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 May 2013

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-1, Marunouchi 2-chome

Chiyoda-ku, Tokyo 100-8333

Japan

(Address of principal executive office)

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

Form 20-F  x    Form 40-F  ¨

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

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

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

Yes  ¨    No  x

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

 

 

 

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SIGNATURES

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

 

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For Immediate Release:		May 15, 2013

 

		Financial Statements for Fiscal 2012 <Under Japanese GAAP>

 

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

 

Stock Code Number (Japan):		8411
Stock Exchanges (Japan):		Tokyo Stock Exchange (First Section), Osaka Securities Exchange (First Section)
URL:		http://www.mizuho-fg.co.jp/english/
Representative:		Yasuhiro Sato		President & CEO
For Inquiry:		Yutaka Ueki		General Manager of Accounting
Phone:		+81-3-5224-2030

Ordinary General Meeting of Shareholders (scheduled):		June 25, 2013
Filing of Yuka Shoken Hokokusho to the Kanto Local				Commencement of Dividend Payment (scheduled):		June 25, 2013
Finance Bureau (scheduled):		June 26, 2013		Trading Accounts:		Established
Supplementary Materials on Annual Results:		Attached
IR Conference on Annual Results:		Scheduled

Amounts less than one million yen are rounded down.

1. Financial Highlights for Fiscal 2012 (for the fiscal year ended March 31, 2013)

(1) Consolidated Results of Operations

 

		(%: Changes from the previous fiscal year)
		Ordinary Income								Ordinary Profits								Net Income
		¥ million				%				¥ million				%				¥ million				%
Fiscal 2012			2,913,005				7.2				750,376				15.6				560,516				15.6
Fiscal 2011			2,715,674				(0.0	)			648,561				10.2				484,519				17.2

 

Note:		Comprehensive Income: Fiscal 2012: ¥1,270,809 million, 102.4%; Fiscal 2011: ¥627,584 million, 135.3%

 

		Net Income per Share of Common Stock				Diluted Net Income per Share of Common Stock				Net Income on Own Capital				Ordinary Profits to Total Assets				Ordinary Profits to Ordinary Income
		¥				¥				%				%				%
Fiscal 2012			22.96				22.05				10.9				0.4				25.7
Fiscal 2011			20.62				19.75				11.3				0.3				23.8

 

Reference:		Equity in Income from Investments in Affiliates: Fiscal 2012: ¥(11,141) million; Fiscal 2011: ¥2,689 million

(2) Consolidated Financial Conditions

 

		Total Assets				Total Net Assets				Own Capital Ratio				Total Net Assets per Share of Common Stock
		¥ million				¥ million				%				¥
Fiscal 2012			177,411,062				7,736,230				3.3				229.70
Fiscal 2011			165,360,501				6,869,295				2.9				187.19

 

Reference:		Own Capital: As of March 31, 2013: ¥5,927,135 million; As of March 31, 2012: ¥4,909,437 million

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

(3) Conditions of Consolidated Cash Flows

 

		Cash Flows from Operating Activities				Cash Flows from Investing Activities				Cash Flows from Financing Activities				Cash and Cash Equivalents at the end of the fiscal year
		¥ million				¥ million				¥ million				¥ million
Fiscal 2012			5,858,617				(749,691	)			(283,872	)			11,347,537
Fiscal 2011			4,163,027				(6,175,676	)			(680,652	)			6,483,138

2. Cash Dividends for Shareholders of Common Stock

 

		Annual Cash Dividends per Share																				Total Cash Dividends (Total)				Dividends Pay-out Ratio (Consolidated basis)				Dividends on Net Assets (Consolidated basis)
(Record Date)		First quarter-end				Second quarter-end				Third quarter-end				Fiscal year-end				Annual
		¥				¥				¥				¥				¥				¥ million				%				%
Fiscal 2011			—				3.00				—				3.00				6.00				144,088				29.0				3.2
Fiscal 2012			—				3.00				—				3.00				6.00				144,542				26.1				2.8
Fiscal 2013 (estimate)			—				3.00				—				3.00				6.00								29.4

Note: Please refer to Cash Dividends for Shareholders of Classified Stock (unlisted) mentioned later, the rights of which are different from those of common stock.

3. Consolidated Earnings Estimates for Fiscal 2013 (for the fiscal year ending March 31, 2014)

 

		(%: Changes from the corresponding period of the previous fiscal year)
						Net Income								Net Income per Share of Common Stock
						¥ million				%				¥
1H F2013							—				—				—
Fiscal 2013							500,000				(10.7	)			20.38

 

Note:		The number of shares of common stock used in the above calculation is based on the number of shares of common stock as of March 31, 2013.
		It does not take into account any increase in the number of outstanding shares of common stock due to requests for acquisition (conversion) of the Eleventh Series Class XI Preferred Stock.

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Mizuho Financial Group, Inc.

 

øNotes

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

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

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

‚ Changes in accounting policies other than  above: No

ƒ Changes in accounting estimates: Yes

„ Restatements: No

 

(Note)		As changes during this period correspond to changes in accounting policies which are difficult to distinguish from changes in accounting estimates, “Changes in accounting policies due to revisions of accounting standards, etc.” and “Changes in accounting estimates” are presented with “Yes”. For more information, please refer to “5. Depreciation of Fixed Assets (Changes in accounting policies which are difficult to distinguish from changes in accounting estimates)” on page 1-26 of the attachment.

(3) Issued Shares of Common Stock

 

(Reference) Non-Consolidated Financial Statements for Fiscal 2012

1. Financial Highlights for Fiscal 2012 (for the fiscal year ended March 31, 2013)

(1) Non-Consolidated Results of Operations

 

(%: Changes from the previous fiscal year)
		Operating Income								Operating Profits								Ordinary Profits								Net Income
		¥ million				%				¥ million				%				¥ million				%				¥ million				%
Fiscal 2012			262,180				593.9				241,105				—				235,938				—				241,337				—
Fiscal 2011			37,781				(18.6	)			16,521				(38.2	)			10,417				(44.4	)			10,217				(44.8	)

 

		Net Income per Share of Common Stock				Diluted Net Income per Share of Common Stock
		¥				¥
Fiscal 2012			9.69				9.46
Fiscal 2011			0.06				0.06

(2) Non-Consolidated Financial Conditions

 

		Total Assets				Total Net Assets				Own Capital Ratio				Total Net Assets per Share of Common Stock
		¥ million				¥ million				%				¥
Fiscal 2012			6,202,149				4,788,923				77.1				182.43
Fiscal 2011			6,128,424				4,688,334				76.4				177.82

 

Reference:		Own Capital: As of March 31, 2013: ¥4,786,236 million; As of March 31, 2012: ¥4,686,175 million
		Own Capital Ratio stated above was not calculated based on the public notice of Own Capital Ratio.

(Presentation of Implementation Status of Review Procedure)

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

 

 

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

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

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

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

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

 

 

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Mizuho Financial Group, Inc.

 

Cash Dividends for Shareholders of Classified Stock

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

 

		Annual Cash Dividends per Share																				Total Cash Dividends (Annual)
(Record Date)		First quarter-end				Second quarter-end				Third quarter-end				Fiscal year-end				Annual
		¥				¥				¥				¥				¥				¥ million
Eleventh Series Class XI Preferred Stock
Fiscal 2011			—				10.00				—				10.00				20.00				7,571
Fiscal 2012			—				10.00				—				10.00				20.00				7,120
Fiscal 2013 (estimate)			—				10.00				—				10.00				20.00
Thirteenth Series Class XIII Preferred Stock
Fiscal 2011			—				15.00				—				15.00				30.00				1,100
Fiscal 2012			—				15.00				—				15.00				30.00				1,100
Fiscal 2013 (estimate)			—				15.00				—				15.00				30.00

(Note) Mizuho Financial Group, Inc. (“MHFG”) has announced today, as to the Thirteenth Series Class XIII Preferred Stock, subject to a resolution necessary for acquisition at the eleventh (11th) ordinary general meeting of shareholders scheduled to be held on June 25, 2013, that MHFG will acquire the relevant stock as of July 11, 2013 in accordance with the provisions of Article 19 of the Company’s Articles of Incorporation and Article 14 of the Terms and Conditions of the Thirteenth Series Class XIII Preferred Stock, and cancel all of the relevant stock on the same day subject to the foregoing acquisition. If the relevant stock is acquired and cancelled, cash dividend payment of the Thirteenth Series Class XIII will not be made.

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Mizuho Financial Group, Inc.

 

m Contents of Attachment

 

1.		Consolidated Results of Operations and Financial Conditions			p.1-3
		(1) Analysis of Results of Operations			p.1-3
		(2) Analysis of Financial Conditions			p.1-4
		(3) Basic Policy on Profit Distribution, Proposed Dividend Payment for Fiscal 2012 and Forecast Dividend Payment for   Fiscal 2013			p.1-4
2.		Organization Structure of Mizuho Financial Group			p.1-5
3.		Management Policy			p.1-8
		(1) Principal Management Policy			p.1-8
		(2) Management’s Medium/Long-term Targets and Issues to be Resolved			p.1-8
4.		Consolidated Financial Statements and Others			p.1-13
		(1) Consolidated Balance Sheets			p.1-13
		(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			p.1-15
		(3) Consolidated Statements of Changes in Net Assets			p.1-18
		(4) Consolidated Statements of Cash Flows			p.1-21
		(5) Matters Related to the Assumption of Going Concern			p.1-23
		(6) Fundamental and Important Matters for the Preparation of Consolidated Financial Statements			p.1-23
		(7) Issued But Not Yet Adopted Accounting Standard and Others			p.1-29
		(8) Change in Presentation of Financial Statements			p.1-30
		(9) Notes			p.1-31
		(Notes to Consolidated Balance Sheet)
		(Notes to Consolidated Statement of Income)
		(Notes to Consolidated Statement of Comprehensive Income)
		(Notes to Consolidated Statement of Changes in Net Assets)
		(Notes to Consolidated Statement of Cash Flows)
		(Financial Instruments)
		(Securities)
		(Notes to Money Held in Trust)
		(Business Segment Information)
		(Matters Related to Combination and Others)
		(Per Share Information)
		(Subsequent Events)

 

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Mizuho Financial Group, Inc.

 

5.		Non-Consolidated Financial Statements			p.1-49
		(1) Non-Consolidated Balance Sheets			p.1-49
		(2) Non-Consolidated Statements of Income			p.1-51
		(3) Non-Consolidated Statements of Changes in Net Assets			p.1-52
		(4) Note for the Assumption of Going Concern			p.1-53

[Note to XBRL]

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

A MHFG IR conference for institutional investors and analysts is scheduled for May 22, 2013 (Wednesday). The IR conference presentation materials and audio archive will be available for use by individual investors in the IR Information section of the Mizuho Financial Group HP immediately after the conference.

 

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Mizuho Financial Group, Inc.

 

1. CONSOLIDATED RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS

(1) Analysis of Results of Operations

Reviewing the economic environment over the fiscal year ended March 31, 2013, despite the continuing weakness in the recovery of the global economy and the further slowdown of the economy being felt particularly in Europe and China last summer, there are visible signs of recovery as concerns over the Euro region’s debt problems have been eased to some degree.

In the United States, gradual recovery in the economy continues on the basis of increased consumer spending due to an improvement in employment conditions among other things. On the other hand, while the expiration of the major tax-relief was avoided, the risk of a slackening in the economy remains with the budget sequestration set in motion in March 2013 as part of a large-scale austerity measure known as the “fiscal cliff”. In Europe, the economies of the region are gradually slowing down, with the fiscal problems experienced by certain countries impacting the real economy. Although the concerns in the financial markets have eased to some degree due to measures such as the establishment of the European Stability Mechanism (ESM), the circumstances in which a reduced budget may result in an economic slowdown or political instability are expected to continue, particularly among southern European countries, and it is difficult to predict the effects of the slow down of the European economy on the global economy. In Asia, although the economies of the region as a whole are slowing from the impact of, among other things, the decline in exports to Europe, China is following a course of gradual economic recovery mainly due to increased public investments, and the trend is affecting other Asian countries.

In Japan, although the economy was not showing much improvement with decreased exports and production, among other things, mainly due to the slowdown in overseas economies, there are visible signs of recovery. As for the future direction of the economy, while there are causes for concern, such as the downturn in overseas economies, posing a risk to act as a drag on economic growth, there are prospects for the economy to be back on course for recovery due to the improved export situation following the depreciation of the yen against other currencies and the effects of economic measures and monetary policies, among other things.

Under the foregoing business environment, we recorded Consolidated Gross Profits of ¥2,171.7 billion for fiscal 2012, increasing by ¥168.6 billion from the end of the previous fiscal year.

Gross Profits of aggregate figures for Mizuho Bank, Mizuho Corporate Bank, and Mizuho Trust & Banking on a non-consolidated basis (the 3 Banks) increased by ¥78.5 billion on a year-on-year basis to ¥1,686.1 billion. Total income from Customer Groups including domestic business increased by ¥26.4 billion, with an increase in income from overseas business, particularly from Asia. Income from Trading and Others increased by ¥52.2 billion. General and Administrative Expenses of the 3 Banks decreased by ¥39.6 billion on a year-on-year basis to ¥839.7 billion.

Consolidated Gross Profits (Net Operating Revenues) of Mizuho Securities (simple aggregate figures for Mizuho Investors Securities (before the merger with Mizuho Securities conducted on January 4, 2013) and Mizuho Securities) increased by ¥80.9 billion on a year-on-year basis and Selling, General and Administrative Expenses decreased by ¥1.9 billion on a year-on-year basis.

As a result, Consolidated Net Business Profits increased by ¥193.0 billion on a year-on-year basis to ¥912.1 billion.

Consolidated Credit-related Costs amounted to ¥111.8 billion with a year-on-year change of ¥139.5 billion.

Consolidated Net Gains (Losses) related to Stocks decreased by ¥44.7 billion on a year-on-year basis to net losses of ¥82.9 billion, mainly due to recording impairment losses for certain stocks reflecting a decline in stock prices.

Mizuho Securities (simple aggregate figures for Mizuho Investors Securities (before the merger with Mizuho Securities conducted on January 4, 2013) and Mizuho Securities) returned to the black for the first time since fiscal 2009, with Consolidated Net Income of ¥25.9 billion.

As a result, Consolidated Net Income increased by ¥75.9 billion on a year-on-year basis to ¥560.5 billion.

This result shows a 112% achievement against the earnings plan for fiscal 2012 of ¥500.0 billion.

As for earnings estimates for fiscal 2013, we estimate Ordinary Profits of ¥740.0 billion and Net Income of ¥500.0 billion on a consolidated basis.

 

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Mizuho Financial Group, Inc.

 

(2) Analysis of Financial Conditions

Consolidated total assets as of March 31, 2013 amounted to ¥177,411.0 billion, increasing by ¥12,050.5 billion from the end of the previous fiscal year, mainly due to increases in Cash and Due from Banks.

Securities were ¥53,472.3 billion, increasing by ¥2,079.5 billion from the end of the previous fiscal year.

Loans and Bills Discounted amounted to ¥67,536.8 billion, increasing by ¥3,736.3 billion from the end of the previous fiscal year.

Deposits amounted to ¥84,241.9 billion, increasing by ¥5,430.0 billion from the end of the previous fiscal year.

Net Assets amounted to ¥7,736.2 billion, increasing by ¥866.9 billion from the end of the previous fiscal year. Shareholders’ Equity was ¥5,174.6 billion, Accumulated Other Comprehensive Income was ¥752.5 billion and Minority Interests was ¥1,806.4 billion.

Net Cash Provided in Operating Activities was ¥5,858.6 billion mainly due to increased Deposits. Net Cash Provided (Used in) by Investing Activities was ¥(749.6) billion mainly due to acquisition of securities, and Net Cash Provided in Financing Activities was ¥(283.8) billion mainly due to repayments to minority shareholders. As a result, Cash and Cash Equivalents as of March 31, 2013 was ¥11,347.5 billion.

(3) Basic Policy on Profit Distribution, Proposed Dividend Payment for Fiscal 2012 and Forecast Dividend Payment for Fiscal 2013

We continue to pursue “disciplined capital management” policy which maintains the optimum balance between “strengthening of stable capital base” and “steady returns to shareholders.”

Based on this policy, in consideration of our consolidated financial results, we plan to make cash dividend payments of common stock for the end of the fiscal year ending March 31, 2013 as follows. We also plan to make cash dividend payments of preferred stock for the end of the fiscal year ending March 31, 2013 as prescribed.

 

Common Stock		¥	3 per share				(as predicted in Dividends Estimates	)
Annual cash dividends including interim dividends		¥	6 per share
Eleventh Series Class XI		¥	10 per share
Annual cash dividends including interim dividends		¥	20 per share
Thirteenth Series Class XIII		¥	15 per share
Annual cash dividends including interim dividends		¥	30 per share

As for the dividend forecast of common stock for fiscal 2013, in consideration of the balance between “strengthening of stable capital base” and “steady returns to shareholders”, we plan to make cash dividend payments of ¥6 per share of common stock. As for the dividend forecast of preferred stock of fiscal 2013, we plan to make cash dividend payments as prescribed. We intend to continue payments of cash dividends at the interim period to return profits to shareholders in a timely way.

 

(Dividends Estimates for Fiscal 2013)
Common Stock		Cash Dividends per Share		¥	6
		Interim Dividends		¥	3
Eleventh Series Class XI		Cash Dividends per Share		¥	20
		Interim Dividends		¥	10
Thirteenth Series Class XIII		Cash Dividends per Share		¥	30
		Interim Dividends		¥	15

(Note) Mizuho Financial Group, Inc. (“MHFG”) has announced today, as to the Thirteenth Series Class XIII Preferred Stock, subject to a resolution necessary for acquisition at the eleventh (11^th) ordinary general meeting of shareholders scheduled to be held on June 25, 2013, that MHFG will acquire the relevant stock as of July 11, 2013 in accordance with the provisions of Article 19 of the Company’s Articles of Incorporation and Article 14 of the Terms and Conditions of the Thirteenth Series Class XIII Preferred Stock, and cancel all of the relevant stock on the same day subject to the foregoing acquisition. If the relevant stock is acquired and cancelled, cash dividend payment of the Thirteenth Series Class XIII will not be made.

The above dividend estimate is based on information that is currently available to us and on assumptions regarding factors that have an influence on future results of operations. Actual results may differ materially from these estimates. Please refer to “forward-looking statements” on the second page of this immediate release.

 

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Mizuho Financial Group, Inc.

 

2. ORGANIZATION STRUCTURE OF MIZUHO FINANCIAL GROUP

Mizuho Financial Group (the “Group”) is composed of Mizuho Financial Group, Inc. (“MHFG”) and its affiliates. The Group provides principally banking business, together with securities business, trust business, and other financial services.

 

<<MHFG>>		(as of March 31, 2013)

 

 

Note	: DIAM Co., Ltd. is an affiliate of MHFG.

 

 

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Mizuho Financial Group, Inc.

 

We conducted a transformation into a new group capital structure and a new group management structure as of April 1, 2013.

 

<<MHFG>>		(as of April 1, 2013)

 

 

Note	: DIAM Co., Ltd. is an affiliate of MHFG.

 

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Mizuho Financial Group, Inc.

 

Of the major domestic subsidiaries and affiliates, the following company is listed on domestic stock exchanges:

 

Company Name		Location		Main Business		Ownership Percentage (%)				Listed Stock Exchanges
Orient Corporation		Chiyoda-Ku, Tokyo		Credit Business			24.6 24.6			Tokyo Stock Exchange (First Section)

Italic figures of Ownership Percentage denote percentage of interest held by subsidiaries.

 

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Mizuho Financial Group, Inc.

 

3. MANAGEMENT POLICY

(1) Principal Management Policy

The Group established a new Mizuho Corporate Identity, as fundamental mindsets underlying all of its corporate activities, which is comprised of Corporate Philosophy, Vision, and the Mizuho Values. Sharing the new group corporate identity and working as one group, the Group will operate and promote business, bringing fruitfulness for each customer and contributing to the prosperity of economies and societies.

1. Corporate Philosophy: Mizuho’s fundamental approach to business activities

 

2. Vision: Mizuho’s vision for the future

 

3. The Mizuho Values: The shared values and principles of Mizuho’s people

 

(2) Management’s Medium/Long-term Targets and Issues to be Resolved

The Group started a new medium-term business plan for the three years from fiscal year 2013. This proactive business plan has been named the “One MIZUHO New Frontier Plan—Stepping up to the Next Challenge—,” and it aims to launch the new Mizuho toward the “new frontier” of the next generation of finance, in response to structural and regulatory changes in the economy and society both in Japan and overseas. As part of this plan, the Group has developed five basic policies based on Mizuho’s vision for the Group’s future, the necessary elements for the new frontier of finance, and the Group’s future direction based on an analysis of Mizuho’s current situation, and also, adding more detail to these five basic policies, we have developed ten basic strategies in terms of business strategy and management foundations as follows:

 

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Mizuho Financial Group, Inc.

 

[Mizuho’s Vision]

 

[Five Basic Policies]

 

[Ten Basic Strategies]

 

 

In addition, in April 2013, the Group turned MHSC, which had been a consolidated subsidiary of MHFG, into a directly-held subsidiary of MHFG, and moved to a new group capital structure which places banking, trust banking, securities and other major group companies under the direct control of the holding company. The merger between MHBK and MHCB is scheduled for July 2013, on the condition that, among other things, permission is obtained from the relevant authorities in Japan. This will lead to a move to a single bank and single securities structure.

Further, from April 2013, for the purpose of promoting timely and unified group strategic planning under the strong governance of the holding company, in addition to the strengthening of group governance, the Group moved to a new group operational structure. Specifically, the executive officers in charge of corporate planning and management at the holding company have been serving in five-way concurrent positions at MHFG, MHBK, MHCB, MHTB and MHSC, and also, we have clarified their positioning as the group chief officers. In addition, the holding company established ten business units and head-office coordination divisions to determine strategies and initiatives across the group-wide banking, trust banking, securities and other business areas, based on the ten business units across MHBK and MHCB under the substantive one bank structure.

We also established at the holding company five group strategy conferences concerning the strategies for retail (personal), wholesale (corporate), international (overseas), asset management, and markets, as forums to comprehensively deliberate on important matters in terms of group business strategy among units. With the establishment of these strategy conferences, the existing three global groups were abolished.

 

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Mizuho Financial Group, Inc.

 

Group Structure of Mizuho

 

 

•	Decisions have been made to conduct a merger between Mizuho Bank, Ltd. and Mizuho Corporate Bank, Ltd. on the assumption that, among other things, permission is obtained from the relevant authorities in Japan.

(Effective Date of Merger: July 1, 2013)

With the fixing of these structures, the Group will continue to build the most effective and advanced group management structure. The Group will also continue to consider the possibility of consolidation that includes MHTB, with the new MHBK, after the merger between MHBK and MHCB.

New Group Operational Structure of Mizuho

 

 

*	In principle, group companies other than the above belong to each segment depending on the characteristics of their businesses.

*

The five group strategy conferences (Group Retail Strategy Conference, Group Wholesale Strategy Conference, Group International Strategy Conference, Group Asset Management Strategy Conference, and Group Markets Strategy Conference) are established at the holding company as the forums to comprehensively deliberate on important matters regarding group business strategy among units.

 

1-10

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Mizuho Financial Group, Inc.

 

[Business Strategy]

Based on the ten basic strategies under the new medium-term business plan, the Group will strengthen integrated financial services by unifying banking, trust banking and securities functions to respond to finely delineated corporate and personal banking segments.

With respect to business with personal customers, the Group will provide a wide range of financial products ranging from loans to investments responding to personal customers’ life cycles and aspirations. The Group will also make an effort to build advanced yet simple, convenient and optimal next-generation retail services and to provide customers with easy to understand financial services. In addition, for business owners, etc., the Group will provide business as well as asset management services for both of their corporate and personal needs.

With respect to business with corporate customers, the Group will provide advice on customers’ management issues such as business strategy and capital structure as well as group-wide appropriate financial solutions that cross over each of the product lines of the Group. In addition, while making proposals based on global industry knowledge and funding for growth, the Group will also focus on supporting customers’ overseas expansion. Moreover, the Group will cooperate with customers among regional financial institutions as their “area partner” with an aim to invigorate the regions.

With respect to overseas business, the Group will seamlessly develop a wide range of sophisticated financial services based in Asia and Japan. The Group will also seek to build medium to long-term relationships with customers, not merely those developed through loan transactions, but also those backed by the Group’s industry knowledge and ability to provide products. In addition, the Group will strengthen the overseas transaction business so as to be capable to respond to the accelerating global capital and trade flows and devote itself to providing distinctive settlement services especially in Asia.

With respect to asset management business, the Group will provide customers with optimum asset portfolios to meet their needs as well as innovative products supported by advanced financial knowledge and high-level financial technology.

With respect to markets business, the Group will make efforts to strengthen its capability to respond to customer needs by developing global sales and trading activities across group-wide banking, trust banking and securities functions.

[Business Management, Management Foundations, etc.]

The Group will also strengthen its business management, management foundations, etc. based on the ten basic strategies under the new medium-term business plan.

While making efforts to strengthen stable financial foundations based on abundant liquidity and appropriate capital levels, with respect to capital management, the Group will continue to pursue a disciplined capital policy by appropriately balancing stable capital enhancement and steady returns to shareholders. Under the new capital regulations, including the framework to identify global systemically important financial institutions (G-SIFIs), the Group believes it will be able to sufficiently meet the new capital regulations mainly by accumulating retained earnings and improving asset efficiency through its various initiatives to be implemented under the new medium-term business plan.

In its establishment of the optimal management foundations to support its business strategy, the Group aims to allocate and develop human resources on a group-wide basis and optimize business operations, and the Group will also strive to secure stable and accurate system operations as well as to establish a solid system infrastructure.

In addition, the Group will endeavor to establish a strong group governance structure and, in response to global business development and collaboration among the banking, trust and securities functions, enhance risk management and compliance management systems.

Furthermore, as a part of its initiatives to create a common culture throughout the Group, the Group has established the new Mizuho corporate identity. The Group has also reviewed its brand strategy from the perspective of building the optimal brand for the new Mizuho and established a new brand slogan, “One MIZUHO: Building the future with you.”

 

1-11

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Mizuho Financial Group, Inc.

 

The Group will make an effort to have the new Mizuho corporate identity embedded into the Group. Additionally, the Group will share with management and employees of the Group the determination represented by the brand slogan. In the spirit of One MIZUHO, the Group strongly recognizes its social responsibility and the importance of its identity as Mizuho. By making steady progress in pursuing the new group strategy, the Group will further promote its corporate values.

 

 

1-12

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Mizuho Financial Group, Inc.

 

4. CONSOLIDATED FINANCIAL STATEMENTS AND OTHERS

(1) CONSOLIDATED BALANCE SHEETS

 

		Millions of yen
		As of March 31, 2012				As of March 31, 2013
Assets
Cash and Due from Banks		¥	7,278,477			¥	*8				12,333,997
Call Loans and Bills Purchased			249,032								530,541
Receivables under Resale Agreements			7,123,397								9,025,049
Guarantee Deposits Paid under Securities Borrowing Transactions			6,406,409								5,543,914
Other Debt Purchased			1,542,062								1,279,964
Trading Assets			14,075,005				*8				14,076,928
Money Held in Trust			71,414								96,014
Securities			51,392,878				*1,*8,*16				53,472,399
Loans and Bills Discounted			63,800,509				*3,*4,*5,*6,*7,*8,*9				67,536,882
Foreign Exchange Assets			1,016,665				*7				1,412,601
Derivatives other than for Trading Assets			4,474,729								4,475,055
Other Assets			2,871,153				*8,*17				2,599,553
Tangible Fixed Assets			923,907				*11,*12				901,085
Buildings			325,804								315,268
Land			469,983				*10				463,851
Lease Assets			14,185								17,373
Construction in Progress			11,575								23,875
Other Tangible Fixed Assets			102,359								80,716
Intangible Fixed Assets			485,995								477,546
Software			216,066								210,244
Goodwill			60,592								57,686
Lease Assets			2,952								4,522
Other Intangible Fixed Assets			206,383								205,093
Deferred Tax Assets			359,987								165,299
Customers’ Liabilities for Acceptances and Guarantees			3,980,644								4,224,259
Reserves for Possible Losses on Loans			(691,760	)							(739,990	)
Reserve for Possible Losses on Investments			(10	)							(40	)
Total Assets		¥	165,360,501			¥					177,411,062

 

1-13

---

Mizuho Financial Group, Inc.

 

		Millions of yen
		As of March 31, 2012				As of March 31, 2013
Liabilities
Deposits		¥	78,811,909			¥	*8				84,241,955
Negotiable Certificates of Deposit			11,824,746								15,326,781
Call Money and Bills Sold			5,668,929				*8				6,126,424
Payables under Repurchase Agreements			12,455,152				*8				17,451,041
Guarantee Deposits Received under Securities Lending Transactions			7,710,373				*8				11,325,439
Commercial Paper			362,694								472,718
Trading Liabilities			8,215,668								7,686,442
Borrowed Money			14,763,870				*8,*13				7,699,440
Foreign Exchange Liabilities			233,184								182,473
Short-term Bonds			538,198								477,400
Bonds and Notes			4,783,180				*14				5,141,746
Due to Trust Accounts			1,003,129								1,120,696
Derivatives other than for Trading Liabilities			4,288,356								4,404,754
Other Liabilities			3,610,067								3,501,064
Reserve for Bonus Payments			38,577								45,754
Reserve for Employee Retirement Benefits			36,053				*17				38,632
Reserve for Director and Corporate Auditor Retirement Benefits			2,256								1,612
Reserve for Possible Losses on Sales of Loans			8								48
Reserve for Contingencies			24,559								16,859
Reserve for Reimbursement of Deposits			15,769								16,464
Reserve for Reimbursement of Debentures			20,193								35,417
Reserves under Special Laws			1,221								1,203
Deferred Tax Liabilities			19,219								54,221
Deferred Tax Liabilities for Revaluation Reserve for Land			83,243				*10				81,977
Acceptances and Guarantees			3,980,644								4,224,259
Total Liabilities			158,491,206								169,674,832
Net Assets
Common Stock and Preferred Stock			2,254,972								2,254,972
Capital Surplus			1,109,783								1,109,508
Retained Earnings			1,405,066								1,814,782
Treasury Stock			(7,074	)							(4,661	)
Total Shareholders’ Equity			4,762,749								5,174,601
Net Unrealized Gains (Losses) on Other Securities			37,857								615,883
Deferred Gains or Losses on Hedges			67,045								84,634
Revaluation Reserve for Land			144,635				*10				142,345
Foreign Currency Translation Adjustments			(102,850	)							(90,329	)
Total Accumulated Other Comprehensive Income			146,687								752,533
Stock Acquisition Rights			2,158								2,687
Minority Interests			1,957,699								1,806,407
Total Net Assets			6,869,295								7,736,230
Total Liabilities and Net Assets		¥	165,360,501			¥					177,411,062

 

1-14

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Mizuho Financial Group, Inc.

 

(2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

[CONSOLIDATED STATEMENTS OF INCOME]

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Ordinary Income		¥	2,715,674			¥					2,913,005
Interest Income			1,423,564								1,421,609
Interest on Loans and Bills Discounted			888,489								917,263
Interest and Dividends on Securities			348,453								323,901
Interest on Call Loans and Bills Purchased			6,580								5,548
Interest on Receivables under Resale Agreements			30,860								52,394
Interest on Securities Borrowing Transactions			9,922								10,647
Interest on Due from Banks			20,665								21,527
Other Interest Income			118,591								90,326
Fiduciary Income			49,014								48,506
Fee and Commission Income			566,888								617,681
Trading Income			150,317								215,033
Other Operating Income			355,745								413,157
Other Ordinary Income			170,143								197,015
Gains on Reversal of Reserves for Possible Losses on Loans			35,329								—
Recovery of Written-off Claims			39,384								26,914
Other			95,429				*1				170,100
Ordinary Expenses			2,067,112								2,162,628
Interest Expenses			335,223								345,710
Interest on Deposits			102,481								96,970
Interest on Negotiable Certificates of Deposit			27,375								32,196
Interest on Debentures			384								—
Interest on Call Money and Bills Sold			8,628								7,865
Interest on Payables under Repurchase Agreements			33,912								53,667
Interest on Securities Lending Transactions			14,407								19,065
Interest on Commercial Paper			874								1,676
Interest on Borrowed Money			35,046								29,796
Interest on Short-term Bonds			2,091								2,053
Interest on Bonds and Notes			72,753								71,148
Other Interest Expenses			37,266								31,269
Fee and Commission Expenses			107,954								110,303
Other Operating Expenses			99,277								88,258
General and Administrative Expenses			1,283,847								1,244,647
Other Ordinary Expenses			240,809								373,708
Provision for Reserves for Possible Losses on Loans			—								78,721
Other			240,809				*2				294,986
Ordinary Profits		¥	648,561			¥					750,376

 

1-15

---

Mizuho Financial Group, Inc.

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Extraordinary Gains		¥	92,881			¥					1,047
Gains on Disposition of Tangible Fixed Assets			1,540								1,032
Gains on Negative Goodwill Incurred			91,180								—
Reversal of Reserve for Contingent Liabilities from Financial Instruments and Exchange			160								15
Extraordinary Losses			24,993								33,591
Losses on Disposition of Tangible Fixed Assets			6,849								7,263
Losses on Impairment of Fixed Assets			7,067								11,912
Other Extraordinary Losses			11,076				*3				14,415
Income before Income Taxes and Minority Interests			716,449								717,832
Income Taxes:
Current			55,560								64,559
Refund of Income Taxes			(228	)							(14,158	)
Deferred			97,494								7,461
Total Income Taxes			152,827								57,862
Income before Minority Interests			563,621								659,970
Minority Interests in Net Income			79,102								99,454
Net Income		¥	484,519			¥					560,516

 

1-16

---

Mizuho Financial Group, Inc.

 

[CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME]

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Income before Minority Interests		¥	563,621			¥					659,970
Other Comprehensive Income			63,962				*1				610,839
Net Unrealized Gains (Losses) on Other Securities			51,913								575,930
Deferred Gains or Losses on Hedges			(1,560	)							17,353
Revaluation Reserve for Land			11,821								(41	)
Foreign Currency Translation Adjustments			(1,106	)							4,731
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method			2,894								12,864
Comprehensive Income			627,584								1,270,809
Comprehensive Income Attributable to Owners of the Parent			555,194								1,168,611
Comprehensive Income Attributable to Minority Interests			72,390								102,198

 

1-17

---

Mizuho Financial Group, Inc.

 

(3) CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Shareholders’ Equity
Common Stock and Preferred Stock
Balance as of the beginning of the period		¥	2,181,375			¥	2,254,972
Changes during the period
Issuance of New Shares			350				—
Increase in Stock due to Share Exchange			73,247				—
Total Changes during the period			73,597				—
Balance as of the end of the period			2,254,972				2,254,972
Capital Surplus
Balance as of the beginning of the period			937,680				1,109,783
Changes during the period
Issuance of New Shares			350				—
Increase in Stock due to Share Exchange			171,575				—
Disposition of Treasury Stock			178				(275	)
Total Changes during the period			172,103				(275	)
Balance as of the end of the period			1,109,783				1,109,508
Retained Earnings
Balance as of the beginning of the period			1,132,351				1,405,066
Changes during the period
Cash Dividends			(216,472	)			(152,694	)
Net Income			484,519				560,516
Disposition of Treasury Stock			(225	)			(355	)
Transfer from Revaluation Reserve for Land			4,893				2,249
Total Changes during the period			272,714				409,715
Balance as of the end of the period			1,405,066				1,814,782
Treasury Stock
Balance as of the beginning of the period			(3,196	)			(7,074	)
Changes during the period
Increase in Stock due to Share Exchange			(13,318	)			—
Repurchase of Treasury Stock			(2,560	)			(395	)
Disposition of Treasury Stock			12,001				2,807
Total Changes during the period			(3,877	)			2,412
Balance as of the end of the period		¥	(7,074	)			(4,661	)

 

1-18

---

Mizuho Financial Group, Inc.

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Total Shareholders’ Equity
Balance as of the beginning of the period		¥	4,248,209			¥	4,762,749
Changes during the period
Issuance of New Shares			701				—
Increase in Stock due to Share Exchange			231,504				—
Cash Dividends			(216,472	)			(152,694	)
Net Income			484,519				560,516
Repurchase of Treasury Stock			(2,560	)			(395	)
Disposition of Treasury Stock			11,953				2,176
Transfer from Revaluation Reserve for Land			4,893				2,249
Total Changes during the period			514,539				411,852
Balance as of the end of the period			4,762,749				5,174,601
Accumulated Other Comprehensive Income
Net Unrealized Gains (Losses) on Other Securities
Balance as of the beginning of the period			(21,648	)			37,857
Changes during the period
Net Changes in Items other than Shareholders’ Equity			59,505				578,026
Total Changes during the period			59,505				578,026
Balance as of the end of the period			37,857				615,883
Deferred Gains or Losses on Hedges
Balance as of the beginning of the period			68,769				67,045
Changes during the period
Net Changes in Items other than Shareholders’ Equity			(1,723	)			17,588
Total Changes during the period			(1,723	)			17,588
Balance as of the end of the period			67,045				84,634
Revaluation Reserve for Land
Balance as of the beginning of the period			137,707				144,635
Changes during the period
Net Changes in Items other than Shareholders’ Equity			6,928				(2,290	)
Total Changes during the period			6,928				(2,290	)
Balance as of the end of the period			144,635				142,345
Foreign Currency Translation Adjustments
Balance as of the beginning of the period			(103,921	)			(102,850	)
Changes during the period
Net Changes in Items other than Shareholders’ Equity			1,071				12,520
Total Changes during the period			1,071				12,520
Balance as of the end of the period		¥	(102,850	)		¥	(90,329	)

 

1-19

---

Mizuho Financial Group, Inc.

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Total Accumulated Other Comprehensive Income
Balance as of the beginning of the period		¥	80,906			¥	146,687
Changes during the period
Net Changes in Items other than Shareholders’ Equity			65,781				605,845
Total Changes during the period			65,781				605,845
Balance as of the end of the period			146,687				752,533
Stock Acquisition Rights
Balance as of the beginning of the period			2,754				2,158
Changes during the period
Net Changes in Items other than Shareholders’ Equity			(595	)			528
Total Changes during the period			(595	)			528
Balance as of the end of the period			2,158				2,687
Minority Interests
Balance as of the beginning of the period			2,292,128				1,957,699
Changes during the period
Net Changes in Items other than Shareholders’ Equity			(334,428	)			(151,292	)
Total Changes during the period			(334,428	)			(151,292	)
Balance as of the end of the period			1,957,699				1,806,407
Total Net Assets
Balance as of the beginning of the period			6,623,999				6,869,295
Changes during the period
Issuance of New Shares			701				—
Increase in Stock due to Share Exchange			231,504				—
Cash Dividends			(216,472	)			(152,694	)
Net Income			484,519				560,516
Repurchase of Treasury Stock			(2,560	)			(395	)
Disposition of Treasury Stock			11,953				2,176
Transfer from Revaluation Reserve for Land			4,893				2,249
Net Changes in Items other than Shareholders’ Equity			(269,243	)			455,082
Total Changes during the period			245,296				866,934
Balance as of the end of the period		¥	6,869,295			¥	7,736,230

 

1-20

---

Mizuho Financial Group, Inc.

 

(4) CONSOLIDATED STATEMENTS OF CASH FLOWS

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Cash Flow from Operating Activities
Income before Income Taxes and Minority Interests		¥	716,449			¥	717,832
Depreciation			165,436				154,147
Losses on Impairment of Fixed Assets			7,067				11,912
Amortization of Goodwill			2,802				3,405
Gains on Negative Goodwill Incurred			(91,180	)			—
Equity in Loss (Gain) from Investments in Affiliates			(2,689	)			11,141
Increase (Decrease) in Reserves for Possible Losses on Loans			(66,467	)			33,845
Increase (Decrease) in Reserve for Possible Losses on Investments			(14	)			30
Increase (Decrease) in Reserve for Possible Losses on Sales of Loans			(407	)			40
Increase (Decrease) in Reserve for Contingencies			9,486				(7,699	)
Increase (Decrease) in Reserve for Bonus Payments			(632	)			6,014
Increase (Decrease) in Reserve for Employee Retirement Benefits			482				2,355
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits			17				(648	)
Increase (Decrease) in Reserve for Reimbursement of Deposits			539				694
Increase (Decrease) in Reserve for Reimbursement of Debentures			6,849				15,224
Interest Income—accrual basis			(1,423,564	)			(1,421,609	)
Interest Expenses—accrual basis			335,223				345,710
Losses (Gains) on Securities			(121,258	)			(145,837	)
Losses (Gains) on Money Held in Trust			(6	)			(52	)
Foreign Exchange Losses (Gains)—net			104,847				(1,015,067	)
Losses (Gains) on Disposition of Fixed Assets			5,309				6,231
Losses (Gains) on Securities related to Employees’ Retirement Benefits Trust			1,416				—
Decrease (Increase) in Trading Assets			(639,202	)			380,193
Increase (Decrease) in Trading Liabilities			597,305				(756,195	)
Decrease (Increase) in Derivatives other than for Trading Assets			612,691				125,822
Increase (Decrease) in Derivatives other than for Trading Liabilities			(295,324	)			(25,229	)
Decrease (Increase) in Loans and Bills Discounted			(1,192,565	)			(2,452,446	)
Increase (Decrease) in Deposits			(296,970	)			4,480,920
Increase (Decrease) in Negotiable Certificates of Deposit			2,197,507				3,048,889
Increase (Decrease) in Debentures			(740,932	)			—
Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money)			(1,173,814	)			(7,094,654	)
Decrease (Increase) in Due from Banks (excluding Due from Central Banks)			(53,286	)			174,771
Decrease (Increase) in Call Loans, etc.			478,782				(973,265	)
Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions			135,102				862,495
Increase (Decrease) in Call Money, etc.			1,531,518				3,883,905
Increase (Decrease) in Commercial Paper			138,909				57,699
Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions			2,221,787				3,615,066
Decrease (Increase) in Foreign Exchange Assets			(46,710	)			(325,934	)
Increase (Decrease) in Foreign Exchange Liabilities			65,672				(51,158	)
Increase (Decrease) in Short-term Bonds (Liabilities)			(47,299	)			(60,798	)
Increase (Decrease) in Bonds and Notes			(50,399	)			185,465
Increase (Decrease) in Due to Trust Accounts			(42,469	)			117,567
Interest and Dividend Income—cash basis			1,451,469				1,470,305
Interest Expenses—cash basis			(338,893	)			(361,309	)
Other—net			40,646				931,299
Subtotal			4,203,229				5,951,082
Cash Refunded (Paid) in Income Taxes			(40,201	)			(92,464	)
Net Cash Provided by (Used in) Operating Activities			4,163,027				5,858,617

 

1-21

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Mizuho Financial Group, Inc.

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Cash Flow from Investing Activities
Payments for Purchase of Securities			(102,558,707	)							(110,660,283	)
Proceeds from Sale of Securities			82,444,484								95,288,761
Proceeds from Redemption of Securities			14,009,218								14,782,620
Payments for Increase in Money Held in Trust			(43,485	)							(57,715	)
Proceeds from Decrease in Money Held in Trust			94,295								32,089
Payments for Purchase of Tangible Fixed Assets			(53,613	)							(48,044	)
Payments for Purchase of Intangible Fixed Assets			(93,506	)							(96,661	)
Proceeds from Sale of Tangible Fixed Assets			11,707								6,413
Proceeds from Sale of Intangible Fixed Assets			0								1,648
Payments for Purchase of Stocks of Subsidiaries (affecting the scope of consolidation)			(634	)							—
Proceeds from Sale of Stocks of Subsidiaries (affecting the scope of consolidation)			20								1,479
Payments for Purchase of Equity of Consolidated Subsidiaries			(294	)							—
Proceeds from Sale of Equity of Consolidated Subsidiaries			14,838								—
Net Cash Provided by (Used in) Investing Activities			(6,175,676	)							(749,691	)
Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money			8,000								85,000
Repayments of Subordinated Borrowed Money			(40,015	)							(89,300	)
Proceeds from Issuance of Subordinated Bonds			170,000								278,985
Payments for Redemption of Subordinated Bonds			(441,530	)							(137,579	)
Proceeds from Issuance of Common Stock			4								—
Proceeds from Investments by Minority Shareholders			627								1,057
Repayments to Minority Shareholders			(54,855	)							(171,000	)
Cash Dividends Paid			(215,901	)							(152,514	)
Cash Dividends Paid to Minority Shareholders			(106,383	)							(99,588	)
Payments for Repurchase of Treasury Stock			(2,560	)							(6	)
Proceeds from Sale of Treasury Stock			1,960								1,074
Net Cash Provided by (Used in) Financing Activities			(680,652	)							(283,872	)
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents			(6,020	)							39,344
Net Increase (Decrease) in Cash and Cash Equivalents			(2,699,322	)							4,864,398
Cash and Cash Equivalents at the beginning of the fiscal year			9,182,461								6,483,138
Increase in Cash and Cash Equivalents from Newly Consolidated Subsidiary			0								0
Cash and Cash Equivalents at the end of the fiscal year		¥	6,483,138			¥	*1				11,347,537

 

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Mizuho Financial Group, Inc.

 

(5) MATTERS RELATED TO THE ASSUMPTION OF GOING CONCERN

There is no applicable information.

(6) FUNDAMENTAL AND IMPORTANT MATTERS FOR THE PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

1. Scope of Consolidation

 

a)

Number of consolidated subsidiaries: 145

Names of principal companies:

Mizuho Bank, Ltd.

Mizuho Corporate Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

Mizuho Securities Co., Ltd.

During the period, Mizuho Mega Solar Fund Co., Ltd. and seven other companies were newly consolidated as a result of establishment and other factors.

During the period, Mizuho Investors Securities Co., Ltd. and 11 other companies were excluded from the scope of consolidation as a result of dissolution upon the merger and other factors.

 

b)

Number of non-consolidated subsidiaries: 0

2. Application of the Equity Method

 

a)

Number of non-consolidated subsidiaries under the equity method: 0

 

b)

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

During the period, I-N INFORMATION SYSTEMS, LTD. was excluded from the scope of the equity method as a result of the change from an affiliate to a consolidated subsidiary.

 

c)

Number of non-consolidated subsidiaries not under the equity method: 0

 

d)

Affiliates not under the equity method:

Name of principal company:

Asian-American Merchant Bank Limited

Affiliates not under the equity method are excluded from the scope of the equity method since such exclusion has no material effect on MHFG’s consolidated financial statements in terms of Net Income (Loss) (amount corresponding to MHFG’s equity position), Retained Earnings (amount corresponding to MHFG’s equity position), Accumulated Other Comprehensive Income (amount corresponding to MHFG’s equity position) and others.

 

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Mizuho Financial Group, Inc.

 

3. Balance Sheet Dates of Consolidated Subsidiaries

 

a)

Balance sheet dates of consolidated subsidiaries are as follows:

 

September 30		1 company
December 29		18 companies
December 31		58 companies
March 31		68 companies

 

b)

The consolidated subsidiary with balance sheet dates of September 30 was consolidated based on its tentative financial statement as of and for the period ended the consolidated balance sheet date.

Consolidated subsidiaries with balance sheet dates of December 29 were consolidated based on their tentative financial statements as of and for the period ended December 31.

Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended their respective balance sheet dates.

The necessary adjustments have been made to the financial statements for any significant transactions that took place between their respective balance sheet dates and the date of the consolidated financial statements.

4. Special Purpose Entities Subject to Disclosure

 

a)

Summary of special purpose entities subject to disclosure and transactions with these special purpose entities

Mizuho Bank, Ltd. (“MHBK”) and Mizuho Corporate Bank, Ltd. (“MHCB”), which are consolidated subsidiaries of MHFG, granted loans, credit facilities and liquidity facilities to 19 special purpose entities (mainly incorporated in the Cayman Islands) in their borrowings and fund raising by commercial paper in order to support securitization of monetary assets of customers.

The aggregate assets and aggregate liabilities of these 19 special purpose entities at their respective balance sheet dates amounted to ¥2,276,449 million and ¥2,275,261 million, respectively. MHBK and MHCB do not own any shares with voting rights in any of these special purpose entities and have not dispatched any director or employee to them.

 

b)

Major transactions with these special purpose entities subject to disclosure as of or for the fiscal year ended March 31, 2013 are as follows:

 

As of March 31, 2013		Millions of yen
Loans		¥	1,769,546
Credit and Liquidity Facilities		¥	568,053
For the Fiscal Year ended March 31, 2013		Millions of yen
Interest Income on Loans		¥	10,692
Fee and Commission Income, etc.		¥	3,388

 

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Mizuho Financial Group, Inc.

 

5. STANDARDS OF ACCOUNTING METHOD

Amounts less than one million yen are rounded down.

 

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 consolidated balance sheet. Other Debt Purchased related to the relevant credited loans is stated at fair value at the consolidated balance sheet date.

Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including the gains or losses resulting from any change in the value between the beginning and the end of the fiscal year, are recognized in Other Operating Income and Other Operating Expenses on the 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 consolidated balance sheet. Income or expenses generated on the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement of income.

Securities and other monetary claims held for trading purposes are stated at fair value at the 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 consolidated balance sheet date.

Trading Income and Trading Expenses include the interest received and the interest paid during the fiscal year, 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 fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

 

3.	Securities

(i) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving average method. Investments in non-consolidated subsidiaries and affiliates, which are 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 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 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 or amortized 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 methods.

(ii) Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as given in (i) above.

 

4.	Derivative Transactions

Derivative transactions (other than transactions for trading purposes) are valued at fair value.

 

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 range of useful lives is as follows:

 

Buildings:		2 years to 50 years
Others:		2 years to 20 years

 

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Mizuho Financial Group, Inc.

 

(Changes in accounting policies which are difficult to distinguish from changes in accounting estimates)

Mizuho Financial Group and its domestic consolidated subsidiaries have applied the depreciation method based on the revised Corporation Tax Law to tangible fixed assets newly booked on or after April 1, 2012 beginning with the fiscal year ended March 31, 2013, following the revision of the Corporation Tax Law. The effect of this application on the consolidated statement of income is immaterial.

(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

(1) Bond issuance costs

Bond issuance costs are expensed as incurred.

(2) Bond discounts

Bonds are stated at amortized costs computed by the straight-line method on the consolidated balance sheets.

Bond discounts booked on the consolidated balance sheets as of March 31, 2006 are amortized under the straight-line method over the term of the bond by applying the previous accounting method and the unamortized balance is directly deducted from bonds, based on the tentative measure stipulated in the “Tentative Solution on Accounting for Deferred Assets” (ASBJ Report No. 19, August 11, 2006).

 

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 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 ¥270,388 million.

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.

 

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Mizuho Financial Group, Inc.

 

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 fiscal year, based on the estimated future payments.

 

10.	Reserve for Employee Retirement Benefits

Reserve for Employee Retirement Benefits (including Prepaid Pension Cost), which is provided for future benefit payments to employees, is recorded as the required amount, based on the projected benefit obligation and the estimated plan asset amounts at the end of the fiscal year. 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 of the respective fiscal year.

 

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 at the end of the respective fiscal year, 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 in off-balance transactions, trust transactions and others. The balance is an estimate of possible future losses, on an individual basis, 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 the liabilities at the estimated amount of future claims for withdrawal by depositors and others.

 

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.

 

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Mizuho Financial Group, Inc.

 

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, Paragraph 1 and Article 48-3, Paragraph 1 of the Financial Instruments and Exchange Law to indemnify the losses incurred from accidents in the purchase and sale of securities, other transactions or derivative transactions.

 

17.	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 consolidated balance sheet date, with the exception of the investments in non-consolidated subsidiaries and 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 balance sheet dates.

 

18.	Hedge Accounting

(1) 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 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).

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.

Among Deferred Gains or Losses on Hedges recorded on the consolidated balance sheet, those deferred hedge losses are included that resulted from the application of the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), under which the overall interest rate risks inherent in loans, deposits and others are controlled on a macro-basis using derivatives transactions. The deferred hedge gains/losses are amortized as interest income or interest expenses over the remaining maturity and average remaining maturity of the respective hedging instruments. The unamortized amounts of gross deferred hedge losses and gross deferred hedge gains on the macro-hedges, before net of applicable income taxes were ¥4,330 million and ¥2,955 million, respectively.

(2) 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). 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.

 

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Mizuho Financial Group, Inc.

 

(3) 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.

 

19.	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.

 

20.	Amortization Method of Goodwill and Amortization Period

Goodwill of Mizuho Trust & Banking Co., Ltd. is amortized over a period of 20 years under the straight-line method. Goodwill of Eurekahedge Pte, Ltd. is amortized over a period of 10 years under the straight-line method. Goodwill of PT. Mizuho Balimor Finance is amortized over a period of 9 years. Goodwill of Mizuho Factors, Ltd. is amortized over a period of 5 years. The amount of other Goodwill is expensed as incurred since the amount has no material impact.

 

21.	Scope of Cash and Cash Equivalents on Consolidated Statements of Cash Flows

For the purpose of the consolidated statement of cash flows, Cash and Cash Equivalents consists of cash and due from central banks included in Cash and Due from Banks on the consolidated balance sheet.

(7) ISSUED BUT NOT YET ADOPTED ACCOUNTING STANDARD AND OTHERS

 

1.	“Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Statement No. 25, May 17, 2012)

(1) Overview

From the viewpoint of improvements to financial reporting and international convergence, this accounting standard mainly focuses on  changes in the treatment of unrecognized actuarial differences and unrecognized past service, and enhancement of disclosures, and ‚ a revision to determination of projected benefit obligations and current service cost.

(2) Scheduled Date of Application

Mizuho Financial Group is scheduled to apply above  from the consolidated financial statements concerning the end of the fiscal year starting on April 1, 2013 and above ‚ from the beginning of the fiscal year starting on April 1, 2014.

(3) Effect of Application of this accounting standard

The effect of the application of this accounting standard is currently under consideration.

 

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Mizuho Financial Group, Inc.

 

2.	Revised ASBJ Statement No. 22 “Accounting Standard for Consolidated Financial Statements” (March 25, 2011)

(1) Overview

This accounting standard mainly represents a revision to the “Concrete Treatments Related to the Revision of the Definition of the Subsidiaries and Affiliates within the Consolidated Financial Statement System” (Business Accounting Council, October 30, 1998) III. Prior to the revision, special purpose entities that met specific conditions were presumed not to be subsidiaries of investors in and companies transferring assets to the relevant special purpose entities. After the revision, this treatment only applies to companies transferring assets to the special purpose entities.

(2) Scheduled Date of Application

Mizuho Financial Group is scheduled to apply this accounting standard from the beginning of the fiscal year starting on April 1, 2013.

(3) Effect of Application of this accounting standard

On adoption of this accounting standard, those special purpose entities that had not previously been treated as subsidiaries, where the transferor of the assets to the special purpose entity is not a domestic bank subsidiary, will be newly included within the scope of consolidation.

As a result of this, those special purpose entities that will be newly included within the scope of consolidation are provided in “(6) FUNDAMENTAL AND IMPORTANT MATTERS FOR THE PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS 4. Special Purpose Entities Subject to Disclosure.”

(8) CHANGE IN PRESENTATION OF FINANCIAL STATEMENTS

(Consolidated Statement of Income)

Refund of Income Taxes formerly included within Current Income Taxes is separately presented from this fiscal year due to increased materiality. Refund of Income Taxes formerly included within Current Income Taxes as of March 31, 2012 was ¥228million.

 

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Mizuho Financial Group, Inc.

 

(9) NOTES

(NOTES TO CONSOLIDATED BALANCE SHEET)

 

1.	Securities include shares of ¥258,956 million and investments of ¥421 million in non-consolidated subsidiaries and affiliates.

 

2.

MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral. Among them, the total of securities repledged was ¥10,763,594 million and securities neither repledged nor re-loaned was ¥1,995,828 million, respectively.

 

3.	Loans and Bills Discounted include Loans to Bankrupt Obligors of ¥33,688 million and Non-Accrual Delinquent Loans of ¥637,911 million.

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: ¥3,468 million

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.

 

5.	Balance of Restructured Loans: ¥694,732 million

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: ¥1,369,801 million

The amounts given in Notes 3 through 6 above are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

 

7.

In accordance with “Treatment of Accounting and Auditing of Application of Accounting Standard for Financial Instruments in the Banking Industry” (JICPA Industry Audit Committee Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sell or pledge these bankers’ acceptances, commercial bills, documentary bills and foreign exchange bills purchased. The face value of these bills amounted to ¥1,038,435 million.

 

8.	The following assets were pledged as collateral:

 

Trading Assets:		¥	5,202,949 million
Securities:		¥	21,651,304 million
Loans and Bills Discounted:		¥	8,642,462 million
Other Assets:		¥	6,126 million

 

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Mizuho Financial Group, Inc.

 

The following liabilities were collateralized by the above assets:

 

Deposits:		¥	258,984 million
Call Money and Bills Sold:		¥	1,579,600 million
Payables under Repurchase Agreements:		¥	7,726,231 million
Guarantee Deposits Received under Securities Lending Transactions:		¥	10,919,210 million
Borrowed Money:		¥	5,854,006 million

In addition to the above, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥13,113 million, Trading Assets of ¥266,909 million, Securities of ¥2,101,482 million, and Loans and Bills Discounted of ¥123,719 million.

None of the assets was pledged as collateral in connection with borrowings by the non-consolidated subsidiaries and affiliates.

Other Assets includes guarantee deposits of ¥101,985 million, margins for futures transactions of ¥79,222 million and collateral pledged for financial instruments and others of ¥510,935 million.

Rediscount of bills is conducted as financing transaction based on the JICPA Industry Audit Committee Report No. 24. There was no balance for bankers’ acceptances, commercial bills, documentary bills or foreign exchange bills purchased.

 

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 amounted to ¥67,950,272 million. Of this amount, ¥58,289,578 million relates to contracts of which the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.

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.

The difference at the consolidated balance sheet date between the total fair value of land for business operation purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total book value of the land after such revaluation was ¥163,523 million.

 

11.	Accumulated Depreciation of Tangible Fixed Assets amounted to ¥798,489 million.

 

12.	The book value of Tangible Fixed Assets adjusted for gains on sales of replaced assets and others amounted to ¥35,223 million.

 

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13.	Borrowed Money includes subordinated borrowed money of ¥608,450 million with a covenant that performance of the obligation is subordinated to that of other obligations.

 

14.	Bonds and Notes includes subordinated bonds of ¥1,595,663 million.

 

15.	The principal amounts of money trusts with contracts indemnifying the principal amounts, which are entrusted to domestic consolidated trust banking subsidiaries, are ¥706,390 million.

 

16.	Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Law) amounted to ¥957,724 million.

 

17.	Projected pension benefit obligations, etc. as of the consolidated balance sheet date are as follows:

 

		Millions of yen
Projected Benefit Obligations		¥	(1,326,443	)
Plan Assets (fair value)			1,512,741
Unfunded Retirement Benefit Obligations			186,297
Unrecognized Actuarial Differences			193,916
Net Amounts on Consolidated Balance Sheet			380,213
Prepaid Pension Cost			418,846
Reserve for Employee Retirement Benefits			(38,632	)

(NOTES TO CONSOLIDATED STATEMENT OF INCOME)

 

1.	Other within Other Ordinary Income includes gains on sales of stocks of ¥86,256 million and income from matured debentures of ¥35,754 million.

 

2.	Other within Other Ordinary Expenses includes losses on impairment (devaluation) of stocks of ¥125,838 million, losses on write-offs of loans of ¥49,747 million, and losses on sales of stocks of ¥39,557 million.

 

3.	Other Extraordinary Losses includes merger expenses of the securities subsidiaries of ¥14,415 million.

 

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Mizuho Financial Group, Inc.

 

(NOTES TO CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME)

 

1.	Reclassification adjustments and the related tax effects concerning Other Comprehensive Income

 

Net Unrealized Gains on Other Securities:
The amount arising during the period		¥	937,087			million
Reclassification adjustments		¥	(150,860)			million
Before adjustments to tax effects		¥	786,226			million
The amount of tax effects		¥	(210,295)			million
Net Unrealized Gains on Other Securities		¥	575,930			million
Deferred Gains or Losses on Hedges:
The amount arising during the period		¥	61,966			million
Reclassification adjustments		¥	(34,697)			million
Before adjustments to tax effects		¥	27,269			million
The amount of tax effects		¥	(9,915)			million
Deferred Gains or Losses on Hedges		¥	17,353			million
Revaluation Reserve for Land:
The amount arising during the period			—
Reclassification adjustments			—
Before adjustments to tax effects			—
The amount of tax effects		¥	(41)			million
Revaluation Reserve for Land		¥	(41)			million
Foreign Currency Translation Adjustments:
The amount arising during the period		¥	4,731			million
Reclassification Adjustments			—
Before adjustments to tax effects		¥	4,731			million
The amount of tax effects			—
Foreign Currency Translation Adjustments		¥	4,731			million
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method:
The amount arising during the period		¥	12,864			million
The total amount of Other Comprehensive Income		¥	610,839			million

 

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Mizuho Financial Group, Inc.

 

(NOTES TO CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS)

1. Types and number of issued shares and of treasury stock are as follows:

 

		Thousands of Shares
		As of April 1, 2012				Increase during the fiscal year				Decrease during the fiscal year				As of March 31, 2013				Remarks
Issued shares
Common stock			24,048,165				116,698				—				24,164,864				*1
Eleventh Series Class XI Preferred Stock			914,752				—				—				914,752
Thirteenth Series Class XIII Preferred Stock			36,690				—				—				36,690
Total			24,999,607				116,698				—				25,116,306
Treasury stock
Common stock			37,046				2,644				17,562				22,128				*2
Eleventh Series Class XI Preferred Stock			541,073				33,014				—				574,087				*3
Total			578,120				35,658				17,562				596,216

 

*1.	Increases are due to request for acquisition (conversion) of preferred stock.

*2.

Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to disposition of shares held by a subsidiary (9,256 thousand shares), exercise of stock acquisition rights (stock option) (7,365 thousand shares), and repurchase of shares constituting less than one unit (940 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 March 31, 2013 (Millions of yen)				Remarks
										As of April 1, 2012				Increase during the fiscal year				Decrease during the fiscal year				As of March 31, 2013
MHFG			Stock acquisition rights				—				—				—				—				—				—
			(Treasury stock acquisition rights	)							(—	)			(—	)			(—	)			(—	)			(—	)
			Stock acquisition rights as stock option												—												2,687
Consolidated subsidiaries															—												—
(Treasury stock acquisition rights)																											(—	)
Total															—												2,687
																											(—	)

 

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Mizuho Financial Group, Inc.

 

3. Cash dividends distributed by MHFG are as follows:

(1) Cash dividends paid during the fiscal year ended March 31, 2013

 

Resolution

Type

Cash Dividends (Millions of yen)

Cash Dividends per Share (Yen)

Record Date

Effective Date

June 26, 2012

Common Stock

72,063

3

March 31, 2012

June 26, 2012

[

Ordinary General Meeting of Shareholders

]

Eleventh Series Class XI Preferred Stock

3,736

10

March 31, 2012

June 26 2012

Thirteenth Series Class XIII Preferred Stock

550

15

March 31, 2012

June 26 2012

November 14, 2012

Common Stock

72,107

3

September 30, 2012

December 7, 2012

[

The Board of Directors

]

Eleventh Series Class XI Preferred Stock

3,714

10

September 30, 2012

December 7, 2012

Thirteenth Series Class XIII Preferred Stock

550

15

September 30, 2012

December 7, 2012

Total

152,722

(2) Cash dividends with record dates falling in the fiscal year ended March 31, 2013 and effective dates coming after the end of the fiscal year

 

Resolution

Type

Cash Dividends (Millions of yen)

Resource of Dividends

Cash Dividends per Share (Yen)

Record Date

Effective Date

Common Stock

72,435

Retained Earnings

3

March 31, 2013

June 25, 2013

June 25 2013

Eleventh Series Class XI Preferred Stock

3,406

Retained Earnings

10

March 31, 2013

June 25 2013

[

Ordinary General Meeting of Shareholders

]

Thirteenth Series Class XIII Preferred Stock

550

Retained Earnings

15

March 31, 2013

June 25, 2013

Cash dividends on common stock and preferred stock are proposed as above as a matter to be resolved at the ordinary general meeting of shareholders scheduled to be held on June 25, 2013.

(NOTES TO CONSOLIDATED STATEMENT OF CASH FLOWS)

1. Cash and Cash Equivalents at the end of the fiscal year on the consolidated statement of cash flows reconciles to Cash and Due from Banks on the consolidated balance sheet as follows:

 

		Millions of yen
Cash and Due from Banks		¥	12,333,997
Due from Banks excluding central banks			(986,459	)
Cash and Cash Equivalents		¥	11,347,537

 

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Mizuho Financial Group, Inc.

 

(FINANCIAL INSTRUMENTS)

Matters relating to fair value of financial instruments and others

1. The following are the consolidated balance sheet amounts, fair values and differences between them as of March 31, 2013. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded from the table below.

 

		(Unit: Millions of yen)
		Consolidated Balance Sheet Amount				Fair Value				Difference
(1) Cash and Due from Banks (*1)			12,332,996				12,332,996				—
(2) Call Loans and Bills Purchased (*1)			530,079				530,079				—
(3) Receivables under Resale Agreements			9,025,049				9,025,049				—
(4) Guarantee Deposits Paid under Securities Borrowing Transactions			5,543,914				5,543,914				—
(5) Other Debt Purchased (*1)			1,279,533				1,277,743				(1,789	)
(6) Trading Assets Trading Securities			9,102,409				9,102,409				—
(7) Money Held in Trust (*1)			96,014				96,014				—
(8) Securities
Bonds Held to Maturity			3,000,403				3,020,344				19,940
Other Securities			49,736,969				49,736,969				—
(9) Loans and Bills Discounted			67,536,882
Reserves for Possible Losses on Loans (*1)			(669,587	)
			66,867,294				67,950,932				1,083,637
Total Assets			157,514,664				158,616,452				1,101,788
(1) Deposits			84,241,955				84,204,806				(37,148	)
(2) Negotiable Certificates of Deposit			15,326,781				15,326,606				(175	)
(3) Call Money and Bills Sold			6,126,424				6,126,424				—
(4) Payables under Repurchase Agreements			17,451,041				17,451,041				—
(5) Guarantee Deposits Received under Securities Lending Transactions			11,325,439				11,325,439				—
(6) Trading Liabilities Securities Sold, Not yet Purchased			3,349,261				3,349,261				—
(7) Borrowed Money			7,699,440				7,718,009				18,568
(8) Bonds and Notes			5,141,746				5,267,901				126,154
Total Liabilities			150,662,091				150,769,491				107,399
Derivative Transactions (*2)
Derivative Transactions not Qualifying for Hedge Accounting			823,304
Derivative Transactions Qualifying for Hedge Accounting			[207,589	]
Reserves for Derivative Transactions (*1)			(24,915	)
Total Derivative Transactions			590,799				590,799				—

 

(*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.

 

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Mizuho Financial Group, Inc.

 

2. 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” and “Assets (8) Other Securities” in fair value information of financial instruments.

 

		(Millions of yen)
Category		Consolidated Balance Sheet Amount
 Unlisted Stocks (*1)			232,008
‚ Investments in Partnerships (*2)			143,280
ƒ Other (*3)			100,369
Total (*4)			475,658

 

(*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, 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)	We do not treat Preferred Securities and others included in Other as being subject to disclosure of fair values as there are no market prices and other factors and they are deemed extremely difficult to determine fair values.

(*4)	During the fiscal year ended March 31, 2013, the amount of impairment (devaluation) was ¥8,059 million on a consolidated basis.

 

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Mizuho Financial Group, Inc.

 

(SECURITIES)

In addition to “Securities” on the consolidated balance sheet, trading securities, commercial paper and certain other items in “Trading Assets,” NCDs in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included.

1. Trading Securities (as of March 31, 2013)

 

		(Millions of yen)
		Unrealized Gains (Losses) Included in Profit and Loss for the Fiscal Year
Trading Securities			36,788

2. Bonds Held to Maturity (as of March 31, 2013)

 

				(Millions of yen)
		Type		Consolidated Balance Sheet Amount				Fair Value				Difference
Bonds Whose Fair Values Exceed the Consolidated Balance Sheet Amount
		Japanese Government Bonds			2,800,591				2,820,614				20,022
Bonds Whose Fair Values Do Not Exceed the Consolidated Balance Sheet Amount
		Japanese Government Bonds			199,811				199,730				(81	)
Total					3,000,403				3,020,344				19,940

 

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Mizuho Financial Group, Inc.

 

3. Other Securities (as of March 31, 2013)

 

				(Millions of yen)
		Type		Consolidated Balance Sheet Amount				Acquisition Cost				Difference
Other Securities Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost
		Stocks			2,092,306				1,249,041				843,264
		Bonds			28,161,134				28,026,887				134,247
		Japanese Government Bonds			25,681,978				25,592,305				89,672
		Japanese Local Government Bonds			216,514				212,405				4,108
		Japanese Corporate Bonds			2,262,642				2,222,176				40,465
		Other			7,523,623				7,352,222				171,401
		Foreign Bonds			6,490,529				6,416,513				74,016
		Other Debt Purchased			285,742				278,111				7,631
		Other			747,351				657,597				89,754
		Sub-total			37,777,064				36,628,151				1,148,913
Other Securities Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost
		Stocks			683,729				816,911				(133,181	)
		Bonds			5,882,116				5,902,887				(20,771	)
		Japanese Government Bonds			5,123,172				5,124,634				(1,462	)
		Japanese Local Government Bonds			27,242				27,289				(46	)
		Japanese Corporate Bonds			731,701				750,963				(19,262	)
		Other			6,165,605				6,279,122				(113,516	)
		Foreign Bonds			5,354,280				5,410,391				(56,110	)
		Other Debt Purchased			284,683				292,910				(8,226	)
		Other			526,641				575,821				(49,179	)
		Sub-total			12,731,451				12,998,921				(267,470	)
Total					50,508,516				49,627,073				881,442

(Note) Unrealized Gains (Losses) includes ¥3,311 million which was recognized in the statement of income by applying the fair-value hedge method.

 

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Mizuho Financial Group, Inc.

 

4. Bonds Held to Maturity which were sold during the fiscal year ended March 31, 2013

There were no Bonds Held to Maturity which were sold during the fiscal year ended March 31, 2013.

5. Other Securities Sold during the Fiscal Year ended March 31, 2013

 

		(Millions of yen)
		Amount Sold				Gains on Sales				Losses on Sales
Stocks			245,287				68,124				17,613
Bonds			68,766,443				106,359				4,837
Japanese Government Bonds			66,720,654				92,554				4,485
Japanese Local Government Bonds			216,144				1,493				64
Japanese Corporate Bonds			1,829,643				12,311				287
Other			26,198,145				187,834				63,264
Total			95,209,875				362,318				85,714

 

(Note) Figures include Other Securities for which it is deemed to be extremely difficult to determine the fair value.

6. Securities for which the Holding Purpose has Changed

There were no securities for which the holding purpose has changed during the fiscal year ended March 31, 2013.

7. 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 fiscal year (impairment (devaluation)), if the fair value (primarily the closing market price at the consolidated balance sheet date) 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 was ¥125,810 million.

The criteria for determining whether a security’s 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.

(NOTES TO MONEY HELD IN TRUST)

1. Money Held in Trust for Investment (as of March 31, 2013)

 

		(Millions of yen)
		Consolidated Balance Sheet Amount				Unrealized Gains (Losses) Included in Profit and Loss for the Fiscal Year
Money Held in Trust for Investment			96,014				34

2. Money Held in Trust Held to Maturity (As of March 31, 2013)

There was no Money Held in Trust held to maturity.

3. Other in Money Held in Trust (other than for investment purposes and held to maturity purposes) (as of March 31, 2013)

There was no Other in Money Held in Trust.

 

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Mizuho Financial Group, Inc.

 

(BUSINESS SEGMENT INFORMATION)

1. Summary of reportable segment

The MHFG Group’s operating segments are based on the nature of the products and services provided, the type of customer and the Group’s management organization.

The reportable segment information, set forth below, is derived from the internal management reporting systems used by management to measure the performance of the Group’s operating segments. The management measures the performance of each of the operating segments primarily in terms of “net business profits” (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) in accordance with internal managerial accounting rules and practices.

MHFG manages its business portfolio through the three Global Groups: the Global Corporate Group, the Global Retail Group and the Global Asset & Wealth Management Group. The Global Corporate Group consists primarily of MHCB, the Global Retail Group consists primarily of MHBK, and the Global Asset & Wealth Management Group consists primarily of MHTB. The former MHSC and the former MHIS which had belonged to the Global Corporate Group and the Global Retail Group respectively, merged in January, 2013 and were launched as the new MHSC. The new MHSC after the merger belongs to both of the Global Corporate Group and the Global Retail Group.

Operating segments of MHCB and MHBK are aggregated within each entity based on customer characteristics and functions. Operating segments of MHCB are aggregated into three reportable segments, domestic, international, and trading and others. Operating segments of MHBK are also aggregated into three reportable segments, retail banking, corporate banking, and trading and others. In addition to the three Global Groups, subsidiaries which provide services to a wide range of customers and which do not belong to a specific Global Group are aggregated as Others.

[The Global Corporate Group]

[MHCB ]

MHCB is the main operating company of the Global Corporate Group and provides banking and other financial services to large corporations, financial institutions, public sector entities, foreign corporations, including foreign subsidiaries of Japanese corporations, and foreign governmental entities.

(Domestic ‚)

This segment provides a variety of financial products and services to large corporations, financial institutions and public sector entities in Japan. The products and services it offers include commercial banking, advisory services, syndicated loan arrangements and structured finance.

(International ƒ)

This segment mainly offers commercial banking and foreign exchange transaction services to foreign corporations, including foreign subsidiaries of Japanese corporations, through MHCB’s overseas network.

(Trading and others „)

This segment supports the domestic and international segments in offering derivatives and other risk hedging products to satisfy MHCB’s customers’ financial and business risk control requirements. It is also engaged in MHCB’s proprietary trading, such as foreign exchange and bond trading, and asset and liability management. This segment also includes costs incurred by headquarters functions of MHCB.

[MHSC …]

The former MHSC and the former MHIS merged to form the new MHSC in January, 2013. The new MHSC belongs to both of the Global Corporate Group and the Global Retail Group and provides full-line securities services to corporations, financial institutions, public sector entities and individuals.

[Others †]

This segment consists of MHCB’s subsidiaries and others other than MHSC. These entities offer financial products and services in specific areas of business or countries mainly to customers of the Global Corporate Group.

 

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Mizuho Financial Group, Inc.

 

[The Global Retail Group]

[MHBK ‡]

MHBK is the main operating company of the Global Retail Group. MHBK provides banking and other financial services primarily to individuals, SMEs and middle-market corporations through its domestic branch and ATM network.

(Retail banking ˆ)

This segment offers banking products and services, including housing and other personal loans, credit cards, deposits, investment products and consulting services, to MHBK’s individual customers through its nationwide branch and ATM network, as well as telephone and Internet banking services.

(Corporate banking ‰)

This segment provides loans, syndicated loan arrangements, structured finance, advisory services, other banking services and capital markets financing to SMEs, middle-market corporations, local governmental entities and other public sector entities in Japan.

(Trading and others Š)

This segment supports the retail banking and corporate banking segments in offering derivatives and other risk hedging products to satisfy MHBK’s customers’ financial and business risk control requirements. It is also engaged in MHBK’s proprietary trading, such as foreign exchange and bond trading, and asset and liability management. This segment also includes costs incurred by headquarters functions of MHBK.

[The former MHIS ]

The former MHIS merged with the former MHSC to form the new MHSC in January, 2013.

[Others ]

This segment consists of MHBK’s subsidiaries. These subsidiaries, such as Mizuho Capital and Mizuho Business Financial Center, offer financial products and services in specific areas of business to customers of the Global Retail Group.

[The Global Asset & Wealth Management Group]

[MHTB ]

MHTB is the main operating company of the Global Asset & Wealth Management Group and offers products and services related to trust, real estate, securitization and structured finance, pension and asset management, and stock transfers.

[Others ]

This segment includes companies other than MHTB which are part of the Global Asset & Wealth Management Group. These companies include Trust & Custody Service Bank, Mizuho Asset Management, DIAM and Mizuho Private Wealth Management. They offer products and services related to private banking, trust and custody, and asset management.

[Others ]

This segment consists of MHFG and its subsidiaries that do not belong to a specific Global Group but provide their services to a wide range of customers. Under this segment, the MHFG Group offers non-banking services including research and consulting services through Mizuho Research Institute, information technology-related services through Mizuho Information & Research Institute and advisory services to financial institutions through Mizuho Financial Strategy.

 

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Mizuho Financial Group, Inc.

 

2. Calculating method of Gross profits (excluding the amounts of credit costs of trust accounts), Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans), and the amount of Assets by reportable segment

The following information of reportable segment is based on internal management reporting.

Gross profits (excluding the amounts of credit costs of trust accounts) is the total amount of Interest income, Fiduciary income, Fee and commission income, Trading income, and Other operating income.

Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) is the amount of which General administrative expenses (excluding non-recurring expenses) and Other (Equity in income from investments in affiliates and certain other consolidation adjustments) are deducted from Gross profits (excluding the amounts of credit costs of trust accounts).

Asset information by segment is not prepared on the grounds that management does not use asset information of each segment for the purpose of asset allocation or performance evaluation.

Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments is based on the current market price.

3. Gross profits (excluding the amounts of credit costs of trust accounts) and Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) by reportable segment

 

		Millions of yen
		Global Corporate Group																												Global Retail Group																												Global Asset & Wealth Management Group												Others
						MHCB																												MHBK																The former MHIS				Others
										Domestic				Inter- national				Trading and others				MHSC				Others												Retail banking				Corp- orate banking				Trading and others																MHTB				Others
											‚				ƒ				„				…				†								‡				ˆ				‰				Š																												Total
Gross profits: (excluding the amounts of credit costs of trust accounts)
Net interest income (expense)			486,139				401,701				157,000				109,600				135,101				(4,912	)			89,349				550,594				513,824				210,600				234,300				68,924				436				36,333				40,428				41,045				(616	)			(1,263	)			1,075,898
Net non-interest income			572,803				333,373				141,100				104,700				87,573				184,252				55,177				360,330				313,650				37,400				162,000				114,250				35,106				11,573				130,932				82,512				48,419				31,751				1,095,818
Total			1,058,942				735,075				298,100				214,300				222,675				179,340				144,527				910,924				827,475				248,000				396,300				183,175				35,543				47,906				171,361				123,557				47,803				30,487				2,171,716
General and administrative expenses (excluding Non-Recurring Losses)			471,963				241,048				80,000				61,500				99,548				142,854				88,059				568,259				524,396				209,300				216,700				98,396				30,701				13,161				114,290				74,279				40,011				16,502				1,171,016
Others			(50,008	)			—				—				—				—				—				(50,008	)			(7,403	)			—				—				—				—				—				(7,403	)			(1,670	)			—				(1,670	)			(29,462	)			(88,545	)
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)			536,971				494,026				218,100				152,800				123,126				36,485				6,459				335,261				303,078				38,700				179,600				84,778				4,841				27,341				55,399				49,278				6,121				(15,477	)			912,155

 

Notes:

(1)	Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general corporations.

(2)	“Others †”, “Others ” and “Others ” include elimination of transactions between companies within the Global Corporate Group, the Global Retail Group and the Global Asset & Wealth Management Group, respectively. “Others ” includes elimination of transactions between the Global Groups.

(3)

Beginning on April 1, 2012, with the implementation of the “substantive one bank” structure, new methods of income distribution among segments have been applied to the calculation of the respective Gross profits (excluding the amounts of credit costs of trust accounts) and Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) of “Domestic ‚”, “International ƒ”, “Trading and others „”, “Retail banking ˆ”, “Corporate banking ‰”, and “Trading and others Š”.

(4)

Following the merger of the former MHSC and the former MHIS conducted in January 2013, “MHSC …” reports the result of the former MHSC from the first quarter to the third quarter and that of the new MHSC for the fourth quarter. “The former MHIS ” reports the result of the former MHIS from the first quarter to the third quarter.

 

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Mizuho Financial Group, Inc.

 

(“Substantive one bank” structure)

 

		MHCB Ÿ MHBK (“Substantive one bank” structure)
						Retail banking				Corporate banking				International				Trading and others
Gross profits: (excluding the amounts of credit costs of trust accounts)
Net interest income (expense)			915,525				210,600				391,300				109,600				204,025
Net non-interest income			647,024				37,400				303,100				104,700				201,824
Total			1,562,550				248,000				694,400				214,300				405,850
General and administrative expenses (excluding Non-Recurring Losses)			765,445				209,300				296,700				61,500				197,945
Others			—				—				—				—				—
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)			797,104				38,700				397,700				152,800				207,904

 

Note:

Beginning on April 1, 2012, with the implementation of the “substantive one bank” structure, in addition to managing our business portfolio through the three Global Groups, we have also begun managing Mizuho Bank and Mizuho Corporate Bank as one entity, with four reportable segments: retail banking; corporate banking; international; and trading and others.

4. The difference between the total amounts of reportable segments and the recorded amounts in Consolidated Statement of Income, and the contents of the difference (Matters relating to adjustment to difference)

The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) and that of Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) derived from internal management reporting by reportable segment are different from the amounts recorded in Consolidated Statement of Income.

The contents of the difference for the period are as follows:

 

(1)	The total of Gross profits (excluding the amounts of credit costs of trust accounts) of segment information and Ordinary Profits recorded in Consolidated Statements of Income

 

		Millions of yen
Gross profits: (excluding the amounts of credit costs of trust accounts)		Amount
Total amount of the above segment information			2,171,716
Other Ordinary Income			197,015
General and Administrative Expenses			(1,244,647	)
Other Ordinary Expenses			(373,708	)
Ordinary Profits recorded in Consolidated Statements of Income			750,376

 

(2)	The total of Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) of segment information and Income before income taxes and minority interests recorded in Consolidated Statements of Income

 

1-45

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Mizuho Financial Group, Inc.

 

		Millions of yen
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)		Amount
Total amount of the above segment information			912,155
Credit Costs for Trust Accounts			—
General and Administrative Expenses (non-recurring losses)			(73,631	)
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)			(136,983	)
Net Gains (Losses) related to Stocks			(82,949	)
Net Extraordinary Gains (Losses)			(32,543	)
Other			131,786
Income before income taxes and minority interests recorded in Consolidated Statements of Income			717,832

 

1-46

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Mizuho Financial Group, Inc.

 

(MATTERS RELATED TO COMBINATION AND OTHERS)

Transaction under Common Control and Others

Mizuho Securities Co., Ltd., a consolidated subsidiary of Mizuho Financial Group, Inc. (“MHFG”), and Mizuho Investors Securities Co., Ltd., a consolidated subsidiary of MHFG, merged as of January 4, 2013 based on the merger agreement signed on May 15, 2012.

(1) Names of the companies involved in the combination and purposes of business, date of the combination, legal form of the combination, name of the company after the combination, overview of the transaction including its purpose

 

	Names of the companies involved in the combination and purposes of business

 

Items		The Combining Company		The Combined Company
Names of the companies involved in the combination		Mizuho Securities Co., Ltd.		Mizuho Investors Securities Co., Ltd.
Purposes of business		Financial instruments business		Financial instruments business

 

‚	Date of the combination

January 4, 2013

 

ƒ	Legal form of the combination

The absorption-type merger in which Mizuho Securities Co., Ltd. is the surviving company and Mizuho Investors Securities Co., Ltd. is the dissolving company.

 

„	Name of the company after the combination

Mizuho Securities Co., Ltd.

 

…	Overview of the transaction including its purpose

The merger is intended, in the securities business, to enhance the retail business in Japan, rationalize and streamline management infrastructure, and provide securities functions in a unified manner through the group’s full-line securities company.

(2) Overview of the applied accounting treatment

Based on “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, December 26, 2008) and “Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, December 26, 2008), this event has been treated as a transaction under common control.

 

1-47

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Mizuho Financial Group, Inc.

 

(PER SHARE INFORMATION)

(Consolidated basis)

 

				Fiscal 2011				Fiscal 2012
Net Assets per Share of Common Stock		¥			187.19				229.70
Net Income per Share of Common Stock		¥			20.62				22.96
Diluted Net Income per Share of Common Stock		¥			19.75				22.05
1. Total Net Assets per Share of Common Stock is based on the following information:
				Fiscal 2011				Fiscal 2012
Net Assets per Share of Common Stock
Total Net Assets		¥  million			6,869,295				7,736,230
Deductions from Total Net Assets		¥  million			2,374,513				2,190,405
Paid-in Amount of Preferred Stock		¥  million			410,368				377,354
Cash Dividends on Preferred Stock		¥  million			4,287				3,956
Stock Acquisition Rights		¥  million			2,158				2,687
Minority Interests		¥  million			1,957,699				1,806,407
Net Assets (year-end) related to Common Stock		¥  million			4,494,781				5,545,824
Year-end Outstanding Shares of Common Stock, based on which Total Net Assets per Share of Common Stock was calculated		Thousands of shares			24,011,119				24,142,736
2. Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock are based on the following information:
				Fiscal 2011				Fiscal 2012
Net Income per Share of Common Stock
Net Income		¥  million			484,519				560,516
Amount not attributable to Common Stock		¥  million			8,672				8,221
Cash Dividends on Preferred Stock		¥  million			8,672				8,221
Net Income related to Common Stock		¥  million			475,847				552,294
Average Outstanding Shares of Common Stock (during the period)		Thousands of shares			23,073,543				24,053,281
Diluted Net Income per Share of Common Stock
Adjustment to Net Income		¥  million			7,571				7,120
Cash Dividends on Preferred Stock		¥  million			7,571				7,120
Increased Number of Shares of Common Stock		Thousands of shares			1,392,061				1,311,947
Preferred Stock		Thousands of shares			1,380,433				1,291,854
Stock Acquisition Rights		Thousands of shares			11,627				20,092
Description of dilutive securities which were not included in the calculation of Diluted Net Income per Share of Common Stock as they have no dilutive effects					—				—

(SUBSEQUENT EVENTS)

There is no applicable information.

 

1-48

---

Mizuho Financial Group, Inc.

 

5. NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) NON-CONSOLIDATED BALANCE SHEETS

 

		Millions of yen
		As of March 31, 2012				As of March 31, 2013
Assets
Current Assets
Cash and Due from Banks		¥	14,452			¥	26,365
Prepaid Expenses			1,096				1,046
Accounts Receivable			1,447				47,280
Other Current Assets			5,797				6,618
Total Current Assets			22,793				81,311
Fixed Assets
Tangible Fixed Assets			2,234				4,585
Buildings			704				427
Equipment			259				275
Construction in Progress			1,270				3,881
Intangible Fixed Assets			2,726				2,611
Trademarks			10				6
Software			2,632				2,096
Other Intangible Fixed Assets			84				508
Investments			6,100,670				6,113,641
Investment Securities			51,629				74,064
Investments in Subsidiaries and Affiliates			6,034,643				6,023,433
Long-term Prepaid Expenses			141				141
Other Investments			14,256				16,003
Total Fixed Assets			6,105,631				6,120,838
Total Assets		¥	6,128,424			¥	6,202,149
Liabilities
Current Liabilities
Short-term Borrowings		¥	741,070			¥	646,995
Short-term Bonds			440,000				500,000
Accounts Payable			2,027				2,149
Accrued Expenses			3,520				4,028
Accrued Corporate Taxes			63				94
Deposits Received			243				287
Reserve for Bonus Payments			280				272
Total Current Liabilities			1,187,205				1,153,827
Non-Current Liabilities
Bonds and Notes			240,000				240,000
Deferred Tax Liabilities			4,213				10,439
Reserve for Employee Retirement Benefits			1,997				2,258
Asset Retirement Obligations			643				643
Other Non-Current Liabilities			6,031				6,056
Total Non-Current Liabilities			252,885				259,398
Total Liabilities		¥	1,440,090			¥	1,413,226

 

1-49

---

Mizuho Financial Group, Inc.

 

		Millions of yen
		As of March 31, 2012				As of March 31, 2013
Net Assets
Shareholders’ Equity
Common Stock and Preferred Stock		¥	2,254,972			¥	2,254,972
Capital Surplus
Capital Reserve			1,194,864				1,194,864
Total Capital Surplus			1,194,864				1,194,864
Retained Earnings
Appropriated Reserve			4,350				4,350
Other Retained Earnings			1,230,688				1,318,948
Retained Earnings Brought Forward			1,230,688				1,318,948
Total Retained Earnings			1,235,038				1,323,298
Treasury Stock			(5,453	)			(4,295	)
Total Shareholders’ Equity			4,679,422				4,768,840
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes			6,753				17,395
Total Valuation and Translation Adjustments			6,753				17,395
Stock Acquisition Rights			2,158				2,687
Total Net Assets			4,688,334				4,788,923
Total Liabilities and Net Assets		¥	6,128,424			¥	6,202,149

 

1-50

---

Mizuho Financial Group, Inc.

 

(2) NON-CONSOLIDATED STATEMENTS OF INCOME

 

		Millions of yen
		For the fiscal  year ended March 31, 2012				For the fiscal  year ended March 31, 2013
Operating Income
Cash Dividends Received from Subsidiaries and Affiliates		¥	7,954			¥	233,055
Fee and Commission Income Received from Subsidiaries and Affiliates			29,827				29,124
Total Operating Income			37,781				262,180
Operating Expenses
General and Administrative Expenses			21,260				21,074
Total Operating Expenses			21,260				21,074
Operating Profits			16,521				241,105
Non-Operating Income
Interest on Deposits			7				5
Cash Dividends Received			1,373				1,607
Fee and Commissions			10,155				10,155
Other Non-Operating Income			153				130
Total Non-Operating Income			11,689				11,898
Non-Operating Expenses
Interest Expenses			4,776				4,113
Interest on Short-term Bonds			1,451				1,601
Interest on Bonds			10,155				10,155
Other Non-Operating Expenses			1,410				1,194
Total Non-Operating Expenses			17,793				17,064
Ordinary Profits			10,417				235,938
Extraordinary Gains
Gains on Liquidation of Investments in Subsidiaries			10				5,970
Total Extraordinary Gains			10				5,970
Extraordinary Losses
Other Extraordinary Losses			20				12
Total Extraordinary Losses			20				12
Income before Income Taxes			10,407				241,897
Income Taxes:
Current			141				226
Deferred			48				333
Total Income Taxes			189				559
Net Income		¥	10,217			¥	241,337

 

1-51

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Mizuho Financial Group, Inc.

 

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

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Shareholders’ Equity
Common Stock and Preferred Stock
Balance as of the beginning of the period		¥	2,181,375			¥	2,254,972
Changes during the period
Issuance of New Shares			73,597				—
Total Changes during the period			73,597				—
Balance as of the end of the period			2,254,972				2,254,972
Capital Surplus
Capital Reserve
Balance as of the beginning of the period			1,025,651				1,194,864
Changes during the period
Issuance of New Shares			73,597				—
Increase in Stock due to Share Exchange			95,615				—
Total Changes during the period			169,213				—
Balance as of the end of the period			1,194,864				1,194,864
Total Capital Surplus
Balance as of the beginning of the period			1,025,651				1,194,864
Changes during the period
Issuance of New Shares			73,597				—
Increase in Stock due to Share Exchange			95,615				—
Total Changes during the period			169,213				—
Balance as of the end of the period			1,194,864				1,194,864
Retained Earnings
Appropriated Reserve
Balance as of the beginning of the period			4,350				4,350
Changes during the period
Total Changes during the period			—				—
Balance as of the end of the period			4,350				4,350
Other Retained Earnings
Retained Earnings Brought Forward
Balance as of the beginning of the period			1,437,204				1,230,688
Changes during the period
Cash Dividends			(216,507	)			(152,722	)
Net Income			10,217				241,337
Disposition of Treasury Stock			(225	)			(355	)
Total Changes during the period			(206,515	)			88,260
Balance as of the end of the period			1,230,688				1,318,948
Total Retained Earnings
Balance as of the beginning of the period			1,441,554				1,235,038
Changes during the period
Cash Dividends			(216,507	)			(152,722	)
Net Income			10,217				241,337
Disposition of Treasury Stock			(225	)			(355	)
Total Changes during the period			(206,515	)			88,260
Balance as of the end of the period		¥	1,235,038			¥	1,323,298

 

1-52

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Mizuho Financial Group, Inc.

 

		Millions of yen
		For the fiscal year ended March 31, 2012				For the fiscal year ended March 31, 2013
Treasury Stock
Balance as of the beginning of the period		¥	(3,196	)		¥	(5,453	)
Changes during the period
Repurchase of Treasury Stock			(2,560	)			(6	)
Disposition of Treasury Stock			303				1,164
Total Changes during the period			(2,256	)			1,158
Balance as of the end of the period			(5,453	)			(4,295	)
Total Shareholders’ Equity
Balance as of the beginning of the period			4,645,383				4,679,422
Changes during the period
Issuance of New Shares			147,195				—
Increase in Stock due to Share Exchange			95,615				—
Cash Dividends			(216,507	)			(152,722	)
Net Income			10,217				241,337
Repurchase of Treasury Stock			(2,560	)			(6	)
Disposition of Treasury Stock			77				809
Total Changes during the period			34,038				89,418
Balance as of the end of the period			4,679,422				4,768,840
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Balance as of the beginning of the period			5,713				6,753
Changes during the period
Net Changes in Items other than Shareholders’ Equity			1,040				10,642
Total Changes during the period			1,040				10,642
Balance as of the end of the period			6,753				17,395
Stock Acquisition Rights
Balance as of the beginning of the period			1,786				2,158
Changes during the period
Net Changes in Items other than Shareholders’ Equity			372				528
Total Changes during the period			372				528
Balance as of the end of the period			2,158				2,687
Total Net Assets
Balance as of the beginning of the period			4,652,883				4,688,334
Changes during the period
Issuance of New Shares			147,195				—
Increase in Stock due to Share Exchange			95,615				—
Cash Dividends			(216,507	)			(152,722	)
Net Income			10,217				241,337
Repurchase of Treasury Stock			(2,560	)			(6	)
Disposition of Treasury Stock			77				809
Net Changes in Items other than Shareholders’ Equity			1,412				11,170
Total Changes during the period			35,450				100,588
Balance as of the end of the period		¥	4,688,334			¥	4,788,923

(4) NOTE FOR THE ASSUMPTION OF GOING CONCERN

There is no applicable information.

 

1-53

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SELECTED FINANCIAL INFORMATION

For Fiscal 2012

<Under Japanese GAAP>

 

 

 

Mizuho Financial Group, Inc.

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C O N T E N T S

 

 

Notes:

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

“NON”: Non-consolidated figures of Mizuho Bank, Ltd. (“MHBK”), Mizuho Corporate Bank, Ltd. (“MHCB”) and Mizuho Trust & Banking Co., Ltd. (“MHTB”)

“HC”: Non-consolidated figures of Mizuho Financial Group, Inc.

 

 

 

I. FINANCIAL DATA FOR FISCAL 2012		See above Notes				Page
1. Income Analysis		CON		NON			2- 1
2. Interest Margins (Domestic Operations)		NON					2- 6
3. Use and Source of Funds		NON					2- 7
4. Net Gains/Losses on Securities		NON					2- 11
5. Unrealized Gains/Losses on Securities		CON		NON			2- 13
6. Projected Redemption Amounts for Securities		NON					2- 15
7. Overview of Derivative Transactions Qualifying for Hedge Accounting		NON					2- 16
8. Employee Retirement Benefits		NON		CON			2- 17
9. Capital Ratio (Basel III)		CON		NON			2- 19
II. REVIEW OF CREDITS		See above Notes				Page
1. Status of Non-Accrual, Past Due & Restructured Loans		CON		NON			2- 20
2. Status of Reserves for Possible Losses on Loans		CON		NON			2- 22
3. Reserve Ratios for Non-Accrual, Past Due & Restructured Loans		CON		NON			2- 23
4. Status of Disclosed Claims under the Financial Reconstruction Law (“FRL”)		CON		NON			2- 24
5. Coverage on Disclosed Claims under the FRL		NON					2- 26
6. Overview of Non-Performing Loans (“NPLs”)		NON					2- 29
7. Results of Removal of NPLs from the Balance Sheet		NON					2- 30
8. Status of Loans by Industry
(1) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Industry		NON					2- 32
(2) Disclosed Claims under the FRL and Coverage Ratio by Industry		NON					2- 34
9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises (“SMEs”) and Individual Customers
(1) Balance of Housing and Consumer Loans		NON					2- 35
(2) Loans to SMEs and Individual Customers		NON					2- 35
10. Status of Loans by Region
(1) Balance of Loans to Restructuring Countries		NON					2- 36
(2) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Region		NON					2- 36
III. DEFERRED TAXES		See above Notes				Page
1. Estimation for Calculating Deferred Tax Assets		NON					2- 37

---

IV. OTHERS		See above Notes				Page
1. Breakdown of Deposits (Domestic Offices)		NON					2- 41
2. Number of Directors and Employees		HC		NON			2- 42
3. Number of Branches and Offices		NON					2- 43
4. Earnings Plan for Fiscal 2013		CON		NON			2- 44
Attachments		See above Notes				Page
Mizuho Bank, Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)		NON					2- 45
Comparison of Non-Consolidated Statements of Income (selected items)		NON					2- 46
Non-Consolidated Statement of Changes in Net Assets		NON					2- 47
Mizuho Corporate Bank, Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)		NON					2- 48
Comparison of Non-Consolidated Statements of Income (selected items)		NON					2- 49
Non-Consolidated Statement of Changes in Net Assets		NON					2- 50
Mizuho Trust & Banking Co., Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)		NON					2- 51
Comparison of Non-Consolidated Statements of Income (selected items)		NON					2- 52
Non-Consolidated Statement of Changes in Net Assets		NON					2- 53
Statement of Trust Assets and Liabilities		NON					2- 54
Comparison of Balances of Principal Items		NON					2- 55

 

 

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

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

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

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

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

 

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Mizuho Financial Group, Inc.

 

I. FINANCIAL DATA FOR FISCAL 2012

1. Income Analysis

Consolidated

 

						(Millions of yen)
						Fiscal 2012
										Change				Fiscal 2011
Consolidated Gross Profits			1				2,171,716				168,641				2,003,075
Net Interest Income			2				1,075,898				(12,442	)			1,088,340
Fiduciary Income			3				48,506				(508	)			49,014
Credit Costs for Trust Accounts			4				—				—				—
Net Fee and Commission Income			5				507,378				48,444				458,933
Net Trading Income			6				215,033				64,716				150,317
Net Other Operating Income			7				324,899				68,431				256,468
General and Administrative Expenses			8				(1,244,647	)			39,200				(1,283,847	)
Personnel Expenses			9				(635,215	)			(222	)			(634,993	)
Non-Personnel Expenses			10				(559,175	)			37,225				(596,400	)
Miscellaneous Taxes			11				(50,256	)			2,197				(52,453	)
Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans)			12				(136,983	)			(94,414	)			(42,569	)
Losses on Write-offs of Loans			13				(49,747	)			(11,180	)			(38,566	)
Reversal of (Provision for) General Reserve for Possible Losses on Loans			14				(85,837	)			(85,837	)			—
Reversal of Reserves for Possible Losses on Loans, etc.			15				25,146				(45,172	)			70,318
Net Gains (Losses) related to Stocks			16				(82,949	)			(44,773	)			(38,175	)
Equity in Income from Investments in Affiliates			17				(11,141	)			(13,830	)			2,689
Other			18				29,236				92,164				(62,928	)
Ordinary Profits			19				750,376				101,815				648,561
Net Extraordinary Gains (Losses)			20				(32,543	)			(100,431	)			67,887
Gains on Negative Goodwill Incurred			21				—				(91,180	)			91,180
Income before Income Taxes and Minority Interests			22				717,832				1,383				716,449
Income Taxes - Current*			23				(50,400	)			4,932				(55,332	)
- Deferred			24				(7,461	)			90,033				(97,494	)
Net Income before Minority Interests			25				659,970				96,348				563,621
Minority Interests in Net Income			26				(99,454	)			(20,351	)			(79,102	)
Net Income			27				560,516				75,996				484,519
___________   *  Income Taxes - Current [23] includes Refund of Income Tax.
Credit-related Costs (including Credit Costs for Trust Accounts)			28				(111,837	)			(139,587	)			27,749
*  Credit-related Costs [28]  =   Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for  Possible Losses on Loans) [12] + Reversal of Reserves for Possible Losses on Loans, etc. [15] + Credit  Costs for Trust Accounts [4]
(Reference)
Consolidated Net Business Profits			29				912,155				193,051				719,104
*  Consolidated Net Business Profits [29] = Consolidated Gross Profits [1] – General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments
Number of consolidated subsidiaries			30				145				(4	)			149
Number of affiliates under the equity method			31				22				(1	)			23

 

2-1

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Mizuho Financial Group, Inc.

 

Aggregated Figures of the 3 Banks

Non-Consolidated

 

						(Millions of yen)
						Fiscal 2012
						MHBK				MHCB				MHTB				Aggregated Figures				Change				Fiscal 2011
Gross Profits			1				827,475				735,075				123,557				1,686,108				78,596				1,607,511
Domestic Gross Profits			2				698,211				303,155				113,042				1,114,409				28,528				1,085,880
Net Interest Income			3				488,838				180,878				36,398				706,114				(47,140	)			753,255
Fiduciary Income			4												47,794				47,794				(656	)			48,450
Trust Fees for Loan Trust and Jointly Operated Designated Money Trust			5												2,885				2,885				(193	)			3,079
Credit Costs for Trust Accounts *1			6												—				—				—				—
Net Fee and Commission Income			7				153,324				66,569				21,831				241,725				22,731				218,994
Net Trading Income			8				4,829				24,312				1,907				31,049				5,927				25,122
Net Other Operating Income			9				51,219				31,395				5,110				87,725				47,666				40,058
International Gross Profits			10				129,263				431,919				10,515				571,698				50,067				521,630
Net Interest Income			11				24,986				220,823				4,646				250,456				20,604				229,851
Net Fee and Commission Income			12				11,988				92,480				(155	)			104,313				18,433				85,879
Net Trading Income			13				(1,474	)			19,816				231				18,574				(2,298	)			20,872
Net Other Operating Income			14				93,763				98,799				5,792				198,354				13,328				185,026
General and Administrative Expenses (excluding Non-Recurring Losses)			15				(524,396	)			(241,048	)			(74,279	)			(839,725	)			39,632				(879,357	)
Expense Ratio			16				63.3	%			32.7	%			60.1	%			49.8	%			(4.9	%)			54.7	%
Personnel Expenses			17				(182,712	)			(101,709	)			(33,926	)			(318,347	)			968				(319,316	)
Non-Personnel Expenses			18				(313,863	)			(128,045	)			(38,104	)			(480,013	)			35,406				(515,419	)
Premium for Deposit Insurance			19				(39,495	)			(6,012	)			(1,896	)			(47,404	)			8,806				(56,210	)
Miscellaneous Taxes			20				(27,820	)			(11,294	)			(2,248	)			(41,364	)			3,257				(44,621	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			21				303,078				494,026				49,278				846,383				118,229				728,153
Excluding Net Gains (Losses) related to Bonds			22				211,335				376,081				38,487				625,904				52,890				573,014
Reversal of (Provision for) General Reserve for Possible Losses on Loans			23				—				(91,972	)			—				(91,972	)			(99,837	)			7,865
Net Business Profits			24				303,078				402,053				49,278				754,410				18,391				736,018
Net Gains (Losses) related to Bonds			25				91,742				117,944				10,791				220,478				65,339				155,139
Net Non-Recurring Gains (Losses)			26				(27,880	)			(142,357	)			(14,422	)			(184,661	)			(26,291	)			(158,369	)
Net Gains (Losses) related to Stocks			27				(26,893	)			(95,656	)			(8,708	)			(131,258	)			(80,909	)			(50,348	)
Expenses related to Portfolio Problems			28				(27,368	)			(53,256	)			(781	)			(81,406	)			(30,073	)			(51,333	)
Reversal of Reserves for Possible Losses on Loans, etc.			29				46,998				11,097				1,104				59,200				(9,027	)			68,228
Other			30				(20,617	)			(4,541	)			(6,036	)			(31,196	)			93,719				(124,915	)
Ordinary Profits			31				275,197				259,695				34,856				569,749				(7,899	)			577,649
Net Extraordinary Gains (Losses)			32				(11,998	)			(1,922	)			(1,086	)			(15,007	)			21,630				(36,638	)
Net Gains (Losses) on Disposition of Fixed Assets			33				(4,303	)			(321	)			(604	)			(5,229	)			(1,649	)			(3,580	)
Losses on Impairment of Fixed Assets			34				(7,694	)			(1,600	)			(482	)			(9,778	)			(4,447	)			(5,330	)
Income before Income Taxes			35				263,198				257,773				33,769				554,741				13,731				541,010
Income Taxes - Current *2			36				(8,980	)			(6,713	)			(10,751	)			(26,445	)			14,334				(40,780	)
- Deferred			37				(19,713	)			(212	)			2,877				(17,047	)			55,033				(72,081	)
Net Income			38				234,505				250,846				25,895				511,247				83,099				428,148
*1     Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) of MHTB excludes the amounts of “Credit Costs for Trust Accounts” [6].
*2     Income Taxes - Current [36] includes Refund of Income Tax.
Credit-related Costs			39				19,630				(134,132	)			323				(114,178	)			(138,938	)			24,760
* Credit-related Costs [39] =    Expenses related to Portfolio Problems [28] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [23] + Reversal of Reserves for Possible Losses on Loans, etc. [29] + Credit Costs for Trust Accounts [6]
(Reference) Breakdown of Credit-related Costs
Credit Costs for Trust Accounts			40												—				—				—				—
Reversal of (Provision for) General Reserve for Possible Losses on Loans			41				45,831				(91,972	)			830				(45,309	)			(97,245	)			51,935
Losses on Write-offs of Loans			42				(15,919	)			(1,081	)			(757	)			(17,758	)			(20,995	)			3,237
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			43				(9,991	)			(37,134	)			273				(46,853	)			(21,641	)			(25,211	)
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			44				—				(1,048	)			0				(1,048	)			(1,049	)			0
Reversal of (Provision for) Reserve for Contingencies			45				—				(1,756	)			(23	)			(1,780	)			(513	)			(1,266	)
Other (including Losses on Sales of Loans)			46				(290	)			(1,137	)			—				(1,428	)			2,507				(3,935	)
Total			47				19,630				(134,132	)			323				(114,178	)			(138,938	)			24,760

 

2-2

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Mizuho Financial Group, Inc.

 

Mizuho Bank

Non-Consolidated

 

						(Millions of yen)
						Fiscal 2012
										Change				Fiscal 2011
Gross Profits			1				827,475				28,805				798,669
Domestic Gross Profits			2				698,211				(3,902	)			702,114
Net Interest Income			3				488,838				(36,966	)			525,805
Net Fee and Commission Income			4				153,324				16,762				136,562
Net Trading Income			5				4,829				(671	)			5,500
Net Other Operating Income			6				51,219				16,973				34,246
International Gross Profits			7				129,263				32,708				96,555
Net Interest Income			8				24,986				5,418				19,567
Net Fee and Commission Income			9				11,988				805				11,182
Net Trading Income			10				(1,474	)			(18,635	)			17,161
Net Other Operating Income			11				93,763				45,119				48,643
General and Administrative Expenses (excluding Non-Recurring Losses)			12				(524,396	)			32,047				(556,444	)
Expense Ratio			13				63.3	%			(6.2	%)			69.6	%
Personnel Expenses			14				(182,712	)			8,977				(191,690	)
Non-Personnel Expenses			15				(313,863	)			21,547				(335,411	)
Premium for Deposit Insurance			16				(39,495	)			6,887				(46,383	)
Miscellaneous Taxes			17				(27,820	)			1,522				(29,343	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			18				303,078				60,853				242,225
Excluding Net Gains (Losses) related to Bonds			19				211,335				22,867				188,467
Reversal of (Provision for) General Reserve for Possible Losses on Loans			20				—				—				—
Net Business Profits			21				303,078				60,853				242,225
Net Gains (Losses) related to Bonds			22				91,742				37,985				53,757
Net Non-Recurring Gains (Losses)			23				(27,880	)			22,970				(50,850	)
Net Gains (Losses) related to Stocks			24				(26,893	)			(19,604	)			(7,288	)
Expenses related to Portfolio Problems			25				(27,368	)			(2,758	)			(24,610	)
Reversal of Reserves for Possible Losses on Loans, etc.			26				46,998				(15,676	)			62,675
Other			27				(20,617	)			61,009				(81,626	)
Ordinary Profits			28				275,197				83,823				191,374
Net Extraordinary Gains (Losses)			29				(11,998	)			24,570				(36,568	)
Net Gains (Losses) on Disposition of Fixed Assets			30				(4,303	)			(546	)			(3,756	)
Losses on Impairment of Fixed Assets			31				(7,694	)			(2,610	)			(5,083	)
Income before Income Taxes			32				263,198				108,393				154,805
Income Taxes - Current			33				(8,980	)			(8,543	)			(436	)
- Deferred			34				(19,713	)			4,500				(24,213	)
Net Income			35				234,505				104,350				130,155
Credit-related Costs			36				19,630				(18,434	)			38,064
* Credit-related Costs [36] =    Expenses related to Portfolio Problems [25] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [20] +  Reversal of Reserves for Possible Losses on Loans, etc. [26]
(Reference) Breakdown of Credit-related Costs
Reversal of (Provision for) General Reserve for Possible Losses on Loans			37				45,831				1,760				44,070
Losses on Write-offs of Loans			38				(15,919	)			(18,970	)			3,050
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			39				(9,991	)			(3,265	)			(6,726	)
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			40				—				—				—
Reversal of (Provision for) Reserve for Contingencies			41				—				—				—
Other (including Losses on Sales of Loans)			42				(290	)			2,039				(2,329	)
Total			43				19,630				(18,434	)			38,064

 

2-3

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Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

Non-Consolidated

 

						(Millions of yen)
						Fiscal 2012								Fiscal 2011
										Change
Gross Profits			1				735,075				53,313				681,761
Domestic Gross Profits			2				303,155				33,959				269,196
Net Interest Income			3				180,878				(8,336	)			189,214
Net Fee and Commission Income			4				66,569				6,458				60,111
Net Trading Income			5				24,312				6,698				17,614
Net Other Operating Income			6				31,395				29,138				2,256
International Gross Profits			7				431,919				19,353				412,565
Net Interest Income			8				220,823				15,025				205,797
Net Fee and Commission Income			9				92,480				17,670				74,810
Net Trading Income			10				19,816				16,159				3,657
Net Other Operating Income			11				98,799				(29,501	)			128,300
General and Administrative Expenses (excluding Non-Recurring Losses)			12				(241,048	)			3,820				(244,869	)
Expense Ratio			13				32.7	%			(3.1	%)			35.9	%
Personnel Expenses			14				(101,709	)			(9,115	)			(92,593	)
Non-Personnel Expenses			15				(128,045	)			11,372				(139,417	)
Premium for Deposit Insurance			16				(6,012	)			1,398				(7,410	)
Miscellaneous Taxes			17				(11,294	)			1,563				(12,857	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			18				494,026				57,133				436,892
Excluding Net Gains (Losses) related to Bonds			19				376,081				29,171				346,909
Reversal of (Provision for) General Reserve for Possible Losses on Loans			20				(91,972	)			(97,274	)			5,301
Net Business Profits			21				402,053				(40,140	)			442,194
Net Gains (Losses) related to Bonds			22				117,944				27,961				89,982
Net Non-Recurring Gains (Losses)			23				(142,357	)			(50,377	)			(91,980	)
Net Gains (Losses) related to Stocks			24				(95,656	)			(55,409	)			(40,246	)
Expenses related to Portfolio Problems			25				(53,256	)			(30,057	)			(23,199	)
Reversal of Reserves for Possible Losses on Loans, etc.			26				11,097				5,544				5,552
Other			27				(4,541	)			29,545				(34,087	)
Ordinary Profits			28				259,695				(90,518	)			350,214
Net Extraordinary Gains (Losses)			29				(1,922	)			(1,959	)			37
Net Gains (Losses) on Disposition of Fixed Assets			30				(321	)			(603	)			281
Losses on Impairment of Fixed Assets			31				(1,600	)			(1,356	)			(243	)
Income before Income Taxes			32				257,773				(92,478	)			350,251
Income Taxes - Current *			33				(6,713	)			33,634				(40,348	)
- Deferred			34				(212	)			42,488				(42,700	)
Net Income			35				250,846				(16,354	)			267,201
* Income Taxes - Current [33] includes Refund of Income Tax.
Credit-related Costs			36				(134,132	)			(121,787	)			(12,344	)
* Credit-related Costs [36]   =   Expenses related to Portfolio Problems [25] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [20] +  Reversal of Reserves for Possible Losses on Loans, etc. [26]   (Reference) Breakdown of Credit-related Costs
Reversal of (Provision for) General Reserve for Possible Losses on Loans			37				(91,972	)			(97,274	)			5,301
Losses on Write-offs of Loans			38				(1,081	)			(1,787	)			705
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			39				(37,134	)			(21,449	)			(15,685	)
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			40				(1,048	)			(1,049	)			0
Reversal of (Provision for) Reserve for Contingencies			41				(1,756	)			(694	)			(1,061	)
Other (including Losses on Sales of Loans)			42				(1,137	)			467				(1,605	)
Total			43				(134,132	)			(121,787	)			(12,344	)

 

2-4

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Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking

Non-Consolidated

 

						(Millions of yen)
						Fiscal 2012
										Change				Fiscal 2011
Gross Profits			1				123,557				(3,521	)			127,079
Domestic Gross Profits			2				113,042				(1,527	)			114,570
Net Interest Income			3				36,398				(1,837	)			38,235
Fiduciary Income			4				47,794				(656	)			48,450
Trust Fees for Loan Trust and Jointly Operated Designated Money Trust			5				2,885				(193	)			3,079
Credit Costs for Trust Accounts *			6				—				—				—
Net Fee and Commission Income			7				21,831				(489	)			22,320
Net Trading Income			8				1,907				(99	)			2,007
Net Other Operating Income			9				5,110				1,555				3,555
International Gross Profits			10				10,515				(1,994	)			12,509
Net Interest Income			11				4,646				159				4,486
Net Fee and Commission Income			12				(155	)			(42	)			(113	)
Net Trading Income			13				231				178				53
Net Other Operating Income			14				5,792				(2,289	)			8,082
General and Administrative Expenses (excluding Non-Recurring Losses)			15				(74,279	)			3,764				(78,043	)
Expense Ratio			16				60.1	%			(1.2	%)			61.4	%
Personnel Expenses			17				(33,926	)			1,106				(35,032	)
Non-Personnel Expenses			18				(38,104	)			2,486				(40,590	)
Premium for Deposit Insurance			19				(1,896	)			520				(2,416	)
Miscellaneous Taxes			20				(2,248	)			171				(2,420	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			21				49,278				242				49,036
Excluding Net Gains (Losses) related to Bonds			22				38,487				850				37,636
Reversal of (Provision for) General Reserve for Possible Losses on Loans			23				—				(2,563	)			2,563
Net Business Profits			24				49,278				(2,320	)			51,599
Net Gains (Losses) related to Bonds			25				10,791				(608	)			11,399
Net Non-Recurring Gains (Losses)			26				(14,422	)			1,116				(15,538	)
Net Gains (Losses) related to Stocks			27				(8,708	)			(5,895	)			(2,813	)
Expenses related to Portfolio Problems			28				(781	)			2,742				(3,523	)
Reversal of Reserves for Possible Losses on Loans, etc.			29				1,104				1,104				—
Other			30				(6,036	)			3,165				(9,201	)
Ordinary Profits			31				34,856				(1,204	)			36,060
Net Extraordinary Gains (Losses)			32				(1,086	)			(979	)			(107	)
Net Gains (Losses) on Disposition of Fixed Assets			33				(604	)			(499	)			(104	)
Losses on Impairment of Fixed Assets			34				(482	)			(480	)			(2	)
Income before Income Taxes			35				33,769				(2,184	)			35,953
Income Taxes     - Current			36				(10,751	)			(10,756	)			5
- Deferred			37				2,877				8,044				(5,167	)
Net Income			38				25,895				(4,896	)			30,791
*       Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) excludes the amounts of “Credit Costs for Trust Accounts” [6].
Credit-related Costs			39				323				1,283				(960	)
* Credit-related Costs [39] =    Expenses related to Portfolio Problems [28] + Reversal of (Provision for) General Reserve for   Possible Losses on Loans [23] + Reversal of Reserves for Possible Losses on Loans, etc. [29] +   Credit Costs for Trust Accounts [6]
(Reference) Breakdown of Credit-related Costs
Credit Costs for Trust Accounts			40				—				—				—
Reversal of (Provision for) General Reserve for Possible Losses on Loans			41				830				(1,732	)			2,563
Losses on Write-offs of Loans			42				(757	)			(238	)			(519	)
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			43				273				3,072				(2,799	)
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			44				0				(0	)			0
Reversal of (Provision for) Reserve for Contingencies			45				(23	)			181				(205	)
Other (including Losses on Sales of Loans)			46				—				—				—
Total			47				323				1,283				(960	)

 

2-5

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Mizuho Financial Group, Inc.

 

2. Interest Margins (Domestic Operations)

Non-Consolidated

Aggregated Figures of MHBK and MHCB

 

										(%)
										Fiscal 2012								Fiscal 2011
														Change
Return on Interest-Earning Assets							1				0.78				(0.07	)			0.86
Return on Loans and Bills Discounted							2				1.19				(0.04	)			1.24
Return on Securities							3				0.44				(0.05	)			0.49
Cost of Funding (including Expenses)							4				0.74				(0.07	)			0.81
Cost of Deposits and Debentures (including Expenses)							5				0.88				(0.08	)			0.97
Cost of Deposits and Debentures							6				0.06				(0.00	)			0.06
Cost of Other External Liabilities							7				0.24				(0.00	)			0.25
Net Interest Margin			(1	)-(4)			8				0.04				(0.00	)			0.04
Loan and Deposit Rate Margin (including Expenses)			(2	)-(5)			9				0.30				0.04				0.26
Loan and Deposit Rate Margin			(2	)-(6)			10				1.13				(0.03	)			1.17
*  Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).
*  Deposits and Debentures include Negotiable Certificates of Deposit (“NCDs”).
(Reference) After excluding loans to Deposit Insurance Corporation of Japan and Japanese government
Return on Loans and Bills Discounted							11				1.31				(0.06	)			1.38
Loan and Deposit Rate Margin (including Expenses)			(11	)-(5)			12				0.43				0.02				0.41
Loan and Deposit Rate Margin			(11	)-(6)			13				1.25				(0.05	)			1.31
Mizuho Bank
Return on Interest-Earning Assets							14				0.82				(0.09	)			0.92
Return on Loans and Bills Discounted							15				1.34				(0.04	)			1.38
Return on Securities							16				0.36				(0.06	)			0.42
Cost of Funding (including Expenses)							17				0.83				(0.08	)			0.91
Cost of Deposits and Debentures (including Expenses)							18				0.91				(0.08	)			0.99
Cost of Deposits and Debentures							19				0.05				(0.00	)			0.05
Cost of Other External Liabilities							20				0.17				(0.01	)			0.19
Net Interest Margin			(14	)-(17)			21				(0.00	)			(0.01	)			0.00
Loan and Deposit Rate Margin (including Expenses)			(15	)-(18)			22				0.43				0.04				0.38
Loan and Deposit Rate Margin			(15	)-(19)			23				1.29				(0.03	)			1.32
(Reference) After excluding loans to Deposit Insurance Corporation of Japan and Japanese government
Return on Loans and Bills Discounted							24				1.52				(0.07	)			1.59
Loan and Deposit Rate Margin (including Expenses)			(24	)-(18)			25				0.61				0.01				0.60
Loan and Deposit Rate Margin			(24	)-(19)			26				1.47				(0.06	)			1.53
Mizuho Corporate Bank
Return on Interest-Earning Assets							27				0.71				(0.04	)			0.75
Return on Loans and Bills Discounted							28				0.92				(0.04	)			0.96
Return on Securities							29				0.55				(0.02	)			0.57
Cost of Funding (including Expenses)							30				0.57				(0.06	)			0.64
Cost of Deposits and Debentures (including Expenses)							31				0.79				(0.09	)			0.89
Cost of Deposits and Debentures							32				0.10				0.00				0.09
Cost of Other External Liabilities							33				0.27				(0.00	)			0.28
Net Interest Margin			(27	)-(30)			34				0.13				0.02				0.11
Loan and Deposit Rate Margin (including Expenses)			(28	)-(31)			35				0.12				0.05				0.07
Loan and Deposit Rate Margin			(28	)-(32)			36				0.82				(0.04	)			0.86
(Reference) After excluding loans to Deposit Insurance Corporation of Japan and Japanese government
Return on Loans and Bills Discounted							37				0.97				(0.04	)			1.01
Loan and Deposit Rate Margin (including Expenses)			(37	)-(31)			38				0.17				0.04				0.12
Loan and Deposit Rate Margin			(37	)-(32)			39				0.86				(0.04	)			0.91
Mizuho Trust & Banking (3 domestic accounts)
Return on Interest-Earning Assets							40				0.87				(0.07	)			0.95
Return on Loans and Bills Discounted							41				1.11				(0.15	)			1.27
Return on Securities							42				0.70				0.05				0.65
Cost of Funding							43				0.18				(0.06	)			0.24
Cost of Deposits							44				0.11				(0.04	)			0.16
Net Interest Margin			(40	)-(43)			45				0.69				(0.01	)			0.71
Loan and Deposit Rate Margin			(41	)-(44)			46				0.99				(0.10	)			1.10

 

*		3 domestic accounts  =		banking accounts (domestic operations) + trust accounts with contracts indemnifying the principal amounts (loan trusts + jointly-managed money trusts)
*		Deposits include NCDs.

 

2-6

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Mizuho Financial Group, Inc.

 

3. Use and Source of Funds

Non-Consolidated

Aggregated Figures of MHBK and MHCB

 

		(Millions of yen, %)
		Fiscal 2012																Fiscal 2011
										Change
		Average Balance				Rate				Average Balance				Rate				Average Balance				Rate
(Total)
Use of Funds			132,713,555				0.96				7,740,074				(0.08	)			124,973,481				1.04
Loans and Bills Discounted			61,767,696				1.32				1,984,152				(0.01	)			59,783,543				1.33
Securities			48,372,735				0.63				2,993,260				(0.09	)			45,379,475				0.73
Source of Funds			131,801,831				0.27				7,540,111				(0.02	)			124,261,720				0.29
Deposits			77,376,847				0.10				2,015,010				(0.01	)			75,361,837				0.11
NCDs			13,035,676				0.23				1,744,066				0.00				11,291,610				0.23
Debentures			—				—				(85,550	)			(0.44	)			85,550				0.44
Call Money			14,234,076				0.25				826,272				(0.01	)			13,407,803				0.27
Payables under Repurchase Agreements			5,804,613				0.21				1,312,782				0.00				4,491,831				0.21
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			11,096,006				0.94				302,514				(0.07	)			10,793,492				1.01
(Domestic Operations)
Use of Funds			105,267,982				0.78				2,692,883				(0.07	)			102,575,098				0.86
Loans and Bills Discounted			48,237,465				1.19				(786,032	)			(0.04	)			49,023,497				1.24
Securities			37,855,273				0.44				269,943				(0.05	)			37,585,329				0.49
Source of Funds			104,577,815				0.14				2,545,634				(0.01	)			102,032,180				0.16
Deposits			65,516,196				0.05				1,295,234				(0.00	)			64,220,961				0.06
NCDs			9,640,086				0.10				437,334				(0.00	)			9,202,752				0.10
Debentures			—				—				(85,550	)			(0.44	)			85,550				0.44
Call Money			13,510,672				0.24				543,799				(0.00	)			12,966,873				0.25
Payables under Repurchase Agreements			468,934				0.12				(31,301	)			(0.00	)			500,235				0.12
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			8,348,707				0.25				242,449				(0.01	)			8,106,258				0.26
(International Operations)
Use of Funds			31,397,792				1.45				5,727,514				(0.23	)			25,670,278				1.69
Loans and Bills Discounted			13,530,230				1.76				2,770,184				(0.00	)			10,760,045				1.76
Securities			10,517,462				1.35				2,723,317				(0.51	)			7,794,145				1.87
Source of Funds			31,176,235				0.68				5,674,800				(0.13	)			25,501,434				0.81
Deposits			11,860,651				0.38				719,775				(0.04	)			11,140,875				0.43
NCDs			3,395,589				0.61				1,306,731				(0.16	)			2,088,858				0.77
Debentures			—				—				—				—				—				—
Call Money			723,403				0.35				282,473				(0.32	)			440,930				0.68
Payables under Repurchase Agreements			5,335,679				0.22				1,344,083				(0.00	)			3,991,595				0.22
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			2,747,299				3.05				60,064				(0.24	)			2,687,234				3.29

 

2-7

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Mizuho Financial Group, Inc.

 

Mizuho Bank

 

		(Millions of yen, %)
		Fiscal 2012																Fiscal 2011
										Change
		Average Balance				Rate				Average Balance				Rate				Average Balance				Rate
(Total)
Use of Funds			69,653,237				0.85				3,157,699				(0.09	)			66,495,538				0.95
Loans and Bills Discounted			31,715,028				1.32				(939,540	)			(0.03	)			32,654,569				1.36
Securities			24,914,218				0.45				2,570,589				(0.06	)			22,343,628				0.52
Source of Funds			70,575,426				0.11				3,184,886				(0.01	)			67,390,539				0.13
Deposits			57,689,782				0.05				1,561,963				(0.01	)			56,127,819				0.06
NCDs			1,711,529				0.06				203,423				(0.01	)			1,508,105				0.07
Debentures			—				—				(85,550	)			(0.44	)			85,550				0.44
Call Money			1,392,902				0.08				5,312				(0.00	)			1,387,590				0.08
Payables under Repurchase Agreements			498				0.09				(405	)			(0.00	)			903				0.09
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			6,025,568				0.45				522,742				(0.09	)			5,502,825				0.54
(Domestic Operations)
Use of Funds			65,918,377				0.82				2,375,134				(0.09	)			63,543,242				0.92
Loans and Bills Discounted			30,853,963				1.32				(1,005,964	)			(0.03	)			31,859,927				1.36
Securities			22,123,168				0.36				1,527,540				(0.06	)			20,595,628				0.42
Source of Funds			66,794,222				0.08				2,325,246				(0.00	)			64,468,975				0.09
Deposits			56,624,127				0.05				1,560,971				(0.00	)			55,063,155				0.05
NCDs			1,711,198				0.06				203,972				(0.01	)			1,507,226				0.07
Debentures			—				—				(85,550	)			(0.44	)			85,550				0.44
Call Money			1,392,902				0.08				6,093				(0.00	)			1,386,809				0.08
Payables under Repurchase Agreements			498				0.09				(405	)			(0.00	)			903				0.09
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			5,587,201				0.19				599,723				(0.02	)			4,987,478				0.22
(International Operations)
Use of Funds			4,495,463				1.18				1,028,753				(0.22	)			3,466,709				1.40
Loans and Bills Discounted			861,064				1.12				66,423				(0.00	)			794,641				1.13
Securities			2,791,049				1.20				1,043,049				(0.49	)			1,747,999				1.69
Source of Funds			4,541,807				0.62				1,105,829				(0.22	)			3,435,978				0.84
Deposits			1,065,655				0.21				991				(0.09	)			1,064,663				0.30
NCDs			330				0.28				(549	)			(0.00	)			879				0.29
Debentures			—				—				—				—				—				—
Call Money			—				—				(781	)			(0.19	)			781				0.19
Payables under Repurchase Agreements			—				—				—				—				—				—
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			438,366				3.69				(76,980	)			0.00				515,347				3.69

 

2-8

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Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

 

		(Millions of yen, %)
		Fiscal 2012																Fiscal 2011
										Change
		Average Balance				Rate				Average Balance				Rate				Average Balance				Rate
(Total)
Use of Funds			63,060,318				1.07				4,582,375				(0.08	)			58,477,943				1.15
Loans and Bills Discounted			30,052,667				1.31				2,923,693				0.01				27,128,974				1.30
Securities			23,458,517				0.83				422,670				(0.09	)			23,035,846				0.93
Source of Funds			61,226,404				0.45				4,355,224				(0.04	)			56,871,180				0.49
Deposits			19,687,064				0.26				453,047				(0.01	)			19,234,017				0.27
NCDs			11,324,147				0.26				1,540,643				0.00				9,783,504				0.25
Debentures			—				—				—				—				—				—
Call Money			12,841,174				0.27				820,960				(0.02	)			12,020,213				0.29
Payables under Repurchase Agreements			5,804,115				0.21				1,313,187				0.00				4,490,927				0.21
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			5,070,438				1.52				(220,228	)			0.02				5,290,666				1.50
(Domestic Operations)
Use of Funds			39,349,605				0.71				317,749				(0.04	)			39,031,856				0.75
Loans and Bills Discounted			17,383,502				0.96				219,932				(0.04	)			17,163,570				1.00
Securities			15,732,104				0.55				(1,257,596	)			(0.02	)			16,989,701				0.57
Source of Funds			37,783,593				0.26				220,387				(0.02	)			37,563,205				0.28
Deposits			8,892,068				0.09				(265,737	)			0.00				9,157,806				0.08
NCDs			7,928,888				0.11				233,362				(0.00	)			7,695,525				0.11
Debentures			—				—				—				—				—				—
Call Money			12,117,770				0.26				537,705				(0.01	)			11,580,064				0.27
Payables under Repurchase Agreements			468,436				0.12				(30,896	)			(0.00	)			499,332				0.12
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			2,761,505				0.35				(357,274	)			0.02				3,118,780				0.32
(International Operations)
Use of Funds			26,902,329				1.50				4,698,761				(0.22	)			22,203,568				1.73
Loans and Bills Discounted			12,669,165				1.80				2,703,760				(0.01	)			9,965,404				1.82
Securities			7,726,412				1.40				1,680,267				(0.51	)			6,046,145				1.92
Source of Funds			26,634,428				0.69				4,568,971				(0.12	)			22,065,456				0.81
Deposits			10,794,995				0.40				718,784				(0.04	)			10,076,211				0.44
NCDs			3,395,259				0.61				1,307,280				(0.16	)			2,087,978				0.77
Debentures			—				—				—				—				—				—
Call Money			723,403				0.35				283,254				(0.32	)			440,149				0.68
Payables under Repurchase Agreements			5,335,679				0.22				1,344,083				(0.00	)			3,991,595				0.22
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			2,308,932				2.92				137,045				(0.27	)			2,171,886				3.19

 

2-9

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Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking (Banking Account)

 

		(Millions of yen, %)
		Fiscal 2012																Fiscal 2011
										Change
		Average Balance				Rate				Average Balance				Rate				Average Balance				Rate
(Total)
Use of Funds			5,999,752				0.90				43,302				(0.08	)			5,956,450				0.99
Loans and Bills Discounted			3,414,990				1.10				122,105				(0.15	)			3,292,884				1.26
Securities			1,893,485				0.78				(154,952	)			0.02				2,048,438				0.76
Source of Funds			5,809,875				0.23				(23,007	)			(0.05	)			5,832,882				0.28
Deposits			2,093,972				0.14				(82,951	)			(0.06	)			2,176,924				0.20
NCDs			943,916				0.12				38,292				(0.01	)			905,623				0.13
Debentures			—				—				—				—				—				—
Call Money			754,682				0.11				100,005				(0.00	)			654,676				0.12
Payables under Repurchase Agreements			—				—				—				—				—				—
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			546,203				0.17				(236,709	)			0.02				782,912				0.15
(Domestic Operations)
Use of Funds			5,502,613				0.88				(119,416	)			(0.08	)			5,622,029				0.96
Loans and Bills Discounted			3,329,939				1.11				98,671				(0.15	)			3,231,268				1.26
Securities			1,358,819				0.70				(279,710	)			0.05				1,638,529				0.65
Source of Funds			5,308,781				0.22				(186,910	)			(0.06	)			5,495,691				0.28
Deposits			2,052,942				0.13				(96,572	)			(0.06	)			2,149,514				0.20
NCDs			943,916				0.12				38,292				(0.01	)			905,623				0.13
Debentures			—				—				—				—				—				—
Call Money			739,810				0.10				96,413				(0.00	)			643,397				0.11
Payables under Repurchase Agreements			—				—				—				—				—				—
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			541,069				0.17				(240,608	)			0.02				781,678				0.15
(International Operations)
Use of Funds			1,201,989				0.58				247,963				(0.09	)			954,025				0.68
Loans and Bills Discounted			85,051				0.85				23,434				(0.20	)			61,616				1.06
Securities			534,666				1.00				124,757				(0.19	)			409,908				1.19
Source of Funds			1,205,943				0.20				249,147				(0.01	)			956,795				0.21
Deposits			41,030				0.33				13,621				0.09				27,409				0.23
NCDs			—				—				—				—				—				—
Debentures			—				—				—				—				—				—
Call Money			14,871				0.50				3,591				(0.10	)			11,279				0.60
Payables under Repurchase Agreements			—				—				—				—				—				—
Bills Sold			—				—				—				—				—				—
Commercial Paper			—				—				—				—				—				—
Borrowed Money			5,133				0.59				3,899				(0.03	)			1,233				0.63

 

2-10

---

Mizuho Financial Group, Inc.

 

4. Net Gains/Losses on Securities

Non-Consolidated

Aggregated Figures of the 3 Banks

 

		(Millions of yen)
		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Bonds			220,478				65,339				155,139
Gains on Sales and Others			276,914				54,295				222,619
Losses on Sales and Others			(43,403	)			12,285				(55,689	)
Impairment (Devaluation)			(7,980	)			1,778				(9,759	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			(5,052	)			(3,021	)			(2,031	)

 

		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Stocks			(131,258	)			(80,909	)			(50,348	)
Gains on Sales			37,079				12,808				24,270
Losses on Sales			(37,664	)			(9,162	)			(28,501	)
Impairment (Devaluation)			(126,872	)			(85,370	)			(41,502	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			(22	)			94				(116	)
Gains (Losses) on Derivatives other than for Trading			(3,778	)			720				(4,498	)

Mizuho Bank

 

		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Bonds			91,742				37,985				53,757
Gains on Sales and Others			106,724				37,796				68,928
Losses on Sales and Others			(12,593	)			1,033				(13,626	)
Impairment (Devaluation)			(1,501	)			717				(2,218	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			(887	)			(1,561	)			673

 

		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Stocks			(26,893	)			(19,604	)			(7,288	)
Gains on Sales			11,602				2,252				9,349
Losses on Sales			(7,705	)			(4,345	)			(3,360	)
Impairment (Devaluation)			(28,607	)			(17,448	)			(11,158	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			(10	)			(12	)			1
Gains (Losses) on Derivatives other than for Trading			(2,172	)			(51	)			(2,121	)

 

2-11

---

Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

		(Millions of yen)
		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Bonds			117,944				27,961				89,982
Gains on Sales and Others			159,577				17,164				142,412
Losses on Sales and Others			(29,925	)			11,029				(40,955	)
Impairment (Devaluation)			(6,479	)			623				(7,102	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			(5,227	)			(855	)			(4,372	)
		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Stocks			(95,656	)			(55,409	)			(40,246	)
Gains on Sales			22,536				10,568				11,968
Losses on Sales			(28,324	)			(6,994	)			(21,330	)
Impairment (Devaluation)			(88,344	)			(59,836	)			(28,508	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			(5	)			113				(118	)
Gains (Losses) on Derivatives other than for Trading			(1,518	)			739				(2,257	)
Mizuho Trust & Banking
		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Bonds			10,791				(608	)			11,399
Gains on Sales and Others			10,613				(665	)			11,278
Losses on Sales and Others			(883	)			223				(1,107	)
Impairment (Devaluation)			—				438				(438	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			1,061				(604	)			1,666
		Fiscal 2012								Fiscal 2011
						Change
Net Gains (Losses) related to Stocks			(8,708	)			(5,895	)			(2,813	)
Gains on Sales			2,939				(12	)			2,952
Losses on Sales			(1,633	)			2,177				(3,810	)
Impairment (Devaluation)			(9,920	)			(8,085	)			(1,835	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			(6	)			(6	)			0
Gains (Losses) on Derivatives other than for Trading			(87	)			31				(119	)

 

2-12

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Mizuho Financial Group, Inc.

 

5. Unrealized Gains/Losses on Securities

 

•

Securities for which it is deemed to be extremely difficult to determine the fair value are excluded.

Consolidated

(1) Other Securities

 

		(Millions of yen)
		As of March 31, 2013																As of September 30, 2012												As of March 31, 2012
		Book Value (=Fair  Value)				Unrealized Gains/Losses												Unrealized Gains/Losses												Unrealized Gains/Losses
										Gains				Losses								Gains				Losses								Gains				Losses
Other Securities			50,508,516				881,442				1,148,913				267,470				788				546,693				545,905				83,866				649,922				566,056
Japanese Stocks			2,776,036				710,082				843,264				133,181				11,908				319,508				307,600				156,584				453,564				296,979
Japanese Bonds			34,043,250				113,475				134,247				20,771				71,347				99,245				27,898				56,426				91,943				35,516
Japanese Government Bonds			30,805,150				88,210				89,672				1,462				54,683				57,140				2,457				51,814				55,236				3,422
Other			13,689,229				57,884				171,401				113,516				(82,466	)			127,940				210,407				(129,144	)			104,415				233,560
Foreign Bonds			11,844,809				17,905				74,016				56,110				52,158				93,339				41,181				(25,189	)			49,148				74,338

 

*	In addition to “Securities” on the consolidated balance sheets, NCDs in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included.

*	Fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the 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 consolidated balance sheet date.

*	The book values of Other Securities which have readily determinable fair value are stated at fair value, so Unrealized Gains/Losses indicate the difference between book values on the consolidated balance sheets and the acquisition costs.

*	Unrealized Gains/Losses include ¥3,311 million, ¥(3,079) million and ¥(7,343) million, which were recognized in the statement of income for March 31, 2013, September 30, 2012 and March 31, 2012, respectively, by applying the fair-value hedge method and others.

As a result, the base amounts to be recorded directly to Net Assets after tax and consolidation adjustments as of March 31, 2013, September 30, 2012 and March 31, 2012 are ¥878,131 million, ¥3,868 million and ¥91,209 million, respectively.

*

Unrealized Gains (Losses) on Other Securities, net of Taxes (recorded directly to Net Assets after tax and consolidation adjustments, excluding the amount recognized in the statement of income by applying the fair-value hedge method and others, including translation differences regarding securities, the fair values of which are extremely difficult to determine) as of March 31, 2013, September 30, 2012 and March 31, 2012 are ¥615,883 million, ¥(33,425) million and ¥37,857 million, respectively.

(2) Bonds Held to Maturity

 

		(Millions of yen)
		As of March 31, 2013																As of September 30, 2012												As of March 31, 2012
		Book Value				Unrealized Gains/Losses												Unrealized Gains/Losses												Unrealized Gains/Losses
										Gains				Losses								Gains				Losses								Gains				Losses
Bonds Held to Maturity			3,000,403				19,940				20,022				81				18,741				18,741				—				14,525				14,586				61

Non-Consolidated

(1) Other Securities

Aggregated Figures of the 3 Banks

 

		(Millions of yen)
		As of March 31, 2013																As of September 30, 2012												As of March 31, 2012
		Book Value (=Fair Value)				Unrealized Gains/Losses												Unrealized Gains/Losses												Unrealized Gains/Losses
										Gains				Losses								Gains				Losses								Gains				Losses
Other Securities			50,225,581				1,026,258				1,299,158				272,899				27,410				541,229				513,818				67,052				629,828				562,775
Japanese Stocks			3,009,256				884,089				1,024,291				140,202				26,754				314,018				287,264				133,667				443,707				310,040
Japanese Bonds			33,819,589				113,231				133,999				20,768				71,176				99,028				27,852				56,079				91,545				35,466
Japanese Government Bonds			30,732,679				88,144				89,606				1,462				54,472				56,927				2,454				51,421				54,839				3,417
Other			13,396,735				28,937				140,866				111,928				(70,520	)			128,181				198,702				(122,693	)			94,575				217,269
Foreign Bonds			11,752,743				18,308				73,347				55,038				65,260				95,878				30,618				(8,246	)			50,916				59,163
Mizuho Bank
Other Securities			22,759,429				287,833				384,505				96,672				62,374				186,606				124,231				464				174,175				173,711
Japanese Stocks			842,950				225,050				282,159				57,109				21,310				92,815				71,504				(3,819	)			100,941				104,760
Japanese Bonds			18,057,624				46,472				64,136				17,664				36,098				55,132				19,033				23,425				48,314				24,889
Japanese Government Bonds			15,833,808				35,816				36,761				945				30,499				31,309				810				31,336				32,444				1,107
Other			3,858,854				16,310				38,209				21,898				4,966				38,659				33,692				(19,141	)			24,919				44,061
Foreign Bonds			3,250,885				13,961				26,583				12,622				22,824				29,569				6,744				(2,963	)			9,402				12,366
Mizuho Corporate Bank
Other Securities			25,654,770				659,176				826,068				166,891				(52,136	)			314,232				366,368				34,742				399,624				364,882
Japanese Stocks			1,976,240				597,902				674,741				76,839				(8,740	)			191,868				200,608				106,780				296,260				189,480
Japanese Bonds			14,776,401				61,784				64,558				2,773				30,079				38,284				8,205				26,434				36,771				10,337
Japanese Government Bonds			13,971,138				48,441				48,644				202				19,954				21,024				1,069				14,464				16,623				2,158
Other			8,902,128				(510	)			86,768				87,278				(73,474	)			84,079				157,554				(98,472	)			66,592				165,064
Foreign Bonds			8,023,552				2,951				44,966				42,015				38,756				62,590				23,833				(5,191	)			40,143				45,335
Mizuho Trust & Banking
Other Securities			1,811,381				79,248				88,584				9,335				17,172				40,390				23,218				31,845				56,027				24,181
Japanese Stocks			190,065				61,136				67,390				6,254				14,184				29,335				15,150				30,706				46,505				15,799
Japanese Bonds			985,563				4,975				5,305				329				4,998				5,611				612				6,219				6,458				239
Japanese Government Bonds			927,733				3,886				4,200				314				4,018				4,592				574				5,620				5,771				151
Other			635,752				13,136				15,888				2,751				(2,011	)			5,443				7,455				(5,079	)			3,063				8,143
Foreign Bonds			478,305				1,396				1,796				400				3,679				3,718				39				(91	)			1,370				1,461

 

*	In addition to “Securities” indicated on the balance sheets, NCDs in “Cash and Due from Banks” and certain items in “Other Debt Purchased” are also included.

*	Fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the 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 balance sheet date.

*	The book values of Other Securities which have readily determinable fair value are stated at fair value, so Unrealized Gains/Losses indicate the difference between book values on the balance sheets and the acquisition costs.

*	Unrealized Gains/Losses include ¥3,311 million, ¥2,528 million and ¥5,342 million, which were recognized in the statement of income for March 31, 2013, September 30, 2012 and March 31, 2012, respectively, by applying the fair-value hedge method and others.

As a result, the base amounts to be recorded directly to Net Assets after tax adjustment as of March 31, 2013, September 30, 2012 and March 31, 2012 are ¥1,022,947 million, ¥24,881 million and ¥61,710 million, respectively.

*

Unrealized Gains (Losses) on Other Securities, net of Taxes (recorded directly to Net Assets after tax adjustment, excluding the amount recognized in the statement of income by applying the fair-value hedge method and others, including translation differences regarding securities, the fair values of which are extremely difficult to determine) as of March 31, 2013, September 30, 2012 and March 31, 2012 are as follows:

 

		(Millions of yen)
		As of March 31, 2013				As of September 30, 2012				As of March 31, 2012
Aggregated Figures			730,865				(4,514	)			17,457
Mizuho Bank			209,629				41,915				(10,556	)
Mizuho Corporate Bank			459,836				(59,383	)			2,024
Mizuho Trust & Banking			61,399				12,952				25,988

 

2-13

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Mizuho Financial Group, Inc.

 

(2) Bonds Held to Maturity

Aggregated Figures of the 3 Banks

 

		(Millions of yen)
		As of March 31, 2013																As of September 30, 2012												As of March 31, 2012
		Book Value				Unrealized Gains/Losses												Unrealized Gains/Losses												Unrealized Gains/Losses
										Gains				Losses								Gains				Losses								Gains				Losses
Aggregated Figures			3,000,403				19,940				20,022				81				18,741				18,741				—				14,524				14,586				61
Mizuho Bank			3,000,403				19,940				20,022				81				18,741				18,741				—				14,524				14,586				61
Mizuho Corporate Bank			—				—				—				—				—				—				—				—				—				—
Mizuho Trust & Banking			—				—				—				—				—				—				—				—				—				—

(3) Investment in Subsidiaries and Affiliates

Aggregated Figures of the 3 Banks

 

		(Millions of yen)
		As of March 31, 2013																As of September 30, 2012												As of March 31, 2012
		Book Value				Unrealized Gains/Losses												Unrealized Gains/Losses												Unrealized Gains/Losses
										Gains				Losses								Gains				Losses								Gains				Losses
Aggregated Figures			44,205				5,850				5,850				—				(12,566	)			—				12,566				(4,891	)			—				4,891
Mizuho Bank			—				—				—				—				—				—				—				—				—				—
Mizuho Corporate Bank			44,205				5,850				5,850				—				(12,566	)			—				12,566				(4,891	)			—				4,891
Mizuho Trust & Banking			—				—				—				—				—				—				—				—				—				—

(Reference)

Unrealized Gains/Losses on Other Securities

(the base amount to be recorded directly to Net Assets after tax and other necessary adjustments)

For certain Other Securities, Unrealized Gains/Losses were recognized in the statement of income by applying the fair-value hedge method and others. They were excluded from Unrealized Gains (Losses) on Other Securities. These adjusted Unrealized Gains/Losses were the base amount, which was to be recorded directly to Net Assets after tax and other necessary adjustments.

The base amount was as follows:

Consolidated

 

		(Millions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
		Unrealized Gains/Losses
						Change from September 30, 2012				Change from March 31, 2012				Unrealized Gains/Losses				Unrealized Gains/Losses
Other Securities			878,131				874,263				786,921				3,868				91,209
Japanese Stocks			710,198				698,290				553,892				11,908				156,305
Japanese Bonds			113,475				42,128				58,597				71,347				54,878
Japanese Government Bonds			88,210				33,526				37,945				54,683				50,265
Other			54,457				133,845				174,432				(79,387	)			(119,974	)

Non-Consolidated

Aggregated Figures of the 3 Banks

 

		(Millions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
		Unrealized Gains/Losses
						Change from September 30, 2012				Change from March 31, 2012				Unrealized Gains/Losses				Unrealized Gains/Losses
Other Securities			1,022,947				998,065				961,237				24,881				61,710
Japanese Stocks			884,204				857,450				750,815				26,754				133,388
Japanese Bonds			113,231				42,055				58,701				71,176				54,530
Japanese Government Bonds			88,144				33,671				38,271				54,472				49,872
Other			25,510				98,560				151,719				(73,049	)			(126,209	)

 

2-14

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Mizuho Financial Group, Inc.

 

6. Projected Redemption Amounts for Securities

 

•

The redemption schedule by term for Bonds Held to Maturity and Other Securities with maturities is as follows:

Non-Consolidated

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		Maturity as of March 31, 2013																Change																Maturity as of March 31, 2012
		Within 1 year				1 - 5 years				5 - 10 years				Over 10 years				Within 1 year				1 - 5 years				5 - 10 years				Over 10 years				Within 1 year				1 - 5 years				5 - 10 years				Over 10 years
Japanese Bonds			12,761.4				18,108.1				4,600.0				992.8				(380.8	)			(2,267.9	)			1,654.7				(220.8	)			13,142.3				20,376.1				2,945.2				1,213.7
Japanese Government Bonds			12,198.9				16,935.2				4,285.4				5.0				(200.0	)			(1,930.2	)			1,668.0				(223.0	)			12,398.9				18,865.4				2,617.4				228.0
Japanese Local Government Bonds			34.7				139.0				64.1				0.8				(16.3	)			15.2				(27.3	)			(0.0	)			51.0				123.7				91.5				0.8
Japanese Corporate Bonds			527.7				1,033.9				250.4				987.0				(164.5	)			(353.0	)			14.1				2.1				692.2				1,386.9				236.3				984.8
Other			1,311.6				5,939.1				2,101.8				2,842.5				192.7				1,869.6				356.8				(55.1	)			1,118.9				4,069.4				1,745.0				2,897.6
Mizuho Bank
Japanese Bonds			7,071.1				10,962.5				2,318.3				556.9				(1,163.3	)			(551.4	)			1,211.0				(127.4	)			8,234.5				11,514.0				1,107.3				684.4
Japanese Government Bonds			6,581.0				10,044.3				2,083.0				—				(979.6	)			(322.4	)			1,143.0				(82.0	)			7,560.6				10,366.7				940.0				82.0
Japanese Local Government Bonds			32.2				128.9				50.9				—				(16.4	)			17.0				24.0				—				48.6				111.8				26.9				—
Japanese Corporate Bonds			457.8				789.2				184.4				556.9				(167.3	)			(246.1	)			44.0				(45.4	)			625.2				1,035.4				140.3				602.4
Other			117.7				1,907.6				328.0				1,338.7				22.4				441.0				37.5				56.4				95.3				1,466.6				290.5				1,282.2
Mizuho Corporate Bank
Japanese Bonds			5,414.3				6,835.0				1,898.8				435.8				741.4				(1,242.7	)			406.4				(53.4	)			4,672.9				8,077.8				1,492.4				489.3
Japanese Government Bonds			5,345.4				6,625.9				1,827.4				5.0				733.6				(1,117.8	)			490.0				(101.0	)			4,611.8				7,743.7				1,337.4				106.0
Japanese Local Government Bonds			2.3				9.2				10.3				0.8				(0.0	)			(1.6	)			(51.3	)			(0.0	)			2.4				10.9				61.7				0.8
Japanese Corporate Bonds			66.5				199.9				61.1				430.0				7.8				(123.3	)			(32.1	)			47.5				58.6				323.2				93.3				382.4
Other			1,185.7				3,580.0				1,727.9				1,503.7				197.0				1,241.6				394.2				(111.5	)			988.6				2,338.4				1,333.7				1,615.3
Mizuho Trust & Banking
Japanese Bonds			275.9				310.5				382.7				—				41.1				(473.7	)			37.2				(40.0	)			234.8				784.2				345.5				40.0
Japanese Government Bonds			272.5				265.0				375.0				—				46.0				(490.0	)			35.0				(40.0	)			226.5				755.0				340.0				40.0
Japanese Local Government Bonds			0.1				0.8				2.8				—				0.1				(0.1	)			—				—				—				0.9				2.8				—
Japanese Corporate Bonds			3.3				44.7				4.9				—				(5.0	)			16.4				2.2				—				8.3				28.2				2.6				—
Other			8.1				451.3				45.8				—				(26.8	)			186.9				(74.9	)			(0.0	)			34.9				264.3				120.8				0.0

 

2-15

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Mizuho Financial Group, Inc.

 

7. Overview of Derivative Transactions Qualifying for Hedge Accounting

Non-Consolidated

 

•

Notional Amounts of Interest Rate Swaps (qualifying for hedge accounting (deferred method)) by Remaining Contractual Term

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		As of March 31, 2013																Change																As of March 31, 2012
		Within 1 year				1 - 5 years				Over 5 years				Total				Within 1 year				1 - 5 years				Over 5 years				Total				Within 1 year				1 - 5 years				Over 5 years				Total
Receive Fixed / Pay Float			4,487.6				12,930.0				6,540.1				23,957.8				(6,225.7	)			(1,341.1	)			2,279.7				(5,287.1	)			10,713.4				14,271.1				4,260.4				29,245.0
Receive Float / Pay Fixed			1,096.0				2,304.8				2,496.7				5,897.5				(1,185.0	)			52.5				211.2				(921.2	)			2,281.0				2,252.3				2,285.4				6,818.8
Receive Float / Pay Float			90.0				80.0				—				170.0				75.2				(60.0	)			(30.0	)			(14.8	)			14.8				140.0				30.0				184.8
Receive Fixed / Pay Fixed			—				—				—				—				—				—				—				—				—				—				—				—
Total			5,673.6				15,314.8				9,036.8				30,025.4				(7,335.5	)			(1,348.5	)			2,460.9				(6,223.2	)			13,009.2				16,663.4				6,575.9				36,248.6
Mizuho Bank
Receive Fixed / Pay Float			3,236.8				4,413.8				1,658.4				9,309.1				(5,756.6	)			(1,677.9	)			1,098.4				(6,336.1	)			8,993.5				6,091.8				559.9				15,645.3
Receive Float / Pay Fixed			—				18.7				17.3				36.1				—				18.7				(157.7	)			(138.9	)			—				—				175.1				175.1
Receive Float / Pay Float			—				—				—				—				—				—				—				—				—				—				—				—
Receive Fixed / Pay Fixed			—				—				—				—				—				—				—				—				—				—				—				—
Total			3,236.8				4,432.6				1,675.7				9,345.3				(5,756.6	)			(1,659.1	)			940.7				(6,475.0	)			8,993.5				6,091.8				735.0				15,820.4
Mizuho Corporate Bank
Receive Fixed / Pay Float			1,250.7				8,516.1				4,596.7				14,363.6				(469.0	)			336.8				1,041.2				909.0				1,719.8				8,179.3				3,555.5				13,454.6
Receive Float / Pay Fixed			1,056.0				2,221.0				2,473.0				5,750.0				(1,105.0	)			43.7				392.6				(668.6	)			2,161.0				2,177.3				2,080.3				6,418.7
Receive Float / Pay Float			90.0				80.0				—				170.0				75.2				(60.0	)			(30.0	)			(14.8	)			14.8				140.0				30.0				184.8
Receive Fixed / Pay Fixed			—				—				—				—				—				—				—				—				—				—				—				—
Total			2,396.7				10,817.2				7,069.7				20,283.7				(1,498.8	)			320.5				1,403.8				225.5				3,895.6				10,496.6				5,665.8				20,058.1
Mizuho Trust & Banking
Receive Fixed / Pay Float			—				—				285.0				285.0				—				—				140.0				140.0				—				—				145.0				145.0
Receive Float / Pay Fixed			40.0				65.0				6.3				111.3				(80.0	)			(10.0	)			(23.6	)			(113.6	)			120.0				75.0				30.0				225.0
Receive Float / Pay Float			—				—				—				—				—				—				—				—				—				—				—				—
Receive Fixed / Pay Fixed			—				—				—				—				—				—				—				—				—				—				—				—
Total			40.0				65.0				291.3				396.3				(80.0	)			(10.0	)			116.3				26.3				120.0				75.0				175.0				370.0

(Reference)

Deferred Hedge Gains/Losses of Derivative Transactions Qualifying for Hedge Accounting

 

		(Billions of yen)
		As of March 31, 2013												Change												As of March 31, 2012
		Deferred Hedge Gains/Losses												Deferred Hedge Gains/Losses												Deferred Hedge Gains/Losses
		Gains				Losses								Gains				Losses								Gains				Losses
Aggregated Figures			745.8				563.1				182.7				(25.1	)			10.0				(35.2	)			771.0				553.0				217.9
Mizuho Bank			70.9				72.1				(1.2	)			6.8				(9.9	)			16.8				64.0				82.1				(18.0	)
Mizuho Corporate Bank			603.0				417.2				185.7				(40.4	)			16.1				(56.6	)			643.4				401.0				242.4
Mizuho Trust & Banking			71.9				73.7				(1.7	)			8.4				3.8				4.6				63.4				69.9				(6.4	)

 

Note: Above figures reflect all derivative transactions qualifying for hedge accounting, and are before net of applicable income taxes.

 

2-16

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Mizuho Financial Group, Inc.

 

8. Employee Retirement Benefits

Non-Consolidated

Projected Benefit Obligations

Aggregated Figures of the 3 Banks

 

				(Millions of yen)
				As of March 31, 2013				Change				As of March 31, 2012
Projected Benefit Obligation		(A)			1,173,721				(12,604	)			1,186,325
Discount Rate (%)					1.7				—				1.7
Total Fair Value of Plan Assets		(B)			1,388,176				178,055				1,210,121
Unrecognized Actuarial Differences		(C)			179,404				(211,545	)			390,949
Prepaid Pension Cost		(D)			393,859				(20,886	)			414,745
Reserve for Employee Retirement Benefits		(A)-(B)-(C)+(D)			—				—				—
Mizuho Bank
Projected Benefit Obligations		(A)			701,110				(6,420	)			707,530
Discount Rate (%)					1.7				—				1.7
Total Fair Value of Plan Assets		(B)			843,921				118,236				725,684
Unrecognized Actuarial Differences		(C)			85,394				(136,221	)			221,616
Prepaid Pension Cost		(D)			228,204				(11,565	)			239,770
Reserve for Employee Retirement Benefits		(A)-(B)-(C)+(D)			—				—				—
Mizuho Corporate Bank
Projected Benefit Obligations		(A)			339,301				(5,750	)			345,051
Discount Rate (%)					1.7				—				1.7
Total Fair Value of Plan Assets		(B)			395,098				43,010				352,088
Unrecognized Actuarial Differences		(C)			69,425				(55,537	)			124,962
Prepaid Pension Cost		(D)			125,222				(6,776	)			131,998
Reserve for Employee Retirement Benefits		(A)-(B)-(C)+(D)			—				—				—
Mizuho Trust & Banking
Projected Benefit Obligations		(A)			133,309				(434	)			133,743
Discount Rate (%)					1.7				—				1.7
Total Fair Value of Plan Assets		(B)			149,156				16,807				132,348
Unrecognized Actuarial Differences		(C)			24,584				(19,786	)			44,370
Prepaid Pension Cost		(D)			40,431				(2,544	)			42,976
Reserve for Employee Retirement Benefits		(A)-(B)-(C)+(D)			—				—				—

 

2-17

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Mizuho Financial Group, Inc.

 

Income (Expenses) related to Employee Retirement Benefits

Aggregated Figures of the 3 Banks

 

						(Millions of yen)
						Fiscal 2012								Fiscal 2011
										Change
Service Cost							(22,061	)			(4,482	)			(17,578	)
Interest Cost							(20,167	)			6,806				(26,973	)
Expected Return on Plan Assets							28,754				3,563				25,190
Accumulation (Amortization) of Unrecognized Actuarial Differences							(62,810	)			8,850				(71,661	)
Losses on Return of Retirement Benefits Trust							—				27,728				(27,728	)
Other							(4,638	)			(706	)			(3,932	)
Total							(80,923	)			41,760				(122,683	)
Mizuho Bank
Service Cost							(14,193	)			(3,051	)			(11,142	)
Interest Cost							(12,028	)			3,927				(15,955	)
Expected Return on Plan Assets							17,415				5,137				12,277
Accumulation (Amortization) of Unrecognized Actuarial Differences							(38,431	)			6,753				(45,184	)
Losses on Return of Retirement Benefits Trust							—				27,728				(27,728	)
Other							(3,279	)			(786	)			(2,492	)
Total							(50,517	)			39,708				(90,225	)
Mizuho Corporate Bank
Service Cost							(4,993	)			(883	)			(4,109	)
Interest Cost							(5,865	)			2,127				(7,993	)
Expected Return on Plan Assets							8,064				(1,635	)			9,700
Accumulation (Amortization) of Unrecognized Actuarial Differences							(17,192	)			1,721				(18,914	)
Other							(758	)			153				(912	)
Total							(20,745	)			1,483				(22,229	)
Mizuho Trust & Banking
Service Cost							(2,874	)			(546	)			(2,327	)
Interest Cost							(2,273	)			750				(3,024	)
Expected Return on Plan Assets							3,274				61				3,212
Accumulation (Amortization) of Unrecognized Actuarial Differences							(7,186	)			376				(7,562	)
Other							(600	)			(73	)			(526	)
Total							(9,660	)			567				(10,228	)
Consolidated
						(Millions of yen)
						As of March 31, 2013 (Fiscal 2012)								As of March 31, 2012 (Fiscal 2011)
										Change
Projected Benefit Obligations			(A	)			1,326,443				(2,379	)			1,328,823
Total Fair Value of Plan Assets			(B	)			1,512,741				200,855				1,311,886
Unrecognized Actuarial Differences			(C	)			193,916				(224,976	)			418,892
Prepaid Pension Cost			(D	)			418,846				(19,161	)			438,008
Reserve for Employee Retirement Benefits			(A)-(B)-(C)+(D	)			38,632				2,579				36,053
Income (Expenses) related to Employee Retirement Benefits							(96,982	)			21,546				(118,529	)

 

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Mizuho Financial Group, Inc.

 

9. Capital Ratio (Basel III)

Starting FY2012, due to regulatory changes, Basel III is applied to financial institutions subject to international standard.

Basel II is applied to financial institution subject to domestic standard as before.

Mizuho Financial Group

International Standard (Basel III)

 

		(%, Billions of yen)
		Consolidated
		As of March 31, 2013 (Preliminary)
(1)    Total Capital Ratio			14.18
(2)    Tier 1 Capital Ratio			11.02
(3)    Common Equity Tier 1 Capital Ratio			8.16
(4)    Total Capital			8,344.5
(5)    Tier 1 Capital			6,487.4
(6)    Common Equity Tier 1 Capital			4,803.8
(7)    Risk weighted Assets			58,823.5
(8)    Total Required Capital (7)X8%			4,705.8
Mizuho  Bank   Domestic Standard (Basel II)
		Consolidated				Non-Consolidated
		As of March 31, 2013 (Preliminary)				As of March 31, 2013 (Preliminary)
(1)    Capital Adequacy Ratio			15.04				15.46
(2)    Tier 1 Capital Ratio			11.66				11.49
(3)    Tier 1 Capital			2,381.8				2,294.1
(4)    Tier 2 Capital			920.8				920.1
(5)    Deductions for Total Risk-based Capital			231.5				126.9
(6)    Total Risk-based Capital			3,071.2				3,087.3
(7)    Risk-weighted Assets			20,412.3				19,959.0
(8)    Total Required Capital (7)X8%			1,632.9				1,596.7
*  On a basis in which distribution of all of the shares of Mizuho Securities to Mizuho Financial Group as a dividend in kind (¥125.7 billion) on April 1, 2013 is deducted from Tier 1 Capital
Mizuho Corporate Bank   International Standard (Basel III)
(1)    Total Capital Ratio			13.89				15.33
(2)    Tier 1 Capital Ratio			11.03				12.18
(3)    Common Equity Tier 1 Capital Ratio			8.65				9.16
(4)    Total Capital			5,130.0				5,007.7
(5)    Tier 1 Capital			4,071.3				3,979.9
(6)    Common Equity Tier 1 Capital			3,195.0				2,993.0
(7)    Risk weighted Assets			36,908.3				32,663.9
(8)    Total Required Capital (7)X8%			2,952.6				2,613.1
*  On a basis in which distribution of all of the shares of Mizuho Securities to Mizuho Financial Group as a dividend in kind (¥424.4 billion) on April 1, 2013 is deducted from Common Equity Tier 1 Capital
Mizuho  Trust & Banking   International Standard (Basel III)
(1)    Total Capital Ratio			17.22				17.44
(2)    Tier 1 Capital Ratio			13.24				13.46
(3)    Common Equity Tier 1 Capital Ratio			13.24				13.46
(4)    Total Capital			447.5				446.3
(5)    Tier 1 Capital			344.2				344.5
(6)    Common Equity Tier 1 Capital			344.2				344.5
(7)    Risk weighted Assets			2,598.0				2,559.4
(8)    Total Required Capital (7)X8%			207.8				204.7
(Reference)   Mizuho Bank   International Standard (Basel III)
(1)    Total Capital Ratio			14.08				13.95
(2)    Tier 1 Capital Ratio			10.13				9.93
(3)    Common Equity Tier 1 Capital Ratio			8.90				8.86
(4)    Total Capital			3,258.6				3,162.9
(5)    Tier 1 Capital			2,343.8				2,251.5
(6)    Common Equity Tier 1 Capital			2,060.5				2,008.8
(7)    Risk weighted Assets			23,128.6				22,668.0
(8)    Total Required Capital (7)X8%			1,850.2				1,813.4
*  On a basis in which distribution of all of the shares of Mizuho Securities to Mizuho Financial Group as a dividend in kind (¥125.7 billion) on April 1, 2013 is deducted from Common Equity Tier 1 Capital

 

2-19

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Mizuho Financial Group, Inc.

 

II. REVIEW OF CREDITS

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

 

•

The figures below are presented net of partial direct write-offs.

 

•

Treatment of accrued interest is based on the results of the self-assessment of assets.

(All loans to obligors classified in the self-assessment of assets as Bankrupt Obligors, Substantially Bankrupt Obligors, and Intensive Control Obligors are categorized as non-accrual loans.)

Consolidated

 

		(Millions of yen, %)
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
						%				Change from September 30, 2012				%				Change from March 31, 2012				%								%								%
Loans to Bankrupt Obligors			33,688				0.04				(351	)			(0.00	)			(7,078	)			(0.01	)			34,040				0.05				40,767				0.06
Non-Accrual Delinquent Loans			637,911				0.94				44,068				0.01				55,293				0.03				593,842				0.93				582,618				0.91
Loans Past Due for 3 Months or More			3,468				0.00				(16,963	)			(0.02	)			(16,778	)			(0.02	)			20,431				0.03				20,246				0.03
Restructured Loans			694,732				1.02				112,153				0.11				105,217				0.10				582,579				0.91				589,515				0.92
Total			1,369,801				2.02				138,906				0.09				136,653				0.09				1,230,894				1.93				1,233,147				1.93
Total Loans			67,536,882				100.00				3,886,670								3,736,373								63,650,211				100.00				63,800,509				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			232,731								(21,050	)							(39,212	)							253,782								271,943
Trust Account
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
						%				Change from September 30, 2012				%				Change from March 31, 2012				%								%								%
Loans to Bankrupt Obligors			—				—				—				—				—				—				—				—				—				—
Non-Accrual Delinquent Loans			3,060				16.01				(8	)			2.67				(17	)			3.34				3,069				13.33				3,078				12.66
Loans Past Due for 3 Months or More			—				—				—				—				—				—				—				—				—				—
Restructured Loans			—				—				—				—				—				—				—				—				—				—
Total			3,060				16.01				(8	)			2.67				(17	)			3.34				3,069				13.33				3,078				12.66
Total Loans			19,114				100.00				(3,905	)							(5,195	)							23,020				100.00				24,310				100.00
Consolidated + Trust Account
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
						%				Change from September 30, 2012				%				Change from March 31, 2012				%								%								%
Loans to Bankrupt Obligors			33,688				0.04				(351	)			(0.00	)			(7,078	)			(0.01	)			34,040				0.05				40,767				0.06
Non-Accrual Delinquent Loans			640,971				0.94				44,059				0.01				55,275				0.03				596,912				0.93				585,696				0.91
Loans Past Due for 3 Months or More			3,468				0.00				(16,963	)			(0.02	)			(16,778	)			(0.02	)			20,431				0.03				20,246				0.03
Restructured Loans			694,732				1.02				112,153				0.11				105,217				0.10				582,579				0.91				589,515				0.92
Total			1,372,861				2.03				138,897				0.09				136,635				0.09				1,233,963				1.93				1,236,225				1.93
Total Loans			67,555,997				100.00				3,882,765								3,731,177								63,673,232				100.00				63,824,819				100.00

 

*	Trust account denotes trust accounts with contracts indemnifying the principal amounts.

 

2-20

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Mizuho Financial Group, Inc.

 

Non-Consolidated

Aggregated Figures of the 3 Banks

(Banking Account + Trust Account)

 

		(Millions of yen, %)
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
						%				Change from September 30, 2012				%				Change from March 31, 2012				%								%								%
Loans to Bankrupt Obligors			30,703				0.04				(1,518	)			(0.00	)			(7,307	)			(0.01	)			32,222				0.05				38,010				0.05
Non-Accrual Delinquent Loans			623,597				0.92				46,336				0.01				62,036				0.04				577,261				0.90				561,561				0.87
Loans Past Due for 3 Months or More			3,456				0.00				(16,971	)			(0.02	)			(16,789	)			(0.02	)			20,428				0.03				20,246				0.03
Restructured Loans			577,340				0.85				118,891				0.13				110,650				0.12				458,449				0.72				466,690				0.73
Total			1,235,098				1.83				146,737				0.12				148,589				0.13				1,088,360				1.71				1,086,508				1.70
Total Loans			67,207,294				100.00				3,760,365								3,304,321								63,446,928				100.00				63,902,973				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			208,842								(16,378	)							(36,940	)							225,221								245,783
Mizuho Bank
Loans to Bankrupt Obligors			10,701				0.03				551				0.00				(3,171	)			(0.00	)			10,150				0.03				13,873				0.04
Non-Accrual Delinquent Loans			444,791				1.37				(27,235	)			(0.12	)			(4,570	)			(0.00	)			472,027				1.49				449,361				1.38
Loans Past Due for 3 Months or More			3,368				0.01				(16,969	)			(0.05	)			(16,544	)			(0.05	)			20,337				0.06				19,913				0.06
Restructured Loans			318,546				0.98				22,493				0.04				22,257				0.07				296,053				0.93				296,289				0.91
Total			777,408				2.40				(21,160	)			(0.12	)			(2,028	)			0.01				798,568				2.53				779,436				2.39
Total Loans			32,274,275				100.00				771,618								(266,610	)							31,502,656				100.00				32,540,885				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			119,844								(15,763	)							(36,698	)							135,608								156,543
Mizuho Corporate Bank
Loans to Bankrupt Obligors			19,911				0.06				(2,097	)			(0.01	)			(3,228	)			(0.01	)			22,009				0.07				23,140				0.08
Non-Accrual Delinquent Loans			158,546				0.50				74,882				0.21				68,451				0.18				83,663				0.29				90,094				0.32
Loans Past Due for 3 Months or More			—				—				—				—				—				—				—				—				—				—
Restructured Loans			249,910				0.80				94,746				0.25				95,174				0.24				155,163				0.54				154,736				0.55
Total			428,368				1.37				167,531				0.45				160,396				0.41				260,836				0.91				267,971				0.95
Total Loans			31,187,804				100.00				2,747,493								3,129,003								28,440,310				100.00				28,058,800				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			85,779								2,825								3,199								82,953								82,579
Mizuho Trust & Banking   (Banking Account)
Loans to Bankrupt Obligors			90				0.00				27				0.00				(907	)			(0.02	)			62				0.00				997				0.03
Non-Accrual Delinquent Loans			17,199				0.46				(1,301	)			(0.06	)			(1,827	)			(0.11	)			18,501				0.53				19,027				0.58
Loans Past Due for 3 Months or More			88				0.00				(2	)			(0.00	)			(245	)			(0.00	)			90				0.00				333				0.01
Restructured Loans			8,883				0.23				1,651				0.03				(6,781	)			(0.23	)			7,232				0.20				15,664				0.47
Total			26,261				0.70				375				(0.03	)			(9,760	)			(0.39	)			25,886				0.74				36,022				1.09
Total Loans			3,726,100				100.00				245,159								447,124								3,480,940				100.00				3,278,976				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			3,218								(3,440	)							(3,441	)							6,658								6,660
(Trust Account)
Loans to Bankrupt Obligors			—				—				—				—				—				—				—				—				—				—
Non-Accrual Delinquent Loans			3,060				16.01				(8	)			2.67				(17	)			3.34				3,069				13.33				3,078				12.66
Loans Past Due for 3 Months or More			—				—				—				—				—				—				—				—				—				—
Restructured Loans			—				—				—				—				—				—				—				—				—				—
Total			3,060				16.01				(8	)			2.67				(17	)			3.34				3,069				13.33				3,078				12.66
Total Loans			19,114				100.00				(3,905	)							(5,195	)							23,020				100.00				24,310				100.00

 

*	Trust account denotes trust accounts with contracts indemnifying the principal amounts.

 

2-21

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Mizuho Financial Group, Inc.

 

2. Status of Reserves for Possible Losses on Loans

Consolidated

 

		(Millions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Reserves for Possible Losses on Loans			739,990				88,773				48,230				651,217				691,760
General Reserve for Possible Losses on Loans			503,017				62,470				55,428				440,546				447,588
Specific Reserve for Possible Losses on Loans			235,915				25,254				(8,246	)			210,661				244,162
Reserve for Possible Losses on Loans to Restructuring Countries			1,058				1,048				1,048				9				9
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			270,388				(26,454	)			(57,262	)			296,842				327,650
Non-Consolidated
Aggregated Figures of the 3 Banks
		(Millions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Reserves for Possible Losses on Loans			646,022				90,846				63,138				555,176				582,883
General Reserve for Possible Losses on Loans			456,541				62,883				45,309				393,657				411,231
Specific Reserve for Possible Losses on Loans			188,423				26,914				16,780				161,508				171,643
Reserve for Possible Losses on Loans to Restructuring Countries			1,058				1,048				1,048				9				9
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			245,677				(21,383	)			(54,834	)			267,061				300,511
Mizuho Bank
Reserves for Possible Losses on Loans			295,863				(33,169	)			(48,811	)			329,032				344,674
General Reserve for Possible Losses on Loans			194,264				(26,931	)			(45,831	)			221,195				240,095
Specific Reserve for Possible Losses on Loans			101,599				(6,237	)			(2,979	)			107,836				104,578
Reserve for Possible Losses on Loans to Restructuring Countries			—				—				—				—				—
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			151,722				(18,238	)			(47,816	)			169,961				199,538
Mizuho Corporate Bank
Reserves for Possible Losses on Loans			333,355				123,877				113,117				209,477				220,237
General Reserve for Possible Losses on Loans			250,868				88,872				91,972				161,996				158,896
Specific Reserve for Possible Losses on Loans			81,428				33,957				20,096				47,471				61,332
Reserve for Possible Losses on Loans to Restructuring Countries			1,057				1,048				1,048				9				9
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			90,237				3,305				2,039				86,932				88,198
Mizuho Trust & Banking
Reserves for Possible Losses on Loans			16,804				138				(1,167	)			16,666				17,971
General Reserve for Possible Losses on Loans			11,408				942				(830	)			10,465				12,239
Specific Reserve for Possible Losses on Loans			5,395				(804	)			(336	)			6,200				5,731
Reserve for Possible Losses on Loans to Restructuring Countries			0				(0	)			(0	)			0				0
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			3,717				(6,450	)			(9,057	)			10,168				12,775

 

*	Reserve for Possible Losses on Entrusted Loans ( ¥66 million, ¥69 million and ¥74 million for March 31, 2013, September 30, 2012 and March 31, 2012, respectively) is not included in the above figures for Trust Account.

 

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Mizuho Financial Group, Inc.

 

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

Consolidated

 

		(%)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Mizuho Financial Group			54.02				1.11				(2.07	)			52.90				56.09

 

*  Above figures are presented net of partial direct write-offs.
Non-Consolidated
		(%)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Total			52.43				1.28				(1.36	)			51.15				53.79
Mizuho Bank			38.05				(3.14	)			(6.16	)			41.20				44.22
Mizuho Corporate Bank			77.81				(2.49	)			(4.36	)			80.30				82.18
Mizuho Trust & Banking (Banking Account)			63.98				(0.39	)			14.09				64.38				49.89

 

*	Above figures are presented net of partial direct write-offs.

 

2-23

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Mizuho Financial Group, Inc.

 

4. Status of Disclosed Claims under the Financial Reconstruction Law (“FRL”)

Consolidated

 

		(Millions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September  30, 2012				Change from March 31, 2012
Claims against Bankrupt and Substantially Bankrupt Obligors			175,461				12,380				(1,964	)			163,081				177,426
Claims with Collection Risk			563,763				30,354				36,460				533,409				527,302
Claims for Special Attention			698,263				95,186				88,429				603,077				609,834
Total			1,437,488				137,920				122,924				1,299,568				1,314,563
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			269,736				(23,196	)			(51,647	)			292,932				321,383
Trust Account
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September  30, 2012				Change from March 31, 2012
Claims against Bankrupt and Substantially Bankrupt Obligors			—				—				—				—				—
Claims with Collection Risk			3,060				(8	)			(17	)			3,069				3,078
Claims for Special Attention			—				—				—				—				—
Total			3,060				(8	)			(17	)			3,069				3,078
Consolidated + Trust Account
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Claims against Bankrupt and Substantially Bankrupt Obligors			175,461				12,380				(1,964	)			163,081				177,426
Claims with Collection Risk			566,823				30,345				36,442				536,478				530,380
Claims for Special Attention			698,263				95,186				88,429				603,077				609,834
Total			1,440,548				137,911				122,906				1,302,637				1,317,642

 

*	Trust account denotes trust accounts with contracts indemnifying the principal amounts.

 

2-24

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Mizuho Financial Group, Inc.

 

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Millions of yen, %)
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
						%				Change from September 30, 2012				%				Change from March 31, 2012				%								%								%
Claims against Bankrupt and Substantially Bankrupt Obligors			159,181				0.21				15,535				0.00				2,100				(0.01	)			143,646				0.20				157,081				0.22
Claims with Collection Risk			553,297				0.73				25,737				(0.01	)			31,749				(0.00	)			527,559				0.74				521,547				0.73
Claims for Special Attention			580,860				0.76				101,916				0.08				93,850				0.08				478,943				0.67				487,009				0.68
Sub-total			1,293,339				1.71				143,189				0.08				127,700				0.07				1,150,149				1.63				1,165,638				1.63
Normal Claims			74,293,594				98.28				4,884,708				(0.08	)			4,253,674				(0.07	)			69,408,886				98.36				70,039,919				98.36
Total			75,586,934				100.00				5,027,897								4,381,375								70,559,036				100.00				71,205,558				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			245,354								(18,373	)							(49,219	)							263,728								294,574
Mizuho Bank
Claims against Bankrupt and Substantially Bankrupt Obligors			105,589				0.30				17,288				0.04				10,188				0.03				88,301				0.26				95,400				0.27
Claims with Collection Risk			365,235				1.06				(47,288	)			(0.16	)			(21,921	)			(0.05	)			412,523				1.22				387,156				1.11
Claims for Special Attention			321,915				0.93				5,524				(0.00	)			5,712				0.02				316,390				0.94				316,202				0.91
Sub-total			792,739				2.30				(24,476	)			(0.13	)			(6,019	)			(0.00	)			817,216				2.43				798,759				2.30
Normal Claims			33,632,394				97.69				861,501				0.13				(188,939	)			0.00				32,770,892				97.56				33,821,333				97.69
Total			34,425,133				100.00				837,025								(194,959	)							33,588,108				100.00				34,620,093				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			151,722								(18,238	)							(47,816	)							169,961								199,538
Mizuho Corporate Bank
Claims against Bankrupt and Substantially Bankrupt Obligors			23,299				0.06				(1,883	)			(0.01	)			(7,557	)			(0.03	)			25,182				0.07				30,857				0.09
Claims with Collection Risk			169,745				0.45				73,906				0.16				55,305				0.10				95,839				0.28				114,439				0.34
Claims for Special Attention			249,910				0.66				94,746				0.20				95,174				0.20				155,163				0.46				154,736				0.46
Sub-total			442,955				1.18				166,770				0.35				142,922				0.28				276,185				0.82				300,033				0.90
Normal Claims			36,859,819				98.81				3,786,013				(0.35	)			3,995,499				(0.28	)			33,073,805				99.17				32,864,320				99.09
Total			37,302,775				100.00				3,952,783								4,138,421								33,349,991				100.00				33,164,353				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			90,237								3,305								2,039								86,932								88,198
Mizuho Trust & Banking   (Banking Account)
Claims against Bankrupt and Substantially Bankrupt Obligors			30,292				0.78				131				(0.04	)			(530	)			(0.11	)			30,161				0.83				30,823				0.90
Claims with Collection Risk			15,256				0.39				(871	)			(0.05	)			(1,616	)			(0.09	)			16,127				0.44				16,872				0.49
Claims for Special Attention			9,034				0.23				1,645				0.02				(7,036	)			(0.23	)			7,389				0.20				16,070				0.47
Sub-total			54,583				1.42				904				(0.07	)			(9,183	)			(0.45	)			53,678				1.49				63,766				1.87
Normal Claims			3,785,326				98.57				241,089				0.07				452,293				0.45				3,544,237				98.50				3,333,033				98.12
Total			3,839,910				100.00				241,993								443,109								3,597,916				100.00				3,396,800				100.00
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs			3,394								(3,440	)							(3,442	)							6,835								6,837
(Trust Account)
Claims against Bankrupt and Substantially Bankrupt Obligors			—				—				—				—				—				—				—				—				—				—
Claims with Collection Risk			3,060				16.01				(8	)			2.67				(17	)			3.34				3,069				13.33				3,078				12.66
Claims for Special Attention			—				—				—				—				—				—				—				—				—				—
Sub-total			3,060				16.01				(8	)			2.67				(17	)			3.34				3,069				13.33				3,078				12.66
Normal Claims			16,054				83.98				(3,896	)			(2.67	)			(5,178	)			(3.34	)			19,951				86.66				21,232				87.33
Total			19,114				100.00				(3,905	)							(5,195	)							23,020				100.00				24,310				100.00

 

*	Trust account denotes trust accounts with contracts indemnifying the principal amounts.

 

2-25

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Mizuho Financial Group, Inc.

 

5. Coverage on Disclosed Claims under the FRL

Non-Consolidated

(1) Disclosed Claims under the FRL and Coverage Amount

Aggregated Figures of the 3 Banks (Banking Account)

 

		(Billions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Claims against Bankrupt and Substantially Bankrupt Obligors			159.1				15.5				2.1				143.6				157.0
Collateral, Guarantees, and equivalent			137.2				13.0				3.4				124.2				133.8
Reserve for Possible Losses			21.9				2.5				(1.3	)			19.4				23.2
Claims with Collection Risk			550.2				25.7				31.7				524.4				518.4
Collateral, Guarantees, and equivalent			283.0				(0.9	)			12.6				284.0				270.3
Reserve for Possible Losses			178.6				24.6				18.3				154.0				160.3
Claims for Special Attention			580.8				101.9				93.8				478.9				487.0
Collateral, Guarantees, and equivalent			222.8				71.0				79.6				151.8				143.1
Reserve for Possible Losses			112.2				17.2				9.7				95.0				102.5
Total			1,290.2				143.1				127.7				1,147.0				1,162.5
Collateral, Guarantees, and equivalent			643.1				83.0				95.7				560.0				547.4
Reserve for Possible Losses			312.8				44.4				26.7				268.4				286.1
Mizuho Bank
Claims against Bankrupt and Substantially Bankrupt Obligors			105.5				17.2				10.1				88.3				95.4
Collateral, Guarantees, and equivalent			103.4				19.0				11.1				84.4				92.3
Reserve for Possible Losses			2.0				(1.7	)			(0.9	)			3.8				3.0
Claims with Collection Risk			365.2				(47.2	)			(21.9	)			412.5				387.1
Collateral, Guarantees, and equivalent			203.8				(39.2	)			(17.4	)			243.0				221.2
Reserve for Possible Losses			99.4				(4.4	)			(2.0	)			103.9				101.4
Claims for Special Attention			321.9				5.5				5.7				316.3				316.2
Collateral, Guarantees, and equivalent			112.7				10.4				6.7				102.3				105.9
Reserve for Possible Losses			55.5				(4.3	)			(4.1	)			59.8				59.6
Total			792.7				(24.4	)			(6.0	)			817.2				798.7
Collateral, Guarantees, and equivalent			420.0				(9.7	)			0.4				429.8				419.5
Reserve for Possible Losses			157.0				(10.5	)			(7.1	)			167.6				164.1
Mizuho Corporate Bank
Claims against Bankrupt and Substantially Bankrupt Obligors			23.2				(1.8	)			(7.5	)			25.1				30.8
Collateral, Guarantees, and equivalent			16.0				(5.8	)			(6.9	)			21.8				22.9
Reserve for Possible Losses			7.2				3.9				(0.6	)			3.3				7.9
Claims with Collection Risk			169.7				73.9				55.3				95.8				114.4
Collateral, Guarantees, and equivalent			70.1				38.4				31.4				31.7				38.7
Reserve for Possible Losses			73.9				29.9				20.7				44.0				53.2
Claims for Special Attention			249.9				94.7				95.1				155.1				154.7
Collateral, Guarantees, and equivalent			107.5				60.6				74.2				46.8				33.3
Reserve for Possible Losses			55.3				21.4				15.0				33.9				40.2
Total			442.9				166.7				142.9				276.1				300.0
Collateral, Guarantees, and equivalent			193.7				93.2				98.6				100.4				95.0
Reserve for Possible Losses			136.6				55.3				35.1				81.2				101.4
Mizuho Trust & Banking
(Banking Account)
Claims against Bankrupt and Substantially Bankrupt Obligors			30.2				0.1				(0.5	)			30.1				30.8
Collateral, Guarantees, and equivalent			17.7				(0.1	)			(0.8	)			17.9				18.5
Reserve for Possible Losses			12.5				0.2				0.2				12.2				12.2
Claims with Collection Risk			15.2				(0.8	)			(1.6	)			16.1				16.8
Collateral, Guarantees, and equivalent			9.0				(0.1	)			(1.3	)			9.1				10.3
Reserve for Possible Losses			5.2				(0.8	)			(0.3	)			6.0				5.6
Claims for Special Attention			9.0				1.6				(7.0	)			7.3				16.0
Collateral, Guarantees, and equivalent			2.5				(0.1	)			(1.2	)			2.6				3.8
Reserve for Possible Losses			1.4				0.1				(1.2	)			1.2				2.6
Total			54.5				0.9				(9.1	)			53.6				63.7
Collateral, Guarantees, and equivalent			29.3				(0.3	)			(3.4	)			29.7				32.7
Reserve for Possible Losses			19.2				(0.3	)			(1.3	)			19.5				20.5
(Reference) Trust Account
Claims against Bankrupt and Substantially Bankrupt Obligors			—				—				—				—				—
Collateral, Guarantees, and equivalent			—				—				—				—				—
Claims with Collection Risk			3.0				(0.0	)			(0.0	)			3.0				3.0
Collateral, Guarantees, and equivalent			3.0				(0.0	)			(0.0	)			3.0				3.0
Claims for Special Attention			—				—				—				—				—
Collateral, Guarantees, and equivalent			—				—				—				—				—
Total			3.0				(0.0	)			(0.0	)			3.0				3.0
Collateral, Guarantees, and equivalent			3.0				(0.0	)			(0.0	)			3.0				3.0

 

*	Trust account denotes trust accounts with contracts indemnifying the principal amounts.

 

2-26

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Mizuho Financial Group, Inc.

 

(2) Coverage Ratio

Aggregated Figures of the 3 Banks (Banking Account)

 

		(Billions of yen)
		As of March 31, 2013
						Change from September 30, 2012				Change from March 31, 2012				As of September 30, 2012				As of March 31, 2012
Coverage Amount			956.0				127.5				122.4				828.5				833.5
Reserves for Possible Losses on Loans			312.8				44.4				26.7				268.4				286.1
Collateral, Guarantees, and equivalent			643.1				83.0				95.7				560.0				547.4
		(%)
Coverage Ratio			74.1				1.8				2.3				72.3				71.7
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			83.9				0.3				0.8				83.5				83.0
Claims for Special Attention			57.6				6.1				7.2				51.5				50.4
Claims against Special Attention Obligors			58.3				5.2				6.4				53.0				51.8
Reserve Ratio against Non-collateralized Claims
		(%)
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			66.8				2.8				2.2				64.0				64.6
Claims for Special Attention			31.3				2.3				1.5				29.0				29.8
Claims against Special Attention Obligors			31.9				2.0				1.2				29.9				30.6
(Reference) Reserve Ratio
		(%)
Claims against Special Attention Obligors			19.59				(0.48	)			(1.69	)			20.08				21.28
Claims against Watch Obligors excluding Special Attention Obligors			6.27				1.88				1.58				4.38				4.68
Claims against Normal Obligors			0.11				(0.01	)			(0.01	)			0.12				0.12
Mizuho Bank
		(Billions of yen)
Coverage Amount			577.0				(20.3	)			(6.6	)			597.4				583.7
Reserves for Possible Losses on Loans			157.0				(10.5	)			(7.1	)			167.6				164.1
Collateral, Guarantees, and equivalent			420.0				(9.7	)			0.4				429.8				419.5
		(%)
Coverage Ratio			72.7				(0.3	)			(0.2	)			73.1				73.0
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			83.0				(1.0	)			(0.3	)			84.1				83.3
Claims for Special Attention			52.2				1.0				(0.1	)			51.2				52.3
Claims against Special Attention Obligors			54.3				0.9				0.7				53.3				53.6
Reserve Ratio against Non-collateralized Claims
		(%)
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			61.6				0.2				0.4				61.3				61.1
Claims for Special Attention			26.5				(1.4	)			(1.8	)			27.9				28.3
Claims against Special Attention Obligors			27.8				(0.6	)			(0.7	)			28.4				28.6
(Reference) Reserve Ratio
		(%)
Claims against Special Attention Obligors			17.61				(0.95	)			(0.97	)			18.57				18.59
Claims against Watch Obligors excluding Special Attention Obligors			3.67				0.05				(0.51	)			3.61				4.19
Claims against Normal Obligors			0.15				(0.00	)			(0.00	)			0.16				0.16
Mizuho Corporate Bank
		(Billions of yen)
Coverage Amount			330.3				148.6				133.8				181.7				196.5
Reserves for Possible Losses on Loans			136.6				55.3				35.1				81.2				101.4
Collateral, Guarantees, and equivalent			193.7				93.2				98.6				100.4				95.0
		(%)
Coverage Ratio			74.5				8.7				9.0				65.8				65.4
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			84.9				5.8				4.5				79.0				80.4
Claims for Special Attention			65.1				13.1				17.6				52.0				47.5
Claims against Special Attention Obligors			65.4				13.1				15.4				52.3				50.0
Reserve Ratio against Non-collateralized Claims
		(%)
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			74.2				5.6				3.9				68.6				70.3
Claims for Special Attention			38.8				7.5				5.7				31.3				33.1
Claims against Special Attention Obligors			39.8				6.7				4.3				33.0				35.4
(Reference) Reserve Ratio
		(%)
Claims against Special Attention Obligors			22.87				(0.66	)			(4.60	)			23.54				27.48
Claims against Watch Obligors excluding Special Attention Obligors			8.66				3.51				3.27				5.15				5.39
Claims against Normal Obligors			0.08				(0.00	)			(0.01	)			0.09				0.09

 

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Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking (Banking Account)

 

		(Billions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Coverage Amount			48.5				(0.7	)			(4.7	)			49.2				53.2
Reserves for Possible Losses on Loans			19.2				(0.3	)			(1.3	)			19.5				20.5
Collateral, Guarantees, and equivalent			29.3				(0.3	)			(3.4	)			29.7				32.7
		(%)
Coverage Ratio			88.9				(2.8	)			5.4				91.8				83.5
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			93.8				(0.6	)			(0.8	)			94.5				94.7
Claims for Special Attention			43.8				(8.7	)			3.5				52.6				40.3
Claims against Special Attention Obligors			40.9				(11.8	)			4.2				52.8				36.6
Reserve Ratio against Non-collateralized Claims
		(%)
Claims against Bankrupt and Substantially Bankrupt Obligors			100.0				—				—				100.0				100.0
Claims with Collection Risk			84.9				(2.4	)			(1.4	)			87.3				86.4
Claims for Special Attention			21.7				(4.0	)			0.1				25.7				21.5
Claims against Special Attention Obligors			20.9				(4.8	)			0.4				25.8				20.5
(Reference) Reserve Ratio
		(%)
Claims against Special Attention Obligors			15.67				(0.74	)			(0.69	)			16.41				16.37
Claims against Watch Obligors excluding Special Attention Obligors			4.85				0.01				(0.28	)			4.83				5.13
Claims against Normal Obligors			0.09				(0.01	)			(0.03	)			0.11				0.12

 

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Mizuho Financial Group, Inc.

 

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

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account)

(Billions of yen)

 

 

Notes: 1.		Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention.
2.		The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRL represents the amount of claims other than loans included in Disclosed Claims under the FRL.

 

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7. Results of Removal of NPLs from the Balance Sheet

Non-Consolidated

(1) Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors and Claims with Collection Risk

(under the FRL)

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen)
						Fiscal 2010								Fiscal 2011								Fiscal 2012
		Up to Fiscal 2009				As of September 30, 2010				As of March 31, 2011				As of September 30, 2011				As of March 31, 2012				As of September 30, 2012				As of March 31, 2013
																										Mizuho Bank				Mizuho Corporate Bank				Mizuho Trust & Banking				Aggregated Figures of the 3 Banks				Change from September 30, 2012
Claims against Bankrupt and Substantially Bankrupt Obligors			2,781.6				213.8				174.7				125.9				90.9				79.0				36.5				2.8				28.8				68.2				(10.8	)
Claims with Collection Risk			9,553.7				470.4				283.9				215.5				195.5				164.7				123.6				11.8				5.9				141.5				(23.2	)
Amount Categorized as above up to Fiscal 2009			12,335.3				684.3				458.6				341.5				286.4				243.8				160.1				14.7				34.8				209.8				(34.0	)
of which the amount which was in the process of being removed from the balance sheet			1,366.6				160.6				122.0				81.2				55.4				43.3				30.7				2.4				0.5				33.8				(9.5	)
Claims against Bankrupt and Substantially Bankrupt Obligors							31.9				24.8				13.1				7.3				6.5				5.4				—				0.3				5.7				(0.8	)
Claims with Collection Risk							140.6				86.7				59.6				52.9				39.6				34.8				0.6				0.1				35.6				(4.0	)
Amount Newly Categorized as above during the First Half of Fiscal 2010							172.5				111.6				72.8				60.3				46.2				40.2				0.6				0.4				41.3				(4.8	)
of which the amount which was in the process of being removed from the balance sheet							28.8				24.7				13.1				7.3				6.5				5.4				—				0.3				5.7				(0.8	)
Claims against Bankrupt and Substantially Bankrupt Obligors											31.8				13.9				12.7				5.9				3.8				1.5				0.1				5.5				(0.4	)
Claims with Collection Risk											182.5				110.3				81.1				72.3				37.5				22.1				3.0				62.7				(9.6	)
Amount Newly Categorized as above during the Second Half of Fiscal 2010											214.4				124.3				93.8				78.3				41.3				23.7				3.1				68.2				(10.0	)
of which the amount which was in the process of being removed from the balance sheet											30.5				13.8				8.8				5.9				3.8				—				0.1				3.9				(2.0	)
Claims against Bankrupt and Substantially Bankrupt Obligors															22.7				13.9				11.6				7.3				—				0.1				7.4				(4.2	)
Claims with Collection Risk															134.7				81.1				51.8				39.0				1.3				0.2				40.7				(11.1	)
Amount Newly Categorized as above during the First Half of Fiscal 2011															157.4				95.1				63.5				46.3				1.3				0.4				48.2				(15.3	)
of which the amount which was in the process of being removed from the balance sheet															22.7				11.1				8.1				6.3				—				0.1				6.4				(1.6	)
Claims against Bankrupt and Substantially Bankrupt Obligors																			32.0				23.7				4.2				16.2				0.2				20.7				(3.0	)
Claims with Collection Risk																			110.7				77.2				39.1				8.8				2.6				50.6				(26.5	)
Amount Newly Categorized as above during the Second Half of Fiscal 2011																			142.8				101.0				43.3				25.1				2.8				71.4				(29.6	)
of which the amount which was in the process of being removed from the balance sheet																			30.8				22.6				4.2				14.8				0.2				19.3				(3.2	)
Claims against Bankrupt and Substantially Bankrupt Obligors																							16.5				34.3				2.5				0.3				37.2				20.7
Claims with Collection Risk																							121.6				45.5				12.1				4.8				62.4				(59.1	)
Amount Newly Categorized as above during the First Half of Fiscal 2012																							138.1				79.8				14.6				5.1				99.7				(38.4	)
of which the amount which was in the process of being removed from the balance sheet																							14.4				8.1				2.5				0.3				11.0				(3.3	)
Claims against Bankrupt and Substantially Bankrupt Obligors																											13.8				—				0.2				14.1				14.1
Claims with Collection Risk																											45.4				112.6				1.4				159.5				159.5
Amount Newly Categorized as above during the Second Half of Fiscal 2012																											59.3				112.6				1.6				173.6				173.6
of which the amount which was in the process of being removed from the balance sheet																											13.8				—				0.2				14.1				14.1
Claims against Bankrupt and Substantially Bankrupt Obligors			—————				245.8				231.4				175.8				157.0				143.6				105.5				23.2				30.2				159.1				15.5
Claims with Collection Risk			—————				611.0				553.2				520.3				521.5				527.5				365.2				169.7				18.3				553.2				25.7
Total			—————				856.9				784.6				696.1				678.6				671.2				470.8				193.0				48.6				712.4				41.2
of which the amount which was in the process of being removed from the balance sheet							189.4				177.3				131.0				113.6				101.1				72.6				19.9				1.9				94.5				(6.5	)

 

*    Trust account denotes trust accounts with contracts indemnifying the principal amounts.
*				denotes newly categorized amounts.

(2) Progress in Removal of NPLs from the Balance Sheet (Accumulated Removal Amount and Removal Ratio)

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen)												(%)				(%)
		Amount Newly Categorized				Balance as of March 31, 2013				Accumulated Removal Amount				Accumulated Removal Ratio				Modified Accumulated Removal Ratio*
Up to Fiscal 2009			12,335.3				209.8				12,125.5				98.2				98.5
First Half of Fiscal 2010			172.5				41.3				131.1				76.0				79.3
Second Half of Fiscal 2010			214.4				68.2				146.1				68.1				70.0
First Half of Fiscal 2011			157.4				48.2				109.2				69.3				73.4
Second Half of Fiscal 2011			142.8				71.4				71.4				49.9				63.5
First Half of Fiscal 2012			138.1				99.7				38.4				27.8				35.8
Second Half of Fiscal 2012			173.6				173.6				—————				—————				—————
Total			13,334.5				712.4				12,622.0				—————				—————

 

*	Modified accumulated removal ratios are based on the accumulated removal amount including the amount which was in the process of being removed from the balance sheet.

 

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Mizuho Financial Group, Inc.

 

(3) Breakdown of Reasons for Removal of NPLs from the Balance Sheet in the Second Half of Fiscal 2012

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen)
		Newly Categorized																								Amount Removed from B/S in the Second Half of Fiscal 2012
		Up to Fiscal 2009				Fiscal 2010								Fiscal 2011								Fiscal 2012
						First Half				Second Half				First Half				Second Half				First Half
Liquidation			(16.6	)			(2.0	)			(0.8	)			(0.6	)			(0.6	)			(0.0	)			(20.9	)
Restructuring			(4.1	)			—				—				—				(1.3	)			(1.2	)			(6.7	)
Improvement in Business Performance due to Restructuring			—				—				(0.0	)			—				—				(0.0	)			(0.0	)
Loan Sales			(20.4	)			(0.4	)			(1.3	)			(2.6	)			(2.5	)			(0.3	)			(27.7	)
Direct Write-off			28.5				1.8				(2.6	)			(2.0	)			3.0				(13.0	)			15.6
Other			(21.4	)			(4.1	)			(5.1	)			(9.8	)			(28.1	)			(23.8	)			(92.5	)
Debt recovery			(16.7	)			(1.9	)			(0.5	)			(3.8	)			(7.2	)			(16.7	)			(47.1	)
Improvement in Business Performance			(4.7	)			(2.1	)			(4.6	)			(5.9	)			(20.9	)			(7.0	)			(45.4	)
Total			(34.0	)			(4.8	)			(10.0	)			(15.3	)			(29.6	)			(38.4	)			(132.3	)
Mizuho Bank
Liquidation			(8.7	)			(2.0	)			(0.8	)			(0.6	)			(0.6	)			(0.0	)			(13.0	)
Restructuring			(4.1	)			—				—				—				—				(1.2	)			(5.3	)
Improvement in Business Performance due to Restructuring			—				—				—				—				—				—				—
Loan Sales			(11.4	)			(0.4	)			(0.9	)			(0.6	)			(0.7	)			(0.3	)			(14.5	)
Direct Write-off			17.7				1.8				(0.8	)			(0.0	)			0.6				(3.8	)			15.4
Other			(16.3	)			(4.1	)			(8.0	)			(11.7	)			(10.3	)			(21.1	)			(71.7	)
Debt recovery			(12.1	)			(2.0	)			(3.6	)			(5.8	)			(4.2	)			(14.3	)			(42.1	)
Improvement in Business Performance			(4.1	)			(2.1	)			(4.4	)			(5.9	)			(6.1	)			(6.7	)			(29.5	)
Total			(22.8	)			(4.8	)			(10.7	)			(13.1	)			(11.1	)			(26.5	)			(89.3	)
Mizuho Corporate Bank
Liquidation			(7.7	)			—				—				—				—				—				(7.7	)
Restructuring			(0.0	)			—				—				—				(1.3	)			—				(1.3	)
Improvement in Business Performance due to Restructuring			—				—				—				—				—				—				—
Loan Sales			(5.8	)			—				(0.1	)			(2.0	)			(1.7	)			—				(9.8	)
Direct Write-off			7.5				—				(2.0	)			(2.0	)			2.4				(9.1	)			(3.3	)
Other			(5.4	)			0.0				3.2				2.0				(16.1	)			(2.1	)			(18.4	)
Debt recovery			(4.9	)			0.0				3.2				2.0				(2.9	)			(2.1	)			(4.6	)
Improvement in Business Performance			(0.5	)			—				—				—				(13.2	)			—				(13.7	)
Total			(11.5	)			0.0				0.9				(2.0	)			(16.8	)			(11.2	)			(40.6	)
Mizuho Trust & Banking (Banking Account + Trust Account)
Liquidation			(0.0	)			—				—				—				—				—				(0.0	)
Restructuring			(0.0	)			—				—				—				—				—				(0.0	)
Improvement in Business Performance due to Restructuring			—				—				(0.0	)			—				—				(0.0	)			(0.0	)
Loan Sales			(3.1	)			—				(0.2	)			—				—				—				(3.4	)
Direct Write-off			3.2				—				0.2				(0.0	)			—				—				3.5
Other			0.3				(0.0	)			(0.3	)			(0.1	)			(1.5	)			(0.5	)			(2.3	)
Debt recovery			0.3				(0.0	)			(0.1	)			(0.0	)			(0.0	)			(0.2	)			(0.2	)
Improvement in Business Performance			(0.0	)			(0.0	)			(0.1	)			(0.0	)			(1.5	)			(0.2	)			(2.1	)
Total			0.3				(0.0	)			(0.3	)			(0.1	)			(1.5	)			(0.6	)			(2.4	)
(Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet   Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
		(Billions of yen)
		Amount Removed																								Accumulated Removed Amount from B/S since the Second Half of Fiscal 2001
		Up to First Half of Fiscal 2010*				In Second Half of Fiscal 2010				In First Half of Fiscal 2011				In Second Half of Fiscal 2011				In First Half of Fiscal 2012				In Second Half of Fiscal 2012
Liquidation			(1,690.4	)			(52.2	)			(17.9	)			(48.4	)			(13.4	)			(20.9	)			(1,843.4	)
Restructuring			(1,877.9	)			(76.2	)			(11.9	)			(11.0	)			(0.4	)			(6.7	)			(1,984.2	)
Improvement in Business Performance due to Restructuring			(184.9	)			(0.1	)			(6.5	)			(0.0	)			(0.3	)			(0.0	)			(191.9	)
Loan Sales			(4,516.2	)			(43.1	)			(9.2	)			(16.1	)			(44.1	)			(27.7	)			(4,656.6	)
Direct Write-off			3,465.4				78.8				18.1				53.4				32.2				15.6				3,663.9
Other			(6,846.7	)			(193.8	)			(218.6	)			(138.2	)			(119.5	)			(92.5	)			(7,609.5	)
Debt recovery			—————				(161.8	)			(76.2	)			(48.8	)			(65.1	)			(47.1	)			—————
Improvement in Business Performance			—————				(32.0	)			(142.3	)			(89.4	)			(54.3	)			(45.4	)			—————
Total			(11,651.1	)			(286.6	)			(245.9	)			(160.3	)			(145.6	)			(132.3	)			(12,622.0	)

 

*	From the Second Half of Fiscal 2001 to the First Half of Fiscal 2010.

 

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Mizuho Financial Group, Inc.

 

8. Status of Loans by Industry

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

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen)
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
		Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Change from September 30, 2012								Change from March 31, 2012								Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Outstanding Balance				Non-Accrual, Past Due & Restructured Loans
										Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Outstanding Balance				Non-Accrual, Past Due & Restructured Loans
Domestic Total (excluding Loans Booked Offshore)			56,737.5				1,115.0				1,564.4				93.0				743.5				105.0				55,173.1				1,021.9				55,993.9				1,009.9
Manufacturing			7,667.2				291.2				313.0				51.1				514.4				32.5				7,354.1				240.1				7,152.7				258.7
Agriculture & Forestry			34.9				0.3				3.4				(0.2	)			2.2				0.2				31.4				0.5				32.7				0.0
Fishery			2.1				0.4				0.0				—				0.0				0.4				2.0				0.4				2.0				0.0
Mining, Quarrying Industry & Gravel Extraction Industry			216.0				0.0				45.3				0.0				71.5				0.0				170.7				—				144.5				—
Construction			812.1				35.4				(20.1	)			(1.0	)			(53.3	)			0.8				832.2				36.5				865.5				34.6
Utilities			2,128.1				4.5				178.4				0.4				224.3				0.5				1,949.7				4.0				1,903.7				3.9
Communication			988.0				19.8				85.7				(1.6	)			89.7				(5.7	)			902.3				21.5				898.2				25.6
Transportation & Postal Industry			2,628.8				105.7				(61.9	)			39.2				(151.9	)			62.4				2,690.8				66.5				2,780.7				43.3
Wholesale & Retail			4,838.0				150.8				(74.7	)			(12.7	)			38.0				(23.8	)			4,912.7				163.6				4,799.9				174.7
Finance & Insurance			6,239.5				13.8				49.7				3.3				(222.6	)			2.1				6,189.7				10.4				6,462.1				11.6
Real Estate			6,612.9				186.4				197.9				38.3				264.5				42.0				6,414.9				148.0				6,348.3				144.4
Commodity Lease			1,562.2				2.2				10.9				(0.2	)			16.2				(0.0	)			1,551.3				2.5				1,546.0				2.2
Service Industries			2,408.7				84.6				(72.7	)			(15.6	)			(17.7	)			(27.8	)			2,481.4				100.2				2,426.5				112.5
Local Governments			1,225.2				2.9				(30.1	)			(0.0	)			(50.0	)			(0.0	)			1,255.4				2.9				1,275.2				2.9
Governments			5,589.8				—				756.4				—				(9.6	)			—				4,833.3				—				5,599.4				—
Other			13,783.2				216.2				182.9				(7.8	)			27.6				21.2				13,600.3				224.1				13,755.6				195.0
Overseas Total (including Loans Booked Offshore)			11,434.2				120.0				2,298.3				53.6				2,740.4				43.5				9,135.8				66.3				8,693.7				76.5
Governments			347.6				—				15.5				—				(8.7	)			—				332.0				—				356.4				—
Financial Institutions			4,103.0				—				842.0				(9.2	)			1,053.5				(0.0	)			3,261.0				9.2				3,049.4				0.0
Other			6,983.5				120.0				1,440.7				62.9				1,695.6				43.5				5,542.7				57.1				5,287.8				76.5
Total			68,171.7				1,235.0				3,862.7				146.7				3,484.0				148.5				64,308.9				1,088.3				64,687.7				1,086.5

 

*	Loans to Finance & Insurance sector includes loans to MHFG as follows:

*	Amounts of Outstanding Balances are aggregated figures of banking and trust accounts, and amounts of Non-Accrual, Past Due & Restructured Loans are aggregated figures of banking and trust accounts with contracts indemnifying the principal amounts.

 

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Mizuho Financial Group, Inc.

 

 

		(Billions of yen)
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
		Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Change from September 30, 2012								Change from March 31, 2012								Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Outstanding Balance				Non-Accrual, Past Due & Restructured Loans
										Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Outstanding Balance				Non-Accrual, Past Due & Restructured Loans
Mizuho Bank
Domestic Total (excluding Loans Booked Offshore)			32,274.2				777.4				771.6				(21.1	)			(266.6	)			(2.0	)			31,502.6				798.5				32,540.8				779.4
Manufacturing			2,820.1				151.1				(11.8	)			(21.4	)			37.8				(15.7	)			2,831.9				172.6				2,782.2				166.8
Agriculture & Forestry			34.6				0.3				3.5				(0.2	)			2.3				0.2				31.1				0.5				32.3				0.0
Fishery			2.1				0.4				0.0				—				0.0				0.4				2.0				0.4				2.0				0.0
Mining, Quarrying Industry & Gravel Extraction Industry			5.4				0.0				0.2				0.0				0.5				0.0				5.1				—				4.9				—
Construction			468.3				26.8				(3.0	)			0.9				(28.3	)			0.2				471.3				25.8				496.6				26.5
Utilities			60.9				0.0				4.1				0.0				2.2				0.0				56.8				—				58.6				0.0
Communication			298.8				18.9				(3.6	)			(1.6	)			(18.3	)			(4.9	)			302.5				20.6				317.2				23.9
Transportation & Postal Industry			1,047.6				102.4				(34.4	)			39.3				(25.4	)			61.0				1,082.1				63.1				1,073.1				41.4
Wholesale & Retail			3,551.1				147.9				28.8				(12.6	)			53.4				(24.0	)			3,522.3				160.6				3,497.7				171.9
Finance & Insurance			1,795.2				13.8				37.8				3.3				(170.4	)			2.1				1,757.3				10.4				1,965.7				11.6
Real Estate			3,155.9				94.1				(12.3	)			2.2				34.2				5.1				3,168.3				91.9				3,121.6				89.0
Commodity Lease			184.1				2.2				2.9				(0.2	)			3.0				(0.0	)			181.2				2.5				181.0				2.2
Service Industries			1,846.2				83.0				(44.3	)			(14.9	)			25.2				(14.0	)			1,890.6				97.9				1,821.0				97.0
Local Governments			1,077.2				—				(24.6	)			—				(37.3	)			—				1,101.8				—				1,114.5				—
Governments			4,214.5				—				695.4				—				(291.9	)			—				3,519.0				—				4,506.5				—
Other			11,711.4				135.9				132.9				(15.7	)			146.2				(12.5	)			11,578.4				151.7				11,565.2				148.5
Overseas Total (including Loans Booked Offshore)			—				—				—				—				—				—				—				—				—				—
Governments			—				—				—				—				—				—				—				—				—				—
Financial Institutions			—				—				—				—				—				—				—				—				—				—
Other			—				—				—				—				—				—				—				—				—				—
Total			32,274.2				777.4				771.6				(21.1	)			(266.6	)			(2.0	)			31,502.6				798.5				32,540.8				779.4
Mizuho Corporate Bank
Domestic Total (excluding Loans Booked Offshore)			19,759.8				308.2				450.0				113.8				388.8				116.8				19,309.8				194.4				19,370.9				191.4
Manufacturing			4,291.9				134.7				300.6				69.9				450.4				49.5				3,991.2				64.7				3,841.5				85.1
Agriculture & Forestry			0.2				—				—				—				(0.0	)			—				0.2				—				0.3				—
Fishery			—				—				—				—				—				—				—				—				—				—
Mining, Quarrying Industry & Gravel Extraction Industry			207.4				—				45.1				—				71.4				—				162.3				—				135.9				—
Construction			287.6				8.5				(12.5	)			(2.0	)			(17.0	)			0.4				300.2				10.5				304.7				8.0
Utilities			1,828.8				4.4				131.5				0.3				173.6				0.5				1,697.3				4.0				1,655.2				3.8
Communication			625.0				0.4				93.4				(0.0	)			113.7				(0.6	)			531.6				0.4				511.2				1.1
Transportation & Postal Industry			1,365.8				3.2				(28.4	)			(0.0	)			(130.5	)			1.3				1,394.2				3.2				1,496.3				1.8
Wholesale & Retail			1,124.6				1.9				(61.9	)			(0.0	)			1.2				(0.0	)			1,186.6				1.9				1,123.4				2.0
Finance & Insurance			3,927.6				—				(68.8	)			—				(256.7	)			—				3,996.5				—				4,184.4				—
Real Estate			2,400.6				78.1				186.2				37.2				200.2				39.7				2,214.3				40.9				2,200.3				38.3
Commodity Lease			1,161.5				—				(3.6	)			—				4.8				—				1,165.2				—				1,156.7				—
Service Industries			492.4				1.2				(27.5	)			(0.0	)			(35.8	)			(8.8	)			520.0				1.3				528.2				10.1
Local Governments			119.6				—				(4.1	)			—				(5.3	)			—				123.7				—				125.0				—
Governments			775.4				—				(138.9	)			—				(41.4	)			—				914.4				—				816.9				—
Other			1,150.6				75.5				39.1				8.3				(139.5	)			34.7				1,111.4				67.1				1,290.1				40.7
Overseas Total (including Loans Booked Offshore)			11,427.9				120.0				2,297.4				53.6				2,740.1				43.5				9,130.5				66.3				8,687.8				76.5
Governments			347.0				—				15.5				—				(8.7	)			—				331.5				—				355.8				—
Financial Institutions			4,103.0				—				842.0				(9.2	)			1,053.5				(0.0	)			3,261.0				9.2				3,049.4				0.0
Other			6,977.8				120.0				1,439.9				62.9				1,695.2				43.5				5,537.9				57.1				5,282.6				76.5
Total			31,187.8				428.3				2,747.4				167.5				3,129.0				160.3				28,440.3				260.8				28,058.8				267.9
Mizuho Trust & Banking (Banking Account + Trust Account)
Domestic Total (excluding Loans Booked Offshore)			4,703.4				29.3				342.7				0.3				621.2				(9.7	)			4,360.6				28.9				4,082.1				39.1
Manufacturing			555.1				5.4				24.1				2.6				26.1				(1.1	)			530.9				2.7				528.9				6.6
Agriculture & Forestry			0.0				—				(0.0	)			—				(0.0	)			—				0.0				—				0.0				—
Fishery			—				—				—				—				—				—				—				—				—				—
Mining, Quarrying Industry & Gravel Extraction Industry			3.1				—				(0.0	)			—				(0.5	)			—				3.1				—				3.6				—
Construction			56.1				0.1				(4.5	)			(0.0	)			(7.9	)			0.1				60.6				0.1				64.1				0.0
Utilities			238.2				—				42.7				—				48.4				—				195.4				—				189.7				—
Communication			64.1				0.4				(4.0	)			(0.0	)			(5.5	)			(0.1	)			68.2				0.4				69.7				0.5
Transportation & Postal Industry			215.3				0.0				0.9				(0.0	)			4.1				(0.0	)			214.4				0.0				211.1				0.0
Wholesale & Retail			162.2				1.0				(41.5	)			(0.0	)			(16.5	)			0.2				203.7				1.0				178.8				0.7
Finance & Insurance			516.6				—				80.7				—				204.6				—				435.8				—				312.0				—
Real Estate			1,056.3				14.1				24.0				(1.0	)			30.0				(2.8	)			1,032.2				15.2				1,026.2				17.0
Commodity Lease			216.5				—				11.6				—				8.2				—				204.8				—				208.2				—
Service Industries			70.0				0.3				(0.7	)			(0.6	)			(7.2	)			(5.0	)			70.7				0.9				77.2				5.4
Local Governments			28.4				2.9				(1.3	)			(0.0	)			(7.3	)			(0.0	)			29.8				2.9				35.7				2.9
Governments			599.8				—				200.0				—				323.8				—				399.8				—				275.9				—
Other			921.2				4.7				10.7				(0.4	)			20.9				(0.9	)			910.4				5.2				900.2				5.7
Overseas Total (including Loans Booked Offshore)			6.2				—				0.8				—				0.3				—				5.3				—				5.8				—
Governments			0.5				—				0.0				—				(0.0	)			—				0.5				—				0.6				—
Financial Institutions			—				—				—				—				—				—				—				—				—				—
Other			5.6				—				0.8				—				0.3				—				4.7				—				5.2				—
Total			4,709.6				29.3				343.6				0.3				621.6				(9.7	)			4,365.9				28.9				4,088.0				39.1

 

*	Amounts of outstanding loans are aggregated figures of banking and trust accounts, and amounts of non-accrual, past due & restructured loans are aggregated figures of banking and trust accounts with contracts indemnifying the principal amounts.

 

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Mizuho Financial Group, Inc.

 

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

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen, %)
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
										Change from September 30, 2012								Change from March 31, 2012
		Disclosed Claims under the FRL				Coverage Ratio				Disclosed Claims under the FRL				Coverage Ratio				Disclosed Claims under the FRL				Coverage Ratio				Disclosed Claims under the FRL				Coverage Ratio				Disclosed Claims under the FRL				Coverage Ratio
Domestic Total (excluding Loans Booked Offshore)			1,161.6				75.4				87.6				1.6				98.4				2.5				1,073.9				73.8				1,063.2				72.9
Manufacturing			296.5				72.9				49.6				7.1				31.8				8.9				246.8				65.7				264.6				63.9
Agriculture & Forestry			0.3				40.4				(0.0	)			0.3				0.2				(34.9	)			0.4				40.0				0.0				75.3
Fishery			0.4				29.1				—				(1.5	)			0.3				(70.8	)			0.4				30.7				0.0				100.0
Mining, Quarrying Industry & Gravel Extraction Industry			0.0				100.0				0.0				—				0.0				—				0.0				100.0				0.0				100.0
Construction			35.6				74.9				(0.6	)			4.0				0.6				3.2				36.2				70.8				35.0				71.6
Utilities			4.5				53.8				0.4				(3.2	)			0.5				(5.3	)			4.0				57.0				3.9				59.1
Communication			20.1				57.1				(1.6	)			(4.5	)			(5.8	)			(6.5	)			21.8				61.6				26.0				63.6
Transportation & Postal Industry			106.0				73.3				39.5				(8.4	)			62.5				(8.5	)			66.5				81.8				43.4				81.9
Wholesale & Retail			158.8				61.5				(12.3	)			(0.2	)			(24.0	)			(1.1	)			171.1				61.7				182.8				62.7
Finance & Insurance			13.8				19.6				3.3				(8.4	)			2.0				(11.3	)			10.4				28.1				11.7				31.0
Real Estate			186.7				90.7				21.0				2.4				42.1				5.7				165.6				88.3				144.6				84.9
Commodity Lease			2.2				72.1				(0.2	)			1.3				(0.0	)			(9.7	)			2.5				70.7				2.2				81.8
Service Industries			85.0				66.9				(9.6	)			2.4				(30.4	)			5.1				94.6				64.5				115.4				61.8
Local Governments			31.2				100.0				0.5				—				0.5				—				30.7				100.0				30.7				100.0
Other			220.0				82.7				(2.4	)			(0.8	)			17.8				(6.9	)			222.4				83.6				202.2				89.6
Overseas Total (including Loans Booked Offshore)			131.6				62.4				55.5				11.9				29.2				2.7				76.1				50.5				102.4				59.6
Governments			—				—				—				—				—				—				—				—				—				—
Financial Institutions			—				—				(9.2	)			(62.6	)			(0.0	)			(99.9	)			9.2				62.6				0.0				99.9
Other			131.6				62.4				64.7				13.5				29.2				2.7				66.8				48.8				102.4				59.6
Total			1,293.3				74.1				143.1				1.8				127.7				2.3				1,150.1				72.3				1,165.6				71.7

 

*	Trust account denotes trust accounts with contracts indemnifying the principal amounts.

 

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Mizuho Financial Group, Inc.

 

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

 

(1) Balance of Housing and Consumer Loans

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Housing and Consumer Loans			12,186.5				129.1				90.5				12,057.3				12,095.9
Housing Loans for owner’s residential housing			10,497.0				160.2				158.8				10,336.8				10,338.1
Mizuho Bank
Housing and Consumer Loans			11,992.2				143.1				119.5				11,849.1				11,872.7
Housing Loans			11,034.6				123.1				81.7				10,911.5				10,952.8
for owner’s residential housing			10,326.0				171.9				183.1				10,154.0				10,142.9
Consumer loans			957.5				19.9				37.7				937.6				919.8
Mizuho Corporate Bank
Housing and Consumer Loans			—				—				—				—				—
Housing Loans			—				—				—				—				—
for owner’s residential housing			—				—				—				—				—
Consumer loans			—				—				—				—				—
Mizuho Trust & Banking (Banking Account + Trust Account)
Housing and Consumer Loans			194.2				(13.9	)			(28.9	)			208.2				223.1
Housing Loans for owner’s residential housing			171.0				(11.7	)			(24.2	)			182.7				195.2
*  Above figures are aggregated banking and trust account amounts.
(2) Loans to SMEs and Individual Customers
Non-Consolidated
Aggregated Figures of the 3 Banks (Banking Account + Trust Account)
		(%, Billions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans			56.3				(0.8	)			(0.4	)			57.1				56.8
Loans to SMEs and Individual Customers			31,963.2				425.7				155.4				31,537.5				31,807.7
Mizuho Bank
Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans			70.2				(1.5	)			1.1				71.8				69.1
Loans to SMEs and Individual Customers			22,683.6				51.3				181.7				22,632.3				22,501.8
Mizuho Corporate Bank
Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans			36.2				1.1				(1.0	)			35.1				37.3
Loans to SMEs and Individual Customers			7,165.5				380.0				(69.4	)			6,785.4				7,234.9
Mizuho Trust & Banking (Banking Account + Trust Account)
Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans			44.9				(3.6	)			(5.7	)			48.6				50.7
Loans to SMEs and Individual Customers			2,114.0				(5.6	)			43.1				2,119.7				2,070.9

 

*	Above figures are aggregated banking and trust account amounts.

*	Above figures do not include loans booked at overseas offices and offshore loans.

*	The definition of “Small and Medium-sized Enterprises” is as follows:

 

Enterprises of which the capital is ¥300 million or below (¥100 million or below for the wholesale industry, and ¥50 million or below for the retail, restaurant and commodity lease industries etc.), or enterprises with full-time employees of 300 or below (100 or below for the wholesale and commodity lease industries etc., 50 or below for the retail and restaurant industries.)

 

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Mizuho Financial Group, Inc.

 

10. Status of Loans by Region

(1) Balance of Loans to Restructuring Countries

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen, Number of countries)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Loan amount			6.7				6.7				6.7				0.0				0.0
Number of Restructuring Countries*			4				1				1				3				3

 

*	Number of Restructuring Countries refers to the countries of obligors’ residence.

(2) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Region

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account + Trust Account)

 

		(Billions of yen)
		As of March 31, 2013																								As of September 30, 2012								As of March 31, 2012
		Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Change from September 30, 2012								Change from March 31, 2012								Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Outstanding Balance				Non-Accrual, Past Due & Restructured Loans
										Outstanding Balance				Non-Accrual, Past Due & Restructured Loans				Outstanding Balance				Non-Accrual, Past Due & Restructured Loans
Asia			3,950.4				29.1				655.7				1.1				855.5				6.9				3,294.6				27.9				3,094.8				22.1
Hong Kong			811.5				4.9				114.2				0.0				142.1				3.9				697.2				4.8				669.4				0.9
South Korea			539.2				1.4				54.8				0.0				82.4				(0.0	)			484.3				1.4				456.7				1.5
Singapore			611.3				11.9				102.3				0.5				176.8				8.0				508.9				11.4				434.5				3.9
Thailand			584.6				0.8				108.0				(0.1	)			149.1				(4.8	)			476.6				1.0				435.5				5.7
Central and South America			3,232.7				169.9				413.0				79.2				346.3				116.7				2,819.7				90.7				2,886.4				53.2
North America			3,341.2				4.2				721.1				2.6				834.9				1.5				2,620.0				1.5				2,506.2				2.7
Eastern Europe			24.6				0.4				5.6				(0.2	)			3.7				0.4				18.9				0.6				20.8				—
Western Europe			2,587.0				49.9				399.0				7.6				296.3				2.3				2,188.0				42.3				2,290.6				47.5
Other			1,262.5				11.3				342.9				1.1				354.3				2.8				919.5				10.1				908.1				8.4
Total			14,398.5				265.0				2,537.4				91.5				2,691.2				130.9				11,861.0				173.4				11,707.2				134.0

 

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Mizuho Financial Group, Inc.

 

III. DEFERRED TAXES

1. Estimation for Calculating Deferred Tax Assets

Non-Consolidated

Aggregated Figures of the 3 Banks

1. Estimate of future taxable income

 

				(Billions of yen)
				Total amount for five years (from April 1, 2013 to March 31, 2018)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)		1			3,901.8
Income before Income Taxes		2			3,187.7
Tax Adjustments *1		3			401.3
Taxable Income before Current Deductible Temporary Differences *2		4			3,589.1
Effective Statutory Tax Rate		5			35.54%~38.01%
Deferred Tax Assets corresponding to Taxable Income before Current Deductible Temporary Differences [ 4 x 5 ]		6			1,315.1

 

*1.	Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.

*2.	Taxable Income before Current Deductible Temporary Differences is an estimate of taxable income before adjusting deductible temporary differences as of March 31, 2013.

 

(Reference) Past results of taxable income (tax loss)
		(Billions of yen)
Fiscal 2008			375.3
Fiscal 2009			208.3
Fiscal 2010			313.7
Fiscal 2011			491.9
Fiscal 2012 (estimate)			107.0

 

1.	Figures are taxable income (tax loss) amounts per the final corporation tax returns before deducting tax losses carried forward from prior years. Subsequent amendments have not been reflected.

2.	Figure for Fiscal 2012 is an estimate of taxable income.

2. Breakdown of Deferred Tax Assets

 

						(Billions of yen)
						As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
										Change from September 30, 2012				Change from March 31, 2012
Reserves for Possible Losses on Loans			7				251.5				19.9				10.9				231.6				240.6
Impairment of Securities			8				705.2				(243.3	)			(174.5	)			948.5				879.7
Net Unrealized Losses on Other Securities			9				34.6				(48.8	)			(68.4	)			83.5				103.1
Reserve for Employee Retirement Benefits			10				13.8				0.7				1.3				13.0				12.4
Net Deferred Hedge Losses			11				1.0				(1.9	)			(7.6	)			3.0				8.6
Tax Losses Carried Forward			12				—				—				—				—				—
Other			13				290.9				(18.0	)			(27.3	)			308.9				318.2
Total Deferred Tax Assets			14				1,297.2				(291.5	)			(265.6	)			1,588.8				1,562.9
Valuation Allowance			15				(724.1	)			173.3				212.5				(897.5	)			(936.7	)
Sub-Total [ 14 + 15 ]			16				573.1				(118.2	)			(53.0	)			691.3				626.1
Amount related to Retirement Benefits Accounting *1			17				(130.4	)			4.5				8.4				(135.0	)			(138.9	)
Net Unrealized Gains on Other Securities			18				(291.2	)			(245.1	)			(232.5	)			(46.0	)			(58.7	)
Net Deferred Hedge Gains			19				(66.1	)			33.1				20.1				(99.3	)			(86.3	)
Other			20				(40.6	)			(0.7	)			3.3				(39.9	)			(44.0	)
Total Deferred Tax Liabilities			21				(528.6	)			(208.2	)			(200.5	)			(320.4	)			(328.0	)
Net Deferred Tax Assets (Liabilities) [16 + 21]			22				44.4				(326.4	)			(253.6	)			370.8				298.0
Tax effects related to Net Unrealized Losses (Gains) on Other Securities *2			23				(292.0	)			(262.7	)			(247.8	)			(29.3	)			(44.2	)
Tax effects related to Net Deferred Hedge Losses (Gains)			24				(65.1	)			31.1				12.5				(96.3	)			(77.7	)
Tax effects related to others			25				401.6				(94.8	)			(18.3	)			496.5				420.0

 

*1	Amount related to Retirement Benefits Accounting includes ¥(93.4) billion related to gains on securities contributed to employee retirement benefit trust.

*2	Tax effects related to Net Unrealized Losses (Gains) on Other Securities is the amount after deducting Valuation Allowance.

 

(Reference)
Consolidated		(Billions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Net Deferred Tax Assets			111.0				(309.3	)			(229.6	)			420.4				340.7

The above includes forward-looking information. See the disclaimer at the end of the table of contents located at the beginning of this document.

 

2-37

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Mizuho Financial Group, Inc.

 

Non-Consolidated

Mizuho Bank

1. Estimate of future taxable income

 

						(Billions of yen)
						Total amount for five years (from April 1, 2013 to March 31, 2018)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			1				1,262.3
Income before Income Taxes			2				907.3
Tax Adjustments *1			3				221.2
Taxable Income before Current Deductible Temporary Differences *2			4				1,128.5
Effective Statutory Tax Rate			5				37.92%/35.54%
Deferred Tax Assets corresponding to Taxable Income before Current Deductible Temporary Differences [ 4 x 5 ]			6				414.7

 

*1.	Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.

*2.	Taxable Income before Current Deductible Temporary Differences is an estimate of taxable income before adjusting deductible temporary differences as of March 31, 2013.

(Reference) Past results of taxable income (tax loss)

 

		(Billions of yen)
Fiscal 2008			128.9
Fiscal 2009			94.8
Fiscal 2010			115.8
Fiscal 2011			137.9
Fiscal 2012 (estimate)			21.0

 

1.	Figures are taxable income (tax loss) amounts per the final corporation tax returns before deducting tax losses carried forward from prior years. Subsequent amendments have not been reflected.

2.	Figure for Fiscal 2012 is an estimate of taxable income.

2. Breakdown of Deferred Tax Assets

		(Billions of yen)
		As of March 31, 2013																As of September 30, 2012				As of March 31, 2012
										Change from September 30,  2012				Change from March 31, 2012
Reserves for Possible Losses on Loans			7				123.7				(19.3	)			(30.8	)			143.1				154.6
Impairment of Securities			8				171.7				(85.8	)			(60.7	)			257.5				232.4
Net Unrealized Losses on Other Securities			9				16.4				1.9				(13.4	)			14.4				29.9
Reserve for Employee Retirement Benefits			10				—				—				—				—				—
Net Deferred Hedge Losses			11				0.4				(1.5	)			(5.9	)			2.0				6.4
Tax Losses Carried Forward			12				—				—				—				—				—
Other			13				178.1				(2.3	)			1.7				180.5				176.4
Total Deferred Tax Assets			14				490.5				(107.2	)			(109.3	)			597.7				599.9
Valuation Allowance			15				(173.8	)			76.0				76.6				(249.8	)			(250.4	)
Sub-Total [ 14 + 15 ]			16				316.7				(31.1	)			(32.7	)			347.8				349.4
Amount related to Retirement Benefits Accounting *1			17				(80.5	)			3.4				6.0				(83.9	)			(86.5	)
Net Unrealized Gains on Other Securities			18				(78.2	)			(57.8	)			(67.5	)			(20.3	)			(10.6	)
Net Deferred Hedge Gains			19				—				—				—				—				—
Other			20				(29.0	)			(0.2	)			0.3				(28.8	)			(29.4	)
Total Deferred Tax Liabilities			21				(187.7	)			(54.6	)			(61.1	)			(133.1	)			(126.6	)
Net Deferred Tax Assets (Liabilities) [16 + 21]			22				128.9				(85.7	)			(93.8	)			214.6				222.7
Tax effects related to Net Unrealized Losses (Gains) on Other Securities *2			23				(78.2	)			(57.8	)			(67.5	)			(20.3	)			(10.6	)
Tax effects related to Net Deferred Hedge Losses (Gains)			24				0.4				(1.5	)			(5.9	)			2.0				6.4
Tax effects related to others			25				206.6				(26.3	)			(20.3	)			233.0				227.0

 

*1	Amount related to Retirement Benefits Accounting includes ¥(64.9) billion related to gains on securities contributed to employee retirement benefit trust.

*2	Tax effects related to Net Unrealized Losses (Gains) on Other Securities is the amount after deducting Valuation Allowance.

 

 

Assessment of Recoverability of Deferred Tax Assets is based on the provisory clause of 5. (1) „ of “Audit Guideline for Considering Recoverability of Deferred Tax Assets” (JICPA Audit Committee Report No. 66). Period for future taxable income considered in the assessment is five years.

Future taxable income was estimated using assumptions used in the Business Plan, etc. Details of the respective estimated five-year totals are as follows:

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥1,262.3 billion [1]

Income before Income Taxes: ¥907.3 billion [2]

Taxable Income before Current Deductible Temporary Differences: ¥1,128.5 billion [4].

On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans amount to ¥490.5 billion [14]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥173.8 billion [15] was provided. After deducting Deferred Tax Liabilities of ¥187.7 billion [21] from the balance, Net Deferred Tax Assets of ¥128.9 billion [22] was recorded on the balance sheet.

 

The above includes forward-looking information. See the disclaimer at the end of the table of contents located at the beginning of this document.

 

2-38

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Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

1. Estimate of future taxable income

 

						(Billions of yen)
						Total amount for five years (from April 1, 2013 to March 31, 2018)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			1				2,359.6
Income before Income Taxes			2				2,049.3
Tax Adjustments *1			3				173.3
Taxable Income before Current Deductible Temporary Differences *2			4				2,222.6
Effective Statutory Tax Rate			5				38.01%/35.64%
Deferred Tax Assets corresponding to Taxable Income before Current Deductible Temporary Differences [ 4 x 5 ]			6				813.5

 

*1.	Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.

*2.	Taxable Income before Current Deductible Temporary Differences is an estimate of taxable income before adjusting deductible temporary differences as of March 31, 2013.

(Reference) Past results of taxable income (tax loss)

 

		(Billions of yen)
Fiscal 2008			236.1
Fiscal 2009			96.8
Fiscal 2010			177.8
Fiscal 2011			323.1
Fiscal 2012 (estimate)			60.0

 

1.	Figures are taxable income (tax loss) amounts per the final corporation tax returns before deducting tax losses carried forward from prior years. Subsequent amendments have not been reflected.

2.	Figure for Fiscal 2012 is an estimate of taxable income.

2. Breakdown of Deferred Tax Assets

 

						(Billions of yen)
						As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
										Change from September 30, 2012				Change from March 31, 2012
Reserves for Possible Losses on Loans			7				122.4				41.1				43.9				81.3				78.5
Impairment of Securities			8				482.1				(153.7	)			(113.2	)			635.9				595.4
Net Unrealized Losses on Other Securities			9				17.1				(48.3	)			(52.6	)			65.4				69.7
Reserve for Employee Retirement Benefits			10				—				—				—				—				—
Net Deferred Hedge Losses			11				—				—				—				—				—
Tax Losses Carried Forward			12				—				—				—				—				—
Other			13				100.3				(16.1	)			(28.7	)			116.5				129.1
Total Deferred Tax Assets			14				722.1				(177.1	)			(150.7	)			899.2				872.8
Valuation Allowance			15				(491.3	)			91.0				130.1				(582.3	)			(621.5	)
Sub-Total [ 14 + 15 ]			16				230.7				(86.1	)			(20.6	)			316.9				251.3
Amount related to Retirement Benefits Accounting *1			17				(44.6	)			1.1				2.4				(45.7	)			(47.0	)
Net Unrealized Gains on Other Securities			18				(195.2	)			(174.2	)			(153.9	)			(20.9	)			(41.3	)
Net Deferred Hedge Gains			19				(66.1	)			33.1				20.1				(99.3	)			(86.3	)
Other			20				(11.2	)			(0.3	)			2.9				(10.8	)			(14.1	)
Total Deferred Tax Liabilities			21				(317.2	)			(140.3	)			(128.3	)			(176.9	)			(188.8	)
Net Deferred Tax Assets (Liabilities) [16 + 21]			22				(86.5	)			(226.4	)			(148.9	)			139.9				62.4
Tax effects related to Net Unrealized Losses (Gains) on Other Securities *2			23				(196.0	)			(191.3	)			(168.3	)			(4.7	)			(27.7	)
Tax effects related to Net Deferred Hedge Losses (Gains)			24				(66.1	)			33.1				20.1				(99.3	)			(86.3	)
Tax effects related to others			25				175.7				(68.3	)			(0.8	)			244.0				176.5

 

*1	Amount related to Retirement Benefits Accounting includes ¥(23.1) billion related to gains on securities contributed to employee retirement benefit trust.

*2	Tax effects related to Net Unrealized Losses (Gains) on Other Securities is the amount after deducting Valuation Allowance.

 

 

Assessment of Recoverability of Deferred Tax Assets is based on 5. (1) ‚ of “Audit Guideline for Considering Recoverability of Deferred Tax Assets” (JICPA Audit Committee Report No. 66).

Future taxable income was estimated using assumptions used in the Business Plan, etc. Details of the respective estimated five-year totals are as follows:

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥2,359.6 billion [1]

Income before Income Taxes: ¥2,049.3 billion [2]

Taxable Income before Current Deductible Temporary Differences: ¥2,222.6 billion [4].

On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans amount to ¥722.1 billion [14]. However, after considering temporary differences which are not expected to be reversed, Valuation Allowance of ¥491.3 billion [15] was provided. After deducting Deferred Tax Liabilities of ¥317.2 billion [21] from the balance, Net Deferred Tax Liabilities of ¥86.5 billion [22] was recorded on the balance sheet.

 

The above includes forward-looking information. See the disclaimer at the end of the table of contents located at the beginning of this document.

 

2-39

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Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking

1. Estimate of future taxable income

 

						(Billions of yen)
						Total amount for five years (from April 1,  2013 to March 31, 2018)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			1				279.9
Income before Income Taxes			2				231.1
Tax Adjustments *1			3				6.8
Taxable Income before Current Deductible Temporary Differences *2			4				237.9
Effective Statutory Tax Rate			5				38.00%/35.60	%
Deferred Tax Assets corresponding to Taxable Income before Current Deductible Temporary Differences [ 4 x 5 ]			6				86.8

 

*1.	Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.

*2.	Taxable Income before Current Deductible Temporary Differences is an estimate of taxable income before adjusting deductible temporary differences as of March 31, 2013.

(Reference) Past results of taxable income (tax loss)

 

		(Billions of yen)
Fiscal 2008			10.3
Fiscal 2009			16.7
Fiscal 2010			20.1
Fiscal 2011			30.8
Fiscal 2012 (estimate)			26.0

 

1.	Figures are taxable income (tax loss) amounts per the final corporation tax returns before deducting tax losses carried forward from prior years. Subsequent amendments have not been reflected.

2.	Figure for Fiscal 2012 is an estimate of taxable income.

2. Breakdown of Deferred Tax Assets

 

						(Billions of yen)
						As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
										Change from September 30, 2012				Change from March 31, 2012
Reserves for Possible Losses on Loans			7				5.3				(1.8	)			(2.1	)			7.1				7.4
Impairment of Securities			8				51.3				(3.6	)			(0.4	)			55.0				51.8
Net Unrealized Losses on Other Securities			9				1.1				(2.4	)			(2.3	)			3.5				3.4
Reserve for Employee Retirement Benefits			10				13.8				0.7				1.3				13.0				12.4
Net Deferred Hedge Losses			11				0.6				(0.3	)			(1.6	)			0.9				2.2
Tax Losses Carried Forward			12				—				—				—				—				—
Other			13				12.3				0.4				(0.2	)			11.8				12.5
Total Deferred Tax Assets			14				84.6				(7.1	)			(5.4	)			91.7				90.0
Valuation Allowance			15				(58.9	)			6.2				5.7				(65.2	)			(64.7	)
Sub-Total [ 14 + 15 ]			16				25.6				(0.8	)			0.2				26.5				25.3
Amount related to Retirement Benefits Accounting *1			17				(5.3	)			—				—				(5.3	)			(5.3	)
Net Unrealized Gains on Other Securities			18				(17.8	)			(13.1	)			(11.0	)			(4.7	)			(6.7	)
Net Deferred Hedge Gains			19				—				—				—				—				—
Other			20				(0.4	)			(0.1	)			0.0				(0.3	)			(0.4	)
Total Deferred Tax Liabilities			21				(23.6	)			(13.2	)			(11.0	)			(10.3	)			(12.5	)
Net Deferred Tax Assets (Liabilities) [16 + 21]			22				2.0				(14.1	)			(10.7	)			16.1				12.8
Tax effects related to Net Unrealized Losses (Gains) on Other Securities *2			23				(17.8	)			(13.6	)			(11.9	)			(4.2	)			(5.8	)
Tax effects related to Net Deferred Hedge Losses (Gains)			24				0.6				(0.3	)			(1.6	)			0.9				2.2
Tax effects related to others			25				19.2				(0.1	)			2.8				19.4				16.3

 

*1	Amount related to Retirement Benefits Accounting is deferred tax liabilities related to gains on securities contributed to employee retirement benefit trust.

*2	Tax effects related to Net Unrealized Losses (Gains) on Other Securities is the amount after deducting Valuation Allowance.

 

 

Assessment of Recoverability of Deferred Tax Assets is based on the provisory clause of 5. (1) „ of “Audit Guideline for Considering Recoverability of Deferred Tax Assets” (JICPA Audit Committee Report No. 66). Period for future taxable income considered in the assessment is five years.

Future taxable income was estimated using assumptions used in the Business Plan, etc. Details of the respective estimated five-year totals are as follows:

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥279.9 billion [1]

Income before Income Taxes: ¥231.1 billion [2]

Taxable Income before Current Deductible Temporary Differences: ¥237.9 billion [4].

On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans amount to ¥84.6 billion [14]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥58.9 billion [15] was provided. After deducting Deferred Tax Liabilities of ¥23.6 billion [21] from the balance, Net Deferred Tax Assets of ¥2.0 billion [22] was recorded on the balance sheet.

 

The above includes forward-looking information. See the disclaimer at the end of the table of contents located at the beginning of this document.

 

2-40

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Mizuho Financial Group, Inc.

 

IV. OTHERS

1. Breakdown of Deposits (Domestic Offices)

Non-Consolidated

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31,  2012
Deposits			74,453.0				3,106.5				3,462.4				71,346.4				70,990.6
Individual Deposits			37,782.8				475.8				771.8				37,307.0				37,011.0
Corporate Deposits			31,433.6				1,896.5				1,924.9				29,537.1				29,508.6
Financial/Government Institutions			5,236.5				734.2				765.6				4,502.3				4,470.9
Mizuho Bank
Deposits			59,920.5				2,230.9				2,216.3				57,689.6				57,704.1
Individual Deposits			36,404.8				506.0				866.8				35,898.7				35,538.0
Corporate Deposits			20,796.4				1,281.2				1,284.2				19,515.2				19,512.2
Financial/Government Institutions			2,719.2				443.6				65.2				2,275.6				2,653.9
Mizuho Corporate Bank
Deposits			12,573.3				1,044.8				1,380.1				11,528.4				11,193.1
Individual Deposits			28.8				22.0				24.4				6.8				4.3
Corporate Deposits			10,088.5				662.6				632.8				9,425.9				9,455.6
Financial/Government Institutions			2,455.9				360.2				722.8				2,095.7				1,733.1
Mizuho Trust & Banking
Deposits			1,959.1				(169.2	)			(134.1	)			2,128.3				2,093.3
Individual Deposits			1,349.1				(52.2	)			(119.4	)			1,401.4				1,468.6
Corporate Deposits			548.6				(47.3	)			7.8				595.9				540.8
Financial/Government Institutions			61.3				(69.6	)			(22.4	)			130.9				83.8

 

*	Above figures are before adjustment of transit accounts for inter-office transactions, and do not include deposits booked at overseas offices and offshore deposits.

 

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Mizuho Financial Group, Inc.

 

2. Number of Directors and Employees

Aggregated Figures of Mizuho Financial Group, Inc. and the 3 Banks

 

		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Members of the Board of Directors and Auditors			32				(1	)			(6	)			33				38
Executive Officers (excluding those doubling as directors)			91				(3	)			(4	)			94				95
Employees (excluding Executive Officers)			30,742				(719	)			(641	)			31,461				31,383
*  The numbers have been adjusted for Members of the Board of Directors and Auditors and Executive Officers doubling other positions.
Mizuho Financial Group, Inc. (Non-Consolidated)
Mizuho Financial Group, Inc.
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Members of the Board of Directors and Auditors			14				—				—				14				14
Executive Officers (excluding those doubling as directors)			11				—				5				11				6
Employees (excluding Executive Officers)			1,061				(4	)			462				1,065				599
Non-Consolidated
Mizuho Bank
		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Members of the Board of Directors and Auditors			8				(1	)			(2	)			9				10
Executive Officers (excluding those doubling as directors)			53				(2	)			19				55				34
Employees (excluding Executive Officers)			18,301				(589	)			(858	)			18,890				19,159
Mizuho Corporate Bank
Members of the Board of Directors and Auditors			9				—				(1	)			9				10
Executive Officers (excluding those doubling as directors)			53				—				13				53				40
Employees (excluding Executive Officers)			8,263				(78	)			(187	)			8,341				8,450
Mizuho Trust & Banking
Members of the Board of Directors and Auditors			9				—				—				9				9
Executive Officers (excluding those doubling as directors)			25				(1	)			4				26				21
Employees (excluding Executive Officers)			3,117				(48	)			(58	)			3,165				3,175

 

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Mizuho Financial Group, Inc.

 

3. Number of Branches and Offices

Non-Consolidated

Aggregated Figures of the 3 Banks

		As of March 31, 2013												As of September 30, 2012				As of March 31, 2012
						Change from September 30, 2012				Change from March 31, 2012
Head Offices and Domestic Branches			453				1				3				452				450
Overseas Branches			22				—				—				22				22
Domestic Sub-Branches			55				1				4				54				51
Overseas Sub-Branches			11				1				—				10				11
Overseas Representative Offices			6				(1	)			—				7				6
*  Head Offices and Domestic Branches do not include in-store branches (2), branches and offices for remittance purposes only (41), branches offering account transfer services only (2), branches and offices to maintain shared ATMs only (1), internet branches (1) and pension plan advisory offices (1).
Mizuho Bank
Head Office and Domestic Branches			399				1				3				398				396
Overseas Branches			—				—				—				—				—
Domestic Sub-Branches			39				1				2				38				37
Overseas Sub-Branches			—				—				—				—				—
Overseas Representative Offices			—				—				—				—				—
*  Head Office and Domestic Branches do not include in-store branches (2), branches and offices for remittance purposes only (17), branches offering account transfer services only (2), branches and offices to maintain shared ATMs only (1), internet branches (1) and pension plan advisory offices (1).
Mizuho Corporate Bank
Head Office and Domestic Branches			18				—				—				18				18
Overseas Branches			22				—				—				22				22
Domestic Sub-Branches			—				—				—				—				—
Overseas Sub-Branches			11				1				—				10				11
Overseas Representative Offices			6				(1	)			—				7				6
*  Head Office and Domestic Branches do not include branches and offices for remittance purposes only (24).
Mizuho Trust & Banking
Head Office and Domestic Branches			36				—				—				36				36
Overseas Branches			—				—				—				—				—
Domestic Sub-Branches			16				—				2				16				14
Overseas Sub-Branches			—				—				—				—				—
Overseas Representative Offices			—				—				—				—				—

 

2-43

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Mizuho Financial Group, Inc.

 

4. Earnings Plan for Fiscal 2013

Consolidated

 

		(Billions of yen)
		First Half				Fiscal 2013
Ordinary Profits			340.0				740.0
Net Income			250.0				500.0

Non-Consolidated

New Mizuho Bank, Mizuho Trust & Banking

 

		(Billions of yen)
		Fiscal 2013
		Aggregated Figures of 2 Banks				MHBK *1				MHTB *2
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)			710.0				660.0				50.0
Ordinary Profits			595.0				555.0				40.0
Net Income			450.0				415.0				35.0
Credit-related Costs			(100.0	)			(95.0	)			(5.0	)

 

*1	Figures of MHBK represent the figures of new MHBK after the merger of MHBK and MHCB.

*2	Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) of MHTB excludes the amounts of Credit Costs for Trust Accounts.

The above information constitute forward-looking statements. Please see the legend regarding forward-looking statements in CONTENTS.

 

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Mizuho Bank, Ltd.

 

(Attachments)

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO BANK

		Millions of yen
		As of March 31, 2013 (A)				As of March 31, 2012 (B)				Change (A) - (B)
Assets
Cash and Due from Banks		¥	4,817,867			¥	3,076,523			¥	1,741,343
Call Loans			9,890,000				8,640,000				1,250,000
Guarantee Deposits Paid under Securities Borrowing Transactions			202,893				705,783				(502,890	)
Other Debt Purchased			540,487				764,040				(223,552	)
Trading Assets			897,689				1,106,364				(208,675	)
Money Held in Trust			—				965				(965	)
Securities			25,609,616				25,199,189				410,427
Loans and Bills Discounted			32,274,275				32,540,885				(266,610	)
Foreign Exchange Assets			116,627				109,477				7,150
Other Assets			1,413,026				2,017,217				(604,191	)
Tangible Fixed Assets			714,978				735,924				(20,946	)
Intangible Fixed Assets			230,457				221,406				9,051
Deferred Tax Assets			128,906				222,795				(93,888	)
Customers’ Liabilities for Acceptances and Guarantees			1,016,109				959,117				56,992
Reserves for Possible Losses on Loans			(295,863	)			(344,674	)			48,811
Reserve for Possible Losses on Investments			(12	)			(1	)			(10	)
Total Assets		¥	77,557,060			¥	75,955,014			¥	1,602,045
Liabilities
Deposits		¥	59,933,897			¥	57,744,476			¥	2,189,420
Negotiable Certificates of Deposit			1,359,520				1,267,290				92,230
Call Money			1,665,700				1,193,800				471,900
Payables under Repurchase Agreements			4,999				—				4,999
Guarantee Deposits Received under Securities Lending Transactions			3,423,408				2,410,375				1,013,033
Trading Liabilities			212,103				275,934				(63,830	)
Borrowed Money			4,810,868				6,753,601				(1,942,733	)
Foreign Exchange Liabilities			14,163				12,397				1,766
Bonds and Notes			805,400				738,200				67,200
Other Liabilities			1,587,915				2,266,795				(678,879	)
Reserve for Bonus Payments			8,845				8,948				(103	)
Reserve for Reimbursement of Deposits			15,366				14,612				754
Reserve for Reimbursement of Debentures			35,417				20,193				15,224
Deferred Tax Liabilities for Revaluation Reserve for Land			65,768				66,381				(612	)
Acceptances and Guarantees			1,016,109				959,117				56,992
Total Liabilities			74,959,485				73,732,123				1,227,361
Net Assets
Common Stock and Preferred Stock			700,000				700,000				—
Capital Surplus			1,057,242				1,057,242				—
Capital Reserve			490,707				490,707				—
Other Capital Surplus			566,535				566,535				—
Retained Earnings			516,515				371,745				144,769
Appropriated Reserve			19,493				1,332				18,161
Other Retained Earnings			497,021				370,413				126,608
Retained Earnings Brought Forward			497,021				370,413				126,608
Total Shareholders’ Equity			2,273,758				2,128,988				144,769
Net Unrealized Gains (Losses) on Other Securities, net of Taxes			209,629				(10,556	)			220,185
Net Deferred Hedge Gains (Losses), net of Taxes			(781	)			(11,621	)			10,840
Revaluation Reserve for Land, net of Taxes			114,969				116,081				(1,111	)
Total Valuation and Translation Adjustments			323,817				93,903				229,914
Total Net Assets			2,597,575				2,222,891				374,684
Total Liabilities and Net Assets		¥	77,557,060			¥	75,955,014			¥	1,602,045

 

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Mizuho Bank, Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO BANK

 

		Millions of yen
		For the fiscal year ended March 31, 2013 (A)				For the fiscal year ended March 31, 2012 (B)				Change (A) - (B)
Ordinary Income		¥	1,107,071			¥	1,068,214			¥	38,856
Interest Income			598,016				634,488				(36,471	)
Interest on Loans and Bills Discounted			419,514				444,381				(24,867	)
Interest and Dividends on Securities			113,263				117,172				(3,909	)
Fee and Commission Income			222,588				203,465				19,123
Trading Income			5,207				23,337				(18,129	)
Other Operating Income			161,043				98,743				62,300
Other Ordinary Income			120,213				108,179				12,034
Ordinary Expenses			831,873				876,840				(44,966	)
Interest Expenses			84,193				89,116				(4,923	)
Interest on Deposits			30,676				35,658				(4,981	)
Interest on Debentures			—				384				(384	)
Fee and Commission Expenses			57,275				55,720				1,555
Trading Expenses			1,853				675				1,177
Other Operating Expenses			16,060				15,853				207
General and Administrative Expenses			566,279				603,972				(37,692	)
Other Ordinary Expenses			106,210				111,501				(5,290	)
Ordinary Profits			275,197				191,374				83,823
Extraordinary Gains			90				101				(10	)
Extraordinary Losses			12,088				36,670				(24,581	)
Income before Income Taxes			263,198				154,805				108,393
Income Taxes:
Current			8,980				436				8,543
Deferred			19,713				24,213				(4,500	)
Net Income		¥	234,505			¥	130,155			¥	104,350

 

2-46

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Mizuho Bank, Ltd.

 

NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

OF MIZUHO BANK

 

		Millions of yen
		Shareholders’ Equity																																				Valuation and Translation Adjustments
						Capital Surplus												Retained Earnings
		Common Stock and Preferred Stock																Appropriated Reserve				Other Retained Earnings				Total Retained Earnings				Treasury Stock				Total Shareholders’ Equity				Net Unrealized Gains (Losses) on Other Securities, net of Taxes				Net Deferred Hedge Gains (Losses), net of Taxes				Revaluation Reserve for Land, net of Taxes				Total Valuation and Translation Adjustments				Total Net Assets
						Capital Reserve				Other Capital Surplus				Total Capital Surplus								Retained Earnings Brought Forward
Balance as of April 1, 2012		¥	700,000			¥	490,707			¥	566,535			¥	1,057,242			¥	1,332			¥	370,413			¥	371,745				—			¥	2,128,988			¥	(10,556	)		¥	(11,621	)		¥	116,081			¥	93,903			¥	2,222,891
Changes during the fiscal year
Cash Dividends			—				—				—				—				18,161				(108,967	)			(90,806	)			—				(90,806	)			—				—				—				—				(90,806	)
Net Income			—				—				—				—				—				234,505				234,505				—				234,505				—				—				—				—				234,505
Transfer from Revaluation Reserve for Land, net of Taxes			—				—				—				—				—				1,070				1,070				—				1,070				—				—				—				—				1,070
Net Changes in Items other than Shareholders’ Equity			—				—				—				—				—				—				—				—				—				220,185				10,840				(1,111	)			229,914				229,914
Total Changes during the fiscal year			—				—				—				—				18,161				126,608				144,769				—				144,769				220,185				10,840				(1,111	)			229,914				374,684
Balance as of March 31, 2013		¥	700,000			¥	490,707			¥	566,535			¥	1,057,242			¥	19,493			¥	497,021			¥	516,515				—			¥	2,273,758			¥	209,629			¥	(781	)		¥	114,969			¥	323,817			¥	2,597,575

 

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Mizuho Corporate Bank, Ltd.

 

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO CORPORATE BANK

 

		Millions of yen
		As of March 31, 2013 (A)				As of March 31, 2012 (B)				Change (A) - (B)
Assets
Cash and Due from Banks		¥	5,213,082			¥	4,426,242			¥	786,839
Call Loans			483,401				229,155				254,245
Receivables under Resale Agreements			969,105				1,006,263				(37,157	)
Guarantee Deposits Paid under Securities Borrowing Transactions			986,277				1,293,030				(306,752	)
Other Debt Purchased			125,873				113,670				12,203
Trading Assets			5,494,339				4,423,962				1,070,376
Money Held in Trust			2,836				1				2,835
Securities			26,985,546				24,789,261				2,196,285
Loans and Bills Discounted			31,187,804				28,058,800				3,129,003
Foreign Exchange Assets			1,255,731				879,653				376,077
Derivatives other than for Trading			5,096,899				5,209,806				(112,907	)
Other Assets			1,249,707				1,378,450				(128,742	)
Tangible Fixed Assets			96,210				94,695				1,515
Intangible Fixed Assets			59,575				63,166				(3,591	)
Deferred Tax Assets			—				62,494				(62,494	)
Customers’ Liabilities for Acceptances and Guarantees			4,587,056				3,953,368				633,687
Reserves for Possible Losses on Loans			(333,355	)			(220,237	)			(113,117	)
Reserve for Possible Losses on Investments			(1,196	)			(1,174	)			(22	)
Total Assets		¥	83,458,896			¥	75,760,611			¥	7,698,285
Liabilities
Deposits		¥	22,549,865			¥	19,679,512			¥	2,870,353
Negotiable Certificates of Deposit			10,915,095				9,831,173				1,083,921
Call Money			13,053,038				11,946,104				1,106,933
Payables under Repurchase Agreements			6,736,846				4,572,422				2,164,423
Guarantee Deposits Received under Securities Lending Transactions			5,285,682				3,629,352				1,656,329
Trading Liabilities			3,646,047				3,332,789				313,258
Borrowed Money			2,795,165				5,584,005				(2,788,840	)
Foreign Exchange Liabilities			291,438				268,281				23,157
Short-term Bonds			40,000				97,400				(57,400	)
Bonds and Notes			3,317,003				3,112,154				204,848
Derivatives other than for Trading			5,183,062				5,168,223				14,839
Other Liabilities			791,241				938,212				(146,970	)
Reserve for Bonus Payments			8,928				8,131				797
Reserve for Possible Losses on Sales of Loans			48				8				40
Reserve for Contingencies			3,314				2,003				1,311
Deferred Tax Liabilities			86,500				—				86,500
Deferred Tax Liabilities for Revaluation Reserve for Land			16,209				16,861				(652	)
Acceptances and Guarantees			4,587,056				3,953,368				633,687
Total Liabilities			79,306,546				72,140,005				7,166,540
Net Assets
Common Stock and Preferred Stock			1,404,065				1,404,065				—
Capital Surplus			1,039,244				1,039,244				—
Capital Reserve			578,540				578,540				—
Other Capital Surplus			460,703				460,703				—
Retained Earnings			1,102,288				990,701				111,587
Appropriated Reserve			29,443				1,355				28,087
Other Retained Earnings			1,072,845				989,345				83,499
Retained Earnings Brought Forward			1,072,845				989,345				83,499
Total Shareholders’ Equity			3,545,598				3,434,010				111,587
Net Unrealized Gains (Losses) on Other Securities, net of Taxes			459,836				2,024				457,812
Net Deferred Hedge Gains (Losses), net of Taxes			119,539				156,015				(36,476	)
Revaluation Reserve for Land, net of Taxes			27,375				28,554				(1,178	)
Total Valuation and Translation Adjustments			606,752				186,594				420,157
Total Net Assets			4,152,350				3,620,605				531,744
Total Liabilities and Net Assets		¥	83,458,896			¥	75,760,611			¥	7,698,285

 

2-48

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Mizuho Corporate Bank, Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO CORPORATE BANK

 

		Millions of yen
		For the fiscal year ended March 31, 2013 ( A)				For the fiscal year ended March 31, 2012 (B)				Change (A) - (B)
Ordinary Income		¥	1,160,339			¥	1,075,096			¥	85,242
Interest Income			678,189				675,903				2,286
Interest on Loans and Bills Discounted			396,583				354,552				42,031
Interest and Dividends on Securities			195,704				214,666				(18,961	)
Fee and Commission Income			184,242				158,169				26,072
Trading Income			44,129				21,272				22,857
Other Operating Income			195,651				198,487				(2,836	)
Other Ordinary Income			58,126				21,263				36,862
Ordinary Expenses			900,643				724,882				175,761
Interest Expenses			276,493				280,892				(4,398	)
Interest on Deposits			51,996				52,913				(917	)
Fee and Commission Expenses			25,192				23,248				1,943
Other Operating Expenses			65,457				67,931				(2,473	)
General and Administrative Expenses			259,604				263,302				(3,698	)
Other Ordinary Expenses			273,895				89,507				184,387
Ordinary Profits			259,695				350,214				(90,518	)
Extraordinary Gains			618				1,438				(820	)
Extraordinary Losses			2,540				1,401				1,139
Income before Income Taxes			257,773				350,251				(92,478	)
Income Taxes:
Current			20,827				40,495				(19,668	)
Refund of Income Taxes			(14,113	)			(147	)			(13,965	)
Deferred			212				42,700				(42,488	)
Net Income		¥	250,846			¥	267,201			¥	(16,354	)

 

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Mizuho Corporate Bank, Ltd.

 

NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS OF MIZUHO CORPORATE BANK

 

		Millions of yen
		Shareholders’ Equity																																				Valuation and Translation Adjustments																Total Net Assets
		Common Stock and Preferred Stock				Capital Surplus												Retained Earnings												Treasury Stock				Total Shareholders’ Equity				Net Unrealized Gains (Losses) on Other Securities, net of Taxes				Net Deferred Hedge Gains (Losses), net of Taxes				Revaluation Reserve for Land, net of Taxes				Total Valuation and Translation Adjustments
						Capital Reserve				Other Capital Surplus				Total Capital Surplus				Appropriated Reserve				Other Retained Earnings				Total Retained Earnings
																						Retained Earnings Brought Forward
Balance as of April 1, 2012		¥	1,404,065			¥	578,540			¥	460,703			¥	1,039,244			¥	1,355			¥	989,345			¥	990,701				—			¥	3,434,010			¥	2,024			¥	156,015			¥	28,554			¥	186,594			¥	3,620,605
Changes during the fiscal year
Cash Dividends			—				—				—				—				28,087				(168,525	)			(140,438	)			—				(140,438	)			—				—				—				—				(140,438	)
Net Income			—				—				—				—				—				250,846				250,846				—				250,846				—				—				—				—				250,846
Transfer from Revaluation Reserve for Land, net of Taxes			—				—				—				—				—				1,178				1,178				—				1,178				—				—				—				—				1,178
Net Changes in Items other than Shareholders’ Equity			—				—				—				—				—				—				—				—				—				457,812				(36,476	)			(1,178	)			420,157				420,157
Total Changes during the fiscal year			—				—				—				—				28,087				83,499				111,587				—				111,587				457,812				(36,476	)			(1,178	)			420,157				531,744
Balance as of March 31, 2013		¥	1,404,065			¥	578,540			¥	460,703			¥	1,039,244			¥	29,443			¥	1,072,845			¥	1,102,288				—			¥	3,545,598			¥	459,836			¥	119,539			¥	27,375			¥	606,752			¥	4,152,350

 

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Mizuho Trust & Banking Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO TRUST & BANKING

 

		Millions of yen
		As of March 31, 2013 (A)				As of March 31, 2012 (B)				Change (A) - (B)
Assets
Cash and Due from Banks		¥	621,643			¥	655,446			¥	(33,802	)
Call Loans			6,583				4,928				1,655
Other Debt Purchased			70,848				91,187				(20,338	)
Trading Assets			72,374				65,117				7,256
Securities			1,829,069				2,114,064				(284,994	)
Loans and Bills Discounted			3,726,100				3,278,976				447,124
Foreign Exchange Assets			361				137				223
Other Assets			118,643				141,083				(22,439	)
Tangible Fixed Assets			27,559				28,567				(1,008	)
Intangible Fixed Assets			17,560				18,444				(884	)
Deferred Tax Assets			2,040				12,809				(10,769	)
Customers’ Liabilities for Acceptances and Guarantees			46,682				49,548				(2,865	)
Reserves for Possible Losses on Loans			(16,804	)			(17,971	)			1,167
Reserve for Possible Losses on Investments			(6	)			(0	)			(6	)
Total Assets		¥	6,522,657			¥	6,442,339			¥	80,317
Liabilities
Deposits		¥	1,994,802			¥	2,104,687			¥	(109,885	)
Negotiable Certificates of Deposit			1,042,040				1,000,640				41,400
Call Money			885,188				780,724				104,463
Guarantee Deposits Received under Securities Lending Transactions			477,688				384,723				92,964
Trading Liabilities			67,781				65,282				2,499
Borrowed Money			522,951				766,352				(243,401	)
Foreign Exchange Liabilities			—				14				(14	)
Bonds and Notes			78,700				88,500				(9,800	)
Due to Trust Accounts			918,454				805,241				113,212
Other Liabilities			49,931				22,444				27,487
Reserve for Bonus Payments			1,936				1,942				(6	)
Reserve for Contingencies			13,544				13,520				23
Reserve for Reimbursement of Deposits			1,097				1,157				(60	)
Acceptances and Guarantees			46,682				49,548				(2,865	)
Total Liabilities			6,100,798				6,084,780				16,018
Net Assets
Common Stock and Preferred Stock			247,369				247,369				—
Capital Surplus			15,505				15,505				—
Capital Reserve			15,505				15,505				—
Retained Earnings			98,723				72,827				25,895
Appropriated Reserve			9,508				9,508				—
Other Retained Earnings			89,214				63,319				25,895
Retained Earnings Brought Forward			89,214				63,319				25,895
Total Shareholders’ Equity			361,598				335,702				25,895
Net Unrealized Gains (Losses) on Other Securities, net of Taxes			61,399				25,988				35,410
Net Deferred Hedge Gains (Losses), net of Taxes			(1,139	)			(4,132	)			2,993
Total Valuation and Translation Adjustments			60,260				21,856				38,403
Total Net Assets			421,858				357,559				64,299
Total Liabilities and Net Assets		¥	6,522,657			¥	6,442,339			¥	80,317

 

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COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO TRUST & BANKING

 

		Millions of yen
		For the fiscal year ended March 31, 2013 (A)				For the fiscal year ended March 31, 2012 (B)				Change (A) - (B)
Ordinary Income		¥	170,075			¥	174,920			¥	(4,844	)
Fiduciary Income			47,794				48,450				(656	)
Interest Income			54,443				59,410				(4,966	)
Interest on Loans and Bills Discounted			37,833				41,669				(3,836	)
Interest and Dividends on Securities			14,949				15,617				(667	)
Fee and Commission Income			46,232				45,156				1,075
Trading Income			2,139				2,061				78
Other Operating Income			12,143				13,385				(1,241	)
Other Ordinary Income			7,322				6,456				866
Ordinary Expenses			135,219				138,859				(3,640	)
Interest Expenses			13,398				16,687				(3,289	)
Interest on Deposits			2,958				4,478				(1,519	)
Fee and Commission Expenses			24,556				22,949				1,607
Other Operating Expenses			1,240				1,747				(506	)
General and Administrative Expenses			81,995				86,064				(4,068	)
Other Ordinary Expenses			14,028				11,410				2,617
Ordinary Profits			34,856				36,060				(1,204	)
Extraordinary Gains			254				—				254
Extraordinary Losses			1,341				107				1,233
Income before Income Taxes			33,769				35,953				(2,184	)
Income Taxes:
Current			10,751				(5	)			10,756
Deferred			(2,877	)			5,167				(8,044	)
Net Income		¥	25,895			¥	30,791			¥	(4,896	)

 

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NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS OF MIZUHO TRUST & BANKING

 

		Millions of yen
		Shareholders’ Equity																																				Valuation and Translation Adjustments												Stock Acquisition Rights				Total Net Assets
		Common Stock and Preferred Stock				Capital Surplus												Retained Earnings												Treasury Stock				Total Shareholders’ Equity				Net Unrealized Gains (Losses) on Other Securities, net of Taxes				Net Deferred Hedge Gains (Losses), net of Taxes				Total Valuation and Translation Adjustments
						Capital Reserve				Other Capital Surplus				Total Capital Surplus				Appropriated Reserve				Other Retained Earnings				Total Retained Earnings
																						Retained Earnings Brought Forward
Balance as of April 1, 2012		¥	247,369			¥	15,505				—			¥	15,505			¥	9,508			¥	63,319			¥	72,827				—			¥	335,702			¥	25,988			¥	(4,132	)		¥	21,856				—			¥	357,559
Changes during the fiscal year
Net Income			—				—				—				—				—				25,895				25,895				—				25,895				—				—				—				—				25,895
Net Changes in Items other than Shareholders’ Equity			—				—				—				—				—				—				—				—				—				35,410				2,993				38,403				—				38,403
Total Changes during the fiscal year			—				—				—				—				—				25,895				25,895				—				25,895				35,410				2,993				38,403				—				64,299
Balance as of March 31, 2013		¥	247,369			¥	15,505				—			¥	15,505			¥	9,508			¥	89,214			¥	98,723				—			¥	361,598			¥	61,399			¥	(1,139	)		¥	60,260				—			¥	421,858

 

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(Reference)

Statement of Trust Assets and Liabilities

 

Millions of yen
Assets		Amount				Liabilities		Amount
Loans and Bills Discounted			983,539			Money Trusts			14,907,257
Securities			951,509			Pension Trusts			3,914,854
Beneficiary Rights to the Trusts			34,941,950			Property Formation Benefit Trusts			5,044
Securities held in Custody Accounts			690,209			Investment Trusts			10,886,604
Money Claims			4,775,662			Money Entrusted Other than Money Trusts			1,285,111
Tangible Fixed Assets			4,782,791			Securities Trusts			5,378,176
Intangible Fixed Assets			225,352			Money Claims Trusts			4,078,483
Other Claims			1,302,984			Land and Fixtures Trusts			202,100
Due from Banking Account			918,454			Composite Trusts			9,330,484
Cash and Due from Banks			420,325			Other Trusts			4,663
Total			49,992,781			Total			49,992,781

 

Note:

1.	The statement is exclusive of the Trusts that are difficult to value monetarily.

2.	Beneficiary Rights to the Trusts include entrusted Trusts for asset maintenance of ¥33,869,470 million.

3.	Joint trust assets under the management of other companies: ¥816,892 million.

There is no “Trust assets under the service-shared co-trusteeship” in “Joint trust assets under the management of other companies”.

4.	Loans and Bills Discounted among Money Trusts with the contracts of principal indemnification amounted to ¥19,114 million. Of this amount, Balance of Non-Accrual Delinquent Loans is ¥3,060 million.

(Reference) Breakdown of Accounts of Money Trusts and Loan Trusts with the contracts of principal indemnification (including Trusts entrusted for asset management) are as follows:

Money Trusts

 

		Millions of yen
Assets		Amount				Liabilities		Amount
Loans and Bills Discounted			19,114			Principal			706,333
Securities			6			Reserve			66
Others			687,588			Others			309
Total			706,710			Total			706,710

 

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(Reference)

Comparison of Balances of Principal Items

 

		Millions of yen
Items		As of March 31, 2013 (A)				As of March 31, 2012 (B)				Change (A) - (B)
Total Amount of Funds			21,863,998				21,365,455				498,542
Deposits			1,994,802				2,104,687				(109,885	)
Negotiable Certificates of Deposit			1,042,040				1,000,640				41,400
Money Trusts			14,907,257				14,226,430				680,827
Pension Trusts			3,914,854				4,028,734				(113,879	)
Property Formation Benefit Trusts			5,044				4,963				80
Loans and Bills Discounted			4,709,640				4,088,017				621,622
of Banking accounts			3,726,100				3,278,976				447,124
of Trust accounts			983,539				809,041				174,498
Securities for Investments			2,780,578				3,027,792				(247,214	)
of Banking accounts			1,829,069				2,114,064				(284,994	)
of Trust accounts			951,509				913,728				37,780

 

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