UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2016

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

Japan

(Address of principal executive office)

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

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

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

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

Yes ¨    No x

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

 

 

 

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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

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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.

 

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For Immediate Release:

 

		Financial Statements for the Second Quarter of Fiscal 2016 (Six months ended September 30, 2016) <Under Japanese GAAP>

 

Company Name:		Mizuho Financial Group, Inc. (“MHFG”)		November 14, 2016

Stock Code Number (Japan):		8411
Stock Exchange Listings:		Tokyo Stock Exchange (First Section), New York Stock Exchange
URL:		https://www.mizuho-fg.com/index.html
Representative:		Yasuhiro Sato		President & CEO
For Inquiry:		Masahiro Kosugi		General Manager of Accounting		Phone: +81-3-6838-6101
Filing of Shihanki Hokokusho (scheduled):				November 28, 2016		Trading Accounts: Established
Commencement of Dividend Payment (scheduled):				December 6, 2016
Supplementary Materials on Quarterly Results:				Attached
IR Conference on Quarterly Results:				Scheduled

Amounts less than one million yen are rounded down.

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2016 (for the six months ended September 30, 2016)

(1) Consolidated Results of Operations

 

		(%: Changes from the previous first half)
		Ordinary Income								Ordinary Profits								Profit Attributable to Owners of Parent
		¥ million				%				¥ million				%				¥ million				%
1H F2016			1,563,262				(4.5	)			420,944				(26.7	)			358,183				(6.7	)
1H F2015			1,637,697				8.2				574,590				6.8				384,198				8.1

 

Note:		Comprehensive Income: 1H F2016: ¥199,853 million, 106.4%; 1H F2015: ¥96,820 million, (87.0)%

 

		Net Income per Share of Common Stock				Diluted Net Income per Share of Common Stock
		¥				¥
1H F2016			14.21				14.11
1H F2015			15.48				15.13

(2) Consolidated Financial Conditions

 

		Total Assets				Total Net Assets				Own Capital Ratio
		¥ million				¥ million				%
1H F2016			192,679,978				8,970,260				4.2
Fiscal 2015			193,458,580				9,353,244				4.2

 

Reference:		Own Capital: As of September 30, 2016: ¥8,253,934 million; As of March 31, 2016: ¥8,167,813 million

Note:		Own Capital Ratio is calculated as follows: (Total Net Assets - Stock Acquisition Rights - Non-controlling Interests) / Total Assets ×100 Own Capital Ratio stated above is not calculated based on the public notice of Own Capital Ratio.

2. Cash Dividends for Shareholders of Common Stock

 

		Annual Cash Dividends per Share
		First Quarter-end				Second Quarter-end				Third Quarter-end				Fiscal Year-end				Total
		¥				¥				¥				¥				¥
Fiscal 2015			—				3.75				—				3.75				7.50
Fiscal 2016			—				3.75
Fiscal 2016 (estimate)											—				3.75				7.50

 

Notes:		1.		Revision of the latest announced estimates for cash dividends for shareholders of common stock: No
		2.		Please refer to the following “Cash Dividends for Shareholders of Classified Stock” for cash dividends for shareholders of classified stock (unlisted), the rights of which are different from those of common stock.

3. Consolidated Earnings Estimates for Fiscal 2016 (for the fiscal year ending March 31, 2017)

 

		(%: Changes from the previous fiscal year)
		Profit Attributable to Owners of Parent								Net Income per Share of Common Stock
		¥ million				%				¥
Fiscal 2016			600,000				(10.5	)			23.72

 

Notes:		1.		Revision of the latest announced earnings estimates for fiscal 2016: No
		2.		The number of shares of common stock used in the above calculation is based on the weighted average of “the average number of shares during the 1H of fiscal 2016” and “the number of shares as of September 30, 2016 (which is expected to be the average number of shares during the 2H of fiscal 2016)”.

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* Notes

(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries accompanying changes in the scope of consolidation): No

(2) Changes in Accounting Policies and Accounting Estimates / Restatements

① Changes in accounting policies due to revisions of accounting standards, etc.: Yes

② Changes in accounting policies other than ① above: No

③ Changes in accounting estimates: No

④ Restatements: No

 

(Note)

For more information, please refer to “(1) Changes in Accounting Policies and Accounting Estimates / Restatements” on page 1-2 of the attachment.

(3) Issued Shares of Common Stock

 

Non-consolidated Financial Statements

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2016 (for the six months ended September 30, 2016)

 

(1) Non-Consolidated Results of Operations		(%: Changes from the previous first half)

		Operating Income								Operating Profits								Ordinary Profits								Net Income
		¥ million				%				¥ million				%				¥ million				%				¥ million				%
1H F2016			352,171				13.1				334,013				12.4				324,541				10.5				323,274				7.3
1H F2015			311,130				(13.8	)			297,082				(14.6	)			293,675				(15.3	)			301,115				(13.0	)
		Net Income per Share of Common Stock
						¥
1H F2016							12.82
1H F2015							12.12

(2) Non-Consolidated Financial Conditions

 

		Total Assets				Total Net Assets				Own Capital Ratio
		¥ million				¥ million				%
1H F2016			8,569,404				5,424,552				63.2
Fiscal 2015			7,064,211				5,197,208				73.5

 

Reference:		Own Capital: As of September 30, 2016: ¥5,422,798 million; As of March 31, 2016: ¥5,194,445 million

(Presentation of Implementation Status of Interim Review Procedure)

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

 

 

This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Business Plan, realize the synergy effects of “One MIZUHO,” and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”), which is available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

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

 

 

 

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Cash Dividends for Shareholders of Classified Stock

Breakdown of cash dividends per share related to classified stock, the rights of which are different from those of common stock, is as follows:

 

		Annual Cash Dividends per Share
		First Quarter-end				Second Quarter-end				Third Quarter-end				Fiscal Year-end				Total
		¥				¥				¥				¥				¥
Eleventh Series Class XI Preferred Stock
Fiscal 2015			—				10.00				—				10.00				20.00
Fiscal 2016			—

 

Note:		Mizuho Financial Group Inc. (“MHFG”) acquired all of the Eleventh Series Class XI Preferred Stock as of July 1, 2016 that had not been requested for acquisition by June 30, 2016 and cancelled all of the Eleventh Series Class XI Preferred Stock held by MHFG on July 13, 2016. Accordingly, cash dividend payments related to the Eleventh Series Class XI Preferred Stock will not be made in fiscal 2016.

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Mizuho Financial Group, Inc.

 

m Contents of Attachment

 

1.		Matters Related to Summary Information (Notes)			p.1-2
		(1) Changes in Accounting Policies and Accounting Estimates / Restatements			p.1-2
2.		Interim Consolidated Financial Statements			p.1-3
		(1) Consolidated Balance Sheets			p.1-3
		(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			p.1-5
		(3) Consolidated Statements of Changes in Net Assets			p.1-7
		(4) Note for Assumption of Going Concern			p.1-8
3.		Interim Non-Consolidated Financial Statements			p.1-9
		(1) Non-Consolidated Balance Sheets			p.1-9
		(2) Non-Consolidated Statements of Income			p.1-10
		(3) Non-Consolidated Statements of Changes in Net Assets			p.1-11
		øSELECTED FINANCIAL INFORMATION For the Second Quarter (First Half) of Fiscal 2016

[Note to XBRL]

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

An MHFG IR conference for institutional investors and analysts is scheduled for November 22, 2016 (Tuesday). The IR conference presentation materials and audio archive will be available for use by individual investors in the IR Information section of the Mizuho Financial Group HP immediately after the conference.

 

1-1

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Mizuho Financial Group, Inc.

 

1. Matters Related to Summary Information (Notes)

(1) Changes in Accounting Policies and Accounting Estimates / Restatements

(Changes in Accounting Policies)

(Application of “Revised Implementation Guidance on Recoverability of Deferred Tax Assets”)

MHFG has applied “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26, March 28, 2016) (hereinafter, the “Recoverability Implementation Guidance”) from this interim period ended September 30, 2016 and partially revised the accounting method of recoverability of deferred tax assets.

The Recoverability Implementation Guidance has been applied in accordance with the transitional treatment set forth in Article 49(4) of the Recoverability Implementation Guidance. The differences between (i) the amounts of Deferred Tax Assets and Deferred Tax Liabilities when provisions applicable from ① to ③ of Article 49(3) of the Recoverability Implementation Guidance were applied as of April 1, 2016, and (ii) the amounts of Deferred Tax Assets and Deferred Tax Liabilities at the end of the fiscal year ended March 31, 2016, were added to Retained Earnings as of April 1, 2016.

As a result, Deferred Tax Assets (before offset) and Retained Earnings each increased by ¥ 1,426 million as of April 1, 2016.

As a result of reflection of the effects on the Net Asset as of April 1, 2016, Retained Earnings increased by ¥1,426 million as of April 1, 2016 in the interim consolidated statements of changes in net assets.

 

1-2

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Mizuho Financial Group, Inc.

 

2. Interim Consolidated Financial Statements

(1) Consolidated Balance Sheets

 

		Millions of yen
		As of    March 31, 2016				As of September 30, 2016
Assets
Cash and Due from Banks		¥	36,315,471			¥	42,715,384
Call Loans and Bills Purchased			893,545				899,865
Receivables under Resale Agreements			7,805,798				9,258,984
Guarantee Deposits Paid under Securities Borrowing Transactions			3,407,390				3,195,977
Other Debt Purchased			2,979,797				2,527,270
Trading Assets			13,004,522				12,511,953
Money Held in Trust			175,638				227,975
Securities			39,505,971				32,705,104
Loans and Bills Discounted			73,708,884				73,030,669
Foreign Exchange Assets			1,447,743				1,452,483
Derivatives other than for Trading Assets			3,157,752				2,957,197
Other Assets			4,144,131				4,272,085
Tangible Fixed Assets			1,085,791				1,071,524
Intangible Fixed Assets			804,567				869,070
Net Defined Benefit Asset			646,428				673,562
Deferred Tax Assets			36,517				77,011
Customers’ Liabilities for Acceptances and Guarantees			4,798,158				4,675,296
Reserves for Possible Losses on Loans			(459,531	)			(441,438	)
Total Assets		¥	193,458,580			¥	192,679,978

 

1-3

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Mizuho Financial Group, Inc.

 

		Millions of yen
		As of March 31, 2016				As of September 30, 2016
Liabilities
Deposits		¥	105,629,071			¥	110,171,994
Negotiable Certificates of Deposit			11,827,533				9,568,325
Call Money and Bills Sold			2,521,008				1,791,651
Payables under Repurchase Agreements			16,833,346				17,739,258
Guarantee Deposits Received under Securities Lending Transactions			2,608,971				1,314,573
Commercial Paper			1,010,139				827,552
Trading Liabilities			10,276,133				9,878,751
Borrowed Money			7,503,543				7,243,394
Foreign Exchange Liabilities			492,473				582,971
Short-term Bonds			648,381				408,033
Bonds and Notes			6,120,928				7,131,121
Due to Trust Accounts			5,067,490				4,053,768
Derivatives other than for Trading Liabilities			2,571,597				2,001,471
Other Liabilities			5,532,596				5,755,737
Reserve for Bonus Payments			62,171				47,174
Reserve for Variable Compensation			2,836				1,488
Net Defined Benefit Liability			51,514				52,668
Reserve for Director and Corporate Auditor Retirement Benefits			1,685				1,376
Reserve for Possible Losses on Sales of Loans			267				3
Reserve for Contingencies			5,271				4,889
Reserve for Reimbursement of Deposits			16,154				15,828
Reserve for Reimbursement of Debentures			39,245				35,273
Reserves under Special Laws			2,024				2,219
Deferred Tax Liabilities			414,799				337,644
Deferred Tax Liabilities for Revaluation Reserve for Land			67,991				67,247
Acceptances and Guarantees			4,798,158				4,675,296
Total Liabilities		¥	184,105,335			¥	183,709,717
Net Assets
Common Stock and Preferred Stock		¥	2,255,790			¥	2,256,275
Capital Surplus			1,110,164				1,111,299
Retained Earnings			3,197,616				3,464,082
Treasury Stock			(3,609	)			(5,098	)
Total Shareholders’ Equity			6,559,962				6,826,558
Net Unrealized Gains (Losses) on Other Securities			1,296,039				1,134,348
Deferred Gains or Losses on Hedges			165,264				167,078
Revaluation Reserve for Land			148,483				146,794
Foreign Currency Translation Adjustments			(53,689	)			(85,900	)
Remeasurements of Defined Benefit Plans			51,752				65,055
Total Accumulated Other Comprehensive Income			1,607,851				1,427,376
Stock Acquisition Rights			2,762				1,754
Non-Controlling Interests			1,182,668				714,572
Total Net Assets			9,353,244				8,970,260
Total Liabilities and Net Assets		¥	193,458,580			¥	192,679,978

 

1-4

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Mizuho Financial Group, Inc.

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

[Consolidated Statements of Income]

 

		Millions of yen
		For the six months ended September 30, 2015				For the six months ended September 30, 2016
Ordinary Income		¥	1,637,697			¥	1,563,262
Interest Income			720,592				678,188
Interest on Loans and Bills Discounted			463,500				442,430
Interest and Dividends on Securities			158,508				129,547
Fiduciary Income			26,399				24,729
Fee and Commission Income			369,856				359,011
Trading Income			145,813				213,872
Other Operating Income			186,370				165,262
Other Ordinary Income			188,664				122,198
Ordinary Expenses			1,063,107				1,142,318
Interest Expenses			197,081				241,807
Interest on Deposits			77,722				92,531
Fee and Commission Expenses			76,897				76,101
Trading Expenses			1,686				1,467
Other Operating Expenses			41,511				32,009
General and Administrative Expenses			673,456				704,164
Other Ordinary Expenses			72,475				86,766
Ordinary Profits			574,590				420,944
Extraordinary Gains			19,573				1,426
Extraordinary Losses			2,233				3,245
Income before Income Taxes			591,930				419,125
Income Taxes:
Current			134,814				101,907
Deferred			38,853				(63,140	)
Total Income Taxes			173,667				38,766
Profit			418,262				380,358
Profit Attributable to Non-controlling Interests			34,064				22,175
Profit Attributable to Owners of Parent		¥	384,198			¥	358,183

 

1-5

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Mizuho Financial Group, Inc.

 

[Consolidated Statements of Comprehensive Income]

 

		Millions of yen
		For the six months ended September 30, 2015				For the six months ended September 30, 2016
Profit		¥	418,262			¥	380,358
Other Comprehensive Income			(321,442	)			(180,505	)
Net Unrealized Gains (Losses) on Other Securities			(349,353	)			(161,503	)
Deferred Gains or Losses on Hedges			32,591				1,814
Revaluation Reserve for Land			10				(5	)
Foreign Currency Translation Adjustments			(3,313	)			(21,853	)
Remeasurements of Defined Benefit Plans			(1,109	)			13,420
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method			(267	)			(12,377	)
Comprehensive Income			96,820				199,853
(Breakdown)
Comprehensive Income Attributable to Owners of Parent			63,060				179,392
Comprehensive Income Attributable to Non-controlling Interests			33,759				20,461

 

1-6

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Mizuho Financial Group, Inc.

 

(3) Consolidated Statements of Changes in Net Assets

For the six months ended September 30, 2015

 

		Millions of yen
		Shareholders’ Equity
		Common Stock and Preferred Stock				Capital Surplus				Retained Earnings				Treasury Stock				Total Shareholders’ Equity
Balance as of the beginning of the period			2,255,404				1,110,006				2,769,371				(3,616	)			6,131,166
Cumulative Effects of Changes in Accounting Policies							935				(48,999	)							(48,063	)
Balance as of the beginning of the period reflecting Changes in Accounting Policies			2,255,404				1,110,942				2,720,371				(3,616	)			6,083,102
Changes during the period
Issuance of New Shares			386				386												772
Cash Dividends											(100,584	)							(100,584	)
Profit Attributable to Owners of Parent											384,198								384,198
Repurchase of Treasury Stock															(683	)			(683	)
Disposition of Treasury Stock							82								268				350
Transfer from Revaluation Reserve for Land											983								983
Net Changes in Items other than Shareholders’ Equity
Total Changes during the period			386				468				284,597				(415	)			285,036
Balance as of the end of the period			2,255,790				1,111,410				3,004,969				(4,031	)			6,368,139

 

		Accumulated Other Comprehensive Income
		Net Unrealized Gains (Losses) on Other Securities				Deferred Gains or Losses on Hedges				Revaluation Reserve for Land				Foreign Currency Translation Adjustments				Remeasurements of Defined Benefit Plans				Total Accumulated Other Comprehensive Income				Stock Acquisition Rights				Non-Controlling Interests				Total Net Assets
Balance as of the beginning of the period			1,737,348				26,635				146,419				(40,454	)			160,005				2,029,955				3,820				1,635,595				9,800,538
Cumulative Effects of Changes in Accounting Policies																																			(48,063	)
Balance as of the beginning of the period reflecting Changes in Accounting Policies			1,737,348				26,635				146,419				(40,454	)			160,005				2,029,955				3,820				1,635,595				9,752,474
Changes during the period
Issuance of New Shares																																			772
Cash Dividends																																			(100,584	)
Profit Attributable to Owners of Parent																																			384,198
Repurchase of Treasury Stock																																			(683	)
Disposition of Treasury Stock																																			350
Transfer from Revaluation Reserve for Land																																			983
Net Changes in Items other than Shareholders’ Equity			(350,726	)			32,469				(972	)			(3,297	)			404				(322,121	)			(1,057	)			(449,501	)			(772,680	)
Total Changes during the period			(350,726	)			32,469				(972	)			(3,297	)			404				(322,121	)			(1,057	)			(449,501	)			(487,643	)
Balance as of the end of the period			1,386,622				59,105				145,446				(43,751	)			160,410				1,707,834				2,762				1,186,094				9,264,830

 

1-7

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Mizuho Financial Group, Inc.

 

For the six months ended September 30, 2016

 

		Millions of yen
		Shareholders’ Equity
		Common Stock and Preferred Stock				Capital Surplus				Retained Earnings				Treasury Stock				Total Shareholders’ Equity
Balance as of the beginning of the period			2,255,790				1,110,164				3,197,616				(3,609	)			6,559,962
Cumulative Effects of Changes in Accounting Policies											1,426								1,426
Balance as of the beginning of the period reflecting Changes in Accounting Policies			2,255,790				1,110,164				3,199,042				(3,609	)			6,561,388
Changes during the period
Issuance of New Shares			484				484												969
Cash Dividends											(94,827	)							(94,827	)
Profit Attributable to Owners of Parent											358,183								358,183
Repurchase of Treasury Stock															(1,869	)			(1,869	)
Disposition of Treasury Stock							(55	)							380				324
Cancellation of Treasury Stock							(1	)							1				—
Transfer from Revaluation Reserve for Land											1,683								1,683
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders							706												706
Net Changes in Items other than Shareholders’ Equity
Total Changes during the period			484				1,134				265,039				(1,488	)			265,170
Balance as of the end of the period			2,256,275				1,111,299				3,464,082				(5,098	)			6,826,558

 

		Accumulated Other Comprehensive Income																								Stock Acquisition Rights				Non-Controlling Interests				Total Net Assets
		Net Unrealized Gains (Losses) on Other Securities				Deferred Gains or Losses on Hedges				Revaluation Reserve for Land				Foreign Currency Translation Adjustments				Remeasurements of Defined Benefit Plans				Total Accumulated Other Comprehensive Income
Balance as of the beginning of the period			1,296,039				165,264				148,483				(53,689	)			51,752				1,607,851				2,762				1,182,668				9,353,244
Cumulative Effects of Changes in Accounting Policies																																			1,426
Balance as of the beginning of the period reflecting Changes in Accounting Policies			1,296,039				165,264				148,483				(53,689	)			51,752				1,607,851				2,762				1,182,668				9,354,670
Changes during the period
Issuance of New Shares																																			969
Cash Dividends																																			(94,827	)
Profit Attributable to Owners of Parent																																			358,183
Repurchase of Treasury Stock																																			(1,869	)
Disposition of Treasury Stock																																			324
Cancellation of Treasury Stock																																			—
Transfer from Revaluation Reserve for Land																																			1,683
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders																																			706
Net Changes in Items other than Shareholders’ Equity			(161,691	)			1,814				(1,689	)			(32,211	)			13,302				(180,475	)			(1,008	)			(468,096	)			(649,579	)
Total Changes during the period			(161,691	)			1,814				(1,689	)			(32,211	)			13,302				(180,475	)			(1,008	)			(468,096	)			(384,409	)
Balance as of the end of the period			1,134,348				167,078				146,794				(85,900	)			65,055				1,427,376				1,754				714,572				8,970,260

(4) Note for Assumption of Going Concern

There is no applicable information.

 

1-8

---

Mizuho Financial Group, Inc.

 

3. Interim Non-Consolidated Financial Statements

(1) Non-Consolidated Balance Sheets

 

		Millions of yen
		As of March 31, 2016				As of September 30, 2016
Assets
Current Assets
Cash and Due from Banks		¥	16,442			¥	84,155
Other Current Assets			74,374				88,204
Total Current Assets			90,816				172,359
Fixed Assets
Tangible Fixed Assets			165,803				165,626
Intangible Fixed Assets			8,451				11,502
Investments			6,799,139				8,219,915
Investments in Subsidiaries and Affiliates			6,022,661				6,009,518
Long-term Loans to Subsidiaries and Affiliates			624,517				2,063,960
Other Investments			151,961				146,436
Total Fixed Assets			6,973,394				8,397,044
Total Assets		¥	7,064,211			¥	8,569,404
Liabilities
Current Liabilities
Short-term Borrowings		¥	686,345			¥	515,560
Short-term Bonds			500,000				500,000
Accrued Corporate Taxes			29				446
Reserve for Bonus Payments			319				332
Reserve for Variable Compensation			343				240
Other Current Liabilities			10,171				19,072
Total Current Liabilities			1,197,207				1,035,651
Non-Current Liabilities
Bonds and Notes			584,517				1,998,960
Long-term Borrowings			40,000				65,000
Reserve for Employee Retirement Benefits			3,761				4,233
Other Non-Current Liabilities			41,516				41,006
Total Non-Current Liabilities			669,794				2,109,200
Total Liabilities		¥	1,867,002			¥	3,144,851
Net Assets
Shareholders’ Equity
Common Stock and Preferred Stock		¥	2,255,790			¥	2,256,275
Capital Surplus
Capital Reserve			1,195,682				1,196,167
Other Capital Surplus			147				91
Total Capital Surplus			1,195,830				1,196,258
Retained Earnings
Appropriated Reserve			4,350				4,350
Other Retained Earnings			1,698,699				1,927,146
Retained Earnings Brought Forward			1,698,699				1,927,146
Total Retained Earnings			1,703,049				1,931,496
Treasury Stock			(2,813	)			(4,141	)
Total Shareholders’ Equity			5,151,857				5,379,889
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes			42,588				42,909
Total Valuation and Translation Adjustments			42,588				42,909
Stock Acquisition Rights			2,762				1,754
Total Net Assets			5,197,208				5,424,552
Total Liabilities and Net Assets		¥	7,064,211			¥	8,569,404

 

1-9

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Mizuho Financial Group, Inc.

 

(2) Non-Consolidated Statements of Income

 

		Millions of yen
		For the six months ended September 30, 2015				For the six months ended September 30, 2016
Operating Income		¥	311,130			¥	352,171
Operating Expenses
General and Administrative Expenses			14,047				18,158
Total Operating Expenses			14,047				18,158
Operating Profits			297,082				334,013
Non-Operating Income			5,983				17,198
Non-Operating Expenses			9,389				26,669
Ordinary Profits			293,675				324,541
Extraordinary Gains			8,147				—
Extraordinary Losses			2				8
Income before Income Taxes			301,821				324,532
Income Taxes:
Current			651				1,190
Deferred			54				67
Total Income Taxes			706				1,258
Net Income		¥	301,115			¥	323,274

 

1-10

---

Mizuho Financial Group, Inc.

 

(3) Non-Consolidated Statements of Changes in Net Assets

For the six months ended September 30, 2015

 

		Millions of yen
		Shareholders’ Equity
		Common Stock and Preferred Stock				Capital Surplus												Retained Earnings												Treasury Stock				Total Shareholders’ Equity
						Capital Reserve				Other Capital Surplus				Total Capital Surplus				Appropriated Reserve				Other Retained Earnings				Total Retained Earnings
																						Retained Earnings Brought Forward
Balance as of the beginning of the period			2,255,404				1,195,296				66				1,195,363				4,350				1,589,574				1,593,924				(3,011	)			5,041,680
Changes during the period
Issuance of New Shares			386				386								386																				772
Cash Dividends																							(100,584	)			(100,584	)							(100,584	)
Net Income																							301,115				301,115								301,115
Repurchase of Treasury Stock																															(8	)			(8	)
Disposition of Treasury Stock											82				82																210				292
Net Changes in Items other than Shareholders’ Equity
Total Changes during the period			386				386				82				468				—				200,531				200,531				202				201,587
Balance as of the end of the period			2,255,790				1,195,682				148				1,195,831				4,350				1,790,105				1,794,455				(2,809	)			5,243,268

 

		Valuation and Translation Adjustments				Stock Acquisition Rights				Total Net Assets
		Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Balance as of the beginning of the period			50,704				3,820				5,096,205
Changes during the period
Issuance of New Shares											772
Cash Dividends											(100,584	)
Net Income											301,115
Repurchase of Treasury Stock											(8	)
Disposition of Treasury Stock											292
Net Changes in Items other than Shareholders’ Equity			(17,170	)			(1,057	)			(18,228	)
Total Changes during the period			(17,170	)			(1,057	)			183,359
Balance as of the end of the period			33,534				2,762				5,279,565

 

1-11

---

Mizuho Financial Group, Inc.

 

For the six months ended September 30, 2016

 

		Millions of yen
		Shareholders’ Equity
		Common Stock and Preferred Stock				Capital Surplus												Retained Earnings												Treasury Stock				Total Shareholders’ Equity
						Capital Reserve				Other Capital Surplus				Total Capital Surplus				Appropriated Reserve				Other Retained Earnings				Total Retained Earnings
																						Retained Earnings Brought Forward
Balance as of the beginning of the period			2,255,790				1,195,682				147				1,195,830				4,350				1,698,699				1,703,049				(2,813	)			5,151,857
Changes during the period
Issuance of New Shares			484				484								484																				969
Cash Dividends																							(94,827	)			(94,827	)							(94,827	)
Net Income																							323,274				323,274								323,274
Repurchase of Treasury Stock																															(1,430	)			(1,430	)
Disposition of Treasury Stock											(55	)			(55	)															101				46
Cancellation of Treasury Stock											(1	)			(1	)															1				—
Net Changes in Items other than Shareholders’ Equity
Total Changes during the period			484				484				(56	)			428				—				228,446				228,446				(1,327	)			228,031
Balance as of the end of the period			2,256,275				1,196,167				91				1,196,258				4,350				1,927,146				1,931,496				(4,141	)			5,379,889

 

		Valuation and Translation Adjustments				Stock Acquisition Rights				Total Net Assets
		Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Balance as of the beginning of the period			42,588				2,762				5,197,208
Changes during the period
Issuance of New Shares											969
Cash Dividends											(94,827	)
Net Income											323,274
Repurchase of Treasury Stock											(1,430	)
Disposition of Treasury Stock											46
Cancellation of Treasury Stock											—
Net Changes in Items other than Shareholders’ Equity			320				(1,008	)			(687	)
Total Changes during the period			320				(1,008	)			227,343
Balance as of the end of the period			42,909				1,754				5,424,552

 

1-12

---

SELECTED FINANCIAL INFORMATION

For the Second Quarter (First Half) of Fiscal 2016

(Six months ended September 30, 2016)

<Under Japanese GAAP>

 

 

 

Mizuho Financial Group, Inc.

---

C O N T E N T S

 

 

Notes:

“CON”: Consolidated figures for Mizuho Financial Group, Inc. (“MHFG”)

“NON”: Non-consolidated figures for Mizuho Financial Group, Inc., Mizuho Bank, Ltd. (“MHBK”) and Mizuho Trust & Banking Co., Ltd. (“MHTB”)

 

 

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2016

See above Notes

Page

1. Income Analysis

CON

NON

2-1

2. Interest Margins (Domestic Operations)

NON

2-5

3. Use and Source of Funds

NON

2-6

4. Net Gains/Losses on Securities

CON

NON

2-7

5. Unrealized Gains/Losses on Securities

CON

NON

2-9

6. Projected Redemption Amounts for Securities

NON

2-11

7. Overview of Derivative Transactions Qualifying for Hedge Accounting

NON

2-12

8. Employee Retirement Benefits

NON

CON

2-13

9. Capital Ratio

CON

NON

2-15

 

II. REVIEW OF CREDITS

See above Notes

Page

1. Status of Non-Accrual, Past Due & Restructured Loans

CON

NON

2-16

2. Status of Reserves for Possible Losses on Loans

CON

NON

2-18

3. Reserve Ratios for Non-Accrual, Past Due & Restructured Loans

CON

NON

2-19

4. Status of Disclosed Claims under the Financial Reconstruction Act (“FRA”)

CON

NON

2-20

5. Coverage on Disclosed Claims under the FRA

NON

2-22

6. Overview of Non-Performing Loans(“NPLs”)

NON

2-24

7. Results of Removal of NPLs from the Balance Sheet

NON

2-25

8. Status of Loans by Industry

(1)    Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Industry

NON

2-26

(2)    Disclosed Claims under the FRA and Coverage Ratio by Industry

NON

2-28

9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises (“SMEs”) and Individual Customers

(1)    Balance of Housing and Consumer Loans

NON

2-29

(2)    Loans to SMEs and Individual Customers

NON

2-29

10. Status of Loans by Region

NON

2-30

III. DEFERRED TAXES

See above Notes

Page

1. Estimation for Calculating Deferred Tax Assets

NON

2-31

---

IV. OTHERS

See above Notes

Page

1. Breakdown of Deposits (Domestic Offices)

NON

2-33

2. Number of Directors and Employees

NON

2-34

3. Number of Branches and Offices

NON

2-35

4. Earnings Plan for Fiscal 2016

CON

NON

2-36

Attachments

Page

Mizuho Bank, Ltd.

Comparison of Non-Consolidated Balance Sheets (selected items)

2-37

Comparison of Non-Consolidated Statements of Income (selected items)

2-38

Mizuho Trust & Banking Co., Ltd.

Comparison of Non-Consolidated Balance Sheets (selected items)

2-39

Comparison of Non-Consolidated Statements of Income (selected items)

2-40

Statement of Trust Assets and Liabilities

2-41

Comparison of Balances of Principal Items

2-42

Mizuho Securities Co., Ltd.

Comparison of Non-Consolidated Balance Sheets (selected items)

2-43

Comparison of Non-Consolidated Statements of Income (selected items)

2-44

 

 

This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Business Plan, realize the synergy effects of “One MIZUHO,” and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”), which is available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

 

---

Mizuho Financial Group, Inc.

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2016

1. Income Analysis

Consolidated

 

						(Millions of yen)
						First Half of Fiscal 2016
										Change				First Half of Fiscal 2015
Consolidated Gross Profits			1				1,089,677				(42,179	)			1,131,857
Net Interest Income			2				436,380				(87,131	)			523,511
Fiduciary Income			3				24,729				(1,669	)			26,399
Credit Costs for Trust Accounts			4				—				—				—
Net Fee and Commission Income			5				282,910				(10,048	)			292,958
Net Trading Income			6				212,404				68,277				144,127
Net Other Operating Income			7				133,252				(11,607	)			144,859
General and Administrative Expenses			8				(704,164	)			(30,708	)			(673,456	)
Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans)			9				(10,313	)			3,737				(14,050	)
Losses on Write-offs of Loans			10				(10,480	)			3,740				(14,220	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			11				23,843				5,844				17,998
Net Gains (Losses) related to Stocks			12				60,862				(53,988	)			114,850
Equity in Income from Investments in Affiliates			13				11,327				(5,201	)			16,529
Other			14				(50,288	)			(31,149	)			(19,139	)
Ordinary Profits			15				420,944				(153,645	)			574,590
Net Extraordinary Gains (Losses)			16				(1,819	)			(19,159	)			17,340
Income before Income Taxes			17				419,125				(172,804	)			591,930
Income Taxes—Current			18				(101,907	)			32,906				(134,814	)
—Deferred			19				63,140				101,994				(38,853	)
Profit			20				380,358				(37,903	)			418,262
Profit Attributable to Non-controlling Interests			21				(22,175	)			11,889				(34,064	)
Profit Attributable to Owners of Parent			22				358,183				(26,014	)			384,198
Credit-related Costs (including Credit Costs for Trust Accounts)			23				13,529				9,581				3,948
* Credit-related Costs [23] =   Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans) [9] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [11] + Credit Costs for Trust Accounts [4]
(Reference)
Consolidated Net Business Profits			24				403,245				(43,480	)			446,725
* Consolidated Net Business Profits [24] =    Consolidated Gross Profits [1] – General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments
Number of consolidated subsidiaries			25				142				(5	)			147
Number of affiliates under the equity method			26				22				(2	)			24

 

2-1

---

Mizuho Financial Group, Inc.

 

Aggregate Figures for the 2 Banks

Non-Consolidated

 

						(Millions of yen)
						First Half of Fiscal 2016																First Half of Fiscal 2015
						MHBK				MHTB				Aggregate Figures				Change
Gross Profits			1				707,357				60,815				768,172				(54,809	)			822,982
Domestic Gross Profits			2				419,605				54,575				474,180				(2,531	)			476,711
Net Interest Income			3				260,933				12,363				273,296				(26,709	)			300,006
Fiduciary Income			4								24,295				24,295				(2,487	)			26,782
Trust Fees for Jointly Operated Designated Money Trust			5								1,596				1,596				141				1,455
Credit Costs for Trust Accounts *			6								—				—				—				—
Net Fee and Commission Income			7				114,490				12,718				127,208				5,575				121,633
Net Trading Income			8				(5,326	)			1,590				(3,736	)			(7,385	)			3,648
Net Other Operating Income			9				49,508				3,607				53,116				28,475				24,640
International Gross Profits			10				287,752				6,239				293,992				(52,278	)			346,270
Net Interest Income			11				101,427				2,936				104,363				(46,515	)			150,878
Net Fee and Commission Income			12				69,129				(587	)			68,542				(8,762	)			77,305
Net Trading Income			13				80,390				(1,113	)			79,276				38,834				40,442
Net Other Operating Income			14				36,804				5,004				41,809				(35,834	)			77,644
General and Administrative Expenses (excluding Non-Recurring Losses)			15				(423,676	)			(40,662	)			(464,339	)			(7,745	)			(456,593	)
Expense Ratio			16				59.8	%			66.8	%			60.4	%			4.9	%			55.4	%
Personnel Expenses			17				(156,150	)			(19,078	)			(175,229	)			(4,773	)			(170,456	)
Non-Personnel Expenses			18				(238,715	)			(19,514	)			(258,230	)			(1,208	)			(257,022	)
Premium for Deposit Insurance			19				(16,079	)			(708	)			(16,788	)			(882	)			(15,905	)
Miscellaneous Taxes			20				(28,810	)			(2,069	)			(30,879	)			(1,764	)			(29,115	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)			21				283,681				20,152				303,833				(62,555	)			366,389
Excluding Net Gains (Losses) related to Bonds			22				190,713				11,521				202,234				(87,164	)			289,399
Reversal of (Provision for) General Reserve for Losses on Loans			23				8,685				—				8,685				8,685				—
Net Business Profits			24				292,366				20,152				312,518				(53,870	)			366,389
Net Gains (Losses) related to Bonds			25				92,967				8,631				101,598				24,609				76,989
Net Non-Recurring Gains (Losses)			26				(11,196	)			10,699				(496	)			(75,905	)			75,409
Net Gains (Losses) related to Stocks			27				51,346				14,039				65,385				(34,270	)			99,656
Expenses related to Portfolio Problems			28				(15,823	)			(2	)			(15,825	)			(3,810	)			(12,015	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			29				16,094				471				16,565				5,017				11,548
Other			30				(62,813	)			(3,809	)			(66,622	)			(42,842	)			(23,780	)
Ordinary Profits			31				281,170				30,851				312,022				(129,775	)			441,798
Net Extraordinary Gains (Losses)			32				(1,220	)			(61	)			(1,282	)			(6,297	)			5,014
Net Gains (Losses) on Disposition of Fixed Assets			33				184				(61	)			122				(5,161	)			5,284
Losses on Impairment of Fixed Assets			34				(1,405	)			—				(1,405	)			(1,135	)			(269	)
Income before Income Taxes			35				279,949				30,789				310,739				(136,072	)			446,812
Income Taxes—Current			36				(76,978	)			(7,952	)			(84,930	)			31,518				(116,448	)
—Deferred			37				9,716				(261	)			9,455				35,770				(26,315	)
Net Income			38				212,688				22,576				235,264				(68,783	)			304,048
* Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) for MHTB excludes the amounts of “Credit Costs for Trust Accounts” [6].
Credit-related Costs			39				8,955				469				9,425				9,892				(466	)
* Credit-related Costs [39] =    Expenses related to Portfolio Problems [28] + Reversal of (Provision for) General Reserve for Losses on Loans [23] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [29] + Credit Costs for Trust Accounts [6]
(Reference) Breakdown of Credit-related Costs
Credit Costs for Trust Accounts			40								—				—				—				—
Reversal of (Provision for) General Reserve for Losses on Loans			41				8,685				352				9,038				7,209				1,829
Losses on Write-offs of Loans			42				7,427				(2	)			7,425				10,637				(3,211	)
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			43				(7,091	)			118				(6,973	)			(7,548	)			575
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			44				4				0				4				(580	)			584
Reversal of (Provision for) Reserve for Contingencies			45				362				—				362				169				192
Other (including Losses on Sales of Loans)			46				(431	)			—				(431	)			5				(437	)
Total			47				8,955				469				9,425				9,892				(466	)

 

2-2

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Mizuho Financial Group, Inc.

 

Mizuho Bank

Non-Consolidated

 

						(Millions of yen)
						First Half of Fiscal 2016
										Change				First Half of Fiscal 2015
Gross Profits			1				707,357				(48,921	)			756,279
Domestic Gross Profits			2				419,605				(3,058	)			422,663
Net Interest Income			3				260,933				(23,865	)			284,799
Net Fee and Commission Income			4				114,490				4,376				110,113
Net Trading Income			5				(5,326	)			(11,491	)			6,164
Net Other Operating Income			6				49,508				27,922				21,586
International Gross Profits			7				287,752				(45,863	)			333,616
Net Interest Income			8				101,427				(44,631	)			146,058
Net Fee and Commission Income			9				69,129				(8,454	)			77,584
Net Trading Income			10				80,390				43,353				37,037
Net Other Operating Income			11				36,804				(36,130	)			72,935
General and Administrative Expenses (excluding Non-Recurring Losses)			12				(423,676	)			(5,845	)			(417,831	)
Expense Ratio			13				59.8	%			4.6	%			55.2	%
Personnel Expenses			14				(156,150	)			(3,665	)			(152,485	)
Non-Personnel Expenses			15				(238,715	)			(448	)			(238,266	)
Premium for Deposit Insurance			16				(16,079	)			(794	)			(15,285	)
Miscellaneous Taxes			17				(28,810	)			(1,730	)			(27,079	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)			18				283,681				(54,767	)			338,448
Excluding Net Gains (Losses) related to Bonds			19				190,713				(78,642	)			269,355
Reversal of (Provision for) General Reserve for Losses on Loans			20				8,685				8,685				—
Net Business Profits			21				292,366				(46,082	)			338,448
Net Gains (Losses) related to Bonds			22				92,967				23,874				69,092
Net Non-Recurring Gains (Losses)			23				(11,196	)			(83,802	)			72,606
Net Gains (Losses) related to Stocks			24				51,346				(45,591	)			96,938
Expenses related to Portfolio Problems			25				(15,823	)			(3,808	)			(12,015	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			26				16,094				5,566				10,528
Other			27				(62,813	)			(39,969	)			(22,844	)
Ordinary Profits			28				281,170				(129,884	)			411,055
Net Extraordinary Gains (Losses)			29				(1,220	)			(5,492	)			4,271
Net Gains (Losses) on Disposition of Fixed Assets			30				184				(4,356	)			4,541
Losses on Impairment of Fixed Assets			31				(1,405	)			(1,135	)			(269	)
Income before Income Taxes			32				279,949				(135,377	)			415,326
Income Taxes—Current			33				(76,978	)			33,172				(110,150	)
—Deferred			34				9,716				32,467				(22,750	)
Net Income			35				212,688				(69,737	)			282,426
Credit-related Costs			36				8,955				10,443				(1,487	)
* Credit-related Costs  [36] =   Expenses related to Portfolio Problems [25] + Reversal of (Provision for) General Reserve for Losses on Loans [20] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [26]
(Reference) Breakdown of Credit-related Costs
Reversal of (Provision for) General Reserve for Losses on Loans			37				8,685				7,427				1,257
Losses on Write-offs of Loans			38				7,427				10,639				(3,211	)
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			39				(7,091	)			(7,218	)			126
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			40				4				(580	)			584
Reversal of (Provision for) Reserve for Contingencies			41				362				169				192
Other (including Losses on Sales of Loans)			42				(431	)			5				(437	)
Total			43				8,955				10,443				(1,487	)

 

2-3

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Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking

Non-Consolidated

 

						(Millions of yen)
						First Half of Fiscal 2016								First Half  of Fiscal 2015
										Change
Gross Profits			1				60,815				(5,887	)			66,703
Domestic Gross Profits			2				54,575				527				54,048
Net Interest Income			3				12,363				(2,843	)			15,207
Fiduciary Income			4				24,295				(2,487	)			26,782
Trust Fees for Jointly Operated Designated Money Trust			5				1,596				141				1,455
Credit Costs for Trust Accounts *			6				—				—				—
Net Fee and Commission Income			7				12,718				1,198				11,519
Net Trading Income			8				1,590				4,106				(2,516	)
Net Other Operating Income			9				3,607				553				3,054
International Gross Profits			10				6,239				(6,414	)			12,654
Net Interest Income			11				2,936				(1,884	)			4,820
Net Fee and Commission Income			12				(587	)			(307	)			(279	)
Net Trading Income			13				(1,113	)			(4,518	)			3,404
Net Other Operating Income			14				5,004				295				4,708
General and Administrative Expenses (excluding Non-Recurring Losses)			15				(40,662	)			(1,900	)			(38,762	)
Expense Ratio			16				66.8	%			8.7	%			58.1	%
Personnel Expenses			17				(19,078	)			(1,107	)			(17,971	)
Non-Personnel Expenses			18				(19,514	)			(759	)			(18,755	)
Premium for Deposit Insurance			19				(708	)			(88	)			(619	)
Miscellaneous Taxes			20				(2,069	)			(33	)			(2,035	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)			21				20,152				(7,788	)			27,940
Excluding Net Gains (Losses) related to Bonds			22				11,521				(8,522	)			20,043
Reversal of (Provision for) General Reserve for Losses on Loans			23				—				—				—
Net Business Profits			24				20,152				(7,788	)			27,940
Net Gains (Losses) related to Bonds			25				8,631				734				7,897
Net Non-Recurring Gains (Losses)			26				10,699				7,897				2,802
Net Gains (Losses) related to Stocks			27				14,039				11,321				2,717
Expenses related to Portfolio Problems			28				(2	)			(2	)			(0	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			29				471				(548	)			1,020
Other			30				(3,809	)			(2,873	)			(936	)
Ordinary Profits			31				30,851				108				30,742
Net Extraordinary Gains (Losses)			32				(61	)			(804	)			742
Net Gains (Losses) on Disposition of Fixed Assets			33				(61	)			(804	)			742
Losses on Impairment of Fixed Assets			34				—				—				—
Income before Income Taxes			35				30,789				(695	)			31,485
Income Taxes—Current			36				(7,952	)			(1,653	)			(6,298	)
—Deferred			37				(261	)			3,303				(3,564	)
Net Income			38				22,576				953				21,622
* Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) excludes the amounts of “Credit Costs for Trust Accounts” [6].
Credit-related Costs			39				469				(551	)			1,020
* Credit-related Costs [39] =   Expenses related to Portfolio Problems [28] + Reversal of (Provision for) General Reserve for Losses on Loans [23] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [29] + Credit Costs for Trust Accounts [6]
(Reference) Breakdown of Credit-related Costs
Credit Costs for Trust Accounts			40				—				—				—
Reversal of (Provision for) General Reserve for Losses on Loans			41				352				(218	)			571
Losses on Write-offs of Loans			42				(2	)			(2	)			(0	)
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			43				118				(330	)			449
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			44				0				0				—
Reversal of (Provision for) Reserve for Contingencies			45				—				—				—
Other (including Losses on Sales of Loans)			46				—				—				—
Total			47				469				(551	)			1,020

 

 

2-4

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Mizuho Financial Group, Inc.

 

2. Interest Margins (Domestic Operations)

Non-Consolidated

 

										(%)
Mizuho Bank										First Half of Fiscal 2016								First Half  of Fiscal 2015
														Change
Return on Interest-Earning Assets							1				0.57				(0.06	)			0.64
Return on Loans and Bills Discounted *1							2				0.90				(0.09	)			1.00
Return on Securities							3				0.48				0.01				0.47
Cost of Funding (including Expenses)							4				0.73				0.00				0.73
Cost of Deposits (including Expenses)							5				0.79				(0.01	)			0.80
Cost of Deposits *2							6				0.01				(0.03	)			0.04
Cost of Other External Liabilities							7				0.20				0.03				0.17
Net Interest Margin			(1)-(4)				8				(0.15	)			(0.07	)			(0.08	)
Loan and Deposit Rate Margin (including Expenses)			(2)-(5)				9				0.10				(0.08	)			0.19
Loan and Deposit Rate Margin			(2)-(6)				10				0.89				(0.06	)			0.96
*1  Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG). *2  Deposits include Negotiable Certificates of Deposit (“NCDs”).   (Reference) After excluding loans to the Japanese government and others
Return on Loans and Bills Discounted							11				0.96				(0.10	)			1.06
Loan and Deposit Rate Margin (including Expenses)			(11)-(5)				12				0.17				(0.08	)			0.25
Loan and Deposit Rate Margin			(11)-(6)				13				0.95				(0.07	)			1.02
										(%)
Mizuho Trust & Banking										First Half of Fiscal 2016								First Half of Fiscal 2015
														Change
Return on Interest-Earning Assets							14				0.49				(0.18	)			0.68
Return on Loans and Bills Discounted *1							15				0.68				(0.23	)			0.91
Return on Securities							16				0.76				(0.29	)			1.06
Cost of Funding							17				0.09				(0.07	)			0.16
Cost of Deposits *2							18				0.04				(0.03	)			0.07
Net Interest Margin			(14)-(17)				19				0.40				(0.11	)			0.52
Loan and Deposit Rate Margin			(15)-(18)				20				0.64				(0.19	)			0.83
*1  Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG). *2  Deposits include NCDs.   (Reference) After excluding loans to the Japanese government and others
Return on Loans and Bills Discounted							21				0.75				(0.16	)			0.92
Loan and Deposit Rate Margin			(21)-(18)				22				0.71				(0.13	)			0.84
(Reference)										(%)
Aggregate Figures for the 2 Banks										First Half of Fiscal 2016								First Half of Fiscal 2015
														Change
Return on Loans and Bills Discounted *1							23				0.88				(0.10	)			0.99
Cost of Deposits *2							24				0.01				(0.03	)			0.04
Loan and Deposit Rate Margin			(23)-(24)				25				0.87				(0.07	)			0.95
*1  Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).
*2  Deposits include NCDs.
(Reference) After excluding loans to the Japanese government and others
Return on Loans and Bills Discounted							26				0.94				(0.11	)			1.05
Loan and Deposit Rate Margin			(26)-(24)				27				0.93				(0.07	)			1.01

 

2-5

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Mizuho Financial Group, Inc.

 

3. Use and Source of Funds

Non-Consolidated

Mizuho Bank

 

		(Millions of yen, %)
		First Half of Fiscal 2016																First Half of Fiscal 2015
										Change
		Average Balance				Rate				Average Balance				Rate				Average Balance				Rate
(Total)
Use of Funds			140,372,105				0.81				(2,017,379	)			(0.04	)			142,389,485				0.85
Loans and Bills Discounted			68,297,590				1.13				(2,191,933	)			(0.00	)			70,489,523				1.13
Securities			31,438,449				0.76				(6,196,201	)			(0.00	)			37,634,651				0.76
Source of Funds			140,082,105				0.29				(1,959,741	)			0.04				142,041,847				0.24
Deposits			102,255,276				0.15				8,050,164				0.03				94,205,111				0.12
NCDs			9,334,025				0.37				(6,723,681	)			0.17				16,057,707				0.20
(Domestic Operations)
Use of Funds			98,899,606				0.57				(1,704,621	)			(0.06	)			100,604,227				0.64
Loans and Bills Discounted			46,087,694				0.89				(1,243,518	)			(0.10	)			47,331,212				0.99
Securities			19,678,561				0.48				(5,760,475	)			0.01				25,439,036				0.47
Source of Funds			98,937,606				0.05				(1,215,182	)			(0.02	)			100,152,788				0.08
Deposits			80,746,519				0.01				6,651,088				(0.02	)			74,095,430				0.03
NCDs			5,924,246				0.01				(4,758,106	)			(0.06	)			10,682,352				0.08
(International Operations)
Use of Funds			44,374,602				1.29				(870,816	)			0.04				45,245,418				1.25
Loans and Bills Discounted			22,209,896				1.62				(948,414	)			0.21				23,158,311				1.41
Securities			11,759,887				1.22				(435,726	)			(0.15	)			12,195,614				1.37
Source of Funds			44,046,602				0.84				(1,302,617	)			0.24				45,349,219				0.60
Deposits			21,508,756				0.69				1,399,075			&n