Edgar Filing: MIZUHO FINANCIAL GROUP INC

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of January 2017

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

Japan

(Address of principal executive office)

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date: January 30, 2017

Mizuho Financial Group, Inc.

By:		/s/ Koichi Iida
Name:		Koichi Iida
Title:		Managing Executive Officer / Group CFO

The following is the English translation of excerpt regarding the Basel Pillar 3 disclosures and the relevant information from our Japanese language disclosure material published in January 2017.

The Japanese regulatory disclosure requirements are fulfilled with the Basel Pillar 3 disclosures and Japanese GAAP is applied to the relevant financial information.

In this report, “we,” “us,” and “our” refer to Mizuho Financial Group, Inc. and, unless the context indicates otherwise, its consolidated subsidiaries. “Mizuho Financial Group” refers to Mizuho Financial Group, Inc.

Status of Capital Adequacy


Capital adequacy requirement highlights			2

∎ Capital adequacy ratio

∎ Risk weighted assets			3

Status of Mizuho Financial Group’s consolidated capital adequacy			4

∎ Scope of consolidation			4
(1) Scope of consolidation for calculating consolidated capital adequacy ratio

∎ Composition of capital			5
(2) Composition of capital, etc.

∎ Risk-based capital			15
(3) Required capital by portfolio classification

∎ Credit risk			16
(4) Credit risk exposure, etc.

∎ Methods for credit risk mitigation			30
(5) Credit risk mitigation by portfolio classification

∎ Counterparty risk in derivatives transactions and long-settlement transactions			31
(6) Status of counterparty risk in derivatives transactions and long-settlement transactions

∎ Securitization exposure			33
(7) Quantitative disclosure items for securitization exposure

∎ Market risk			51

∎ Equity exposure in banking book			53
(8) Status of equity exposure in banking book

∎ Composition of Leverage Ratio			55

Status of Sound Management of Liquidity Risk


Liquidity Coverage Ratio			56

Status of Major Liquid Assets			57

Capital adequacy requirement highlights

The Basel Framework, based on the “International Convergence of Capital Measurement and Capital Standards: A Revised Framework” issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy information to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the “Matters Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions, etc. pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law (Ministry of Finance Ordinance No. 10 of 1982)” (the FSA Notice No. 7 of 2014.).

With respect to the calculation of capital adequacy ratio, we have applied the international standard and adopted (a) the advanced internal ratings-based approach as a method to calculate the amount of credit risk weighted assets and (b) the advanced measurement approach as a method to calculate the amount equivalent to the operational risk.

∎ Capital adequacy ratio

(1) Summary of capital adequacy ratio

Mizuho Financial Group (Consolidated)


	(Billions of yen)
	As of September 30, 2015			As of September 30, 2016
Total capital ratio (International standard)		15.40	%		15.84	%
Tier 1 capital ratio		12.42	%		12.94	%
Common equity Tier 1 capital ratio		10.17	%		10.98	%

Total capital		9,596.1			9,767.8

Tier 1 capital		7,742.3			7,982.5
Common equity Tier 1 capital		6,338.8			6,769.3

Risk weighted assets		62,309.2			61,648.4

Credit risk		57,249.5			56,576.9
Market risk		1,982.7			1,917.2
Operational risk		3,076.9			3,154.3

Mizuho Bank (Consolidated)

	(Billions of yen)
	As of September 30, 2015			As of September 30, 2016
Total capital ratio (International standard)		16.01	%		16.01	%
Tier 1 capital ratio		13.06	%		13.22	%
Common equity Tier 1 capital ratio		10.83	%		11.02	%

Total capital		9,097.2			9,012.1

Tier 1 capital		7,420.5			7,440.1
Common equity Tier 1 capital		6,151.9			6,202.3

Risk weighted assets		56,790.8			56,261.3

Credit risk		53,234.2			53,098.7
Market risk		1,420.2			878.1
Operational risk		2,136.3			2,284.4

Mizuho Bank (Non-Consolidated)

	(Billions of yen)
	As of September 30, 2015			As of September 30, 2016
Total capital ratio (International standard)		16.06	%		16.37	%
Tier 1 capital ratio		12.93	%		13.39	%
Common equity Tier 1 capital ratio		10.65	%		11.06	%

Total capital		8,936.3			8,846.2

Tier 1 capital		7,196.8			7,238.5
Common equity Tier 1 capital		5,928.9			5,976.5

Risk weighted assets		55,639.4			54,032.8

Credit risk		52,363.8			51,520.2
Market risk		1,390.7			627.9
Operational risk		1,884.8			1,884.6

Mizuho Trust & Banking (Consolidated)

	(Billions of yen)
	As of September 30, 2015			As of September 30, 2016
Total capital ratio (International standard)		21.13	%		19.95	%
Tier 1 capital ratio		19.10	%		18.80	%
Common equity Tier 1 capital ratio		19.06	%		18.80	%

Total capital		502.1			479.1

Tier 1 capital		453.8			451.6
Common equity Tier 1 capital		452.9			451.6

Risk weighted assets		2,376.1			2,401.3

Credit risk		2,111.3			2,125.7
Market risk		17.3			13.0
Operational risk		247.4			262.5


Mizuho Trust & Banking (Non-consolidated)

	(Billions of yen)
	As of September 30, 2015			As of September 30, 2016
Total capital ratio (International standard)		21.22	%		20.16	%
Tier 1 capital ratio		19.18	%		19.05	%
Common equity Tier 1 capital ratio		19.18	%		19.05	%

Total capital		491.6			488.5

Tier 1 capital		444.3			461.6
Common equity Tier 1 capital		444.3			461.6

Risk weighted assets		2,315.9			2,422.8

Credit risk		2,092.0			2,184.4
Market risk		15.8			11.3
Operational risk		208.1			227.1

∎ Risk weighted assets

(1) Credit risk weighted assets by asset class and ratings segment

Mizuho Financial Group (Consolidated)


	(Billions of yen)
	As of September 30, 2015						As of September 30, 2016
	EAD		Credit risk weighted assets		Risk Weight(%)		EAD		Credit risk weighted assets		Risk Weight(%)
Internal ratings-based approach		192,002.1		50,906.6		26.51		184,252.0		49,590.8		26.91

Corporate, etc.		165,597.6		31,370.5		18.94		159,867.8		31,109.7		19.45
Corporate (except specialized lending)		77,672.1		28,057.1		36.12		74,556.7		28,326.4		37.99
Ratings A1-B2		55,685.6		14,407.0		25.87		52,669.8		14,471.9		27.47
Ratings C1-D3		19,911.7		11,987.8		60.20		19,719.8		11,915.4		60.42
Ratings E1-E2		1,025.6		1,302.8		127.02		1,155.8		1,577.9		136.51
Ratings E2R-H1		1,049.1		359.4		34.26		1,011.2		361.1		35.71
Sovereign		79,782.9		1,219.3		1.53		78,802.5		1,067.1		1.35
Ratings A1-B2		79,637.5		1,140.1		1.43		78,683.1		991.9		1.26
Ratings C1-D3		142.2		77.7		54.64		118.9		74.3		62.52
Ratings E1-E2		3.0		1.4		48.23		0.4		0.7		181.13
Ratings E2R-H1		0.1		0.0		62.90		0.0		0.0		62.70
Bank		7,920.2		1,830.6		23.11		6,358.3		1,557.8		24.50
Ratings A1-B2		7,108.0		1,386.9		19.51		5,814.0		1,225.7		21.08
Ratings C1-D3		804.5		433.1		53.83		537.4		320.5		59.63
Ratings E1-E2		4.2		9.6		224.78		4.1		10.7		258.09
Ratings E2R-H1		3.4		1.0		29.81		2.6		0.7		30.20
Specialized lending		222.2		263.3		118.48		150.2		158.1		105.31
Retail		13,192.5		5,058.4		38.34		12,530.7		4,726.6		37.72
Residential mortgage		10,027.3		3,362.9		33.54		9,562.8		3,195.3		33.41
Qualifying revolving loan		527.4		342.1		64.86		588.6		383.2		65.10
Other retail		2,637.6		1,353.3		51.31		2,379.3		1,148.0		48.25
Equities		4,951.9		7,921.2		159.96		4,359.0		7,386.0		169.44
PD/LGD approach		4,430.4		6,219.8		140.39		3,715.4		5,298.7		142.61
Market-based approach		521.5		1,701.4		326.22		643.6		2,087.2		324.29
Regarded-method exposure		2,015.1		4,335.6		215.15		1,871.5		4,223.2		225.65
Securitizations		3,583.9		288.4		8.05		3,439.9		269.6		7.83
Others		2,660.8		1,932.1		72.61		2,182.9		1,875.5		85.92

Standardized approach		9,184.5		3,565.4		38.82		13,081.9		3,575.8		27.33

CVA risk		n.a.		2,555.1		n.a.		n.a.		3,188.2		n.a.

Central counterparty-related		n.a.		222.3		n.a.		n.a.		221.9		n.a.

Total		201,186.6		57,249.5		28.46		197,334.0		56,576.9		28.67


Notes:

1.		“Corporate” does not include specialized lending exposure under supervisory slotting criteria.

2.		“Specialized lending” is specialized lending exposure under supervisory slotting criteria.

Risk weighted assets decreased mainly by Equities.

The decrease of Equities is mainly due to sale of some stocks and decline of stock prices in our portfolio.

Status of Mizuho Financial Group’s consolidated capital adequacy

∎ Scope of consolidation

(1) Scope of consolidation for calculating consolidated capital adequacy ratio

(A) Difference from the companies included in the scope of consolidation based on consolidation rules for preparation of consolidated financial statements (the “scope of accounting consolidation”)

None as of September 30, 2015 and 2016.

(B) Number of consolidated subsidiaries


	As of September 30, 2015		As of September 30, 2016
Consolidated subsidiaries		147		142

Our major consolidated subsidiaries (and their main businesses) are Mizuho Bank, Ltd. (banking business), Mizuho Trust & Banking Co., Ltd. (trust business and banking business) and Mizuho Securities Co., Ltd. (securities business).

(C) Corporations providing financial services for which Article 9 of the FSA Notice No. 20 is applicable

None as of September 30, 2015 and 2016.

(D) Companies that are in the bank holding company’s corporate group but not included in the scope of accounting consolidation and companies that are not in the bank holding company’s corporate group but included in the scope of accounting consolidation

None as of September 30, 2015 and 2016.

(E) Restrictions on transfer of funds or capital within the bank holding company’s corporate group

None as of September 30, 2015 and 2016.

(F) Names of any other financial institutions, etc., classified as subsidiaries or other members of the bank holding company that are deficient in regulatory capital

None as of September 30, 2015 and 2016.

∎ Composition of capital

(2) Composition of capital, etc.

(A) Composition of capital disclosure

Composition of capital disclosure (International standard)


			(Millions of yen)
			As of September 30, 2015				As of September 30, 2016
Basel III template					Amounts excluded under transitional arrangements				Amounts excluded under transitional arrangements
Common equity Tier 1 capital: instruments and reserves		(1)
1a+2-1c-26	Directly issued qualifying common share capital plus related stock surplus and retained earnings			6,128,579		/		6,730,792		/
1a	of which: capital and stock surplus			3,223,128		/		3,367,574		/
2	of which: retained earnings			3,004,162		/		3,463,490		/
1c	of which: treasury stock (-)			4,031		/		5,098		/
26	of which: national specific regulatory adjustments (earnings to be distributed) (-)			94,680		/		95,173		/
	of which: other than above			—		/		—		/
1b	Subscription rights to common shares			2,762		/		1,754		/
3	Accumulated other comprehensive income and other disclosed reserves			683,133		1,024,700		856,425		570,950
5	Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)			11,789		/		14,954		/
	Total of items included in common equity Tier 1 capital: instruments and reserves subject to phase-out arrangements			52,353		/		33,263		/
	of which: amount allowed in group CET1 capital subject to phase-out arrangements on common share capital issued by subsidiaries and held by third parties			52,353		/		33,263		/
6	Common equity Tier 1 capital: instruments and reserves	(A)		6,878,618		/		7,637,189		/
Common equity Tier 1 capital: regulatory adjustments		(2)
8+9	Total intangible assets (net of related tax liability, excluding those relating to mortgage servicing rights)			205,731		308,597		383,779		255,853
8	of which: goodwill (net of related tax liability, including those equivalent)			16,064		24,096		30,506		20,337
9	of which: other intangibles other than goodwill and mortgage servicing rights (net of related tax liability)			189,667		284,500		353,273		235,515
10	Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)			4,731		7,097		35,461		23,641
11	Deferred gains or losses on derivatives under hedge accounting			23,642		35,463		100,246		66,831
12	Shortfall of eligible provisions to expected losses			16,047		23,976		40,278		26,855
13	Securitization gain on sale			40		61		46		30
14	Gains and losses due to changes in own credit risk on fair valued liabilities			516		774		1,047		698
15	Net defined benefit asset			209,811		314,717		280,679		187,119
16	Investments in own shares (excluding those reported in the net assets section)			930		1,395		1,594		1,062
17	Reciprocal cross-holdings in common equity			—		—		—		—
18	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above the 10% threshold)			78,353		117,530		24,658		16,438
19+20+21	Amount exceeding the 10% threshold on specified items			—		—		—		—
19	of which: significant investments in the common stock of financials			—		—		—		—
20	of which: mortgage servicing rights			—		—		—		—
21	of which: deferred tax assets arising from temporary differences (net of related tax liability)			—		—		—		—
22	Amount exceeding the 15% threshold on specified items			—		—		—		—
23	of which: significant investments in the common stock of financials			—		—		—		—
24	of which: mortgage servicing rights			—		—		—		—
25	of which: deferred tax assets arising from temporary differences (net of related tax liability)			—		—		—		—
27	Regulatory adjustments applied to common equity Tier 1 due to insufficient additional Tier 1 and Tier 2 to cover deductions			—		/		—		/
28	Common equity Tier 1 capital: regulatory adjustments	(B)		539,805		/		867,792		/
Common equity Tier 1 capital (CET1)
29	Common equity Tier 1 capital (CET1) ((A)-(B))	(C)		6,338,812		/		6,769,396		/


				(Millions of yen)
				As of September 30, 2015					As of September 30, 2016
Basel III template							Amounts excluded under transitional arrangements					Amounts excluded under transitional arrangements
Additional Tier 1 capital: instruments			(3)
30	31a	Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown			—			/		—			/
30	31b	Subscription rights to additional Tier 1 instruments			—			/		—			/
30	32	Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards			300,000			/		760,000			/
30		Qualifying additional Tier 1 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities			—			/		—			/
34-35		Additional Tier 1 instruments issued by subsidiaries and held by third parties (amount allowed in group AT1)			29,117			/		30,890			/
33+35		Eligible Tier 1 capital instruments subject to phase-out arrangements included in additional Tier 1 capital: instruments			1,193,555			/		577,500			/
33		of which: directly issued capital instruments subject to phase out from additional Tier 1			1,193,555			/		577,500			/
35		of which: instruments issued by subsidiaries subject to phase out			—			/		—			/
		Total of items included in additional Tier 1 capital: instruments subject to phase-out arrangements			(26,251	)		/		(34,360	)		/
		of which: foreign currency translation adjustments			(26,251	)		/		(34,360	)		/
36		Additional Tier 1 capital: instruments	(D)		1,496,421			/		1,334,030			/
Additional Tier 1 capital: regulatory adjustments
37		Investments in own additional Tier 1 instruments			—			—		—			—
38		Reciprocal cross-holdings in additional Tier 1 instruments			—			—		—			—
39		Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)			177			265		66			44
40		Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions)			58,370			87,555		88,200			58,800
		Total of items included in additional Tier 1 capital: regulatory adjustments subject to phase-out arrangements			34,349			/		32,630			/
		of which: goodwill equivalent			5,487			/		9,078			/
		of which: intangible fixed assets recognized as a result of a merger			16,764			/		10,095			/
		of which: capital increase due to securitization transactions			61			/		30			/
		of which: 50% of excess of expected losses relative to eligible reserves by banks adopting internal ratings-based approach			12,035			/		13,426			/
42		Regulatory adjustments applied to additional Tier 1 due to insufficient Tier 2 to cover deductions			—			/		—			/
43		Additional Tier 1 capital: regulatory adjustments	(E)		92,896			/		120,897			/


			(Millions of yen)
			As of September 30, 2015				As of September 30, 2016
Basel III template					Amounts excluded under transitional arrangements				Amounts excluded under transitional arrangements
Additional Tier 1 capital (AT1)
44	Additional Tier 1 capital ((D)-(E))	(F)		1,403,524		/		1,213,132		/
Tier 1 capital (T1 = CET1 + AT1)
45	Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))	(G)		7,742,337		/		7,982,529		/
Tier 2 capital: instruments and provisions		(4)
46	Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown			—		/		—		/
46	Subscription rights to Tier 2 instruments			—		/		—		/
46	Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards			200,000		/		495,840		/
46	Tier 2 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities			179,955		/		151,680		/
48-49	Tier 2 instruments issued by subsidiaries and held by third parties (amount allowed in group Tier 2)			9,190		/		10,481		/
47+49	Eligible Tier 2 capital instruments subject to phase-out arrangements included in Tier 2: instruments and provisions			1,031,810		/		884,083		/
47	of which: directly issued capital instruments subject to phase out from Tier 2			179,955		/		151,680		/
49	of which: instruments issued by subsidiaries subject to phase out			851,855		/		732,403		/
50	Total of general allowance for loan losses and eligible provisions included in Tier 2			5,321		/		5,726		/
50a	of which: general allowance for loan losses			5,321		/		5,726		/
50b	of which: eligible provisions			—		/		—		/
	Total of items included in Tier 2 capital: instruments and provisions subject to phase-out arrangements			595,993		/		333,124		/
	of which: 45% of unrealized gains on other securities			537,310		/		294,596		/
	of which: 45% of revaluation reserve for land			58,683		/		38,527		/
51	Tier 2 capital: instruments and provisions	(H)		2,022,270		/		1,880,935		/
Tier 2 capital: regulatory adjustments
52	Investments in own Tier 2 instruments			400		600		209		139
53	Reciprocal cross-holdings in Tier 2 instruments			—		—		—		—
54	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold)			47,465		71,198		11,541		7,694
55	Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions)			—		—		—		—
	Total of items included in Tier 2 capital: regulatory adjustments subject to phase-out arrangements			120,639		/		83,844		/
	of which: investments in the capital banking, financial and insurance entities			108,603		/		70,418		/
	of which: 50% of excess of expected losses relative to eligible reserves by banks adopting internal ratings-based approach			12,035		/		13,426		/
57	Tier 2 capital: regulatory adjustments	(I)		168,504		/		95,596		/
Tier 2 capital (T2)
58	Tier 2 capital (T2) ((H)-(I))	(J)		1,853,765		/		1,785,339		/
Total capital (TC = T1 + T2)
59	Total capital (TC = T1 + T2) ((G)+(J))	(K)		9,596,102		/		9,767,868		/


			(Millions of yen)
			As of September 30, 2015					As of September 30, 2016
Basel III template						Amounts excluded under transitional arrangements					Amounts excluded under transitional arrangements
Risk weighted assets		(5)
	Total of items included in risk weighted assets subject to phase-out arrangements			859,464			/		473,144			/
	of which: intangible assets (net of related tax liability, excluding those relating to mortgage servicing rights)			267,735			/		225,420			/
	of which: deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)			7,097			/		23,641			/
	of which: net defined benefit asset			314,717			/		187,119			/
	of which: investments in the capital banking, financial and insurance entities			269,913			/		36,963			/
60	Risk weighted assets	(L)		62,309,276			/		61,648,482			/
Capital ratio (consolidated)
61	Common equity Tier 1 capital ratio (consolidated) ((C)/(L))			10.17	%		/		10.98	%		/
62	Tier 1 capital ratio (consolidated) ((G)/(L))			12.42	%		/		12.94	%		/
63	Total capital ratio (consolidated) ((K)/(L))			15.40	%		/		15.84	%		/
Regulatory adjustments		(6)
72	Non-significant investments in the capital of other financials that are below the thresholds for deduction (before risk weighting)			669,722			/		676,959			/
73	Significant investments in the common stock of financials that are below the thresholds for deduction (before risk weighting)			152,389			/		117,422			/
74	Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)			—			/		—			/
75	Deferred tax assets arising from temporary differences that are below the thresholds for deduction (before risk weighting)			76,167			/		122,634			/
Provisions included in Tier 2 capital: instruments and provisions		(7)
76	Provisions (general allowance for loan losses)			5,321			/		5,726			/
77	Cap on inclusion of provisions (general allowance for loan losses)			46,560			/		46,690			/
78	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) (if the amount is negative, report as “nil”)			—			/		—			/
79	Cap for inclusion of provisions in Tier 2 under internal ratings-based approach			304,483			/		296,588			/


			(Millions of yen)
			As of September 30, 2015				As of September 30, 2016
Basel III template					Amounts excluded under transitional arrangements				Amounts excluded under transitional arrangements
Capital instruments subject to phase-out arrangements		(8)
82	Current cap on AT1 instruments subject to phase-out arrangements			1,458,197		/		1,249,883		/
83	Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) (if the amount is negative, report as “nil”)			—		/		—		/
84	Current cap on T2 instruments subject to phase-out arrangements			1,180,942		/		1,012,236		/
85	Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) (if the amount is negative, report as “nil”)			—		/		—		/

Notes:

1.	The above figures are calculated based on International standard applied on a consolidated basis under the FSA Notice No. 20.

In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young ShinNihon LLC, on the basis of “Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio” (Industry Committee Practical Guideline No. 30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on our consolidated financial statements. This consists of an examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of the capital adequacy ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor the internal controls related to the calculation of the capital adequacy ratio.

(B) Explanation of (A) Composition of capital disclosure

Reconciliation between “Consolidated balance sheet” and items of consolidated balance sheet and “Composition of capital disclosure”


	(Millions of yen)
Items	Consolidated balance sheet as in published financial statements						Cross- reference to Appended template		Reference # of Basel III template under the Composition of capital disclosure
	As of September 30, 2015			As of September 30, 2016			Cross- reference to Appended template
(Assets)
Cash and due from banks		35,194,504			42,715,384
Call loans and bills purchased		453,546			899,865
Receivables under resale agreements		8,618,422			9,258,984
Guarantee deposits paid under securities borrowing transactions		3,900,412			3,195,977
Other debt purchased		2,907,399			2,527,270
Trading assets		11,565,875			12,511,953			6-a
Money held in trust		145,940			227,975
Securities		39,996,490			32,705,104			2-b, 6-b
Loans and bills discounted		74,276,839			73,030,669			6-c
Foreign exchange assets		1,657,373			1,452,483
Derivatives other than for trading assets		2,958,859			2,957,197			6-d
Other assets		3,537,663			4,272,085			6-e
Tangible fixed assets		1,078,339			1,071,524
Intangible fixed assets		706,610			869,070			2-a
Net defined benefit asset		773,296			673,562			3
Deferred tax assets		37,174			77,011			4-a
Customers’ liabilities for acceptances and guarantees		4,901,887			4,675,296
Reserves for possible losses on loans		(463,886	)		(441,438	)

Total assets		192,246,749			192,679,978

(Liabilities)
Deposits		100,595,584			110,171,994
Negotiable certificates of deposit		15,455,822			9,568,325
Call money and bills sold		5,738,107			1,791,651
Payables under repurchase agreements		19,677,206			17,739,258
Guarantee deposits received under securities lending transactions		2,115,663			1,314,573
Commercial paper		628,445			827,552
Trading liabilities		8,964,612			9,878,751			6-f
Borrowed money		7,406,585			7,243,394			8-a
Foreign exchange liabilities		560,551			582,971
Short-term bonds		776,296			408,033
Bonds and notes		6,235,233			7,131,121			8-b
Due to trust accounts		1,954,690			4,053,768
Derivatives other than for trading liabilities		2,653,017			2,001,471			6-g
Other liabilities		4,649,335			5,755,737
Reserve for bonus payments		43,964			47,174
Reserve for variable compensation		—			1,488
Net defined benefit liability		48,948			52,668
Reserve for director and corporate auditor retirement benefits		1,567			1,376
Reserve for possible losses on sales of loans		220			3
Reserve for contingencies		6,870			4,889
Reserve for reimbursement of deposits		16,684			15,828
Reserve for reimbursement of debentures		42,905			35,273
Reserves under special laws		1,848			2,219
Deferred tax liabilities		433,970			337,644			4-b
Deferred tax liabilities for revaluation reserve for land		71,897			67,247			4-c
Acceptances and guarantees		4,901,887			4,675,296

Total liabilities		182,981,918			183,709,717

(Net assets)
Common stock and preferred stock		2,255,790			2,256,275			1-a
Capital surplus		1,111,410			1,111,299			1-b
Retained earnings		3,004,969			3,464,082			1-c
Treasury stock		(4,031	)		(5,098	)		1-d

Total shareholders’ equity		6,368,139			6,826,558

Net unrealized gains (losses) on other securities		1,386,622			1,134,348
Deferred gains or losses on hedges		59,105			167,078			5
Revaluation reserve for land		145,446			146,794
Foreign currency translation adjustment		(43,751	)		(85,900	)
Remeasurements of defined benefit plans		160,410			65,055

Total accumulated other comprehensive income		1,707,834			1,427,376				3

Stock acquisition rights		2,762			1,754				1b
Non-controlling Interests		1,186,094			714,572			7

Total net assets		9,264,830			8,970,260

Total liabilities and net assets		192,246,749			192,679,978

Note:

The regulatory scope of consolidation is the same as the accounting scope of consolidation.

Appended template

1. Shareholders’ equity

(1) Consolidated balance sheet

Consolidated balance sheet items

(Millions of yen)

Ref.

As of September 30,
2015

As of September 30,
2016

Remarks

1-a

Common stock and preferred stock

2,255,790

2,256,275

Including eligible Tier 1 capital instruments subject to phase-out arrangements (for the balance as of September 30, 2015)

1-b

Capital surplus

1,111,410

1,111,299

Including eligible Tier 1 capital instruments subject to phase-out arrangements (for the balance as of September 30, 2015)

1-c

Retained earnings

3,004,969

3,464,082

1-d

Treasury stock

(4,031

)

(5,098

)

Total shareholders’ equity

6,368,139

6,826,558

(2) Composition of capital

Composition of capital disclosure

(Millions of yen)

Basel III
template

As of September 30,
2015

As of September 30,
2016

Remarks

Directly issued qualifying common share capital plus related stock surplus and retained earnings

6,223,259

6,825,966

Shareholders’ equity attributable to common shares (before adjusting national specific regulatory adjustments (earnings to be distributed))

of which: capital and stock surplus

3,223,128

3,367,574

of which: retained earnings

3,004,162

3,463,490

of which: treasury stock (-)

4,031

5,098

of which: other than above

—

31a

Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown

—

Shareholders’ equity attributable to preferred shares with a loss absorbency clause upon entering into effectively bankruptcy

2. Intangible fixed assets

(1) Consolidated balance sheet

Consolidated balance sheet items

(Millions of yen)

Ref.

As of September 30,
2015

As of September 30,
2016

Remarks

2-a

Intangible fixed assets

706,610

869,070

2-b

Securities

39,996,490

32,705,104

of which: share of goodwill of companies accounted for using the equity method

31,016

28,147

Share of goodwill of companies accounted for using the equity method

Income taxes related to above

(223,297

)

(257,585

)


(2) Composition of capital

	Composition of capital disclosure	(Millions of yen)
Basel III template	Composition of capital disclosure	As of September 30, 2015			As of September 30, 2016			Remarks
8	Goodwill (net of related tax liability, including those equivalent)		40,161			50,844
9	Other intangibles other than goodwill and mortgage servicing rights (net of related tax liability)		474,167			588,788		Software and other
	Mortgage servicing rights (net of related tax liability)		—			—
20	Amount exceeding the 10% threshold on specified items		—			—
24	Amount exceeding the 15% threshold on specified items		—			—
74	Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)		—			—
3. Net defined benefit asset
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2015			As of September 30, 2016			Remarks
3	Net defined benefit asset		773,296			673,562
	Income taxes related to above		(248,767	)		(205,762	)

(2) Composition of capital
		(Millions of yen)
Basel III template	Composition of capital disclosure	As of September 30, 2015			As of September 30, 2016			Remarks
15	Net defined benefit asset		524,528			467,799

4. Deferred tax assets
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2015			As of September 30, 2016			Remarks
4-a	Deferred tax assets		37,174			77,011
4-b	Deferred tax liabilities		433,970			337,644
4-c	Deferred tax liabilities for revaluation reserve for land		71,897			67,247
	Tax effects on intangible fixed assets		223,297			257,585
	Tax effects on net defined benefit asset		248,767			205,762
(2) Composition of capital
		(Millions of yen)
Basel III template	Composition of capital disclosure	As of September 30, 2015			As of September 30, 2016			Remarks
10	Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)		11,829			59,102		This item does not agree with the amount reported on the consolidated balance sheet due to offsetting of assets and liabilities.
	Deferred tax assets that rely on future profitability arising from temporary differences (net of related tax liability)		76,167			122,634		This item does not agree with the amount reported on the consolidated balance sheet due to offsetting of assets and liabilities.
21	Amount exceeding the 10% threshold on specified items		—			—
25	Amount exceeding the 15% threshold on specified items		—			—
75	Deferred tax assets arising from temporary differences that are below the thresholds for deduction (before risk weighting)		76,167			122,634



5. Deferred gains or losses on derivatives under hedge accounting

(1) Consolidated balance sheet

		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2015		As of September 30, 2016		Remarks
5	Deferred gains or losses on hedges		59,105		167,078

(2) Composition of capital

		(Millions of yen)
Basel III template	Composition of capital disclosure	As of September 30, 2015		As of September 30, 2016		Remarks
11	Deferred gains or losses on derivatives under hedge accounting		59,105		167,078
6. Items associated with investments in the capital of financial institutions (1) Consolidated balance sheet
	Consolidated balance sheet items	(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2015		As of September 30, 2016		Remarks
6-a	Trading assets		11,565,875		12,511,953	Including trading account securities and derivatives for trading assets
6-b	Securities		39,996,490		32,705,104
6-c	Loans and bills discounted		74,276,839		73,030,669	Including subordinated loans
6-d	Derivatives other than for trading assets		2,958,859		2,957,197
6-e	Other assets		3,537,663		4,272,085	Including money invested
6-f	Trading liabilities		8,964,612		9,878,751	Including trading account securities sold
6-g	Derivatives other than for trading liabilities		2,653,017		2,001,471

(2) Composition of capital

	Composition of capital disclosure	(Millions of yen)
Basel III template	Composition of capital disclosure	As of September 30, 2015		As of September 30, 2016		Remarks
	Investments in own capital instruments		3,325		3,006
16	Common equity Tier 1 capital		2,325		2,657
37	Additional Tier 1 capital		—		—
52	Tier 2 capital		1,000		348
	Reciprocal cross-holdings in the capital of banking, financial and insurance entities		—		—
17	Common equity Tier 1 capital		—		—
38	Additional Tier 1 capital		—		—
53	Tier 2 capital		—		—
	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)		984,712		737,403
18	Common equity Tier 1 capital		195,883		41,097
39	Additional Tier 1 capital		442		110
54	Tier 2 capital		118,664		19,236
72	Non-significant investments in the capital of other financials that are below the thresholds for deduction (before risk weighting)		669,722		676,959
	Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions		298,315		264,422
19	Amount exceeding the 10% threshold on specified items		—		—
23	Amount exceeding the 15% threshold on specified items		—		—
40	Additional Tier 1 capital		145,926		147,000
55	Tier 2 capital		—		—
73	Significant investments in the common stock of financials that are below the thresholds for deduction (before risk weighting)		152,389		117,422

7. Non-controlling Interests

(1) Consolidated balance sheet

Consolidated balance sheet items

(Millions of yen)

Ref.

As of September 30,
2015

As of September 30,
2016

Remarks

Non-controlling Interests

1,186,094

714,572

(2) Composition of capital

Composition of capital disclosure

(Millions of yen)

Basel III
template

As of September 30,
2015

As of September 30,
2016

Remarks

Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)

11,789

14,954