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 January 2011
Commission File Number 001-33098
Mizuho Financial Group, Inc.
(Translation of registrants 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: | January 28, 2011 | |
Mizuho Financial Group, Inc. | ||
By: | /s/ Takeo Nakano | |
Name: | Takeo Nakano | |
Title: | Managing Director / CFO |
The following is an English translation of excerpt regarding Basel II capital adequacy disclosure and relevant information released in our Japanese language disclosure material published in January 2011. The capital adequacy disclosure and other financial information included herein are based on Japanese GAAP pursuant to Japanese regulatory requirements.
In this report, we, us, and our refer to Mizuho Financial Group, Inc. and, unless the context indicates otherwise, its consolidated subsidiaries. Mizuho Financial Group refers to Mizuho Financial Group, Inc.
2 | ||||
Status of Mizuho Financial Groups consolidated capital adequacy |
3 | |||
3 | ||||
(1) Summary table of consolidated capital adequacy ratio (BIS standard) |
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14 | ||||
(2) Required capital by portfolio classification |
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16 | ||||
(3) Credit risk exposure, etc. |
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31 | ||||
(4) Credit risk mitigation by portfolio classification |
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n Counterparty risk in derivatives transactions and long-settlement transactions |
32 | |||
(5) Status of counterparty risk in derivatives transactions and long-settlement transactions |
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34 | ||||
(6) Quantitative disclosure items for securitization exposure |
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41 | ||||
42 | ||||
(7) Status of equity exposure in banking book
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1
Capital adequacy ratio highlights
The Basel II Framework, based on the International Convergence of Capital Measurement and Capital Standards: A Revised Framework issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy information to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the Matters Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions, etc. pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law (Ministry of Finance Ordinance No. 10 of 1982) (FSA Notice No. 15 of 2007).
As a method to calculate the amount of credit risk-weighted assets under the Basel II Framework, we have adopted the advanced internal ratings-based approach. In addition, as a method to calculate the amount equivalent to the operational risk, we have adopted the advanced measurement approach.
n Capital adequacy ratio highlights
Mizuho Financial Group (Consolidated)
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Consolidated capital adequacy ratio (BIS standard) |
12.89 | % | 15.40 | % | ||||
Tier 1 capital ratio |
8.69 | % | 11.78 | % | ||||
Tier 1 capital |
5,147.4 | 6,260.1 | ||||||
Tier 2 capital |
2,733.4 | 2,262.9 | ||||||
Deductions for total risk-based capital |
250.8 | 342.4 | ||||||
Total risk-based capital |
7,630.0 | 8,180.7 | ||||||
Risk-weighted assets |
59,170.0 | 53,121.1 |
(Reference)
Mizuho Corporate Bank (Consolidated)
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Consolidated capital adequacy ratio (BIS standard) |
14.53 | % | 17.15 | % | ||||
Tier 1 capital ratio |
11.44 | % | 14.38 | % | ||||
Tier 1 capital |
3,784.5 | 4,128.3 | ||||||
Tier 2 capital |
1,205.3 | 926.9 | ||||||
Deductions for total risk-based capital |
184.3 | 134.1 | ||||||
Total risk-based capital |
4,805.6 | 4,921.1 | ||||||
Risk-weighted assets |
33,072.0 | 28,694.0 |
Mizuho Corporate Bank (Non-consolidated)
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Non-consolidated capital adequacy ratio (BIS standard) |
15.60 | % | 18.87 | % | ||||
Tier 1 capital ratio |
10.39 | % | 14.18 | % | ||||
Tier 1 capital |
3,136.8 | 3,633.3 | ||||||
Tier 2 capital |
1,659.5 | 1,250.0 | ||||||
Deductions for total risk-based capital |
89.4 | 49.6 | ||||||
Total risk-based capital |
4,707.0 | 4,833.7 | ||||||
Risk-weighted assets |
30,165.4 | 25,608.9 |
Mizuho Bank (Consolidated)
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Consolidated capital adequacy ratio (Domestic standard) |
12.77 | % | 13.01 | % | ||||
Tier 1 capital ratio |
7.49 | % | 8.40 | % | ||||
Tier 1 capital |
1,836.2 | 1,972.8 | ||||||
Tier 2 capital |
1,355.9 | 1,174.0 | ||||||
Deductions for total risk-based capital |
63.0 | 90.5 | ||||||
Total risk-based capital |
3,129.2 | 3,056.4 | ||||||
Risk-weighted assets |
24,493.7 | 23,482.6 | ||||||
(Reference) Consolidated capital adequacy ratio (BIS standard) |
12.75 | % | 12.91 | % |
Mizuho Bank (Non-Consolidated)
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Non-consolidated capital adequacy ratio (Domestic standard) |
12.99 | % | 13.09 | % | ||||
Tier 1 capital ratio |
7.64 | % | 8.52 | % | ||||
Tier 1 capital |
1,797.3 | 1,931.5 | ||||||
Tier 2 capital |
1,355.0 | 1,173.3 | ||||||
Deductions for total risk-based capital |
99.2 | 136.2 | ||||||
Total risk-based capital |
3,053.1 | 2,968.6 | ||||||
Risk-weighted assets |
23,502.3 | 22,670.0 | ||||||
(Reference) Non-consolidated capital adequacy ratio (BIS standard) |
12.93 | % | 12.97 | % |
2
Status of Mizuho Financial Groups consolidated capital adequacy
n Consolidated capital adequacy ratio
(1) Summary table of consolidated capital adequacy ratio (BIS standard)
(Billions of yen) | ||||||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||||||
Tier 1 capital | Common stock and preferred stock | 1,805.5 | 2,181.3 | |||||||||
Non-cumulative perpetual preferred stock |
| | ||||||||||
Advance payment for new shares | | | ||||||||||
Capital surplus | 552.1 | 937.6 | ||||||||||
Retained earnings | 696.0 | 1,060.6 | ||||||||||
Less: Treasury stock | 5.1 | 3.1 | ||||||||||
Advance payment for treasury stock | | | ||||||||||
Less: Dividends (estimate), etc | | | ||||||||||
Less: Unrealized losses on other securities | | | ||||||||||
Foreign currency translation adjustments | (93.2 | ) | (100.3 | ) | ||||||||
Stock acquisition rights | 2.3 | 2.7 | ||||||||||
Minority interest in consolidated subsidiaries | 2,296.4 | 2,279.7 | ||||||||||
Preferred securities issued by overseas SPCs |
1,937.1 | 1,919.1 | ||||||||||
Less: Goodwill equivalent | | | ||||||||||
Less: Intangible fixed assets recognized as a result of a merger |
42.9 | 40.4 | ||||||||||
Less: Capital increase due to securitization transactions |
7.1 | 5.9 | ||||||||||
Less: 50% of excess of expected losses relative to eligible reserves by banks adopting internal ratings-based approach |
56.5 | 52.0 | ||||||||||
Total of Tier 1 capital before deduction of deferred tax assets (total of the above items) |
5,147.4 | 6,260.1 | ||||||||||
Deduction for deferred tax assets | | | ||||||||||
Total | (A) | 5,147.4 | 6,260.1 | |||||||||
Preferred securities with a step-up interest rate provision |
(B) | 524.0 | 524.0 | |||||||||
Ratio to Tier 1 = (B) / (A) X 100 |
10.17 | % | 8.37 | % | ||||||||
Tier 2 capital | 45% of unrealized gains on other securities | 73.1 | 48.4 | |||||||||
45% of revaluation reserve for land | 112.1 | 106.4 | ||||||||||
General reserve for possible losses on loans | 5.6 | 4.5 | ||||||||||
Excess of eligible reserves relative to expected losses by banks adopting internal ratings-based approach |
| | ||||||||||
Debt capital, etc. | 2,542.5 | 2,103.4 | ||||||||||
Perpetual subordinated debt and other debt capital |
629.6 | 366.0 | ||||||||||
Dated subordinated debt and redeemable preferred stock |
1,912.8 | 1,737.4 | ||||||||||
Total | 2,733.4 | 2,262.9 | ||||||||||
Tier 2 capital included as qualifying capital |
(C) | 2,733.4 | 2,262.9 | |||||||||
Tier 3 capital | Short-term subordinated debt | | | |||||||||
Tier 3 capital included as qualifying capital |
(D) | | | |||||||||
Deductions for total risk-based capital | Deductions for total risk-based capital | (E) | 250.8 | 342.4 | ||||||||
Total risk-based capital | (A) + (C) + (D) (E) | (F) | 7,630.0 | 8,180.7 | ||||||||
Risk-weighted assets | Credit risk-weighted assets | (G) | 53,869.9 | 48,297.1 | ||||||||
On-balance-sheet items |
44,084.7 | 39,658.3 | ||||||||||
Off-balance-sheet items |
9,785.2 | 8,638.7 | ||||||||||
Market risk equivalent assets [(I)/8%] | (H) | 1,384.1 | 1,335.3 | |||||||||
(Reference) Market risk equivalent | (I) | 110.7 | 106.8 | |||||||||
Operational risk equivalent assets [(K)/8%] | (J) | 3,915.8 | 3,488.7 | |||||||||
(Reference) Operational risk equivalent | (K) | 313.2 | 279.1 | |||||||||
Adjusted floor amount | (L) | | n.a. | |||||||||
Adjusted amount for credit risk-weighted assets |
(M) | n.a. | | |||||||||
Adjusted amount for operational risk equivalent |
(N) | n.a. | | |||||||||
Total [(G) + (H) + (J) + (L) + (M) + (N)] | (O) | 59,170.0 | 53,121.1 | |||||||||
Consolidated capital adequacy ratio (BIS standard) = (F) / (O) X 100 |
12.89 | % | 15.40 | % | ||||||||
Tier 1 capital ratio = (A) / (O) X 100 |
8.69 | % | 11.78 | % | ||||||||
3
Notes: | ||
1. | The above figures are calculated based on the BIS standard applied on a consolidated basis under the Standards for Determining the Status of Capital Adequacy in consideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25 (FSA Notice No. 20 of 2006 (the Notice)). For the figures as of September 30, 2009 and 2010, we did not apply the exception to the Notice (FSA Notice No. 79 of 2008). | |
2. | As it is not possible to break down Mizuho Financial Groups common stock and preferred stock according to classes of stock, non-cumulative perpetual preferred stock is not stated separately from capital. | |
3. | In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young ShinNihon LLC, on the basis of Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio (Industry Committee Report No. 30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on our consolidated financial statements. This consists of an examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of the capital adequacy ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor the internal controls related to the calculation of the capital adequacy ratio. | |
4. | The amounts of net deferred tax assets as of September 30, 2009 and 2010 were ¥615.1 billion and ¥447.0 billion, respectively, and the maximum amounts of deferred tax assets that can be recorded without diminishing the amount of Tier 1 capital for the purpose of calculating capital adequacy ratio as of September 30, 2009 and 2010 were ¥1,029.4 billion and ¥1,252.0 billion, respectively. | |
5. | The adjusted floor amount is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under the advanced internal rating-based approach and the gross profit allocation approach multiplied by the rate prescribed in the Notice over the required capital under the advanced internal ratings-based approach and the advanced measurement approach. The adjusted amount for credit risk-weighted assets is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under the foundation internal ratings-based approach multiplied by the rate prescribed in the Notice over the required capital under the advanced internal ratings-based approach; and the adjusted amount for operational risk equivalent is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under the basic indicator approach multiplied by the rate prescribed in the Notice over the required capital under the advanced measurement approach. | |
6. | Among our group companies that were subject to the calculation of consolidated capital adequacy ratio pursuant to Article 3 of the Notice, the numbers of consolidated subsidiaries were 164 and 163 as of September 30, 2009 and 2010, respectively. There was no company that was subject to the deductions for total risk-based capital forth in Article 8, Paragraph 1, Item 2, Subitem (a) through (c) of the Notice as of September 30, 2009 and 2010. |
4
Summary of preferred securities
We have included each of the following preferred securities issued by our overseas special purpose companies as Tier 1 capital for the purposes of our consolidated capital adequacy ratios.
Preferred securities issued by SPCs of Mizuho Financial Group
Issuer | Mizuho Preferred Capital (Cayman) 1 Limited (as MPC1, and the preferred securities described below are referred to as the MPC1 Preferred Securities.) | |||
Type of securities | Non-cumulative perpetual preferred securities | |||
Mandatory redemption date | None | |||
Optional redemption | Optionally redeemable on each dividend payment date falling in or after June 2012 (subject to prior approval from regulatory authorities) | |||
Dividends | Floating dividend rate (No dividend rate step-up. As stated in Dividend suspension events below, dividend payments that are suspended are non-cumulative.) | |||
Dividend payment date | Last business day of June in each year | |||
Total amount issued | ¥171.0 billion | |||
Issue date | February 14, 2002 | |||
Dividend suspension events | If any of the following events arise, dividend payments are suspended on a non-cumulative basis:
(1) when Mizuho Financial Group issues to MPC 1 a Loss Absorption Certificate(1);
(2) when dividends on Mizuho Financial Groups Preferred Stock(2) are suspended;
(3) when Mizuho Financial Group issues to MPC 1 a Distributable Amounts Limitation Certificate(4) stating that there are no Available Distributable Amounts(3); and
(4) when the dividend payment date is not a Mandatory Dividend Payment Date(5), and Mizuho Financial Group issues to MPC 1 a dividend instruction instructing it not to pay any dividends on such dividend payment date. |
|||
Mandatory dividend event | If Mizuho Financial Group pays any dividends on its common stock with respect to a fiscal year, full dividends must be paid on Parity Preferred securities(6) in June of the calendar year in which such fiscal year ends. However, it is subject to the following conditions: (1) no Loss Absorption Certificate(1) has been issued; (2) no preferred stock dividend limitation has arisen with respect thereto (partial dividend payments are made to the extent applicable); and (3) no Distributable Amounts Limitation Certificate(4) has been issued with respect thereto (partial dividends are paid to the extent applicable). | |||
Distributable amounts limitation | When Mizuho Financial Group issues a Distributable Amounts Limitation Certificate(4) to MPC1, dividends are limited to the Available Distributable Amounts(3). | |||
Dividend limitations | When dividends on Mizuho Financial Groups Preferred Stock(2) are reduced, dividends on Parity Preferred Securities(6) are also reduced by an equal percentage. | |||
Claims on residual assets | Same priority as Mizuho Financial Groups Preferred Stock(2) |
5
Issuer | Mizuho Capital Investment (USD) 1 Limited (MCI (USD) 1, and the preferred securities described below are referred to as MCI (USD) 1 Preferred Securities.) |
Mizuho Capital Investment (EUR) 1 Limited (MCI (EUR) 1, and the preferred securities described below are referred to as MCI (EUR) 1 Preferred Securities.) | ||
Type of securities | Non-cumulative perpetual preferred securities | Non-cumulative perpetual preferred securities | ||
Mandatory redemption date | None | None | ||
Optional redemption | Starting from the dividend payment date falling in June 2016, optionally redeemable on each dividend payment date in five-year intervals (subject to prior approval from regulatory authorities) | Starting from the dividend payment date falling in June 2011, optionally redeemable on each dividend payment date in five-year intervals (subject to prior approval from regulatory authorities) | ||
Dividends | Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2016. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.) | Fixed dividend rate for the first five years (although a floating dividend rate is applied with respect to dividend payment dates after June 2011. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.) | ||
Dividend payment date | June 30th and December 30th of each year | June 30th of each year until June 2011, and June 30th and December 30th of each year thereafter | ||
Total amount issued | US$600 million | 500 million | ||
Issue date | March 13, 2006 | March 13, 2006 | ||
Dividend suspension events | (Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(11) is insufficient, or dividends on its preferred stock(13) are suspended or reduced;
(Optional dividend suspension or reduction event)
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (USD) 1 Preferred Securities, and Mizuho Financial Group issues a dividend suspension notice to MCI (USD) 1; and
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (USD) 1. |
(Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(12) is insufficient, or dividends on its preferred stock(13) are suspended or reduced;
(Optional dividend suspension or reduction event)
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (EUR) 1 Preferred Securities, and Mizuho Financial Group issues a dividend suspension notice to MCI (EUR) 1; and
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (EUR) 1 | ||
Mandatory dividend event | If Mizuho Financial Group pays any dividends on its common stock with respect to a fiscal year, dividend payments for the full amount of MCI (USD) 1 Preferred Securities must be made on the dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. | If Mizuho Financial Group pays any dividends on its common stock with respect to a fiscal year, dividend payments for the full amount of MCI (EUR) 1 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. | ||
Distributable amounts limitation | Dividends for the MCI (USD) 1 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(11). | Dividends for the MCI (EUR) 1 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(12). | ||
Dividend limitations | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (USD) 1 Preferred Securities are also reduced by an equal percentage. | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (EUR) 1 Preferred Securities are also reduced by an equal percentage. | ||
Claims for residual assets | Same priority as Mizuho Financial Groups Preferred Stock(13) | Same priority as Mizuho Financial Groups Preferred Stock(13) |
6
Issuer | Mizuho Capital Investment (JPY) 1 Limited (MCI (JPY) 1, and the preferred securities described below are referred to as MCI (JPY) 1 Preferred Securities.) |
Mizuho Capital Investment (JPY) 2 Limited (MCI (JPY) 2, and the preferred securities described below are referred to as MCI (JPY) 2 Preferred Securities.) |
Mizuho Capital Investment (JPY) 3 Limited (MCI (JPY) 3, and the preferred securities described below (Series A and Series B) are collectively referred to as MCI (JPY) 3 Preferred Securities.) | |||
Type of securities | Non-cumulative perpetual preferred securities | Non-cumulative perpetual preferred securities | Non-cumulative perpetual preferred securities | |||
Mandatory redemption date | None | None | None | |||
Optional redemption | Starting from the dividend payment date falling in June 2016, optionally redeemable on each dividend payment date in five -year intervals (subject to prior approval from regulatory authorities) | Starting from the dividend payment date falling in June 2018, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities) | Starting from the dividend payment date falling in June 2019, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities) | |||
Dividends | Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2016. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.) | Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2018. Dividend rate step-up is applied. Dividend payments that are suspended are non-cumulative.) |
Series A Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2019. Dividend rate step-up is applied. Dividend payments that are suspended are non-cumulative.)
Series B Fixed dividend rate for the first ten years (although a floating dividend rate is applied with respect to dividend payment dates after June 2019. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.) | |||
Dividend payment date | June 30th and December 30th of each year | June 30th and December 30th of each year | June 30th and December 30th of each year | |||
Total amount issued | ¥400 billion | ¥274.5 billion | Series A ¥249.5 billion Series B ¥53.5 billion | |||
Issue date | January 12, 2007 | January 11, 2008 | July 11, 2008 | |||
Dividend suspension events | (Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(14) is insufficient, or dividends on its preferred stock(13) are suspended or reduced; |
(Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(15) is insufficient, or dividends on its preferred stock(13) are suspended or reduced; |
(Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(16) is insufficient, or dividends on its preferred stock(13) are suspended or reduced; | |||
(Optional dividend suspension or reduction event) |
(Optional dividend suspension or reduction event) |
(Optional dividend suspension or reduction event) | ||||
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 1 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 1; and |
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 2 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 2; and |
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 3 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 3; and | ||||
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 1 |
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 2 |
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 3 |
7
Mandatory dividend event | If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 1 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. |
If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 2 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. |
If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 3 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. | |||
Distributable amounts limitation | Dividends for the MCI (JPY) 1 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(14). | Dividends for the MCI (JPY) 2 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(15). | Dividends for the MCI (JPY) 3 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(16). | |||
Dividend limitations | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (JPY) 1 Preferred securities are also reduced by an equal percentage. | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (JPY) 2 Preferred securities are also reduced by an equal percentage. | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (JPY) 3 Preferred securities are also reduced by an equal percentage. | |||
Claims for residual assets | Same priority as Mizuho Financial Groups Preferred Stock(13) | Same priority as Mizuho Financial Groups Preferred Stock(13) | Same priority as Mizuho Financial Groups Preferred Stock(13) | |||
Issuer | Mizuho Capital Investment (JPY) 4 Limited (MCI (JPY) 4, and the preferred securities described below are referred to as MCI (JPY) 4 Preferred Securities.) | Mizuho Capital Investment (USD) 2 Limited (MCI (USD) 2, and the preferred securities described below are referred to as MCI (USD) 2 Preferred Securities.) | Mizuho Capital Investment (JPY) 5 Limited (MCI (JPY) 5, and the preferred securities described below (Series A, Series B and Series C) are collectively referred to as MCI (JPY) 5 Preferred Securities.) | |||
Type of securities | Non-cumulative perpetual preferred securities | Non-cumulative perpetual preferred securities | Non-cumulative perpetual preferred securities | |||
Mandatory redemption date | None | None | None | |||
Optional redemption | Starting from the dividend payment date falling in June 2015, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities) | Starting from the dividend payment date falling in June 2014, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities) | Series A Starting from the dividend payment date falling in June 2014, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)
Series B Starting from the dividend payment date falling in June 2015, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities)
Series C Starting from the dividend payment date falling in June 2015, optionally redeemable on each dividend payment date (subject to prior approval from regulatory authorities) |
8
Dividends | Fixed dividend rate for the first seven years (although a floating dividend rate is applied with respect to dividend payment dates after June 2015. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.) |
Fixed dividend rate for the first five years (although a floating dividend rate is applied with respect to dividend payment dates after June 2014. No dividend rate step-up. Dividend payments that are suspended are non-cumulative.) |
Series A Fixed dividend rate
for the first
Series B Fixed dividend rate for the first
Series C Fixed dividend rate for the
first | |||
Dividend payment date | March 31, 2009 and June 30th and December 30th of each year | June 30th and December 30th of each year | June 30th and December 30th of each year | |||
Total amount issued | ¥355 billion | $850 million | Series A ¥139.5 billion Series B ¥72.5 billion Series C ¥25.0 billion | |||
Issue date | December 29, 2008 | February 27, 2009 | Series A June 30, 2009 Series B August 31, 2009 Series C September 29, 2009 | |||
Dividend suspension events | (Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(17) is insufficient, or dividends on its preferred stock(13) are suspended or reduced; |
(Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(18) is insufficient, or dividends on its preferred stock(13) are suspended or reduced; |
(Mandatory dividend suspension or reduction event)
(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency Event(9) or Governmental Action(10) has occurred to Mizuho Financial Group;
(2) when Mizuho Financial Groups Available Distributable Amounts(19) is insufficient, or dividends on its preferred stock(13) are suspended or reduced; | |||
(Optional dividend suspension or reduction event) |
(Optional dividend suspension or reduction event) |
(Optional dividend suspension or reduction event) |
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 4 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 4; and |
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (USD) 2 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (USD) 2; and |
(3) when the capital adequacy ratio of Mizuho Financial Group or its Tier 1 capital ratio fails to meet the minimum requirement, or would fall short as a result of the dividend payments on the MCI (JPY) 5 Preferred Securities and when Mizuho Financial Group issues a dividend suspension notice to MCI (JPY) 5; and | ||||
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 4 |
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (USD) 2 |
(4) when Mizuho Financial Group fails to pay dividends on its common stock and issues a dividend suspension notice to MCI (JPY) 5 |
9
Mandatory dividend event | If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 4 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. | If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (USD) 2 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. | If Mizuho Financial Group pays any dividends on its common stock to holders of record as of a prescribed record date in the immediately preceding fiscal year, dividend payments for the full amount of MCI (JPY) 5 Preferred Securities must be made on dividend payment dates during the subsequent fiscal year; provided that no event for the mandatory suspension or reduction of dividends has occurred and that no dividend suspension notice has been issued in conjunction with the occurrence of an optional dividend suspension or reduction event. | |||
Distributable amounts limitation | Dividends for the MCI (JPY) 4 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(17). | Dividends for the MCI (USD) 2 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(18). | Dividends for the MCI (JPY) 5 preferred securities are paid to the extent of Mizuho Financial Groups Available Distributable Amounts(19). | |||
Dividend limitations | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (JPY) 4 Preferred securities are also reduced by an equal percentage. | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (USD) 2 Preferred securities are also reduced by an equal percentage. | When dividends on Mizuho Financial Groups Preferred Stock(13) are reduced, dividends on MCI (JPY) 5 Preferred securities are also reduced by an equal percentage. | |||
Claims for residual assets | Same priority as Mizuho Financial Groups Preferred Stock(13) | Same priority as Mizuho Financial Groups Preferred Stock(13) | Same priority as Mizuho Financial Groups Preferred Stock(13) |
Notes:
|
||
(1) |
Loss Absorption Certificate | |
Refers to a certificate that Mizuho Financial Group delivers to the issuer (in case of the loss absorption event set forth in clause (iv) below, the issuance thereof is at our discretion) upon any of the following events with respect to Mizuho Financial Group: (i) liquidation event that shall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho Financial Group or a competent court in Japan shall have (a) adjudicated Mizuho Financial Group to be subject to bankruptcy proceedings or (b) approved a preparation of a reorganization plan for abolishment of all business of Mizuho Financial Group; (ii) reorganization event that shall be deemed to occur if a competent court in Japan shall have adjudicated (a) the commencement of a corporate reorganization proceeding of Mizuho Financial Group under the Corporate Reorganization Law or (b) the commencement of a civil rehabilitation proceeding of Mizuho Financial Group under the Civil Rehabilitation Law; (iii) governmental action that shall be deemed to occur if the government authority in Japan (a) publicly declares Mizuho Financial Group is not able to pay its debts as they become due, (b) publicly declares Mizuho Financial Groups liabilities exceed its assets, (c) publicly declares Mizuho Financial Group to be under public management or (d) issues an order that Mizuho Financial Group be transferred to a third party; (iv) inadequate ratio event that shall be deemed to occur if capital adequacy ratio or Tier 1 capital ratio fails to meet the minimum requirement or would fall short as a result of a dividend payment on the relevant preferred securities; (v) default event that shall be deemed to occur if Mizuho Financial Group is not able to pay its debts as they become due or would not be able to do so as a result of a dividend payment on the relevant preferred securities; or (vi) insolvency event shall be deemed to occur if the liabilities of Mizuho Financial Group exceeds its assets or would exceed its assets as a result of a dividend payment on the relevant preferred securities. | ||
(2) |
Preferred Stock | |
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking most senior compared to other preferred stock of Mizuho Financial Group as to dividend payments. It includes such preferred stocks that are issued in the future.
| ||
(3) |
Available Distributable Amounts
| |
Refers to the maximum amount available for dividends (Distributable Amounts) calculated based on the immediately preceding fiscal years financial statements, less the aggregate amount of dividends paid previously during the current fiscal year and scheduled to be paid thereafter in respect of such fiscal year in respect of any Preferred Stock (provided that each interim dividend payment on Preferred Stock to be paid during such current Fiscal Year shall be excluded in calculating Available Distributable Amounts). Notwithstanding the foregoing, if there are securities issued by a company other than Mizuho Financial Group of which the rights to dividends and the rights at the time of liquidation, etc., are determined by reference to the financial condition and results of operation of Mizuho Financial Group and which rank, in relation to MPC1, equal in point of subordination as the Parity Preferred Securities(6) (Parallel Preferred Securities), the Available Distributable Amounts are adjusted as follows:
| ||
Available Distributable Amounts after the adjustment = Available Distributable Amounts x (Total of full dividend payment amount for Parity Preferred Securities(6) in such fiscal year) / (Total of full dividend payment amount for Parity Preferred Securities(6) in such fiscal year + Total amount of full dividend payment amount for Parallel Securities in such fiscal year) |
10
(4) |
Distributable Amounts Limitation Certificate | |
Refers to a certificate issued by Mizuho Financial Group on or before the annual general meeting of shareholders to issuers if Available Distributable Amounts falls short of total dividends to be paid on the dividend payment date, which shall set forth the Available Distributable Amounts of such fiscal year. | ||
(5) |
Mandatory Dividend Payment Date | |
Refers to a dividend payment date in June of a calendar year when a fiscal year of Mizuho Financial Group ends with respect to which it paid dividends on its common stock. | ||
(6) |
Parity Preferred Securities | |
Refers to the collective designation for preferred securities and MPC1 Preferred Securities issued by MPC1 which are perpetual and the dividend payment dates and the use of proceeds are the same as that of the relevant MPC1 Preferred Securities. (As to MPC1, for example, Parity Preferred Securities are the collective designation of MPC1 Preferred Securities as well as other preferred securities that satisfy the above conditions if newly issued in the future.) | ||
(7) |
Liquidation Event | |
Shall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho Financial Group or a competent court in Japan shall have (i) adjudicated Mizuho Financial Group to be subject to bankruptcy proceedings or (ii) approved a preparation of a reorganization plan for abolishment of all business of Mizuho Financial Group. | ||
(8) |
Reorganization Event | |
Shall be deemed to occur if a competent court in Japan shall have adjudicated (i) the commencement of a corporate reorganization proceeding of Mizuho Financial Group under the Corporate Reorganization Law or (ii) the commencement of a civil rehabilitation proceeding of Mizuho Financial Group under the Civil Rehabilitation Law. | ||
(9) |
Insolvency Event | |
Shall be deemed to occur if (i) Mizuho Financial Group is not able to pay its debts as they become due or would not be able to do so as a result of a dividend payment on the relevant preferred securities, or (ii) if the liabilities of Mizuho Financial Group exceeds its assets or would exceed its assets as a result of a dividend payment on the relevant preferred securities. | ||
(10) |
Governmental Action | |
Shall be deemed to occur if the government authority in Japan (i) publicly declares Mizuho Financial Group is not able to pay its debts as they become due, (ii) publicly declares Mizuho Financial Groups liabilities exceed its assets, (iii) publicly declares Mizuho Financial Group to be under public management or (iv) issues an order that Mizuho Financial Group be transferred to a third party. | ||
(11) |
Available Distributable Amounts for MCI (USD) 1 Preferred Securities | |
(i) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (USD) 1 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (USD) 1 Preferred Securities (Equivalent Securities) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (USD) 1 Preferred Securities. | ||
(ii) Amount available in December | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (USD) 1 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date falling in June, pro-rated between full dividends on MCI (USD) 1 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (USD) 1 Preferred Securities falling in June up to the dividend payment date falling in December. | ||
(12) |
Available Distributable Amounts for MCI (EUR) 1 Preferred Securities | |
(Up to the dividend payment date falling in June 2011) | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend payment amount on preferred securities for the then current fiscal year that are equivalently subordinated in nature with MCI (EUR) 1 Preferred Securities (Equivalent Securities). | ||
(From the dividend payment date falling in December 2011) | ||
(i) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend amount on Equivalent Securities to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (EUR) 1 Preferred Securities. | ||
(ii) Amount available in December | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Sock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (EUR) 1 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date falling in June, pro-rated between full dividends on MCI (EUR) 1 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (EUR) 1 Preferred Securities falling in June up to the dividend payment date falling in December. | ||
(13) |
Preferred Stocks | |
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking most senior compared to other preferred stock of Mizuho Financial Group as to dividend payments and claims to residual assets. |
11
(14) | Available Distributable Amounts for the MCI (JPY) 1 Preferred Securities | |
(i) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 1 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 1 Preferred Securities (Equivalent Securities) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 1 Preferred Securities. | ||
(ii) Amount available in December | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 1 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 1 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 1 Preferred Securities falling in June up to the dividend payment date falling in December. | ||
(15) | Available Distributable Amounts for the MCI (JPY) 2 Preferred Securities | |
(i) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 2 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 2 Preferred Securities (Equivalent Securities) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 2 Preferred Securities. | ||
(ii) Amount available in December | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 2 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 2 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 2 Preferred Securities falling in June up to the dividend payment date falling in December. | ||
(16) | Available Distributable Amounts for the MCI (JPY) 3 Preferred Securities | |
(i) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 3 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 3 Preferred Securities (Equivalent Securities) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 3 Preferred Securities. | ||
(ii) Amount available in December (except for the amount available in December 2008) | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 3 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 3 Preferred Securities falling in June up to the dividend payment date falling in December. | ||
(iii) Amount available in December 2008 | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends on Equivalent Securities paid or declared to be paid from April 1, 2008 to June 30, 2008, pro-rated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment date falling in December 2008 and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after June 30, 2008 up to the dividend payment date falling in December 2008. | ||
(17) | Available Distributable Amounts for the MCI (JPY) 4 Preferred Securities | |
(i) Amount available in March 2009 | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the fiscal year ended March 31, 2008, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends on Equivalent Securities paid or declared to be paid from April 1, 2008 to December 30, 2008, pro-rated between the full dividend amount on MCI (JPY) 4 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 4 Preferred Securities (Equivalent Securities) to which dividends are paid in whole or in part or declared to be paid from the day after December 30, 2008 up to the dividend payment date falling in March 2009. | ||
(ii) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 4 Preferred Securities and the full dividend amount on Equivalent Securities to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 4 Preferred Securities. | ||
(iii) Amount available in December | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 4 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 4 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 4 Preferred Securities falling in June up to the dividend payment date falling in December. |
12
(18) | Available Distributable Amounts for the MCI (USD) 2 Preferred Securities | |
(i) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (USD) 2 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (USD) 2 Preferred Securities (Equivalent Securities) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (USD) 2 Preferred Securities. | ||
(ii) Amount available in December | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (USD) 2 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (USD) 2 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (USD) 2 Preferred Securities falling in June up to the dividend payment date falling in December. | ||
(19) | Available Distributable Amounts for the MCI (JPY) 5 Preferred Securities | |
(i) Amount available in June | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full dividend amount on MCI (JPY) 5 Preferred Securities and the full dividend amount on preferred securities that are equivalently subordinated in nature with MCI (JPY) 5 Preferred Securities (Equivalent Securities) to which dividends are paid in whole or in part or declared to be paid on or prior to the relevant dividend payment date of MCI (JPY) 5 Preferred Securities. | ||
(ii) Amount available in December (except for the amount available in December 2009) | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the immediately preceding fiscal year, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount of dividend payments on MCI (JPY) 5 Preferred Securities made or declared to be made on or prior to the dividend payment date falling in June and (C) the dividends on Equivalent Securities paid or declared to be paid on or prior to the dividend payment date in June, pro-rated between full dividends on MCI (JPY) 5 Preferred Securities for the dividend payment date falling in December and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after the dividend payment date of MCI (JPY) 5 Preferred Securities falling in June up to the dividend payment date falling in December. | ||
(iii) Amount available in December 2009 | ||
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial statements for the fiscal year ended March 31, 2009, less (A) the amount of dividend payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends on Equivalent Securities paid or declared to be paid from April 1, 2009 to June 30, 2009, pro-rated between full dividends on MCI (JPY) 5 Preferred Securities for the dividend payment date falling in December 2009 and full dividends on Equivalent Securities paid in whole or in part or declared to be paid from the day after June 30, 2009 up to the dividend payment date falling in December 2009. |
.
13
(2) Required capital by portfolio classification
(Billions of yen) | ||||||||||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||||||||||
EAD | Required capital | EAD | Required capital | |||||||||||||
Credit risk |
153,459.9 | 5,981.0 | 154,714.2 | 5,347.8 | ||||||||||||
Internal ratings-based approach |
145,097.7 | 5,714.1 | 146,497.4 | 5,080.6 | ||||||||||||
Corporate (except specialized lending) |
52,284.2 | 3,444.0 | 48,548.0 | 2,940.0 | ||||||||||||
Corporate (specialized lending) |
2,880.1 | 324.8 | 2,707.1 | 316.9 | ||||||||||||
Sovereign |
55,956.0 | 65.7 | 62,418.9 | 57.5 | ||||||||||||
Bank |
5,441.8 | 190.5 | 4,934.9 | 144.7 | ||||||||||||
Retail |
13,147.3 | 568.2 | 13,835.1 | 649.8 | ||||||||||||
Residential mortgage |
10,590.0 | 381.1 | 10,743.4 | 425.4 | ||||||||||||
Qualifying revolving loans |
336.1 | 30.0 | 345.5 | 30.7 | ||||||||||||
Other retail |
2,221.0 | 157.0 | 2,746.1 | 193.6 | ||||||||||||
Equities, etc. |
3,830.5 | 455.1 | 3,461.6 | 365.6 | ||||||||||||
PD/LGD approach |
899.8 | 155.6 | 941.5 | 99.4 | ||||||||||||
Market-based approach (simple risk weight method) |
265.1 | 73.4 | 274.6 | 75.8 | ||||||||||||
Market-based approach (internal models approach) |
| | | | ||||||||||||
Transitional measure applied |
2,665.5 | 226.0 | 2,245.4 | 190.4 | ||||||||||||
Regarded-method exposure |
988.1 | 306.9 | 1,114.9 | 287.8 | ||||||||||||
Purchased receivables |
2,081.6 | 99.7 | 1,959.9 | 65.4 | ||||||||||||
Securitizations |
5,200.0 | 74.2 | 4,503.0 | 79.5 | ||||||||||||
Others |
3,287.5 | 184.7 | 3,013.4 | 172.9 | ||||||||||||
Standardized approach |
8,362.2 | 266.9 | 8,216.8 | 267.1 | ||||||||||||
Sovereign |
3,787.5 | 5.7 | 3,817.9 | 3.7 | ||||||||||||
Bank |
1,614.6 | 28.8 | 1,587.1 | 27.7 | ||||||||||||
Corporate |
2,341.4 | 162.8 | 2,208.8 | 167.3 | ||||||||||||
Residential mortgage |
0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||
Securitizations |
35.5 | 34.5 | 40.9 | 35.4 | ||||||||||||
Others |
583.0 | 34.9 | 562.0 | 32.9 | ||||||||||||
Market risk |
n.a. | 110.7 | n.a. | 106.8 | ||||||||||||
Standardized approach |
n.a. | 77.4 | n.a. | 79.1 | ||||||||||||
Interest rate risk |
n.a. | 54.9 | n.a. | 55.9 | ||||||||||||
Equities risk |
n.a. | 13.4 | n.a. | 14.2 | ||||||||||||
Foreign exchange risk |
n.a. | 2.5 | n.a. | 2.9 | ||||||||||||
Commodities risk |
n.a. | 6.4 | n.a. | 6.0 | ||||||||||||
Option transactions |
n.a. | | n.a. | | ||||||||||||
Internal models approach |
n.a. | 33.3 | n.a. | 27.6 | ||||||||||||
Operational risk |
n.a. | 313.2 | n.a. | 279.1 | ||||||||||||
Advanced measurement approach |
n.a. | 248.5 | n.a. | 230.0 | ||||||||||||
Gross profit allocation approach |
n.a. | n.a. | n.a. | n.a. | ||||||||||||
Basic indicator approach |
n.a. | 64.6 | n.a. | 49.0 | ||||||||||||
Total required capital (consolidated) |
n.a. | 4,733.6 | n.a. | 4,249.6 | ||||||||||||
14
Notes: |
||
1. |
EAD: Exposure at default. | |
2. |
PD: Probability of default. | |
3. |
LGD: Loss given default. | |
4. |
Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and (iii) deduction from capital. For market risk, the market risk equivalent amount. For operational risk, the operational risk equivalent amount. | |
5. |
Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio. | |
6. |
The major exposures included in each portfolio classification of internal ratings-based approach are as follows: |
Corporate (excluding specialized lending) | Credits to corporations and sole proprietors (excluding credits to retail customers) | |
Corporate (specialized lending) | Credits which limit interest and principal repayment sources to cash flow derived from specific real estate, chattel, businesses, etc. | |
Sovereign |
Credits to central governments, central banks and local governmental entities | |
Bank |
Credits to banks and securities companies, etc. | |
Retail |
Housing loans (residential mortgage), credit card loans (qualifying revolving retail loans) and other individual consumer loans and loans to business enterprises with total credit amount of less than ¥100 million (other retail), etc. | |
Equities, etc. |
Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)
* The transitional measure applies to those held from September 30, 2004 or earlier, and others are applied either the PD/LGD approach or the market-based approach. | |
Regarded-method exposure |
Investment trusts and funds, etc. | |
Purchased receivables |
Receivables purchased from third parties excluding securities (excluding securitizations) | |
Securitizations |
Transactions in the form of non-recourse or having a senior/subordinated structure (excluding specialized lending) |
7. | EAD calculated using the standardized approach for credit risk represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs. |
15
(3) Credit risk exposure, etc.
We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.
The outstanding balance is based on exposure at default.
No significant difference exists between period-end credit risk position and the average credit risk position during the twelve months ended September 30, 2009 and 2010.
Status of credit risk exposure
(A) Breakdown by geographical area
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Domestic |
75,327.1 | 30,428.3 | 2,504.2 | 5,893.4 | 114,153.2 | |||||||||||||||
Overseas |
14,661.8 | 4,888.8 | 2,696.7 | 2,508.8 | 24,756.2 | |||||||||||||||
Asia |
2,609.4 | 474.4 | 119.7 | 467.0 | 3,670.7 | |||||||||||||||
Central and South America |
1,895.8 | 147.7 | 224.0 | 4.2 | 2,271.9 | |||||||||||||||
North America |
5,158.2 | 2,316.6 | 814.7 | 1,684.3 | 9,974.0 | |||||||||||||||
Eastern Europe |
65.2 | | 0.4 | 1.0 | 66.7 | |||||||||||||||
Western Europe |
3,637.1 | 1,788.3 | 1,441.6 | 278.7 | 7,145.9 | |||||||||||||||
Other areas |
1,295.7 | 161.6 | 96.0 | 73.3 | 1,626.7 | |||||||||||||||
Total |
89,988.9 | 35,317.2 | 5,200.9 | 8,402.2 | 138,909.4 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 8,326.6 | |||||||||||||||
Notes: | ||
1. | Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. | Exposure to non-Japanese residents is included in Overseas. | |
3. | Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Domestic |
73,774.3 | 34,547.9 | 2,385.9 | 5,176.1 | 115,884.3 | |||||||||||||||
Overseas |
13,594.2 | 7,171.9 | 2,157.4 | 2,071.0 | 24,994.7 | |||||||||||||||
Asia |
3,024.6 | 554.2 | 125.7 | 577.8 | 4,282.5 | |||||||||||||||
Central and South America |
1,870.9 | 165.5 | 248.5 | 2.8 | 2,287.9 | |||||||||||||||
North America |
4,343.7 | 4,331.5 | 648.3 | 1,067.7 | 10,391.3 | |||||||||||||||
Eastern Europe |
60.5 | | 0.1 | 1.6 | 62.2 | |||||||||||||||
Western Europe |
3,199.9 | 1,977.6 | 1,022.7 | 326.1 | 6,526.5 | |||||||||||||||
Other areas |
1,094.4 | 142.9 | 111.9 | 94.8 | 1,444.1 | |||||||||||||||
Total |
87,368.6 | 41,719.8 | 4,543.4 | 7,247.2 | 140,879.1 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 8,175.9 | |||||||||||||||
Notes: | ||
1. | Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. | Exposure to non-Japanese residents is included in Overseas. | |
3. | Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
16
(B) Breakdown by industry
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Manufacturing |
14,374.2 | 2,350.0 | 704.4 | 157.2 | 17,586.0 | |||||||||||||||
Construction |
1,647.5 | 235.2 | 22.1 | 9.7 | 1,914.6 | |||||||||||||||
Real estate |
7,581.9 | 561.7 | 56.4 | 52.4 | 8,252.5 | |||||||||||||||
Service industries |
4,661.2 | 1,263.1 | 219.5 | 93.0 | 6,237.0 | |||||||||||||||
Wholesale and retail |
7,491.3 | 605.6 | 827.7 | 350.5 | 9,275.4 | |||||||||||||||
Finance and insurance |
10,053.7 | 1,312.3 | 2,637.9 | 829.0 | 14,833.1 | |||||||||||||||
Individuals |
11,970.2 | | 0.3 | 15.5 | 11,986.0 | |||||||||||||||
Other industries |
14,071.3 | 4,581.2 | 725.7 | 5,419.2 | 24,797.6 | |||||||||||||||
Japanese Government; Bank of Japan |
18,137.3 | 24,407.7 | 6.5 | 1,475.3 | 44,026.8 | |||||||||||||||
Total |
89,988.9 | 35,317.2 | 5,200.9 | 8,402.2 | 138.909.4 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 8,326.6 | |||||||||||||||
Notes:
|
||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. |
Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Manufacturing |
13,248.3 | 2,146.0 | 683.9 | 215.2 | 16,293.5 | |||||||||||||||
Construction |
1,475.5 | 186.1 | 24.7 | 3.5 | 1,689.9 | |||||||||||||||
Real estate |
6,943.9 | 521.3 | 64.2 | 45.0 | 7,574.6 | |||||||||||||||
Service industries |
4,004.9 | 1,872.4 | 188.0 | 88.2 | 6,153.7 | |||||||||||||||
Wholesale and retail |
7,056.3 | 586.3 | 736.6 | 426.9 | 8,806.3 | |||||||||||||||
Finance and insurance |
9,634.0 | 1,808.1 | 2,075.0 | 889.9 | 14,407.1 | |||||||||||||||
Individuals |
12,092.8 | | 0.3 | 14.4 | 12,107.5 | |||||||||||||||
Other industries |
13,400.7 | 5,809.2 | 761.0 | 4,629.0 | 24,600.0 | |||||||||||||||
Japanese Government; Bank of Japan |
19,511.7 | 28,790.2 | 9.2 | 934.7 | 49,246.0 | |||||||||||||||
Total |
87,368.6 | 41,719.8 | 4,543.4 | 7,247.2 | 140,879.1 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 8,175.9 | |||||||||||||||
Notes:
|
||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. |
Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
17
(C) Breakdown by residual contractual maturity
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Less than one year |
29,765.1 | 11,954.0 | 536.7 | 1,192.8 | 43,448.8 | |||||||||||||||
From one year to less than three years |
15,389.9 | 9,961.6 | 2,237.5 | 26.8 | 27,616.0 | |||||||||||||||
From three years to less than five years |
9,779.3 | 4,998.3 | 1,297.2 | 6.5 | 16,081.4 | |||||||||||||||
Five years or more |
21,450.4 | 4,550.6 | 1,041.6 | 25.9 | 27,068.7 | |||||||||||||||
Other than above |
13,604.1 | 3,852.4 | 87.7 | 7,150.1 | 24,694.4 | |||||||||||||||
Total |
89,988.9 | 35,317.2 | 5,200.9 | 8,402.2 | 138,909.4 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 8,326.6 | |||||||||||||||
Notes:
|
||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. | Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Less than one year |
29,157.4 | 15,044.1 | 498.0 | 1,358.5 | 46,058.1 | |||||||||||||||
From one year to less than three years |
14,570.6 | 9,091.1 | 1,787.2 | 15.6 | 25,464.7 | |||||||||||||||
From three years to less than five years |
8,668.2 | 7,720.8 | 1,147.3 | 24.9 | 17,561.4 | |||||||||||||||
Five years or more |
23,625.0 | 6,495.6 | 1,026.8 | 0.1 | 31,147.6 | |||||||||||||||
Other than above |
11,347.2 | 3,368.1 | 83.8 | 5,847.8 | 20,647.0 | |||||||||||||||
Total |
87,368.6 | 41,719.8 | 4,543.4 | 7,247.2 | 140,879.1 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 8,175.9 | |||||||||||||||
Notes:
|
||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. | Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
18
Status of exposure past due three months or more or in default
(D) Breakdown by geographical area
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Domestic |
1,756.1 | 67.4 | 38.0 | 81.1 | 1,942.7 | |||||||||||||||
Overseas |
295.9 | 0.6 | 0.1 | 25.9 | 322.7 | |||||||||||||||
Asia |
47.8 | 0.0 | 0.0 | 4.4 | 52.4 | |||||||||||||||
Central and South America |
20.9 | 0.0 | | 0.0 | 20.9 | |||||||||||||||
North America |
86.5 | 0.6 | 0.0 | 16.1 | 103.4 | |||||||||||||||
Eastern Europe |
6.3 | | | 0.0 | 6.3 | |||||||||||||||
Western Europe |
103.1 | | 0.0 | 4.5 | 107.8 | |||||||||||||||
Other areas |
31.0 | | 0.0 | 0.6 | 31.6 | |||||||||||||||
Total |
2,052.0 | 68.1 | 38.2 | 107.0 | 2,265.4 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 5.5 | |||||||||||||||
Notes: |
||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. |
Exposure to non-Japanese residents is included in Overseas. | |
3. |
Others include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Domestic |
1,719.5 | 38.4 | 52.5 | 80.6 | 1,891.1 | |||||||||||||||
Overseas |
191.2 | 2.0 | 1.2 | 21.2 | 215.7 | |||||||||||||||
Asia |
34.0 | 0.0 | 0.1 | 3.9 | 38.2 | |||||||||||||||
Central and South America |
12.3 | 1.5 | 0.7 | 0.0 | 14.5 | |||||||||||||||
North America |
25.3 | 0.5 | 0.0 | 15.1 | 41.0 | |||||||||||||||
Eastern Europe |
10.8 | | | 0.0 | 10.8 | |||||||||||||||
Western Europe |
63.3 | | 0.2 | 1.7 | 65.3 | |||||||||||||||
Other areas |
45.2 | | 0.0 | 0.3 | 45.6 | |||||||||||||||
Total |
1,910.8 | 40.4 | 53.7 | 101.8 | 2,106.9 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 3.1 | |||||||||||||||
Notes: |
||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. |
Exposure to non-Japanese residents is included in Overseas. | |
3. |
Others include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
19
(E) Breakdown by industry
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Manufacturing |
397.8 | 6.1 | 5.5 | 21.4 | 430.9 | |||||||||||||||
Construction |
118.3 | 10.9 | 0.7 | 2.9 | 132.9 | |||||||||||||||
Real estate |
423.7 | 2.4 | 0.7 | 11.1 | 438.0 | |||||||||||||||
Service industries |
274.9 | 4.7 | 3.6 | 7.7 | 291.1 | |||||||||||||||
Wholesale and retail |
262.5 | 10.4 | 12.8 | 34.9 | 320.8 | |||||||||||||||
Finance and insurance |
98.4 | 0.9 | 0.5 | 17.8 | 117.8 | |||||||||||||||
Individuals |
149.7 | | | 1.4 | 151.2 | |||||||||||||||
Other industries |
326.4 | 32.3 | 14.1 | 9.4 | 382.4 | |||||||||||||||
Total |
2,052.0 | 68.1 | 38.2 | 107.0 | 2,265.4 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 5.5 | |||||||||||||||
Notes: | ||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. |
Others include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||
Loans, commitments and other non-OTC derivative off-balance-sheet exposures |
Securities | OTC derivatives |
Others | Total | ||||||||||||||||
Manufacturing |
414.9 | 9.2 | 14.1 | 17.0 | 455.4 | |||||||||||||||
Construction |
96.5 | 10.3 | 0.4 | 1.4 | 108.7 | |||||||||||||||
Real estate |
323.2 | 7.9 | 0.4 | 5.2 | 336.8 | |||||||||||||||
Service industries |
239.9 | 3.3 | 5.2 | 7.0 | 255.5 | |||||||||||||||
Wholesale and retail |
264.5 | 3.0 | 26.8 | 37.7 | 332.1 | |||||||||||||||
Finance and insurance |
46.8 | 1.8 | 0.5 | 17.5 | 66.6 | |||||||||||||||
Individuals |
241.8 | | | 1.6 | 243.4 | |||||||||||||||
Other industries |
282.9 | 4.6 | 6.1 | 14.1 | 307.9 | |||||||||||||||
Total |
1,910.8 | 40.4 | 53.7 | 101.8 | 2,106.9 | |||||||||||||||
Exempt portion |
n.a. | n.a. | n.a. | n.a. | 3.1 | |||||||||||||||
Notes: |
||
1. |
Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets. | |
2. |
Others include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc. |
20
Status of reserves for possible losses on loans
The amounts associated with regarded-method exposure and securitization exposure are excluded.
(F) Period-end balances of reserves for possible losses on loans and changes during the six-month period
(after partial direct write-offs)
(Billions of yen) | ||||||||
As of, or
for the six months ended, September 30, 2009 |
As of, or for the six months ended, September 30, 2010 |
|||||||
General reserve for possible losses on loans |
||||||||
Beginning balance |
583.2 | 563.8 | ||||||
Increase during the six-month period |
584.5 | 533.2 | ||||||
Decrease during the six-month period |
583.2 | 563.8 | ||||||
Ending balance |
584.5 | 533.2 | ||||||
Specific reserve for possible losses on loans |
||||||||
Beginning balance |
299.5 | 317.7 | ||||||
Increase during the six-month period |
350.9 | 306.0 | ||||||
Decrease during the six-month period |
299.5 | 317.7 | ||||||
Ending balance |
350.9 | 306.0 | ||||||
Reserve for possible losses on loans to restructuring countries |
||||||||
Beginning balance |
0.5 | 0.1 | ||||||
Increase during the six-month period |
0.4 | 0.0 | ||||||
Decrease during the six-month period |
0.5 | 0.1 | ||||||
Ending balance |
0.4 | 0.0 | ||||||
Total |
||||||||
Beginning balance |
883.4 | 881.8 | ||||||
Increase during the six-month period |
935.8 | 839.3 | ||||||
Decrease during the six-month period |
883.4 | 881.8 | ||||||
Ending balance |
935.8 | 839.3 | ||||||
Note: | ||
General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and the amounts associated with regarded-method exposure and securitization exposure are not excluded. |
21
(G) Specific reserve for possible losses on loans by geographical area and industry
(Billions of yen) | ||||||||||||
As of March 31, 2009 | As of September 30, 2009 | Change | ||||||||||
Domestic |
218.6 | 286.0 | 67.4 | |||||||||
Manufacturing |
16.1 | 14.4 | (1.6 | ) | ||||||||
Construction |
5.4 | 6.2 | 0.7 | |||||||||
Real estate |
51.8 | 50.7 | (1.0 | ) | ||||||||
Service industries |
34.2 | 26.0 | (8.2 | ) | ||||||||
Wholesale and retail |
35.0 | 36.9 | 1.9 | |||||||||
Finance and insurance |
2.8 | 11.3 | 8.5 | |||||||||
Individuals |
58.7 | 61.3 | 2.6 | |||||||||
Others |
14.3 | 78.7 | 64.4 | |||||||||
Overseas |
74.5 | 54.8 | (19.6 | ) | ||||||||
Exempt portion |
6.4 | 9.9 | 3.5 | |||||||||
Total |
299.5 | 350.9 | 51.3 | |||||||||
Notes: | ||
1. |
Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit risk-weighted assets. | |
2. |
Following the revision of the Japan Standardized Industrial Classification in November 2007, partial amendment has been made to the industry classification of the six-month period ended September 30, 2009. Such amendment is also reflected in the figures as of March 31, 2009. |
(Billions of yen) | ||||||||||||
As of March 31, 2010 | As of September 30, 2010 | Change | ||||||||||
Domestic |
274.8 | 272.8 | (2.0 | ) | ||||||||
Manufacturing |
24.7 | 25.5 | 0.8 | |||||||||
Construction |
6.4 | 6.8 | 0.4 | |||||||||
Real estate |
30.2 | 27.1 | (3.0 | ) | ||||||||
Service industries |
22.5 | 16.4 | (6.1 | ) | ||||||||
Wholesale and retail |
29.0 | 31.8 | 2.8 | |||||||||
Finance and insurance |
9.4 | 6.5 | (2.8 | ) | ||||||||
Individuals |
71.1 | 78.7 | 7.5 | |||||||||
Others |
81.2 | 79.6 | (1.6 | ) | ||||||||
Overseas |
36.2 | 27.7 | (8.5 | ) | ||||||||
Exempt portion |
6.7 | 5.4 | (1.2 | ) | ||||||||
Total |
317.7 | 306.0 | (11.7 | ) | ||||||||
Note: |
||
Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit risk-weighted assets. |
(H) Write-offs of loans by industry
(Billions of yen) | ||||||||
For the six months
ended September 30, 2009 |
For the six months
ended September 30, 2010 |
|||||||
Manufacturing |
6.3 | 5.7 | ||||||
Construction |
1.3 | 1.2 | ||||||
Real estate |
11.9 | 2.3 | ||||||
Service industries |
3.5 | 4.6 | ||||||
Wholesale and retail |
15.8 | 9.5 | ||||||
Finance and insurance |
0.2 | 0.3 | ||||||
Individuals |
1.0 | 0.5 | ||||||
Others |
28.9 | 4.7 | ||||||
Exempt portion |
0.3 | 0.0 | ||||||
Total |
69.5 | 29.4 | ||||||
Notes: | ||
1. | The above table shows the breakdown of losses on write-offs of loans recorded in our consolidated statement of income after excluding the amounts associated with regarded-method exposure and securitization exposure. | |
2. | Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit risk-weighted assets. | |
3. | Others include overseas and non-Japanese resident portions. |
22
Status of exposure to which the standardized approach is applied
(I) Exposure by risk weight category after applying credit risk mitigation
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||
On-balance sheet |
Off-balance sheet |
Total | ||||||||||||||||||
With external rating |
||||||||||||||||||||
Risk weight |
||||||||||||||||||||
0% |
791.7 | 2,872.4 | 3,664.1 | 75.1 | ||||||||||||||||
10% |
2.7 | | 2.7 | | ||||||||||||||||
20% |
347.4 | 1,260.5 | 1,608.0 | 33.9 | ||||||||||||||||
35% |
0.0 | | 0.0 | | ||||||||||||||||
50% |
32.7 | 20.3 | 53.0 | 16.2 | ||||||||||||||||
100% |
2,069.7 | 928.7 | 2,998.4 | 50.0 | ||||||||||||||||
150% |
0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||
350% |
| | | | ||||||||||||||||
625% |
| 0.0 | 0.0 | | ||||||||||||||||
937.5% |
| | | | ||||||||||||||||
1,250% |
| 0.0 | 0.0 | | ||||||||||||||||
Total |
3,244.6 | 5,082.0 | 8,326.6 | 175.3 | ||||||||||||||||
Notes: | ||
1. | The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs. | |
2. | Off-balance-sheet exposure shows credit equivalent amount. |
(Billions of yen) | ||||||||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||
On-balance sheet |
Off-balance sheet |
Total | ||||||||||||||||||
With external rating |
||||||||||||||||||||
Risk weight |
||||||||||||||||||||
0% |
459.9 | 3,285.4 | 3,745.3 | 73.3 | ||||||||||||||||
10% |
0.7 | | 0.7 | | ||||||||||||||||
20% |
351.5 | 1,217.9 | 1,569.4 | 2.8 | ||||||||||||||||
35% |
0.0 | | 0.0 | | ||||||||||||||||
50% |
17.2 | 5.4 | 22.7 | 8.5 | ||||||||||||||||
100% |
1,970.3 | 866.8 | 2,837.2 | 35.3 | ||||||||||||||||
150% |
0.4 | | 0.4 | | ||||||||||||||||
350% |
| | | | ||||||||||||||||
625% |
| 0.0 | 0.0 | | ||||||||||||||||
937.5% |
| | | | ||||||||||||||||
1,250% |
| 0.0 | 0.0 | | ||||||||||||||||
Total |
2,800.2 | 5,375.6 | 8,175.9 | 120.0 | ||||||||||||||||
Notes: | ||
1. |
The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs. | |
2. |
Off-balance-sheet exposure shows credit equivalent amount. |
(J) Deduction from capital
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Deduction from capital |
34.3 | 34.9 |
23
Status of exposure to which the internal ratings-based approach is applied
(K) Specialized lending exposure under supervisory slotting criteria by risk weight category
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Risk weight |
||||||||
50% |
253.5 | 191.7 | ||||||
70% |
695.9 | 704.0 | ||||||
90% |
159.3 | 266.8 | ||||||
95% |
70.6 | 0.2 | ||||||
115% |
388.8 | 156.6 | ||||||
120% |
15.0 | 15.6 | ||||||
140% |
13.0 | 15.0 | ||||||
250% |
397.5 | 425.0 | ||||||
Default |
32.6 | 48.2 | ||||||
Total |
2,026.5 | 1,823.6 | ||||||
(L) Equity exposure under simple risk weight method by risk weight category
(Billions of yen) | ||||||||
As of September 30, 2009 | As of September 30, 2010 | |||||||
Risk weight |
||||||||
300% |
194.4 | 204.4 | ||||||
400% |
70.7 | 70.1 | ||||||
Total |
265.1 | 274.6 | ||||||
Note: | Of the equity exposure under the simple risk weight method, 300% risk weight is applied for listed equities and 400% for unlisted equities. |
24
(M) Portfolio by asset class and ratings segment (Corporate, etc.)
(Billions of yen, except percentages) | ||||||||||||||||||||||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||||||||||||||||||||||
EL | Risk | |||||||||||||||||||||||||||||||||||||||
PD | LGD | default | weight | Weighted | ||||||||||||||||||||||||||||||||||||
(EAD | (EAD | (EAD | (EAD | average of | ||||||||||||||||||||||||||||||||||||
weighted | weighted | weighted | weighted | EAD | Amount of | credit | ||||||||||||||||||||||||||||||||||
average) (%) |
average) (%) |
average (%) |
average) (%) |
(Billions of yen) |
On-balance sheet |
Off-balance sheet |
undrawn commitments |
conversion factor (%) |
||||||||||||||||||||||||||||||||
Corporate |
5.14 | 35.87 | n.a. | 51.80 | 54,862.3 | 40,452.0 | 14,410.2 | 10,008.7 | 75.20 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.14 | 36.67 | n.a. | 26.37 | 29,242.2 | 19,082.1 | 10,160.1 | 7,846.9 | 75.21 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
3.94 | 33.19 | n.a. | 83.73 | 23,778.3 | 19,608.3 | 4,170.0 | 2,143.5 | 75.10 | |||||||||||||||||||||||||||||||
Default |
100.00 | 57.78 | 54.52 | 43.24 | 1,841.7 | 1,761.5 | 80.1 | 18.1 | 81.06 | |||||||||||||||||||||||||||||||
Sovereign |
0.01 | 39.15 | n.a. | 1.39 | 56,174.0 | 42,076.9 | 14,097.1 | 86.0 | 75.00 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.00 | 39.14 | n.a. | 1.18 | 56,029.8 | 41,937.3 | 14,092.5 | 85.6 | 75.00 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
1.28 | 39.13 | n.a. | 83.38 | 141.3 | 139.5 | 1.8 | 0.4 | 75.00 | |||||||||||||||||||||||||||||||
Default |
100.00 | 99.04 | 96.85 | 29.09 | 2.8 | 0.1 | 2.7 | | | |||||||||||||||||||||||||||||||
Bank |
1.01 | 37.30 | n.a. | 33.91 | 5,581.0 | 1,758.9 | 3,822.0 | 356.9 | 77.23 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.14 | 36.46 | n.a. | 26.86 | 4,767.9 | 1,345.4 | 3,422.5 | 270.9 | 78.18 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
1.61 | 39.53 | n.a. | 77.41 | 775.5 | 376.5 | 398.9 | 86.0 | 74.24 | |||||||||||||||||||||||||||||||
Default |
100.00 | 98.07 | 95.79 | 30.27 | 37.5 | 36.9 | 0.5 | | | |||||||||||||||||||||||||||||||
Equity exposure under PD/LGD approach |
4.07 | 90.00 | n.a. | 176.70 | 899.8 | 899.8 | | | | |||||||||||||||||||||||||||||||
Investment grade zone |
0.08 | 90.00 | n.a. | 116.67 | 644.9 | 644.9 | | | | |||||||||||||||||||||||||||||||
Non-investment grade zone |
5.45 | 90.00 | n.a. | 361.97 | 231.3 | 231.3 | | | | |||||||||||||||||||||||||||||||
Default |
100.00 | 90.00 | 90.00 | | 23.5 | 23.5 | | | | |||||||||||||||||||||||||||||||
Total |
2.48 | 37.92 | n.a. | 27.81 | 117,517.3 | 85,187.8 | 32,329.4 | 10,451.7 | 75.27 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.06 | 38.57 | n.a. | 11.48 | 90,684.9 | 63,009.8 | 27,675.1 | 8,203.6 | 75.31 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
3.86 | 33.95 | n.a. | 86.12 | 24,926.7 | 20,355.8 | 4,570.9 | 2,229.9 | 75.07 | |||||||||||||||||||||||||||||||
Default |
100.00 | 59.03 | 55.83 | 42.43 | 1,905.5 | 1,822.1 | 83.4 | 18.1 | 81.06 | |||||||||||||||||||||||||||||||
Notes: | ||
1. |
Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default includes E2R to H1. | |
2. |
Corporate does not include specialized lending exposure under supervisory slotting criteria. | |
3. |
Each asset class includes purchased receivables. | |
4. |
The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted average of credit conversion factor. |
25
(Billions of yen, except percentages) | ||||||||||||||||||||||||||||||||||||||||
As of September 30, 2010 | ||||||||||||||||||||||||||||||||||||||||
EL | Risk | |||||||||||||||||||||||||||||||||||||||
PD | LGD | default | weight | Weighted | ||||||||||||||||||||||||||||||||||||
(EAD | (EAD | (EAD | (EAD | average of | ||||||||||||||||||||||||||||||||||||
weighted average) |
weighted average) |
weighted average) |
weighted average) |
EAD (Billions of |
Amount of undrawn |
credit conversion |
||||||||||||||||||||||||||||||||||
On-balance | Off-balance | |||||||||||||||||||||||||||||||||||||||
(%) | (%) | (%) | (%) | yen) | sheet | sheet | commitments | factor (%) | ||||||||||||||||||||||||||||||||
Corporate |
4.68 | 35.64 | n.a. | 48.33 | 50,979.5 | 37,185.9 | 13,793.5 | 10,023.8 | 75.11 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.12 | 36.77 | n.a. | 24.41 | 28,839.6 | 18,689.7 | 10,149.8 | 8,176.6 | 75.13 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
3.61 | 32.52 | n.a. | 82.58 | 20,528.9 | 16,992.8 | 3,536.1 | 1,805.5 | 75.02 | |||||||||||||||||||||||||||||||
Default |
100.00 | 55.31 | 52.28 | 40.26 | 1,610.9 | 1,503.3 | 107.5 | 41.6 | 75.53 | |||||||||||||||||||||||||||||||
Sovereign |
0.01 | 38.78 | n.a. | 1.14 | 62,716.8 | 48,197.1 | 14,519.6 | 113.4 | 79.82 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.00 | 38.78 | n.a. | 1.02 | 62,637.9 | 48,120.1 | 14,517.7 | 113.1 | 79.83 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
2.24 | 38.77 | n.a. | 93.43 | 78.7 | 76.9 | 1.8 | 0.3 | 75.00 | |||||||||||||||||||||||||||||||
Default |
100.00 | 68.75 | 64.06 | 62.13 | 0.0 | 0.0 | | | | |||||||||||||||||||||||||||||||
Bank |
0.80 | 37.67 | n.a. | 28.40 | 5,049.1 | 1,946.2 | 3,102.9 | 248.6 | 78.22 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.11 | 37.17 | n.a. | 24.66 | 4,643.6 | 1,806.8 | 2,836.7 | 187.1 | 79.28 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
1.59 | 39.19 | n.a. | 74.64 | 376.4 | 110.7 | 265.7 | 61.4 | 75.00 | |||||||||||||||||||||||||||||||
Default |
100.00 | 98.89 | 96.78 | 27.92 | 29.0 | 28.5 | 0.4 | | | |||||||||||||||||||||||||||||||
Equity exposure under PD/LGD approach |
0.60 | 90.00 | n.a. | 125.33 | 941.5 | 941.5 | | | | |||||||||||||||||||||||||||||||
Investment grade zone |
0.08 | 90.00 | n.a. | 108.55 | 831.0 | 831.0 | | | | |||||||||||||||||||||||||||||||
Non-investment grade zone |
1.79 | 90.00 | n.a. | 258.61 | 107.5 | 107.5 | | | | |||||||||||||||||||||||||||||||
Default |
100.00 | 90.00 | 90.00 | | 3.0 | 3.0 | | | | |||||||||||||||||||||||||||||||
Total |
2.04 | 37.80 | n.a. | 23.37 | 119,687.0 | 88,270.9 | 31,416.1 | 10,385.9 | 75.24 | |||||||||||||||||||||||||||||||
Investment grade zone |
0.04 | 38.54 | n.a. | 10.03 | 96,952.3 | 69,447.8 | 27,504.4 | 8,476.9 | 75.29 | |||||||||||||||||||||||||||||||
Non-investment grade zone |
3.56 | 32.95 | n.a. | 83.38 | 21,091.7 | 17,288.0 | 3,803.6 | 1,867.3 | 75.02 | |||||||||||||||||||||||||||||||
Default |
100.00 | 56.15 | 53.13 | 39.97 | 1,643.0 | 1,534.9 | 108.0 | 41.6 | 75.53 | |||||||||||||||||||||||||||||||
Notes: | ||
1. |
Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default includes E2R to H1. | |
2. |
Corporate does not include specialized lending exposure under supervisory slotting criteria. | |
3. |
Each asset class includes purchased receivables. | |
4. |
The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted average of credit conversion factor. |
26
(Reference) Obligor ratings
Obligor ratings (major category) |
Definition of ratings | Classification | ||||||||||||||||
A1A3 | Obligors whose certainty of debt fulfillment is very high, hence their level of credit risk is excellent. | Investment grade zone | ||||||||||||||||
B1B2 | Obligors whose certainty of debt fulfillment poses no problems for the foreseeable future, hence their level of credit risk is sufficient. | |||||||||||||||||
C1C3 | Obligors whose certainty of debt fulfillment and their level of credit risk pose no problems for the foreseeable future. | |||||||||||||||||
D1D3 | Obligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future changes in business environment is low. | Non-investment grade zone | ||||||||||||||||
E1 | Obligors who require close watching going forward because there are problems with their borrowings, such as reduced or suspended interest payments, problems with fulfillment such as de facto postponements of principal or interest payments, or problems with their financial positions as a result of their poor or unstable business conditions. | |||||||||||||||||
E2 | ||||||||||||||||||
R | * | |||||||||||||||||
F1 | Obligors who are not yet bankrupt but are in financial difficulties and are deemed to be very likely to go bankrupt in the future because they are finding it difficult to make progress in implementing their management improvement plans (including obligors who are receiving ongoing support from financial institutions). | Default | ||||||||||||||||
G1 | Obligors who have not yet gone legally or formally bankrupt but who are substantially bankrupt because they are in serious financial difficulties and are not deemed to be capable of restructuring. | |||||||||||||||||
H1 | Obligors who have already gone bankrupt, from both a legal and/or formal perspective. |
* | Including restructured loans and loans past due for three months of more |
27
(N) Portfolio by asset class and ratings segment (Retail)
(Billions of yen, except percentages) | ||||||||||||||||||||||||||||||||||||||||
As of September 30, 2009 | ||||||||||||||||||||||||||||||||||||||||
EL | Risk | |||||||||||||||||||||||||||||||||||||||
PD | LGD | default | weight | Weighted | ||||||||||||||||||||||||||||||||||||
(EAD | (EAD | (EAD | (EAD | average of | ||||||||||||||||||||||||||||||||||||
weighted | weighted | weighted | weighted | EAD | Amount of | credit | ||||||||||||||||||||||||||||||||||
average) | average) | average) | average) | (Billions of | On-balance | Off-balance | undrawn | conversion | ||||||||||||||||||||||||||||||||
(%) | (%) | (%) | (%) | yen) | sheet | sheet | commitments | factor (%) | ||||||||||||||||||||||||||||||||
Residential mortgage |
2.18 | 41.79 | n.a. | 32.26 | 10,590.0 | 10,178.4 | 411.5 | 9.6 | 75.00 | |||||||||||||||||||||||||||||||
Non-default |
0.87 | 41.65 | n.a. | 32.26 | 10,449.4 | 10,044.2 | 405.1 | 9.6 | 75.00 | |||||||||||||||||||||||||||||||
Default |
100.00 | 52.30 | 49.85 | 32.45 | 140.6 | 134.1 | 6.4 | | | |||||||||||||||||||||||||||||||
Qualifying revolving loans (retail) |
3.64 | 85.55 | n.a. | 73.13 | 336.1 | 233.9 | 102.2 | 1,413.4 | 7.23 | |||||||||||||||||||||||||||||||
Non-default |
3.22 | &nb |