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 registrants 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 ☒ 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 ☒
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- .
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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 28, 2016 | ||
Mizuho Financial Group, Inc. | ||
By: | /s/ Koichi Iida | |
Name: | Koichi Iida | |
Title: | Managing Executive Officer / Group CFO |
UNAUDITED INTERIM CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS AS
OF AND FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016
On November 28, 2016, we published our unaudited interim consolidated financial statements as of and for the six months ended September 30, 2016 prepared in accordance with Japanese GAAP as part of our interim securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. We have included in this report on Form 6-K an English translation of the unaudited interim consolidated financial statements and the notes thereto included in such interim securities report. Japanese GAAP differs in certain respects from U.S. GAAP. For a description of certain differences between U.S. GAAP and Japanese GAAP, see Item 5. Operating and Financial Review and Prospects - Reconciliation with Japanese GAAP in our most recent annual report on Form 20-F filed with the U.S. Securities Exchange Commission.
Financial Information
1. | Mizuho Financial Group, Inc. (MHFG) is a specified business company under Article 17-15, Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Information, etc. and prepares the interim consolidated financial statements in the second quarter. |
2. | The interim consolidated financial statements of MHFG are prepared in accordance with the Ordinance on the Terminology, Forms, and Preparation Methods of Interim Consolidated Financial Statements (Ordinance of the Ministry of Finance No. 24 of 1999). The classification of assets and liabilities and that of income and expenses are in accordance with the Ordinance for Enforcement of the Banking Act (Ordinance of the Ministry of Finance No. 10 of 1982). |
3. | Ernst & Young ShinNihon LLC conducted a semiannual audit on the interim consolidated financial statements of MHFG for the six months ended September 30, 2016, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act. |
- 1 -
I. Interim Consolidated Financial Statements
(1) Interim Consolidated Balance Sheet
(Millions of yen) |
||||||||||||
As of March 31, 2016 |
As of September 30, 2016 |
|||||||||||
Assets |
||||||||||||
Cash and Due from Banks |
*8 | 36,315,471 | *8 | 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 |
*8 | 13,004,522 | *8 | 12,511,953 | ||||||||
Money Held in Trust |
175,638 | 227,975 | ||||||||||
Securities |
*1, *8, *15 | 39,505,971 | *1, *8, *15 | 32,705,104 | ||||||||
Loans and Bills Discounted |
*3, *4, *5, *6, *7, *8, *9 | 73,708,884 | *3, *4, *5, *6, *7, *8, *9 | 73,030,669 | ||||||||
Foreign Exchange Assets |
*7 | 1,447,743 | *7 | 1,452,483 | ||||||||
Derivatives other than for Trading Assets |
3,157,752 | 2,957,197 | ||||||||||
Other Assets |
*8 | 4,144,131 | *8 | 4,272,085 | ||||||||
Tangible Fixed Assets |
*10, *11 | 1,085,791 | *10, *11 | 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 | ||||||||||
|
|
- 2 -
(Millions of yen) |
||||||||||||
As of March 31, 2016 |
As of September 30, 2016 |
|||||||||||
Liabilities |
||||||||||||
Deposits |
*8 | 105,629,071 | *8 | 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 |
*8 | 16,833,346 | *8 | 17,739,258 | ||||||||
Guarantee Deposits Received under Securities Lending Transactions |
*8 | 2,608,971 | *8 | 1,314,573 | ||||||||
Commercial Paper |
1,010,139 | 827,552 | ||||||||||
Trading Liabilities |
10,276,133 | 9,878,751 | ||||||||||
Borrowed Money |
*8, *12 | 7,503,543 | *8, *12 | 7,243,394 | ||||||||
Foreign Exchange Liabilities |
492,473 | 582,971 | ||||||||||
Short-term Bonds |
648,381 | 408,033 | ||||||||||
Bonds and Notes |
*13 | 6,120,928 | *13 | 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 |
*10 | 67,991 | *10 | 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 |
*10 | 148,483 | *10 | 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 | ||||||||||
|
|
- 3 -
(2) Interim Consolidated Statement of Income and
Interim Consolidated Statement of Comprehensive Income
Interim Consolidated Statement of Income
(Millions of yen) |
||||||||||||
For the six months ended |
For the six months ended |
|||||||||||
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 |
*1 | 188,664 | *1 | 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 |
*2 | 72,475 | *2 | 86,766 | ||||||||
|
|
|||||||||||
Ordinary Profits |
574,590 | 420,944 | ||||||||||
|
|
|||||||||||
Extraordinary Gains |
*3 | 19,573 | *3 | 1,426 | ||||||||
Extraordinary Losses |
*4 | 2,233 | *4 | 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 | ||||||||||
|
|
- 4 -
Interim Consolidated Statement of Comprehensive Income
(Millions of yen) |
||||||||||||
For the six months ended |
For the six months ended |
|||||||||||
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 |
- 5 -
(3) Interim Consolidated Statement 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 | 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 |
1,737,348 | 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 | ) | ||||||||||||||||||||
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|
|
|
|
|
|
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|
|||||||||||||||||||
Total Changes during the period |
(350,726 | ) | 32,469 | (972 | ) | (3,297 | ) | 404 | (322,121 | ) | (1,057 | ) | (449,501 | ) | (487,643 | ) | ||||||||||||||||||||
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|
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|
|||||||||||||||||||
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 | ||||||||||||||||||||||||||
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- 6 -
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 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
- 7 -
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 | ) | ||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
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 | ||||||||||||||||||||||||||
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- 8 -
(4) Interim Consolidated Statement of Cash Flows
(Millions of yen) | ||||||||||||||||
For the six months ended September 30, 2015 |
For the six months ended September 30, 2016 |
|||||||||||||||
Cash Flow from Operating Activities |
||||||||||||||||
Income before Income Taxes |
591,930 | 419,125 | ||||||||||||||
Depreciation |
79,352 | 79,135 | ||||||||||||||
Losses on Impairment of Fixed Assets |
390 | 1,474 | ||||||||||||||
Amortization of Goodwill |
364 | 713 | ||||||||||||||
Equity in Loss (Gain) from Investments in Affiliates |
(16,529 | ) | (11,327 | ) | ||||||||||||
Increase (Decrease) in Reserves for Possible Losses on Loans |
(60,659 | ) | 1,903 | |||||||||||||
Increase (Decrease) in Reserve for Possible Losses on Investments |
(2 | ) | | |||||||||||||
Increase (Decrease) in Reserve for Possible Losses on Sales of Loans |
207 | (263 | ) | |||||||||||||
Increase (Decrease) in Reserve for Contingencies |
(228 | ) | (463 | ) | ||||||||||||
Increase (Decrease) in Reserve for Bonus Payments |
(15,974 | ) | (11,575 | ) | ||||||||||||
Increase (Decrease) in Reserve for Variable Compensation |
| (1,347 | ) | |||||||||||||
Decrease (Increase) in Net Defined Benefit Asset |
(32,114 | ) | (8,289 | ) | ||||||||||||
Increase (Decrease) in Net Defined Benefit Liability |
2,130 | 1,868 | ||||||||||||||
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits |
40 | (308 | ) | |||||||||||||
Increase (Decrease) in Reserve for Reimbursement of Deposits |
833 | (325 | ) | |||||||||||||
Increase (Decrease) in Reserve for Reimbursement of Debentures |
(5,972 | ) | (3,971 | ) | ||||||||||||
Interest Income - accrual basis |
(720,592 | ) | (678,188 | ) | ||||||||||||
Interest Expenses - accrual basis |
197,081 | 241,807 | ||||||||||||||
Losses (Gains) on Securities |
(187,912 | ) | (171,007 | ) | ||||||||||||
Losses (Gains) on Money Held in Trust |
(89 | ) | (99 | ) | ||||||||||||
Foreign Exchange Losses (Gains) - net |
(24,695 | ) | 753,515 | |||||||||||||
Losses (Gains) on Disposition of Fixed Assets |
(5,149 | ) | 149 | |||||||||||||
Decrease (Increase) in Trading Assets |
(763,919 | ) | 70,442 | |||||||||||||
Increase (Decrease) in Trading Liabilities |
201,078 | (14,437 | ) | |||||||||||||
Decrease (Increase) in Derivatives other than for Trading Assets |
576,930 | 82,284 | ||||||||||||||
Increase (Decrease) in Derivatives other than for Trading Liabilities |
(819,395 | ) | (456,069 | ) | ||||||||||||
Decrease (Increase) in Loans and Bills Discounted |
(1,202,333 | ) | (1,841,494 | ) | ||||||||||||
Increase (Decrease) in Deposits |
2,924,036 | 6,618,771 | ||||||||||||||
Increase (Decrease) in Negotiable Certificates of Deposit |
(207,062 | ) | (1,530,518 | ) | ||||||||||||
Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money) |
335,347 | (213,945 | ) | |||||||||||||
Decrease (Increase) in Due from Banks (excluding Due from Central Banks) |
(39,839 | ) | (289,039 | ) | ||||||||||||
Decrease (Increase) in Call Loans, etc. |
283,540 | (2,021,502 | ) | |||||||||||||
Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions |
158,928 | 211,413 | ||||||||||||||
Increase (Decrease) in Call Money, etc. |
715,253 | 1,862,232 | ||||||||||||||
Increase (Decrease) in Commercial Paper |
91,277 | (78,875 | ) | |||||||||||||
Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions |
(129,975 | ) | (1,294,398 | ) | ||||||||||||
Decrease (Increase) in Foreign Exchange Assets |
(49,208 | ) | (121,055 | ) | ||||||||||||
Increase (Decrease) in Foreign Exchange Liabilities |
87,258 | 91,160 | ||||||||||||||
Increase (Decrease) in Short-term Bonds (Liabilities) |
(40,408 | ) | (240,348 | ) | ||||||||||||
Increase (Decrease) in Bonds and Notes |
(84,193 | ) | 481,825 | |||||||||||||
Increase (Decrease) in Due to Trust Accounts |
173,921 | (1,013,722 | ) | |||||||||||||
Interest and Dividend Income - cash basis |
761,229 | 698,368 | ||||||||||||||
Interest Expenses - cash basis |
(195,709 | ) | (245,866 | ) | ||||||||||||
Other - net |
1,151,799 | 1,191,287 | ||||||||||||||
|
|
|
|
|||||||||||||
Subtotal |
3,730,964 | 2,559,035 | ||||||||||||||
|
|
|
|
|||||||||||||
Cash Refunded (Paid) in Income Taxes |
(178,197 | ) | (127,391 | ) | ||||||||||||
|
|
|
|
|||||||||||||
Net Cash Provided by (Used in) Operating Activities |
3,552,766 | 2,431,643 | ||||||||||||||
|
|
|
|
- 9 -
(Millions of yen) | ||||||||||||||||
For the six months ended September 30, 2015 |
For the six months ended September 30, 2016 |
|||||||||||||||
Cash Flow from Investing Activities |
||||||||||||||||
Payments for Purchase of Securities |
(22,984,289 | ) | (24,230,237 | ) | ||||||||||||
Proceeds from Sale of Securities |
19,029,866 | 24,406,300 | ||||||||||||||
Proceeds from Redemption of Securities |
7,047,764 | 4,238,938 | ||||||||||||||
Payments for Increase in Money Held in Trust |
(1,820 | ) | (51,470 | ) | ||||||||||||
Proceeds from Decrease in Money Held in Trust |
13,609 | 92 | ||||||||||||||
Payments for Purchase of Tangible Fixed Assets |
(27,991 | ) | (22,537 | ) | ||||||||||||
Payments for Purchase of Intangible Fixed Assets |
(153,480 | ) | (169,275 | ) | ||||||||||||
Proceeds from Sale of Tangible Fixed Assets |
10,515 | 3,883 | ||||||||||||||
|
|
|
|
|||||||||||||
Net Cash Provided by (Used in) Investing Activities |
2,934,175 | 4,175,694 | ||||||||||||||
|
|
|
|
|||||||||||||
Cash Flow from Financing Activities |
||||||||||||||||
Proceeds from Subordinated Borrowed Money |
| 25,000 | ||||||||||||||
Repayments of Subordinated Borrowed Money |
(124,000 | ) | (60,000 | ) | ||||||||||||
Proceeds from Issuance of Subordinated Bonds |
350,000 | 615,000 | ||||||||||||||
Payments for Redemption of Subordinated Bonds |
(47,600 | ) | (14,000 | ) | ||||||||||||
Proceeds from Issuance of Common Stock |
4 | 6 | ||||||||||||||
Proceeds from Investments by Non-controlling Shareholders |
282 | 361 | ||||||||||||||
Repayments to Non-controlling Shareholders |
(452,500 | ) | (460,672 | ) | ||||||||||||
Cash Dividends Paid |
(100,658 | ) | (94,782 | ) | ||||||||||||
Cash Dividends Paid to Non-controlling Shareholders |
(30,831 | ) | (20,400 | ) | ||||||||||||
Payments for Purchase of Stocks of Subsidiaries (not affecting the scope of consolidation) |
| (216 | ) | |||||||||||||
Payments for Repurchase of Treasury Stock |
(8 | ) | (1,430 | ) | ||||||||||||
Proceeds from Sale of Treasury Stock |
2 | 0 | ||||||||||||||
|
|
|
|
|||||||||||||
Net Cash Provided by (Used in) Financing Activities |
(405,309 | ) | (11,134 | ) | ||||||||||||
|
|
|
|
|||||||||||||
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents |
5,511 | (63,536 | ) | |||||||||||||
|
|
|
|
|||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents |
6,087,143 | 6,532,667 | ||||||||||||||
|
|
|
|
|||||||||||||
Cash and Cash Equivalents at the beginning of the period |
27,840,775 | 35,089,122 | ||||||||||||||
|
|
|
|
|||||||||||||
Cash and Cash Equivalents at the end of the period |
*1 | 33,927,919 | *1 | 41,621,790 | ||||||||||||
|
|
|
|
- 10 -
Notes to Interim Consolidated Financial Statements
Fundamental and Important Matters for the Preparation of Interim Consolidated Financial Statements
1. | Scope of Consolidation |
(1) | Number of consolidated subsidiaries: 142 |
Names of principal companies:
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Mizuho Securities Co., Ltd.
Change in scope of consolidation
During the six months ended September 30, 2016, Mizuho Americas LLC and four other companies were newly included in the scope of consolidation as a result of establishment.
During the six months ended September 30, 2016, BLUE HEAVEN FUNDING CORPORATION and five other companies were excluded from the scope of consolidation as a result of merger and other factors.
(2) | Number of non-consolidated subsidiaries: 0 |
2. | Application of the Equity Method |
(1) | Number of non-consolidated subsidiaries under the equity method: 0 |
(2) | Number of affiliates under the equity method: 22 |
Names of principal companies:
Orient Corporation
The Chiba Kogyo Bank, Ltd.
Joint Stock Commercial Bank for Foreign Trade of Vietnam
Change in scope of equity method
During the six months ended September 30, 2016, Energy & Environment Investment, Inc. and four other companies were excluded from the scope of equity method as a result of the sale of shares.
(3) | Number of non-consolidated subsidiaries not under the equity method: 0 |
(4) | Affiliates not under the equity method: |
Pec International Leasing Co., Ltd.
Affiliates not under the equity method are excluded from the scope of the equity method since such exclusion has no material effect on MHFGs interim consolidated financial statements in terms of Net Income (Loss) (amount corresponding to MHFGs equity position), Retained Earnings (amount corresponding to MHFGs equity position), Accumulated Other Comprehensive Income (amount corresponding to MHFGs equity position) and others.
3. | Interim Balance Sheet Dates of Consolidated Subsidiaries |
(1) | Interim balance sheet dates of consolidated subsidiaries are as follows: |
January 31 | 1 company | |||
June 29 | 12 companies | |||
June 30 | 53 companies | |||
September 30 | 76 companies |
- 11 -
(2) | Consolidated subsidiaries with interim balance sheet dates of June 29 were consolidated based on their tentative interim financial statements as of and for the period ended June 30. The consolidated subsidiary with the interim balance sheet date of January 31 was consolidated based on its tentative interim financial statement as of and for the period ended the interim consolidated balance sheet date. Other consolidated subsidiaries were consolidated based on their interim financial statements as of and for the period ended their respective interim balance sheet dates. |
The necessary adjustments have been made to the interim financial statements for any significant transactions that took place between their respective interim balance sheet dates and the date of the interim consolidated financial statements.
4. | Standards of Accounting Method |
(1) | Credited Loans pursuant to Trading Securities and Trading Income & Expenses |
Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis and recorded in Other Debt Purchased on the interim consolidated balance sheet. Other Debt Purchased related to the relevant credited loans is stated at fair value at the interim consolidated balance sheet date. Interest received and the gains or losses on the sale of the relevant credited loans during the six months ended September 30, 2016, including the gains or losses resulting from any change in the value between the beginning and the end of the six months ended September 30, 2016, are recognized in Other Operating Income and Other Operating Expenses on the interim consolidated statements of income.
(2) | Trading Assets & Liabilities and Trading Income & Expenses |
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates, currency exchange rates, market prices of securities and related indices are recognized on a trade date basis and recorded in Trading Assets or Trading Liabilities on the interim consolidated balance sheet. Income or expenses generated on the relevant trading transactions are recorded in Trading Income or Trading Expenses on the interim consolidated statement of income.
Securities and other monetary claims held for trading purposes are stated at fair value at the interim consolidated balance sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at fair value, assuming that such transactions are terminated and settled at the interim consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and the interest paid during the six months ended September 30, 2016, the gains or losses resulting from any change in the value of securities and other monetary claims between the beginning and the end of the six months ended September 30, 2016, and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the end of the six months ended September 30, 2016, assuming they were settled at the end of the six months ended September 30, 2016.
(3) | Securities |
(a) | Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving average method. Investments in affiliates not under the equity method are stated at acquisition cost and determined by the moving average method. As to Other Securities, in principle, fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the interim consolidated balance sheet date. Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the interim consolidated balance sheet date (cost of securities sold is calculated primarily by the moving average method). Other Securities, the fair values of which are extremely difficult to determine, are stated at acquisition cost and determined by the moving average method. |
The net unrealized gains (losses) on Other Securities are included directly in Net Assets, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method.
(b) | Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as given in (a) above. |
(4) | Derivative Transactions |
Derivative transactions (other than transactions for trading purposes) are valued at fair value.
- 12 -
(5) | Depreciation of Fixed Assets |
1) | Tangible Fixed Assets (Except for Lease Assets) |
Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the declining-balance method. The amount based on estimated annual depreciation expenses is allocated to each period.
The range of useful lives is as follows:
Buildings |
3 years to 50 years | |||
Others |
2 years to 20 years |
2) | Intangible Fixed Assets (Except for Lease Assets) |
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-used software are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determined by MHFG and consolidated subsidiaries.
3) | Lease Assets |
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned with finance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to fixed assets owned by us.
(6) | Deferred Assets |
Bond issuance costs are expensed as incurred.
(7) | Reserves for Possible Losses on Loans |
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance with internally established standards for write-offs and reserve provisions.
For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under the Company Law or other similar laws (Bankrupt Obligors), and to obligors that are effectively in similar conditions (Substantially Bankrupt Obligors), reserves are maintained at the amounts of claims net of direct write-offs described below and the expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees. For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (Intensive Control Obligors), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.
For claims extended to Intensive Control Obligors and Obligors with Restructured Loans and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows: (i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method is applied, under which the reserve is determined as the difference between the book value of the loan and its present value of future cash flows discounted using the contractual interest rate before the loan was classified as a Restructured Loan, and (ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for the losses estimated for each individual loan.
For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experience and other factors. Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses based on analyses of the political and economic climates of the countries.
All claims are assessed by each claim origination department in accordance with the internally established Self-assessment Standard, and the results of the assessments are verified and examined by the independent examination departments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale of collateral pledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are written off against the respective claims balances. The total directly written-off amount was ¥115,422 million (¥157,807 million at the end of the fiscal year ended March 31, 2016).
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experience and other factors for general claims and the assessment for each individual loan for other claims.
- 13 -
(8) | Reserve for Possible Losses on Investments |
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments in securities, after taking into consideration the financial condition and other factors concerning the investee company.
(9) | Reserve for Bonus Payments |
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amount accrued at the end of the six months ended September 30, 2016, based on the estimated future payments.
(10) | Reserve for Variable Compensation |
To prepare for the payments of performance payments and stock compensation to be paid as variable compensation within compensation for directors, executive officers and specialist officers of Mizuho Financial Group, Inc., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd., the amount accrued at the end of the six months ended September 30, 2016 among the estimated payment based on the standard amount regarding variable compensation of the fiscal year ending March 31, 2017 is provided.
(11) | Reserve for Director and Corporate Auditor Retirement Benefits |
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued by the end of the six months ended September 30, 2016, based on the internally established standards.
(12) | Reserve for Possible Losses on Sales of Loans |
Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amount deemed necessary based on a reasonable estimate of possible future losses.
(13) | Reserve for Contingencies |
Reserve for Contingencies is maintained to provide against possible losses from contingencies which are not covered by other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.
(14) | Reserve for Reimbursement of Deposits |
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from liabilities at the estimated amount of future claims for withdrawal by depositors.
(15) | Reserve for Reimbursement of Debentures |
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from liabilities at the estimated amount for future claims.
(16) | Reserve under Special Laws |
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange. This is the reserve pursuant to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinance regarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and sale of securities, other transactions or derivative transactions.
(17) | Accounting Method for Retirement Benefits |
In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected retirement benefits to the period up to the end of the six months ended September 30, 2016. Unrecognized actuarial differences are recognized as income or expenses from the following fiscal year under the straight-line method over a certain term within the average remaining service period of the employees (mainly 10 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary resignation at the end of the six months ended September 30, 2016 to be retirement benefit obligations in computing net defined benefit liability and retirement benefit expenses.
- 14 -
(18) | Assets and Liabilities denominated in foreign currencies |
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidated banking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily at the exchange rates in effect at the interim consolidated balance sheet date, with the exception of the investments in affiliates not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective interim balance sheet dates.
(19) | Hedge Accounting |
(a) | Interest Rate Risk |
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries is accounted for in accordance with the method stipulated in the Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial Instruments for Banks (JICPA Industry Audit Committee Report No. 24, February 13, 2002).
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-value monetary claims and liabilities is assessed as follows:
i) | as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both the hedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, in the same maturity bucket. |
ii) | as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between a base interest rate index of the hedged instrument and that of the hedging instrument. |
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market or of cash flows of the hedged instruments with that of the hedging instruments.
(b) | Foreign Exchange Risk |
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply the deferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities denominated in foreign currencies as stipulated in the Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks (JICPA Industry Audit Committee Report No. 25, July 29, 2002). The effectiveness of the hedge is assessed by confirming that the amount of the foreign currency position of the hedged monetary claims and liabilities is equal to or larger than that of currency-swap transactions, exchange swap transactions, and similar transactions designated as the hedging instruments of the foreign exchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method to portfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates in foreign currency and Other Securities in foreign currency (except for bonds) identified as hedged items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange contracts exceeds the amount of acquisition cost of the hedged foreign securities in foreign currency.
(c) | Inter-company Transactions |
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains and losses are recognized in the statement of income or deferred under hedge accounting, because these inter-company derivatives are executed according to the criteria for appropriate outside third-party cover operations which are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No. 24 and 25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied.
- 15 -
(20) | Scope of Cash and Cash Equivalents on Interim Consolidated Statements of Cash Flows |
In the interim consolidated statements of cash flows, Cash and Cash Equivalents consist of cash and due from central banks included in Cash and Due from Banks on the interim consolidated balance sheet.
(21) | Consumption Taxes and other |
With respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption taxes are excluded from transaction amounts.
- 16 -
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 Assets as of April 1, 2016, Retained Earnings increased by ¥1,426 million as of April 1, 2016 in the interim consolidated statement of changes in net assets.
Additional Information
The Board Benefit Trust (BBT) Program
Since MHFG operates its business giving due regard to creating value for diverse stakeholders and realizing improved corporate value through the continuous and stable growth of MHFG group pursuant to MHFGs basic management policy defined under the Mizuho Financial Groups Corporate Identity, MHFG has introduced a performance-based stock compensation program using a trust (the Program) that functions as an incentive for each Director, Executive Officer, and Specialist Officer to exert maximum effort in performing his or her duties, and also as consideration for such exertion of effort.
(1) | Outline of the Program |
The Program has adopted the Board Benefit Trust (BBT) framework. MHFGs shares on the stock market will be acquired through a trust established based on the underlying funds contributed by MHFG, and MHFGs shares will be distributed to Directors, Executive Officers, and Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the Company Group) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The number of MHFGs shares to be distributed will be determined pursuant to a performance evaluation based on the annual business plan.
A structure has been introduced for the distribution of MHFGs shares under the Program, whereby the distribution will be deferred over three years, and the deferred portion will be subject to reduction or forfeiture depending on certain factors, including the performance of the Company Group or the relevant Directors, Executive Officers, and Specialist Officers.
Voting rights related to MHFGs shares belonging to the trust assets under the trust shall not be exercised.
(2) | MHFGs Shares Outstanding in the Trust |
MHFGs shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount (excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of September 30, 2016 was ¥1,428 million for 9,000 thousand shares.
- 17 -
Notes to Interim Consolidated Balance Sheet
*1. | The total amount of shares and investments in affiliates |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Shares |
318,803 | 315,535 | ||||||
Investments |
607 | 557 |
2. | MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge. |
In certain transactions, MHFG has the right to sell or repledge the following unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral.
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Securities repledged |
11,479,189 | 12,096,781 | ||||||
Securities neither repledged nor re-loaned at the end of the period/the fiscal year |
798,317 | 998,996 |
*3. | Loans to Bankrupt Obligors and Non-Accrual Delinquent Loans, which are included in Loans and Bills Discounted, are as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Loans to Bankrupt Obligors |
24,315 | 30,309 | ||||||
Non-Accrual Delinquent Loans |
396,720 | 377,554 |
Loans to Bankrupt Obligors are loans, excluding loans written-off, on which delinquencies in payment of principal and/or interest have continued for a significant period of time or for some other reason there is no prospect of collecting principal and/or interest (Non-Accrual Loans), as per Article 96, Paragraph 1, Item 3, Subsections 1 to 5 or Item 4 of the Corporate Tax Law Enforcement Ordinance (Government Ordinance No. 97, 1965).
Non-Accrual Delinquent Loans represent Non-Accrual Loans other than (i) Loans to Bankrupt Obligors and (ii) loans on which interest payments have been deferred in order to assist or facilitate the restructuring of the obligors.
*4. | Balance of Loans Past Due for Three Months or More, which is included in Loans and Bills Discounted, is as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Loans Past Due for Three Months or More |
907 | 781 |
Loans Past Due for Three Months or More are loans on which payments of principal and/or interest have not been made for a period of three months or more since the next day following the first due date without such payments, and which are not included in Loans to Bankrupt Obligors, or Non-Accrual Delinquent Loans.
- 18 -
*5. | Balance of Restructured Loans, which is included in Loans and Bills Discounted, is as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Restructured Loans |
463,108 | 436,229 |
Restructured Loans represent loans whose contracts were amended in favor of obligors (e.g. reduction of, or exemption from, stated interest, deferral of interest payments, extension of maturity dates and renunciation of claims) in order to assist or facilitate the restructuring of the obligors. Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans and Loans Past Due for Three Months or More are not included.
*6. | Total balance of Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans, Loans Past Due for Three Months or More, and Restructured Loans is as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Total |
885,052 | 844,874 |
The amounts given in *3 through *6 above are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.
*7. | In accordance with Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks (JICPA Industry Audit Committee Report No. 24, February 13, 2002), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sell or pledge these commercial bills, foreign exchange bills purchased and others. The face values of these bills are as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
1,304,681 | 1,040,352 |
*8. | Breakdown of assets pledged as collateral is as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
The following assets are pledged as collateral: |
||||||||
Trading Assets |
2,674,897 | 1,292,388 | ||||||
Securities |
10,631,675 | 8,202,942 | ||||||
Loans and Bills Discounted |
5,475,195 | 7,486,347 | ||||||
Other Assets |
1,015 | 1,105 | ||||||
|
|
|
|
|||||
Total |
18,782,784 | 16,982,783 | ||||||
The following liabilities are collateralized by the above assets: |
||||||||
Deposits |
813,050 | 868,183 | ||||||
Payables under Repurchase Agreements |
6,090,727 | 5,845,612 | ||||||
Guarantee Deposits Received under Securities Lending Transactions |
2,553,436 | 1,213,523 | ||||||
Borrowed Money |
6,115,880 | 5,837,153 |
- 19 -
In addition to the above, the following items are pledged as collateral in connection with the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others or as a substitute for margins for futures transactions and others:
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Cash and Due from Banks |
45,101 | 44,231 | ||||||
Trading Assets |
98,922 | 110,880 | ||||||
Securities |
4,323,535 | 4,029,788 | ||||||
Loans and Bills Discounted |
307,997 | 236,556 |
Other Assets includes margins for futures transactions, guarantee deposits, and collateral pledged for financial instruments and others as follows:
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Margins for Futures Transactions |
192,188 | 159,343 | ||||||
Guarantee Deposits |
119,149 | 118,301 | ||||||
Collateral Pledged for Financial Instruments and Others |
930,999 | 1,096,119 |
*9. | Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer is in breach of contract conditions. The unutilized balance of these contracts amounts is as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Unutilized balance |
88,290,896 | 86,709,503 | ||||||
Amount relating to contracts of which the original contractual maturity is one year or less, or which are unconditionally cancelable at any time |
68,209,392 | 68,464,023 |
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affect future cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse the execution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation, necessity to preserve a claim or other similar reasons. The banking subsidiaries require collateral such as real estate and securities when deemed necessary at the time the contract is entered into. In addition, they periodically monitor customers business conditions in accordance with internally established standards and take necessary measures to manage credit risks such as amendments to contracts.
*10. | In accordance with the Land Revaluation Law (Proclamation No. 34 dated March 31, 1998), land used for business operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder, net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets. |
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations was revalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No. 119 promulgated on March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on the basis of the appraisal valuation stipulated in Paragraph 5.
- 20 -
*11. | Accumulated Depreciation of Tangible Fixed Assets |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Accumulated Depreciation |
857,628 | 845,409 |
*12. | Borrowed Money includes subordinated borrowed money with a covenant that performance of the obligation is subordinated to that of other obligations. |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Subordinated Borrowed Money |
307,000 | 272,000 |
*13. | Bonds and Notes includes subordinated bonds. |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Subordinated Bonds |
1,713,478 | 2,271,207 |
14. | The principal amounts of money trusts with contracts indemnifying the principal amounts, which are entrusted to domestic consolidated trust banking subsidiaries, are as follows: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Money trusts |
1,765,076 | 1,083,927 |
*15. | Liabilities for guarantees on corporate bonds included in Securities, which are issued by private placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Act) |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
1,039,783 | 1,081,871 |
- 21 -
Notes to Interim Consolidated Statement of Income
*1. | Other Ordinary Income includes the following: |
(Millions of yen) | ||||||||
For the six months ended September 30, 2015 |
For the six months ended September 30, 2016 |
|||||||
Gains on Sales of Stocks |
133,199 | 76,772 | ||||||
Recovery on Written-off Loans |
10,322 | 18,560 |
*2. | Other Ordinary Expenses includes the following: |
(Millions of yen) | ||||||||
For the six months ended September 30, 2015 |
For the six months ended September 30, 2016 |
|||||||
System Migration-related Expenses |
17,343 | 19,367 | ||||||
Losses on Write-offs of Loans |
14,220 | 10,480 |
*3. | Extraordinary Gains is as follows: |
(Millions of yen) | ||||||||
For the six months ended September 30, 2015 |
For the six months ended September 30, 2016 |
|||||||
Gains on Disposition of Fixed Assets |
6,751 | 1,426 | ||||||
Indemnity Receipt from the Erroneous Stock Order in the Securities Subsidiary |
12,822 | |
*4. | Extraordinary Losses includes the following: |
(Millions of yen) | ||||||||
For the six months ended September 30, 2015 |
For the six months ended September 30, 2016 |
|||||||
Losses on Disposition of Fixed Assets |
1,602 | 1,576 | ||||||
Losses on Impairment of Fixed Assets |
390 | 1,474 |
- 22 -
Notes to Interim Consolidated Statement of Changes in Net Assets
For the six months ended September 30, 2015
1. | Types and number of issued shares and of treasury stock are as follows: |
(Thousands of shares) | ||||||||||||||||||||
As of April 1, 2015 |
Increase during the period |
Decrease during the period |
As of September 30, 2015 |
Remarks | ||||||||||||||||
Issued Shares |
||||||||||||||||||||
Common Stock |
24,621,897 | 249,031 | | 24,870,929 | (Note 1 | ) | ||||||||||||||
Eleventh Series Class XI Preferred Stock |
914,752 | | | 914,752 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
25,536,649 | 249,031 | | 25,785,681 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Treasury Stock |
||||||||||||||||||||
Common Stock |
11,649 | 2,839 | 2,092 | 12,395 | (Note 2 | ) | ||||||||||||||
Eleventh Series Class XI Preferred Stock |
701,631 | 69,047 | | 770,678 | (Note 3 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
713,280 | 71,886 | 2,092 | 783,074 | ||||||||||||||||
|
|
|
|
|
|
|
|
(Notes) | 1. Increases are due to request for acquisition (conversion) of preferred stock (244,071 thousand shares) and exercise of stock acquisition rights (stock options) (4,960 thousand shares). | |
2. Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights (stock options) (1,808 thousand shares) and repurchases of shares constituting less than one unit and other factors (284 thousand shares). | ||
3. Increases are due to request for acquisition (conversion) of preferred stock. |
2. | Stock acquisition rights and treasury stock acquisition rights are as follows: |
Category |
Breakdown of stock acquisition rights |
Class of shares to be issued or transferred upon exercise of stock acquisition rights |
Number of shares to be issued or transferred upon exercise of stock acquisition rights (Shares) |
Balance as of September 30, 2015 (Millions of yen) |
Remarks | |||||||||||||||||||||||||
As of April 1, 2015 |
Increase during the period |
Decrease during the period |
As of September 30, 2015 |
|||||||||||||||||||||||||||
MHFG |
Stock acquisition rights (Treasury stock acquisition rights) | |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|||||||||||||
Stock acquisition rights as stock option | | 2,762 | ||||||||||||||||||||||||||||
Consolidated subsidiaries (Treasury stock acquisition rights) |
|
|
( |
) |
||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||
Total |
|
|
2,762 ( |
) |
||||||||||||||||||||||||||
|
|
- 23 -
3. | Cash dividends distributed by MHFG are as follows: |
(1) | Cash dividends paid during the six months ended September 30, 2015 |
Resolution |
Type |
Cash Dividends (Millions of yen) |
Cash Dividends per Share (Yen) |
Record Date | Effective Date | |||||||||||
May 15, 2015 |
Common Stock | 98,452 | 4 | March 31, 2015 |
June 4, 2015 | |||||||||||
The Board of Directors |
Eleventh Series Class XI Preferred Stock |
2,131 | 10 | March 31, 2015 |
June 4, 2015 | |||||||||||
(2) Cash dividends with record dates falling in the six months ended September 30, 2015 and effective dates coming after the end of the period
| ||||||||||||||||
Resolution |
Type |
Cash Dividends |
Resource of Dividends |
Cash Dividends per Share (Yen) |
Record Date |
Effective Date | ||||||||||
November 13, 2015 |
Common Stock | 93,240 | |
Retained Earnings |
|
3.75 | September 30, 2015 |
December 4, 2015 | ||||||||
The Board of Directors |
Eleventh Series Class XI Preferred Stock |
1,440 | |
Retained Earnings |
|
10 | September 30, 2015 |
December 4, 2015 |
- 24 -
For the six months ended September 30, 2016
1. | Types and number of issued shares and of treasury stock are as follows: |
(Thousands of shares) | ||||||||||||||||||||
As of April 1, 2016 |
Increase during the period |
Decrease during the period |
As of September 30, 2016 |
Remarks | ||||||||||||||||
Issued Shares |
||||||||||||||||||||
Common Stock |
25,030,525 | 355,782 | | 25,386,307 | (Note 1 | ) | ||||||||||||||
Eleventh Series Class XI Preferred Stock |
914,752 | | 914,752 | | (Note 2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
25,945,277 | 355,782 | 914,752 | 25,386,307 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Treasury Stock |
||||||||||||||||||||
Common Stock |
10,929 | 12,166 | 1,199 | 21,895 | (Note 3 | ) | ||||||||||||||
Eleventh Series Class XI Preferred Stock |
815,828 | 98,923 | 914,752 | | (Note 4 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
826,757 | 111,089 | 915,951 | 21,895 | ||||||||||||||||
|
|
|
|
|
|
|
|
(Notes) |
1. Increases are due to request for acquisition (conversion) of preferred stock (349,677 thousand shares) and exercise of stock acquisition rights (stock options) (6,105 thousand shares). | |
2. Decreases are due to cancellation of treasury stock (preferred stock). | ||
3. Increases are due to acquisition of MHFG shares by BBT trust account (9,000 thousand shares), and repurchase of shares constituting less than one unit and other factors (3,166 thousand shares). Decreases are due to exercise of stock acquisition rights (stock options) (266 thousand shares) and repurchase of shares constituting less than one unit and other factors (933 thousand shares). The number of shares as of September 30, 2016 includes the number of shares held by BBT trust account (9,000 thousand shares). | ||
4. Increases are due to acquisition (conversion) of treasury stock (preferred stock) (75,091 thousand shares) and request for acquisition (conversion) of preferred stock (23,832 thousand shares). Decreases are due to cancellation of treasury stock (preferred stock). |
2. | Stock acquisition rights and treasury stock acquisition rights are as follows: |
Category |
Breakdown |
Class of shares to be issued or transferred upon exercise of stock acquisition rights |
Number of shares to be issued or transferred upon exercise of stock acquisition rights (Shares) |
Balance as of September 30, 2016 (Millions of yen) |
Remarks | |||||||||||||||||||||||||
As of April 1, 2016 |
Increase during the period |
Decrease during the period |
As of September 30, 2016 |
|||||||||||||||||||||||||||
MHFG |
Stock acquisition rights (Treasury stock acquisition rights) | |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|||||||||||||
Stock acquisition rights as stock option | | 1,754 | ||||||||||||||||||||||||||||
Consolidated subsidiaries (Treasury stock acquisition rights) |
|
|
( |
) |
||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||
Total |
|
|
1,754 ( |
) |
||||||||||||||||||||||||||
|
|
- 25 -
3. | Cash dividends distributed by MHFG are as follows: |
(1) | Cash dividends paid during the six months ended September 30, 2016 |
Resolution |
Type |
Cash
Dividends (Millions of yen) |
Cash Dividends per Share (Yen) |
Record Date |
Effective Date | |||||||||||
May 13, 2016 |
Common Stock | 93,838 | 3.75 | March 31, 2016 |
June 3, 2016 | |||||||||||
The Board of Directors |
Eleventh Series Class XI Preferred Stock |
989 | 10 | March 31, 2016 |
June 3, 2016 | |||||||||||
(2) Cash dividends with record dates falling in the six months ended September 30, 2016 and effective dates coming after the end of the period
| ||||||||||||||||
Resolution |
Type |
Cash Dividends (Millions of yen) |
Resource of Dividends |
Cash Dividends per Share (Yen) |
Record Date |
Effective Date | ||||||||||
November 14, 2016
The Board of Directors |
Common Stock | 95,173 | |
Retained Earnings |
|
3.75 | September 30, 2016 |
December 6, 2016 |
(Note) | Cash dividends based on the resolution of the Board of Directors on November 14, 2016 include ¥33 million of cash dividends on MHFG shares held by BBT trust account. |
Notes to Interim Consolidated Statement of Cash Flows
*1. | Cash and Cash Equivalents at the end of the period on the Interim Consolidated Statement of Cash Flows reconciles to Cash and Due from Banks on the Interim Consolidated Balance Sheet as follows: |
(Millions of yen) | ||||||||
For the six months
ended September 30, 2015 |
For the six months
ended September 30, 2016 |
|||||||
Cash and Due from Banks |
35,194,504 | 42,715,384 | ||||||
Due from Banks excluding central banks |
(1,266,585 | ) | (1,093,594 | ) | ||||
|
|
|
|
|||||
Cash and Cash Equivalents |
33,927,919 | 41,621,790 | ||||||
|
|
|
|
- 26 -
Lease Transactions
1. | Finance Leases (Lessees) |
Finance lease transactions that do not transfer ownership:
1) | Lease Assets: |
(a) | Tangible fixed assets: mainly equipment |
(b) | Intangible fixed assets: software |
2) | The method for computing the amount of depreciation is described in 4. Standards of Accounting Method (5) Depreciation of Fixed Assets. |
2. | Operating Leases |
The future lease payments subsequent to the end of the fiscal year for non-cancelable operating lease transactions are summarized as follows:
(1) | Lessees: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Due in One Year or Less |
53,116 | 50,783 | ||||||
Due after One Year |
223,770 | 202,883 | ||||||
|
|
|
|
|||||
Total |
276,887 | 253,667 | ||||||
|
|
|
|
(2) | Lessors: |
(Millions of yen) | ||||||||
As of March 31, 2016 | As of September 30, 2016 | |||||||
Due in One Year or Less |
692 | 473 | ||||||
Due after One Year |
3,684 | 2,366 | ||||||
|
|
|
|
|||||
Total |
4,376 | 2,839 | ||||||
|
|
|
|
- 27 -
Financial Instruments
Matters relating to fair value of financial instruments and others
The following are the interim consolidated balance sheet amounts (the consolidated balance sheet amounts), fair values and differences between them. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded from the table below (see (Note 2)).
As of March 31, 2016
(Millions of yen) | ||||||||||||
Consolidated Balance Sheet Amount |
Fair Value | Difference | ||||||||||
(1) Cash and Due from Banks (*1) |
36,314,173 | 36,314,173 | | |||||||||
(2) Call Loans and Bills Purchased (*1) |
892,781 | 892,781 | | |||||||||
(3) Receivables under Resale Agreements |
7,805,798 | 7,805,798 | | |||||||||
(4) Guarantee Deposits Paid under Securities Borrowing Transactions |
3,407,390 | 3,407,390 | | |||||||||
(5) Other Debt Purchased (*1) |
2,979,413 | 2,979,419 | 6 | |||||||||
(6) Trading Assets |
||||||||||||
Trading Securities |
5,467,948 | 5,467,948 | | |||||||||
(7) Money Held in Trust (*1) |
175,135 | 175,135 | | |||||||||
(8) Securities |
||||||||||||
Bonds Held to Maturity |
4,817,574 | 4,873,209 | 55,634 | |||||||||
Other Securities |
34,083,510 | 34,083,510 | | |||||||||
(9) Loans and Bills Discounted |
73,708,884 | |||||||||||
Reserves for Possible Losses on Loans (*1) |
(411,319 | ) | ||||||||||
|
|
|
|
|
|
|||||||
73,297,564 | 74,465,870 | 1,168,305 | ||||||||||
|
|
|
|
|
|
|||||||
Total Assets |
169,241,291 | 170,465,237 | 1,223,946 | |||||||||
|
|
|
|
|
|
|||||||
(1) Deposits |
105,629,071 | 105,635,132 | 6,061 | |||||||||
(2) Negotiable Certificates of Deposit |
11,827,533 | 11,827,239 | (293 | ) | ||||||||
(3) Call Money and Bills Sold |
2,521,008 | 2,521,008 | | |||||||||
(4) Payables under Repurchase Agreements |
16,833,346 | 16,833,346 | | |||||||||
(5) Guarantee Deposits Received under Securities Lending Transactions |
2,608,971 | 2,608,971 | | |||||||||
(6) Trading Liabilities |
||||||||||||
Securities Sold, Not yet Purchased |
2,630,040 | 2,630,040 | | |||||||||
(7) Borrowed Money |
7,503,543 | 7,510,534 | 6,990 | |||||||||
(8) Bonds and Notes |
6,120,928 | 6,222,223 | 101,295 | |||||||||
(9) Due to Trust Accounts |
5,067,490 | 5,067,490 | | |||||||||
|
|
|
|
|
|
|||||||
Total Liabilities |
160,741,933 | 160,855,987 | 114,053 | |||||||||
|
|
|
|
|
|
|||||||
Derivative Transactions (*2) |
||||||||||||
Derivative Transactions not Qualifying for Hedge Accounting |
19,666 | |||||||||||
Derivative Transactions Qualifying for Hedge Accounting |
481,660 | |||||||||||
Reserves for Derivative Transactions (*1) |
(8,086 | ) | ||||||||||
|
|
|
|
|
|
|||||||
Total Derivative Transactions |
493,240 | 493,240 | | |||||||||
|
|
|
|
|
|
(*1) | General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded. Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off against the consolidated balance sheet amount due to immateriality. |
(*2) | Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading Liabilities, and others are presented as a lump sum. |
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.
- 28 -
As of September 30, 2016
(Millions of yen) | ||||||||||||
Interim Consolidated Balance Sheet Amount |
Fair Value | Difference | ||||||||||
(1) Cash and Due from Banks (*1) |
42,713,577 | 42,713,577 | | |||||||||
(2) Call Loans and Bills Purchased (*1) |
899,099 | 899,099 | | |||||||||
(3) Receivables under Resale Agreements |
9,258,984 | 9,258,984 | | |||||||||
(4) Guarantee Deposits Paid under Securities Borrowing Transactions |
3,195,977 | 3,195,977 | | |||||||||
(5) Other Debt Purchased (*1) |
2,527,040 | 2,527,046 | 5 | |||||||||
(6) Trading Assets |
||||||||||||
Trading Securities |
5,215,172 | 5,215,172 | | |||||||||
(7) Money Held in Trust (*1) |
227,473 | 227,473 | | |||||||||
(8) Securities |
||||||||||||
Bonds Held to Maturity |
4,258,676 | 4,317,918 | 59,242 | |||||||||
Other Securities |
27,864,070 | 27,864,070 | | |||||||||
(9) Loans and Bills Discounted |
73,030,669 | |||||||||||
Reserves for Possible Losses on Loans (*1) |
(395,250 | ) | ||||||||||
|
|
|
|
|
|
|||||||
72,635,419 | 73,745,613 | 1,110,194 | ||||||||||
|
|
|
|
|
|
|||||||
Total Assets |
168,795,492 | 169,964,934 | 1,169,442 | |||||||||
|
|
|
|
|
|
|||||||
(1) Deposits |
110,171,994 | 110,182,857 | 10,863 | |||||||||
(2) Negotiable Certificates of Deposit |
9,568,325 | 9,567,877 | (448 | ) | ||||||||
(3) Call Money and Bills Sold |
1,791,651 | 1,791,651 | | |||||||||
(4) Payables under Repurchase Agreements |
17,739,258 | 17,739,258 | | |||||||||
(5) Guarantee Deposits Received under Securities Lending Transactions |
1,314,573 | 1,314,573 | | |||||||||
(6) Trading Liabilities |
||||||||||||
Securities Sold, Not yet Purchased |
2,676,523 | 2,676,523 | | |||||||||
(7) Borrowed Money |
7,243,394 | 7,232,531 | (10,862 | ) | ||||||||
(8) Bonds and Notes |
7,131,121 | 7,266,821 | 135,700 | |||||||||
(9) Due to Trust Accounts |
4,053,768 | 4,053,768 | | |||||||||
|
|
|
|
|
|
|||||||
Total Liabilities |
161,690,611 | 161,825,864 | 135,252 | |||||||||
|
|
|
|
|
|
|||||||
Derivative Transactions (*2) |
||||||||||||
Derivative Transactions not Qualifying for Hedge Accounting |
134,725 | |||||||||||
Derivative Transactions Qualifying for Hedge Accounting |
786,359 | |||||||||||
Reserves for Derivative Transactions (*1) |
(13,514 | ) | ||||||||||
|
|
|
|
|
|
|||||||
Total Derivative Transactions |
907,570 | 907,570 | | |||||||||
|
|
|
|
|
|
(*1) | General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded. Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off against the interim consolidated balance sheet amount due to immateriality. |
(*2) | Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading Liabilities, and others are presented as a lump sum. |
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.
- 29 -
(Note 1) | Calculation method of fair value of financial instruments |
Assets
(1) | Cash and Due from Banks |
For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem the book values to be fair values. For Due from Banks which have maturity, since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values to be fair values.
(2) | Call Loans and Bills Purchased, (3) Receivables under Resale Agreements and (4) Guarantee Deposits Paid under Securities Borrowing Transactions |
Since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values to be fair values.
(5) | Other Debt Purchased |
Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonable estimate such as those obtained from brokers and financial information vendors.
(6) | Trading Assets |
Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.
(7) | Money Held in Trust |
As to securities managed as trust assets in a directed money trust for separate investment with the management of securities as its primary purpose, fair values of these items are calculated using the method stated in (8). For other Money Held in Trust, since fair values of these items approximate book values, we deem the book values to be fair values. The notes to Money Held in Trust based on holding purpose are stated in Money Held in Trust.
(8) | Securities |
Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on the market prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are based on the disclosed net asset value and others. Fair values of private placement bonds are calculated by discounting the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to the internal ratings and terms.
Fair values of securitized products are based on valuations obtained from brokers and others, and reasonably calculated prices based on the reasonable estimates of our management. In deriving reasonably calculated prices based on the reasonable estimates of our management mentioned above, we used the discounted cash flow method. The price decision variables include default rates, recovery rates, pre-payment rates, and discount rates.
Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fair value, are based on the reasonably calculated prices as book value as of September 30, 2016 (as of March 31, 2016). In deriving the reasonably calculated prices, we used the discount cash flow method as well as other methods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese Government Bonds as underlying assets.
The notes to Securities based on holding purpose are stated in Securities.
(9) | Loans and Bills Discounted |
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to the types, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors, substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated based on the present value of the expected future cash flows or the estimated amounts that we would be able to collect from collateral and guarantees, fair values approximate the amount of Debentures and others minus the amount of Reserves for Possible Losses on Loans in the interim consolidated balance sheet (the consolidated balance sheet) as of the interim consolidated balance sheet date (the consolidated balance sheet date) and we thus deem such amount to be fair values.
Of the Loans and Bills Discounted, for those without a fixed maturity due to loan characteristics such as limiting loans to within the value of pledged assets, we deem book values to be fair values since fair values are expected to approximate book values based on the estimated loan periods, interest rates and other conditions.
- 30 -
Liabilities
(1) | Deposits (2) Negotiable Certificates of Deposit |
For demand deposits, we deem the payment amounts required on the interim consolidated balance sheet date (the consolidated balance sheet date) (i.e., book values) to be fair values. In addition, fair values of fixed deposits and negotiable certificates of deposits are calculated by classifying them based on their terms and by discounting the future cash flows. The discount rates used in such calculations are the interest rates. Since fair values of those whose deposit terms are short (i.e., within six months) approximate book values, we mainly deem the book values to be fair values.
(3) | Call Money and Bills Sold, (4) Payables under Repurchase Agreements and (5) Guarantee Deposits Received under Securities Lending Transactions |
Since contractual terms of these financial instruments are mainly short (i.e., within six months) and fair values approximate book values, we deem the book values to be fair values.
(6) | Trading Liabilities |
Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.
(7) | Borrowed Money |
Fair values of Borrowed Money are calculated mainly by discounting the total amount of the principal and interest of such Borrowed Money classified by certain period at the interest rates considered to be applicable to similar loans.
(8) | Bonds and Notes |
Fair values of Bonds and Notes issued by MHFG and its consolidated subsidiaries are based on the market prices for Bonds and Notes which have market prices, and calculated by discounting the total amount of principal and interest by the interest rates considered to be applicable to similar Bonds and Notes for those which do not have market prices.
(9) | Due to Trust Accounts |
Due to Trust Accounts of consolidated trust banking subsidiaries is used for transactions in which consolidated trust banking subsidiaries manage fund entrusted to them in bank accounts of consolidated trust banking subsidiaries. As the purpose is considered to approximate demand deposit, we deem the book values to be fair values.
Derivative Transactions
Derivative Transactions are stated in Derivatives Information.
(Note 2) | Interim consolidated balance sheet (consolidated balance sheet) amounts of financial instruments whose fair values are deemed to be extremely difficult to determine are indicated below, and are not included in Assets (5) Other Debt Purchased, Assets (7) Money Held in Trust, and Assets (8) Other Securities in fair value information of financial instruments. |
(Millions of yen) |
||||||||
Category |
As of March 31, 2016 | As of September 30, 2016 | ||||||
(i) Unlisted Stocks (*1) |
216,329 | 189,965 | ||||||
(ii) Investments in Partnerships and others (*2) |
69,076 | 76,264 | ||||||
(iii) Other |
571 | 535 | ||||||
|
|
|
|
|||||
Total (*3) |
285,977 | 266,765 | ||||||
|
|
|
|
(*1) | We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult to determine fair values. |
(*2) | Of the Investments in Partnerships and others, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are deemed extremely difficult to determine fair values as being subject to disclosure of fair values. |
(*3) | During the fiscal year ended March 31, 2016, the amount of impairment (devaluation) was ¥1,696 million on a consolidated basis. |
During the six months ended September 30, 2016, the amount of impairment (devaluation) was ¥1,270 million on a consolidated basis. |
- 31 -
Securities
In addition to Securities on the interim consolidated balance sheet (the consolidated balance sheet), Negotiable Certificates of Deposit in Cash and Due from Banks, certain items in Other Debt Purchased and certain items in Other Assets are also included.
1. | Bonds Held to Maturity |
As of March 31, 2016
(Millions of yen) |
||||||||||||||
Type |
Consolidated Balance Sheet Amount |
Fair Value | Difference | |||||||||||
Bonds Whose Fair Values Exceed the Consolidated Balance Sheet Amount |
Japanese Government Bonds | 3,760,032 | 3,816,652 | 56,619 | ||||||||||
Foreign Bonds | 642,788 | 647,182 | 4,393 | |||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
4,402,821 | 4,463,834 | 61,012 | |||||||||||
|
|
|
|
|
|
|||||||||
Bonds Whose Fair Values Do Not Exceed the Consolidated Balance Sheet Amount |
Japanese Government Bonds | | | | ||||||||||
Foreign Bonds | 414,753 | 409,375 | (5,378 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
414,753 | 409,375 | (5,378 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
4,817,574 | 4,873,209 | 55,634 | |||||||||||
|
|
|
|
|
|
As of September 30, 2016
(Millions of yen) |
||||||||||||||
Type |
Interim Consolidated Balance Sheet Amount |
Fair Value | Difference | |||||||||||
Bonds Whose Fair Values Exceed the Interim Consolidated Balance Sheet Amount |
Japanese Government Bonds | 3,459,999 | 3,514,851 | 54,851 | ||||||||||
Foreign Bonds | 542,436 | 547,856 | 5,420 | |||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
4,002,435 | 4,062,707 | 60,271 | |||||||||||
|
|
|
|
|
|
|||||||||
Bonds Whose Fair Values Do Not Exceed the Interim Consolidated Balance Sheet Amount |
Japanese Government Bonds | | | | ||||||||||
Foreign Bonds | 256,240 | 255,211 | (1,029 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
256,240 | 255,211 | (1,029 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
4,258,676 | 4,317,918 | 59,242 | |||||||||||
|
|
|
|
|
|
- 32 -
2. | Other Securities |
As of March 31, 2016
(Millions of yen) |
||||||||||||||
Type |
Consolidated Balance Sheet Amount |
Acquisition Cost | Difference | |||||||||||
Other Securities Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost |
Stocks | 3,119,477 | 1,437,513 | 1,681,963 | ||||||||||
Bonds | 18,155,225 | 18,007,215 | 148,010 | |||||||||||
Japanese Government Bonds |
15,649,388 | 15,553,141 | 96,247 | |||||||||||
Japanese Local Government Bonds |
237,247 | 231,149 | 6,097 | |||||||||||
Short-term Bonds |
| | | |||||||||||
Japanese Corporate Bonds |
2,268,589 | 2,222,924 | 45,665 | |||||||||||
Other | 7,489,460 | 7,259,780 | 229,679 | |||||||||||
Foreign Bonds |
6,775,953 | 6,708,016 | 67,936 | |||||||||||
Other Debt Purchased |
143,593 | 139,690 | 3,903 | |||||||||||
Other |
569,913 | 412,074 | 157,839 | |||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
28,764,163 | 26,704,510 | 2,059,653 | |||||||||||
|
|
|
|
|
|
|||||||||
Other Securities Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost |
Stocks | 338,149 | 409,668 | (71,518 | ) | |||||||||
Bonds | 719,259 | 730,762 | (11,502 | ) | ||||||||||
Japanese Government Bonds |
116,484 | 116,890 | (406 | ) | ||||||||||
Japanese Local Government Bonds |
3,433 | 3,436 | (3 | ) | ||||||||||
Short-term Bonds |
99 | 99 | | |||||||||||
Japanese Corporate Bonds |
599,241 | 610,334 | (11,093 | ) | ||||||||||
Other | 4,854,122 | 4,948,886 | (94,764 | ) | ||||||||||
Foreign Bonds |
2,943,644 | 2,970,512 | (26,867 | ) | ||||||||||
Other Debt Purchased |
205,326 | 205,917 | (591 | ) | ||||||||||
Other |
1,705,151 | 1,772,456 | (67,305 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
5,911,531 | 6,089,317 | (177,785 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
34,675,695 | 32,793,827 | 1,881,867 | |||||||||||
|
|
|
|
|
|
(Note) | Unrealized Gains (Losses) includes ¥26,715 million which was recognized in the statement of income by applying the fair-value hedge method. |
- 33 -
As of September 30, 2016
(Millions of yen) |
||||||||||||||
Type |
Interim Consolidated Balance Sheet Amount |
Acquisition Cost | Difference | |||||||||||
Other Securities Whose Interim Consolidated Balance Sheet Amount Exceeds Acquisition Cost |
Stocks | 2,904,416 | 1,391,989 | 1,512,427 | ||||||||||
Bonds | 10,359,951 | 10,255,793 | 104,157 | |||||||||||
Japanese Government Bonds |
7,917,280 | 7,860,349 | 56,931 | |||||||||||
Japanese Local Government Bonds |
273,128 | 266,679 | 6,449 | |||||||||||
Short-term Bonds |
| | | |||||||||||
Japanese Corporate Bonds |
2,169,542 | 2,128,764 | 40,777 | |||||||||||
Other | 6,719,343 | 6,499,216 | 220,127 | |||||||||||
Foreign Bonds |
6,014,514 | 5,949,564 | 64,950 | |||||||||||
Other Debt Purchased |
106,739 | 103,814 | 2,924 | |||||||||||
Other |
598,089 | 445,837 | 152,252 | |||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
19,983,712 | 18,146,999 | 1,836,712 | |||||||||||
|
|
|
|
|
|
|||||||||
Other Securities Whose Interim Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost |
Stocks | 322,668 | 407,000 | (84,331 | ) | |||||||||
Bonds | 3,135,439 | 3,151,263 | (15,824 | ) | ||||||||||
Japanese Government Bonds |
2,457,536 | 2,460,476 | (2,939 | ) | ||||||||||
Japanese Local Government Bonds |
8,182 | 8,210 | (28 | ) | ||||||||||
Short-term Bonds |
99 | 99 | | |||||||||||
Japanese Corporate Bonds |
669,620 | 682,476 | (12,855 | ) | ||||||||||
Other | 4,961,948 | 5,051,514 | (89,565 | ) | ||||||||||
Foreign Bonds |
2,938,260 | 2,955,907 | (17,647 | ) | ||||||||||
Other Debt Purchased |
181,510 | 181,981 | (471 | ) | ||||||||||
Other |
1,842,178 | 1,913,626 | (71,447 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Sub-total |
8,420,056 | 8,609,778 | (189,721 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
28,403,769 | 26,756,777 | 1,646,991 | |||||||||||
|
|
|
|
|
|
(Note) | Unrealized Gains (Losses) includes ¥15,052 million which was recognized in the statement of income by applying the fair-value hedge method. |
- 34 -
3. | Impairment (Devaluation) of Securities |
Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the six months ended September 30, 2016 (the fiscal year ended March 31, 2016) (impairment (devaluation)), if the fair value (primarily the closing market price as of September 30, 2016 (March 31, 2016)) has significantly deteriorated compared with the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value.
The amount of impairment (devaluation) for the fiscal year ended March 31, 2016 was ¥9,161 million.
The amount of impairment (devaluation) for the six months ended September 30, 2016 was ¥4,475 million.
The criteria for determining whether a securitys fair value has significantly deteriorated are outlined as follows:
| Securities whose fair value is 50% or less of the acquisition cost |
| Securities whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower |
- 35 -
Money Held in Trust
1. | Money Held in Trust Held to Maturity |
There was no Money Held in Trust held to maturity.
2. | Other in Money Held in Trust (other than for investment purposes and held to maturity purposes) |
As of March 31, 2016
(Millions of yen) | ||||||||||||||||||||
Consolidated Balance Sheet Amount |
Acquisition Cost | Difference | Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost |
Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost |
||||||||||||||||
Other in Money Held in Trust |
2,578 | 2,578 | | | |
(Note) | Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost and Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost are components of Difference. |
As of September 30, 2016
(Millions of yen) | ||||||||||||||||||||
Interim Consolidated Balance Sheet Amount |
Acquisition Cost | Difference | Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Exceeds Acquisition Cost |
Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost |
||||||||||||||||
Other in Money Held in Trust |
3,053 | 3,053 | | | |
(Note) | Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Exceeds Acquisition Cost and Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost are components of Difference. |
- 36 -
Unrealized Gains (Losses) on Other Securities
Details of Unrealized Gains (Losses) on Other Securities on the interim consolidated balance sheet (consolidated balance sheet) are as follows:
As of March 31, 2016
(Millions of yen) | ||||
Amount | ||||
Difference between Acquisition Cost and Fair Value |
1,855,281 | |||
Other Securities |
1,855,281 | |||
() Deferred Tax Liabilities |
508,389 | |||
Difference between Acquisition Cost and Fair Value, net of Taxes (Before adjusting for amount corresponding to Non-controlling Interests) |
1,346,892 | |||
() Amount Corresponding to Non-controlling Interests |
56,046 | |||
(+) Amount Corresponding to Net Unrealized Gains (Losses) on Other Securities Owned by Affiliated Companies, which is attributable to MHFG |
5,193 | |||
|
|
|||
Net Unrealized Gains (Losses) on Other Securities |
1,296,039 | |||
|
|
(Notes) |
1. | The difference between acquisition cost and fair value excludes ¥26,715 million (gains) which was recognized in the statement of income for the fiscal year ended March 31, 2016 by applying the fair-value hedge method. | ||||
2. | Other Securities includes translation differences regarding securities which do not have readily determinable fair value. |
As of September 30, 2016
(Millions of yen) | ||||
Amount | ||||
Difference between Acquisition Cost and Fair Value |
1,631,865 | |||
Other Securities |
1,631,865 | |||
() Deferred Tax Liabilities |
446,973 | |||
Difference between Acquisition Cost and Fair Value, net of Taxes (Before adjusting for amount corresponding to Non-controlling Interests) |
1,184,891 | |||
() Amount Corresponding to Non-controlling Interests |
54,764 | |||
(+) Amount Corresponding to Net Unrealized Gains (Losses) on Other Securities Owned by Affiliated Companies, which is attributable to MHFG |
4,221 | |||
|
|
|||
Net Unrealized Gains (Losses) on Other Securities |
1,134,348 | |||
|
|
(Notes) |
1. | The difference between acquisition cost and fair value excludes ¥15,052 million (gains) which was recognized in the statement of income for six months ended September 30, 2016 by applying the fair-value hedge method. | ||||
2. | Other Securities includes translation differences regarding securities which do not have readily determinable fair value. |
- 37 -
Derivatives Information
Derivative Transactions not Qualifying for Hedge Accounting
With regard to derivative transactions not qualifying for hedge accounting, contract value or contractual principal equivalents, fair values and unrealized gains (losses), and fair value calculation method by type of transaction as of the interim consolidated balance sheet date (consolidated balance sheet date) are as follows. Contract value amounts do not indicate the market risk related to derivative transactions.
(1) | Interest Rate-Related Transactions |
As of March 31, 2016
(Millions of yen) |
||||||||||||||||||
Classification |
Type |
Contract Value | Fair Value | Unrealized Gains (Losses) |
||||||||||||||
Total | Over One Year | |||||||||||||||||
Listed |
Futures | |||||||||||||||||
Sold |
15,846,181 | 5,404,223 | (101,255 | ) | (101,255 | ) | ||||||||||||
Bought |
15,329,146 | 5,440,259 | 93,252 | 93,252 | ||||||||||||||
Options | ||||||||||||||||||
Sold |
266,618 | 35,363 | (684 | ) | 221 | |||||||||||||
Bought |
659,242 | 140,726 | 636 | (413 | ) | |||||||||||||
Over-the-Counter |
FRAs | |||||||||||||||||
Sold |
16,516,064 | 2,486,927 | (7,427 | ) | (7,427 | ) | ||||||||||||
Bought |
8,747,790 | | 321 | 321 | ||||||||||||||
Swaps | ||||||||||||||||||
Receive Fixed / Pay Float |
450,204,501 | 348,348,352 | 10,989,099 | 10,989,099 | ||||||||||||||
Receive Float / Pay Fixed |
445,186,117 | 338,980,895 | (10,832,435 | ) | (10,832,435 | ) | ||||||||||||
Receive Float / Pay Float |
77,852,071 | 57,764,275 | 40,572 | 40,572 | ||||||||||||||
Receive Fixed / Pay Fixed |
769,835 | 740,715 | 22,623 | 22,623 | ||||||||||||||
Options | ||||||||||||||||||
Sold |
9,510,832 | 6,160,305 | (157,337 | ) | (157,337 | ) | ||||||||||||
Bought |
6,157,532 | 4,019,060 | 62,094 | 62,094 | ||||||||||||||
Inter-Company or Internal Transactions |
Swaps | |||||||||||||||||
Receive Fixed / Pay Float |
4,188,380 | 4,012,121 | 77,460 | 77,460 | ||||||||||||||
Receive Float / Pay Fixed |
11,761,887 | 10,348,763 | (209,539 | ) | (209,539 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
| | (22,617 | ) | (22,760 | ) | ||||||||||||
|
|
|
|
|
|
|
|
(Notes) | 1. | The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income. | ||
2. | Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others. | |||
Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others. |
- 38 -
As of September 30, 2016
(Millions of yen) |
||||||||||||||||||
Classification |
Type |
Contract Value | Fair Value | Unrealized Gains (Losses) |
||||||||||||||
Total | Over One Year | |||||||||||||||||
Listed |
Futures | |||||||||||||||||
Sold |
14,363,359 | 4,955,742 | (78,011 | ) | (78,011 | ) | ||||||||||||
Bought |
13,856,810 | 4,955,239 | 72,396 | 72,396 | ||||||||||||||
Options | ||||||||||||||||||
Sold |
850,904 | | (730 | ) | 174 | |||||||||||||
Bought |
1,306,210 | 50,418 | 691 | (58 | ) | |||||||||||||
Over-the-Counter |
FRAs | |||||||||||||||||
Sold |
22,365,786 | 811,262 | (12,705 | ) | (12,705 | ) | ||||||||||||
Bought |
17,018,004 | 35,533 | 6,178 | 6,178 | ||||||||||||||
Swaps | ||||||||||||||||||
Receive Fixed / Pay Float |
406,596,701 | 311,829,874 | 13,170,048 | 13,170,048 | ||||||||||||||
Receive Float / Pay Fixed |
397,851,585 | 303,821,250 | (12,782,678 | ) | (12,782,678 | ) | ||||||||||||
Receive Float / Pay Float |
78,188,397 | 59,774,298 | 38,880 | 38,880 | ||||||||||||||
Receive Fixed / Pay Fixed |
760,790 | 665,608 | 25,064 | 25,064 | ||||||||||||||
Options | ||||||||||||||||||
Sold |
8,396,402 | 5,244,340 | (182,424 | ) | (182,424 | ) | ||||||||||||
Bought |
5,767,951 | 3,375,223 | 69,860 | 69,860 | ||||||||||||||
Inter-Company or Internal Transactions |
Swaps | |||||||||||||||||
Receive Fixed / Pay Float |
3,199,742 | 3,088,782 | 53,652 | 53,652 | ||||||||||||||
Receive Float / Pay Fixed |
10,034,008 | 9,196,449 | (188,816 | ) | (188,816 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
| | 191,407 | 191,562 | ||||||||||||||
|
|
|
|
|
|
|
|
(Notes) | 1. | The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income. | ||
2. | Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others. | |||
Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others. |
- 39 -
(2) | Currency-Related Transactions |
As of March 31, 2016
(Millions of yen) |
||||||||||||||||||
Classification |
Type |
Contract Value | Fair Value | Unrealized Gains (Losses) |
||||||||||||||
Total | Over One Year | |||||||||||||||||
Listed |
Futures | |||||||||||||||||
Sold |
20,867 | 120 | (61 | ) | (61 | ) | ||||||||||||
Bought |
73,227 | 36,677 | 41 | 41 | ||||||||||||||
Over-the-Counter |
Swaps | 42,725,365 | 27,770,539 | 81,081 | 67,031 | |||||||||||||
Forwards | ||||||||||||||||||
Sold |
61,814,420 | 3,398,506 | 516,292 | 516,292 | ||||||||||||||
Bought |
26,644,388 | 1,077,489 | (360,548 | ) | (360,548 | ) | ||||||||||||
Options | ||||||||||||||||||
Sold |
3,159,248 | 1,138,887 | (148,426 | ) | (47,789 | ) | ||||||||||||
Bought |
2,857,596 | 938,677 | 100,894 | (2,122 | ) | |||||||||||||
Inter-Company or Internal Transactions |
Swaps | 4,031,159 | 3,332,541 | (183,406 | ) | (17,723 | ) | |||||||||||
Forwards | ||||||||||||||||||
Bought |
149,337 | | 869 | 869 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
| | 6,736 | 155,987 | ||||||||||||||
|
|
|
|
|
|
|
|
(Notes) | 1. | The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income. | ||
2. | Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others. | |||
Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others. |
As of September 30, 2016
(Millions of yen) |
||||||||||||||||||
Classification |
Type |
Contract Value | Fair Value | Unrealized Gains (Losses) |
||||||||||||||
Total | Over One Year | |||||||||||||||||
Listed |
Futures | |||||||||||||||||
Sold |
19,736 | 309 | (0 | ) | (0 | ) | ||||||||||||
Bought |
83,389 | 38,939 | 0 | 0 | ||||||||||||||
Over-the-Counter |
Swaps | 42,273,588 | 28,234,682 | 189,786 | 140,719 | |||||||||||||
Forwards | ||||||||||||||||||
Sold |
57,774,572 | 3,201,837 | 742,846 | 742,846 | ||||||||||||||
Bought |
25,469,472 | 1,034,440 | (556,996 | ) | (556,996 | ) | ||||||||||||
Options | ||||||||||||||||||
Sold |
2,680,831 | 1,074,307 | (96,773 | ) | (5,503 | ) | ||||||||||||
Bought |
2,374,047 | 911,380 | 107,675 | 15,249 | ||||||||||||||
Inter-Company or Internal Transactions |
Swaps | 3,896,195 | 2,617,597 | (455,543 | ) | (8,090 | ) | |||||||||||
Forwards | ||||||||||||||||||
Bought |
133,038 | | (2,695 | ) | (2,695 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
| | (71,699 | ) | 325,529 | |||||||||||||
|
|
|
|
|
|
|
|
(Notes) | 1. | The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income. | ||
2. | Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others. | |||
Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others. |
- 40 -
(3) | Stock-Related Transactions |
As of March 31, 2016
(Millions of yen) |
||||||||||||||||||
Classification |
Type |
Contract Value | Fair Value | Unrealized Gains (Losses) |
||||||||||||||
Total | Over One Year | |||||||||||||||||
Listed |
Index Futures | |||||||||||||||||
Sold |
339,684 | 19,677 | (133 | ) | (133 | ) | ||||||||||||
Bought |
34,398 |