Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2015

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

Japan

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x    Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨    No  x

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

 

 

 


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 26, 2015
Mizuho Financial Group, Inc.
By:  

/s/ Junichi Shinbo

Name:   Junichi Shinbo
Title:   Managing Executive Officer / Group CFO


1. Interim Consolidated Financial Statements

(1) Consolidated Balance Sheet

 

     Millions of yen  
     As of
September 30, 2015
 

Assets

        

Cash and Due from Banks

   ¥         *8      35,194,504   

Call Loans and Bills Purchased

           453,546   

Receivables under Resale Agreements

           8,618,422   

Guarantee Deposits Paid under Securities Borrowing Transactions

           3,900,412   

Other Debt Purchased

           2,907,399   

Trading Assets

      *8      11,565,875   

Money Held in Trust

           145,940   

Securities

      *1*8*15      39,996,490   

Loans and Bills Discounted

      *3*4*5*6*7*8*9      74,276,839   

Foreign Exchange Assets

      *7      1,657,373   

Derivatives other than for Trading Assets

           2,958,859   

Other Assets

      *8      3,537,663   

Tangible Fixed Assets

      *10*11      1,078,339   

Intangible Fixed Assets

           706,610   

Net Defined Benefit Asset

           773,296   

Deferred Tax Assets

           37,174   

Customers’ Liabilities for Acceptances and Guarantees

           4,901,887   

Reserves for Possible Losses on Loans

           (463,886
  

 

 

 

Total Assets

   ¥              192,246,749   
  

 

 

 


     Millions of yen  
     As of
September 30, 2015
 

Liabilities

        

Deposits

   ¥         *8      100,595,584   

Negotiable Certificates of Deposit

           15,455,822   

Call Money and Bills Sold

      *8      5,738,107   

Payables under Repurchase Agreements

      *8      19,677,206   

Guarantee Deposits Received under Securities Lending Transactions

      *8      2,115,663   

Commercial Paper

           628,445   

Trading Liabilities

           8,964,612   

Borrowed Money

      *8 *12      7,406,585   

Foreign Exchange Liabilities

           560,551   

Short-term Bonds

           776,296   

Bonds and Notes

      *13      6,235,233   

Due to Trust Accounts

           1,954,690   

Derivatives other than for Trading Liabilities

           2,653,017   

Other Liabilities

           4,649,335   

Reserve for Bonus Payments

           43,964   

Net Defined Benefit Liability

           48,948   

Reserve for Director and Corporate Auditor Retirement Benefits

           1,567   

Reserve for Possible Losses on Sales of Loans

           220   

Reserve for Contingencies

           6,870   

Reserve for Reimbursement of Deposits

           16,684   

Reserve for Reimbursement of Debentures

           42,905   

Reserves under Special Laws

           1,848   

Deferred Tax Liabilities

           433,970   

Deferred Tax Liabilities for Revaluation Reserve for Land

      *10      71,897   

Acceptances and Guarantees

           4,901,887   
  

 

 

 

Total Liabilities

   ¥              182,981,918   
  

 

 

 

Net Assets

        

Common Stock and Preferred Stock

           2,255,790   

Capital Surplus

           1,111,410   

Retained Earnings

           3,004,969   

Treasury Stock

           (4,031
  

 

 

 

Total Shareholders’ Equity

           6,368,139   
  

 

 

 

Net Unrealized Gains (Losses) on Other Securities

           1,386,622   

Deferred Gains or Losses on Hedges

           59,105   

Revaluation Reserve for Land

      *10      145,446   

Foreign Currency Translation Adjustments

           (43,751

Remeasurements of Defined Benefit Plans

           160,410   
  

 

 

 

Total Accumulated Other Comprehensive Income

           1,707,834   
  

 

 

 

Stock Acquisition Rights

           2,762   

Non-Controlling Interests

           1,186,094   
  

 

 

 

Total Net Assets

           9,264,830   
  

 

 

 

Total Liabilities and Net Assets

   ¥              192,246,749   
  

 

 

 


(2)   Consolidated Statement of Income and   
  Consolidated Statement of Comprehensive Income   
  [Consolidated Statement of Income]   

 

 

     Millions of yen  
     For the six months ended
September 30, 2015
 

Ordinary Income

   ¥              1,637,697   

Interest Income

           720,592   

Interest on Loans and Bills Discounted

           463,500   

Interest and Dividends on Securities

           158,508   

Fiduciary Income

           26,399   

Fee and Commission Income

           369,856   

Trading Income

           145,813   

Other Operating Income

           186,370   

Other Ordinary Income

        *1         188,664   

Ordinary Expenses

           1,063,107   

Interest Expenses

           197,081   

Interest on Deposits

           77,722   

Fee and Commission Expenses

           76,897   

Trading Expenses

           1,686   

Other Operating Expenses

           41,511   

General and Administrative Expenses

           673,456   

Other Ordinary Expenses

        *2         72,475   
  

 

 

 

Ordinary Profits

           574,590   
  

 

 

 

Extraordinary Gains

        *3         19,573   

Extraordinary Losses

        *4         2,233   
  

 

 

 

Income before Income Taxes

           591,930   
  

 

 

 

Income Taxes:

        

Current

           134,814   

Deferred

           38,853   
  

 

 

 

Total Income Taxes

           173,667   
  

 

 

 

Profit

           418,262   
  

 

 

 

Profit Attributable to Non-controlling Interests

           34,064   
  

 

 

 

Profit Attributable to Owners of Parent

   ¥              384,198   
  

 

 

 


     [Consolidated Statement of Comprehensive Income]
     Millions of yen  
     For the six months ended
September 30, 2015
 

Profit

   ¥           418,262   

Other Comprehensive Income

        (321,442

Net Unrealized Gains (Losses) on Other Securities

        (349,353

Deferred Gains or Losses on Hedges

        32,591   

Revaluation Reserve for Land

        10   

Foreign Currency Translation Adjustments

        (3,313

Remeasurements of Defined Benefit Plans

        (1,109

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

        (267
  

 

 

 

Comprehensive Income

        96,820   
  

 

 

 

(Breakdown)

     

Comprehensive Income Attributable to Owners of Parent

        63,060   

Comprehensive Income Attributable to Non-controlling Interests

        33,759   


(3) Consolidated Statement of Cash Flows

 

     Millions of yen  
       For the six months ended  
  September 30, 2015  
 

Cash Flow from Operating Activities

  

Income before Income Taxes

   ¥                 591,930   

Depreciation

     79,352   

Losses on Impairment of Fixed Assets

     390   

Amortization of Goodwill

     364   

Equity in Loss (Gain) from Investments in Affiliates

     (16,529

Increase (Decrease) in Reserves for Possible Losses on Loans

     (60,659

Increase (Decrease) in Reserve for Possible Losses on Investments

     (2

Increase (Decrease) in Reserve for Possible Losses on Sales of Loans

     207   

Increase (Decrease) in Reserve for Contingencies

     (228

Increase (Decrease) in Reserve for Bonus Payments

     (15,974

Decrease (Increase) in Net Defined Benefit Asset

     (32,114

Increase (Decrease) in Net Defined Benefit Liability

     2,130   

Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits

     40   

Increase (Decrease) in Reserve for Reimbursement of Deposits

     833   

Increase (Decrease) in Reserve for Reimbursement of Debentures

     (5,972

Interest Income - accrual basis

     (720,592

Interest Expenses - accrual basis

     197,081   

Losses (Gains) on Securities

     (187,912

Losses (Gains) on Money Held in Trust

     (89

Foreign Exchange Losses (Gains) - net

     (24,695

Losses (Gains) on Disposition of Fixed Assets

     (5,149

Decrease (Increase) in Trading Assets

     (763,919

Increase (Decrease) in Trading Liabilities

     201,078   

Decrease (Increase) in Derivatives other than for Trading Assets

     576,930   

Increase (Decrease) in Derivatives other than for Trading Liabilities

     (819,395

Decrease (Increase) in Loans and Bills Discounted

     (1,202,333

Increase (Decrease) in Deposits

     2,924,036   

Increase (Decrease) in Negotiable Certificates of Deposit

     (207,062

Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money)

     335,347   

Decrease (Increase) in Due from Banks (excluding Due from Central Banks)

     (39,839

Decrease (Increase) in Call Loans, etc.

     283,540   

Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions

     158,928   

Increase (Decrease) in Call Money, etc.

     715,253   

Increase (Decrease) in Commercial Paper

     91,277   

Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions

     (129,975

Decrease (Increase) in Foreign Exchange Assets

     (49,208

Increase (Decrease) in Foreign Exchange Liabilities

     87,258   

Increase (Decrease) in Short-term Bonds (Liabilities)

     (40,408

Increase (Decrease) in Bonds and Notes

     (84,193

Increase (Decrease) in Due to Trust Accounts

     173,921   

Interest and Dividend Income - cash basis

     761,229   

Interest Expenses - cash basis

     (195,709

Other - net

     1,151,799   
  

 

 

 

Subtotal

     3,730,964   
  

 

 

 

Cash Refunded (Paid) in Income Taxes

     (178,197
  

 

 

 

Net Cash Provided by (Used in) Operating Activities

   ¥ 3,552,766   
  

 

 

 


     Millions of yen  
     For the six months ended
September 30, 2015
 

Cash Flow from Investing Activities

        

Payments for Purchase of Securities

   ¥              (22,984,289

Proceeds from Sale of Securities

           19,029,866   

Proceeds from Redemption of Securities

           7,047,764   

Payments for Increase in Money Held in Trust

           (1,820

Proceeds from Decrease in Money Held in Trust

           13,609   

Payments for Purchase of Tangible Fixed Assets

           (27,991

Payments for Purchase of Intangible Fixed Assets

           (153,480

Proceeds from Sale of Tangible Fixed Assets

           10,515   
  

 

 

 

Net Cash Provided by (Used in) Investing Activities

        2,934,175   
  

 

 

 

Cash Flow from Financing Activities

        

Repayments of Subordinated Borrowed Money

           (124,000

Proceeds from Issuance of Subordinated Bonds

           350,000   

Payments for Redemption of Subordinated Bonds

           (47,600

Proceeds from Issuance of Common Stock

           4   

Proceeds from Investments by Non-controlling Shareholders

           282   

Repayments to Non-controlling Shareholders

           (452,500

Cash Dividends Paid

           (100,658

Cash Dividends Paid to Non-controlling Shareholders

           (30,831

Payments for Repurchase of Treasury Stock

           (8

Proceeds from Sale of Treasury Stock

           2   
  

 

 

 

Net Cash Provided by (Used in) Financing Activities

        (405,309
  

 

 

 

Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents

        5,511   
  

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

           6,087,143   
  

 

 

 

Cash and Cash Equivalents at the beginning of the period

           27,840,775   
  

 

 

 

Cash and Cash Equivalents at the end of the period

   ¥           *1         33,927,919   
  

 

 

 


(Notes)

(Notes to Consolidated Balance Sheet)

Notes as of September 30, 2015

1. Total balance of securities and investments in affiliates

 

     As of September 30, 2015  

Securities

   ¥       294,106 million   

Investments

   ¥ 607 million   

2. There was no balance for unsecured loaned securities which the borrowers have the right to sell or repledge.

MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral and the balances of these securities are as follows.

 

     As of September 30, 2015  

The total of securities repledged

   ¥ 11,888,363 million   

Securities neither repledged nor re-loaned

   ¥ 1,069,597 million   

3. Loans and Bills Discounted includes Loans to Bankrupt Obligors and Non-Accrual Delinquent Loans as follows.

 

     As of September 30, 2015  

Loans to Bankrupt Obligors

   ¥ 17,899 million   

Non-Accrual Delinquent Loans

   ¥       408,788 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 on which interest payments have been deferred in order to assist or facilitate the restructuring of the obligors.

4. Balance of Loans Past Due for Three Months or More is as follows.

 

     As of September 30, 2015  

Loans Past Due for Three Months or More

   ¥           2,300 million   

Loans Past Due for Three Months or More are loans on which payments of principal and/or interest have not been made for a period of three months or more since the next day following the first due date without such payments, and which are not included in Loans to Bankrupt Obligors, or Non-Accrual Delinquent Loans.

5. Balance of Restructured Loans is as follows.

 

     As of September 30, 2015  

Restructured Loans

   ¥       514,709 million   

Restructured Loans represent loans whose contracts were amended in favor of obligors (e.g., reduction of, or exemption from, stated interest, deferral of interest payments, extension of maturity dates and 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.


6. Total balance of Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans, Loans Past Due for Three Months or More, and Restructured Loans is as follows.

 

     As of September 30, 2015  

Total balance

   ¥       943,698 million   

The amounts given in Notes 3 through 6 above are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

7. In accordance with “Treatment of Accounting and Auditing of Application of Accounting Standard for Financial Instruments in the Bank Industry” (JICPA Industry Audit Committee Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sell or pledge these commercial bills, foreign exchange bills purchased and others. The face value of these bills amounted to ¥1,402,916 million.

8. The following assets were pledged as collateral.

 

     As of September 30, 2015  

Trading Assets

   ¥ 3,338,674 million   

Securities

   ¥ 11,058,489 million   

Loans and Bills Discounted

   ¥ 6,561,977 million   

Other Assets

   ¥ 1,014 million   
  

 

 

 

Total

   ¥ 20,960,156 million   
  

The following liabilities were collateralized by the above assets.

 

Deposits

   ¥ 1,251,505 million   

Call Money and Bills Sold

   ¥ 1,219,800 million   

Payables under Repurchase Agreements

   ¥   8,112,077 million   

Guarantee Deposits Received under Securities Lending Transactions

   ¥ 1,856,998 million   

Borrowed Money

   ¥ 5,759,336 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 the following.

 

     As of September 30, 2015  

Cash and Due from Banks

   ¥ 35,021 million   

Trading Assets

   ¥ 143,933 million   

Securities

   ¥   4,478,081 million   

Loans and Bills Discounted

   ¥ 195,148 million   

Other Assets includes margins for futures transactions, guarantee deposits, and collateral pledged for financial instruments and others, and each balance is as follows.

 

     As of September 30, 2015  

Margins for Futures Transactions

   ¥ 212,273 million   

Guarantee Deposits

   ¥      117,930 million   

Collateral Pledged for Financial Instruments and Others

   ¥ 587,294 million   


9. Overdraft protection on current accounts and contracts of 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 balances of these contracts are as follows.

 

     As of September 30, 2015  

Unutilized balances

   ¥  85,241,095 million   

Of which, contracts of which the original contractual maturity is one year or less

or which are unconditionally cancelable at any time

   ¥ 65,173,268 million   

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 require collateral such as real estate and securities when deemed necessary at the time the contract is entered into. In addition, they periodically monitor customers’ business conditions in accordance with internally established standards and take the necessary measures to manage credit risks such as amendments to contracts.

10. 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, Paragraph 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 Paragraph 5.

11. Accumulated Depreciation of Tangible Fixed Assets is as follows.

 

     As of September 30, 2015  

Accumulated Depreciation

   ¥       856,209 million   

12. Borrowed Money includes subordinated borrowed money with a covenant that performance of the obligation is subordinated to that of other obligations as follows.

 

     As of September 30, 2015  

Subordinated Borrowed Money

   ¥       332,000 million   

13. Bonds and Notes includes subordinated bonds as follows.

 

     As of September 30, 2015  

Subordinated Bonds

   ¥   1,710,703 million   

14. The principal amount of money trusts with contracts indemnifying the principal amount, which is entrusted to domestic consolidated trust banking subsidiaries is as follows.

 

     As of September 30, 2015  

Money trusts

   ¥       673,710 million   

15. 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 ¥1,020,045 million.


(Notes to Consolidated Statement of Income)

For the six months ended September 30, 2015

1. Other Ordinary Income includes the following.

 

     For the six months ended September 30, 2015  

Gains on Sales of Stocks

   ¥ 133,199 million   

2. Other Ordinary Expenses includes the following.

 

     For the six months ended September 30, 2015  

System Migration-related Expenses

   ¥ 17,343 million   

Losses on Sales of Stocks

   ¥ 15,636 million   

Losses on Write-offs of Loans

   ¥ 14,220 million   

Losses on Reimbursement of Matured Debentures

   ¥ 8,720 million   

3. Extraordinary Gains is as follows.

 

     For the six months ended September 30, 2015  

Indemnity Receipt from the Erroneous Stock Order in the Securities Subsidiary

   ¥ 12,822 million   

Gains on Disposition of Fixed Assets

   ¥ 6,751 million   

4. Extraordinary Losses is as follows.

 

     For the six months ended September 30, 2015  

Losses on Disposition of Fixed Assets

   ¥ 1,602 million   

Losses on Impairment of Fixed Assets

   ¥ 390 million   

Provision for Reserve for Contingent Liabilities from Financial Instruments and Exchange

   ¥ 240 million   

(Notes to Consolidated Statement of Cash Flows)

For the six months ended September 30, 2015

1. 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:

 

     As of September 30, 2015  

Cash and Due from Banks

   ¥ 35,194,504 million   

Due from Banks excluding central banks

   ¥ (1,266,585) million   
  

 

 

 

Cash and Cash Equivalents

   ¥ 33,927,919 million   
  

 

 

 


(Securities)

In addition to “Securities” on the consolidated balance sheet, NCDs in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included.

For the six months ended September 30, 2015

1. Bonds Held to Maturity (as of September 30, 2015)

 

(Millions of yen)

 
    

Type

   Consolidated
Balance
Sheet
Amount
     Fair Value      Difference  

Bonds Whose Fair Values Exceed the Consolidated Balance Sheet Amount

   Japanese Government Bonds      4,060,068         4,093,023         32,954   
   Foreign Bonds      381,512         382,753         1,240   
  

Sub-total

     4,441,581         4,475,776         34,194   

Bonds Whose Fair Values Do Not Exceed the Consolidated Balance Sheet Amount

   Japanese Government Bonds      —           —           —     
   Foreign Bonds      810,632         804,000         (6,631
  

Sub-total

     810,632         804,000         (6,631
     

 

 

    

 

 

    

 

 

 

Total

        5,252,213         5,279,776         27,563   
     

 

 

    

 

 

    

 

 

 

2. Other Securities (as of September 30, 2015)

 

(Millions of yen)

 
     

Type

   Consolidated
Balance
Sheet
Amount
     Acquisition
Cost
     Difference  

Other Securities Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost

  

Stocks

     3,500,852         1,590,697         1,910,155   
  

Bonds

     13,645,897         13,592,667         53,229   
  

Japanese Government Bonds

     11,474,833         11,451,230         23,603   
  

Japanese Local Government Bonds

     215,651         211,313         4,338   
  

Short-term Bonds

     —           —           —     
  

Japanese Corporate Bonds

     1,955,412         1,930,124         25,287   
  

Other

     7,118,932         6,887,852         231,080   
  

Foreign Bonds

     6,311,621         6,265,341         46,279   
  

Other Debt Purchased

     161,006         157,456         3,550   
  

Other

     646,305         465,054         181,250   
  

Sub-total

     24,265,682         22,071,217         2,194,465   

Other Securities Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost

  

Stocks

     289,977         333,043         (43,065
  

Bonds

     4,939,759         4,952,083         (12,323
  

Japanese Government Bonds

     4,123,729         4,124,659         (930
  

Japanese Local Government Bonds

     9,496         9,505         (8
  

Short-term Bonds

     99         99         —     
  

Japanese Corporate Bonds

     806,433         817,818         (11,385
  

Other

     5,297,754         5,417,132         (119,378
  

Foreign Bonds

     3,258,891         3,309,848         (50,956
  

Other Debt Purchased

     250,125         250,804         (678
  

Other

     1,788,736         1,856,480         (67,743
  

Sub-total

     10,527,491         10,702,259         (174,768
     

 

 

    

 

 

    

 

 

 

Total

        34,793,174         32,773,477         2,019,696   
     

 

 

    

 

 

    

 

 

 

(Note) Unrealized Gains (Losses) includes ¥35,836 million, which was recognized in the statement of income by applying the fair-value hedge method.


3. Impairment (“Devaluation”) of Securities

Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the period (impairment (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 impairment (devaluation) for the period was ¥993 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.

(Notes to Money Held in Trust)

For the six months ended September 30, 2015

 

1. Money Held in Trust Held to Maturity (as of September 30, 2015)

There was no Money Held in Trust held to maturity.

 

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

 

(as of September 30, 2015)    (Millions of yen)  
     Consolidated
Balance
Sheet
Amount
     Acquisition
Cost
     Difference      Other in Money
Held in Trust
Whose
Consolidated
Balance Sheet
Amount Exceeds
Acquisition Cost
     Other in Money
Held in Trust Whose
Consolidated Balance
Sheet  Amount Does Not
Exceed Acquisition Cost
 

Other in Money Held in Trust

     2,706         2,706         —           —           —     

(Note) “Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost” and “Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost” are components of “Difference.”


(Business Segment Information)

For the six months ended September 30, 2015

1. Summary of reportable segment

Mizuho Financial Group engages in banking, trust banking, securities and other financial businesses through consolidated subsidiaries and affiliates. As these subsidiaries and affiliates are in different industries and regulatory environments, we disclose business segment information based on the following principal consolidated subsidiaries to measure the present and future cash flows properly:

Mizuho Bank, Ltd.(MHBK) : Banking business

Mizuho Trust & Banking Co., Ltd.(MHTB): Trust business • Banking business

Mizuho Securities Co., Ltd. (MHSC): Securities business

Operating segments of MHBK are aggregated based on the type of customer characteristics and are aggregated into six customer segments and Trading and Others. The six customer segments are Personal Banking, Retail Banking, Corporate Banking (Large Corporations), Corporate Banking, Financial Institutions & Public Sector Business, and International Banking. The targets of these segments are as follows:

 

   

Personal Banking: individuals (excluding individuals who belong to Retail Banking);

 

   

Retail Banking: business owners, land owners, lease holders, and SMEs;

 

   

Corporate Banking (Large Corporations): domestic large corporations and their affiliates;

 

   

Corporate Banking: relatively larger domestic SMEs (quasi listed companies);

 

   

Financial Institutions & Public Sector Business: financial institutions and central and local governments; and

 

   

International Banking: Japanese companies that conduct business overseas and business with non-Japanese companies.

The reportable segment information, set forth below, is derived from the internal management reporting systems used by management to measure the performance of the Group’s operating segments. The management measures the performance of each of the operating segments primarily in terms of “net business profits” (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) in accordance with internal managerial accounting rules and practices.

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

The following information of reportable segment is based on internal management reporting.

Gross profits (excluding the amounts of credit costs of trust accounts) is the total amount of Interest income, Fiduciary income, Fee and commission income, Trading income, and Other operating income.

Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) is the amount of which General administrative expenses (excluding non-recurring expenses) and Other (Equity in income from investments in affiliates and certain other consolidation adjustments) are deducted from Gross profits (excluding the amounts of credit costs of trust accounts).

Asset information by segment is not prepared on the grounds that management does not use asset information of each segment for the purpose of asset allocation or performance evaluation.

Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments is based on the current market price.

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


      (Millions of yen)  
     MHBK (Consolidated)     MHTB
(Consolidated)
    MHSC
(Consolidated)
     Others      MHFG
(Consolidated)
 
     MHBK (Non-consolidated)      Others                  
     Personal
Banking
     Retail
Banking
     Corporate
Banking
(Large
Corporations)
     Corporate
Banking
     Financial
Institutions &
Public Sector
Business
     International
Banking
     Trading and
others
                       

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

                                      

Net interest income (expense)

     107,700         38,200         85,400         48,800         16,300         86,800         47,658         430,858         68,866        499,724        20,147        1,917         1,721         523,511   

Net noninterest income

     19,500         25,600         69,600         35,800         14,900         93,600         66,421         325,421         17,465        342,886        60,982        172,765         31,710         608,345   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     127,200         63,800         155,000         84,600         31,200         180,400         114,079         756,279         86,331        842,611        81,129        174,683         33,432         1,131,857   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

General and administrative expenses (excluding Non-Recurring Losses)

     117,200         60,100         45,700         37,400         14,600         63,400         79,431         417,831         34,966        452,798        49,203        141,397         28,868         672,268   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Others

     —           —           —           —           —           —           —           —           (11,327     (11,327     (1,701     19         146         (12,863
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

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

     10,000         3,700         109,300         47,200         16,600         117,000         34,648         338,448         40,038        378,486        30,224        33,305         4,710         446,725   

Notes:

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


4. The difference between the total amounts of reportable segments and the recorded amounts in Consolidated Statement of Income, and the contents of the difference (Matters relating to adjustment to difference)

The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) and that of Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) derived from internal management reporting by reportable segment are different from the amounts recorded in Consolidated Statement of Income.

The contents of the difference for the interim period are as follows:

 

(1) The total of Gross profits (excluding the amounts of credit costs of trust accounts) of segment information and Ordinary Profits recorded in Consolidated Statement of Income

 

Millions of yen

 

Gross profits:

(excluding the amounts of credit costs of trust accounts)

   Amount  

Total amount of the above segment information

     1,131,857   

Other Ordinary Income

     188,664   

General and Administrative Expenses

     (673,456

Other Ordinary Expenses

     (72,475
  

 

 

 

Ordinary Profits recorded in Consolidated Statement of Income

     574,590   
  

 

 

 

(2)    The total of Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) of segment information and Income before income taxes recorded in Consolidated Statement of Income

         

Millions of yen

 

Net business profits

(excluding the amounts of credit costs of trust accounts,

before reversal of (provision for) general reserve for losses on loans)

   Amount  

Total amount of the above segment information

         446,725   

Credit Costs for Trust Accounts

     —     

General and Administrative Expenses (non-recurring losses)

     (1,187

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

     (14,050

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

     17,998   

Net Gains (Losses) related to Stocks

     114,850   

Net Extraordinary Gains (Losses)

     17,340   

Other

     10,252   
  

 

 

 

Income before income taxes recorded in Consolidated Statement of Income

     591,930   
  

 

 

 

[Related Information]

For the six months ended September 30, 2015

 

1. Information about Geographic Areas

 

(1) Ordinary Income

 

(Millions of yen)

 

Japan

   Americas      Europe      Asia/Oceania
excluding  Japan
     Total  
1,223,897      164,249         77,539         172,011         1,637,697   

(Notes)

1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations. The above table shows Ordinary Income instead of sales of non-financial companies.
2. Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, the United States of America and others, Europe includes Ordinary Income of consolidated subsidiaries and branches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated subsidiaries and branches in Hong Kong, the Republic of Singapore and others.


(2) Tangible Fixed Assets

Information on tangible fixed assets by geographical areas is not disclosed since tangible fixed assets in Japan accounted for more than 90% of tangible fixed assets on the consolidated balance sheet of MHFG.

 

2. Information about Major Customers

Information about major customers is not disclosed since there are no outside customers accounted for more than 10% of Ordinary Income of MHFG.

[Information about Impairment Losses on Tangible Fixed Assets by Reportable Segment]

For the six months ended September 30, 2015

 

      (Millions of yen)  
     MHBK (Consolidated)      MHTB
(Consolidated)
     MHSC
(Consolidated)
     Others      MHFG
(Consolidated)
 
     MHBK (Non-consolidated)      Others                     
     Personal
Banking
     Retail
Banking
     Corporate
Banking
(Large
Corporations)
     Corporate
Banking
     Financial
Institutions &
Public Sector
Business
     International
Banking
     Trading and
others
                          

Impairment Losses on Tangible Fixed Assets

     —           —           —           —           —           —           269         269         0         270         —           120         —           390   

[Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment]

  

  
For the six months ended September 30, 2015      
      (Millions of yen)  
     MHBK (Consolidated)      MHTB
(Consolidated)
     MHSC
(Consolidated)
     Others      MHFG
(Consolidated)
 
     MHBK (Non-consolidated)      Others                     
     Personal
Banking
     Retail
Banking
     Corporate
Banking
(Large
Corporations)
     Corporate
Banking
     Financial
Institutions &
Public Sector
Business
     International
Banking
     Trading and
others
                          

Amortization of Goodwill during this interim period

     —           —           —           —           —           —           —           —           364         364         —           —           —           364   

Balance as of the end of this interim period

     —           —           —           —           —           —           —           —           9,145         9,145         —           —           —           9,145   

[Information about Gain on Negative Goodwill Incurred by Reportable Segment]

  

  
For the six months ended September 30, 2015      

There is no applicable information.