519 | ) | 125,415 | ||||||
| Credit-related Costs |
37 | (81,761 | ) | (76,493 | ) | (5,268 | ) | ||||
| _______________ |
|||||||||||
| * Credit-related Costs [37] = Expenses related to Portfolio Problems [25] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [20] + Reversal of Reserves for Possible Losses on Loans, etc. [31] |
| ||||||||||
| (Reference) Breakdown of Credit-related Costs |
|||||||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
38 | 10,044 | 4,970 | 5,074 | |||||||
| Losses on Write-offs of Loans |
39 | (36,984 | ) | (28,225 | ) | (8,759 | ) | ||||
| Reversal of (Provision for) Specific Reserve for |
40 | (52,064 | ) | (50,780 | ) | (1,284 | ) | ||||
| Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries |
41 | 51 | 35 | 16 | |||||||
| Reversal of (Provision for) Reserve for Contingencies |
42 | — | — | — | |||||||
| Other (including Losses on Sales of Loans) |
43 | (2,808 | ) | (2,492 | ) | (316 | ) | ||||
| Total |
44 | (81,761 | ) | (76,493 | ) | (5,268 | ) | ||||
3-3
Mizuho Financial Group, Inc.
Mizuho Corporate Bank
Non-Consolidated
| (Millions of yen) | |||||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||||
| Gross Profits |
1 | 301,877 | 45,102 | 256,775 | |||||||
| Domestic Gross Profits |
2 | 148,980 | 36,901 | 112,078 | |||||||
| Net Interest Income |
3 | 111,771 | 4,502 | 107,269 | |||||||
| Net Fee and Commission Income |
4 | 24,777 | (3,173 | ) | 27,951 | ||||||
| Net Trading Income |
5 | 9,910 | 33,253 | (23,343 | ) | ||||||
| Net Other Operating Income |
6 | 2,520 | 2,319 | 201 | |||||||
| International Gross Profits |
7 | 152,896 | 8,200 | 144,696 | |||||||
| Net Interest Income |
8 | 38,295 | (11,653 | ) | 49,948 | ||||||
| Net Fee and Commission Income |
9 | 41,318 | 10,666 | 30,652 | |||||||
| Net Trading Income |
10 | 62,343 | 8,493 | 53,850 | |||||||
| Net Other Operating Income |
11 | 10,938 | 693 | 10,244 | |||||||
| General and Administrative Expenses (excluding Non-Recurring Losses) |
12 | (123,606 | ) | (4,349 | ) | (119,256 | ) | ||||
| Expense Ratio |
13 | 40.9 | % | (5.4 | %) | 46.4 | % | ||||
| Personnel Expenses |
14 | (43,401 | ) | (1,885 | ) | (41,516 | ) | ||||
| Non-Personnel Expenses |
15 | (73,627 | ) | (2,371 | ) | (71,256 | ) | ||||
| Premium for Deposit Insurance |
16 | (3,720 | ) | 426 | (4,146 | ) | |||||
| Miscellaneous Taxes |
17 | (6,576 | ) | (92 | ) | (6,484 | ) | ||||
| Net Business Profits |
18 | 178,271 | 40,752 | 137,518 | |||||||
| Excluding Net Gains (Losses) related to Bonds |
19 | 142,284 | 30,149 | 112,134 | |||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
20 | — | — | — | |||||||
| Net Business Profits |
21 | 178,271 | 40,752 | 137,518 | |||||||
| Net Gains (Losses) related to Bonds |
22 | 35,987 | 10,603 | 25,384 | |||||||
| Net Non-Recurring Gains (Losses) |
23 | 10,563 | (53,406 | ) | 63,969 | ||||||
| Net Gains (Losses) related to Stocks |
24 | 60,135 | (11,789 | ) | 71,925 | ||||||
| Expenses related to Portfolio Problems |
25 | (16,334 | ) | (15,541 | ) | (793 | ) | ||||
| Other |
26 | (33,237 | ) | (26,075 | ) | (7,162 | ) | ||||
| Ordinary Profits |
27 | 188,835 | (12,653 | ) | 201,488 | ||||||
| Net Extraordinary Gains (Losses) |
28 | 23,180 | (74,508 | ) | 97,688 | ||||||
| Net Gains (Losses) on Disposition of Fixed Assets |
29 | 517 | 1,267 | (750 | ) | ||||||
| Losses on Impairment of Fixed Assets |
30 | (38 | ) | 412 | (450 | ) | |||||
| Reversal of Reserves for Possible Losses on Loans, etc. |
31 | 22,530 | (74,483 | ) | 97,013 | ||||||
| Reversal of Reserve for Possible Losses on Investments |
32 | 33 | 33 | — | |||||||
| Income before Income Taxes |
33 | 212,015 | (87,162 | ) | 299,177 | ||||||
| Income Taxes - Current |
34 | (19 | ) | 0 | (19 | ) | |||||
| - Deferred |
35 | (38,216 | ) | 47,660 | (85,877 | ) | |||||
| Net Income |
36 | 173,779 | (39,500 | ) | 213,280 | ||||||
| Credit-related Costs |
37 | 6,195 | (90,025 | ) | 96,220 | ||||||
| __________ * Credit-related Costs [37] = Expenses related to Portfolio Problems [25] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [20] + Reversal of Reserves for Possible Losses on Loans, etc. [31] |
| ||||||||||
| (Reference) Breakdown of Credit-related Costs |
|||||||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
38 | 35,400 | (5,648 | ) | 41,049 | ||||||
| Losses on Write-offs of Loans |
39 | (5,788 | ) | (39,816 | ) | 34,027 | |||||
| Reversal of (Provision for) Specific Reserve for Possible Losses on Loans |
40 | (22,587 | ) | (31,006 | ) | 8,419 | |||||
| Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries |
41 | 2,694 | 1,969 | 725 | |||||||
| Reversal of (Provision for) Reserve for Contingencies |
42 | (3,524 | ) | (15,547 | ) | 12,023 | |||||
| Other (including Losses on Sales of Loans) |
43 | — | 24 | (24 | ) | ||||||
| Total |
44 | 6,195 | (90,025 | ) | 96,220 | ||||||
3-4
Mizuho Financial Group, Inc.
Mizuho Trust & Banking
Non-Consolidated
| (Millions of yen) | |||||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||||
| Gross Profits |
1 | 80,190 | (2,855 | ) | 83,046 | ||||||
| Domestic Gross Profits |
2 | 74,882 | (8,935 | ) | 83,817 | ||||||
| Net Interest Income |
3 | 23,756 | (1,093 | ) | 24,849 | ||||||
| Fiduciary Income |
4 | 32,468 | (411 | ) | 32,880 | ||||||
| Credit Costs for Trust Accounts |
5 | — | — | — | |||||||
| Net Fee and Commission Income |
6 | 18,060 | (2,847 | ) | 20,908 | ||||||
| Net Trading Income |
7 | (105 | ) | (2,800 | ) | 2,695 | |||||
| Net Other Operating Income |
8 | 702 | (1,782 | ) | 2,484 | ||||||
| International Gross Profits |
9 | 5,308 | 6,080 | (771 | ) | ||||||
| Net Interest Income |
10 | 2,483 | 2,094 | 388 | |||||||
| Net Fee and Commission Income |
11 | (32 | ) | 4 | (36 | ) | |||||
| Net Trading Income |
12 | 675 | 2,844 | (2,169 | ) | ||||||
| Net Other Operating Income |
13 | 2,182 | 1,136 | 1,045 | |||||||
| General and Administrative Expenses (excluding Non-Recurring Losses) |
14 | (43,910 | ) | 141 | (44,052 | ) | |||||
| Expense Ratio |
15 | 54.7 | % | 1.7 | % | 53.0 | % | ||||
| Personnel Expenses |
16 | (14,461 | ) | 567 | (15,029 | ) | |||||
| Non-Personnel Expenses |
17 | (27,910 | ) | (399 | ) | (27,510 | ) | ||||
| Premium for Deposit Insurance |
18 | (1,428 | ) | (44 | ) | (1,383 | ) | ||||
| Miscellaneous Taxes |
19 | (1,538 | ) | (26 | ) | (1,512 | ) | ||||
| Net Business Profits |
20 | 36,280 | (2,713 | ) | 38,994 | ||||||
| Excluding Net Gains (Losses) related to Bonds |
21 | 33,367 | (1,885 | ) | 35,253 | ||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
22 | — | 3,603 | (3,603 | ) | ||||||
| Net Business Profits |
23 | 36,280 | 889 | 35,390 | |||||||
| Net Gains (Losses) related to Bonds |
24 | 2,912 | (827 | ) | 3,740 | ||||||
| Net Non-Recurring Gains (Losses) |
25 | (1,392 | ) | (5,529 | ) | 4,137 | |||||
| Net Gains (Losses) related to Stocks |
26 | 1,303 | (6,024 | ) | 7,327 | ||||||
| Expenses related to Portfolio Problems |
27 | (511 | ) | 706 | (1,218 | ) | |||||
| Other |
28 | (2,184 | ) | (212 | ) | (1,972 | ) | ||||
| Ordinary Profits |
29 | 34,887 | (4,640 | ) | 39,527 | ||||||
| Net Extraordinary Gains (Losses) |
30 | 23,357 | 22,994 | 363 | |||||||
| Net Gains (Losses) on Disposition of Fixed Assets |
31 | (305 | ) | (157 | ) | (147 | ) | ||||
| Losses on Impairment of Fixed Assets |
32 | (17 | ) | (17 | ) | — | |||||
| Reversal of Reserves for Possible Losses on Loans, etc. |
33 | 22,219 | 22,219 | — | |||||||
| Reversal of Reserve for Possible Losses on Investments |
34 | — | — | — | |||||||
| Income before Income Taxes |
35 | 58,245 | 18,354 | 39,891 | |||||||
| Income Taxes - Current |
36 | (9 | ) | 12 | (22 | ) | |||||
| - Deferred |
37 | (6,836 | ) | 8,972 | (15,808 | ) | |||||
| Net Income |
38 | 51,400 | 27,339 | 24,060 | |||||||
| __________ * Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) [20] = Gross Profits [1] + General and Administrative Expenses (excluding Non-Recurring Losses) [14] - Credit Costs for Trust Accounts [5] |
| ||||||||||
| Credit-related Costs |
39 | 21,708 | 26,529 | (4,821 | ) | ||||||
| __________ * Credit-related Costs [39] = Expenses related to Portfolio Problems [27] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [22] + Reversal of Reserves for Possible Losses on Loans, etc. [33] + Credit Costs for Trust Accounts [5] |
| ||||||||||
| (Reference) Breakdown of Credit-related Costs |
|||||||||||
| Credit Costs for Trust Accounts |
40 | — | — | — | |||||||
| Reversal of (Provision for) General Reserve for Possible Losses on Loans |
41 | 951 | 4,554 | (3,603 | ) | ||||||
| Losses on Write-offs of Loans |
42 | (507 | ) | 2,492 | (2,999 | ) | |||||
| Reversal of (Provision for) Specific Reserve for Possible Losses on Loans |
43 | 21,062 | 19,254 | 1,808 | |||||||
| Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries |
44 | 177 | 75 | 101 | |||||||
| Reversal of (Provision for) Reserve for Contingencies |
45 | 28 | 157 | (129 | ) | ||||||
| Other (including Losses on Sales of Loans) |
46 | (4 | ) | (4 | ) | — | |||||
| Total |
47 | 21,708 | 26,529 | (4,821 | ) | ||||||
3-5
Mizuho Financial Group, Inc.
2. Interest Margins (Domestic Operations)
Non-Consolidated
Aggregated Figures of MHBK and MHCB
| (%) | ||||||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 | ||||||||||
| Return on Interest-Earning Assets |
1 | 1.35 | 0.28 | 1.07 | ||||||||
| Return on Loans and Bills Discounted |
2 | 1.63 | 0.31 | 1.32 | ||||||||
| Return on Securities |
3 | 1.03 | 0.23 | 0.79 | ||||||||
| Cost of Funding (including Expenses) |
4 | 1.13 | 0.28 | 0.85 | ||||||||
| Cost of Deposits and Debentures (including Expenses) |
5 | 1.19 | 0.23 | 0.95 | ||||||||
| Cost of Deposits and Debentures |
6 | 0.29 | 0.18 | 0.11 | ||||||||
| Cost of Other External Liabilities |
7 | 0.67 | 0.37 | 0.29 | ||||||||
| Net Interest Margin |
(1 | )-(4) | 8 | 0.21 | 0.00 | 0.21 | ||||||
| Loan and Deposit Rate Margin (including Expenses) |
(2 | )-(5) | 9 | 0.44 | 0.08 | 0.36 | ||||||
| Loan and Deposit Rate Margin |
(2 | )-(6) | 10 | 1.34 | 0.13 | 1.20 | ||||||
| __________ * Return on Loans and Bills Discounted excludes loans to MHFG. * Deposits and Debentures include Negotiable Certificates of Deposit (“NCDs”).
(Reference) After excluding loans to Deposit Insurance Corporation of Japan, government and others |
|
|||||||||||
| Return on Loans and Bills Discounted |
11 | 1.74 | 0.31 | 1.43 | ||||||||
| Loan and Deposit Rate Margin (including Expenses) |
(11 | )-(5) | 12 | 0.55 | 0.08 | 0.47 | ||||||
| Loan and Deposit Rate Margin |
(11 | )-(6) | 13 | 1.44 | 0.13 | 1.31 | ||||||
|
Mizuho Bank |
|
|||||||||||
| Return on Interest-Earning Assets |
14 | 1.36 | 0.25 | 1.11 | ||||||||
| Return on Loans and Bills Discounted |
15 | 1.83 | 0.27 | 1.55 | ||||||||
| Return on Securities |
16 | 0.72 | 0.14 | 0.58 | ||||||||
| Cost of Funding (including Expenses) |
17 | 1.18 | 0.25 | 0.93 | ||||||||
| Cost of Deposits and Debentures (including Expenses) |
18 | 1.17 | 0.19 | 0.97 | ||||||||
| Cost of Deposits and Debentures |
19 | 0.24 | 0.18 | 0.06 | ||||||||
| Cost of Other External Liabilities |
20 | 0.73 | 0.27 | 0.46 | ||||||||
| Net Interest Margin |
(14 | )-(17) | 21 | 0.18 | (0.00 | ) | 0.18 | |||||
| Loan and Deposit Rate Margin (including Expenses) |
(15 | )-(18) | 22 | 0.66 | 0.07 | 0.58 | ||||||
| Loan and Deposit Rate Margin |
(15 | )-(19) | 23 | 1.59 | 0.09 | 1.49 | ||||||
| __________ * Return on Loans and Bills Discounted excludes loans to MHFG. * Deposits and Debentures include NCDs.
(Reference) After excluding loans to Deposit Insurance Corporation of Japan, government and others |
|
|||||||||||
| Return on Loans and Bills Discounted |
24 | 1.97 | 0.26 | 1.70 | ||||||||
| Loan and Deposit Rate Margin (including Expenses) |
(24 | )-(18) | 25 | 0.79 | 0.07 | 0.72 | ||||||
| Loan and Deposit Rate Margin |
(24 | )-(19) | 26 | 1.73 | 0.08 | 1.64 | ||||||
| Mizuho Corporate Bank | ||||||||||||
| Return on Interest-Earning Assets |
27 | 1.32 | 0.34 | 0.98 | ||||||||
| Return on Loans and Bills Discounted |
28 | 1.28 | 0.35 | 0.92 | ||||||||
| Return on Securities |
29 | 1.56 | 0.32 | 1.24 | ||||||||
| Cost of Funding (including Expenses) |
30 | 1.04 | 0.33 | 0.70 | ||||||||
| Cost of Deposits and Debentures (including Expenses) |
31 | 1.24 | 0.33 | 0.90 | ||||||||
| Cost of Deposits and Debentures |
32 | 0.47 | 0.21 | 0.26 | ||||||||
| Cost of Other External Liabilities |
33 | 0.66 | 0.40 | 0.25 | ||||||||
| Net Interest Margin |
(27 | )-(30) | 34 | 0.28 | 0.00 | 0.27 | ||||||
| Loan and Deposit Rate Margin (including Expenses) |
(28 | )-(31) | 35 | 0.03 | 0.02 | 0.01 | ||||||
| Loan and Deposit Rate Margin |
(28 | )-(32) | 36 | 0.80 | 0.14 | 0.65 | ||||||
| __________ * Return on Loans and Bills Discounted excludes loans to MHFG. * Deposits and Debentures include NCDs.
|
|
|||||||||||
| (Reference) After excluding loans to Deposit Insurance Corporation of Japan, government and others |
|
|||||||||||
| Return on Loans and Bills Discounted |
37 | 1.33 | 0.35 | 0.98 | ||||||||
| Loan and Deposit Rate Margin (including Expenses) |
(37 | )-(31) | 38 | 0.09 | 0.01 | 0.07 | ||||||
| Loan and Deposit Rate Margin |
(37 | )-(32) | 39 | 0.86 | 0.13 | 0.72 | ||||||
| Mizuho Trust & Banking (3 domestic accounts) |
||||||||||||
| Return on Interest-Earning Assets |
40 | 1.41 | 0.13 | 1.27 | ||||||||
| Return on Loans and Bills Discounted |
41 | 1.55 | 0.03 | 1.51 | ||||||||
| Return on Securities |
42 | 1.20 | 0.11 | 1.09 | ||||||||
| Cost of Funding |
43 | 0.56 | 0.27 | 0.28 | ||||||||
| Cost of Deposits |
44 | 0.48 | 0.24 | 0.24 | ||||||||
| Net Interest Margin |
(40 | )-(43) | 45 | 0.84 | (0.14 | ) | 0.99 | |||||
| Loan and Deposit Rate Margin |
(41 | )-(44) | 46 | 1.06 | (0.21 | ) | 1.27 | |||||
__________
| * | 3 domestic accounts = banking accounts (domestic operations) + trust accounts with contracts indemnifying the principal |
amounts (loan trusts + jointly-managed money trusts).
| * | Deposits include NCDs. |
3-6
Mizuho Financial Group, Inc.
3. Use and Source of Funds
Non-Consolidated
Aggregated Figures of MHBK and MHCB
| (Millions of yen, %) | ||||||||||||||
| First Half of Fiscal 2007 | Change | First Half of Fiscal 2006 | ||||||||||||
| (Total) | Average Balance | Rate | Average Balance | Rate | Average Balance | Rate | ||||||||
| Use of Funds |
114,100,502 | 2.10 | 4,310,889 | 0.41 | 109,789,612 | 1.68 | ||||||||
| Loans and Bills Discounted |
62,468,912 | 2.19 | 952,544 | 0.41 | 61,516,368 | 1.78 | ||||||||
| Securities |
35,441,198 | 1.96 | 959,570 | 0.54 | 34,481,628 | 1.42 | ||||||||
| Source of Funds |
113,609,758 | 1.32 | 3,340,800 | 0.45 | 110,268,957 | 0.86 | ||||||||
| Deposits |
71,095,978 | 0.85 | 868,252 | 0.26 | 70,227,725 | 0.59 | ||||||||
| NCDs |
9,617,341 | 1.52 | (553,005 | ) | 0.72 | 10,170,347 | 0.79 | |||||||
| Debentures |
4,402,766 | 0.59 | (1,749,235 | ) | (0.00 | ) | 6,152,002 | 0.59 | ||||||
| Call Money |
9,771,111 | 0.79 | 2,203,144 | 0.47 | 7,567,966 | 0.32 | ||||||||
| Payables under Repurchase Agreements |
6,985,017 | 4.23 | 1,831,195 | 0.57 | 5,153,821 | 3.66 | ||||||||
| Bills Sold |
— | — | (870,044 | ) | (0.02 | ) | 870,044 | 0.02 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
5,703,093 | 3.09 | 1,366,326 | (0.13 | ) | 4,336,766 | 3.22 | |||||||
| (Domestic Operations) | ||||||||||||||
| Use of Funds |
87,578,883 | 1.35 | (772,987 | ) | 0.28 | 88,351,870 | 1.07 | |||||||
| Loans and Bills Discounted |
52,394,178 | 1.62 | (750,635 | ) | 0.31 | 53,144,814 | 1.30 | |||||||
| Securities |
24,825,775 | 1.03 | (2,320,331 | ) | 0.23 | 27,146,106 | 0.79 | |||||||
| Source of Funds |
87,631,745 | 0.41 | (1,735,861 | ) | 0.25 | 89,367,606 | 0.16 | |||||||
| Deposits |
58,639,270 | 0.23 | (164,351 | ) | 0.18 | 58,803,622 | 0.05 | |||||||
| NCDs |
7,742,295 | 0.57 | (1,136,678 | ) | 0.41 | 8,878,973 | 0.16 | |||||||
| Debentures |
4,402,766 | 0.59 | (1,749,235 | ) | (0.00 | ) | 6,152,002 | 0.59 | ||||||
| Call Money |
9,398,143 | 0.59 | 2,075,122 | 0.42 | 7,323,020 | 0.17 | ||||||||
| Payables under Repurchase Agreements |
575,447 | 0.58 | (104,274 | ) | 0.38 | 679,722 | 0.19 | |||||||
| Bills Sold |
— | — | (870,044 | ) | (0.02 | ) | 870,044 | 0.02 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
2,509,918 | 1.00 | 855,211 | (0.05 | ) | 1,654,706 | 1.05 | |||||||
| (International Operations) |
||||||||||||||
| Use of Funds |
26,959,870 | 4.52 | 5,145,189 | 0.33 | 21,814,680 | 4.19 | ||||||||
| Loans and Bills Discounted |
10,074,733 | 5.18 | 1,703,180 | 0.36 | 8,371,553 | 4.81 | ||||||||
| Securities |
10,615,422 | 4.15 | 3,279,901 | 0.39 | 7,335,521 | 3.76 | ||||||||
| Source of Funds |
26,416,264 | 4.32 | 5,137,974 | 0.48 | 21,278,290 | 3.84 | ||||||||
| Deposits |
12,456,707 | 3.78 | 1,032,604 | 0.43 | 11,424,103 | 3.35 | ||||||||
| NCDs |
1,875,046 | 5.43 | 583,672 | 0.29 | 1,291,373 | 5.13 | ||||||||
| Debentures |
— | — | — | — | — | — | ||||||||
| Call Money |
372,967 | 5.93 | 128,021 | 1.03 | 244,945 | 4.89 | ||||||||
| Payables under Repurchase Agreements |
6,409,569 | 4.55 | 1,935,470 | 0.37 | 4,474,099 | 4.18 | ||||||||
| Bills Sold |
— | — | — | — | — | — | ||||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
3,193,175 | 4.73 | 511,115 | 0.16 | 2,682,059 | 4.57 | ||||||||
3-7
Mizuho Financial Group, Inc.
Mizuho Bank
| (Millions of yen, %) | ||||||||||||||
| First Half of Fiscal 2007 | Change | First Half of Fiscal 2006 | ||||||||||||
| (Total) | Average Balance | Rate | Average Balance | Rate | Average Balance | Rate | ||||||||
| Use of Funds |
59,689,573 | 1.46 | 717,700 | 0.28 | 58,971,872 | 1.18 | ||||||||
| Loans and Bills Discounted |
33,513,150 | 1.82 | 195,907 | 0.28 | 33,317,243 | 1.53 | ||||||||
| Securities |
17,126,332 | 0.97 | (1,851,717 | ) | 0.31 | 18,978,049 | 0.65 | |||||||
| Source of Funds |
60,665,775 | 0.45 | 478,559 | 0.27 | 60,187,216 | 0.18 | ||||||||
| Deposits |
51,955,900 | 0.28 | 1,093,696 | 0.17 | 50,862,204 | 0.11 | ||||||||
| NCDs |
1,755,978 | 0.47 | (581,080 | ) | 0.36 | 2,337,059 | 0.10 | |||||||
| Debentures |
1,410,143 | 0.22 | (520,255 | ) | 0.11 | 1,930,399 | 0.11 | |||||||
| Call Money |
1,711,890 | 0.48 | 329,662 | 0.37 | 1,382,227 | 0.11 | ||||||||
| Payables under Repurchase Agreements |
99,948 | 0.58 | 18,768 | 0.42 | 81,179 | 0.15 | ||||||||
| Bills Sold |
— | — | (131,860 | ) | (0.01 | ) | 131,860 | 0.01 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
1,250,614 | 3.12 | (40,553 | ) | 0.27 | 1,291,167 | 2.85 | |||||||
| (Domestic Operations) | ||||||||||||||
| Use of Funds |
57,013,521 | 1.36 | 11,605 | 0.25 | 57,001,916 | 1.11 | ||||||||
| Loans and Bills Discounted |
33,175,326 | 1.81 | 157,004 | 0.28 | 33,018,322 | 1.52 | ||||||||
| Securities |
15,715,484 | 0.72 | (2,575,584 | ) | 0.14 | 18,291,068 | 0.58 | |||||||
| Source of Funds |
58,093,731 | 0.31 | (158,254 | ) | 0.23 | 58,251,986 | 0.08 | |||||||
| Deposits |
51,092,017 | 0.23 | 1,145,391 | 0.17 | 49,946,626 | 0.05 | ||||||||
| NCDs |
1,754,672 | 0.47 | (580,432 | ) | 0.36 | 2,335,104 | 0.10 | |||||||
| Debentures |
1,410,143 | 0.22 | (520,255 | ) | 0.11 | 1,930,399 | 0.11 | |||||||
| Call Money |
1,711,890 | 0.48 | 329,662 | 0.37 | 1,382,227 | 0.11 | ||||||||
| Payables under Repurchase Agreements |
99,948 | 0.58 | 18,768 | 0.42 | 81,179 | 0.15 | ||||||||
| Bills Sold |
— | — | (131,860 | ) | (0.01 | ) | 131,860 | 0.01 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
464,460 | 1.68 | (57,184 | ) | 0.14 | 521,645 | 1.54 | |||||||
| (International Operations) |
||||||||||||||
| Use of Funds |
2,847,623 | 3.39 | 851,381 | 0.41 | 1,996,242 | 2.98 | ||||||||
| Loans and Bills Discounted |
337,824 | 2.81 | 38,903 | 0.33 | 298,920 | 2.47 | ||||||||
| Securities |
1,410,847 | 3.77 | 723,867 | 1.12 | 686,980 | 2.65 | ||||||||
| Source of Funds |
2,743,615 | 3.42 | 782,100 | 0.29 | 1,961,515 | 3.12 | ||||||||
| Deposits |
863,883 | 3.30 | (51,694 | ) | 0.27 | 915,578 | 3.02 | |||||||
| NCDs |
1,306 | 0.65 | (648 | ) | 0.44 | 1,955 | 0.21 | |||||||
| Debentures |
— | — | — | — | — | — | ||||||||
| Call Money |
— | — | — | — | — | — | ||||||||
| Payables under Repurchase Agreements |
— | — | — | — | — | — | ||||||||
| Bills Sold |
— | — | — | — | — | — | ||||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
786,153 | 3.98 | 16,631 | 0.23 | 769,522 | 3.74 | ||||||||
3-8
Mizuho Financial Group, Inc.
Mizuho Corporate Bank
| (Millions of yen, %) | ||||||||||||||
| First Half of Fiscal 2007 | Change | First Half of Fiscal 2006 | ||||||||||||
| (Total) | Average Balance | Rate | Average Balance | Rate | Average Balance | Rate | ||||||||
| Use of Funds |
54,410,929 | 2.80 | 3,593,189 | 0.52 | 50,817,739 | 2.27 | ||||||||
| Loans and Bills Discounted |
28,955,762 | 2.62 | 756,637 | 0.54 | 28,199,125 | 2.07 | ||||||||
| Securities |
18,314,866 | 2.89 | 2,811,287 | 0.52 | 15,503,578 | 2.37 | ||||||||
| Source of Funds |
52,943,982 | 2.31 | 2,862,240 | 0.63 | 50,081,741 | 1.68 | ||||||||
| Deposits |
19,140,078 | 2.41 | (225,443 | ) | 0.55 | 19,365,521 | 1.86 | |||||||
| NCDs |
7,861,362 | 1.75 | 28,075 | 0.75 | 7,833,287 | 0.99 | ||||||||
| Debentures |
2,992,622 | 0.77 | (1,228,979 | ) | (0.05 | ) | 4,221,602 | 0.82 | ||||||
| Call Money |
8,059,220 | 0.86 | 1,873,482 | 0.49 | 6,185,738 | 0.37 | ||||||||
| Payables under Repurchase Agreements |
6,885,069 | 4.28 | 1,812,426 | 0.56 | 5,072,642 | 3.71 | ||||||||
| Bills Sold |
— | — | (738,184 | ) | (0.03 | ) | 738,184 | 0.03 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
4,452,478 | 3.08 | 1,406,880 | (0.30 | ) | 3,045,598 | 3.38 | |||||||
| (Domestic Operations) | ||||||||||||||
| Use of Funds |
30,565,361 | 1.32 | (784,593 | ) | 0.34 | 31,349,954 | 0.98 | |||||||
| Loans and Bills Discounted |
19,218,852 | 1.28 | (907,639 | ) | 0.34 | 20,126,492 | 0.94 | |||||||
| Securities |
9,110,291 | 1.56 | 255,253 | 0.32 | 8,855,037 | 1.24 | ||||||||
| Source of Funds |
29,538,013 | 0.61 | (1,577,606 | ) | 0.31 | 31,115,620 | 0.30 | |||||||
| Deposits |
7,547,253 | 0.25 | (1,309,742 | ) | 0.20 | 8,856,995 | 0.05 | |||||||
| NCDs |
5,987,623 | 0.60 | (556,246 | ) | 0.42 | 6,543,869 | 0.17 | |||||||
| Debentures |
2,992,622 | 0.77 | (1,228,979 | ) | (0.05 | ) | 4,221,602 | 0.82 | ||||||
| Call Money |
7,686,252 | 0.61 | 1,745,460 | 0.43 | 5,940,792 | 0.18 | ||||||||
| Payables under Repurchase Agreements |
475,499 | 0.58 | (123,043 | ) | 0.37 | 598,543 | 0.20 | |||||||
| Bills Sold |
— | — | (738,184 | ) | (0.03 | ) | 738,184 | 0.03 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
2,045,457 | 0.84 | 912,396 | 0.01 | 1,133,061 | 0.82 | ||||||||
| (International Operations) |
||||||||||||||
| Use of Funds |
24,112,246 | 4.66 | 4,293,808 | 0.34 | 19,818,437 | 4.31 | ||||||||
| Loans and Bills Discounted |
9,736,909 | 5.26 | 1,664,276 | 0.35 | 8,072,632 | 4.90 | ||||||||
| Securities |
9,204,575 | 4.21 | 2,556,034 | 0.33 | 6,648,540 | 3.87 | ||||||||
| Source of Funds |
23,672,648 | 4.42 | 4,355,873 | 0.51 | 19,316,774 | 3.91 | ||||||||
| Deposits |
11,592,824 | 3.82 | 1,084,299 | 0.44 | 10,508,525 | 3.38 | ||||||||
| NCDs |
1,873,739 | 5.43 | 584,321 | 0.28 | 1,289,418 | 5.14 | ||||||||
| Debentures |
— | — | — | — | — | — | ||||||||
| Call Money |
372,967 | 5.93 | 128,021 | 1.03 | 244,945 | 4.89 | ||||||||
| Payables under Repurchase Agreements |
6,409,569 | 4.55 | 1,935,470 | 0.37 | 4,474,099 | 4.18 | ||||||||
| Bills Sold |
— | — | — | — | — | — | ||||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
2,407,021 | 4.98 | 494,483 | 0.07 | 1,912,537 | 4.90 | ||||||||
3-9
Mizuho Financial Group, Inc.
Mizuho Trust & Banking (Banking Account)
| (Millions of yen, %) | ||||||||||||||
| First Half of Fiscal 2007 | Change | First Half of Fiscal 2006 | ||||||||||||
| (Total) | Average Balance | Rate | Average Balance | Rate | Average Balance | Rate | ||||||||
| Use of Funds |
6,158,818 | 1.62 | 648,577 | 0.24 | 5,510,240 | 1.37 | ||||||||
| Loans and Bills Discounted |
3,940,637 | 1.56 | 436,103 | 0.03 | 3,504,534 | 1.52 | ||||||||
| Securities |
1,656,200 | 1.87 | 138,584 | 0.59 | 1,517,615 | 1.28 | ||||||||
| Source of Funds |
6,025,498 | 0.79 | 595,572 | 0.32 | 5,429,926 | 0.46 | ||||||||
| Deposits |
2,971,390 | 0.52 | 362,410 | 0.21 | 2,608,980 | 0.30 | ||||||||
| NCDs |
602,582 | 0.66 | 75,915 | 0.46 | 526,667 | 0.19 | ||||||||
| Debentures |
— | — | — | — | — | — | ||||||||
| Call Money |
532,886 | 0.74 | (142,973 | ) | 0.38 | 675,860 | 0.36 | |||||||
| Payables under Repurchase Agreements |
— | — | — | — | — | — | ||||||||
| Bills Sold |
— | — | (112,170 | ) | (0.02 | ) | 112,170 | 0.02 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
187,507 | 0.87 | 108,241 | (0.31 | ) | 79,265 | 1.19 | |||||||
| (Domestic Operations) | ||||||||||||||
| Use of Funds |
5,907,500 | 1.40 | 554,240 | 0.13 | 5,353,259 | 1.27 | ||||||||
| Loans and Bills Discounted |
3,906,353 | 1.54 | 417,777 | 0.02 | 3,488,575 | 1.51 | ||||||||
| Securities |
1,318,126 | 1.15 | 32,776 | 0.16 | 1,285,349 | 0.99 | ||||||||
| Source of Funds |
5,770,572 | 0.62 | 502,163 | 0.26 | 5,268,408 | 0.35 | ||||||||
| Deposits |
2,949,022 | 0.49 | 351,939 | 0.19 | 2,597,083 | 0.30 | ||||||||
| NCDs |
602,582 | 0.66 | 75,915 | 0.46 | 526,667 | 0.19 | ||||||||
| Debentures |
— | — | — | — | — | — | ||||||||
| Call Money |
513,474 | 0.57 | (136,559 | ) | 0.39 | 650,033 | 0.18 | |||||||
| Payables under Repurchase Agreements |
— | — | — | — | — | — | ||||||||
| Bills Sold |
— | — | (112,170 | ) | (0.02 | ) | 112,170 | 0.02 | ||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
181,605 | 0.78 | 113,225 | (0.06 | ) | 68,380 | 0.85 | |||||||
| (International Operations) |
||||||||||||||
| Use of Funds |
558,278 | 3.33 | 226,763 | 0.96 | 331,514 | 2.37 | ||||||||
| Loans and Bills Discounted |
34,284 | 3.47 | 18,325 | (0.93 | ) | 15,958 | 4.40 | |||||||
| Securities |
338,073 | 4.68 | 105,807 | 1.79 | 232,266 | 2.88 | ||||||||
| Source of Funds |
561,886 | 2.43 | 225,834 | 0.32 | 336,051 | 2.11 | ||||||||
| Deposits |
22,367 | 4.19 | 10,471 | 1.96 | 11,896 | 2.22 | ||||||||
| NCDs |
— | — | — | — | — | — | ||||||||
| Debentures |
— | — | — | — | — | — | ||||||||
| Call Money |
19,411 | 5.32 | (6,414 | ) | 0.39 | 25,826 | 4.93 | |||||||
| Payables under Repurchase Agreements |
— | — | — | — | — | — | ||||||||
| Bills Sold |
— | — | — | — | — | — | ||||||||
| Commercial Paper |
— | — | — | — | — | — | ||||||||
| Borrowed Money |
5,901 | 3.49 | (4,983 | ) | 0.17 | 10,885 | 3.32 | |||||||
3-10
Mizuho Financial Group, Inc.
4. Net Gains/Losses on Securities
Non-Consolidated
Aggregated Figures of the 3 Banks
| (Millions of yen) | |||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Bonds |
38,218 | 22,972 | 15,246 | ||||||
| Gains on Sales and Others |
65,783 | 23,688 | 42,095 | ||||||
| Losses on Sales and Others |
(27,598 | ) | 552 | (28,150 | ) | ||||
| Devaluation |
(23 | ) | (6 | ) | (16 | ) | |||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
— | 630 | (630 | ) | |||||
| Gains (Losses) on Derivatives other than for Trading |
57 | (1,891 | ) | 1,948 | |||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Stocks |
73,935 | (7,519 | ) | 81,455 | |||||
| Gains on Sales |
106,586 | 17,734 | 88,851 | ||||||
| Losses on Sales |
(1,784 | ) | (20 | ) | (1,763 | ) | |||
| Devaluation |
(36,630 | ) | (27,333 | ) | (9,296 | ) | |||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
(599 | ) | (703 | ) | 103 | ||||
| Gains (Losses) on Derivatives other than for Trading |
6,364 | 2,804 | 3,560 | ||||||
| _____________ * Figures for the First Half of Fiscal 2007 include Reversal of Reserve for Possible Losses on Investments (included in Extraordinary Gains). |
| ||||||||
| Mizuho Bank |
|||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Bonds |
(681 | ) | 13,196 | (13,877 | ) | ||||
| Gains on Sales and Others |
11,084 | 7,865 | 3,218 | ||||||
| Losses on Sales and Others |
(9,849 | ) | 6,808 | (16,658 | ) | ||||
| Devaluation |
— | — | — | ||||||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
— | (28 | ) | 28 | |||||
| Gains (Losses) on Derivatives other than for Trading |
(1,915 | ) | (1,448 | ) | (467 | ) | |||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Stocks |
12,463 | 10,261 | 2,202 | ||||||
| Gains on Sales |
30,003 | 23,363 | 6,640 | ||||||
| Losses on Sales |
(719 | ) | 617 | (1,336 | ) | ||||
| Devaluation |
(16,020 | ) | (12,989 | ) | (3,030 | ) | |||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
(632 | ) | (590 | ) | (42 | ) | |||
| Gains (Losses) on Derivatives other than for Trading |
(167 | ) | (140 | ) | (27 | ) | |||
3-11
Mizuho Financial Group, Inc.
Mizuho Corporate Bank
| (Millions of yen) | |||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Bonds |
35,987 | 10,603 | 25,384 | ||||||
| Gains on Sales and Others |
51,172 | 16,068 | 35,103 | ||||||
| Losses on Sales and Others |
(17,041 | ) | (5,584 | ) | (11,457 | ) | |||
| Devaluation |
(0 | ) | 16 | (16 | ) | ||||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
— | 658 | (658 | ) | |||||
| Gains (Losses) on Derivatives other than for Trading |
1,857 | (556 | ) | 2,413 | |||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Stocks |
60,168 | (11,756 | ) | 71,925 | |||||
| Gains on Sales |
74,267 | (208 | ) | 74,475 | |||||
| Losses on Sales |
(1,057 | ) | (640 | ) | (417 | ) | |||
| Devaluation |
(19,607 | ) | (13,739 | ) | (5,867 | ) | |||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
33 | (113 | ) | 146 | |||||
| Gains (Losses) on Derivatives other than for Trading |
6,532 | 2,944 | 3,588 | ||||||
| _____________ * Figures for the First Half of Fiscal 2007 include Reversal of Reserve for Possible Losses on Investments (included in Extraordinary Gains). |
| ||||||||
| Mizuho Trust & Banking |
| ||||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Bonds |
2,912 | (827 | ) | 3,740 | |||||
| Gains on Sales and Others |
3,527 | (245 | ) | 3,772 | |||||
| Losses on Sales and Others |
(707 | ) | (672 | ) | (34 | ) | |||
| Devaluation |
(23 | ) | (23 | ) | (0 | ) | |||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
— | — | — | ||||||
| Gains (Losses) on Derivatives other than for Trading |
115 | 113 | 2 | ||||||
| First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
|||||||
| Net Gains (Losses) related to Stocks |
1,303 | (6,024 | ) | 7,327 | |||||
| Gains on Sales |
2,315 | (5,420 | ) | 7,735 | |||||
| Losses on Sales |
(8 | ) | 2 | (10 | ) | ||||
| Devaluation |
(1,003 | ) | (605 | ) | (397 | ) | |||
| Reversal of (Provision for) Reserve for Possible Losses on Investments |
(0 | ) | (0 | ) | — | ||||
| Gains (Losses) on Derivatives other than for Trading |
— | — | — | ||||||
3-12
Mizuho Financial Group, Inc.
5. Unrealized Gains/Losses on Securities
Consolidated
(1) Other Securities (which have readily determinable fair value)
| (Millions of yen) | |||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | |||||||||||||||||||||
| Book Value (=Fair Value) |
Unrealized Gains/Losses | Unrealized Gains/Losses | Unrealized Gains/Losses | ||||||||||||||||||||
| Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||
| Other Securities |
34,844,223 | 1,878,303 | 2,359,231 | 480,927 | 2,441,121 | 2,803,332 | 362,210 | 2,038,326 | 2,394,785 | 356,459 | |||||||||||||
| Japanese Stocks |
5,426,399 | 2,183,903 | 2,292,237 | 108,334 | 2,693,783 | 2,741,841 | 48,058 | 2,291,377 | 2,334,534 | 43,157 | |||||||||||||
| Japanese Bonds |
17,371,132 | (141,318 | ) | 5,047 | 146,365 | (157,458 | ) | 3,953 | 161,412 | (156,187 | ) | 7,881 | 164,069 | ||||||||||
| Japanese Government Bonds |
16,247,591 | (134,888 | ) | 3,808 | 138,696 | (152,314 | ) | 2,026 | 154,340 | (149,404 | ) | 6,202 | 155,606 | ||||||||||
| Other |
12,046,691 | (164,281 | ) | 61,946 | 226,227 | (95,203 | ) | 57,536 | 152,740 | (96,864 | ) | 52,369 | 149,233 | ||||||||||
| * | In addition to “Securities” on the consolidated balance sheets, NCDs in “Cash and Due from Banks” and certain items in “Other Debt Purchased” are also included. |
| * | Fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. |
| Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date. |
| * | The book values of Other Securities which have readily determinable fair value are stated at fair value, so Unrealized Gains/Losses indicate the difference between book value on the consolidated balance sheet and the acquisition cost. |
| * | Unrealized Gains /Losses include ¥14,090 million, ¥3,935 million and ¥(15,617) million, which were recognized in the statement of income for Septemter 30, 2007, March 31, 2007 and September 30, 2006, respectively, by applying the fair-value hedge method. |
As a result, the base amounts to be recorded directly to Net Assets after tax and consolidation adjustments as of September 30, 2007, March 31, 2007 and September 30, 2006 are ¥1,864,212 million, ¥2,437,185 million and ¥2,053,943 million, respectively.
| * | Unrealized Gains (Losses) on Other Securities, net of Taxes (recorded directly to Net Assets after tax and consolidation adjustments, excluding the amount recognized in the statement of income by applying the fair-value hedge method, including translation differences regarding securities which do not have readily determinable fair value) as of September 30, 2007, March 31, 2007 and September 30, 2006 are ¥1,180,567 million, ¥1,550,628 million and ¥1,196,840 million, respectively. |
(2) Bonds Held to Maturity (which have readily determinable fair value)
| (Millions of yen) | |||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | |||||||||||||||||||||
| Book Value |
Unrealized Gains/Losses | Unrealized Gains/Losses | Unrealized Gains/Losses | ||||||||||||||||||||
| Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||
| Bonds Held to Maturity |
895,539 | (3,285 | ) | — | 3,285 | (8,063 | ) | 0 | 8,064 | (9,375 | ) | 95 | 9,471 | ||||||||||
| Non-Consolidated
| |||||||||||||||||||||||
| (1) Other Securities (which have readily determinable fair value) | |||||||||||||||||||||||
| Aggregated Figures of the 3 Banks | |||||||||||||||||||||||
| (Millions of yen) | |||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | |||||||||||||||||||||
| Book Value (=Fair Value) |
Unrealized Gains/Losses | Unrealized Gains/Losses | Unrealized Gains/Losses | ||||||||||||||||||||
| Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||
| Other Securities |
34,248,676 | 1,794,302 | 2,276,237 | 481,934 | 2,356,868 | 2,717,122 | 360,254 | 1,961,131 | 2,317,099 | 355,967 | |||||||||||||
| Japanese Stocks |
5,380,669 | 2,099,554 | 2,209,763 | 110,208 | 2,609,834 | 2,656,650 | 46,815 | 2,210,579 | 2,254,100 | 43,521 | |||||||||||||
| Japanese Bonds |
17,176,133 | (141,196 | ) | 5,033 | 146,230 | (157,254 | ) | 3,949 | 161,203 | (155,962 | ) | 7,882 | 163,845 | ||||||||||
| Japanese Government Bonds |
16,037,878 | (134,659 | ) | 3,796 | 138,455 | (151,940 | ) | 2,025 | 153,966 | (148,943 | ) | 6,201 | 155,145 | ||||||||||
| Other |
11,691,874 | (164,054 | ) | 61,440 | 225,495 | (95,712 | ) | 56,523 | 152,235 | (93,484 | ) | 55,116 | 148,601 | ||||||||||
| Mizuho Bank | |||||||||||||||||||||||
| Other Securities |
16,031,801 | 246,064 | 399,558 | 153,493 | 380,618 | 481,796 | 101,178 | 327,222 | 427,693 | 100,470 | |||||||||||||
| Japanese Stocks |
1,232,115 | 327,740 | 384,636 | 56,896 | 446,577 | 466,982 | 20,405 | 386,276 | 405,420 | 19,144 | |||||||||||||
| Japanese Bonds |
11,263,456 | (64,367 | ) | 2,870 | 67,238 | (72,167 | ) | 2,184 | 74,352 | (70,622 | ) | 6,322 | 76,945 | ||||||||||
| Japanese Government Bonds |
10,684,119 | (61,976 | ) | 2,628 | 64,605 | (70,450 | ) | 1,749 | 72,199 | (68,453 | ) | 5,909 | 74,363 | ||||||||||
| Other |
3,536,230 | (17,307 | ) | 12,050 | 29,358 | 6,208 | 12,629 | 6,420 | 11,568 | 15,949 | 4,381 | ||||||||||||
| Mizuho Corporate Bank | |||||||||||||||||||||||
| Other Securities |
16,220,600 | 1,400,789 | 1,696,438 | 295,648 | 1,787,186 | 2,013,717 | 226,531 | 1,459,721 | 1,686,867 | 227,146 | |||||||||||||
| Japanese Stocks |
3,781,478 | 1,595,142 | 1,646,287 | 51,144 | 1,944,320 | 1,969,423 | 25,103 | 1,622,959 | 1,646,733 | 23,773 | |||||||||||||
| Japanese Bonds |
4,730,139 | (51,001 | ) | 2,009 | 53,010 | (58,724 | ) | 1,707 | 60,432 | (61,556 | ) | 1,459 | 63,016 | ||||||||||
| Japanese Government Bonds |
4,270,536 | (47,257 | ) | 1,117 | 48,374 | (55,617 | ) | 276 | 55,893 | (57,383 | ) | 273 | 57,656 | ||||||||||
| Other |
7,708,981 | (143,351 | ) | 48,141 | 191,493 | (98,408 | ) | 42,586 | 140,994 | (101,681 | ) | 38,674 | 140,356 | ||||||||||
| Mizuho Trust & Banking | |||||||||||||||||||||||
| Other Securities |
1,996,274 | 147,448 | 180,240 | 32,792 | 189,063 | 221,608 | 32,544 | 174,187 | 202,537 | 28,350 | |||||||||||||
| Japanese Stocks |
367,075 | 176,670 | 178,839 | 2,168 | 218,937 | 220,244 | 1,306 | 201,343 | 201,946 | 603 | |||||||||||||
| Japanese Bonds |
1,182,536 | (25,827 | ) | 153 | 25,981 | (26,362 | ) | 56 | 26,418 | (23,783 | ) | 99 | 23,883 | ||||||||||
| Japanese Government Bonds |
1,083,221 | (25,425 | ) | 50 | 25,476 | (25,873 | ) | 0 | 25,873 | (23,106 | ) | 18 | 23,125 | ||||||||||
| Other |
446,661 | (3,395 | ) | 1,247 | 4,642 | (3,512 | ) | 1,307 | 4,819 | (3,371 | ) | 491 | 3,863 | ||||||||||
| * | In addition to “Securities” indicated on the balance sheets, NCDs in “Cash and Due from Banks” and certain items in “Other Debt Purchased” are also included. |
| * | Fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the balance sheet date. |
Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the balance sheet date.
| * | The book values of Other Securities which have readily determinable fair value are stated at fair value, so Unrealized Gains/Losses indicate the difference between book value on the balance sheet and the acquisition cost. |
| * | Unrealized Gains /Losses include ¥14,090 million, ¥3,935 million and ¥(15,617) million, which were recognized in the statement of income for Septemer 30, 2007, March 31, 2007 and September 30, 2006, respectively, by applying the fair-value hedge method. |
As a result, the base amounts to be recorded directly to Net Assets after tax adjustment as of September 30, 2007, March 31, 2007 and September 30, 2006 are ¥1,780,212 million, ¥2,352,932 million and ¥1,976,749 million, respectively.
| * | Unrealized Gains (Losses) on Other Securities, net of Taxes (recorded directly to Net Assets after tax adjustment, excluding the amount recognized in the statement of income by applying the fair-value hedge method, including translation differences regarding securities which do not have readily determinable fair value) as of September 30, 2007, March 31, 2007 and September 30, 2006 are as follows: |
| (Millions of yen) | ||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||
| Aggregated Figures |
1,151,865 | 1,529,195 | 1,173,468 | |||
| Mizuho Bank |
143,689 | 251,748 | 193,755 | |||
| Mizuho Corporate Bank |
894,497 | 1,135,629 | 876,244 | |||
| Mizuho Trust & Banking |
113,678 | 141,816 | 103,468 | |||
3-13
Mizuho Financial Group, Inc.
(2) Bonds Held to Maturity (which have readily determinable fair value)
Aggregated Figures of the 3 Banks
| (Millions of yen) | |||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | |||||||||||||||||||||
| Book Value | Unrealized Gains/Losses | Unrealized Gains/Losses | Unrealized Gains/Losses | ||||||||||||||||||||
| Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||
| Aggregated Figures |
895,539 | (3,285 | ) | — | 3,285 | (8,063 | ) | 0 | 8,064 | (9,375 | ) | 95 | 9,471 | ||||||||||
| Mizuho Bank |
895,539 | (3,285 | ) | — | 3,285 | (8,063 | ) | 0 | 8,064 | (9,375 | ) | 95 | 9,471 | ||||||||||
| Mizuho Corporate Bank |
— | — | — | — | — | — | — | — | — | — | |||||||||||||
| Mizuho Trust & Banking |
— | — | — | — | — | — | — | — | — | — | |||||||||||||
| (3) Investment in Subsidiaries and Affiliates (which have readily determinable fair value) | |||||||||||||||||||||||
| Aggregated Figures of the 3 Banks | |||||||||||||||||||||||
| (Millions of yen) | |||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | |||||||||||||||||||||
| Book Value | Unrealized Gains/Losses | Unrealized Gains/Losses | Unrealized Gains/Losses | ||||||||||||||||||||
| Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||
| Aggregated Figures |
78,783 | 62,822 | 62,822 | — | 130,942 | 130,942 | — | 104,664 | 104,664 | — | |||||||||||||
| Mizuho Bank |
67,098 | 32,426 | 32,426 | — | 90,978 | 90,978 | — | 77,740 | 77,740 | — | |||||||||||||
| Mizuho Corporate Bank |
11,684 | 30,396 | 30,396 | — | 39,963 | 39,963 | — | 26,924 | 26,924 | — | |||||||||||||
| Mizuho Trust & Banking |
— | — | — | — | — | — | — | — | — | — | |||||||||||||
| Mizuho Financial Group, Inc. (Non-Consolidated) | |||||||||||||||||||||||
| (Millions of yen) | |||||||||||||||||||||||
| Investments in Subsidiaries and Affiliates |
137,171 | 521,287 | 521,287 | — | 785,251 | 785,251 | — | 797,257 | 797,257 | — | |||||||||||||
(Reference)
Unrealized Gains/Losses on Other Securities
(the base amount to be recorded directly to Net Assets after tax and other necessary adjustments)
For certain Other Securities (which have readily determinable fair value), Unrealized Gains/Losses were recognized in the statement of income by applying the fair-value hedge method. They were excluded from Unrealized Gains (Losses) on Other Securities. These adjusted Unrealized Gains/Losses were the base amount, which was to be recorded directly to Net Assets after tax and other necessary adjustments. The base amount was as follows:
Consolidated
| (Millions of yen) | |||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 |
|||||||||||||
| Unrealized Gains/Losses | |||||||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
Unrealized Gains/Losses |
Unrealized Gains/Losses |
||||||||||||
| Other Securities |
1,864,212 | (572,973 | ) | (189,730 | ) | 2,437,185 | 2,053,943 | ||||||||
| Japanese Stocks |
2,183,903 | (509,880 | ) | (107,474 | ) | 2,693,783 | 2,291,377 | ||||||||
| Japanese Bonds |
(169,979 | ) | (5,818 | ) | (10,047 | ) | (164,160 | ) | (159,931 | ) | |||||
| Japanese Government Bonds |
(164,162 | ) | (4,292 | ) | (9,725 | ) | (159,869 | ) | (154,437 | ) | |||||
| Other |
(149,711 | ) | (57,273 | ) | (72,209 | ) | (92,437 | ) | (77,501 | ) | |||||
| Non-Consolidated
|
| ||||||||||||||
| Aggregated Figures of the 3 Banks |
| ||||||||||||||
| (Millions of yen) | |||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 |
|||||||||||||
| Unrealized Gains/Losses | |||||||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
Unrealized Gains/Losses |
Unrealized Gains/Losses |
||||||||||||
| Other Securities |
1,780,212 | (572,720 | ) | (196,537 | ) | 2,352,932 | 1,976,749 | ||||||||
| Japanese Stocks |
2,099,554 | (510,280 | ) | (111,024 | ) | 2,609,834 | 2,210,579 | ||||||||
| Japanese Bonds |
(169,857 | ) | (5,901 | ) | (10,150 | ) | (163,956 | ) | (159,707 | ) | |||||
| Japanese Government Bonds |
(163,933 | ) | (4,437 | ) | (9,957 | ) | (159,496 | ) | (153,976 | ) | |||||
| Other |
(149,484 | ) | (56,538 | ) | (75,362 | ) | (92,945 | ) | (74,122 | ) | |||||
3-14
Mizuho Financial Group, Inc.
6. Projected Redemption Amounts for Securities
n The redemption schedule by term for Bonds Held to Maturity and Other Securities with maturities is as follows:
Non-Consolidated
| (Billions of yen) | ||||||||||||||||||||||||||||
| Maturity as of September 30, 2007 | Change | Maturity as of March 31, 2007 | ||||||||||||||||||||||||||
| Within 1 year |
1 - 5 years |
5 - 10 years |
Over 10 years |
Within 1 year |
1 - 5 years |
5 - 10 years |
Over 10 years |
Within 1 year |
1 - 5 years |
5 - 10 years |
Over 10 years | |||||||||||||||||
| Aggregated Figures of the 3 Banks |
||||||||||||||||||||||||||||
| Japanese Bonds |
8,578.3 | 7,093.1 | 2,178.5 | 1,867.4 | 2,118.0 | (657.0 | ) | (293.8 | ) | 65.6 | 6,460.3 | 7,750.1 | 2,472.4 | 1,801.7 | ||||||||||||||
| Japanese Government Bonds |
8,224.1 | 5,306.9 | 1,656.9 | 1,419.3 | 2,180.4 | (470.7 | ) | (364.9 | ) | 6.5 | 6,043.7 | 5,777.6 | 2,021.8 | 1,412.8 | ||||||||||||||
| Japanese Local Government Bonds |
10.6 | 70.6 | 29.6 | 7.9 | 6.5 | (19.2 | ) | (7.3 | ) | (0.2 | ) | 4.0 | 89.8 | 36.9 | 8.2 | |||||||||||||
| Japanese Corporate Bonds |
343.6 | 1,715.5 | 492.0 | 440.0 | (68.9 | ) | (167.0 | ) | 78.4 | 59.4 | 412.5 | 1,882.6 | 413.6 | 380.6 | ||||||||||||||
| Other |
977.6 | 3,988.9 | 2,432.9 | 3,862.4 | (41.6 | ) | (47.1 | ) | (431.1 | ) | 26.2 | 1,019.2 | 4,036.1 | 2,864.1 | 3,836.2 | |||||||||||||
| Mizuho Bank | ||||||||||||||||||||||||||||
| Japanese Bonds |
7,082.5 | 4,627.9 | 868.2 | 949.8 | 2,063.6 | (575.9 | ) | (204.9 | ) | 107.5 | 5,018.8 | 5,203.8 | 1,073.2 | 842.3 | ||||||||||||||
| Japanese Government Bonds |
6,845.3 | 3,120.0 | 466.8 | 821.3 | 2,101.7 | (450.5 | ) | (265.2 | ) | 84.2 | 4,743.6 | 3,570.5 | 732.0 | 737.1 | ||||||||||||||
| Japanese Local Government Bonds |
8.0 | 64.4 | 24.0 | — | 6.9 | (17.3 | ) | (7.3 | ) | — | 1.1 | 81.7 | 31.4 | — | ||||||||||||||
| Japanese Corporate Bonds |
229.1 | 1,443.5 | 377.2 | 128.4 | (44.9 | ) | (107.9 | ) | 67.5 | 23.3 | 274.1 | 1,551.5 | 309.7 | 105.1 | ||||||||||||||
| Other |
72.5 | 1,127.4 | 841.3 | 1,631.1 | (40.4 | ) | 92.1 | 39.9 | 219.1 | 112.9 | 1,035.2 | 801.4 | 1,411.9 | |||||||||||||||
| Mizuho Corporate Bank | ||||||||||||||||||||||||||||
| Japanese Bonds |
1,287.3 | 2,050.7 | 937.5 | 707.2 | (105.7 | ) | (111.6 | ) | (177.1 | ) | 13.8 | 1,393.0 | 2,162.4 | 1,114.6 | 693.4 | |||||||||||||
| Japanese Government Bonds |
1,198.6 | 1,834.2 | 835.4 | 402.1 | (101.4 | ) | (55.3 | ) | (187.9 | ) | (14.8 | ) | 1,300.0 | 1,889.6 | 1,023.3 | 416.9 | ||||||||||||
| Japanese Local Government Bonds |
0.2 | 1.2 | 1.9 | 7.9 | (1.2 | ) | (0.1 | ) | 0.0 | (0.2 | ) | 1.4 | 1.4 | 1.9 | 8.2 | |||||||||||||
| Japanese Corporate Bonds |
88.4 | 215.1 | 100.1 | 297.0 | (3.1 | ) | (56.1 | ) | 10.8 | 28.9 | 91.6 | 271.2 | 89.3 | 268.1 | ||||||||||||||
| Other |
878.6 | 2,550.2 | 1,454.3 | 2,188.1 | (21.3 | ) | (370.7 | ) | (464.4 | ) | (236.1 | ) | 900.0 | 2,920.9 | 1,918.8 | 2,424.2 | ||||||||||||
| Mizuho Trust & Banking | ||||||||||||||||||||||||||||
| Japanese Bonds |
208.5 | 414.4 | 372.7 | 210.3 | 160.1 | 30.5 | 88.2 | (55.6 | ) | 48.4 | 383.8 | 284.5 | 266.0 | |||||||||||||||
| Japanese Government Bonds |
180.1 | 352.6 | 354.5 | 195.8 | 180.1 | 35.2 | 88.2 | (62.8 | ) | 0.0 | 317.4 | 266.3 | 258.7 | |||||||||||||||
| Japanese Local Government Bonds |
2.3 | 4.9 | 3.5 | — | 0.8 | (1.6 | ) | 0.0 | — | 1.5 | 6.6 | 3.5 | — | |||||||||||||||
| Japanese Corporate Bonds |
25.9 | 56.8 | 14.6 | 14.5 | (20.8 | ) | (3.0 | ) | 0.0 | 7.1 | 46.8 | 59.8 | 14.5 | 7.3 | ||||||||||||||
| Other |
26.4 | 311.2 | 137.1 | 43.1 | 20.2 | 231.4 | (6.7 | ) | 43.1 | 6.1 | 79.8 | 143.9 | — | |||||||||||||||
3-15
Mizuho Financial Group, Inc.
7. Overview of Derivative Transactions Qualifying for Hedge Accounting
Non-Consolidated
n Notional Amounts of Interest Rate Swaps (qualifying for hedge accounting (deferred method)) by Remaining Contractual Term
| (Billions of yen) | ||||||||||||||||||||||||||||
| As of September 30, 2007 | Change | As of March 31, 2007 | ||||||||||||||||||||||||||
| Within 1 year |
1 - 5 |
Over |
Total |
Within |
1 - 5 |
Over |
Total |
Within |
1 - 5 |
Over |
Total | |||||||||||||||||
| Aggregated Figures of the 3 Banks |
||||||||||||||||||||||||||||
| Receive Fixed / Pay Float |
6,048.6 | 9,798.7 | 3,345.4 | 19,192.7 | 677.0 | (3,161.5 | ) | 721.3 | (1,763.2 | ) | 5,371.6 | 12,960.3 | 2,624.0 | 20,956.0 | ||||||||||||||
| Receive Float / Pay Fixed |
2,396.0 | 4,266.4 | 1,578.0 | 8,240.6 | 812.4 | 443.5 | 499.4 | 1,755.3 | 1,583.6 | 3,822.9 | 1,078.6 | 6,485.2 | ||||||||||||||||
| Receive Float / Pay Float |
831.2 | 287.9 | 24.8 | 1,143.9 | 273.8 | (274.0 | ) | — | (0.2 | ) | 557.4 | 561.9 | 24.8 | 1,144.1 | ||||||||||||||
| Receive Fixed / Pay Fixed |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Total |
9,275.9 | 14,353.1 | 4,948.2 | 28,577.3 | 1,763.2 | (2,992.0 | ) | 1,220.7 | (8.0 | ) | 7,512.7 | 17,345.1 | 3,727.5 | 28,585.4 | ||||||||||||||
| Mizuho Bank |
||||||||||||||||||||||||||||
| Receive Fixed / Pay Float |
1,809.0 | 2,449.1 | 525.1 | 4,783.2 | 1,641.1 | (1,501.8 | ) | (48.1 | ) | 91.0 | 167.9 | 3,950.9 | 573.2 | 4,692.1 | ||||||||||||||
| Receive Float / Pay Fixed |
186.9 | 50.0 | 229.9 | 466.8 | 134.6 | — | 20.0 | 154.6 | 52.3 | 50.0 | 209.9 | 312.2 | ||||||||||||||||
| Receive Float / Pay Float |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Receive Fixed / Pay Fixed |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Total |
1,995.9 | 2,499.1 | 755.0 | 5,250.0 | 1,775.7 | (1,501.8 | ) | (28.1 | ) | 245.6 | 220.2 | 4,000.9 | 783.1 | 5,004.3 | ||||||||||||||
| Mizuho Corporate Bank |
||||||||||||||||||||||||||||
| Receive Fixed / Pay Float |
4,239.6 | 7,204.5 | 2,665.2 | 14,109.5 | (944.0 | ) | (1,659.7 | ) | 764.5 | (1,839.3 | ) | 5,183.7 | 8,864.3 | 1,900.7 | 15,948.8 | |||||||||||||
| Receive Float / Pay Fixed |
2,149.1 | 3,996.4 | 1,348.1 | 7,493.8 | 687.8 | 333.5 | 529.4 | 1,550.7 | 1,461.3 | 3,662.9 | 818.7 | 5,943.0 | ||||||||||||||||
| Receive Float / Pay Float |
831.2 | 287.9 | 24.8 | 1,143.9 | 273.8 | (274.0 | ) | — | (0.2 | ) | 557.4 | 561.9 | 24.8 | 1,144.1 | ||||||||||||||
| Receive Fixed / Pay Fixed |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Total |
7,220.0 | 11,488.9 | 4,038.2 | 22,747.3 | 17.5 | (1,600.2 | ) | 1,293.9 | (288.7 | ) | 7,202.5 | 13,089.2 | 2,744.3 | 23,036.0 | ||||||||||||||
| Mizuho Trust & Banking |
||||||||||||||||||||||||||||
| Receive Fixed / Pay Float |
— | 145.0 | 155.0 | 300.0 | (20.0 | ) | — | 5.0 | (15.0 | ) | 20.0 | 145.0 | 150.0 | 315.0 | ||||||||||||||
| Receive Float / Pay Fixed |
60.0 | 220.0 | — | 280.0 | (10.0 | ) | 110.0 | (50.0 | ) | 50.0 | 70.0 | 110.0 | 50.0 | 230.0 | ||||||||||||||
| Receive Float / Pay Float |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Receive Fixed / Pay Fixed |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Total |
60.0 | 365.0 | 155.0 | 580.0 | (30.0 | ) | 110.0 | (45.0 | ) | 35.0 | 90.0 | 255.0 | 200.0 | 545.0 | ||||||||||||||
(Reference)
Deferred Hedge Gains/Losses of Derivative Transactions Qualifying for Hedge Accounting
| (Billions of yen) | |||||||||||||||||||||||||||||||
| As of September 30, 2007 | Change | As of March 31, 2007 | |||||||||||||||||||||||||||||
| Deferred Hedge Gains/Losses | Deferred Hedge Gains/Losses | Deferred Hedge Gains/Losses | |||||||||||||||||||||||||||||
| Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||
| Aggregated Figures |
561.4 | 729.1 | (167.7 | ) | 37.2 | (2.9 | ) | 40.2 | 524.1 | 732.1 | (208.0 | ) | |||||||||||||||||||
| Mizuho Bank |
82.0 | 169.7 | (87.6 | ) | (14.9 | ) | (26.6 | ) | 11.7 | 97.0 | 196.3 | (99.3 | ) | ||||||||||||||||||
| Mizuho Corporate Bank |
431.0 | 511.6 | (80.6 | ) | 55.4 | 26.1 | 29.3 | 375.5 | 485.5 | (110.0 | ) | ||||||||||||||||||||
| Mizuho Trust & Banking |
48.3 | 47.8 | 0.5 | (3.2 | ) | (2.4 | ) | (0.8 | ) | 51.5 | 50.2 | 1.3 | |||||||||||||||||||
| * | Above figures reflect all derivative transactions qualifying for hedge accounting, and are before net of applicable income taxes. |
3-16
Mizuho Financial Group, Inc.
8. Employee Retirement Benefits
Non-Consolidated
Projected Benefit Obligation
| (Millions of yen) | |||||||||||
| Aggregated Figures of the 3 Banks | First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
||||||||
| Projected Benefit Obligation (at the beginning of the fiscal year) |
(A) | 1,106,214 | 36,585 | 1,069,628 | |||||||
| Discount Rate (%) |
2.5 | — | 2.5 | ||||||||
| Fair Value of Plan Assets (at the beginning of the fiscal year) |
(B) | 1,593,641 | (261,301 | ) | 1,854,943 | ||||||
| Unrecognized Net Obligation |
(C) | 21,253 | 204,164 | (182,911 | ) | ||||||
| Unrecognized Actuarial Differences (at the beginning of the fiscal year) |
21,253 | 204,164 | (182,911 | ) | |||||||
| Amount accumulated (amortized) during the period |
(10,748 | ) | (10,967 | ) | 219 | ||||||
| Prepaid Pension Cost (at the beginning of the fiscal year) |
(D) | 519,004 | (93,406 | ) | 612,411 | ||||||
| Reserve for Employee Retirement Benefits (at the beginning of the fiscal year) |
(A)-(B)-(C)+(D) | 10,323 | 315 | 10,007 | |||||||
| Mizuho Bank |
|||||||||||
| Projected Benefit Obligation (at the beginning of the fiscal year) |
(A) | 647,710 | 24,889 | 622,820 | |||||||
| Discount Rate (%) |
2.5 | — | 2.5 | ||||||||
| Fair Value of Plan Assets (at the beginning of the fiscal year) |
(B) | 938,426 | (132,681 | ) | 1,071,108 | ||||||
| Unrecognized Net Obligation |
(C) | 46,799 | 123,702 | (76,903 | ) | ||||||
| Unrecognized Actuarial Differences (at the beginning of the fiscal year) |
46,799 | 123,702 | (76,903 | ) | |||||||
| Amount accumulated (amortized) during the period |
(8,411 | ) | (6,716 | ) | (1,695 | ) | |||||
| Prepaid Pension Cost (at the beginning of the fiscal year) |
(D) | 337,515 | (33,868 | ) | 371,384 | ||||||
| Reserve for Employee Retirement Benefits (at the beginning of the fiscal year) |
(A)-(B)-(C)+(D) | — | — | — | |||||||
| Mizuho Corporate Bank |
|||||||||||
| Projected Benefit Obligation (at the beginning of the fiscal year) |
(A) | 336,767 | 6,823 | 329,943 | |||||||
| Discount Rate (%) |
2.5 | — | 2.5 | ||||||||
| Fair Value of Plan Assets (at the beginning of the fiscal year) |
(B) | 499,063 | (138,790 | ) | 637,853 | ||||||
| Unrecognized Net Obligation |
(C) | (31,644 | ) | 84,512 | (116,156 | ) | |||||
| Unrecognized Actuarial Differences (at the beginning of the fiscal year) |
(31,644 | ) | 84,512 | (116,156 | ) | ||||||
| Amount accumulated (amortized) during the period |
(643 | ) | (4,281 | ) | 3,638 | ||||||
| Prepaid Pension Cost (at the beginning of the fiscal year) |
(D) | 130,652 | (61,102 | ) | 191,754 | ||||||
| Reserve for Employee Retirement Benefits (at the beginning of the fiscal year) |
(A)-(B)-(C)+(D) | — | — | — | |||||||
| Mizuho Trust & Banking |
|||||||||||
| Projected Benefit Obligation (at the beginning of the fiscal year) |
(A) | 121,736 | 4,872 | 116,864 | |||||||
| Discount Rate (%) |
2.5 | — | 2.5 | ||||||||
| Fair Value of Plan Assets (at the beginning of the fiscal year) |
(B) | 156,150 | 10,169 | 145,980 | |||||||
| Unrecognized Net Obligation |
(C) | 6,098 | (4,049 | ) | 10,148 | ||||||
| Unrecognized Actuarial Differences (at the beginning of the fiscal year) |
6,098 | (4,049 | ) | 10,148 | |||||||
| Amount accumulated (amortized) during the period |
(1,692 | ) | 30 | (1,722 | ) | ||||||
| Prepaid Pension Cost (at the beginning of the fiscal year) |
(D) | 50,836 | 1,563 | 49,273 | |||||||
| Reserve for Employee Retirement Benefits (at the beginning of the fiscal year) |
(A)-(B)-(C)+(D) | 10,323 | 315 | 10,007 | |||||||
3-17
Mizuho Financial Group, Inc.
Income (Expenses) related to Employee Retirement Benefits
| (Millions of yen) | |||||||||
| Aggregated Figures of the 3 Banks | First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
||||||
| Service Cost |
(7,964 | ) | (69 | ) | (7,895 | ) | |||
| Interest Cost |
(13,827 | ) | (457 | ) | (13,370 | ) | |||
| Expected Return on Plan Assets |
46,282 | 11,966 | 34,316 | ||||||
| Accumulation (Amortization) of Unrecognized Actuarial Differences |
(10,748 | ) | (10,967 | ) | 219 | ||||
| Other |
(2,690 | ) | (385 | ) | (2,304 | ) | |||
| Total |
11,052 | 86 | 10,966 | ||||||
| Mizuho Bank |
|||||||||
| Service Cost |
(5,109 | ) | (1 | ) | (5,107 | ) | |||
| Interest Cost |
(8,096 | ) | (311 | ) | (7,785 | ) | |||
| Expected Return on Plan Assets |
27,555 | 7,739 | 19,815 | ||||||
| Accumulation (Amortization) of Unrecognized Actuarial Differences |
(8,411 | ) | (6,716 | ) | (1,695 | ) | |||
| Other |
(1,948 | ) | (175 | ) | (1,772 | ) | |||
| Total |
3,989 | 535 | 3,454 | ||||||
| Mizuho Corporate Bank |
|||||||||
| Service Cost |
(1,801 | ) | (41 | ) | (1,759 | ) | |||
| Interest Cost |
(4,209 | ) | (85 | ) | (4,124 | ) | |||
| Expected Return on Plan Assets |
14,470 | 2,670 | 11,800 | ||||||
| Accumulation (Amortization) of Unrecognized Actuarial Differences |
(643 | ) | (4,281 | ) | 3,638 | ||||
| Other |
(625 | ) | (214 | ) | (411 | ) | |||
| Total |
7,190 | (1,951 | ) | 9,142 | |||||
| Mizuho Trust & Banking |
|||||||||
| Service Cost |
(1,054 | ) | (26 | ) | (1,027 | ) | |||
| Interest Cost |
(1,521 | ) | (60 | ) | (1,460 | ) | |||
| Expected Return on Plan Assets |
4,256 | 1,556 | 2,700 | ||||||
| Accumulation (Amortization) of Unrecognized Actuarial Differences |
(1,692 | ) | 30 | (1,722 | ) | ||||
| Other |
(116 | ) | 4 | (120 | ) | ||||
| Total |
(128 | ) | 1,502 | (1,631 | ) | ||||
| (Millions of yen) | |||||||||
| Consolidated | First Half of Fiscal 2007 |
Change | First Half of Fiscal 2006 |
||||||
| Projected Benefit Obligation (at the beginning of the fiscal year) |
1,176,329 | 47,069 | 1,129,260 | ||||||
| Unrecognized Net Obligation |
36,822 | 211,468 | (174,646 | ) | |||||
| Unrecognized Actuarial Differences (at the beginning of the fiscal year) |
36,822 | 211,468 | (174,646 | ) | |||||
| Amount accumulated (amortized) during the period |
(11,852 | ) | (11,473 | ) | (378 | ) | |||
| Income (Expenses) related to Employee Retirement Benefits |
6,610 | 640 | 5,969 | ||||||
3-18
Mizuho Financial Group, Inc.
9. Capital Adequacy Ratio (Basel II)
Consolidated
Mizuho Financial Group
BIS Standard
| (%, Billions of yen) | |||||||||||
| As of September 30, 2007 | |||||||||||
| Preliminary | Change from March 31, 2007 |
As of March 31, 2007 |
|||||||||
| (1) Capital Adequacy Ratio |
11.79 | (0.69 | ) | 12.48 | |||||||
| Tier 1 Capital Ratio |
6.97 | 0.01 | 6.96 | ||||||||
| (2) Tier 1 Capital |
4,918.7 | (14.8 | ) | 4,933.5 | |||||||
| Common Stock and Preferred Stock |
1,540.9 | — | 1,540.9 | ||||||||
| Capital Surplus |
411.0 | (0.0 | ) | 411.1 | |||||||
| Retained Earnings |
1,490.6 | 50.7 | 1,439.9 | ||||||||
| Less: Treasury Stock |
2.4 | (29.9 | ) | 32.3 | |||||||
| Less: Dividends (estimate), etc |
— | (101.2 | ) | 101.2 | |||||||
| Less: Unrealized Losses on Other Securities |
— | — | — | ||||||||
| Foreign Currency Translation Adjustments |
(36.7 | ) | 2.2 | (38.9 | ) | ||||||
| Minority Interests in Consolidated Subsidiaries |
1,527.7 | (198.4 | ) | 1,726.1 | |||||||
| Preferred Securities Issued by Overseas SPCs |
1,314.0 | (190.9 | ) | 1,504.9 | |||||||
| Other |
(12.5 | ) | (0.4 | ) | (12.1 | ) | |||||
| (3) Tier 2 Capital |
3,723.2 | (369.3 | ) | 4,092.6 | |||||||
| Tier 2 Capital Included as Qualifying Capital |
3,723.2 | (369.3 | ) | 4,092.6 | |||||||
| 45% of Unrealized Gains on Other Securities |
842.3 | (258.4 | ) | 1,100.8 | |||||||
| 45% of Revaluation Reserve for Land |
114.4 | (1.6 | ) | 116.0 | |||||||
| General Reserve for Possible Losses on Loans, etc |
72.2 | (59.3 | ) | 131.5 | |||||||
| Debt Capital, etc |
2,694.2 | (49.9 | ) | 2,744.1 | |||||||
| Perpetual Subordinated Debt and Other Debt Capital |
691.9 | (93.6 | ) | 785.5 | |||||||
| Dated Subordinated Debt and Redeemable Preferred Stock |
2,002.2 | 43.6 | 1,958.6 | ||||||||
| Other |
— | — | — | ||||||||
| (4) Deductions for Total Risk-based Capital |
316.7 | 131.9 | 184.7 | ||||||||
| (5) Total Risk-based Capital (2)+(3)-(4) |
8,325.2 | (516.0 | ) | 8,841.3 | |||||||
| (6) Risk-weighted Assets |
70,555.1 | (240.2 | ) | 70,795.4 | |||||||
| Credit Risk Assets |
61,694.7 | 1,939.7 | 59,755.0 | ||||||||
| On-balance-sheet Items |
51,440.2 | 2,721.6 | 48,718.5 | ||||||||
| Off-balance-sheet Items |
10,254.5 | (781.9 | ) | 11,036.4 | |||||||
| Market Risk Equivalent Assets |
2,680.2 | 493.7 | 2,186.4 | ||||||||
| Operational Risk Equivalent Assets |
3,905.5 | 28.0 | 3,877.5 | ||||||||
| Adjusted Floor Amount |
2,274.6 | (2,701.8 | ) | 4,976.4 | |||||||
| (Reference) Basel I basis |
|||||||||||
| (1) Capital Adequacy Ratio |
10.90 | (0.68 | ) | 11.58 | |||||||
| Tier 1 Capital Ratio |
6.03 | (0.14 | ) | 6.17 | |||||||
| (2) Tier 1 Capital |
4,931.2 | (14.3 | ) | 4,945.6 | |||||||
| (3) Tier 2 Capital |
4,098.1 | (363.7 | ) | 4,461.8 | |||||||
| (4) Deductions for Total Risk-based Capital |
125.3 | 3.4 | 121.9 | ||||||||
| (5) Total Risk-based Capital (2)+(3)-(4) |
8,904.1 | (381.5 | ) | 9,285.6 | |||||||
| (6) Risk-weighted Assets |
81,674.3 | 1,555.8 | 80,118.4 | ||||||||
3-19
Mizuho Financial Group, Inc.
Mizuho Bank
Domestic Standard
| (%, Billions of yen) | |||||||||
| As of September 30, 2007 | As of | ||||||||
| (Preliminary) | Change from March 31, 2007 |
||||||||
| (1) Capital Adequacy Ratio |
12.25 | 0.51 | 11.74 | ||||||
| Tier 1 Capital Ratio |
7.60 | 0.49 | 7.11 | ||||||
| (2) Tier 1 Capital |
2,122.1 | 54.4 | 2,067.7 | ||||||
| (3) Tier 2 Capital |
1,346.8 | (38.8 | ) | 1,385.6 | |||||
| (4) Deductions for Total Risk-based Capital |
48.2 | 7.7 | 40.5 | ||||||
| (5) Total Risk-based Capital (2)+(3)-(4) |
3,420.7 | 7.9 | 3,412.8 | ||||||
| (6) Risk-weighted Assets |
27,913.5 | (1,140.0 | ) | 29,053.6 | |||||
| (Reference) Basel I basis |
|||||||||
| Capital Adequacy Ratio |
10.46 | 0.15 | 10.31 | ||||||
| Tier 1 Capital Ratio |
6.13 | 0.16 | 5.97 | ||||||
| Mizuho Corporate Bank |
|||||||||
| BIS Standard |
|||||||||
| (1) Capital Adequacy Ratio |
13.04 | (0.97 | ) | 14.01 | |||||
| Tier 1 Capital Ratio |
8.54 | (0.02 | ) | 8.56 | |||||
| (2) Tier 1 Capital |
3,284.0 | 27.2 | 3,256.8 | ||||||
| (3) Tier 2 Capital |
2,004.6 | (247.4 | ) | 2,252.1 | |||||
| (4) Deductions for Total Risk-based Capital |
276.3 | 96.9 | 179.4 | ||||||
| (5) Total Risk-based Capital (2)+(3)-(4) |
5,012.3 | (317.2 | ) | 5,329.5 | |||||
| (6) Risk-weighted Assets |
38,418.7 | 394.3 | 38,024.4 | ||||||
| (Reference) Basel I basis |
|||||||||
| Capital Adequacy Ratio |
11.99 | (1.00 | ) | 12.99 | |||||
| Tier 1 Capital Ratio |
7.44 | (0.22 | ) | 7.66 | |||||
| Mizuho Trust & Banking |
|||||||||
| BIS Standard |
|||||||||
| (1) Capital Adequacy Ratio |
14.70 | (0.99 | ) | 15.69 | |||||
| Tier 1 Capital Ratio |
8.58 | (0.38 | ) | 8.96 | |||||
| (2) Tier 1 Capital |
352.5 | (7.2 | ) | 359.8 | |||||
| (3) Tier 2 Capital |
252.8 | (18.7 | ) | 271.6 | |||||
| (4) Deductions for Total Risk-based Capital |
1.4 | (0.0 | ) | 1.4 | |||||
| (5) Total Risk-based Capital (2)+(3)-(4) |
604.0 | (26.0 | ) | 630.0 | |||||
| (6) Risk-weighted Assets |
4,107.0 | 91.8 | 4,015.2 | ||||||
| (Reference) Basel I basis |
|||||||||
| Capital Adequacy Ratio |
13.60 | (0.84 | ) | 14.44 | |||||
| Tier 1 Capital Ratio |
7.74 | (0.30 | ) | 8.04 | |||||
| (Reference) |
|||||||||
| Mizuho Bank |
|||||||||
| BIS Standard |
|||||||||
| (1) Capital Adequacy Ratio |
11.99 | 0.07 | 11.92 | ||||||
| Tier 1 Capital Ratio |
7.20 | 0.35 | 6.85 | ||||||
| (2) Tier 1 Capital |
2,122.1 | 54.4 | 2,067.7 | ||||||
| (3) Tier 2 Capital |
1,461.9 | (108.8 | ) | 1,570.7 | |||||
| (4) Deductions for Total Risk-based Capital |
48.3 | 7.7 | 40.5 | ||||||
| (5) Total Risk-based Capital (2)+(3)-(4) |
3,535.7 | (62.1 | ) | 3,597.9 | |||||
| (6) Risk-weighted Assets |
29,465.2 | (696.1 | ) | 30,161.4 | |||||
| (Reference) Basel I basis |
|||||||||
| Capital Adequacy Ratio |
11.05 | 0.02 | 11.03 | ||||||
| Tier 1 Capital Ratio |
6.16 | 0.22 | 5.94 | ||||||
3-20
Mizuho Financial Group, Inc.
II. REVIEW OF CREDITS
1. Status of Non-Accrual, Past Due & Restructured Loans
n The figures below are presented net of partial direct write-offs.
n Treatment of accrued interest is based on the results of the self-assessment of assets.
(All loans to obligors classified in the self-assessment of assets as Bankrupt Obligors, Substantially Bankrupt Obligors, and Intensive Control Obligors are categorized as non-accrual loans.)
Consolidated
| (Millions of yen, %) | ||||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| % | Change from March 31, 2007 |
% | Change from September 30, 2006 |
% | % | % | ||||||||||||||||||
| Loans to Bankrupt Obligors |
31,726 | 0.04 | 888 | 0.00 | (17,194 | ) | (0.02 | ) | 30,838 | 0.04 | 48,921 | 0.07 | ||||||||||||
| Non-Accrual Delinquent Loans |
636,547 | 0.96 | 3,439 | 0.00 | 261,440 | 0.38 | 633,107 | 0.95 | 375,106 | 0.57 | ||||||||||||||
| Loans Past Due for 3 Months or More |
6,776 | 0.01 | (3,682 | ) | (0.00 | ) | (4,695 | ) | (0.00 | ) | 10,458 | 0.01 | 11,471 | 0.01 | ||||||||||
| Restructured Loans |
514,158 | 0.77 | (3,828 | ) | (0.00 | ) | (1,097 | ) | (0.01 | ) | 517,986 | 0.78 | 515,255 | 0.79 | ||||||||||
| Total |
1,189,208 | 1.80 | (3,183 | ) | (0.00 | ) | 238,453 | 0.33 | 1,192,392 | 1.80 | 950,755 | 1.46 | ||||||||||||
| Total Loans |
66,056,468 | 100.00 | 92,167 | 993,739 | 65,964,301 | 100.00 | 65,062,729 | 100.00 | ||||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
498,834 | (19,483 | ) | (121,442 | ) | 518,317 | 620,276 | |||||||||||||||||
Trust Account
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| % | Change from March 31, 2007 |
% | Change from September 30, 2006 |
% | % | % | ||||||||||||||||||
| Loans to Bankrupt Obligors |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Non-Accrual Delinquent Loans |
7,314 | 15.87 | (394 | ) | 1.29 | 494 | 5.53 | 7,708 | 14.58 | 6,819 | 10.34 | |||||||||||||
| Loans Past Due for 3 Months or More |
— | — | (121 | ) | (0.22 | ) | (123 | ) | (0.18 | ) | 121 | 0.22 | 123 | 0.18 | ||||||||||
| Restructured Loans |
— | — | — | — | (35 | ) | (0.05 | ) | — | — | 35 | 0.05 | ||||||||||||
| Total |
7,314 | 15.87 | (515 | ) | 1.06 | 335 | 5.28 | 7,829 | 14.80 | 6,978 | 10.59 | |||||||||||||
| Total Loans |
46,061 | 100.00 | (6,808 | ) | (19,832 | ) | 52,869 | 100.00 | 65,894 | 100.00 | ||||||||||||||
Consolidated + Trust Account
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| % | Change from March 31, 2007 |
% | Change from September 30, 2006 |
% | % | % | ||||||||||||||||||
| Loans to Bankrupt Obligors |
31,726 | 0.04 | 888 | 0.00 | (17,194 | ) | (0.02 | ) | 30,838 | 0.04 | 48,921 | 0.07 | ||||||||||||
| Non-Accrual Delinquent Loans |
643,861 | 0.97 | 3,044 | 0.00 | 261,935 | 0.38 | 640,816 | 0.97 | 381,925 | 0.58 | ||||||||||||||
| Loans Past Due for 3 Months or More |
6,776 | 0.01 | (3,803 | ) | (0.00 | ) | (4,818 | ) | (0.00 | ) | 10,580 | 0.01 | 11,595 | 0.01 | ||||||||||
| Restructured Loans |
514,158 | 0.77 | (3,828 | ) | (0.00 | ) | (1,133 | ) | (0.01 | ) | 517,986 | 0.78 | 515,291 | 0.79 | ||||||||||
| Total |
1,196,523 | 1.81 | (3,698 | ) | (0.00 | ) | 238,789 | 0.33 | 1,200,222 | 1.81 | 957,734 | 1.47 | ||||||||||||
| Total Loans |
66,102,530 | 100.00 | 85,359 | 973,906 | 66,017,171 | 100.00 | 65,128,624 | 100.00 | ||||||||||||||||
| * | Trust account denotes trust accounts with contracts indemnifying the principal amounts. |
3-21
Mizuho Financial Group, Inc.
Non-Consolidated
Aggregated Figures of the 3 Banks
(Banking Account + Trust Account)
| (Millions of yen, %) | ||||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| % | Change from 2007 |
% | Change from September 30, 2006 |
% | % | % | ||||||||||||||||||
| Loans to Bankrupt Obligors |
28,526 | 0.04 | 928 | 0.00 | (16,965 | ) | (0.02 | ) | 27,597 | 0.04 | 45,491 | 0.06 | ||||||||||||
| Non-Accrual Delinquent Loans |
661,155 | 0.99 | 33,904 | 0.06 | 296,547 | 0.44 | 627,251 | 0.93 | 364,608 | 0.55 | ||||||||||||||
| Loans Past Due for 3 Months or More |
6,776 | 0.01 | (3,803 | ) | (0.00 | ) | (4,818 | ) | (0.00 | ) | 10,580 | 0.01 | 11,595 | 0.01 | ||||||||||
| Restructured Loans |
501,844 | 0.75 | (13,428 | ) | (0.01 | ) | (12,026 | ) | (0.02 | ) | 515,273 | 0.77 | 513,870 | 0.77 | ||||||||||
| Total |
1,198,302 | 1.81 | 17,600 | 0.04 | 262,737 | 0.39 | 1,180,702 | 1.76 | 935,565 | 1.41 | ||||||||||||||
| Total Loans |
66,164,338 | 100.00 | (714,651 | ) | 173,110 | 66,878,989 | 100.00 | 65,991,228 | 100.00 | |||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
464,186 | (21,442 | ) | (91,039 | ) | 485,628 | 555,225 | |||||||||||||||||
| Mizuho Bank | ||||||||||||||||||||||||
| Loans to Bankrupt Obligors |
24,005 | 0.07 | 2,484 | 0.00 | (14,942 | ) | (0.04 | ) | 21,520 | 0.06 | 38,947 | 0.11 | ||||||||||||
| Non-Accrual Delinquent Loans |
426,234 | 1.27 | 124,059 | 0.38 | 151,306 | 0.46 | 302,174 | 0.88 | 274,928 | 0.80 | ||||||||||||||
| Loans Past Due for 3 Months or More |
5,848 | 0.01 | (4,082 | ) | (0.01 | ) | (4,442 | ) | (0.01 | ) | 9,930 | 0.02 | 10,290 | 0.03 | ||||||||||
| Restructured Loans |
226,614 | 0.67 | (7,763 | ) | (0.01 | ) | 23,658 | 0.08 | 234,378 | 0.68 | 202,956 | 0.59 | ||||||||||||
| Total |
682,702 | 2.03 | 114,698 | 0.36 | 155,580 | 0.49 | 568,004 | 1.66 | 527,122 | 1.54 | ||||||||||||||
| Total Loans |
33,519,576 | 100.00 | (545,483 | ) | (660,107 | ) | 34,065,059 | 100.00 | 34,179,684 | 100.00 | ||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
169,821 | 10,388 | (63,138 | ) | 159,432 | 232,959 | ||||||||||||||||||
| Mizuho Corporate Bank | ||||||||||||||||||||||||
| Loans to Bankrupt Obligors |
3,120 | 0.01 | (520 | ) | (0.00 | ) | (784 | ) | (0.00 | ) | 3,640 | 0.01 | 3,904 | 0.01 | ||||||||||
| Non-Accrual Delinquent Loans |
218,776 | 0.75 | (55,259 | ) | (0.20 | ) | 145,054 | 0.48 | 274,035 | 0.95 | 73,721 | 0.26 | ||||||||||||
| Loans Past Due for 3 Months or More |
— | — | (59 | ) | (0.00 | ) | — | — | 59 | 0.00 | — | — | ||||||||||||
| Restructured Loans |
234,725 | 0.80 | 15,266 | 0.04 | (10,562 | ) | (0.06 | ) | 219,458 | 0.76 | 245,288 | 0.87 | ||||||||||||
| Total |
456,622 | 1.56 | (40,573 | ) | (0.16 | ) | 133,707 | 0.42 | 497,195 | 1.73 | 322,914 | 1.14 | ||||||||||||
| Total Loans |
29,095,862 | 100.00 | 361,005 | 996,373 | 28,734,856 | 100.00 | 28,099,488 | 100.00 | ||||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
261,231 | (25,858 | ) | (15,347 | ) | 287,089 | 276,579 | |||||||||||||||||
| Mizuho Trust & Banking | ||||||||||||||||||||||||
| (Banking Account) | ||||||||||||||||||||||||
| Loans to Bankrupt Obligors |
1,400 | 0.03 | (1,035 | ) | (0.02 | ) | (1,239 | ) | (0.03 | ) | 2,435 | 0.06 | 2,639 | 0.07 | ||||||||||
| Non-Accrual Delinquent Loans |
8,830 | 0.25 | (34,502 | ) | (0.82 | ) | (308 | ) | 0.00 | 43,332 | 1.07 | 9,139 | 0.25 | |||||||||||
| Loans Past Due for 3 Months or More |
928 | 0.02 | 460 | 0.01 | (253 | ) | (0.00 | ) | 468 | 0.01 | 1,181 | 0.03 | ||||||||||||
| Restructured Loans |
40,503 | 1.15 | (20,932 | ) | (0.36 | ) | (25,086 | ) | (0.64 | ) | 61,436 | 1.52 | 65,590 | 1.79 | ||||||||||
| Total |
51,663 | 1.47 | (56,009 | ) | (1.19 | ) | (26,886 | ) | (0.67 | ) | 107,672 | 2.67 | 78,550 | 2.15 | ||||||||||
| Total Loans |
3,502,837 | 100.00 | (523,365 | ) | (143,323 | ) | 4,026,203 | 100.00 | 3,646,161 | 100.00 | ||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
33,133 | (5,972 | ) | (12,553 | ) | 39,106 | 45,687 | |||||||||||||||||
| (Trust Account) | ||||||||||||||||||||||||
| Loans to Bankrupt Obligors |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Non-Accrual Delinquent Loans |
7,314 | 15.87 | (394 | ) | 1.29 | 494 | 5.53 | 7,708 | 14.58 | 6,819 | 10.34 | |||||||||||||
| Loans Past Due for 3 Months or More |
— | — | (121 | ) | (0.22 | ) | (123 | ) | (0.18 | ) | 121 | 0.22 | 123 | 0.18 | ||||||||||
| Restructured Loans |
— | — | — | — | (35 | ) | (0.05 | ) | — | — | 35 | 0.05 | ||||||||||||
| Total |
7,314 | 15.87 | (515 | ) | 1.06 | 335 | 5.28 | 7,829 | 14.80 | 6,978 | 10.59 | |||||||||||||
| Total Loans |
46,061 | 100.00 | (6,808 | ) | (19,832 | ) | 52,869 | 100.00 | 65,894 | 100.00 | ||||||||||||||
| * | Trust account denotes trust accounts with contracts indemnifying the principal amounts. |
3-22
Mizuho Financial Group, Inc.
2. Status of Reserves for Possible Losses on Loans
Consolidated
| (Millions of yen) | ||||||||||||
| As of September 30, 2007 | As of 2007 |
As of September 30, 2006 | ||||||||||
| Change from 2007 |
Change from September 30, 2006 |
|||||||||||
| Reserves for Possible Losses on Loans |
782,653 | (73,660 | ) | 39,875 | 856,314 | 742,778 | ||||||
| General Reserve for Possible Losses on Loans |
447,196 | (53,666 | ) | (118,086 | ) | 500,863 | 565,282 | |||||
| Specific Reserve for Possible Losses on Loans |
335,304 | (17,012 | ) | 160,471 | 352,317 | 174,833 | ||||||
| Reserve for Possible Losses on Loans to Restructuring Countries |
152 | (2,980 | ) | (2,510 | ) | 3,133 | 2,662 | |||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||
| Amount of Partial Direct Write-offs |
532,965 | (3,950 | ) | (101,000 | ) | 536,916 | 633,965 | |||||
| Non-Consolidated | ||||||||||||
| Aggregated Figures of the 3 Banks | ||||||||||||
| (Millions of yen) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Reserves for Possible Losses on Loans |
676,945 | (64,187 | ) | 29,457 | 741,133 | 647,488 | ||||||
| General Reserve for Possible Losses on Loans |
395,009 | (51,345 | ) | (130,712 | ) | 446,354 | 525,721 | |||||
| Specific Reserve for Possible Losses on Loans |
281,783 | (9,861 | ) | 162,679 | 291,645 | 119,104 | ||||||
| Reserve for Possible Losses on Loans to Restructuring Countries |
152 | (2,980 | ) | (2,510 | ) | 3,133 | 2,662 | |||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||
| Amount of Partial Direct Write-offs |
497,041 | (6,094 | ) | (70,725 | ) | 503,136 | 567,766 | |||||
| Mizuho Bank | ||||||||||||
| Reserves for Possible Losses on Loans |
368,256 | 27,428 | 69,168 | 340,828 | 299,087 | |||||||
| General Reserve for Possible Losses on Loans |
238,080 | (10,044 | ) | 15,493 | 248,124 | 222,586 | ||||||
| Specific Reserve for Possible Losses on Loans |
130,176 | 37,524 | 53,724 | 92,652 | 76,451 | |||||||
| Reserve for Possible Losses on Loans to Restructuring Countries |
— | (51 | ) | (49 | ) | 51 | 49 | |||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||
| Amount of Partial Direct Write-offs |
189,028 | 15,337 | (51,925 | ) | 173,690 | 240,953 | ||||||
| Mizuho Corporate Bank | ||||||||||||
| Reserves for Possible Losses on Loans |
284,208 | (69,139 | ) | (31,984 | ) | 353,347 | 316,192 | |||||
| General Reserve for Possible Losses on Loans |
135,393 | (40,349 | ) | (138,494 | ) | 175,743 | 273,888 | |||||
| Specific Reserve for Possible Losses on Loans |
148,661 | (26,042 | ) | 108,693 | 174,703 | 39,968 | ||||||
| Reserve for Possible Losses on Loans to Restructuring Countries |
152 | (2,747 | ) | (2,184 | ) | 2,900 | 2,336 | |||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||
| Amount of Partial Direct Write-offs |
274,560 | (15,459 | ) | (4,726 | ) | 290,019 | 279,287 | |||||
| Mizuho Trust & Banking | ||||||||||||
| Reserves for Possible Losses on Loans |
24,481 | (22,476 | ) | (7,726 | ) | 46,957 | 32,207 | |||||
| General Reserve for Possible Losses on Loans |
21,535 | (951 | ) | (7,711 | ) | 22,486 | 29,246 | |||||
| Specific Reserve for Possible Losses on Loans |
2,946 | (21,343 | ) | 261 | 24,289 | 2,684 | ||||||
| Reserve for Possible Losses on Loans to Restructuring Countries |
0 | (181 | ) | (276 | ) | 181 | 276 | |||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||
| Amount of Partial Direct Write-offs |
33,452 | (5,972 | ) | (14,073 | ) | 39,425 | 47,526 | |||||
3-23
Mizuho Financial Group, Inc.
3. Reserve Ratios for Non-Accrual, Past Due & Restructured Loans
Consolidated
| (%) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Mizuho Financial Group |
65.81 | (6.00 | ) | (12.31 | ) | 71.81 | 78.12 | |||||
| * | Above figures are presented net of partial direct write-offs. |
Non-Consolidated
| (%) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from 2007 |
Change from September 30, |
|||||||||||
| Total |
56.83 | (6.35 | ) | (12.88 | ) | 63.18 | 69.72 | |||||
| Mizuho Bank |
53.94 | (6.06 | ) | (2.79 | ) | 60.00 | 56.73 | |||||
| Mizuho Corporate Bank |
62.24 | (8.82 | ) | (35.67 | ) | 71.06 | 97.91 | |||||
| Mizuho Trust & Banking (Banking Account) |
47.38 | 3.77 | 6.38 | 43.61 | 41.00 | |||||||
| * | Above figures are presented net of partial direct write-offs. |
3-24
Mizuho Financial Group, Inc.
4. Status of Disclosed Claims under the Financial Reconstruction Law (“FRL”)
Consolidated
| (Millions of yen) | ||||||||||||
| As of September 30, 2007 | As of |
As of | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
146,523 | 7,476 | 11,077 | 139,046 | 135,445 | |||||||
| Claims with Collection Risk |
600,894 | 4,571 | 254,529 | 596,323 | 346,365 | |||||||
| Claims for Special Attention |
521,065 | (7,555 | ) | (5,920 | ) | 528,620 | 526,985 | |||||
| Total |
1,268,482 | 4,491 | 259,686 | 1,263,991 | 1,008,796 | |||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||
| Amount of Partial Direct Write-offs |
520,810 | (15,497 | ) | (112,712 | ) | 536,308 | 633,523 | |||||
| Trust Account | ||||||||||||
| As of September 30, 2007 | As of |
As of | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
— | — | — | — | — | |||||||
| Claims with Collection Risk |
7,314 | (394 | ) | 494 | 7,708 | 6,819 | ||||||
| Claims for Special Attention |
— | (121 | ) | (159 | ) | 121 | 159 | |||||
| Total |
7,314 | (515 | ) | 335 | 7,829 | 6,978 | ||||||
| Consolidated + Trust Account | ||||||||||||
| As of September 30, 2007 | As of |
As of | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
146,523 | 7,476 | 11,077 | 139,046 | 135,445 | |||||||
| Claims with Collection Risk |
608,209 | 4,176 | 255,024 | 604,032 | 353,184 | |||||||
| Claims for Special Attention |
521,065 | (7,676 | ) | (6,079 | ) | 528,741 | 527,144 | |||||
| Total |
1,275,797 | 3,976 | 260,022 | 1,271,821 | 1,015,775 | |||||||
| * | Trust account denotes trust accounts with contracts indemnifying the principal amounts. |
3-25
Mizuho Financial Group, Inc.
Non-Consolidated
Aggregated Figures of the 3 Banks
(Banking Account + Trust Account)
| (Millions of yen, %) | ||||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| % | Change from March 31, 2007 |
% | Change from September 30, 2006 |
% | % | % | ||||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
161,058 | 0.21 | 38,767 | 0.05 | 46,236 | 0.06 | 122,290 | 0.16 | 114,822 | 0.15 | ||||||||||||||
| Claims with Collection Risk |
598,978 | 0.79 | 533 | 0.00 | 253,232 | 0.33 | 598,444 | 0.79 | 345,745 | 0.46 | ||||||||||||||
| Claims for Special Attention |
508,751 | 0.67 | (17,276 | ) | (0.01 | ) | (16,972 | ) | (0.02 | ) | 526,028 | 0.69 | 525,724 | 0.70 | ||||||||||
| Sub-total |
1,268,787 | 1.69 | 22,024 | 0.04 | 282,495 | 0.36 | 1,246,763 | 1.65 | 986,291 | 1.32 | ||||||||||||||
| Normal Claims |
73,690,636 | 98.30 | (622,377 | ) | (0.04 | ) | 251,789 | (0.36 | ) | 74,313,014 | 98.34 | 73,438,847 | 98.67 | |||||||||||
| Total |
74,959,424 | 100.00 | (600,353 | ) | 534,285 | 75,559,777 | 100.00 | 74,425,138 | 100.00 | |||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
485,422 | (17,409 | ) | (82,180 | ) | 502,831 | 567,603 | |||||||||||||||||
| Mizuho Bank | ||||||||||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
113,838 | 0.31 | 43,472 | 0.12 | 23,706 | 0.07 | 70,366 | 0.18 | 90,132 | 0.24 | ||||||||||||||
| Claims with Collection Risk |
363,389 | 0.99 | 87,907 | 0.25 | 130,283 | 0.37 | 275,482 | 0.73 | 233,106 | 0.62 | ||||||||||||||
| Claims for Special Attention |
232,462 | 0.63 | (11,845 | ) | (0.01 | ) | 19,216 | 0.06 | 244,308 | 0.65 | 213,246 | 0.57 | ||||||||||||
| Sub-total |
709,691 | 1.94 | 119,533 | 0.36 | 173,206 | 0.50 | 590,158 | 1.57 | 536,485 | 1.43 | ||||||||||||||
| Normal Claims |
35,845,458 | 98.05 | (992,949 | ) | (0.36 | ) | (990,849 | ) | (0.50 | ) | 36,838,407 | 98.42 | 36,836,307 | 98.56 | ||||||||||
| Total |
36,555,150 | 100.00 | (873,415 | ) | (817,642 | ) | 37,428,566 | 100.00 | 37,372,792 | 100.00 | ||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
189,022 | 15,471 | (51,930 | ) | 173,551 | 240,953 | ||||||||||||||||||
| Mizuho Corporate Bank | ||||||||||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
17,269 | 0.04 | (4,097 | ) | (0.01 | ) | (2,571 | ) | (0.01 | ) | 21,367 | 0.06 | 19,840 | 0.05 | ||||||||||
| Claims with Collection Risk |
219,395 | 0.63 | (52,376 | ) | (0.16 | ) | 142,820 | 0.40 | 271,772 | 0.80 | 76,575 | 0.23 | ||||||||||||
| Claims for Special Attention |
234,725 | 0.67 | 15,206 | 0.02 | (10,562 | ) | (0.06 | ) | 219,518 | 0.64 | 245,288 | 0.73 | ||||||||||||
| Sub-total |
471,390 | 1.35 | (41,267 | ) | (0.15 | ) | 129,686 | 0.32 | 512,658 | 1.51 | 341,703 | 1.02 | ||||||||||||
| Normal Claims |
34,268,706 | 98.64 | 855,959 | 0.15 | 1,394,230 | (0.32 | ) | 33,412,746 | 98.48 | 32,874,475 | 98.97 | |||||||||||||
| Total |
34,740,096 | 100.00 | 814,691 | 1,523,916 | 33,925,404 | 100.00 | 33,216,179 | 100.00 | ||||||||||||||||
| Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
263,084 | (26,907 | ) | (16,176 | ) | 289,992 | 279,261 | |||||||||||||||||
| Mizuho Trust & Banking | ||||||||||||||||||||||||
| (Banking Account) | ||||||||||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
29,950 | 0.82 | (606 | ) | 0.09 | 25,100 | 0.69 | 30,556 | 0.73 | 4,849 | 0.12 | |||||||||||||
| Claims with Collection Risk |
8,878 | 0.24 | (34,602 | ) | (0.80 | ) | (20,365 | ) | (0.53 | ) | 43,481 | 1.04 | 29,244 | 0.77 | ||||||||||
| Claims for Special Attention |
41,562 | 1.14 | (20,516 | ) | (0.34 | ) | (25,467 | ) | (0.62 | ) | 62,079 | 1.49 | 67,030 | 1.77 | ||||||||||
| Sub-total |
80,391 | 2.22 | (55,725 | ) | (1.05 | ) | (20,732 | ) | (0.46 | ) | 136,117 | 3.27 | 101,124 | 2.68 | ||||||||||
| Normal Claims |
3,537,724 | 97.77 | (479,095 | ) | 1.05 | (131,423 | ) | 0.46 | 4,016,819 | 96.72 | 3,669,147 | 97.31 | ||||||||||||
| Total |
3,618,115 | 100.00 | (534,821 | ) | (152,156 | ) | 4,152,937 | 100.00 | 3,770,271 | 100.00 | ||||||||||||||
|
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below. | ||||||||||||||||||||||||
| Amount of Partial Direct Write-offs |
33,314 | (5,973 | ) | (14,073 | ) | 39,287 | 47,388 | |||||||||||||||||
| (Trust Account) |
||||||||||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Claims with Collection Risk |
7,314 | 15.87 | (394 | ) | 1.29 | 494 | 5.53 | 7,708 | 14.58 | 6,819 | 10.34 | |||||||||||||
| Claims for Special Attention |
— | — | (121 | ) | (0.22 | ) | (159 | ) | (0.24 | ) | 121 | 0.22 | 159 | 0.24 | ||||||||||
| Sub-total |
7,314 | 15.87 | (515 | ) | 1.06 | 335 | 5.28 | 7,829 | 14.80 | 6,978 | 10.59 | |||||||||||||
| Normal Claims |
38,747 | 84.12 | (6,292 | ) | (1.06 | ) | (20,168 | ) | (5.28 | ) | 45,039 | 85.19 | 58,915 | 89.40 | ||||||||||
| Total |
46,061 | 100.00 | (6,808 | ) | (19,832 | ) | 52,869 | 100.00 | 65,894 | 100.00 | ||||||||||||||
| * | Trust account denotes trust accounts with contracts indemnifying the principal amounts. |
| * | Reserve for Indemnification of Impairment and Reserve for Possible Losses on Entrusted Loans ( ¥959 million, ¥1,300 million and ¥1,807 million for September 31, 2007, March 31, 2007 and September 30, 2006, respectively) are not included in the above figures for Trust Account. |
3-26
Mizuho Financial Group, Inc.
5. Coverage on Disclosed Claims under the FRL
Non-Consolidated
(1) Disclosed Claims under the FRL and Coverage Amount
Aggregated Figures of the 3 Banks (Banking Account)
| (Billions of yen) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
161.0 | 38.7 | 46.2 | 122.2 | 114.8 | |||||||
| Collateral, Guarantees, and equivalent |
141.3 | 39.1 | 35.1 | 102.2 | 106.2 | |||||||
| Reserve for Possible Losses |
19.6 | (0.3 | ) | 11.0 | 20.0 | 8.6 | ||||||
| Claims with Collection Risk |
591.6 | 0.9 | 252.7 | 590.7 | 338.9 | |||||||
| Collateral, Guarantees, and equivalent |
235.3 | 49.4 | 59.9 | 185.8 | 175.3 | |||||||
| Reserve for Possible Losses |
272.1 | (9.8 | ) | 150.3 | 281.9 | 121.7 | ||||||
| Claims for Special Attention |
508.7 | (17.1 | ) | (16.8 | ) | 525.9 | 525.5 | |||||
| Collateral, Guarantees, and equivalent |
108.7 | (75.4 | ) | (70.4 | ) | 184.2 | 179.2 | |||||
| Reserve for Possible Losses |
131.6 | 20.1 | 6.7 | 111.4 | 124.9 | |||||||
| Total |
1,261.4 | 22.5 | 282.1 | 1,238.9 | 979.3 | |||||||
| Collateral, Guarantees, and equivalent |
485.4 | 13.1 | 24.6 | 472.3 | 460.7 | |||||||
| Reserve for Possible Losses |
423.4 | 9.9 | 168.1 | 413.4 | 255.3 | |||||||
| Mizuho Bank | ||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
113.8 | 43.4 | 23.7 | 70.3 | 90.1 | |||||||
| Collateral, Guarantees, and equivalent |
109.8 | 42.5 | 23.4 | 67.3 | 86.4 | |||||||
| Reserve for Possible Losses |
3.9 | 0.9 | 0.2 | 3.0 | 3.7 | |||||||
| Claims with Collection Risk |
363.3 | 87.9 | 130.2 | 275.4 | 233.1 | |||||||
| Collateral, Guarantees, and equivalent |
193.6 | 43.2 | 59.5 | 150.3 | 134.0 | |||||||
| Reserve for Possible Losses |
126.0 | 36.6 | 53.4 | 89.4 | 72.5 | |||||||
| Claims for Special Attention |
232.4 | (11.8 | ) | 19.2 | 244.3 | 213.2 | ||||||
| Collateral, Guarantees, and equivalent |
71.8 | (9.2 | ) | 3.2 | 81.1 | 68.6 | ||||||
| Reserve for Possible Losses |
40.2 | (1.8 | ) | (0.2 | ) | 42.1 | 40.5 | |||||
| Total |
709.6 | 119.5 | 173.2 | 590.1 | 536.4 | |||||||
| Collateral, Guarantees, and equivalent |
375.3 | 76.5 | 86.1 | 298.7 | 289.1 | |||||||
| Reserve for Possible Losses |
170.3 | 35.7 | 53.5 | 134.5 | 116.8 | |||||||
| Mizuho Corporate Bank | ||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
17.2 | (4.0 | ) | (2.5 | ) | 21.3 | 19.8 | |||||
| Collateral, Guarantees, and equivalent |
13.0 | (3.0 | ) | (2.3 | ) | 16.0 | 15.3 | |||||
| Reserve for Possible Losses |
4.1 | (1.0 | ) | (0.2 | ) | 5.2 | 4.4 | |||||
| Claims with Collection Risk |
219.3 | (52.3 | ) | 142.8 | 271.7 | 76.5 | ||||||
| Collateral, Guarantees, and equivalent |
36.6 | 9.8 | 10.1 | 26.7 | 26.5 | |||||||
| Reserve for Possible Losses |
143.4 | (25.1 | ) | 107.9 | 168.6 | 35.5 | ||||||
| Claims for Special Attention |
234.7 | 15.2 | (10.5 | ) | 219.5 | 245.2 | ||||||
| Collateral, Guarantees, and equivalent |
28.2 | (41.9 | ) | (47.4 | ) | 70.1 | 75.6 | |||||
| Reserve for Possible Losses |
78.6 | 20.7 | 8.8 | 57.9 | 69.8 | |||||||
| Total |
471.3 | (41.2 | ) | 129.6 | 512.6 | 341.7 | ||||||
| Collateral, Guarantees, and equivalent |
78.0 | (35.0 | ) | (39.5 | ) | 113.0 | 117.5 | |||||
| Reserve for Possible Losses |
226.3 | (5.4 | ) | 116.5 | 231.8 | 109.7 | ||||||
| Mizuho Trust & Banking | ||||||||||||
| (Banking Account) | ||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
29.9 | (0.6 | ) | 25.1 | 30.5 | 4.8 | ||||||
| Collateral, Guarantees, and equivalent |
18.4 | (0.3 | ) | 14.0 | 18.7 | 4.4 | ||||||
| Reserve for Possible Losses |
11.5 | (0.2 | ) | 11.0 | 11.7 | 0.4 | ||||||
| Claims with Collection Risk |
8.8 | (34.6 | ) | (20.3 | ) | 43.4 | 29.2 | |||||
| Collateral, Guarantees, and equivalent |
5.0 | (3.7 | ) | (9.6 | ) | 8.7 | 14.7 | |||||
| Reserve for Possible Losses |
2.5 | (21.3 | ) | (11.1 | ) | 23.8 | 13.6 | |||||
| Claims for Special Attention |
41.5 | (20.5 | ) | (25.4 | ) | 62.0 | 67.0 | |||||
| Collateral, Guarantees, and equivalent |
8.6 | (24.2 | ) | (26.2 | ) | 32.9 | 34.9 | |||||
| Reserve for Possible Losses |
12.6 | 1.2 | (1.9 | ) | 11.4 | 14.6 | ||||||
| Total |
80.3 | (55.7 | ) | (20.7 | ) | 136.1 | 101.1 | |||||
| Collateral, Guarantees, and equivalent |
32.1 | (28.3 | ) | (21.8 | ) | 60.5 | 54.0 | |||||
| Reserve for Possible Losses |
26.7 | (20.3 | ) | (1.9 | ) | 47.0 | 28.7 | |||||
| (Reference) Trust Account
|
||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
— | — | — | — | — | |||||||
| Collateral, Guarantees, and equivalent |
— | — | — | — | — | |||||||
| Claims with Collection Risk |
7.3 | (0.3 | ) | 0.4 | 7.7 | 6.8 | ||||||
| Collateral, Guarantees, and equivalent |
7.3 | (0.3 | ) | 0.4 | 7.7 | 6.8 | ||||||
| Claims for Special Attention |
— | (0.1 | ) | (0.1 | ) | 0.1 | 0.1 | |||||
| Collateral, Guarantees, and equivalent |
— | (0.1 | ) | (0.1 | ) | 0.1 | 0.1 | |||||
| Total |
7.3 | (0.5 | ) | 0.3 | 7.8 | 6.9 | ||||||
| Collateral, Guarantees, and equivalent |
7.3 | (0.5 | ) | 0.3 | 7.8 | 6.9 | ||||||
| * | Trust account denotes trust accounts with contracts indemnifying the principal amounts. |
3-27
Mizuho Financial Group, Inc.
(2) Coverage Ratio
Aggregated Figures of the 3 Banks (Banking Account)
| (Billions of yen) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Coverage Amount |
908.9 | 23.1 | 192.8 | 885.8 | 716.1 | |||||||
| Reserves for Possible Losses on Loans |
423.4 | 9.9 | 168.1 | 413.4 | 255.3 | |||||||
| Collateral, Guarantees, and equivalent |
485.4 | 13.1 | 24.6 | 472.3 | 460.7 | |||||||
| (%) | ||||||||||||
| Coverage Ratio |
72.0 | 0.5 | (1.0 | ) | 71.4 | 73.1 | ||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
85.7 | 6.5 | (1.8 | ) | 79.1 | 87.6 | ||||||
| Claims for Special Attention |
47.2 | (8.9 | ) | (10.6 | ) | 56.2 | 57.8 | |||||
| Claims against Special Attention Obligors |
49.2 | (8.6 | ) | (10.5 | ) | 57.8 | 59.8 | |||||
| Reserve Ratio against Non-collateralized Claims | (%) | |||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
76.3 | 6.7 | 1.9 | 69.6 | 74.4 | |||||||
| Claims for Special Attention |
32.9 | 0.2 | (3.1 | ) | 32.6 | 36.0 | ||||||
| Claims against Special Attention Obligors |
32.0 | (0.2 | ) | (4.0 | ) | 32.2 | 36.0 | |||||
| (Reference) Reserve Ratio | (%) | |||||||||||
| Claims against Special Attention Obligors |
23.94 | 3.89 | 1.25 | 20.05 | 22.69 | |||||||
| Claims against Watch Obligors excluding Special Attention Obligors |
5.26 | (2.13 | ) | (5.27 | ) | 7.39 | 10.54 | |||||
| Claims against Normal Obligors |
0.10 | (0.01 | ) | (0.01 | ) | 0.11 | 0.11 | |||||
| Mizuho Bank | (Billions of yen) | |||||||||||
| Coverage Amount |
545.6 | 112.3 | 139.7 | 433.3 | 405.9 | |||||||
| Reserves for Possible Losses on Loans |
170.3 | 35.7 | 53.5 | 134.5 | 116.8 | |||||||
| Collateral, Guarantees, and equivalent |
375.3 | 76.5 | 86.1 | 298.7 | 289.1 | |||||||
| (%) | ||||||||||||
| Coverage Ratio |
76.8 | 3.4 | 1.2 | 73.4 | 75.6 | |||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
87.9 | 0.9 | (0.6 | ) | 87.0 | 88.6 | ||||||
| Claims for Special Attention |
48.2 | (2.2 | ) | (2.9 | ) | 50.4 | 51.1 | |||||
| Claims against Special Attention Obligors |
49.4 | (1.5 | ) | (3.3 | ) | 51.0 | 52.7 | |||||
| Reserve Ratio against Non-collateralized Claims | (%) | |||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
74.2 | 2.8 | 0.9 | 71.4 | 73.2 | |||||||
| Claims for Special Attention |
25.0 | (0.7 | ) | (2.9 | ) | 25.8 | 28.0 | |||||
| Claims against Special Attention Obligors |
25.5 | (0.5 | ) | (3.1 | ) | 26.0 | 28.6 | |||||
| (Reference) Reserve Ratio | (%) | |||||||||||
| Claims against Special Attention Obligors |
17.34 | 0.07 | (1.65 | ) | 17.26 | 18.99 | ||||||
| Claims against Watch Obligors excluding Special Attention Obligors |
5.63 | (0.57 | ) | (1.39 | ) | 6.21 | 7.03 | |||||
| Claims against Normal Obligors |
0.15 | (0.01 | ) | 0.00 | 0.17 | 0.15 | ||||||
| Mizuho Corporate Bank | (Billions of yen) | |||||||||||
| Coverage Amount |
304.3 | (40.5 | ) | 77.0 | 344.8 | 227.3 | ||||||
| Reserves for Possible Losses on Loans |
226.3 | (5.4 | ) | 116.5 | 231.8 | 109.7 | ||||||
| Collateral, Guarantees, and equivalent |
78.0 | (35.0 | ) | (39.5 | ) | 113.0 | 117.5 | |||||
| (%) | ||||||||||||
| Coverage Ratio |
64.5 | (2.7 | ) | (1.9 | ) | 67.2 | 66.5 | |||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
82.1 | 10.2 | 1.1 | 71.9 | 81.0 | |||||||
| Claims for Special Attention |
45.5 | (12.7 | ) | (13.7 | ) | 58.3 | 59.3 | |||||
| Claims against Special Attention Obligors |
48.4 | (13.5 | ) | (13.6 | ) | 61.9 | 62.1 | |||||
| Reserve Ratio against Non-collateralized Claims | (%) | |||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
78.5 | 9.6 | 7.5 | 68.8 | 70.9 | |||||||
| Claims for Special Attention |
38.1 | (0.6 | ) | (3.0 | ) | 38.7 | 41.1 | |||||
| Claims against Special Attention Obligors |
38.0 | (0.1 | ) | (2.5 | ) | 38.1 | 40.6 | |||||
| (Reference) Reserve Ratio | (%) | |||||||||||
| Claims against Special Attention Obligors |
31.69 | 8.20 | 5.74 | 23.49 | 25.95 | |||||||
| Claims against Watch Obligors excluding Special Attention Obligors |
4.39 | (6.80 | ) | (13.54 | ) | 11.20 | 17.93 | |||||
| Claims against Normal Obligors |
0.05 | (0.00 | ) | (0.00 | ) | 0.05 | 0.06 | |||||
3-28
Mizuho Financial Group, Inc.
Mizuho Trust & Banking (Banking Account)
| (Billions of yen) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, |
Change from September 30, 2006 |
|||||||||||
| Coverage Amount |
58.8 | (48.6 | ) | (23.8 | ) | 107.5 | 82.7 | |||||
| Reserves for Possible Losses on Loans |
26.7 | (20.3 | ) | (1.9 | ) | 47.0 | 28.7 | |||||
| Collateral, Guarantees, and equivalent |
32.1 | (28.3 | ) | (21.8 | ) | 60.5 | 54.0 | |||||
| (%) | ||||||||||||
| Coverage Ratio |
73.2 | (5.7 | ) | (8.5 | ) | 79.0 | 81.8 | |||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
85.4 | 10.3 | (11.6 | ) | 75.1 | 97.1 | ||||||
| Claims for Special Attention |
51.3 | (20.0 | ) | (22.4 | ) | 71.4 | 73.8 | |||||
| Claims against Special Attention Obligors |
52.2 | (20.4 | ) | (22.7 | ) | 72.6 | 74.9 | |||||
| Reserve Ratio against Non-collateralized Claims | (%) | |||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
100.0 | — | — | 100.0 | 100.0 | |||||||
| Claims with Collection Risk |
66.4 | (2.3 | ) | (27.8 | ) | 68.8 | 94.2 | |||||
| Claims for Special Attention |
38.5 | (0.6 | ) | (6.9 | ) | 39.1 | 45.4 | |||||
| Claims against Special Attention Obligors |
38.7 | (1.5 | ) | (7.8 | ) | 40.2 | 46.5 | |||||
| (Reference) Reserve Ratio | (%) | |||||||||||
| Claims against Special Attention Obligors |
30.20 | 11.76 | 8.38 | 18.43 | 21.82 | |||||||
| Claims against Watch Obligors excluding Special Attention Obligors |
4.16 | (0.43 | ) | 0.95 | 4.60 | 3.21 | ||||||
| Claims against Normal Obligors |
0.08 | (0.00 | ) | (0.13 | ) | 0.09 | 0.21 | |||||
3-29
Mizuho Financial Group, Inc.
6. Overview of Non-Performing Loans (“NPLs”)
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account)
| Note 1 | Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention. |
| Note 2 | The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRL represents the amount of claims other than loans included in Disclosed Claims under the FRL. |
3-30
Mizuho Financial Group, Inc.
7. Results of Removal of NPLs from the Balance Sheet
Non-Consolidated
1. Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors and Claims with Collection Risk
(under the FRL)
Aggregated Figures of the 3 Banks (including past figures for their former revitalization subsidiaries) (Banking Account + Trust Account)
| (Billions of yen) | |||||||||||||||||||||||
| Fiscal 2004 | Fiscal 2005 | Fiscal 2006 | Fiscal 2007 | ||||||||||||||||||||
| As of September 30, 2004 |
As of 2005 |
As of September 30, 2005 |
As of March 31, 2006 |
As of September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2007 | |||||||||||||||||
| Mizuho Bank |
Mizuho Corporate Bank |
Mizuho Trust & Banking |
Aggregated Figures of the 3 Banks |
Change from March 31, 2007 |
|||||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
2,282.5 | 169.3 | 111.1 | 60.6 | 47.5 | 42.1 | 26.2 | 12.6 | 1.5 | 40.3 | (1.7 | ) | |||||||||||
| Claims with Collection Risk |
6,589.4 | 171.7 | 104.4 | 78.1 | 63.7 | 54.7 | 26.8 | 18.0 | 0.7 | 45.6 | (9.0 | ) | |||||||||||
| Amount Categorized as above up to First Half of Fiscal 2004 |
8,871.9 | 341.1 | 215.5 | 138.8 | 111.3 | 96.9 | 53.0 | 30.6 | 2.3 | 86.0 | (10.8 | ) | |||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
973.5 | 144.6 | 92.3 | 43.8 | 35.8 | 31.7 | 17.4 | 6.8 | 1.5 | 25.8 | (5.9 | ) | |||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
40.1 | 22.8 | 38.2 | 33.0 | 8.3 | 3.4 | 2.1 | 0.0 | 5.6 | (2.6 | ) | ||||||||||||
| Claims with Collection Risk |
634.0 | 476.8 | 76.6 | 60.2 | 37.4 | 28.9 | 0.8 | — | 29.7 | (7.6 | ) | ||||||||||||
| Amount Newly Categorized as above during the Second Half of Fiscal 2004 |
674.1 | 499.7 | 114.8 | 93.3 | 45.8 | 32.4 | 2.9 | 0.0 | 35.4 | (10.3 | ) | ||||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
24.1 | 22.6 | 13.9 | 31.2 | 6.9 | 3.4 | 2.1 | 0.0 | 5.6 | (1.2 | ) | ||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
27.5 | 15.8 | 7.8 | 5.9 | 4.4 | 1.2 | 0.0 | 5.6 | (0.2 | ) | |||||||||||||
| Claims with Collection Risk |
121.4 | 65.8 | 42.7 | 22.2 | 11.0 | 2.7 | 1.0 | 14.7 | (7.4 | ) | |||||||||||||
| Amount Newly Categorized as above during the First Half of Fiscal 2005 |
148.9 | 81.6 | 50.6 | 28.1 | 15.5 | 3.9 | 1.0 | 20.4 | (7.6 | ) | |||||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
23.0 | 12.1 | 7.0 | 5.4 | 3.9 | 1.2 | 0.0 | 5.1 | (0.2 | ) | |||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
16.2 | 9.7 | 8.3 | 3.7 | 1.1 | 0.0 | 4.9 | (3.3 | ) | ||||||||||||||
| Claims with Collection Risk |
134.5 | 72.7 | 48.1 | 30.9 | 6.0 | 1.1 | 38.0 | (10.0 | ) | ||||||||||||||
| Amount Newly Categorized as above during the Second Half of Fiscal 2005 |
150.8 | 82.4 | 56.4 | 34.6 | 7.1 | 1.1 | 43.0 | (13.4 | ) | ||||||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
14.4 | 8.5 | 5.4 | 3.7 | — | 0.0 | 3.7 | (1.6 | ) | ||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
16.6 | 38.3 | 6.2 | — | 27.7 | 34.0 | (4.3 | ) | |||||||||||||||
| Claims with Collection Risk |
106.1 | 49.6 | 22.2 | 2.2 | 6.4 | 30.9 | (18.7 | ) | |||||||||||||||
| Amount Newly Categorized as above during the First Half of Fiscal 2006 |
122.8 | 88.0 | 28.4 | 2.2 | 34.2 | 64.9 | (23.0 | ) | |||||||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
12.2 | 10.2 | 5.9 | — | 0.1 | 6.0 | (4.1 | ) | |||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
19.1 | 12.1 | — | 0.3 | 12.4 | (6.7 | ) | ||||||||||||||||
| Claims with Collection Risk |
386.1 | 58.5 | 2.9 | 3.8 | 65.3 | (320.7 | ) | ||||||||||||||||
| Amount Newly Categorized as above during the Second Half of Fiscal 2006 |
405.3 | 70.7 | 2.9 | 4.1 | 77.8 | (327.5 | ) | ||||||||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
17.9 | 12.1 | — | 0.3 | 12.4 | (5.4 | ) | ||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
57.5 | 0.1 | 0.2 | 57.9 | 57.9 | ||||||||||||||||||
| Claims with Collection Risk |
184.7 | 186.6 | 2.9 | 374.3 | 374.3 | ||||||||||||||||||
| Amount Newly Categorized as above during the First Half of Fiscal 2007 |
242.3 | 186.7 | 3.1 | 432.2 | 432.2 | ||||||||||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
26.2 | — | 0.2 | 26.4 | 26.4 | ||||||||||||||||||
| Claims against Bankrupt and Substantially Bankrupt Obligors |
209.5 | 161.4 | 130.8 | 114.8 | 122.2 | 113.8 | 17.2 | 29.9 | 161.0 | 38.7 | |||||||||||||
| Claims with Collection Risk |
805.8 | 702.7 | 355.2 | 345.7 | 598.4 | 363.3 | 219.3 | 16.1 | 598.9 | 0.5 | |||||||||||||
| Total |
1,015.3 | 864.2 | 486.1 | 460.5 | 720.7 | 477.2 | 236.6 | 46.1 | 760.0 | 39.2 | |||||||||||||
| of which the amount which was in the process of being removed from the balance sheet |
168.7 | 138.0 | 84.4 | 94.9 | 77.7 | 72.9 | 10.1 | 2.3 | 85.4 | 7.7 | |||||||||||||
| * | Trust account denotes trust accounts with contracts indemnifying the principal amounts. |
| * | Bold denotes newly categorized amounts. |
2. Progress in Removal of NPLs from the Balance Sheet (Accumulated Removal Amount and Removal Ratio)
Aggregated Figures of the 3 Banks (including past figures for their former revitalization subsidiaries) (Banking Account + Trust Account)
| (Billions of yen)
|
(%)
|
(%)
| ||||||||
| Amount Newly Categorized |
Balance as of 2007 |
Accumulated Removal Amount |
Accumulated Removal Ratio |
Modified Accumulated Removal Ratio* | ||||||
| Up to First Half of Fiscal 2004 |
8,871.9 | 86.0 | 8,785.8 | 99.0 | 99.3 | |||||
| Second Half of Fiscal 2004 |
674.1 | 35.4 | 638.7 | 94.7 | 95.5 | |||||
| First Half of Fiscal 2005 |
148.9 | 20.4 | 128.4 | 86.2 | 89.7 | |||||
| Second Half of Fiscal 2005 |
150.8 | 43.0 | 107.8 | 71.4 | 73.9 | |||||
| First Half of Fiscal 2006 |
122.8 | 64.9 | 57.8 | 47.0 | 52.0 | |||||
| Second Half of Fiscal 2006 |
405.3 | 77.8 | 327.5 | 80.8 | 83.8 | |||||
| First Half of Fiscal 2007 |
432.2 | 432.2 | ||||||||
| Total |
10,806.2 | 760.0 | 10,046.2 | |||||||
| * | Modified accumulated removal ratios are based on the accumulated removal amount including the amount which was in the process of being removed from the balance sheet. |
3-31
Mizuho Financial Group, Inc.
3. Breakdown of Reasons for Removal of NPLs from the Balance Sheet in the First Half of Fiscal 2007
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
| (Billions of yen) |
|||||||||||||||||||||
| Newly Categorized | Amount Removed in the First Half of Fiscal 2007 |
||||||||||||||||||||
| Fiscal 2004 | Fiscal 2005 | Fiscal 2006 | |||||||||||||||||||
| Up to First Half |
Second Half | First Half | Second Half | First Half | Second Half | ||||||||||||||||
| Liquidation |
(28.3 | ) | (0.9 | ) | (0.0 | ) | (0.2 | ) | (0.4 | ) | (0.0 | ) | (30.0 | ) | |||||||
| Restructuring |
(6.0 | ) | (4.6 | ) | — | — | (0.3 | ) | (0.0 | ) | (11.0 | ) | |||||||||
| Improvement in Business Performance due to Restructuring |
(1.0 | ) | — | — | (0.0 | ) | (0.0 | ) | (0.0 | ) | (1.0 | ) | |||||||||
| Loan Sales |
(8.1 | ) | (4.8 | ) | (2.6 | ) | (7.6 | ) | (2.5 | ) | (0.4 | ) | (26.2 | ) | |||||||
| Direct Write-off |
44.5 | 7.4 | 2.4 | 4.6 | (1.7 | ) | (10.8 | ) | 46.5 | ||||||||||||
| Other |
(11.9 | ) | (7.3 | ) | (7.5 | ) | (10.1 | ) | (17.9 | ) | (316.0 | ) | (371.0 | ) | |||||||
| Debt recovery |
(8.9 | ) | (5.9 | ) | (5.9 | ) | (8.3 | ) | (9.6 | ) | (29.1 | ) | (67.9 | ) | |||||||
| Improvement in Business Performance |
(2.9 | ) | (1.3 | ) | (1.6 | ) | (1.8 | ) | (8.2 | ) | (286.9 | ) | (303.0 | ) | |||||||
| Total |
(10.8 | ) | (10.3 | ) | (7.6 | ) | (13.4 | ) | (23.0 | ) | (327.5 | ) | (392.9 | ) | |||||||
| Mizuho Bank | |||||||||||||||||||||
| Liquidation |
(7.7 | ) | (0.9 | ) | (0.0 | ) | (0.2 | ) | (0.4 | ) | (0.0 | ) | (9.5 | ) | |||||||
| Restructuring |
— | (4.6 | ) | — | — | (0.3 | ) | (0.0 | ) | (5.0 | ) | ||||||||||
| Improvement in Business Performance due to Restructuring |
— | — | — | — | — | — | — | ||||||||||||||
| Loan Sales |
(8.1 | ) | (4.8 | ) | (2.6 | ) | (7.6 | ) | (0.7 | ) | (0.4 | ) | (24.3 | ) | |||||||
| Direct Write-off |
13.0 | 7.5 | 2.2 | 4.8 | (2.2 | ) | (10.8 | ) | 14.6 | ||||||||||||
| Other |
(4.6 | ) | (6.8 | ) | (3.5 | ) | (9.4 | ) | (15.9 | ) | (46.2 | ) | (86.6 | ) | |||||||
| Debt recovery |
(2.3 | ) | (5.4 | ) | (1.8 | ) | (7.8 | ) | (8.7 | ) | (26.0 | ) | (52.3 | ) | |||||||
| Improvement in Business Performance |
(2.2 | ) | (1.3 | ) | (1.6 | ) | (1.6 | ) | (7.2 | ) | (20.1 | ) | (34.2 | ) | |||||||
| Total |
(7.5 | ) | (9.7 | ) | (3.9 | ) | (12.4 | ) | (19.6 | ) | (57.6 | ) | (110.9 | ) | |||||||
| Mizuho Corporate Bank | |||||||||||||||||||||
| Liquidation |
(20.5 | ) | — | — | — | — | — | (20.5 | ) | ||||||||||||
| Restructuring |
(0.7 | ) | — | — | — | — | — | (0.7 | ) | ||||||||||||
| Improvement in Business Performance due to Restructuring |
(1.0 | ) | — | — | — | — | — | (1.0 | ) | ||||||||||||
| Loan Sales |
— | — | — | — | (1.6 | ) | — | (1.6 | ) | ||||||||||||
| Direct Write-off |
26.2 | (0.0 | ) | 0.2 | — | 0.4 | (0.0 | ) | 26.9 | ||||||||||||
| Other |
(7.1 | ) | (0.5 | ) | (3.9 | ) | (0.4 | ) | 0.0 | (234.1 | ) | (246.1 | ) | ||||||||
| Debt recovery |
(6.5 | ) | (0.4 | ) | (3.9 | ) | (0.4 | ) | 0.0 | (2.8 | ) | (14.1 | ) | ||||||||
| Improvement in Business Performance |
(0.6 | ) | (0.0 | ) | — | — | (0.0 | ) | (231.3 | ) | (232.0 | ) | |||||||||
| Total |
(3.1 | ) | (0.5 | ) | (3.6 | ) | (0.4 | ) | (1.1 | ) | (234.2 | ) | (243.2 | ) | |||||||
| Mizuho Trust & Banking (Banking Account + Trust Account) | |||||||||||||||||||||
| Liquidation |
— | — | — | — | — | — | — | ||||||||||||||
| Restructuring |
(5.2 | ) | — | — | — | — | — | (5.2 | ) | ||||||||||||
| Improvement in Business Performance due to Restructuring |
(0.0 | ) | — | — | (0.0 | ) | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||
| Loan Sales |
— | — | — | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||
| Direct Write-off |
5.2 | (0.0 | ) | — | (0.2 | ) | (0.0 | ) | — | 4.9 | |||||||||||
| Other |
(0.1 | ) | (0.0 | ) | (0.0 | ) | (0.2 | ) | (2.0 | ) | (35.6 | ) | (38.1 | ) | |||||||
| Debt recovery |
(0.0 | ) | (0.0 | ) | (0.0 | ) | (0.0 | ) | (1.0 | ) | (0.2 | ) | (1.5 | ) | |||||||
| Improvement in Business Performance |
(0.0 | ) | (0.0 | ) | (0.0 | ) | (0.2 | ) | (0.9 | ) | (35.4 | ) | (36.6 | ) | |||||||
| Total |
(0.1 | ) | (0.1 | ) | (0.0 | ) | (0.5 | ) | (2.2 | ) | (35.6 | ) | (38.7 | ) | |||||||
| (Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet
Aggregated Figures of the 3 Banks (including past figures for their former revitalization subsidiaries) (Banking Account + Trust Account) |
| ||||||||||||||||||||
| (Billions of yen) | |||||||||||||||||||||
| Amount Removed | Accumulated since Second Half of |
||||||||||||||||||||
| Up to Second Fiscal 2004* |
In First Half of Fiscal 2005 |
In Second Half of Fiscal 2005 |
In First Half of Fiscal 2006 |
In Second Halfof Fiscal 2006 |
In First Half of Fiscal 2007 |
||||||||||||||||
| Liquidation |
(1,300.1 | ) | (28.5 | ) | (40.7 | ) | (6.3 | ) | (6.9 | ) | (30.0 | ) | (1,412.7 | ) | |||||||
| Restructuring |
(1,600.0 | ) | (12.5 | ) | (55.8 | ) | (104.7 | ) | (55.5 | ) | (11.0 | ) | (1,839.9 | ) | |||||||
| Improvement in Business Performance due to Restructuring |
(175.2 | ) | (1.0 | ) | (3.1 | ) | (0.0 | ) | (1.0 | ) | (1.0 | ) | (181.6 | ) | |||||||
| Loan Sales |
(3,922.4 | ) | (153.2 | ) | (47.6 | ) | (34.4 | ) | (38.0 | ) | (26.2 | ) | (4,222.0 | ) | |||||||
| Direct Write-off |
2,792.5 | 99.2 | 45.8 | 155.4 | 81.0 | 46.5 | 3,220.6 | ||||||||||||||
| Other |
(4,325.4 | ) | (203.8 | ) | (427.3 | ) | (158.2 | ) | (124.5 | ) | (371.0 | ) | (5,610.4 | ) | |||||||
| Debt recovery |
(148.5 | ) | (217.0 | ) | (113.8 | ) | (67.7 | ) | (67.9 | ) | |||||||||||
| Improvement in Business Performance |
(55.2 | ) | (210.2 | ) | (44.3 | ) | (56.8 | ) | (303.0 | ) | |||||||||||
| Total |
(8,530.8 | ) | (300.0 | ) | (528.9 | ) | (148.4 | ) | (145.1 | ) | (392.9 | ) | (10,046.2 | ) | |||||||
| * | From the Second Half of Fiscal 2000 to the Second Half of Fiscal 2004. |
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Mizuho Financial Group, Inc.
8. Status of Loans by Industry
(1) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Industry
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
| (Billions of yen) | ||||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| Outstanding |
Non-Accrual, |
Change from March 31, 2007 |
Change from September 30, 2006 |
Outstanding |
Non-Accrual, |
Outstanding |
Non-Accrual, | |||||||||||||||||
| Outstanding Balance |
Non-Accrual, Past Due & Restructured Loans |
Outstanding Balance |
Non-Accrual, Past Due & Restructured Loans |
|||||||||||||||||||||
| Domestic Total (excluding Loans Booked Offshore) |
59,270.4 | 1,157.1 | (1,692.6 | ) | 16.8 | (354.1 | ) | 263.0 | 60,963.0 | 1,140.2 | 59,624.6 | 894.1 | ||||||||||||
| Manufacturing |
7,273.6 | 102.5 | 192.4 | 22.3 | 28.0 | 25.3 | 7,081.1 | 80.2 | 7,245.6 | 77.1 | ||||||||||||||
| Agriculture |
35.3 | 0.0 | (1.7 | ) | 0.0 | (3.2 | ) | (0.2 | ) | 37.1 | 0.0 | 38.5 | 0.3 | |||||||||||
| Forestry |
0.9 | — | (0.0 | ) | (0.0 | ) | (0.1 | ) | (0.0 | ) | 1.0 | 0.0 | 1.1 | 0.0 | ||||||||||
| Fishery |
2.3 | 0.1 | (0.0 | ) | (0.0 | ) | (0.7 | ) | 0.1 | 2.4 | 0.1 | 3.0 | 0.0 | |||||||||||
| Mining |
131.4 | 0.1 | (7.4 | ) | 0.1 | (1.5 | ) | 0.1 | 138.9 | 0.0 | 133.0 | — | ||||||||||||
| Construction |
1,348.6 | 45.7 | (18.2 | ) | (6.9 | ) | (42.6 | ) | 2.1 | 1,366.8 | 52.6 | 1,391.2 | 43.5 | |||||||||||
| Utilities |
662.8 | 0.3 | (72.4 | ) | 0.3 | (235.9 | ) | 0.2 | 735.2 | 0.0 | 898.7 | 0.1 | ||||||||||||
| Communication |
1,972.3 | 14.2 | (107.6 | ) | 8.2 | 1,149.7 | 7.9 | 2,079.9 | 5.9 | 822.6 | 6.2 | |||||||||||||
| Transportation |
2,598.1 | 136.4 | (130.6 | ) | (43.8 | ) | (261.7 | ) | (73.0 | ) | 2,728.8 | 180.3 | 2,859.9 | 209.4 | ||||||||||
| Wholesale & Retail |
5,694.5 | 211.6 | (158.6 | ) | 23.3 | (316.2 | ) | 42.4 | 5,853.2 | 188.2 | 6,010.8 | 169.1 | ||||||||||||
| Finance & Insurance |
6,397.9 | 216.5 | (356.3 | ) | (55.9 | ) | (547.5 | ) | 209.1 | 6,754.3 | 272.4 | 6,945.5 | 7.4 | |||||||||||
| Real Estate |
6,556.0 | 91.8 | (155.8 | ) | (22.0 | ) | (149.4 | ) | (33.0 | ) | 6,711.8 | 113.8 | 6,705.4 | 124.8 | ||||||||||
| Service Industries |
7,440.7 | 203.6 | (283.1 | ) | 82.2 | 158.3 | 84.5 | 7,723.9 | 121.3 | 7,282.3 | 119.0 | |||||||||||||
| Local Governments |
386.5 | 3.8 | (6.8 | ) | (0.0 | ) | 22.4 | 0.8 | 393.4 | 3.9 | 364.1 | 3.0 | ||||||||||||
| Governments |
5,042.7 | — | (662.2 | ) | — | (474.0 | ) | — | 5,704.9 | — | 5,516.8 | — | ||||||||||||
| Other |
13,725.9 | 129.8 | 76.3 | 8.9 | 320.6 | (3.7 | ) | 13,649.5 | 120.8 | 13,405.3 | 133.5 | |||||||||||||
| Overseas Total (including Loans Booked Offshore) |
9,221.4 | 41.1 | 1,062.9 | 0.7 | 1,954.3 | (0.2 | ) | 8,158.5 | 40.4 | 7,267.1 | 41.4 | |||||||||||||
| Governments |
247.1 | 0.0 | (48.6 | ) | (4.5 | ) | (16.6 | ) | (2.8 | ) | 295.7 | 4.6 | 263.8 | 2.9 | ||||||||||
| Financial Institutions |
2,695.8 | 15.3 | 849.7 | 8.9 | 1,214.4 | 8.8 | 1,846.0 | 6.4 | 1,481.4 | 6.5 | ||||||||||||||
| Other |
6,278.4 | 25.7 | 261.8 | (3.6 | ) | 756.6 | (6.2 | ) | 6,016.6 | 29.3 | 5,521.8 | 31.9 | ||||||||||||
| Total |
68,491.9 | 1,198.3 | (629.6 | ) | 17.6 | 1,600.1 | 262.7 | 69,121.5 | 1,180.7 | 66,891.7 | 935.5 | |||||||||||||
| * | Loans to Finance & Insurance sector includes loans to MHFG as follows: |
As of September 30, 2007: ¥1,130.0 billion (from MHBK ¥565.0 billion; from MHCB ¥565.0 billion)
As of March 31, 2007: ¥1,380.0 billion (from MHBK ¥690.0 billion; from MHCB ¥690.0 billion)
As of September 30, 2006: ¥1,380.0 billion (from MHBK ¥690.0 billion; from MHCB ¥690.0 billion)
| * | Amounts of Outstanding Balances are aggregated figures of banking and trust accounts, and amounts of Non-Accrual, Past Due & Restructured Loans are aggregated figures of banking and trust accounts with contracts indemnifying the principal amounts. |
3-33
Mizuho Financial Group, Inc.
| (Billions of yen) | ||||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| Outstanding Balance |
Non-Accrual, Past Due & Restructured Loans |
Change from March 31, 2007 |
Change from September 30, 2006 |
Outstanding Balance |
Non-Accrual, Past Due & Restructured Loans |
Outstanding Balance |
Non-Accrual, Past Due & Restructured Loans | |||||||||||||||||
| Outstanding Balance |
Non-Accrual, Past Due & Restructured Loans |
Outstanding Balance |
Non-Accrual, Past Due & Restructured Loans |
|||||||||||||||||||||
| Mizuho Bank |
||||||||||||||||||||||||
| Domestic Total (excluding Loans Booked Offshore) |
33,519.5 | 682.7 | (545.4 | ) | 114.6 | (660.1 | ) | 155.5 | 34,065.0 | 568.0 | 34,179.6 | 527.1 | ||||||||||||
| Manufacturing |
3,132.5 | 81.4 | 49.0 | 17.4 | 46.3 | 23.7 | 3,083.4 | 64.0 | 3,086.2 | 57.6 | ||||||||||||||
| Agriculture |
34.3 | 0.0 | (1.6 | ) | 0.0 | (3.0 | ) | (0.2 | ) | 36.0 | 0.0 | 37.4 | 0.3 | |||||||||||
| Forestry |
0.9 | — | (0.0 | ) | (0.0 | ) | (0.1 | ) | (0.0 | ) | 1.0 | 0.0 | 1.1 | 0.0 | ||||||||||
| Fishery |
1.9 | 0.1 | (0.0 | ) | (0.0 | ) | (0.1 | ) | 0.1 | 2.0 | 0.1 | 2.0 | 0.0 | |||||||||||
| Mining |
8.5 | 0.1 | (1.0 | ) | 0.1 | (2.4 | ) | 0.1 | 9.5 | — | 10.9 | — | ||||||||||||
| Construction |
714.5 | 31.7 | (47.7 | ) | (1.8 | ) | (60.1 | ) | 4.7 | 762.3 | 33.6 | 774.7 | 27.0 | |||||||||||
| Utilities |
81.7 | 0.0 | (1.2 | ) | (0.0 | ) | (3.1 | ) | (0.0 | ) | 82.9 | 0.0 | 84.8 | 0.1 | ||||||||||
| Communication |
375.6 | 7.6 | (18.2 | ) | 2.2 | (12.4 | ) | 2.2 | 393.9 | 5.4 | 388.1 | 5.3 | ||||||||||||
| Transportation |
970.7 | 34.3 | 11.2 | (13.6 | ) | 34.5 | (15.8 | ) | 959.5 | 48.0 | 936.2 | 50.2 | ||||||||||||
| Wholesale & Retail |
4,036.1 | 125.5 | (61.6 | ) | 24.5 | (141.9 | ) | 44.1 | 4,097.8 | 100.9 | 4,178.1 | 81.3 | ||||||||||||
| Finance & Insurance |
2,109.8 | 58.5 | (62.6 | ) | 51.2 | (222.4 | ) | 51.4 | 2,172.5 | 7.3 | 2,332.3 | 7.1 | ||||||||||||
| Real Estate |
3,457.4 | 79.2 | (109.3 | ) | (15.3 | ) | (129.5 | ) | (16.9 | ) | 3,566.7 | 94.6 | 3,587.0 | 96.2 | ||||||||||
| Service Industries |
3,279.4 | 143.1 | (287.1 | ) | 40.3 | (229.9 | ) | 43.6 | 3,566.5 | 102.8 | 3,509.3 | 99.5 | ||||||||||||
| Local Governments |
285.9 | — | (6.4 | ) | — | 11.8 | — | 292.3 | — | 274.1 | — | |||||||||||||
| Governments |
3,494.4 | — | (22.6 | ) | — | (199.3 | ) | — | 3,517.1 | — | 3,693.7 | — | ||||||||||||
| Other |
11,535.1 | 120.4 | 14.0 | 9.5 | 251.8 | 18.3 | 11,521.0 | 110.8 | 11,283.2 | 102.0 | ||||||||||||||
| Overseas Total (including Loans Booked Offshore) |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Governments |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Financial Institutions |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Other |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Total |
33,519.5 | 682.7 | (545.4 | ) | 114.6 | (660.1 | ) | 155.5 | 34,065.0 | 568.0 | 34,179.6 | 527.1 | ||||||||||||
| Mizuho Corporate Bank | ||||||||||||||||||||||||
| Domestic Total (excluding Loans Booked Offshore) |
19,888.9 | 415.4 | (693.6 | ) | (43.0 | ) | (947.2 | ) | 132.4 | 20,582.6 | 458.4 | 20,836.1 | 282.9 | |||||||||||
| Manufacturing |
3,673.5 | 19.2 | 93.0 | 5.1 | (76.7 | ) | 0.4 | 3,580.4 | 14.1 | 3,750.2 | 18.8 | |||||||||||||
| Agriculture |
0.9 | — | (0.0 | ) | — | (0.1 | ) | — | 1.0 | — | 1.1 | — | ||||||||||||
| Forestry |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Fishery |
0.4 | — | — | — | (0.5 | ) | — | 0.4 | — | 1.0 | — | |||||||||||||
| Mining |
116.6 | — | (6.3 | ) | (0.0 | ) | 1.2 | — | 123.0 | 0.0 | 115.4 | — | ||||||||||||
| Construction |
489.4 | 13.8 | 8.8 | (3.9 | ) | (9.6 | ) | (1.8 | ) | 480.5 | 17.7 | 499.1 | 15.6 | |||||||||||
| Utilities |
486.3 | 0.3 | (70.1 | ) | 0.3 | (224.1 | ) | 0.3 | 556.4 | 0.0 | 710.5 | 0.0 | ||||||||||||
| Communication |
257.8 | 6.5 | (43.0 | ) | 6.0 | (147.9 | ) | 5.7 | 300.9 | 0.5 | 405.8 | 0.8 | ||||||||||||
| Transportation |
1,442.7 | 99.7 | (123.1 | ) | 12.1 | (266.8 | ) | (12.4 | ) | 1,565.9 | 87.5 | 1,709.6 | 112.1 | |||||||||||
| Wholesale & Retail |
1,436.7 | 84.5 | (90.0 | ) | (1.1 | ) | (169.2 | ) | (1.2 | ) | 1,526.8 | 85.7 | 1,605.9 | 85.8 | ||||||||||
| Finance & Insurance |
3,664.8 | 126.4 | (405.1 | ) | (103.9 | ) | (402.1 | ) | 126.0 | 4,069.9 | 230.3 | 4,067.0 | 0.3 | |||||||||||
| Real Estate |
2,230.4 | 6.5 | (61.8 | ) | (4.6 | ) | (17.9 | ) | (11.2 | ) | 2,292.2 | 11.2 | 2,248.3 | 17.8 | ||||||||||
| Service Industries |
3,828.7 | 57.5 | (52.8 | ) | 47.2 | 323.5 | 47.7 | 3,881.5 | 10.3 | 3,505.1 | 9.8 | |||||||||||||
| Local Governments |
62.1 | — | 0.0 | — | 16.4 | — | 62.1 | — | 45.7 | — | ||||||||||||||
| Governments |
1,448.3 | — | (39.5 | ) | — | (74.7 | ) | — | 1,487.8 | — | 1,523.0 | — | ||||||||||||
| Other |
749.6 | 0.5 | 96.5 | (0.2 | ) | 101.8 | (21.1 | ) | 653.1 | 0.7 | 647.7 | 21.7 | ||||||||||||
| Overseas Total (including Loans Booked Offshore) |
9,206.8 | 41.1 | 1,054.6 | 2.4 | 1,943.5 | 1.2 | 8,152.2 | 38.7 | 7,263.3 | 39.9 | ||||||||||||||
| Governments |
245.5 | 0.0 | (48.5 | ) | (2.8 | ) | (16.5 | ) | (2.8 | ) | 294.0 | 2.9 | 262.0 | 2.9 | ||||||||||
| Financial Institutions |
2,695.8 | 15.3 | 849.7 | 8.9 | 1,214.4 | 8.8 | 1,846.0 | 6.4 | 1,481.4 | 6.5 | ||||||||||||||
| Other |
6,265.5 | 25.7 | 253.4 | (3.6 | ) | 745.7 | (4.7 | ) | 6,012.0 | 29.3 | 5,519.7 | 30.4 | ||||||||||||
| Total |
29,095.8 | 456.6 | 361.0 | (40.5 | ) | 996.3 | 133.7 | 28,734.8 | 497.1 | 28,099.4 | 322.9 | |||||||||||||
| Mizuho Trust & Banking (Banking Account + Trust Account) | ||||||||||||||||||||||||
| Domestic Total (excluding Loans Booked Offshore) |
5,861.8 | 58.9 | (453.4 | ) | (54.8 | ) | 1,253.1 | (25.0 | ) | 6,315.3 | 113.8 | 4,608.7 | 83.9 | |||||||||||
| Manufacturing |
467.6 | 1.8 | 50.3 | (0.2 | ) | 58.4 | 1.0 | 417.3 | 2.0 | 409.2 | 0.7 | |||||||||||||
| Agriculture |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Forestry |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Fishery |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Mining |
6.2 | — | (0.0 | ) | — | (0.3 | ) | — | 6.3 | — | 6.6 | — | ||||||||||||
| Construction |
144.6 | 0.1 | 20.6 | (1.0 | ) | 27.1 | (0.7 | ) | 123.9 | 1.2 | 117.4 | 0.8 | ||||||||||||
| Utilities |
94.7 | — | (1.0 | ) | — | (8.6 | ) | — | 95.7 | — | 103.4 | — | ||||||||||||
| Communication |
1,338.7 | — | (46.3 | ) | — | 1,310.1 | — | 1,385.0 | — | 28.5 | — | |||||||||||||
| Transportation |
184.5 | 2.3 | (18.7 | ) | (42.4 | ) | (29.4 | ) | (44.7 | ) | 203.3 | 44.7 | 214.0 | 47.1 | ||||||||||
| Wholesale & Retail |
221.6 | 1.4 | (6.9 | ) | 0.0 | (5.0 | ) | (0.4 | ) | 228.5 | 1.4 | 226.6 | 1.9 | |||||||||||
| Finance & Insurance |
623.2 | 31.5 | 111.3 | (3.2 | ) | 77.0 | 31.5 | 511.8 | 34.7 | 546.2 | — | |||||||||||||
| Real Estate |
868.1 | 5.9 | 15.3 | (2.0 | ) | (1.9 | ) | (4.7 | ) | 852.8 | 8.0 | 870.0 | 10.7 | |||||||||||
| Service Industries |
332.5 | 2.8 | 56.7 | (5.4 | ) | 64.6 | (6.8 | ) | 275.8 | 8.2 | 267.8 | 9.6 | ||||||||||||
| Local Governments |
38.4 | 3.8 | (0.5 | ) | (0.0 | ) | (5.8 | ) | 0.8 | 39.0 | 3.9 | 44.2 | 3.0 | |||||||||||
| Governments |
100.0 | — | (600.0 | ) | — | (200.0 | ) | — | 700.0 | — | 300.0 | — | ||||||||||||
| Other |
1,441.1 | 8.8 | (34.2 | ) | (0.3 | ) | (33.1 | ) | (0.9 | ) | 1,475.4 | 9.2 | 1,474.3 | 9.7 | ||||||||||
| Overseas Total (including Loans Booked Offshore) |
14.5 | — | 8.2 | (1.6 | ) | 10.7 | (1.5 | ) | 6.3 | 1.6 | 3.8 | 1.5 | ||||||||||||
| Governments |
1.5 | — | (0.0 | ) | (1.6 | ) | (0.1 | ) | — | 1.6 | 1.6 | 1.7 | — | |||||||||||
| Financial Institutions |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Other |
12.9 | — | 8.3 | — | 10.8 | (1.5 | ) | 4.6 | — | 2.1 | 1.5 | |||||||||||||
| Total |
5,876.4 | 58.9 | (445.1 | ) | (56.5 | ) | 1,263.8 | (26.5 | ) | 6,321.6 | 115.5 | 4,612.5 | 85.5 | |||||||||||
| * | Amounts of outstanding loans are aggregated figures of banking and trust accounts, and amounts of non-accrual, past due & restructured loans are aggregated figures of banking and trust accounts with contracts indemnifying the principal amounts. |
3-34
Mizuho Financial Group, Inc.
(2) Disclosed Claims under the FRL and Coverage Ratio by Industry
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
| (Billions of yen, %) | ||||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| Disclosed |
Coverage |
Change from March 31, 2007 |
Change from September 30, 2006 |
Disclosed |
Coverage |
Disclosed the FRL |
Coverage | |||||||||||||||||
| Disclosed Claims under the FRL |
Coverage Ratio |
Disclosed Claims under the FRL |
Coverage Ratio |
|||||||||||||||||||||
| Domestic Total (excluding Loans Booked Offshore) |
1,224.2 | 71.7 | 21.2 | (0.1 | ) | 284.9 | (1.9 | ) | 1,203.0 | 71.9 | 939.3 | 73.7 | ||||||||||||
| Manufacturing |
109.4 | 66.3 | 23.0 | (5.8 | ) | 27.1 | (8.1 | ) | 86.4 | 72.1 | 82.2 | 74.5 | ||||||||||||
| Agriculture |
0.0 | 63.5 | 0.0 | (36.4 | ) | (0.2 | ) | (28.9 | ) | 0.0 | 100.0 | 0.3 | 92.5 | |||||||||||
| Forestry |
— | — | (0.0 | ) | (68.4 | ) | (0.0 | ) | (69.4 | ) | 0.0 | 68.4 | 0.0 | 69.4 | ||||||||||
| Fishery |
0.1 | 19.4 | (0.0 | ) | (0.0 | ) | 0.1 | (54.5 | ) | 0.1 | 19.4 | 0.0 | 73.9 | |||||||||||
| Mining |
0.8 | 67.4 | 0.7 | 50.2 | 0.8 | 67.4 | 0.0 | 17.2 | — | — | ||||||||||||||
| Construction |
46.6 | 63.9 | (7.9 | ) | 6.3 | 2.5 | (8.5 | ) | 54.5 | 57.6 | 44.0 | 72.5 | ||||||||||||
| Utilities |
0.3 | 24.4 | 0.3 | (75.5 | ) | 0.2 | (75.5 | ) | 0.0 | 100.0 | 0.1 | 100.0 | ||||||||||||
| Communication |
15.8 | 66.7 | 9.4 | 0.1 | 9.2 | (4.1 | ) | 6.4 | 66.6 | 6.6 | 70.9 | |||||||||||||
| Transportation |
140.1 | 79.3 | (41.3 | ) | 6.1 | (69.5 | ) | 10.7 | 181.4 | 73.1 | 209.6 | 68.5 | ||||||||||||
| Wholesale & Retail |
218.0 | 56.2 | 25.2 | (0.2 | ) | 47.2 | (4.9 | ) | 192.7 | 56.5 | 170.8 | 61.2 | ||||||||||||
| Finance & Insurance |
216.8 | 57.7 | (61.2 | ) | (12.6 | ) | 208.8 | (12.0 | ) | 278.0 | 70.4 | 7.9 | 69.8 | |||||||||||
| Real Estate |
92.2 | 87.1 | (21.9 | ) | 1.3 | (33.8 | ) | 0.9 | 114.1 | 85.8 | 126.0 | 86.2 | ||||||||||||
| Service Industries |
208.8 | 77.7 | 84.7 | 14.2 | 89.0 | 14.4 | 124.0 | 63.5 | 119.7 | 63.3 | ||||||||||||||
| Local Governments |
31.5 | 100.0 | 0.0 | — | 5.9 | — | 31.4 | 100.0 | 25.5 | 100.0 | ||||||||||||||
| Other |
143.3 | 91.8 | 10.1 | 0.9 | (2.6 | ) | 2.6 | 133.1 | 90.9 | 146.0 | 89.2 | |||||||||||||
| Overseas Total (including Loans Booked Offshore) |
44.4 | 83.8 | 0.7 | 19.3 | (2.4 | ) | 19.7 | 43.7 | 64.5 | 46.9 | 64.1 | |||||||||||||
| Governments |
0.0 | 67.4 | (4.5 | ) | 50.2 | (2.8 | ) | 48.4 | 4.6 | 17.2 | 2.9 | 19.0 | ||||||||||||
| Financial Institutions |
16.2 | 98.0 | 8.8 | 3.8 | 8.8 | 4.0 | 7.3 | 94.2 | 7.3 | 94.0 | ||||||||||||||
| Other |
28.1 | 75.7 | (3.5 | ) | 11.2 | (8.4 | ) | 13.9 | 31.7 | 64.5 | 36.6 | 61.8 | ||||||||||||
| Total |
1,268.7 | 72.0 | 22.0 | 0.5 | 282.4 | (1.0 | ) | 1,246.7 | 71.4 | 986.2 | 73.1 | |||||||||||||
| * | Trust account denotes trust accounts with contracts indemnifying the principal amounts. |
3-35
Mizuho Financial Group, Inc.
9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises (“SMEs”) and Individual Customers
(1) Balance of Housing and Consumer Loans
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
| (Billions of yen) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Housing and Consumer Loans |
12,080.5 | (34.9 | ) | 157.7 | 12,115.5 | 11,922.8 | ||||||
| Housing Loans for owner’s residential housing |
9,713.6 | 29.3 | 297.6 | 9,684.3 | 9,416.0 | |||||||
| Mizuho Bank |
||||||||||||
| Housing and Consumer Loans |
11,756.6 | (24.9 | ) | 175.4 | 11,781.5 | 11,581.2 | ||||||
| Housing Loans |
10,720.5 | (40.4 | ) | 151.9 | 10,761.0 | 10,568.6 | ||||||
| for owner’s residential housing |
9,443.6 | 34.8 | 306.4 | 9,408.7 | 9,137.1 | |||||||
| Consumer loans |
1,036.1 | 15.5 | 23.4 | 1,020.5 | 1,012.6 | |||||||
| Mizuho Corporate Bank |
||||||||||||
| Housing and Consumer Loans |
— | — | — | — | — | |||||||
| Housing Loans |
— | — | — | — | — | |||||||
| for owner’s residential housing |
— | — | — | — | — | |||||||
| Consumer loans |
— | — | — | — | — | |||||||
| Mizuho Trust & Banking (Banking Account + Trust Account) |
||||||||||||
| Housing and Consumer Loans |
323.9 | (10.0 | ) | (17.6 | ) | 333.9 | 341.5 | |||||
| Housing Loans for owner’s residential housing |
270.0 | (5.5 | ) | (8.8 | ) | 275.5 | 278.9 | |||||
| ___________ | ||||||||||||
| * Above figures are aggregated banking and trust account amounts. | ||||||||||||
(2) Loans to SMEs and Individual Customers
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
| (%, Billions of yen) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans |
62.1 | 0.0 | (0.6 | ) | 62.0 | 62.7 | ||||||
| Loans to SMEs and Individual Customers |
36,813.7 | (1,036.3 | ) | (594.7 | ) | 37,850.1 | 37,408.5 | |||||
| __________ |
||||||||||||
| * Loans to MHFG are included as follows: |
||||||||||||
| As of September 30, 2007: ¥1,130.0 billion (from MHBK ¥565.0 billion; from MHCB ¥565.0 billion) | ||||||||||||
| As of March 31, 2007: ¥1,380.0 billion (from MHBK ¥690.0 billion; from MHCB ¥690.0 billion) | ||||||||||||
| As of September 30, 2006: ¥1,380.0 billion (from MHBK ¥690.0 billion; from MHCB ¥690.0 billion) | ||||||||||||
| Mizuho Bank | ||||||||||||
| Percentage of Loans to SMEs and Individual Customers, |
75.2 | (1.1 | ) | (0.3 | ) | 76.4 | 75.6 | |||||
| Loans to SMEs and Individual Customers |
25,239.3 | (800.8 | ) | (628.4 | ) | 26,040.1 | 25,867.7 | |||||
| Mizuho Corporate Bank |
||||||||||||
| Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans |
44.9 | 0.5 | 3.0 | 44.3 | 41.8 | |||||||
| Loans to SMEs and Individual Customers |
8,930.3 | (202.4 | ) | 201.0 | 9,132.8 | 8,729.2 | ||||||
| Mizuho Trust & Banking (Banking Account + Trust Account) |
||||||||||||
| Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans |
45.1 | 2.7 | (15.8 | ) | 42.3 | 61.0 | ||||||
| Loans to SMEs and Individual Customers |
2,644.0 | (33.0 | ) | (167.4 | ) | 2,677.1 | 2,811.5 | |||||
* Above figures are aggregated banking and trust account amounts. * Above figures do not include loans booked at overseas offices and offshore loans. * The definition of “Small and Medium-sized Enterprises” is as follows: Enterprises of which the capital is ¥300 million or below (¥100 million or below for the wholesale industry, and ¥50 million or below for the retail and service industries), or enterprises with full-time employees of 300 or below (100 or below for the wholesale industry, 50 or below for the retail industry, and 100 or below for the service industry.) | ||||||||||||
3-36
Mizuho Financial Group, Inc.
10. Status of Loans by Region
(1) Balance of Loans to Restructuring Countries
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
| (Billions of yen, Number of countries) | ||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | ||||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||
| Loan amount |
1.1 | (44.5 | ) | (34.7 | ) | 45.6 | 35.8 | |||||
| Number of Restructuring Countries* |
4 | — | — | 4 | 4 | |||||||
| * | Number of Restructuring Countries refers to the countries of obligors’ residence. |
(2) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Region
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
| (Billions of yen) | ||||||||||||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 | As of September 30, 2006 | ||||||||||||||||||||||
| Outstanding Balance |
Non-Accrual, Past Due and |
Change from March 31, 2007 |
Change from September 30, 2006 |
Outstanding Balance |
Non-Accrual, Past Due and Restructured Loans |
Outstanding Balance |
Non-Accrual, Past Due and Restructured Loans | |||||||||||||||||
| Outstanding Balance |
Non-Accrual, Past Due and Restructured Loans |
Outstanding Balance |
Non-Accrual, Past Due and Restructured Loans |
|||||||||||||||||||||
| Asia |
2,115.3 | 8.2 | (367.3 | ) | (9.7 | ) | (63.8 | ) | (4.9 | ) | 2,482.7 | 18.0 | 2,179.2 | 13.1 | ||||||||||
| Hong Kong |
454.2 | 0.6 | 52.7 | (0.1 | ) | 67.3 | (0.0 | ) | 401.5 | 0.8 | 386.9 | 0.7 | ||||||||||||
| Korea |
370.3 | — | (71.6 | ) | — | 82.9 | (0.0 | ) | 441.9 | — | 287.3 | 0.0 | ||||||||||||
| Singapore |
329.7 | — | 31.8 | (1.1 | ) | 106.4 | (0.0 | ) | 297.9 | 1.1 | 223.3 | 0.0 | ||||||||||||
| Cnina* |
24.7 | 0.8 | (395.6 | ) | (6.7 | ) | (370.2 | ) | (2.6 | ) | 420.4 | 7.6 | 394.9 | 3.4 | ||||||||||
| Central and South America |
2,238.6 | 0.6 | 74.4 | 0.3 | 644.9 | (0.1 | ) | 2,164.2 | 0.2 | 1,593.7 | 0.8 | |||||||||||||
| North America |
2,499.8 | 5.5 | 376.1 | (0.2 | ) | 392.5 | (24.1 | ) | 2,123.6 | 5.7 | 2,107.3 | 29.6 | ||||||||||||
| Eastern Europe |
61.6 | — | 19.5 | — | 31.1 | — | 42.0 | — | 30.4 | — | ||||||||||||||
| Western Europe |
3,366.3 | 16.5 | 885.4 | 10.7 | 1,225.0 | 8.3 | 2,480.8 | 5.8 | 2,141.2 | 8.2 | ||||||||||||||
| Other |
1,093.8 | 4.4 | 235.4 | 0.3 | 414.1 | 0.7 | 858.4 | 4.0 | 679.7 | 3.6 | ||||||||||||||
| Total |
11,375.7 | 35.4 | 1,223.6 | 1.4 | 2,643.9 | (20.1 | ) | 10,152.0 | 33.9 | 8,731.7 | 55.5 | |||||||||||||
| * | The decrease in China is due to the affect of the establishment of Mizuho Corporate Bank (China), Ltd in June 2007 and other. |
3-37
Mizuho Financial Group, Inc.
III. DEFERRED TAXES
1. Change in Deferred Tax Assets, etc.
Consolidated
| (Billions of yen) | |||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 | |||||||||
| Change from March 31, 2007 |
Change from September 30, 2006 |
||||||||||
| Net Deferred Tax Assets (A) |
311.3 | 140.5 | 79.0 | 170.8 | 232.2 | ||||||
| (Reference) |
|||||||||||
| Tier I Capital (B) |
4,918.7 | (14.8 | ) | 544.3 | 4,933.5 | 4,374.3 | |||||
| (A)/(B) (%) |
6.3 | 2.8 | 1.0 | 3.4 | 5.3 | ||||||
| * | Tier I Capital as of September 30, 2006 are calculated under the previous standard. |
Non-Consolidated
| (Billions of yen) | |||||||||||||||
| As of September 30, 2007 | As of March 31, 2007 |
As of September 30, 2006 |
|||||||||||||
| Mizuho Bank | Change from March 31, 2007 |
Change from September 30, 2006 |
|||||||||||||
| Total Deferred Tax Assets (A) |
1,021.6 | (30.0 | ) | (52.8 | ) | 1,051.7 | 1,074.4 | ||||||||
| Total Deferred Tax Liabilities (B) |
(297.5 | ) | 40.4 | 25.6 | (337.9 | ) | (323.2 | ) | |||||||
| (A) + (B) |
724.1 | 10.4 | (27.1 | ) | 713.7 | 751.2 | |||||||||
| Valuation Allowance |
(356.8 | ) | 24.6 | 60.0 | (381.5 | ) | (416.9 | ) | |||||||
| Net Deferred Tax Assets (C) |
367.2 | 35.0 | 32.9 | 332.1 | 334.2 | ||||||||||
| (Reference) |
|||||||||||||||
| Tier I Capital (D) |
1,984.7 | 19.4 | 1.7 | 1,965.3 | 1,982.9 | ||||||||||
| (C)/(D) (%) |
18.5 | 1.6 | 1.6 | 16.9 | 16.8 | ||||||||||
| Mizuho Corporate Bank |
|||||||||||||||
| Total Deferred Tax Assets (A) |
1,381.8 | (76.9 | ) | (119.8 | ) | 1,458.7 | 1,501.7 | ||||||||
| Total Deferred Tax Liabilities (B) |
(612.4 | ) | 133.5 | 78.9 | (746.0 | ) | (691.3 | ) | |||||||
| (A) + (B) |
769.3 | 56.6 | (40.9 | ) | 712.7 | 810.3 | |||||||||
| Valuation Allowance |
(864.3 | ) | 29.3 | 56.0 | (893.6 | ) | (920.4 | ) | |||||||
| Net Deferred Tax Assets (C) |
(94.9 | ) | 85.9 | 15.1 | (180.9 | ) | (110.1 | ) | |||||||
| (Reference) |
|||||||||||||||
| Tier I Capital (D) |
3,153.8 | 231.0 | 109.8 | 2,922.8 | 3,044.0 | ||||||||||
| (C)/(D) (%) |
(3.0 | ) | 3.1 | 0.6 | (6.1 | ) | (3.6 | ) | |||||||
| Mizuho Trust & Banking |
|||||||||||||||
| Total Deferred Tax Assets (A) |
242.4 | (19.0 | ) | (31.7 | ) | 261.4 | 274.2 | ||||||||
| Total Deferred Tax Liabilities (B) |
(44.2 | ) | 9.2 | 32.6 | (53.5 | ) | (76.9 | ) | |||||||
| (A) + (B) |
198.1 | (9.7 | ) | 0.9 | 207.8 | 197.2 | |||||||||
| Valuation Allowance |
(172.4 | ) | 16.6 | 32.9 | (189.0 | ) | (205.4 | ) | |||||||
| Net Deferred Tax Assets (C) |
25.7 | 6.8 | 33.8 | 18.8 | (8.1 | ) | |||||||||
| (Reference) |
|||||||||||||||
| Tier I Capital (D) |
344.9 | (8.2 | ) | 23.9 | 353.2 | 321.0 | |||||||||
| (C)/(D) (%) |
7.4 | 2.1 | 10.0 | 5.3 | (2.5 | ) | |||||||||
| Aggregated Figures of the Three Banks |
|||||||||||||||
| Total Deferred Tax Assets (A) |
2,645.9 | (126.0 | ) | (204.4 | ) | 2,771.9 | 2,850.3 | ||||||||
| Total Deferred Tax Liabilities (B) |
(954.3 | ) | 183.3 | 137.3 | (1,137.6 | ) | (1,091.6 | ) | |||||||
| (A) + (B) |
1,691.6 | 57.3 | (67.1 | ) | 1,634.3 | 1,758.7 | |||||||||
| Valuation Allowance |
(1,393.6 | ) | 70.6 | 149.0 | (1,464.3 | ) | (1,542.7 | ) | |||||||
| Net Deferred Tax Assets (C) |
297.9 | 127.9 | 81.9 | 169.9 | 215.9 | ||||||||||
| (Reference) |
|||||||||||||||
| Tier I Capital (D) |
5,483.6 | 242.2 | 135.5 | 5,241.3 | 5,348.0 | ||||||||||
| (C)/(D) (%) |
5.4 | 2.1 | 1.3 | 3.2 | 4.0 | ||||||||||
* Tier I Capital as of September 30, 2006 are calculated under the previous standard.
3-38
Mizuho Financial Group, Inc.
2. Estimation of Deferred Tax Assets, etc.
Non-Consolidated
(1) Calculation Policy
Recoverability of Deferred Tax Assets is basically assessed based on future taxable income derived from future profitability, considering that Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking’s fundamental profitability enabled the three banks consistently to report an appropriate level of Net Business Profits in previous periods. Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking’s tax losses carry-forwards and future deductible temporary differences in the past resulted from nonrecurring special causes, e.g. losses from extraordinary and significant waiver of claims due to the crash of the bubble economy, acceleration of disposition of NPLs and stock holdings in accordance with government policy to stabilize promptly the financial system under the long deflationary depression, and the restructuring of businesses to meet the severe management environment. Since the three banks could have reported positive taxable income every year if the losses from these special factors were excluded, the conditions under the provisory clause of 5. (1) „ of “Audit Guideline for Considering Recoverability of Deferred Tax Assets” (JICPA Audit Committee Report No. 66) have been fulfilled. Period for future taxable income considered in the assessment is five years.
(Reference) Past results of taxable income (tax loss)
| (Billions of yen) | |||||||||
| Mizuho Bank | Mizuho Corporate Bank | Mizuho Trust & Banking | |||||||
| First Half of Fiscal 2007 (estimate) |
160.0 | 190.0 | 36.0 | ||||||
| Fiscal 2006 |
128.6 | 438.4 | 83.1 | ||||||
| Fiscal 2005 |
124.2 | 211.0 | 24.9 | ||||||
| Fiscal 2004 |
36.8 | 485.1 | 44.8 | ||||||
| Fiscal 2003 |
396.3 | 423.4 | 66.7 | ||||||
| Fiscal 2002 |
(976.5 | ) | (2,326.9 | ) | (195.0 | ) | |||
(Notes)
| 1. | Figures are taxable income (tax loss) amounts per the final corporation tax returns before deducting tax losses carried forward from prior years. Subsequent amendments have not been reflected. |
| 2. | Figures for the First Half of Fiscal 2007 are estimates of taxable income before deducting tax losses carried forward from prior years. |
| 3. | Above figures are those before deducting losses due to nonrecurring special reasons stipulated in Section 5. of JICPA Audit Committee Report No.66. |
If these nonrecurring factors are excluded, positive taxable income would have been recorded in each term.
| 4. | Figures for the periods before the Corporate Split and Merger are those of the legally surviving banks. |
3-39
Mizuho Financial Group, Inc.
(2) Estimation for Calculating Deferred Tax Assets
Mizuho Bank
1. Estimate of future taxable income
| (Billions of yen) (Reference) |
|||||||||||||
| Total amount for five years (from October 1, 2007 to September 30, 2012) |
First Half of Fiscal 2007 |
||||||||||||
| Gross Profits |
1 | 4,763.2 | 466.9 | ||||||||||
| General and Administrative Expenses |
2 | (2,620.9 | ) | (267.2 | ) | ||||||||
| Net Business Profits (before Reversal of (Provision for) |
3 | 2,142.3 | 199.6 | ||||||||||
| Credit-related Costs |
4 | (500.0 | ) | (81.7 | ) | ||||||||
| Income before Income Taxes |
5 | 1,552.3 | 105.6 | ||||||||||
| Tax Adjustments *1 |
6 | 180.1 | |||||||||||
| Taxable Income before Current Temporary Differences *2 |
7 | 1,732.4 | |||||||||||
| Effective Statutory tax rate |
8 | 40.60 | % | ||||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [ 7 x 8 ] |
9 | 703.3 | è | Equal to Line 27 | |||||||||
| *1. | Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others. |
| *2. | Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2007. |
2. Breakdown of Deferred Tax Assets
| (Billions of yen) | |||||||||||||||||
| As of September 30, 2007 |
Change from March 31, 2007 |
Change from September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2006 |
|||||||||||||
| Reserves for Possible Losses on Loans |
10 | 162.1 | 20.3 | 16.6 | 141.8 | 145.4 | |||||||||||
| Devaluation of Securities |
11 | 215.4 | 3.8 | 76.5 | 211.6 | 138.8 | |||||||||||
| Net Unrealized Losses on Other Securities |
12 | 8.5 | 8.5 | 8.5 | — | — | |||||||||||
| Reserve for Employee Retirement Benefits |
13 | — | — | — | — | — | |||||||||||
| Net Deferred Hedge Losses |
14 | 35.5 | (4.7 | ) | (10.5 | ) | 40.3 | 46.1 | |||||||||
| Tax Losses Carried Forward |
15 | 380.5 | (63.9 | ) | (131.1 | ) | 444.5 | 511.7 | |||||||||
| Other |
16 | 219.4 | 5.9 | (12.9 | ) | 213.4 | 232.3 | ||||||||||
| Total Deferred Tax Assets |
17 | 1,021.6 | (30.0 | ) | (52.8 | ) | 1,051.7 | 1,074.4 | |||||||||
| Valuation Allowance |
18 | (356.8 | ) | 24.6 | 60.0 | (381.5 | ) | (416.9 | ) | ||||||||
| Sub Total [ 17 + 18 ] |
19 | 664.7 | (5.3 | ) | 7.2 | 670.1 | 657.5 | ||||||||||
| Amount related to Retirement Benefits Accounting * |
20 | (145.9 | ) | (8.8 | ) | 14.3 | (137.0 | ) | (160.2 | ) | |||||||
| Unrealized Profits related to Lease Transactions |
21 | — | — | — | — | — | |||||||||||
| Net Unrealized Gains on Other Securities |
22 | (80.8 | ) | 47.3 | 51.5 | (128.1 | ) | (132.4 | ) | ||||||||
| Net Deferred Hedge Gains |
23 | — | — | — | — | — | |||||||||||
| Other |
24 | (70.8 | ) | 1.9 | (40.2 | ) | (72.7 | ) | (30.5 | ) | |||||||
| Total Deferred Tax Liabilities |
25 | (297.5 | ) | 40.4 | 25.6 | (337.9 | ) | (323.2 | ) | ||||||||
| Net Deferred Tax Assets (Liabilities) [17 + 18 + 25] |
26 | 367.2 | 35.0 | 32.9 | 332.1 | 334.2 | |||||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [9] |
27 | 703.3 | 110.1 | 221.5 | 593.1 | 481.8 | |||||||||||
| Net Unrealized Gains on Other Securities [22] |
28 | (80.8 | ) | 47.3 | 51.5 | (128.1 | ) | (132.4 | ) | ||||||||
| Net Deferred Hedge Losses [14] |
29 | 35.5 | (4.7 | ) | (10.5 | ) | 40.3 | 46.1 | |||||||||
| Net Deferred Hedge Gains [23] |
30 | — | — | — | — | — | |||||||||||
| Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others) |
31 | (290.8 | ) | (117.6 | ) | (229.6 | ) | (173.1 | ) | (61.2 | ) | ||||||
| * | Amount related to Retirement Benefits Accounting includes deferred tax liabilities related to gains on securities contributed to employee retirement benefit trust (¥(87.4) billion, ¥(87.4) billion and ¥(97.1) billion as of September 30, 2007, March 31, 2007 and September 30, 2006, respectively). |
<Explanation>
Future taxable income was estimated using more conservative assumptions than those used in the Business Plan, etc. Details of the respective estimated five-year totals are as follows:
Gross Profits: ¥4,763.2 billion [1]
General and Administrative Expenses: ¥2,620.9 billion [2]
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥2,142.3 billion [3]
Income before Income Taxes (including Credit-related costs, etc.): ¥1,552.3 billion [5]
Taxable Income before Current Temporary Differences: ¥1,732.4 billion [7].
On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans, Tax Losses Carried Forward and others amount to ¥1,021.6 billion [17]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥(356.8) billion [18] was provided, therefore after offsetting Deferred Tax Liabilities of ¥(297.5) billion [25], ¥367.2 billion [26] of Net Deferred Tax Assets was recorded on the balance sheet.
3-40
Mizuho Financial Group, Inc.
Mizuho Corporate Bank
1. Estimate of future taxable income
| (Billions of yen) (Reference) |
|||||||||||||
| Total amount for five years (from October 1, 2007 |
First Half of Fiscal 2007 |
||||||||||||
| Gross Profits |
1 | 2,692.4 | 301.8 | ||||||||||
| General and Administrative Expenses |
2 | (1,258.7 | ) | (123.6 | ) | ||||||||
| Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) |
3 | 1,433.7 | 178.2 | ||||||||||
| Credit-related Costs |
4 | (250.0 | ) | 6.1 | |||||||||
| Income before Income Taxes |
5 | 1,163.7 | 212.0 | ||||||||||
| Tax Adjustments *1 |
6 | (75.6 | ) | ||||||||||
| Taxable Income before Current Temporary Differences *2 |
7 | 1,088.0 | |||||||||||
| Effective Statutory tax rate |
8 | 40.65 | % | ||||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [ 7 x 8 ] |
9 | 442.3 | è | Equal to Line 27 | |||||||||
| *1. | Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others. |
| *2. | Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2007. |
2. Breakdown of Deferred Tax Assets
| (Billions of yen) | |||||||||||||||||
| As of September 30, 2007 |
Change from March 31, 2007 |
Change from September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2006 |
|||||||||||||
| Reserves for Possible Losses on Loans |
10 | 152.6 | (21.5 | ) | (4.5 | ) | 174.1 | 157.1 | |||||||||
| Devaluation of Securities |
11 | 258.3 | 15.4 | 66.7 | 242.8 | 191.5 | |||||||||||
| Net Unrealized Losses on Other Securities |
12 | 11.1 | 11.1 | 11.1 | — | — | |||||||||||
| Reserve for Employee Retirement Benefits |
13 | — | — | — | — | — | |||||||||||
| Net Deferred Hedge Losses |
14 | 32.7 | (11.9 | ) | (0.0 | ) | 44.7 | 32.8 | |||||||||
| Tax Losses Carried Forward |
15 | 809.3 | (77.6 | ) | (166.6 | ) | 886.9 | 975.9 | |||||||||
| Other |
16 | 117.6 | 7.6 | (26.5 | ) | 110.0 | 144.1 | ||||||||||
| Total Deferred Tax Assets |
17 | 1,381.8 | (76.9 | ) | (119.8 | ) | 1,458.7 | 1,501.7 | |||||||||
| Valuation Allowance |
18 | (864.3 | ) | 29.3 | 56.0 | (893.6 | ) | (920.4 | ) | ||||||||
| Sub Total [ 17 + 18 ] |
19 | 517.4 | (47.6 | ) | (63.7 | ) | 565.0 | 581.2 | |||||||||
| Amount related to Retirement Benefits Accounting * |
20 | (58.5 | ) | (5.4 | ) | 25.5 | (53.1 | ) | (84.0 | ) | |||||||
| Unrealized Profits related to Lease Transactions |
21 | — | — | — | — | — | |||||||||||
| Net Unrealized Gains on Other Securities |
22 | (511.9 | ) | 136.4 | 88.2 | (648.3 | ) | (600.1 | ) | ||||||||
| Net Deferred Hedge Gains |
23 | — | — | — | — | — | |||||||||||
| Other |
24 | (42.0 | ) | 2.5 | (34.8 | ) | (44.5 | ) | (7.1 | ) | |||||||
| Total Deferred Tax Liabilities |
25 | (612.4 | ) | 133.5 | 78.9 | (746.0 | ) | (691.3 | ) | ||||||||
| Net Deferred Tax Assets (Liabilities) [17 + 18 + 25] |
26 | (94.9 | ) | 85.9 | 15.1 | (180.9 | ) | (110.1 | ) | ||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [9] |
27 | 442.3 | 4.4 | (5.0 | ) | 437.8 | 447.3 | ||||||||||
| Net Unrealized Gains on Other Securities [22] |
28 | (511.9 | ) | 136.4 | 88.2 | (648.3 | ) | (600.1 | ) | ||||||||
| Net Deferred Hedge Losses [14] |
29 | 32.7 | (11.9 | ) | (0.0 | ) | 44.7 | 32.8 | |||||||||
| Net Deferred Hedge Gains [23] |
30 | — | — | — | — | — | |||||||||||
| Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others) |
31 | (58.1 | ) | (42.9 | ) | (67.9 | ) | (15.2 | ) | 9.8 | |||||||
| * | Amount related to Retirement Benefits Accounting includes deferred tax liabilities related to gains on securities contributed to employee retirement benefit trust (¥(27.0) billion, ¥(27.0) billion and ¥(34.6) billion as of September 30, 2007, March 31, 2007 and September 30, 2006 respectively). |
<Explanation>
Future taxable income was estimated using more conservative assumptions than those used in the Business Plan, etc. Details of the respective estimated five-year totals are as follows:
Gross Profits: ¥2,692.4 billion [1]
General and Administrative Expenses: ¥1,258.7 billion [2]
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥1,433.7 billion [3]
Income before Income Taxes (including Credit-related costs, etc.): ¥1,163.7 billion [5]
Taxable Income before Current Temporary Differences: ¥1,088.0 billion [7].
On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans, Tax Losses Carried Forward and others amount to ¥1,381.8 billion [17]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥(864.3) billion [18] was provided, therefore after offsetting Deferred Tax Liabilities of ¥(612.4) billion [25], ¥94.9 billion [26] of Net Deferred Tax Liabilities was recorded on the balance sheet.
3-41
Mizuho Financial Group, Inc.
Mizuho Trust & Banking
1. Estimate of future taxable income
| (Billions of yen) (Reference) |
|||||||||||||
| Total amount for five years (from October 1, 2007 to September 30, 2012) |
First Half of Fiscal 2007 |
||||||||||||
| Gross Profits |
1 | 699.5 | 80.1 | ||||||||||
| General and Administrative Expenses |
2 | (438.7 | ) | (43.9 | ) | ||||||||
| Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) |
3 | 260.8 | 36.2 | ||||||||||
| Credit-related Costs |
4 | (43.3 | ) | 21.7 | |||||||||
| Income before Income Taxes |
5 | 167.3 | 58.2 | ||||||||||
| Tax Adjustments *1 |
6 | 5.0 | |||||||||||
| Taxable Income before Current Temporary Differences *2 |
7 | 172.3 | |||||||||||
| Effective Statutory tax rate |
8 | 40.60 | % | ||||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [ 7 x 8 ] |
9 | 69.9 | è | Equal to Line 27 | |||||||||
| *1. | Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others. |
| *2. | Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2007. |
2. Breakdown of Deferred Tax Assets
| (Billions of yen) | |||||||||||||||||
| As of September 30, 2007 |
Change from March 31, 2007 |
Change from September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2006 |
|||||||||||||
| Reserves for Possible Losses on Loans |
10 | 6.1 | (7.5 | ) | (2.9 | ) | 13.6 | 9.0 | |||||||||
| Devaluation of Securities |
11 | 60.4 | 0.9 | (3.1 | ) | 59.5 | 63.6 | ||||||||||
| Net Unrealized Losses on Other Securities |
12 | 6.5 | 2.8 | 6.5 | 3.6 | — | |||||||||||
| Reserve for Employee Retirement Benefits |
13 | 7.1 | (0.7 | ) | (0.7 | ) | 7.9 | 7.9 | |||||||||
| Net Deferred Hedge Losses |
14 | — | — | (0.0 | ) | — | 0.0 | ||||||||||
| Tax Losses Carried Forward |
15 | 142.7 | (14.3 | ) | (32.1 | ) | 157.0 | 174.9 | |||||||||
| Other |
16 | 19.3 | (0.2 | ) | 0.7 | 19.6 | 18.5 | ||||||||||
| Total Deferred Tax Assets |
17 | 242.4 | (19.0 | ) | (31.7 | ) | 261.4 | 274.2 | |||||||||
| Valuation Allowance |
18 | (172.4 | ) | 16.6 | 32.9 | (189.0 | ) | (205.4 | ) | ||||||||
| Sub Total [ 17 + 18 ] |
19 | 69.9 | (2.3 | ) | 1.1 | 72.3 | 68.7 | ||||||||||
| Amount related to Retirement Benefits Accounting * |
20 | (6.2 | ) | — | — | (6.2 | ) | (6.2 | ) | ||||||||
| Unrealized Profits related to Lease Transactions |
21 | — | — | — | — | — | |||||||||||
| Net Unrealized Gains on Other Securities |
22 | (36.8 | ) | 8.4 | 33.8 | (45.3 | ) | (70.7 | ) | ||||||||
| Net Deferred Hedge Gains |
23 | (0.2 | ) | 0.3 | (0.2 | ) | (0.5 | ) | — | ||||||||
| Other |
24 | (0.9 | ) | 0.5 | (0.9 | ) | (1.4 | ) | — | ||||||||
| Total Deferred Tax Liabilities |
25 | (44.2 | ) | 9.2 | 32.6 | (53.5 | ) | (76.9 | ) | ||||||||
| Net Deferred Tax Assets (Liabilities) [17 + 18 + 25] |
26 | 25.7 | 6.8 | 33.8 | 18.8 | (8.1 | ) | ||||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [9] |
27 | 69.9 | 2.9 | 7.4 | 67.0 | 62.5 | |||||||||||
| Net Unrealized Gains on Other Securities [22] |
28 | (36.8 | ) | 8.4 | 33.8 | (45.3 | ) | (70.7 | ) | ||||||||
| Net Deferred Hedge Losses [14] |
29 | — | — | (0.0 | ) | — | 0.0 | ||||||||||
| Net Deferred Hedge Gains [23] |
30 | (0.2 | ) | 0.3 | (0.2 | ) | (0.5 | ) | — | ||||||||
| Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others) |
31 | (7.1 | ) | (4.8 | ) | (7.1 | ) | (2.3 | ) | (0.0 | ) | ||||||
| * | Amount related to Retirement Benefits Accounting is deferred tax liabilities related to gains on securities contributed to employee retirement benefit trust. |
<Explanation>
Future taxable income was estimated using more conservative assumptions than those used in the Business Plan, etc. Details of the respective estimated five-year totals are as follows:
Gross Profits: ¥699.5 billion [1]
General and Administrative Expenses: ¥438.7 billion [2]
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥260.8 billion [3]
Income before Income Taxes (including Credit-related costs, etc.): ¥167.3 billion [5]
Taxable Income before Current Temporary Differences: ¥172.3 billion [7].
On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans, Tax Losses Carried Forward and others amount to ¥242.4 billion [17]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥(172.4) billion [18] was provided, therefore after offsetting Deferred Tax Liabilities of ¥(44.2) billion [25], ¥25.7 billion [26] of Net Deferred Tax Assets was recorded on the balance sheet.
3-42
Mizuho Financial Group, Inc.
Aggregated Figures of the 3 Banks
1. Estimate of future taxable income
| (Billions of yen) (Reference) |
|||||||||||||
| Total amount for five years (from October 1, 2007 |
First Half of Fiscal 2007 |
||||||||||||
| Gross Profits |
1 | 8,155.1 | 849.0 | ||||||||||
| General and Administrative Expenses |
2 | (4,318.3 | ) | (434.7 | ) | ||||||||
| Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) |
3 | 3,836.8 | 414.2 | ||||||||||
| Credit-related Costs |
4 | (793.3 | ) | (53.8 | ) | ||||||||
| Income before Income Taxes |
5 | 2,883.3 | 375.9 | ||||||||||
| Tax Adjustments *1 |
6 | 109.6 | |||||||||||
| Taxable Income before Current Temporary Differences *2 |
7 | 2,992.9 | |||||||||||
| Effective Statutory tax rate |
8 | 40.60%~40.65 | % | ||||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [ 7 x 8 ] |
9 | 1,215.6 | è | Equal to Line 27 | |||||||||
| *1. | Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others. |
| *2. | Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2007. |
2. Breakdown of Deferred Tax Assets
| (Billions of yen) | |||||||||||||||||
| As of September 30, 2007 |
Change from March 31, |
Change from September 30, |
As of March 31, |
As of September 30, |
|||||||||||||
| Reserves for Possible Losses on Loans |
10 | 320.8 | (8.7 | ) | 9.2 | 329.6 | 311.6 | ||||||||||
| Devaluation of Securities |
11 | 534.2 | 20.2 | 140.1 | 514.0 | 394.1 | |||||||||||
| Net Unrealized Losses on Other Securities |
12 | 26.1 | 22.5 | 26.1 | 3.6 | — | |||||||||||
| Reserve for Employee Retirement Benefits |
13 | 7.1 | (0.7 | ) | (0.7 | ) | 7.9 | 7.9 | |||||||||
| Net Deferred Hedge Losses |
14 | 68.3 | (16.6 | ) | (10.5 | ) | 85.0 | 78.9 | |||||||||
| Tax Losses Carried Forward |
15 | 1,332.6 | (155.9 | ) | (329.9 | ) | 1,488.6 | 1,662.6 | |||||||||
| Other |
16 | 356.4 | 13.3 | (38.6 | ) | 343.0 | 395.0 | ||||||||||
| Total Deferred Tax Assets |
17 | 2,645.9 | (126.0 | ) | (204.4 | ) | 2,771.9 | 2,850.3 | |||||||||
| Valuation Allowance |
18 | (1,393.6 | ) | 70.6 | 149.0 | (1,464.3 | ) | (1,542.7 | ) | ||||||||
| Sub Total [ 17 + 18 ] |
19 | 1,252.2 | (55.3 | ) | (55.3 | ) | 1,307.6 | 1,307.6 | |||||||||
| Amount related to Retirement Benefits Accounting * |
20 | (210.7 | ) | (14.3 | ) | 39.8 | (196.3 | ) | (250.5 | ) | |||||||
| Unrealized Profits related to Lease Transactions |
21 | — | — | — | — | — | |||||||||||
| Net Unrealized Gains on Other Securities |
22 | (629.6 | ) | 192.2 | 173.6 | (821.9 | ) | (803.3 | ) | ||||||||
| Net Deferred Hedge Gains |
23 | (0.2 | ) | 0.3 | (0.2 | ) | (0.5 | ) | — | ||||||||
| Other |
24 | (113.7 | ) | 5.0 | (75.9 | ) | (118.7 | ) | (37.7 | ) | |||||||
| Total Deferred Tax Liabilities |
25 | (954.3 | ) | 183.3 | 137.3 | (1,137.6 | ) | (1,091.6 | ) | ||||||||
| Net Deferred Tax Assets (Liabilities) [17 + 18 + 25] |
26 | 297.9 | 127.9 | 81.9 | 169.9 | 215.9 | |||||||||||
| Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [9] |
27 | 1,215.6 | 117.5 | 223.8 | 1,098.1 | 991.7 | |||||||||||
| Net Unrealized Gains on Other Securities [22] |
28 | (629.6 | ) | 192.2 | 173.6 | (821.9 | ) | (803.3 | ) | ||||||||
| Net Deferred Hedge Losses [14] |
29 | 68.3 | (16.6 | ) | (10.5 | ) | 85.0 | 78.9 | |||||||||
| Net Deferred Hedge Gains [23] |
30 | (0.2 | ) | 0.3 | (0.2 | ) | (0.5 | ) | — | ||||||||
| Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others) |
31 | (356.2 | ) | (165.4 | ) | (304.8 | ) | (190.7 | ) | (51.4 | ) | ||||||
| * | Amount related to Retirement Benefits Accounting includes deferred tax liabilities related to gains on securities contributed to employee retirement benefit trust (¥(120.6) billion, ¥(120.6) billion and ¥(138.0) billion as of September 30,2007, March 31, 2007 and September 30, 2006, respectively). |
3-43
Mizuho Financial Group, Inc.
IV. OTHERS
1. Breakdown of Deposits (Domestic Offices)
Non-Consolidated
| (Billions of yen) | ||||||||||||
| As of September 30, 2007 |
Change from March 31, 2007 |
Change from September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2006 | ||||||||
| Aggregated Figures of the 3 Banks |
||||||||||||
| Deposits |
64,445.0 | (1,086.6 | ) | 280.5 | 65,531.7 | 64,164.4 | ||||||
| Individual Deposits |
33,118.0 | 695.0 | 1,285.5 | 32,422.9 | 31,832.4 | |||||||
| Corporate Deposits |
26,337.7 | (727.3 | ) | (1,315.8 | ) | 27,065.1 | 27,653.5 | |||||
| Financial/Government Institutions |
4,989.3 | (1,054.2 | ) | 310.7 | 6,043.6 | 4,678.5 | ||||||
| Mizuho Bank |
||||||||||||
| Deposits |
51,961.0 | (964.4 | ) | 1,171.3 | 52,925.5 | 50,789.7 | ||||||
| Individual Deposits |
31,279.7 | 674.8 | 1,288.0 | 30,604.9 | 29,991.6 | |||||||
| Corporate Deposits |
17,999.1 | (644.2 | ) | (248.4 | ) | 18,643.4 | 18,247.6 | |||||
| Financial/Government Institutions |
2,682.1 | (995.0 | ) | 131.7 | 3,677.1 | 2,550.4 | ||||||
| Mizuho Corporate Bank |
||||||||||||
| Deposits |
9,508.2 | (287.3 | ) | (1,094.3 | ) | 9,795.5 | 10,602.6 | |||||
| Individual Deposits |
5.3 | (3.0 | ) | (2.4 | ) | 8.3 | 7.8 | |||||
| Corporate Deposits |
7,627.2 | (113.2 | ) | (1,130.1 | ) | 7,740.4 | 8,757.3 | |||||
| Financial/Government Institutions |
1,875.5 | (171.0 | ) | 38.2 | 2,046.6 | 1,837.3 | ||||||
| Mizuho Trust & Banking |
||||||||||||
| Deposits |
2,975.7 | 165.0 | 203.6 | 2,810.6 | 2,772.1 | |||||||
| Individual Deposits |
1,832.8 | 23.1 | (0.0 | ) | 1,809.6 | 1,832.9 | ||||||
| Corporate Deposits |
711.3 | 30.1 | 62.8 | 681.2 | 648.5 | |||||||
| Financial/Government Institutions |
431.5 | 111.8 | 140.8 | 319.7 | 290.7 | |||||||
| * | Above figures are before adjustment of transit accounts for inter-office transactions, and do not include deposits booked at overseas offices and offshore deposits. |
3-44
Mizuho Financial Group, Inc.
2. Number of Directors and Employees
| * | Figures are based on the information in Yuka Shoken Hokokusho. |
Mizuho Financial Group, Inc. (Non-Consolidated)
| As of September 30, 2007 |
Change from March 31, 2007 |
Change from September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2006 | ||||||||
| Members of the Board of Directors and Auditors |
14 | — | — | 14 | 14 | |||||||
| Executive Officers (excluding those doubling as directors) |
4 | (2 | ) | (2 | ) | 6 | 6 | |||||
| Employees (excluding Executive Officers) |
258 | — | — | 258 | 258 | |||||||
| ________________ |
||||||||||||
| * 3 members of the Board of Directors and Auditors double as directors of the banking subsidiaries. | ||||||||||||
| Non-Consolidated |
||||||||||||
| As of September 30, 2007 |
Change from March 31, 2007 |
Change from September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2006 | ||||||||
| Aggregated Figures of the 3 Banks |
||||||||||||
| Members of the Board of Directors and Auditors |
32 | — | (1 | ) | 32 | 33 | ||||||
| Executive Officers (excluding those doubling as directors) |
91 | 4 | 3 | 87 | 88 | |||||||
| Employees (excluding Executive Officers) |
28,450 | 1,237 | 796 | 27,213 | 27,654 | |||||||
| Mizuho Bank |
||||||||||||
| Members of the Board of Directors and Auditors |
11 | — | — | 11 | 11 | |||||||
| Executive Officers (excluding those doubling as directors) |
33 | 5 | 4 | 28 | 29 | |||||||
| Employees (excluding Executive Officers) |
17,875 | 1,475 | 954 | 16,400 | 16,921 | |||||||
| Mizuho Corporate Bank |
||||||||||||
| Members of the Board of Directors and Auditors |
10 | — | (1 | ) | 10 | 11 | ||||||
| Executive Officers (excluding those doubling as directors) |
39 | (2 | ) | (2 | ) | 41 | 41 | |||||
| Employees (excluding Executive Officers) |
7,568 | (444 | ) | (305 | ) | 8,012 | 7,873 | |||||
| Mizuho Trust & Banking |
||||||||||||
| Members of the Board of Directors and Auditors |
11 | — | — | 11 | 11 | |||||||
| Executive Officers (excluding those doubling as directors) |
19 | 1 | 1 | 18 | 18 | |||||||
| Employees (excluding Executive Officers) |
3,007 | 206 | 147 | 2,801 | 2,860 | |||||||
3-45
Mizuho Financial Group, Inc.
3. Number of Branches and Offices
Non-Consolidated
| As of September 30, 2007 |
Change from March 31, 2007 |
Change from September 30, 2006 |
As of March 31, 2007 |
As of September 30, 2006 | ||||||||
| Aggregated Figures of the 3 Banks | ||||||||||||
| Head Offices and Domestic Branches |
424 | 10 | 21 | 414 | 403 | |||||||
| Overseas Branches |
20 | (4 | ) | (3 | ) | 24 | 23 | |||||
| Domestic Sub-Branches |
49 | (8 | ) | (22 | ) | 57 | 71 | |||||
| Overseas Sub-Branches |
8 | 2 | 3 | 6 | 5 | |||||||
| Overseas Representative Offices |
9 | (2 | ) | (3 | ) | 11 | 12 | |||||
| __________ * Head Offices and Domestic Branches do not include in-store branches (3), branches and offices for remittance purposes only (33), branches and offices to maintain shared ATMs only (1), internet branches (1) and pension plan advisory offices (1). | ||||||||||||
| Mizuho Bank |
||||||||||||
| Head Office and Domestic Branches |
371 | 10 | 23 | 361 | 348 | |||||||
| Overseas Branches |
— | — | — | — | — | |||||||
| Domestic Sub-Branches |
47 | (8 | ) | (23 | ) | 55 | 70 | |||||
| Overseas Sub-Branches |
— | — | — | — | — | |||||||
| Overseas Representative Offices |
— | — | — | — | — | |||||||
| __________ * Head Offices and Domestic Branches do not include in-store branches (3), branches and offices for remittance purposes only (16), branches and offices to maintain shared ATMs only (1), internet branches (1) and pension plan advisory offices (1). | ||||||||||||
| Mizuho Corporate Bank |
||||||||||||
| Head Office and Domestic Branches |
18 | — | — | 18 | 18 | |||||||
| Overseas Branches |
20 | (4 | ) | (3 | ) | 24 | 23 | |||||
| Domestic Sub-Branches |
— | — | — | — | — | |||||||
| Overseas Sub-Branches |
8 | 2 | 3 | 6 | 5 | |||||||
| Overseas Representative Offices |
8 | (2 | ) | (3 | ) | 10 | 11 | |||||
| __________ * Head Office and Domestic Branches do not include branches and offices for remittance purposes only (17). | ||||||||||||
| Mizuho Trust & Banking |
||||||||||||
| Head Office and Domestic Branches |
35 | — | (2 | ) | 35 | 37 | ||||||
| Overseas Branches |
— | — | — | — | — | |||||||
| Domestic Sub-Branches |
2 | — | 1 | 2 | 1 | |||||||
| Overseas Sub-Branches |
— | — | — | — | — | |||||||
| Overseas Representative Offices |
1 | — | — | 1 | 1 | |||||||
3-46
Mizuho Financial Group, Inc.
4. Earnings Estimates for Fiscal 2007
Consolidated
| (Billions of yen) | ||
| Fiscal 2007 | ||
| Ordinary Income |
4,800.0 | |
| Ordinary Profits |
830.0 | |
| Net Income |
650.0 |
(Reference)
Mizuho Bank, Mizuho Corporate Bank, Mizuho Trust & Banking
Aggregated Figures of the 3 Banks (Non-consolidated)
| (Billions of yen) | ||||||||||
| Fiscal 2007 Aggregated Figures |
MHBK | MHCB | MHTB | |||||||
| Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) |
841.0 | 455.0 | 300.0 | 86.0 | ||||||
| Ordinary Profits |
800.0 | 310.0 | 410.0 | 80.0 | ||||||
| Net Income |
715.0 | 280.0 | 350.0 | 85.0 | ||||||
| Credit-related Costs |
(93.0 | ) | (130.0 | ) | 20.0 | 17.0 | ||||
| * Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) of MHTB excludes the amounts of Credit-related Costs for Trust Accounts. | ||||||||||
Mizuho Financial Group, Inc. (Non-Consolidated)
| (Billions of yen) | ||
| Fiscal 2007 | ||
| Operating Income |
810.0 | |
| Operating Profits |
790.0 | |
| Ordinary Profits |
770.0 | |
| Net Income |
810.0 |
3-47
Mizuho Bank, Ltd.
(Attachments)
COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)
OF MIZUHO BANK
| Millions of yen |
||||||||||||||||||||
| As of September 30, 2007 (A) |
As of September 30, 2006 (B) |
Change (A) - (B) |
As of March 31, 2007 |
Change (A) - (C) |
||||||||||||||||
| Assets |
||||||||||||||||||||
| Cash and Due from Banks |
¥ | 2,608,578 | ¥ | 2,387,123 | ¥ | 221,454 | ¥ | 2,838,104 | ¥ | (229,525 | ) | |||||||||
| Call Loans |
4,490,000 | 2,030,000 | 2,460,000 | 4,340,000 | 150,000 | |||||||||||||||
| Guarantee Deposits Paid under Securities Borrowing Transactions |
1,577,979 | 2,483,516 | (905,536 | ) | 2,634,880 | (1,056,900 | ) | |||||||||||||
| Other Debt Purchased |
2,257,304 | 1,963,067 | 294,237 | 2,313,455 | (56,150 | ) | ||||||||||||||
| Trading Assets |
1,066,775 | 1,312,629 | (245,854 | ) | 839,706 | 227,069 | ||||||||||||||
| Money Held in Trust |
685 | 663 | 21 | 686 | (0 | ) | ||||||||||||||
| Securities |
16,756,510 | 17,980,397 | (1,223,887 | ) | 15,226,739 | 1,529,770 | ||||||||||||||
| Loans and Bills Discounted |
33,519,576 | 34,179,684 | (660,107 | ) | 34,065,059 | (545,483 | ) | |||||||||||||
| Foreign Exchange Assets |
121,389 | 131,474 | (10,085 | ) | 131,895 | (10,506 | ) | |||||||||||||
| Other Assets |
2,487,016 | 2,716,470 | (229,454 | ) | 2,530,250 | (43,234 | ) | |||||||||||||
| Tangible Fixed Assets |
600,197 | 607,024 | (6,826 | ) | 603,955 | (3,757 | ) | |||||||||||||
| Intangible Fixed Assets |
122,359 | 110,318 | 12,040 | 119,882 | 2,476 | |||||||||||||||
| Deferred Debenture Charges |
3 | 57 | (53 | ) | 21 | (18 | ) | |||||||||||||
| Deferred Tax Assets |
367,243 | 334,297 | 32,945 | 332,168 | 35,074 | |||||||||||||||
| Customers’ Liabilities for Acceptances and Guarantees |
1,245,969 | 2,823,996 | (1,578,026 | ) | 1,322,242 | (76,273 | ) | |||||||||||||
| Reserves for Possible Losses on Loans |
(368,256 | ) | (299,087 | ) | (69,168 | ) | (340,828 | ) | (27,428 | ) | ||||||||||
| Reserve for Possible Losses on Investments |
(84,063 | ) | (83,501 | ) | (561 | ) | (83,430 | ) | (632 | ) | ||||||||||
| Total Assets |
¥ | 66,769,270 | ¥ | 68,678,133 | ¥ | (1,908,863 | ) | ¥ | 66,874,790 | ¥ | (105,520 | ) | ||||||||
| Liabilities |
||||||||||||||||||||
| Deposits |
¥ | 52,012,039 | ¥ | 50,834,799 | ¥ | 1,177,240 | ¥ | 53,118,788 | ¥ | (1,106,749 | ) | |||||||||
| Negotiable Certificates of Deposit |
1,078,030 | 1,831,330 | (753,300 | ) | 1,228,710 | (150,680 | ) | |||||||||||||
| Debentures |
1,256,794 | 1,817,230 | (560,435 | ) | 1,564,366 | (307,571 | ) | |||||||||||||
| Call Money |
1,359,200 | 1,632,300 | (273,100 | ) | 1,509,400 | (150,200 | ) | |||||||||||||
| Payables under Repurchase Agreements |
199,338 | 228,449 | (29,110 | ) | 2,999 | 196,339 | ||||||||||||||
| Guarantee Deposits Received under Securities Lending Transactions |
2,066,415 | 1,551,927 | 514,488 | 1,499,943 | 566,471 | |||||||||||||||
| Trading Liabilities |
207,374 | 276,430 | (69,055 | ) | 231,277 | (23,902 | ) | |||||||||||||
| Borrowed Money |
1,175,303 | 1,714,608 | (539,304 | ) | 1,177,230 | (1,927 | ) | |||||||||||||
| Foreign Exchange Liabilities |
17,146 | 15,598 | 1,548 | 13,703 | 3,443 | |||||||||||||||
| Bonds and Notes |
592,500 | 415,500 | 177,000 | 522,500 | 70,000 | |||||||||||||||
| Other Liabilities |
3,574,533 | 3,506,902 | 67,631 | 2,509,448 | 1,065,085 | |||||||||||||||
| Reserve for Bonus Payments |
8,455 | 7,111 | 1,343 | 7,644 | 810 | |||||||||||||||
| Reserve for Director and Corporate Auditor Retirement Benefits |
1,613 | — | 1,613 | 1,676 | (62 | ) | ||||||||||||||
| Reserve for Frequent Users Services |
6,196 | 1,250 | 4,945 | 3,773 | 2,422 | |||||||||||||||
| Reserve for Reimbursement of Deposits |
8,605 | — | 8,605 | — | 8,605 | |||||||||||||||
| Deferred Tax Liabilities for Revaluation Reserve for Land |
78,662 | 86,707 | (8,044 | ) | 79,797 | (1,134 | ) | |||||||||||||
| Acceptances and Guarantees |
1,245,969 | 2,823,996 | (1,578,026 | ) | 1,322,242 | (76,273 | ) | |||||||||||||
| Total Liabilities |
64,888,179 | 66,744,143 | (1,855,963 | ) | 64,793,501 | 94,677 | ||||||||||||||
| Net Assets |
||||||||||||||||||||
| Common Stock and Preferred Stock |
650,000 | 650,000 | — | 650,000 | — | |||||||||||||||
| Capital Surplus |
762,345 | 762,345 | — | 762,345 | — | |||||||||||||||
| Capital Reserve |
762,345 | 762,345 | — | 762,345 | — | |||||||||||||||
| Other Capital Surplus |
— | — | — | — | — | |||||||||||||||
| Retained Earnings |
266,343 | 272,862 | (6,519 | ) | 363,825 | (97,482 | ) | |||||||||||||
| Appropriated Reserve |
— | — | — | — | — | |||||||||||||||
| Other Retained Earnings |
266,343 | 272,862 | (6,519 | ) | 363,825 | (97,482 | ) | |||||||||||||
| Retained Earnings Brought Forward |
266,343 | 272,862 | (6,519 | ) | 363,825 | (97,482 | ) | |||||||||||||
| Treasury Stock |
— | — | — | — | — | |||||||||||||||
| Total Shareholders’ Equity |
1,678,688 | 1,685,208 | (6,519 | ) | 1,776,171 | (97,482 | ) | |||||||||||||
| Net Unrealized Gains on Other Securities, net of Taxes |
143,689 | 193,755 | (50,066 | ) | 251,748 | (108,059 | ) | |||||||||||||
| Net Deferred Hedge Losses, net of Taxes |
(52,059 | ) | (67,460 | ) | 15,400 | (59,027 | ) | 6,968 | ||||||||||||
| Revaluation Reserve for Land, net of Taxes |
110,771 | 122,486 | (11,714 | ) | 112,397 | (1,625 | ) | |||||||||||||
| Total Valuation and Translation Adjustments |
202,402 | 248,781 | (46,379 | ) | 305,118 | (102,716 | ) | |||||||||||||
| Total Net Assets |
1,881,091 | 1,933,990 | (52,899 | ) | 2,081,289 | (200,198 | ) | |||||||||||||
| Total Liabilities and Net Assets |
¥ | 66,769,270 | ¥ | 68,678,133 | ¥ | (1,908,863 | ) | ¥ | 66,874,790 | ¥ | (105,520 | ) | ||||||||
3-48
Mizuho Bank, Ltd.
COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME (selected items)
OF MIZUHO BANK
| Millions of yen | |||||||||||||
| For the six months ended September 30, 2007 (A) |
For the six months ended September 30, 2006 (B) |
Change (A) - (B) |
For the fiscal year ended March 31, 2007 | ||||||||||
| Ordinary Income |
¥ | 687,826 | ¥ | 601,235 | ¥ | 86,590 | ¥ | 1,264,218 | |||||
| Interest Income |
439,454 | 349,454 | 89,999 | 747,368 | |||||||||
| Interest on Loans and Bills Discounted |
306,557 | 256,851 | 49,705 | 539,736 | |||||||||
| Interest and Dividends on Securities |
83,772 | 62,694 | 21,078 | 137,793 | |||||||||
| Fee and Commission Income |
123,859 | 126,373 | (2,514 | ) | 262,325 | ||||||||
| Trading Income |
30,206 | 18,858 | 11,348 | 36,919 | |||||||||
| Other Operating Income |
55,646 | 84,097 | (28,451 | ) | 167,984 | ||||||||
| Other Ordinary Income |
38,659 | 22,451 | 16,208 | 49,620 | |||||||||
| Ordinary Expenses |
591,844 | 391,577 | 200,267 | 1,085,125 | |||||||||
| Interest Expenses |
138,607 | 55,275 | 83,331 | 153,538 | |||||||||
| Interest on Deposits |
74,602 | 28,525 | 46,077 | 79,750 | |||||||||
| Interest on Debentures |
1,581 | 1,098 | 483 | 2,545 | |||||||||
| Fee and Commission Expenses |
28,736 | 26,409 | 2,326 | 45,630 | |||||||||
| Trading Expenses |
4 | 848 | (844 | ) | 1,187 | ||||||||
| Other Operating Expenses |
14,885 | 19,193 | (4,308 | ) | 35,717 | ||||||||
| General and Administrative Expenses |
278,349 | 265,881 | 12,467 | 536,875 | |||||||||
| Other Ordinary Expenses |
131,261 | 23,967 | 107,294 | 312,175 | |||||||||
| Ordinary Profits |
95,981 | 209,658 | (113,676 | ) | 179,092 | ||||||||
| Extraordinary Gains |
13,656 | 14,587 | (931 | ) | 121,850 | ||||||||
| Extraordinary Losses |
3,951 | 14,788 | (10,837 | ) | 16,662 | ||||||||
| Income before Income Taxes |
105,687 | 209,457 | (103,770 | ) | 284,280 | ||||||||
| Income Taxes: |
|||||||||||||
| Current |
243 | 260 | (16 | ) | 500 | ||||||||
| Deferred |
4,547 | 83,781 | (79,234 | ) | 77,490 | ||||||||
| Net Income |
¥ | 100,896 | ¥ | 125,415 | ¥ | (24,519 | ) | ¥ | 206,289 | ||||
3-49
Mizuho Bank, Ltd.
NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
OF MIZUHO BANK
| Millions of yen | |||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ Equity | Valuation and Translation Adjustments | Total Net Assets |
|||||||||||||||||||||||||||||||||||||||||||||
| Common Stock and Preferred Stock |
Capital Surplus | Retained Earnings | Treasury Stock |
Total Shareholders’ Equity |
Net Unrealized Gains on Other Securities, net of Taxes |
Net Deferred Hedge Losses, net of Taxes |
Revaluation Reserve for Land, net of Taxes |
Total Valuation and Translation Adjustments |
|||||||||||||||||||||||||||||||||||||||
| Capital Reserve |
Other Capital Surplus |
Total Capital Surplus |
Appropriated Reserve |
Other Retained Earnings |
Total Retained Earnings |
||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings Brought Forward |
|||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2007 |
¥ | 650,000 | ¥ | 762,345 | — | ¥ | 762,345 | — | ¥ | 363,825 | ¥ | 363,825 | — | ¥ | 1,776,171 | ¥ | 251,748 | ¥ | (59,027 | ) | ¥ | 112,397 | ¥ | 305,118 | ¥ | 2,081,289 | |||||||||||||||||||||
| Changes during the period |
|||||||||||||||||||||||||||||||||||||||||||||||
| Cash Dividends |
— | — | — | — | — | (200,003 | ) | (200,003 | ) | — | (200,003 | ) | — | — | — | — | (200,003 | ) | |||||||||||||||||||||||||||||
| Net Income |
— | — | — | — | — | 100,896 | 100,896 | — | 100,896 | — | — | — | — | 100,896 | |||||||||||||||||||||||||||||||||
| Transfer from Revaluation Reserve for Land, net of Taxes |
— | — | — | — | — | 1,625 | 1,625 | — | 1,625 | — | — | — | — | 1,625 | |||||||||||||||||||||||||||||||||
| Net Changes in Items other than Shareholders’ Equity |
— | — | — | — | — | — | — | — | — | (108,059 | ) | 6,968 | (1,625 | ) | (102,716 | ) | (102,716 | ) | |||||||||||||||||||||||||||||
| Total Changes during the period |
— | — | — | — | — | (97,482 | ) | (97,482 | ) | — | (97,482 | ) | (108,059 | ) | 6,968 | (1,625 | ) | (102,716 | ) | (200,198 | ) | ||||||||||||||||||||||||||
| Balance as of September 30, 2007 |
¥ | 650,000 | ¥ | 762,345 | — | ¥ | 762,345 | — | ¥ | 266,343 | ¥ | 266,343 | — | ¥ | 1,678,688 | ¥ | 143,689 | ¥ | (52,059 | ) | ¥ | 110,771 | ¥ | 202,402 | ¥ | 1,881,091 | |||||||||||||||||||||
3-50
Mizuho Corporate Bank, Ltd.
COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)
OF MIZUHO CORPORATE BANK
| Millions of yen | ||||||||||||||||||||
| As of September 30, 2007 (A) |
As of September 30, 2006 (B) |
Change (A) - (B) |
As of March 31, 2007 (C) |
Change (A) - (C) |
||||||||||||||||
| Assets |
||||||||||||||||||||
| Cash and Due from Banks |
¥ | 1,666,957 | ¥ | 2,112,154 | ¥ | (445,197 | ) | ¥ | 2,029,748 | ¥ | (362,791 | ) | ||||||||
| Call Loans |
292,767 | 384,959 | (92,192 | ) | 290,596 | 2,171 | ||||||||||||||
| Receivables under Resale Agreements |
2,348,257 | 1,402,515 | 945,741 | 1,742,202 | 606,054 | |||||||||||||||
| Guarantee Deposits Paid under Securities Borrowing Transactions |
1,515,841 | 1,158,443 | 357,398 | 1,614,829 | (98,988 | ) | ||||||||||||||
| Other Debt Purchased |
215,445 | 212,813 | 2,632 | 204,962 | 10,483 | |||||||||||||||
| Trading Assets |
3,030,709 | 3,157,435 | (126,726 | ) | 2,559,277 | 471,431 | ||||||||||||||
| Money Held in Trust |
2,024 | 3,950 | (1,925 | ) | 2,362 | (337 | ) | |||||||||||||
| Securities |
17,877,411 | 17,774,802 | 102,609 | 19,457,137 | (1,579,725 | ) | ||||||||||||||
| Loans and Bills Discounted |
29,095,862 | 28,099,488 | 996,373 | 28,734,856 | 361,005 | |||||||||||||||
| Foreign Exchange Assets |
613,435 | 636,116 | (22,680 | ) | 752,828 | (139,392 | ) | |||||||||||||
| Derivatives other than for Trading |
3,781,063 | 3,425,903 | 355,160 | 3,633,362 | 147,701 | |||||||||||||||
| Other Assets |
1,417,642 | 1,450,876 | (33,233 | ) | 1,180,165 | 237,477 | ||||||||||||||
| Tangible Fixed Assets |
121,943 | 121,906 | 37 | 122,416 | (473 | ) | ||||||||||||||
| Intangible Fixed Assets |
69,550 | 62,803 | 6,746 | 67,497 | 2,052 | |||||||||||||||
| Deferred Debenture Charges |
0 | 0 | (0 | ) | 0 | (0 | ) | |||||||||||||
| Customers’ Liabilities for Acceptances and Guarantees |
4,495,407 | 3,722,407 | 772,999 | 4,072,678 | 422,728 | |||||||||||||||
| Reserves for Possible Losses on Loans |
(284,208 | ) | (316,192 | ) | 31,984 | (353,347 | ) | 69,139 | ||||||||||||
| Reserve for Possible Losses on Investments |
(65 | ) | (958 | ) | 892 | (100 | ) | 34 | ||||||||||||
| Total Assets |
¥ | 66,260,046 | ¥ | 63,409,424 | ¥ | 2,850,621 | ¥ | 66,111,474 | ¥ | 148,572 | ||||||||||
| Liabilities |
||||||||||||||||||||
| Deposits |
¥ | 19,179,872 | ¥ | 18,852,054 | ¥ | 327,817 | ¥ | 19,257,823 | ¥ | (77,950 | ) | |||||||||
| Negotiable Certificates of Deposit |
7,395,832 | 7,694,686 | (298,854 | ) | 7,369,439 | 26,392 | ||||||||||||||
| Debentures |
2,689,560 | 3,795,920 | (1,106,360 | ) | 3,203,020 | (513,460 | ) | |||||||||||||
| Call Money |
8,965,344 | 6,726,155 | 2,239,189 | 8,811,369 | 153,974 | |||||||||||||||
| Payables under Repurchase Agreements |
5,743,167 | 5,654,790 | 88,377 | 6,072,047 | (328,879 | ) | ||||||||||||||
| Guarantee Deposits Received under Securities Lending Transactions |
979,792 | 2,172,289 | (1,192,496 | ) | 1,233,785 | (253,993 | ) | |||||||||||||
| Trading Liabilities |
2,299,708 | 1,972,850 | 326,858 | 1,922,795 | 376,913 | |||||||||||||||
| Borrowed Money |
4,404,671 | 3,909,729 | 494,942 | 4,424,227 | (19,556 | ) | ||||||||||||||
| Foreign Exchange Liabilities |
196,594 | 209,219 | (12,625 | ) | 356,761 | (160,167 | ) | |||||||||||||
| Short-term Bonds |
602,000 | 343,800 | 258,200 | 402,600 | 199,400 | |||||||||||||||
| Bonds and Notes |
1,059,554 | 444,664 | 614,889 | 738,809 | 320,744 | |||||||||||||||
| Derivatives other than for Trading |
3,997,010 | 3,560,634 | 436,375 | 3,901,709 | 95,301 | |||||||||||||||
| Other Liabilities |
845,730 | 1,042,246 | (196,516 | ) | 629,368 | 216,361 | ||||||||||||||
| Reserve for Bonus Payments |
3,120 | 2,509 | 610 | 2,751 | 368 | |||||||||||||||
| Reserve for Director and Corporate Auditor Retirement Benefits |
2,048 | — | 2,048 | 2,381 | (333 | ) | ||||||||||||||
| Reserve for Possible Losses on Sales of Loans |
23,468 | — | 23,468 | — | 23,468 | |||||||||||||||
| Reserve for Contingencies |
4,900 | 19,625 | (14,724 | ) | 1,376 | 3,524 | ||||||||||||||
| Deferred Tax Liabilities |
94,994 | 110,121 | (15,127 | ) | 180,984 | (85,990 | ) | |||||||||||||
| Deferred Tax Liabilities for Revaluation Reserve for Land |
27,140 | 27,529 | (388 | ) | 27,475 | (335 | ) | |||||||||||||
| Acceptances and Guarantees |
4,495,407 | 3,722,407 | 772,999 | 4,072,678 | 422,728 | |||||||||||||||
| Total Liabilities |
63,009,918 | 60,261,235 | 2,748,683 | 62,611,407 | 398,511 | |||||||||||||||
| Net Assets |
||||||||||||||||||||
| Common Stock and Preferred Stock |
1,070,965 | 1,070,965 | — | 1,070,965 | — | |||||||||||||||
| Capital Surplus |
330,334 | 330,334 | — | 330,334 | — | |||||||||||||||
| Capital Reserve |
330,334 | 330,334 | — | 330,334 | — | |||||||||||||||
| Other Capital Surplus |
— | — | — | — | — | |||||||||||||||
| Retained Earnings |
964,475 | 880,281 | 84,193 | 990,210 | (25,735 | ) | ||||||||||||||
| Appropriated Reserve |
70,700 | 30,700 | 40,000 | 30,700 | 40,000 | |||||||||||||||
| Other Retained Earnings |
893,774 | 849,581 | 44,192 | 959,510 | (65,736 | ) | ||||||||||||||
| Retained Earnings Brought Forward |
893,774 | 849,581 | 44,192 | 959,510 | (65,736 | ) | ||||||||||||||
| Treasury Stock |
— | — | — | — | — | |||||||||||||||
| Total Shareholders’ Equity |
2,365,774 | 2,281,580 | 84,193 | 2,391,510 | (25,735 | ) | ||||||||||||||
| Net Unrealized Gains on Other Securities, net of Taxes |
894,497 | 876,244 | 18,252 | 1,135,629 | (241,132 | ) | ||||||||||||||
| Net Deferred Hedge Losses, net of Taxes |
(47,873 | ) | (47,933 | ) | 60 | (65,292 | ) | 17,418 | ||||||||||||
| Revaluation Reserve for Land, net of Taxes |
37,729 | 38,297 | (567 | ) | 38,218 | (489 | ) | |||||||||||||
| Total Valuation and Translation Adjustments |
884,353 | 866,608 | 17,745 | 1,108,556 | (224,202 | ) | ||||||||||||||
| Total Net Assets |
3,250,127 | 3,148,189 | 101,938 | 3,500,066 | (249,938 | ) | ||||||||||||||
| Total Liabilities and Net Assets |
¥ | 66,260,046 | ¥ | 63,409,424 | ¥ | 2,850,621 | ¥ | 66,111,474 | ¥ | 148,572 | ||||||||||
3-51
Mizuho Corporate Bank, Ltd.
COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME (selected items)
OF MIZUHO CORPORATE BANK
| Millions of yen | |||||||||||||
| For the six months ended September 30, 2007 (A) |
For the six months September 30, 2006 |
Change (A) - (B) |
For the fiscal year ended | ||||||||||
| Ordinary Income |
¥ | 1,078,153 | ¥ | 809,531 | ¥ | 268,621 | ¥ | 1,804,217 | |||||
| Interest Income |
765,280 | 580,317 | 184,963 | 1,282,775 | |||||||||
| Interest on Loans and Bills Discounted |
380,883 | 293,482 | 87,401 | 646,336 | |||||||||
| Interest and Dividends on Securities |
266,105 | 184,328 | 81,777 | 421,362 | |||||||||
| Fee and Commission Income |
86,298 | 78,071 | 8,227 | 175,401 | |||||||||
| Trading Income |
73,841 | 33,502 | 40,338 | 96,961 | |||||||||
| Other Operating Income |
62,591 | 35,771 | 26,820 | 65,061 | |||||||||
| Other Ordinary Income |
90,141 | 81,868 | 8,272 | 184,018 | |||||||||
| Ordinary Expenses |
889,318 | 608,042 | 281,275 | 1,490,608 | |||||||||
| Interest Expenses |
615,219 | 423,107 | 192,111 | 976,269 | |||||||||
| Interest on Deposits |
231,933 | 180,772 | 51,161 | 399,333 | |||||||||
| Interest on Debentures |
11,587 | 17,404 | (5,817 | ) | 32,032 | ||||||||
| Fee and Commission Expenses |
20,201 | 19,467 | 734 | 39,836 | |||||||||
| Trading Expenses |
1,587 | 2,996 | (1,408 | ) | 4,160 | ||||||||
| Other Operating Expenses |
49,132 | 25,325 | 23,806 | 52,062 | |||||||||
| General and Administrative Expenses |
125,154 | 119,130 | 6,023 | 237,866 | |||||||||
| Other Ordinary Expenses |
78,022 | 18,015 | 60,007 | 180,412 | |||||||||
| Ordinary Profits |
188,835 | 201,488 | (12,653 | ) | 313,609 | ||||||||
| Extraordinary Gains |
23,718 | 98,891 | (75,173 | ) | 133,063 | ||||||||
| Extraordinary Losses |
537 | 1,202 | (665 | ) | 3,159 | ||||||||
| Income before Income Taxes |
212,015 | 299,177 | (87,162 | ) | 443,513 | ||||||||
| Income Taxes: |
|||||||||||||
| Current |
19 | 19 | (0 | ) | 38 | ||||||||
| Deferred |
38,216 | 85,877 | (47,660 | ) | 120,343 | ||||||||
| Net Income |
¥ | 173,779 | ¥ | 213,280 | ¥ | (39,500 | ) | ¥ | 323,131 | ||||
3-52
Mizuho Corporate Bank, Ltd.
NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
OF MIZUHO CORPORATE BANK
| Millions of yen |
||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ Equity | Valuation and Translation Adjustments | Total |
||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock and Preferred Stock |
Capital Surplus | Retained Earnings | Treasury Stock |
Total Shareholders’ Equity |
Net Unrealized Gains on Other Securities, net of Taxes |
Net Deferred Hedge Losses, net of Taxes |
Revaluation Reserve for Land, net of Taxes |
Total Valuation and Translation Adjustments |
||||||||||||||||||||||||||||||||||||||||
| Capital Reserve |
Other Capital Surplus |
Total Capital Surplus |
Appropriated Reserve |
Other Retained Earnings |
Total Retained Earnings |
|||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings Brought Forward |
||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2007 |
¥ | 1,070,965 | ¥ | 330,334 | — | ¥ | 330,334 | ¥ | 30,700 | ¥ | 959,510 | ¥ | 990,210 | — | ¥ | 2,391,510 | ¥ | 1,135,629 | ¥ | (65,292 | ) | ¥ | 38,218 | ¥ | 1,108,556 | ¥ | 3,500,066 | |||||||||||||||||||||
| Changes during the period |
||||||||||||||||||||||||||||||||||||||||||||||||
| Cash Dividends |
— | — | — | — | 40,000 | (240,005 | ) | (200,004 | ) | — | (200,004 | ) | — | — | — | — | (200,004 | ) | ||||||||||||||||||||||||||||||
| Net Income |
— | — | — | — | — | 173,779 | 173,779 | — | 173,779 | — | — | — | — | 173,779 | ||||||||||||||||||||||||||||||||||
| Transfer from Revaluation Reserve for Land, net of Taxes |
— | — | — | — | — | 489 | 489 | — | 489 | — | — | — | — | 489 | ||||||||||||||||||||||||||||||||||
| Net Changes in Items other than Shareholders’ Equity |
— | — | — | — | — | — | — | — | — | (241,132 | ) | 17,418 | (489 | ) | (224,202 | ) | (224,202 | ) | ||||||||||||||||||||||||||||||
| Total Changes during the period |
— | — | — | — | 40,000 | (65,736 | ) | (25,735 | ) | — | (25,735 | ) | (241,132 | ) | 17,418 | (489 | ) | (224,202 | ) | (249,938 | ) | |||||||||||||||||||||||||||
| Balance as of September 30, 2007 |
¥ | 1,070,965 | ¥ | 330,334 | — | ¥ | 330,334 | ¥ | 70,700 | ¥ | 893,774 | ¥ | 964,475 | — | ¥ | 2,365,774 | ¥ | 894,497 | ¥ | (47,873 | ) | ¥ | 37,729 | ¥ | 884,353 | ¥ | 3,250,127 | |||||||||||||||||||||
3-53