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 2010

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-1, Marunouchi 2-chome

Chiyoda-ku, Tokyo 100-8333

Japan

(Address of principal executive office)

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

Form 20-F  x    Form 40-F  ¨

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

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

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

Yes  ¨    No  x

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

 

 

 


 

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 12, 2010
Mizuho Financial Group, Inc.
By:  

/s/ Takeo Nakano

Name:   Takeo Nakano
Title:   Managing Director / CFO


 

For Immediate Release:   November 12, 2010

 

  

Financial Statements for the Second Quarter of Fiscal 2010

(Six months ended September 30, 2010)

<Under Japanese GAAP>

   LOGO

 

Company Name:   Mizuho Financial Group, Inc. (“MHFG”)                                         

Stock Code Number (Japan):

  8411

Stock Exchanges (Japan):

  Tokyo Stock Exchange (First Section), Osaka Securities Exchange (First Section)
URL:   http://www.mizuho-fg.co.jp/english/

Representative:

  Takashi Tsukamoto    President & CEO

For Inquiry:

  Tatsuya Yamada    Executive Officer, General Manager of Accounting

Phone:

  +81-3-5224-2030         

Filing of Shihanki Hokokusho (scheduled):

   November 26, 2010    Trading Accounts:    Established

Commencement of Dividend Payment (scheduled):

        

Supplementary Materials on Quarterly Results: Attached

     

IR Conference on Quarterly Results: Scheduled

     

Amounts less than one million yen are rounded down.

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2010 (for the six months ended September 30, 2010)

(1) Consolidated Results of Operations

 

(%: Changes from the previous first half)  
     Ordinary Income     Ordinary Profits      Net Income  
     ¥ million      %     ¥ million      %      ¥ million      %  

1H F2010

     1,449,871         (2.3     423,829         308.3         341,759         289.2   

1H F2009

     1,485,032         (21.9     103,789         82.7         87,806         (7.1

 

     Net Income
per Share of
Common Stock
     Diluted Net Income
per Share of
Common Stock
 
     ¥      ¥  

1H F2010

     19.15         17.50   

1H F2009

     6.89         6.17   

(2) Consolidated Financial Conditions

 

     Total Assets      Total Net Assets      Own Capital Ratio      Total Net Assets
per Share of
Common Stock
     Consolidated Capital Adequacy
Ratio (BIS Standard)
 
     ¥ million      ¥ million      %      ¥      %  

1H F2010

     157,754,464         6,689,256         2.7         179.55         15.40   

Fiscal 2009

     156,253,572         5,837,053         2.2         191.53         13.46   

 

Reference:

 

Own Capital:

As of September 30, 2010: ¥4,389,156 million; As of March 31, 2010: ¥3,513,050 million

Notes:

 

1.

  Own Capital Ratio was calculated as follows: (Total Net Assets - Stock Acquisition Rights - 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).
 

3.

  Consolidated Capital Adequacy Ratio (BIS) as of September 30, 2010 is a preliminary figure.

2. Cash Dividends for Shareholders of Common Stock

 

     Cash Dividends per Year  

(Record Date)

   First
Quarter-end
     Second
Quarter-end
     Third
Quarter-end
     Fiscal
Year-end
     Total  
     ¥      ¥      ¥      ¥      ¥  

Fiscal 2009

     —           0.00         —           8.00         8.00   

Fiscal 2010

     —           0.00            

Fiscal 2010 (estimate)

           —           6.00         6.00   

 

Notes:   1.   

Revision of estimates for cash dividends for shareholders of common stock during this quarter:

No

  2.    Please refer to the following “Cash Dividends for Shareholders of Classified Stock” for cash dividends for shareholders of classified stock (unlisted), the rights of which are different from those of common stock.

 

3. Consolidated Earnings Estimates for Fiscal 2010 (for the fiscal year ending March 31, 2011)

 

               (%: Changes from the previous fiscal year)  
               Net Income      Net Income
per Share of
Common Stock
 
               ¥ million                      %      ¥  

Fiscal 2010

           500,000         108.8         24.84   

 

Notes:   1.    Revision of the earnings estimates during this quarter: Yes
  2.    The average number of shares of outstanding common stock for fiscal 2010 used in calculating the above Net Income per Share of Common Stock is based on the following:

 

   

The average of “the average number of shares during the 1H Fiscal 2010” and “the number of shares as of September 30, 2010 (which is expected to be the average number of shares during the 2H of fiscal 2010)” is used.

 

   

It does not take into account any increase in the number of shares of common stock due to requests for acquisition (conversion) of the Eleventh Series Class XI Preferred Stock in the 2H of fiscal 2010.


 

 

4. Others (Please refer to “Other Information” on page 1-3 of [Attachment] for details.)

(1) Changes in Significant Subsidiaries during the Period: No

(Note) Above are the changes in specified subsidiaries accompanying changes in the scope of consolidation during the period.

(2) Changes in Accounting Methods and Presentation of Consolidated Financial Statements

Changes due to revisions of accounting standards, etc.: Yes

Changes other than  above: No

 

  (Note)  Above are the changes of accounting methods and presentation of interim consolidated financial statements which are to be described in the changes of fundamental and important matters for the preparation of Interim Consolidated Financial Statements.

(3) Issued Shares of Common Stock

 

 Period-end issued shares (including treasury stock):    
 
As of September 30, 2010:
As of March 31, 2010:
  
  
   

 

21,539,573,760 shares;

15,494,397,690 shares

  

  

Period-end treasury stock:    
 
As of September 30, 2010:
As of March 31, 2010:
  
  
   

 

5,644,103 shares;

9,397,093 shares

  

  

ƒ Average number of outstanding shares:    

 

1st Half of Fiscal 2010:

1st Half of Fiscal 2009:

  

  

   

 

17,846,169,840 shares;

12,743,594,595 shares

  

  

Non-consolidated Financial Statements

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2010 (for the six months ended September 30, 2010)

 

(1) Non-Consolidated Results of Operations            (%: Changes from the previous first half)  
     Operating Income     Operating Profits     Ordinary Profits     Net Income  
     ¥ million      %     ¥ million      %     ¥ million      %     ¥ million      %  

1H F2010

     32,606         66.3        22,991         130.6        16,770         450.1        16,585         436.1   

1H F2009

     19,607         (95.4     9,968         (97.6     3,048         (99.2     3,093         (99.3
     Net Income per
Share of Common Stock
                                               
     ¥                                                

1H F2010

     0.92                     

1H F2009

     0.24                     

(2) Non-Consolidated Financial Conditions

 

     Total Assets      Total Net Assets      Own Capital Ratio      Total Net Assets
per Share of
Common Stock
 
     ¥ million      ¥ million      %      ¥  

1H F2010

     5,979,975         4,645,179         77.6         191.35   

Fiscal 2009

     5,225,971         4,011,146         76.7         223.59   

 

Reference:

 

1.  Own Capital: As of September 30, 2010: ¥4,643,393 million; As of March 31, 2010: ¥4,009,502 million

 

2.  Maximum amount available for dividends as of September 30, 2010: ¥1,414,778 million; As of March 31, 2010:

     ¥1,549,745 million

 

(Note) “Maximum amount available for dividends” is calculated pursuant to Article 461, Paragraph 2 of the Company Law.

(Presentation of Implementation Status of Interim Review Procedure)

The semi-annual audit procedure of consolidated and non-consolidated interim financial statements based on the Financial Instruments and Exchange Law has not been completed at the time of the disclosure of these Financial Statements.

 

 

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; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Management Policy and other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

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.

MHFG is a specified business company under “Cabinet Office Ordinance on Disclosure of Corporate Information, etc.” Article 17-15 clause 2 and prepares the interim consolidated and interim non-consolidated financial statements in the second quarter.

 

 


 

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  

(Record Date)

   First Quarter-end      Second Quarter-end      Third Quarter-end      Fiscal Year-end             Total  
     ¥      ¥      ¥      ¥             ¥  

Eleventh Series Class XI Preferred Stock

                 

Fiscal 2009

     —           0.00         —           20.00            20.00   

Fiscal 2010

     —           0.00               

Fiscal 2010 (estimate)

           —           20.00            20.00   

Thirteenth Series Class XIII Preferred Stock

                 

Fiscal 2009

     —           0.00         —           30.00            30.00   

Fiscal 2010

     —           0.00               

Fiscal 2010 (estimate)

           —           30.00            30.00   


mContents of Attachment

 

1.   Qualitative Information related to Financial Results      p.1-2   
  (1) Qualitative Information related to Consolidated Results of Operations      p.1-2   
  (2) Qualitative Information related to Consolidated Financial Conditions      p.1-2   
  (3) Qualitative Information related to Consolidated Earnings Estimates      p.1-2   
2.   Other Information      p.1-3   
  (1) Changes in Significant Subsidiaries      p.1-3   
  (2) Changes in Accounting Methods and Presentation      p.1-3   
3.   Interim Consolidated Financial Statements      p.1-4   
  (1) Consolidated Balance Sheets      p.1-4   
  (2) Consolidated Statements of Income      p.1-6   
  (3) Consolidated Statements of Changes in Net Assets      p.1-7   
  (4) Note for Assumption of Going Concern      p.1-9   
4.   Interim Non-Consolidated Financial Statements      p.1-10   
  (1) Non-Consolidated Balance Sheets      p.1-10   
  (2) Non-Consolidated Statements of Income      p.1-11   
  (3) Non-Consolidated Statements of Changes in Net Assets      p.1-12   
  (4) Note for Assumption of Going Concern      p.1-13   

[Note to XBRL]

Please note that the names of the English accounts contained in XBRL data, which are available through EDINET and TDNet, may be different from those of the English accounts in our financial statements.

A MHFG IR conference for institutional investors and analysts is scheduled for November 24, 2010 (Wednesday). The IR conference presentation materials and audio archive will be available for use by individual investors in the IR Information section of the Mizuho Financial Group HP immediately after the conference.

 

1-1


 

1. QUALITATIVE INFORMATION RELATED TO FINANCIAL RESULTS

(Please refer to “Summary Results for the Second Quarter (First Half) of Fiscal 2010” on page 2-1 for more information.)

(1) Qualitative Information related to Consolidated Results of Operations

Reviewing the economic environment over the past six months ended September 30, 2010, there are indications of a slowing of the continuing gradual recovery in the global economy which has been led by newly developing countries, and there is a heightened risk of a slackening in the economy mainly in Europe and the United States as global fiscal tightening makes its impact.

In the United States, a sustained recovery is taking place on the basis of steady capital investment and positive trends in consumer spending, but business performance- and employment-related indices have been slow to improve and there is a risk of a stalling in economic growth. In Europe, economic growth is stagnant as consumer spending remains weak with long-term labor force adjustments and so on, added to which the difficulty in predicting the effect of the fiscal problems experienced by certain countries on the financial markets and the real economy and so on means that there exists a distinct lack of visibility regarding the future of the global economy. In Asia, the increase in demand in the Chinese market has a knock-on effect in inducing an increase in exports and production activity in neighboring economies, and while the pace of growth is slowing, the region is maintaining strong economic growth.

In Japan, although positive growth is being maintained as corporate profits improve among other factors, the mild deflationary situation is continuing and the sharp appreciation of the value of the yen against other currencies continues its course and so on, leading to a stalling in improvements in the economy. There are several causes for concern over the future direction of the economy in addition to how the various stimulus programs will lose their effectiveness going forward, there are also the risks of a slowing in economies abroad and a worsening in the employment situation, combining with the fluctuations in exchange rates to serve as a drag on economic growth.

In light of this economic environment, we will aim to further enhance our corporate value through the steady implementation of our Transformation Program, which consists of the program for improving profitability, the program for enhancing financial base and the program for strengthening front-line business capabilities.

Under the above economic environment, Net Income for the six months ended September 30, 2010 amounted to ¥341.7 billion, increasing by ¥253.9 billion from the corresponding period of the previous fiscal year.

(2) Qualitative Information related to Consolidated Financial Conditions

Consolidated total assets as of September 30, 2010 amounted to ¥157,754.4 billion, increasing by ¥1,500.8 billion from the end of the previous fiscal year.

Net Assets amounted to ¥6,689.2 billion, increasing by ¥852.2 billion from the end of the previous fiscal year. Shareholders’ Equity amounted to ¥4,176.4 billion, Valuation and Translation Adjustments amounted to ¥212.6 billion and Minority Interests amounted to ¥2,297.3 billion.

In Assets, the balance of Loans and Bills Discounted amounted to ¥62,069.8 billion, decreasing by ¥94.6 billion from the end of the previous fiscal year while Securities were ¥44,159.2 billion, increasing by ¥1,062.8 billion from the end of the previous fiscal year. In Liabilities, Deposits amounted to ¥75,612.0 billion, decreasing by ¥727.7 billion from the end of the previous fiscal year.

The Consolidated Capital Adequacy Ratio (Basel II BIS Standard) was 15.40% (preliminary).

 

     March 31, 2009   March 31, 2010   September 30, 2010

Basel II

   10.53%   13.46%   15.40%

(3) Qualitative Information related to Consolidated Earnings Estimates

Based on the financial results for the second quarter of fiscal 2010, MHFG estimates Ordinary Profits of ¥670.0 billion (an increase of ¥100.0 billion from the estimate which was announced on May 14, 2010) and Net Income of ¥500.0 billion (an increase of ¥70.0 billion from the same estimate above) for fiscal 2010.

The above estimates constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Please see the “forward-looking statements” legend for a description of the factors that could affect our ability to meet these estimates.

 

1-2


 

2. Other Information

(1) Changes in Significant Subsidiaries

(Changes in specified subsidiaries accompanying changes in scope of consolidation during the period.)

There is no applicable information.

(2) Changes in Accounting Methods and Presentation

[Changes in Accounting Methods]

(Accounting Standard for Financial Instruments)

Mizuho Financial Group has applied “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, March 10, 2008) and “Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.19, March 10, 2008) from the end of the previous fiscal year.

As a result, Other Debt Purchased increased by ¥684 million, Securities increased by ¥26,317 million, Deferred Tax Assets decreased by ¥11,769 million, Reserves for Possible Losses on Loans decreased by ¥17,678 million, Net Unrealized Gains (Losses) on Other Securities, net of Taxes increased by ¥17,408 million, Minority Interests increased by ¥160 million, Income before Income Taxes and Minority Interests increased by ¥595 million, and Net Income increased by ¥596 million compared with the corresponding amounts under the previously applied method.

(Adoption of Accounting Standard for Equity Method of Accounting for Investments and Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method)

Mizuho Financial Group has applied “Accounting Standard for Equity Method of Accounting for Investments” (ASBJ Statement No. 16, March 10, 2008) and “Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method” (PITF No. 24, March 10, 2008) beginning with this interim period.

This application does not affect the financial statements.

(Adoption of Accounting Standard for Asset Retirement Obligations)

Mizuho Financial Group has applied “Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) beginning with this interim period.

As a result, Income before Income Taxes and Minority Interests decreased by ¥3,445 million. The change in Asset Retirement Obligations (which is in “Other Liabilities”) due to commencement of application of the accounting standards is ¥6,257 million.

[Additional Information]

(Issuance of New Shares by the Spread Method)

The spread method is adopted for the issuance of new shares (5,609,000 thousand shares) with a payment date of July 21, 2010. This is a method where the new shares are underwritten and purchased by the initial purchasers at the amount to be paid to MHFG (¥125.27 per share), and sold by the underwriters to the investors at an issue price (¥130.00 per share) different from the amount to be paid to MHFG.

Using the spread method, the aggregate amount of the difference between (a) the issue price and (b) the amount to be paid to MHFG is retained by the initial purchasers, and allocated to each of the underwriters as underwriting fees. Accordingly, Other Ordinary Expenses does not include the amount equivalent to such underwriting fees of ¥26,530 million related to the issuance.

The amount equivalent to such underwriting fees of ¥9,734 million, recognized as profit by consolidated subsidiaries, is eliminated and recorded as an increase in Capital Surplus.

 

1-3


 

3. INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED BALANCE SHEETS

 

     Millions of yen  
     As of
September 30,
2009
    As of
September 30,
2010
    As of
March 31, 2010
(Selected Items)
 

Assets

      

Cash and Due from Banks

   ¥ 4,921,251      ¥ 3,650,486      ¥ 5,211,477   

Call Loans and Bills Purchased

     119,821        290,921        605,238   

Receivables under Resale Agreements

     8,726,629        8,389,628        7,129,676   

Guarantee Deposits Paid under Securities Borrowing Transactions

     5,654,671        6,376,329        5,744,901   

Other Debt Purchased

     2,329,381        1,801,283        2,040,445   

Trading Assets

     15,565,593        15,463,760        13,986,791   

Money Held in Trust

     114,708        102,452        119,438   

Securities

     37,938,463        44,159,283        43,096,460   

Loans and Bills Discounted

     64,267,283        62,069,897        62,164,579   

Foreign Exchange Assets

     539,477        779,968        707,803   

Derivatives other than for Trading Assets

     7,329,310        7,123,116        7,060,302   

Other Assets

     3,670,516        3,104,688        3,742,205   

Tangible Fixed Assets

     914,016        942,494        927,337   

Intangible Fixed Assets

     398,120        424,974        427,278   

Deferred Tax Assets

     625,718        459,541        533,030   

Customers’ Liabilities for Acceptances and Guarantees

     3,689,546        3,459,319        3,643,706   

Reserves for Possible Losses on Loans

     (942,063     (843,664     (887,073

Reserve for Possible Losses on Investments

     (4,576     (17     (29
                        

Total Assets

   ¥ 155,857,870      ¥ 157,754,464      ¥ 156,253,572   
                        

 

1-4


     Millions of yen  
     As of
September 30,
2009
    As of
September 30,
2010
    As of
March 31,
2010
(Selected Items)
 

Liabilities

      

Deposits

   ¥ 74,877,022      ¥ 75,612,075      ¥ 76,339,779   

Negotiable Certificates of Deposit

     9,073,581        10,531,592        10,287,808   

Debentures

     1,917,442        1,127,527        1,517,797   

Call Money and Bills Sold

     6,316,744        5,493,654        5,786,370   

Payables under Repurchase Agreements

     14,007,069        12,443,878        12,075,802   

Guarantee Deposits Received under Securities Lending Transactions

     5,773,990        6,319,242        6,615,512   

Trading Liabilities

     8,845,953        8,631,124        7,579,695   

Borrowed Money

     9,366,974        9,941,009        9,663,867   

Foreign Exchange Liabilities

     200,046        205,619        172,990   

Short-term Bonds

     494,095        524,597        492,397   

Bonds and Notes

     4,721,679        5,001,381        4,970,257   

Due to Trust Accounts

     1,045,344        1,032,497        1,025,431   

Derivatives other than for Trading Liabilities

     6,475,620        6,231,233        6,614,116   

Other Liabilities

     3,188,466        4,282,603        3,376,769   

Reserve for Bonus Payments

     39,784        34,143        48,946   

Reserve for Employee Retirement Benefits

     33,333        35,733        34,263   

Reserve for Director and Corporate Auditor Retirement Benefits

     1,841        2,049        2,112   

Reserve for Possible Losses on Sales of Loans

     27,666        2,815        15,258   

Reserve for Contingencies

     15,112        14,120        14,809   

Reserve for Reimbursement of Deposits

     14,371        14,912        14,748   

Reserve for Reimbursement of Debentures

     9,760        11,615        10,824   

Reserves under Special Laws

     2,187        1,376        2,149   

Deferred Tax Liabilities

     10,585        12,497        12,226   

Deferred Tax Liabilities for Revaluation Reserve for Land

     103,681        98,583        98,875   

Acceptances and Guarantees

     3,689,546        3,459,319        3,643,706   
                        

Total Liabilities

   ¥ 150,251,905      ¥ 151,065,208      ¥ 150,416,519   
                        

Net Assets

      

Common Stock and Preferred Stock

   ¥ 1,805,565      ¥ 2,181,375      ¥ 1,805,565   

Capital Surplus

     552,135        937,680        552,135   

Retained Earnings

     696,088        1,060,637        854,703   

Treasury Stock

     (5,183     (3,195     (5,184
                        

Total Shareholders’ Equity

     3,048,605        4,176,496        3,207,219   
                        

Net Unrealized Gains on Other Securities, net of Taxes

     116,406        32,505        176,931   

Net Deferred Hedge Gains, net of Taxes

     69,733        142,572        83,093   

Revaluation Reserve for Land, net of Taxes

     145,447        137,952        138,430   

Foreign Currency Translation Adjustments

     (93,230     (100,371     (92,623
                        

Total Valuation and Translation Adjustments

     238,357        212,659        305,831   
                        

Stock Acquisition Rights

     2,307        2,778        2,301   

Minority Interests

     2,316,695        2,297,321        2,321,700   
                        

Total Net Assets

     5,605,965        6,689,256        5,837,053   
                        

Total Liabilities and Net Assets

   ¥ 155,857,870      ¥ 157,754,464      ¥ 156,253,572   
                        

 

1-5


 

(2) CONSOLIDATED STATEMENTS OF INCOME

 

     Millions of yen  
     For the six
months ended
September 30, 2009
    For the six
months ended
September 30, 2010
     For the fiscal
year ended
March 31, 2010
(Selected Items)
 

Ordinary Income

   ¥ 1,485,032      ¥ 1,449,871       ¥ 2,817,625   

Interest Income

     816,397        733,453         1,571,994   

Interest on Loans and Bills Discounted

     553,527        454,147         1,047,718   

Interest and Dividends on Securities

     171,872        179,472         350,536   

Fiduciary Income

     24,150        24,058         49,100   

Fee and Commission Income

     269,596        271,146         557,312   

Trading Income

     197,911        177,612         312,330   

Other Operating Income

     73,294        185,542         179,021   

Other Ordinary Income

     103,681        58,058         147,866   
                         

Ordinary Expenses

     1,381,242        1,026,042         2,490,498   

Interest Expenses

     235,319        179,908         420,287   

Interest on Deposits

     93,535        58,381         164,334   

Interest on Debentures

     6,714        3,986         11,959   

Fee and Commission Expenses

     47,571        51,976         91,271   

Other Operating Expenses

     93,261        59,031         161,584   

General and Administrative Expenses

     657,751        639,393         1,317,247   

Other Ordinary Expenses

     347,338        95,731         500,107   
                         

Ordinary Profits

     103,789        423,829         327,127   
                         

Extraordinary Gains

     98,649        34,961         118,259   

Extraordinary Losses

     58,255        7,713         67,621   
                         

Income before Income Taxes and Minority Interests

     144,183        451,076         377,765   
                         

Income Taxes:

       

Current

     15,542        11,236         25,253   

Refund of Income Taxes

     (3,897        (7,212

Deferred

     (10,773     47,250         25,108   

Total Income Taxes

     871        58,486         43,148   

Net Income before Minority Interests

     143,312        392,590         334,617   

Minority Interests in Net Income

     55,505        50,831         95,212   
                         

Net Income

   ¥ 87,806      ¥ 341,759       ¥ 239,404   
                         

 

1-6


 

(3) CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

 

     Millions of yen  
     For the six
months ended
September 30, 2009
    For the six
months ended
September 30, 2010
    For the fiscal
year ended
March 31, 2010
 

Shareholders’ Equity

      

Common Stock and Preferred Stock

      

Balance as of the end of the previous period

   ¥ 1,540,965      ¥ 1,805,565      ¥ 1,540,965   

Changes during the period

      

Issuance of New Shares

     264,600        375,810        264,600   
                        

Total Changes during the period

     264,600        375,810        264,600   
                        

Balance as of the end of the period

     1,805,565        2,181,375        1,805,565   
                        

Capital Surplus

      

Balance as of the end of the previous period

     411,318        552,135        411,318   

Changes during the period

      

Issuance of New Shares

     271,729        385,544        271,729   

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

     (130,913     —          (130,913
                        

Total Changes during the period

     140,816        385,544        140,816   
                        

Balance as of the end of the period

     552,135        937,680        552,135   
                        

Retained Earnings

      

Balance as of the end of the previous period

     608,053        854,703        608,053   

Changes during the period

      

Cash Dividends

     (131,015     (134,966     (131,015

Net Income

     87,806        341,759        239,404   

Disposition of Treasury Stock

     (661     (1,314     (662

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

     130,913        —          130,913   

Transfer from Revaluation Reserve for Land, net of Taxes

     992        455        8,010   
                        

Total Changes during the period

     88,035        205,934        246,649   
                        

Balance as of the end of the period

     696,088        1,060,637        854,703   
                        

Treasury Stock

      

Balance as of the end of the previous period

     (6,218     (5,184     (6,218

Changes during the period

      

Repurchase of Treasury Stock

     (3     (1     (4

Disposition of Treasury Stock

     1,037        1,989        1,038   
                        

Total Changes during the period

     1,034        1,988        1,033   
                        

Balance as of the end of the period

   ¥ (5,183   ¥ (3,195   ¥ (5,184
                        

 

1-7


     Millions of yen  
     For the six
months ended
September 30, 2009
    For the six
months ended
September 30, 2010
    For the fiscal
year ended
March 31, 2010
 

Total Shareholders’ Equity

      

Balance as of the end of the previous period

   ¥ 2,554,119      ¥ 3,207,219      ¥ 2,554,119   

Changes during the period

      

Issuance of New Shares

     536,329        761,354        536,329   

Cash Dividends

     (131,015     (134,966     (131,015

Net Income

     87,806        341,759        239,404   

Repurchase of Treasury Stock

     (3     (1     (4

Disposition of Treasury Stock

     376        675        376   

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

     —          —          —     

Transfer from Revaluation Reserve for Land, net of Taxes

     992        455        8,010   
                        

Total Changes during the period

     494,486        969,277        653,100   
                        

Balance as of the end of the period

     3,048,605        4,176,496        3,207,219   
                        

Valuation and Translation Adjustments

      

Net Unrealized Gains on Other Securities, net of Taxes

      

Balance as of the end of the previous period

     (519,574     176,931        (519,574

Changes during the period

      

Net Changes in Items other than Shareholders’ Equity

     635,980        (144,425     696,505   
                        

Total Changes during the period

     635,980        (144,425     696,505   
                        

Balance as of the end of the period

     116,406        32,505        176,931   
                        

Net Deferred Hedge Gains, net of Taxes

      

Balance as of the end of the previous period

     67,525        83,093        67,525   

Changes during the period

      

Net Changes in Items other than Shareholders’ Equity

     2,208        59,478        15,568   
                        

Total Changes during the period

     2,208        59,478        15,568   
                        

Balance as of the end of the period

     69,733        142,572        83,093   
                        

Revaluation Reserve for Land, net of Taxes

      

Balance as of the end of the previous period

     146,447        138,430        146,447   

Changes during the period

      

Net Changes in Items other than Shareholders’ Equity

     (999     (477     (8,017
                        

Total Changes during the period

     (999     (477     (8,017
                        

Balance as of the end of the period

   ¥ 145,447      ¥ 137,952      ¥ 138,430   
                        

 

1-8


     Millions of yen  
     For the six
months ended
September 30, 2009
    For the six
months ended
September 30, 2010
    For the fiscal
year ended
March 31, 2010
 

Foreign Currency Translation Adjustments

      

Balance as of the end of the previous period

   ¥ (114,765   ¥ (92,623   ¥ (114,765

Changes during the period

      

Net Changes in Items other than Shareholders’ Equity

     21,535        (7,748     22,141   
                        

Total Changes during the period

     21,535        (7,748     22,141   
                        

Balance as of the end of the period

     (93,230     (100,371     (92,623
                        

Total Valuation and Translation Adjustments

      

Balance as of the end of the previous period

     (420,367     305,831        (420,367

Changes during the period

      

Net Changes in Items other than Shareholders’ Equity

     658,725        (93,171     726,199   
                        

Total Changes during the period

     658,725        (93,171     726,199   
                        

Balance as of the end of the period

     238,357        212,659        305,831   
                        

Stock Acquisition Rights

      

Balance as of the end of the previous period

     1,187        2,301        1,187   

Changes during the period

      

Net Changes in Items other than Shareholders’ Equity

     1,119        476        1,113   
                        

Total Changes during the period

     1,119        476        1,113   
                        

Balance as of the end of the period

     2,307        2,778        2,301   
                        

Minority Interests

      

Balance as of the end of the previous period

     2,051,667        2,321,700        2,051,667   

Changes during the period

      

Net Changes in Items other than Shareholders’ Equity

     265,027        (24,379     270,033   
                        

Total Changes during the period

     265,027        (24,379     270,033   
                        

Balance as of the end of the period

     2,316,695        2,297,321        2,321,700   
                        

Total Net Assets

      

Balance as of the end of the previous period

     4,186,606        5,837,053        4,186,606   

Changes during the period

      

Issuance of New Shares

     536,329        761,354        536,329   

Cash Dividends

     (131,015     (134,966     (131,015

Net Income

     87,806        341,759        239,404   

Repurchase of Treasury Stock

     (3     (1     (4

Disposition of Treasury Stock

     376        675        376   

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

     —          —          —     

Transfer from Revaluation Reserve for Land, net of Taxes

     992        455        8,010   

Net Changes in Items other than Shareholders’ Equity

     924,872        (117,074     997,346   
                        

Total Changes during the period

     1,419,358        852,203        1,650,446   
                        

Balance as of the end of the period

   ¥ 5,605,965      ¥ 6,689,256      ¥ 5,837,053   
                        

(4) NOTE FOR ASSUMPTION OF GOING CONCERN

There is no applicable information.

 

1-9


 

4. INTERIM NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) NON-CONSOLIDATED BALANCE SHEETS

 

     Millions of yen  
     As of
September 30,
2009
    As of
September 30,
2010
    As of
March 31,
2010
(Selected Items)
 

Assets

      

Current Assets

      

Cash and Due from Banks

   ¥ 12,322      ¥ 10,395      ¥ 15,133   

Securities

     —          751,620        —     

Accounts Receivable

     808        3,488        858   

Other Current Assets

     3,397        9,069        4,735   

Total Current Assets

     16,528        774,573        20,727   

Fixed Assets

      

Tangible Fixed Assets

     1,276        1,546        1,205   

Intangible Fixed Assets

     3,708        3,261        3,679   

Investments

     5,208,975        5,200,595        5,200,357   

Investments in Subsidiaries and Affiliates

     5,233,951        5,187,202        5,187,202   

Other Investments

     7,880        13,392        13,155   

Reserve for Possible Losses on Investments

     (32,856     —          —     

Total Fixed Assets

     5,213,961        5,205,402        5,205,243   
                        

Total Assets

   ¥ 5,230,489      ¥ 5,979,975      ¥ 5,225,971   
                        

Liabilities

      

Current Liabilities

      

Short-term Borrowings

   ¥ 700,000      ¥ 700,000      ¥ 700,000   

Short-term Bonds

     270,000        380,000        260,000   

Accrued Corporate Taxes

     65        65        93   

Reserve for Bonus Payments

     260        260        259   

Other Current Liabilities

     5,197        5,659        6,209   

Total Current Liabilities

     975,523        1,085,985        966,562   

Non-Current Liabilities

      

Bonds and Notes

     240,000        240,000        240,000   

Reserve for Employee Retirement Benefits

     1,360        1,622        1,470   

Asset Retirement Obligations

     —          639        —     

Other Non-Current Liabilities

     2,751        6,549        6,792   

Total Non-Current Liabilities

     244,111        248,810        248,262   
                        

Total Liabilities

     1,219,635        1,334,796        1,214,824   
                        

Net Assets

      

Shareholders’ Equity

      

Common Stock and Preferred Stock

     1,805,565        2,181,375        1,805,565   

Capital Surplus

      

Capital Reserve

     649,841        1,025,651        649,841   

Total Capital Surplus

     649,841        1,025,651        649,841   

Retained Earnings

      

Appropriated Reserve

     4,350        4,350        4,350   

Other Retained Earnings

     1,554,688        1,435,279        1,554,974   

Retained Earnings Brought Forward

     1,554,688        1,435,279        1,554,974   

Total Retained Earnings

     1,559,038        1,439,629        1,559,324   

Treasury Stock

     (5,183     (3,195     (5,184
                        

Total Shareholders’ Equity

     4,009,261        4,643,460        4,009,546   
                        

Valuation and Translation Adjustments

      

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

     (51     (66     (44
                        

Total Valuation and Translation Adjustments

     (51     (66     (44
                        

Stock Acquisition Rights

     1,643        1,786        1,643   
                        

Total Net Assets

     4,010,853        4,645,179        4,011,146   
                        

Total Liabilities and Net Assets

   ¥ 5,230,489      ¥ 5,979,975      ¥ 5,225,971   
                        

 

1-10


 

(2) NON-CONSOLIDATED STATEMENTS OF INCOME

 

     Millions of yen  
     For the six
months ended
September 30, 2009
    For the six
months ended
September 30, 2010
    For the fiscal
year ended
March 31, 2010

(Selected Items)
 

Operating Income

   ¥ 19,607      ¥ 32,606      ¥ 33,792   

Operating Expenses

      

General and Administrative Expenses

     9,638        9,615        19,807   

Total Operating Expenses

     9,638        9,615        19,807   
                        

Operating Profits

     9,968        22,991        13,984   
                        

Non-Operating Income

     2,700        5,622        5,753   

Non-Operating Expenses

     9,620        11,843        18,650   
                        

Ordinary Profits

     3,048        16,770        1,086   
                        

Extraordinary Gains

     —          —          2,227   

Extraordinary Losses

     3        202        17   
                        

Income before Income Taxes

     3,044        16,567        3,296   
                        

Income Taxes:

      

Current

     2        2        4   

Deferred

     (50     (20     (88
                        

Total Income Taxes

     (48     (17     (83
                        

Net Income

   ¥ 3,093      ¥ 16,585      ¥ 3,379   
                        

 

1-11


 

(3) NON-CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

 

     Millions of yen  
     For the six
months ended
September 30, 2009
    For the six
months ended
September 30, 2010
    For the fiscal
year ended
March 31, 2010
 

Shareholders’ Equity

      

Common Stock and Preferred Stock

      

Balance as of the end of the previous period

   ¥ 1,540,965      ¥ 1,805,565      ¥ 1,540,965   

Changes during the period

      

Issuance of New Shares

     264,600        375,810        264,600   
                        

Total Changes during the period

     264,600        375,810        264,600   
                        

Balance as of the end of the period

     1,805,565        2,181,375        1,805,565   
                        

Capital Surplus

      

Capital Reserve

      

Balance as of the end of the previous period

     385,241        649,841        385,241   

Changes during the period

      

Issuance of New Shares

     264,600        375,810        264,600   
                        

Total Changes during the period

     264,600        375,810        264,600   
                        

Balance as of the end of the period

     649,841        1,025,651        649,841   
                        

Total Capital Surplus

      

Balance as of the end of the previous period

     385,241        649,841        385,241   

Changes during the period

      

Issuance of New Shares

     264,600        375,810        264,600   
                        

Total Changes during the period

     264,600        375,810        264,600   
                        

Balance as of the end of the period

     649,841        1,025,651        649,841   
                        

Retained Earnings

      

Appropriated Reserve

      

Balance as of the end of the previous period

     4,350        4,350        4,350   

Changes during the period

      

Total Changes during the period

     —          —          —     
                        

Balance as of the end of the period

     4,350        4,350        4,350   
                        

Other Retained Earnings

      

Retained Earnings Brought Forward

      

Balance as of the end of the previous period

     1,683,272        1,554,974        1,683,272   

Changes during the period

      

Cash Dividends

     (131,015     (134,966     (131,015

Net Income

     3,093        16,585        3,379   

Disposition of Treasury Stock

     (661     (1,314     (662
                        

Total Changes during the period

     (128,583     (119,695     (128,297
                        

Balance as of the end of the period

     1,554,688        1,435,279        1,554,974   
                        

Total Retained Earnings

      

Balance as of the end of the previous period

     1,687,622        1,559,324        1,687,622   

Changes during the period

      

Cash Dividends

     (131,015     (134,966     (131,015

Net Income

     3,093        16,585        3,379   

Disposition of Treasury Stock

     (661     (1,314     (662
                        

Total Changes during the period

     (128,583     (119,695     (128,297
                        

Balance as of the end of the period

   ¥ 1,559,038      ¥ 1,439,629      ¥ 1,559,324   
                        

 

1-12


 

 

    Millions of yen  
    For the six
months ended
September 30, 2009
    For the six
months ended
September 30, 2010
    For the fiscal
year ended
March 31, 2010
 

Treasury Stock

     

Balance as of the end of the previous period

  ¥ (6,218   ¥ (5,184   ¥ (6,218

Changes during the period

     

Repurchase of Treasury Stock

    (3     (1     (4

Disposition of Treasury Stock

    1,037        1,989        1,038   
                       

Total Changes during the period

    1,034        1,988        1,033   
                       

Balance as of the end of the period

    (5,183     (3,195     (5,184
                       

Total Shareholders’ Equity

     

Balance as of the end of the previous period

    3,607,610        4,009,546        3,607,610   

Changes during the period

     

Issuance of New Shares

    529,200        751,620        529,200   

Cash Dividends

    (131,015     (134,966     (131,015

Net Income

    3,093        16,585        3,379   

Repurchase of Treasury Stock

    (3     (1     (4

Disposition of Treasury Stock

    376        675        376   
                       

Total Changes during the period

    401,650        633,913        401,936   
                       

Balance as of the end of the period

    4,009,261        4,643,460        4,009,546   
                       

Valuation and Translation Adjustments

     

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

     

Balance as of the end of the previous period

    (32     (44     (32

Changes during the period

     

Net Changes in Items other than Shareholders’ Equity

    (19     (22     (12
                       

Total Changes during the period

    (19     (22     (12
                       

Balance as of the end of the period

    (51     (66     (44
                       

Stock Acquisition Rights

     

Balance as of the end of the previous period

    1,032        1,643        1,032   

Changes during the period

     

Net Changes in Items other than Shareholders’ Equity

    611        142        611   
                       

Total Changes during the period

    611        142        611   
                       

Balance as of the end of the period

    1,643        1,786        1,643   
                       

Total Net Assets

     

Balance as of the end of the previous period

    3,608,611        4,011,146        3,608,611   

Changes during the period

     

Issuance of New Shares

    529,200        751,620        529,200   

Cash Dividends

    (131,015     (134,966     (131,015

Net Income

    3,093        16,585        3,379   

Repurchase of Treasury Stock

    (3     (1     (4

Disposition of Treasury Stock

    376        675        376   

Net Changes in Items other than Shareholders’ Equity

    591        120        598   
                       

Total Changes during the period

    402,242        634,033        402,534   
                       

Balance as of the end of the period

  ¥ 4,010,853      ¥ 4,645,179      ¥ 4,011,146   
                       

(4) NOTE FOR ASSUMPTION OF GOING CONCERN

There is no applicable information.

 

1-13


 

Summary Results for the Second Quarter (First Half) of Fiscal 2010

I. Summary of Income Analysis

 

Ø  

Consolidated Net Business Profits

 

   

Consolidated Gross Profits for the first half of fiscal 2010 increased by JPY 95.6 billion on a year-on-year basis to JPY 1,100.8 billion.

Gross Profits of the banking subsidiaries increased by JPY 94.8 billion on a year-on-year basis (increased by JPY 139.8 billion after the adjustment of the impact for fiscal 2009 of a change in the recipients of dividend payments under our schemes for capital raising through issuance of preferred debt securities by SPCs). This is due to an increase in income from the Trading segment derived from flexible and timely operations properly interpreting market trends, in addition to a year-on-year increase in income from Customer Groups (JPY 22.0 billion), both domestically and overseas, arising mainly from non-interest income.

G&A expenses decreased by JPY 11.9 billion on a year-on-year basis mainly due to our overall cost reduction efforts.

 

   

Aggregated consolidated Gross Profits (Net Operating Revenues) of our two securities subsidiaries (Mizuho Securities and Mizuho Investors Securities) decreased by JPY 19.3 billion on a year-on-year basis.

 

   

As a result, Consolidated Net Business Profits amounted to JPY 464.9 billion, a year-on-year increase of JPY 105.4 billion.

 

Ø  

Consolidated Net Income

 

   

Credit-related Costs of the 3 Banks amounted to a reversal of JPY 25.2 billion, an improvement of JPY142.2 billion on a year-on-year basis, primarily due to improved obligor classifications through our business revitalization support to corporate customers and other factors. Consolidated Credit-related Costs also amounted to a reversal of JPY 8.5 billion, an improvement of JPY 170.3 billion on a year-on-year basis.

 

   

Net Losses related to Stocks of the 3 Banks amounted to JPY 15.0 billion. This is mainly as a consequence of recording devaluation losses for certain stocks after a decline in stock prices, despite recording Gains on Sales through our efforts to reduce our stock portfolio.

 

   

As a result, Consolidated Net Income for the first half of fiscal 2010 increased by JPY 253.9 billion on a year-on-year basis to JPY 341.7 billion, which far exceeds our planned net income amount for the first half of fiscal 2010 (JPY 180 billion).

(Consolidated)

 

      1H of FY2010
(Apr. 1 - Sep. 30, 2010)
 
            Change from
1H of FY2009
 
(JPY Bn)              

Consolidated Gross Profits

     1,100.8         95.6   

Consolidated Net Business Profits *

     464.9         105.4   

Credit-related Costs

     8.5         170.3   

Net Gains (Losses) related to Stocks

     -10.5         -30.7   

Ordinary Profits

     423.8         320.0   

Net Income

     341.7         253.9   

 

  * 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

 

      1H of FY2010
(Apr. 1 - Sep. 30, 2010)
 
            Change from
1H of FY2009
 
(JPY Bn)              

Gross Profits

     885.4         94.8

G&A Expenses (excluding Non-Recurring Losses)

     -440.3         11.9   

Net Business Profits

     445.1         106.7

Credit-related Costs

     25.2         142.2   

Net Gains (Losses) related to Stocks

     -15.0         -39.1   

Ordinary Profits

     355.2         260.7   

Net Income

     355.0         226.8   

 

  * The results of “1H of FY2009” included the impact on banking subsidiaries (JPY 45.0 billion, eliminated on a consolidated basis) of a change in the recipients of dividend payments under our schemes for capital raising through issuance of preferred debt securities by SPCs. After adjustment for this impact, the change from 1H of FY2009 for Gross Profits is JPY 139.8 billion, and that for Net Business Profits is JPY 151.8 billion, respectively

 

2-1


 

Ø  

Net Interest Income

 

   

The average loan balance for the first half of fiscal 2010 decreased by JPY 1.9 trillion from the second half of fiscal 2009. This is due to a decrease in domestic loans mainly to large corporate customers and overseas loans (including foreign exchange translation impact).

 

   

The domestic loan-and-deposit rate margin for the same period was 1.36% and slightly decreased by 0.03% from the second half of fiscal 2009, mainly due to a decline in the return on loans that followed the decline of market rates.

LOGO

 

Ø  

Non-Interest Income

 

   

Non-interest income from Customer Groups of the 3 Banks (managerial accounting basis) for the first half of fiscal 2010 increased by JPY 30.8 billion on a year-on-year basis.

 

   

As well as income associated with investment trusts and individual annuities from individual customers substantially increasing on a year-on-year basis, income associated with foreign exchange business, overseas business, trust and asset management business of Mizuho Trust & Banking and other factors also increased.

LOGO

 

2-2


 

II. Financial Soundness

 

   

The balance of Disclosed Claims under the Financial Reconstruction Law (3 Banks) decreased from that as of March 31, 2010. NPL Ratio also remained at a low level of 1.90%.

 

   

The balance of Consolidated Net Deferred Tax Assets decreased by JPY 73.7 billion from that as of March 31, 2010, and the ratio to Tier 1 Capital was 7.1%, a decline of 2.9% from March 31, 2010.

 

   

Our Consolidated Capital Adequacy Ratio was 15.40%, an improvement of 1.94% from that as of March 31, 2010.

 

     September 30, 2010  
           Change from
Mar. 31, 2010
 
(JPY Bn, %)             

Consolidated Capital Adequacy Ratio

     15.40     1.94

(Total Risk-based Capital)

     (8,180.7     (522.6

Tier 1 Capital Ratio

     11.78     2.69

(Tier 1 Capital)

     (6,260.1     (1,086.6

Net Deferred Tax Assets (DTAs) (Consolidated)

     447.0        -73.7   

Net DTAs / Tier 1 Ratio

     7.1     -2.9

Disclosed Claims under the Financial Reconstruction Law (3 Banks)

     1,302.0        -17.8   

NPL Ratio

     1.90     -0.00

(Net NPL Ratio *1)

     (0.85 %)      (0.06 %) 

Unrealized Gains (Losses) on Other Securities (Consolidated) *2

     102.4        -165.2   

 

*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

III. Disciplined Capital Management

 

   

In July 2010, we issued common stock (the number of shares issued: 6 billion shares, total amount paid: JPY 751.6 billion). This was aimed at establishing capital base as a cornerstone for our sustainable growth for the future, in anticipation of the revision of capital regulations. Meanwhile, we recorded Consolidated Net Income of JPY 341.7 billion for the first half of fiscal 2010.

 

   

It has become increasingly important for financial institutions to strengthen capital base amid the ongoing global discussions on the revision of capital regulations. Therefore, as our medium-term target, we aim to increase our consolidated Tier 1 capital ratio to 12% level and our prime capital(*1) ratio to 8% or above, and as of September 30, 2010, our consolidated Tier 1 capital ratio and our prime capital ratio were 11.78% and 8.10%, respectively, as a result of the common stock issuance and the enhanced Consolidated Net Income in the first half of fiscal 2010.

 

   

We announced Mizuho’s Transformation Program in May 2010, and are addressing the issues for improving profitability and enhancing financial base. We will strive to further strengthen our financial base mainly by accumulating retained earnings and improving asset efficiency through the steady implementation of the Program. Accordingly, we believe we will be able to sufficiently meet new capital regulations.

Our preliminary simulation indicates that a common equity capital ratio(*2) of mid-8% is assumed as of the end of fiscal 2012, when the new capital regulation will be implemented.

 

   

We continue to pursue “disciplined capital management” policy, optimally balancing “strengthening of stable capital base” and “steady returns to shareholders” in accordance with changes in the business environment, our financial condition or other factors.

 

(*1) Prime Capital = Tier 1 capital - preferred debt securities - preferred stock (excluding mandatory convertible preferred stock)

 

(*2) Common equity capital ratio: calculated based on the inclusion of the Eleventh Series Class XI Preferred Stock(*3) that will be mandatorily converted in July 2016.

At this moment, details - such as the calculation method for the capital adequacy ratio in the new capital regulation - have yet to be determined. Therefore, the estimates above are estimated by Mizuho Financial Group based on the publicly-available materials issued so far.

 

(*3) The outstanding balance of Eleventh Series Class XI Preferred Stock as of September 30, 2010 (excluding treasury stock) was JPY 486.0 billion (48.5% out of JPY 943.7 billion of the initial amount issued had been already converted into common stock).

 

2-3


 

Earnings Plan for Fiscal 2010

(Figures below are on a consolidated basis)

 

Ø  

We plan Consolidated Net Business Profits for fiscal 2010 to be JPY 820.0 billion, an increase of JPY 70.0 billion compared with the original plan(*) based on the results for the first half of fiscal 2010 (an increase of JPY 117.3 billion compared with the previous fiscal year).

We endeavor to further strengthen profitability primarily in non-interest income from Customer Groups of the banking subsidiaries mainly by enhancing further the group synergies.

(*) compared with the original plan announced on May 14, 2010

 

Ø  

We anticipate Credit-related Costs to be JPY -85.0 billion, mainly by continued thorough credit management from the first half of fiscal 2010.

 

Ø  

Based on the above, we plan Consolidated Net Income to be JPY 500.0 billion, an increase of JPY 70.0 billion compared with the original plan.

 

Ø  

It has become increasingly important for financial institutions to strengthen capital base, and we plan to make cash dividend payments of JPY 6 per share of common stock for the fiscal year ending March 31, 2011, unchanged from our existing estimate, in consideration of the balance between “strengthening of stable capital base” and “steady returns to shareholders”. We plan to make dividend payments on preferred stock as prescribed.

(Consolidated)

 

     FY2010 (Plan)  
            Change from
FY2009
 
(JPY Bn)              

Consolidated Net Business Profits*

     820.0         117.3   

Credit-related Costs

     -85.0         134.3   

Net Gains (Losses) related to Stocks

     -15.0         -19.2   

Ordinary Profits

     670.0         342.8   

Net Income

     500.0         260.5   

 

* 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

 

     FY2010 (Plan)  
             Change from
FY2009
 
(JPY Bn)              

Net Business Profits*

     770.0         84.0   

Credit-related Costs

     -49.0         108.1   

Net Gains (Losses) related to Stocks

     -15.0         -25.9   

Ordinary Profits

     555.0         249.3   

Net Income

     506.0         192.8   

 

* The figure of FY2009 included the impact on banking subsidiaries (JPY 77.5 billion) of a change in the recipients of dividend payments under our schemes for capital raising through issuance of preferred securities by SPCs

 

 

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; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Management Policy and other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

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.

MHFG is a specified business company under “Cabinet Office Ordinance on Disclosure of Corporate Information, etc.” Article 17-15 clause 2 and prepares the interim consolidated and interim non-consolidated financial statements in the second quarter.

 

 

 

2-4


 

[Reference]

Breakdown of Earnings by Business Segment

 

[3 Banks]    1H of FY2010
(Apr. 1 - Sep. 30, 2010)
        
            Change from
1H of FY2009
        
(JPY Bn)                     

Gross Profits

     611.0         22.0      

G&A Expenses

     -355.6         4.4      

Customer Groups

     255.3         26.4      

Gross Profits

     274.4         72.8         (117.9

G&A Expenses

     -84.6         7.5      

Trading & Others

     189.7         80.2         (125.3

Gross Profits

     885.4         94.8         (139.8

G&A Expenses

     -440.3         11.9      

Net Business Profits

     445.1         106.7         (151.8

 

(Note)   The figures in parentheses reflect the adjustment of the impact on banking subsidiaries (JPY 45.0 billion, eliminated on a consolidated basis) of a change in the recipients of dividend payments under our schemes for capital raising through issuance of preferred debt securities by SPCs

 

 

Definition

3 Banks: Aggregate figures for Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking on a non-consolidated basis.

 

 

 

2-5


 

SELECTED FINANCIAL INFORMATION

For the Second Quarter (First Half) of Fiscal 2010

(Six months ended September 30, 2010)

<Under Japanese GAAP>

 

 

LOGO

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 2010

   See above Notes    Page  

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

   CON        3- 19   

II. REVIEW OF CREDITS

   See above Notes    Page  

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    Page  

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. OTHERS

   See above Notes    Page  

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 Plan for Fiscal 2010

     CON       NON(B)      3- 47   

Attachments

   See above Notes    Page  

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; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Management Policy and other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

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.

 


 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2010

1. Income Analysis

Consolidated

 

            (Millions of yen)  
            First Half of
Fiscal 2010
    Change     First Half of
Fiscal 2009
 

Consolidated Gross Profits

     1         1,100,896        95,698        1,005,198   

Net Interest Income

     2         553,544        (27,534     581,078   

Fiduciary Income

     3         24,058        (92     24,150   

Credit Costs for Trust Accounts

     4         —          —          —     

Net Fee and Commission Income

     5         219,169        (2,855     222,025   

Net Trading Income

     6         177,612        (20,298     197,911   

Net Other Operating Income

     7         126,511        146,478        (19,967

General and Administrative Expenses

     8         (639,393     18,357        (657,751

Personnel Expenses

     9         (312,781     19,511        (332,293

Non-Personnel Expenses

     10         (299,928     (72     (299,856

Miscellaneous Taxes

     11         (26,683     (1,081     (25,601

Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans)

     12         (29,982     160,806        (190,788

Losses on Write-offs of Loans

     13         (29,429     40,139        (69,568

Reversal of (Provision for) Reserves for Possible Losses on Loans

     14         —          111,922        (111,922

Net Gains (Losses) related to Stocks

     15         (10,567     (30,793     20,225   

Equity in Income from Investments in Affiliates

     16         2,503        1,057        1,446   

Other

     17         372        74,912        (74,540
                           

Ordinary Profits

     18         423,829        320,039        103,789   

Net Extraordinary Gains (Losses)

     19         27,247        (13,145     40,393   

Reversal of Reserves for Possible Losses on Loans, etc.

     20         38,543        9,544        28,998   

Reversal of Reserve for Possible Losses on Investments

     21         7        7        —     
                           

Income before Income Taxes and Minority Interests

     22         451,076        306,893        144,183   

Income Taxes - Current *

     23         (11,236     408        (11,644

              - Deferred

     24         (47,250     (58,023     10,773   

Net Income before Minority Interests

     25         392,590        249,278        143,312   

Minority Interests in Net Income

     26         (50,831     4,674        (55,505
                           

Net Income

     27         341,759        253,952        87,806   
                           

 

* Income Taxes - Current [23] includes Refund of Income Taxes.

 

Credit-related Costs

(including Credit Costs for Trust Accounts)

     28           8,561         170,350        (161,789

 

*  Credit-related Costs [28] = 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. [20] + Credit Costs for Trust Accounts [4]

    

(Reference)             

Consolidated Net Business Profits

     29           464,991         105,475        359,516   

 

*  Consolidated Net Business Profits [29] = 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

     30           163         (1     164   

Number of affiliates under the equity method

     31           21         (2     23   

 

3-1


 

Aggregated Figures of the 3 Banks

Non-Consolidated

 

            (Millions of yen)  
            First Half of Fiscal 2010     First Half of
Fiscal 2009
 
            MHBK     MHCB     MHTB     Aggregated
Figures
    Change    

Gross Profits

     1         421,693        397,221        66,538        885,453        94,804        790,648   

Domestic Gross Profits

     2         360,060        177,617        62,323        600,001        22,435        577,566   

Net Interest Income

     3         273,537        108,651        18,240        400,429        (26,429     426,858   

Fiduciary Income

     4             23,806        23,806        8        23,797   

Credit Costs for Trust Accounts

     5             —          —          —          —     

Net Fee and Commission Income

     6         68,361        29,064        13,387        110,813        6,848        103,965   

Net Trading Income

     7         1,865        9,413        2,659        13,937        (5,004     18,942   

Net Other Operating Income

     8         16,295        30,488        4,230        51,014        47,011        4,003   

International Gross Profits

     9         61,633        219,603        4,214        285,451        72,369        213,082   

Net Interest Income

     10         12,347        96,185        2,043        110,577        (23,191     133,769   

Net Fee and Commission Income

     11         5,526        27,426        (23     32,929        819        32,109   

Net Trading Income

     12         40,798        36,779        (1,221     76,356        1,064        75,291   

Net Other Operating Income

     13         2,960        59,211        3,416        65,588        93,676        (28,088

General and Administrative Expenses (excluding Non-Recurring Losses)

     14         (279,368     (116,517     (44,465     (440,350     11,950        (452,301

Expense Ratio

     15         66.2     29.3     66.8     49.7     (7.4 %)      57.2

Personnel Expenses

     16         (93,812     (40,794     (16,978     (151,585     7,661        (159,247

Non-Personnel Expenses

     17         (169,783     (69,691     (26,206     (265,681     5,401        (271,082

Premium for Deposit Insurance

     18         (23,231     (3,579     (1,350     (28,161     (921     (27,239

Miscellaneous Taxes

     19         (15,771     (6,031     (1,280     (23,083     (1,111     (21,971
                                                   

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) *1

     20         142,325        280,703        22,073        445,102        106,755        338,347   

Excluding Net Gains (Losses) related to Bonds

     21         113,452        190,876        14,492        318,821        (3,170     321,992   
                                                   

Reversal of (Provision for) General Reserve for Possible Losses on Loans

     22         —          —          504        504        (24,997     25,502   
                                                   

Net Business Profits

     23         142,325        280,703        22,578        445,607        81,757        363,849   

Net Gains (Losses) related to Bonds

     24         28,872        89,826        7,581        126,281        109,926        16,354   
                                                   

Net Non-Recurring Gains (Losses)

     25         (53,041     (30,224     (7,051     (90,317     179,015        (269,333

Net Gains (Losses) related to Stocks

     26         (6,258     (7,865     (904     (15,029     (39,133     24,104   

Expenses related to Portfolio Problems

     27         (25,306     (3,656     (1,916     (30,879     138,903        (169,783

Other

     28         (21,476     (18,701     (4,230     (44,408     79,246        (123,654
                                                   

Ordinary Profits

     29         89,283        250,479        15,526        355,289        260,773        94,516   
                                                   

Net Extraordinary Gains (Losses)

     30         25,312        19,029        449        44,790        20,970        23,820   

Net Gains (Losses) on Disposition of Fixed Assets

     31         (732     (785     (43     (1,560     786        (2,347

Losses on Impairment of Fixed Assets

     32         (1,633     (814     (2     (2,451     268        (2,719

Reversal of Reserves for Possible Losses on Loans, etc.

     33         28,113        27,513        35        55,662        28,340        27,322   

Reversal of Reserve for Possible Losses on Investments

     34         9        83        —          93        93        —     

Income before Income Taxes

     35         114,595        269,508        15,976        400,080        281,744        118,336   

Income Taxes - Current *2

     36         (247     (4,670     (4     (4,922     (4,142     (780

              - Deferred

     37         12,669        (49,142     (3,675     (40,148     (50,728     10,579   
                                                   

Net Income

     38         127,017        215,695        12,297        355,009        226,873        128,135   
                                                   

 

*1.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].

*2.Income Taxes - Current [36] includes Refund of Income Taxes.

   

  

Credit-related Costs

     39         2,807        23,856        (1,376     25,288        142,246        (116,958

 

*  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         16,341        18,183        504        35,029        9,527        25,502   

Losses on Write-offs of Loans

     42         (8,439     4,244        (1,408     (5,602     37,602        (43,205

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

     43         (4,229     791        (508     (3,946     87,038        (90,984

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

     44         —          161        0        161        34        126   

Reversal of (Provision for) Reserve for Contingencies

     45         —          606        35        641        (633     1,274   

Other (including Losses on Sales of Loans)

     46         (865     (129     —          (995     8,677        (9,672

Total

     47         2,807        23,856        (1,376     25,288        142,246        (116,958

 

3-2


 

Mizuho Bank

Non-Consolidated

            (Millions of yen)  
            First Half of
Fiscal 2010
    Change     First Half of
Fiscal 2009
 

Gross Profits

     1         421,693        13,469        408,224   

Domestic Gross Profits

     2         360,060        (8,137     368,198   

Net Interest Income

     3         273,537        (22,997     296,535   

Net Fee and Commission Income

     4         68,361        4,788        63,572   

Net Trading Income

     5         1,865        (853     2,718   

Net Other Operating Income

     6         16,295        10,924        5,371   

International Gross Profits

     7         61,633        21,607        40,026   

Net Interest Income

     8         12,347        (2,877     15,224   

Net Fee and Commission Income

     9         5,526        544        4,982   

Net Trading Income

     10         40,798        (1,347     42,145   

Net Other Operating Income

     11         2,960        25,287        (22,326

General and Administrative Expenses (excluding Non-Recurring Losses)

     12         (279,368     5,637        (285,005

Expense Ratio

     13         66.2     (3.5 %)      69.8

Personnel Expenses

     14         (93,812     4,247        (98,060

Non-Personnel Expenses

     15         (169,783     2,329        (172,112

Premium for Deposit Insurance

     16         (23,231     (635     (22,595

Miscellaneous Taxes

     17         (15,771     (939     (14,831
                           

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)

     18         142,325        19,106        123,218   

Excluding Net Gains (Losses) related to Bonds

     19         113,452        (7,231     120,684   
                           

Reversal of (Provision for) General Reserve for Possible Losses on Loans

     20         —          (2,368     2,368   
                           

Net Business Profits

     21         142,325        16,738        125,587   

Net Gains (Losses) related to Bonds

     22         28,872        26,338        2,534   

Net Non-Recurring Gains (Losses)

     23         (53,041     53,471        (106,512

Net Gains (Losses) related to Stocks

     24         (6,258     304        (6,562

Expenses related to Portfolio Problems

     25         (25,306     43,424        (68,730

Other

     26         (21,476     9,742        (31,219
                           

Ordinary Profits

     27         89,283        70,209        19,074   
                           

Net Extraordinary Gains (Losses)

     28         25,312        10,174        15,137   

Net Gains (Losses) on Disposition of Fixed Assets

     29         (732     836        (1,569

Losses on Impairment of Fixed Assets

     30         (1,633     (1,332     (301

Reversal of Reserves for Possible Losses on Loans, etc.

     31         28,113        11,612        16,501   

Reversal of Reserve for Possible Losses on Investments

     32         9        9        —     

Income before Income Taxes

     33         114,595        80,384        34,211   

Income Taxes - Current

     34         (247     23        (271

              - Deferred

     35         12,669        (7,223     19,892   
                           

Net Income

     36         127,017        73,184        53,833   
                           

Credit-related Costs

     37         2,807        52,668        (49,860

 

*  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         16,341        13,973        2,368   

Losses on Write-offs of Loans

     39         (8,439     15,282        (23,721

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

     40         (4,229     22,348        (26,577

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

     41         —          —          —     

Reversal of (Provision for) Reserve for Contingencies

     42         —          —          —     

Other (including Losses on Sales of Loans)

     43         (865     1,064        (1,929

Total

     44         2,807        52,668        (49,860

 

3-3


 

Mizuho Corporate Bank

Non-Consolidated

 

            (Millions of yen)  
            First Half of
Fiscal 2010
    Change     First Half of
Fiscal 2009
 

Gross Profits

     1         397,221        78,574        318,646   

Domestic Gross Profits

     2         177,617        27,381        150,236   

Net Interest Income

     3         108,651        (766     109,417   

Net Fee and Commission Income

     4         29,064        679        28,384   

Net Trading Income

     5         9,413        (5,154     14,568   

Net Other Operating Income

     6         30,488        32,622        (2,133

International Gross Profits

     7         219,603        51,193        168,409   

Net Interest Income

     8