Edgar Filing: MIZUHO FINANCIAL GROUP INC

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2018

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100- 8176

Japan

(Address of principal executive office)

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

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

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

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ☐ No ☒

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

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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

SIGNATURES

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


Date:		July 31, 2018

Mizuho Financial Group, Inc.

By:		/s/ Makoto Umemiya
Name:		Makoto Umemiya
Title:		Managing Executive Officer / Group CFO


For Immediate Release:		July 31, 2018

Consolidated Financial Statements for the First Quarter of Fiscal 2018

<Under Japanese GAAP>


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


Stock Code Number (Japan):	8411
Stock Exchange Listings:	Tokyo Stock Exchange (First Section), New York Stock Exchange
URL:	https://www.mizuho-fg.com/index.html
Representative:	Tatsufumi Sakai	President & CEO
For Inquiry:	Masahiro Kosugi	Executive Officer, General Manager of Accounting	Phone:	+81-3-6838-6101
Filing of Shihanki Hokokusho (scheduled):		August 14, 2018	Trading Accounts:	Established
Commencement of Dividend Payment (scheduled):		—
Supplementary Materials on Quarterly Results:		Attached
IR Conference on Quarterly Results:		Not Scheduled

Amounts less than one million yen are rounded down.

1. Financial Highlights for the First Quarter of Fiscal 2018 (for the three months ended June 30, 2018)

(1) Consolidated Results of Operations


(%: Changes from the corresponding period of the previous fiscal year)
	Ordinary Income				Ordinary Profits					Profit Attributable to Owners of Parent
	¥ million		%		¥ million		%			¥ million		%
1Q F2018		957,667		20.6		209,104		46.9			161,015		36.1
1Q F2017		793,607		1.6		142,344		(25.9	)		118,290		(10.8	)

Note:

Comprehensive Income:

1Q F2018: ¥171,761 million, (5.7) %; 1Q F2017: ¥182,182 million, 258.9 %


	Net Income per Share of Common Stock		Diluted Net Income per Share of Common Stock
	¥		¥
1Q F2018		6.34		6.34
1Q F2017		4.66		4.66

(2) Consolidated Financial Conditions


	Total Assets		Total Net Assets		Own Capital Ratio
	¥ million		¥ million		%
1Q F2018		207,552,619		9,620,407		4.4
Fiscal 2017		205,028,300		9,821,246		4.4

Reference:

Own Capital:

As of June 30, 2018: ¥9,141,395 million; As of March 31, 2018: ¥9,065,843 million

Note:

Own Capital Ratio is calculated as follows: (Total Net Assets - Stock Acquisition Rights - Non-controlling Interests) / Total Assets × 100

Own Capital Ratio stated above is not calculated based on the public notice of Own Capital Ratio.

2. Cash Dividends for Shareholders of Common Stock


	Annual Cash Dividends per Share
	First Quarter-end		Second Quarter-end		Third Quarter-end		Fiscal Year-end		Total
	¥		¥		¥		¥		¥
Fiscal 2017		—		3.75		—		3.75		7.50
Fiscal 2018		—
Fiscal 2018 (estimate)				3.75		—		3.75		7.50

Note: Revision of the latest announced estimates for cash dividends for shareholders of common stock : No

3. Consolidated Earnings Estimates for Fiscal 2018 (for the fiscal year ending March 31, 2019)


	(%: Changes from the corresponding period of the previous fiscal year)
		Profit Attributable to Owners of Parent					Net Income per Share of Common Stock
		¥ million		%			¥
1H F2018			—		—			—
Fiscal 2018			570,000		(1.1	)		22.46


Notes:	1.	Revision of the latest announced earnings estimates for fiscal 2018: No
	2.	The number of shares of common stock used in the above per share information is based on the weighted average of the average number of shares during 1Q and the number of outstanding shares as of June 30, 2018 (which is used as a proxy for the average number of shares during the remainder of the relevant period).

* Notes

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

(2) Adoption of Specified Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements: No

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

① Changes in accounting policies due to revisions of accounting standards, etc.: No

② Changes in accounting policies other than ① above: No

③ Changes in accounting estimates: No

④ Restatements: No

(4) Issued Shares of Common Stock


① Period-end issued shares (including treasury stock):	As of June 30, 2018	25,392,498,945 shares	As of March 31, 2018	25,389,644,945 shares
② Period-end treasury stock:	As of June 30, 2018	28,681,551 shares	As of March 31, 2018	24,829,446 shares
③ Average outstanding shares (first quarter):	1Q Fiscal 2018	25,364,804,435 shares	1Q Fiscal 2017	25,367,097,572 shares

This immediate release is outside the scope of quarterly review by certified public accountants or audit firms.

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

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

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

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

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

Mizuho Financial Group, Inc.

m Contents of Attachment


1.	Quarterly Consolidated Financial Statements and Others	p.1-2
	(1) Consolidated Balance Sheets	p.1-2
	(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	p.1-4
	(3) Note for Assumption of Going Concern	p.1-6
	(4) Note for Significant Changes in the Amount of Shareholders’ Equity	p.1-6
	ø SELECTED FINANCIAL INFORMATION For the First Quarter of Fiscal 2018

[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.

1-1

Mizuho Financial Group, Inc.

1. Quarterly Consolidated Financial Statements and Others

(1) Consolidated Balance Sheets


	*Millions of yen*
	As of March 31, 2018			As of June 30, 2018
Assets
Cash and Due from Banks	¥	47,725,360		¥	46,205,276
Call Loans and Bills Purchased		715,149			1,940,563
Receivables under Resale Agreements		8,080,873			9,709,658
Guarantee Deposits Paid under Securities Borrowing Transactions		4,350,527			2,169,172
Other Debt Purchased		2,713,742			2,593,511
Trading Assets		10,507,133			12,461,929
Money Held in Trust		337,429			308,716
Securities		34,183,033			33,597,118
Loans and Bills Discounted		79,421,473			80,797,606
Foreign Exchange Assets		1,941,677			2,012,127
Derivatives other than for Trading Assets		1,807,999			1,614,184
Other Assets		4,588,484			5,185,418
Tangible Fixed Assets		1,111,128			1,100,849
Intangible Fixed Assets		1,092,708			1,084,923
Net Defined Benefit Asset		996,173			977,672
Deferred Tax Assets		47,839			43,524
Customers’ Liabilities for Acceptances and Guarantees		5,723,186			6,017,315
Reserves for Possible Losses on Loans		(315,621	)		(266,950	)

Total Assets	¥	205,028,300		¥	207,552,619

1-2

Mizuho Financial Group, Inc.


	*Millions of yen*
	As of March 31, 2018			As of June 30, 2018
Liabilities
Deposits	¥	125,081,233		¥	125,836,832
Negotiable Certificates of Deposit		11,382,590			12,032,532
Call Money and Bills Sold		2,105,293			2,551,035
Payables under Repurchase Agreements		16,656,828			16,421,312
Guarantee Deposits Received under Securities Lending Transactions		1,566,833			1,461,051
Commercial Paper		710,391			753,308
Trading Liabilities		8,121,543			7,884,107
Borrowed Money		4,896,218			4,917,467
Foreign Exchange Liabilities		445,804			440,990
Short-term Bonds		362,185			335,948
Bonds and Notes		7,544,256			7,872,869
Due to Trust Accounts		4,733,131			4,587,255
Derivatives other than for Trading Liabilities		1,514,483			1,387,551
Other Liabilities		3,685,585			4,797,631
Reserve for Bonus Payments		66,872			16,055
Reserve for Variable Compensation		3,242			4,085
Net Defined Benefit Liability		58,890			58,842
Reserve for Director and Corporate Auditor Retirement Benefits		1,460			1,269
Reserve for Possible Losses on Sales of Loans		1,075			2,578
Reserve for Contingencies		5,622			5,342
Reserve for Reimbursement of Deposits		20,011			18,064
Reserve for Reimbursement of Debentures		30,760			29,561
Reserves under Special Laws		2,361			2,358
Deferred Tax Liabilities		421,002			430,894
Deferred Tax Liabilities for Revaluation Reserve for Land		66,186			65,948
Acceptances and Guarantees		5,723,186			6,017,315

Total Liabilities	¥	195,207,054		¥	197,932,212

Net Assets
Common Stock	¥	2,256,548		¥	2,256,767
Capital Surplus		1,134,922			1,138,449
Retained Earnings		4,002,835			4,069,202
Treasury Stock		(5,997	)		(6,709	)

Total Shareholders’ Equity		7,388,309			7,457,709

Net Unrealized Gains (Losses) on Other Securities		1,392,392			1,447,258
Deferred Gains or Losses on Hedges		(67,578	)		(88,011	)
Revaluation Reserve for Land		144,277			143,738
Foreign Currency Translation Adjustments		(85,094	)		(102,730	)
Remeasurements of Defined Benefit Plans		293,536			283,430

Total Accumulated Other Comprehensive Income		1,677,534			1,683,685

Stock Acquisition Rights		1,163			728
Non-controlling Interests		754,239			478,282

Total Net Assets		9,821,246			9,620,407

Total Liabilities and Net Assets	¥	205,028,300		¥	207,552,619

1-3

Mizuho Financial Group, Inc.

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

[Consolidated Statements of Income]


	*Millions of yen*
	For the three months ended June 30, 2017			For the three months ended June 30, 2018
Ordinary Income	¥	793,607		¥	957,667
Interest Income		381,591			472,864
Interest on Loans and Bills Discounted		246,024			287,227
Interest and Dividends on Securities		59,730			73,376
Fiduciary Income		10,942			11,476
Fee and Commission Income		156,381			166,932
Trading Income		57,374			74,455
Other Operating Income		86,592			89,272
Other Ordinary Income		100,724			142,667
Ordinary Expenses		651,263			748,562
Interest Expenses		188,736			277,446
Interest on Deposits		78,477			101,705
Fee and Commission Expenses		40,431			40,769
Other Operating Expenses		23,611			21,032
General and Administrative Expenses		362,106			355,066
Other Ordinary Expenses		36,377			54,247

Ordinary Profits		142,344			209,104

Extraordinary Gains		1,659			8,031
Extraordinary Losses		1,821			821

Income before Income Taxes		142,182			216,313

Income Taxes:
Current		50,611			45,765
Deferred		(36,991	)		3,228

Total Income Taxes		13,619			48,993

Profit		128,562			167,320

Profit Attributable to Non-controlling Interests		10,272			6,304

Profit Attributable to Owners of Parent	¥	118,290		¥	161,015

1-4

Mizuho Financial Group, Inc.

[Consolidated Statements of Comprehensive Income]


	*Millions of yen*
	For the three months ended June 30, 2017			For the three months ended June 30, 2018
Profit	¥	128,562		¥	167,320
Other Comprehensive Income		53,619			4,441
Net Unrealized Gains (Losses) on Other Securities		63,494			52,684
Deferred Gains or Losses on Hedges		910			(20,443	)
Revaluation Reserve for Land		(0	)		—
Foreign Currency Translation Adjustments		(4,019	)		(13,922	)
Remeasurements of Defined Benefit Plans		3,973			(9,720	)
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method		(10,737	)		(4,156	)

Comprehensive Income		182,182			171,761

(Breakdown)
Comprehensive Income Attributable to Owners of Parent		174,934			167,705
Comprehensive Income Attributable to Non-controlling Interests		7,247			4,055

1-5

Mizuho Financial Group, Inc.

(3) Note for Assumption of Going Concern

There is no applicable information.

(4) Note for Significant Changes in the Amount of Shareholders’ Equity

There is no applicable information.

1-6

SELECTED FINANCIAL INFORMATION

For the First Quarter of Fiscal 2018

<Under Japanese GAAP>

LOGO

C O N T E N T S

Notes:

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

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


FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2018	*See above Notes*		*Page*

1. Income Analysis	CON	NON		2- 1

2. Net Gains/Losses on Stocks	CON	NON		2- 3

3. Unrealized Gains/Losses on Securities	CON	NON		2- 4

4. Deferred Hedge Gains/Losses on Derivative Transactions Qualifying for Hedge Accounting	NON			2- 6

5. Status of Disclosed Claims under the Financial Reconstruction Act (“FRA”)	CON	NON		2- 7

6. Status of Deposits and Loans	NON			2- 9


Attachments	*Page*
Mizuho Bank, Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)		2- 10
Comparison of Non-Consolidated Statements of Income (selected items)		2- 11
Mizuho Trust & Banking Co., Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)		2- 12
Comparison of Non-Consolidated Statements of Income (selected items)		2- 13
Mizuho Securities Co., Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)		2- 14
Comparison of Non-Consolidated Statements of Income (selected items)		2- 15

Mizuho Financial Group, Inc.

FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2018

1. Income Analysis

Consolidated


		*(Billions of yen)*
		First Quarter of Fiscal 2018						First Quarter of Fiscal 2017
					Change			First Quarter of Fiscal 2017
Consolidated Gross Profits	1		475.7			35.6			440.1
Net Interest Income	2		195.4			2.5			192.8
Fiduciary Income	3		11.4			0.5			10.9
Credit Costs for Trust Accounts	4		—			—			—
Net Fee and Commission Income	5		126.1			10.2			115.9
Net Trading Income	6		74.4			17.0			57.3
Net Other Operating Income	7		68.2			5.2			62.9
General and Administrative Expenses	8		(355.0	)		7.0			(362.1	)
Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans)	9		(13.3	)		(8.2	)		(5.1	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others	10		35.9			11.6			24.3
Net Gains (Losses) related to Stocks	11		80.3			18.0			62.3
Equity in Income from Investments in Affiliates	12		4.2			(0.1	)		4.3
Other	13		(18.6	)		2.8			(21.5	)

Ordinary Profits	14		209.1			66.7			142.3

Net Extraordinary Gains (Losses)	15		7.2			7.3			(0.1	)
Income before Income Taxes	16		216.3			74.1			142.1
Income Taxes	17		(48.9	)		(35.3	)		(13.6	)
Profit	18		167.3			38.7			128.5
Profit Attributable to Non-controlling Interests	19		(6.3	)		3.9			(10.2	)

Profit Attributable to Owners of Parent	20		161.0			42.7			118.2


Credit-related Costs (including Credit Costs for Trust Accounts)	21		22.5			3.3			19.2

* Credit-related Costs [21] = Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans) [9] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [10] + Credit Costs for Trust Accounts [4]


(Reference)
Consolidated Net Business Profits	22	113.6	29.2	84.3

* Consolidated Net Business Profits [22] = 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	23	125	(8	)	133
Number of affiliates under the equity method	24	19	1		18

2-1

Mizuho Financial Group, Inc.

Non-Consolidated

Aggregate Figures for the 2 Banks


		*(Billions of yen)*
		First Quarter of Fiscal 2018												First Quarter of Fiscal 2017
		MHBK			MHTB			Aggregate Figures			Change			First Quarter of Fiscal 2017
Gross Profits	1		303.3			25.0			328.3			32.4			295.9
Net Interest Income	2		166.0			6.4			172.4			3.2			169.1
Fiduciary Income	3					11.2			11.2			0.4			10.7
Trust Fees for Jointly Operated Designated Money Trust	4					—			—			—			—
Credit Costs for Trust Accounts	5					—			—			—			—
Net Fee and Commission Income	6		75.3			5.2			80.6			11.4			69.1
Net Trading Income	7		17.5			0.4			18.0			10.6			7.4
Net Other Operating Income	8		44.3			1.7			46.0			6.5			39.5
General and Administrative Expenses (excluding Non-Recurring Losses)	9		(215.9	)		(20.5	)		(236.5	)		1.9			(238.5	)

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) *	10		87.3			4.4			91.8			34.4			57.4

Reversal of (Provision for) General Reserve for Losses on Loans	11		—			—			—			—			—

Net Business Profits	12		87.3			4.4			91.8			34.4			57.4
Net Gains (Losses) related to Bonds	13		*17.0*			*1.6*			*18.6*			(1.3	)		20.0

Net Non-Recurring Gains (Losses)	14		75.2			8.0			83.2			26.7			56.5
Net Gains (Losses) related to Stocks	15		64.2			8.4			72.6			1.1			71.5
Expenses related to Portfolio Problems	16		(12.5	)		—			(12.5	)		(8.1	)		(4.3	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others	17		37.2			0.0			37.2			17.4			19.8
Other	18		(13.7	)		(0.4	)		(14.1	)		16.4			(30.5	)

Ordinary Profits	19		162.5			12.5			175.0			61.1			113.9

Net Extraordinary Gains (Losses)	20		7.2			(0.0	)		7.2			5.4			1.8
Income before Income Taxes	21		169.8			12.5			182.3			66.5			115.7
Income Taxes	22		(49.1	)		(2.9	)		(52.0	)		(43.3	)		(8.7	)

Net Income	23		120.6			9.6			130.2			23.2			107.0

* Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) for MHTB excludes the amounts of “Credit Costs for Trust Accounts” [5].

Credit-related Costs	24		24.6			0.0			24.7			9.2			15.5
* Credit-related Costs [24] = Expenses related to Portfolio Problems [16] + Reversal of (Provision for) General Reserve for Losses on Loans [11] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [17] + Credit Costs for Trust Accounts [5]
(Reference) Breakdown of Credit-related Costs
Credit Costs for Trust Accounts	25					—			—			—			—
Reversal of (Provision for) General Reserve for Losses on Loans	26		36.5			0.0			36.5			18.6			17.9
Losses on Write-offs of Loans	27		(9.3	)		—			(9.3	)		(7.2	)		(2.1	)
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans	28		(2.3	)		0.0			(2.3	)		(2.1	)		(0.2	)
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries	29		0.0			—			0.0			(0.0	)		0.0
Reversal of (Provision for) Reserve for Contingencies	30		0.0			—			0.0			(0.0	)		0.0
Other (including Losses on Sales of Loans)	31		(0.0	)		—			(0.0	)		0.0			(0.1	)
Total	32		24.6			0.0			24.7			9.2			15.5

2-2

Mizuho Financial Group, Inc.

2. Net Gains/Losses on Stocks

Consolidated


	*(Billions of yen)*
	First Quarter of Fiscal 2018			Change			First Quarter of Fiscal 2017
Net Gains (Losses) related to Stocks		80.3			18.0			62.3
Gains on Sales		98.4			31.6			66.8
Losses on Sales		(9.3	)		(7.2	)		(2.0	)
Impairment (Devaluation)		(1.1	)		(0.7	)		(0.3	)
Reversal of (Provision for) Reserve for Possible Losses on Investments		—			—			—
Gains (Losses) on Derivatives other than for Trading		(7.7	)		(5.6	)		(2.1	)
Non-Consolidated
Aggregate Figures for the 2 Banks
	First Quarter of Fiscal 2018			Change			First Quarter of Fiscal 2017
Net Gains (Losses) related to Stocks		72.6			1.1			71.5
Gains on Sales		89.7			14.1			75.6
Losses on Sales		(8.8	)		(7.2	)		(1.6	)
Impairment (Devaluation)		(0.4	)		(0.1	)		(0.2	)
Reversal of (Provision for) Reserve for Possible Losses on Investments		—			—			—
Gains (Losses) on Derivatives other than for Trading		(7.7	)		(5.6	)		(2.1	)

Mizuho Bank
	First Quarter of Fiscal 2018			Change			First Quarter of Fiscal 2017
Net Gains (Losses) related to Stocks		64.2			1.5			62.6
Gains on Sales		80.7			14.1			66.5
Losses on Sales		(8.4	)		(6.8	)		(1.6	)
Impairment (Devaluation)		(0.4	)		(0.1	)		(0.2	)
Reversal of (Provision for) Reserve for Possible Losses on Investments		—			—			—
Gains (Losses) on Derivatives other than for Trading		(7.6	)		(5.5	)		(2.0	)

Mizuho Trust & Banking
	First Quarter of Fiscal 2018			Change			First Quarter of Fiscal 2017
Net Gains (Losses) related to Stocks		8.4			(0.4	)		8.9
Gains on Sales		9.0			(0.0	)		9.0
Losses on Sales		(0.4	)		(0.3	)		(0.0	)
Impairment (Devaluation)		—			—			—
Reversal of (Provision for) Reserve for Possible Losses on Investments		—			—			—
Gains (Losses) on Derivatives other than for Trading		(0.1	)		(0.0	)		(0.0	)

2-3

Mizuho Financial Group, Inc.

3. 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

(Billions of yen)

As of June 30, 2018

As of March 31, 2018

Book Value
(=Fair Value)

Unrealized Gains/Losses

Book Value
(=Fair Value)

Unrealized Gains/Losses

Gains

Losses

Gains

Losses

MHFG (Consolidated)

Other Securities

31,148.7

2,032.2

2,361.6

329.4

31,581.1

1,954.2

2,258.6

304.4

Japanese Stocks

3,681.6

2,140.0

2,173.6

33.5

3,582.2

2,017.3

2,050.9

33.5

Japanese Bonds

15,911.7

(2.1

)

29.0

31.1

16,535.6

5.4

37.8

32.4

Japanese Government Bonds

12,712.6

(3.6

)

4.0

7.7

13,332.0

0.6

10.2

9.6

Other

11,555.3

(105.7

)

158.9

264.7

11,463.2

(68.5

)

169.8

238.4

Foreign Bonds

8,352.1

(182.4

)

10.1

192.6

8,329.1

(166.0

)

11.6

177.7

*	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.

*	Unrealized Gains/Losses include ¥29.6 billion and ¥28.2 billion, which were recognized in the statement of income for June 30, 2018 and March 31, 2018 respectively, by applying the fair-value hedge method.

(2) Bonds Held to Maturity

(Billions of yen)

As of June 30, 2018

As of March 31, 2018

Book Value

Unrealized Gains/Losses

Book Value

Unrealized Gains/Losses

Gains

Losses

Gains

Losses

MHFG (Consolidated)

2,358.4

3.2

22.5

19.2

2,515.8

6.0

24.4

18.4

Non-Consolidated

Aggregate Figures for the 2 Banks

(1) Other Securities

(Billions of yen)

As of June 30, 2018

As of March 31, 2018

Book Value
(=Fair Value)

Unrealized Gains/Losses

Book Value
(=Fair Value)

Unrealized Gains/Losses

Gains

Losses

Gains

Losses

MHBK

Other Securities

29,031.1

1,706.3

2,024.0

317.6

29,418.1

1,617.8

1,909.2

291.3

Japanese Stocks

3,365.0

1,925.7

1,959.6

33.8

3,260.1

1,800.8

1,834.2

33.4

Japanese Bonds

15,262.8

(2.3

)

28.2

30.6

15,784.8

4.4

36.1

31.6

Japanese Government Bonds

12,425.6

(3.4

)

3.8

7.2

12,918.7

0.0

9.1

9.0

Other

10,403.2

(217.0

)

36.0

253.1

10,373.1

(187.4

)

38.8

226.2

Foreign Bonds

7,823.3

(176.0

)

9.0

185.0

7,870.9

(159.1

)

10.7

169.9

MHTB

Other Securities

1,055.9

128.6

142.5

13.9

1,042.5

124.6

139.1

14.5

Japanese Stocks

228.4

132.5

135.3

2.8

227.2

128.4

131.9

3.4

Japanese Bonds

341.1

0.3

0.7

0.4

463.3

1.0

1.6

0.5

Japanese Government Bonds

265.4

(0.2

)

0.2

0.4

390.4

0.5

1.0

0.5

Other

486.4

(4.1

)

6.4

10.6

351.9

(4.8

)

5.6

10.4

Foreign Bonds

269.8

(6.2

)

0.4

6.6

158.2

(5.9

)

0.1

6.1

Total

Other Securities

30,087.1

1,835.0

2,166.6

331.5

30,460.6

1,742.5

2,048.4

305.8

Japanese Stocks

3,593.5

2,058.3

2,095.0

36.7

3,487.4

1,929.3

1,966.1

36.8

Japanese Bonds

15,603.9

(2.0

)

29.0

31.0

16,248.1

5.5

37.8

32.2

Japanese Government Bonds

12,691.1

(3.6

)

4.0

7.7

13,309.1

0.6

10.2

9.6

Other

10,889.6

(221.2

)

42.5

263.7

10,725.0

(192.3

)

44.4

236.7

Foreign Bonds

8,093.1

(182.3

)

9.4

191.7

8,029.2

(165.1

)

10.9

176.1

*	In addition to “Securities” 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.

*	Unrealized Gains/Losses include ¥29.6 billion and ¥28.2 billion, which were recognized in the statement of income (aggregate figures for the 2 banks) for June 30, 2018 and March 31, 2018 respectively, by applying the fair-value hedge method.

2-4

Mizuho Financial Group, Inc.

(2) Bonds Held to Maturity

(Billions of yen)

As of June 30, 2018

As of March 31, 2018

Book Value

Unrealized Gains/Losses

Book Value

Unrealized Gains/Losses

Gains

Losses

Gains

Losses

MHBK

2,358.4

3.2

22.5

19.2

2,515.8

6.0

24.4

18.4

MHTB

—

Total

2,358.4

3.2

22.5

19.2

2,515.8

6.0

24.4

18.4

(3) Investments in Subsidiaries and Affiliates

(Billions of yen)

As of June 30, 2018

As of March 31, 2018

Book Value

Unrealized Gains/Losses

Book Value

Unrealized Gains/Losses

Gains

Losses

Gains

Losses

MHBK

108.6

173.4

175.6

2.1

108.6

216.0

218.4

2.3

MHTB

—

Total

108.6

173.4

175.6

2.1

108.6

216.0

218.4

2.3

(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. Unrealized Gains/Losses on Other Securities after excluding such Income/Loss (the “base amount”) are recorded directly to Net Assets after tax and other necessary adjustments. The base amounts are as follows:

Consolidated

(Billions of yen)

As of June 30, 2018

As of
March 31,
2018

Unrealized Gains/Losses

Unrealized
Gains/
Losses

Change

Other Securities

2,002.6

76.6

1,925.9

Japanese Stocks

2,099.6

115.4

1,984.2

Japanese Bonds

(2.1

)

(7.5

)

5.4

Japanese Government Bonds

(3.6

)

(4.2

)

0.6

Other

(94.9

)

(31.2

)

(63.7

)

Foreign Bonds

(171.7

)

(10.4

)

(161.2

)

Non-Consolidated

Aggregate Figures for the 2 Banks

(Billions of yen)

As of June 30, 2018

As of
March 31,
2018

Unrealized Gains/Losses

Unrealized
Gains/
Losses

Change

Other Securities

1,805.4

91.1

1,714.2

Japanese Stocks

2,017.9

121.7

1,896.2

Japanese Bonds

(2.0

)

(7.5

)

5.5

Japanese Government Bonds

(3.6

)

(4.2

)

0.6

Other

(210.4

)

(22.9

)

(187.4

)

Foreign Bonds

(171.5

)

(11.2

)

(160.2

)

2-5

Mizuho Financial Group, Inc.

4. Deferred Hedge Gains/Losses on Derivative Transactions Qualifying for Hedge Accounting

Non-Consolidated

Aggregate Figures for the 2 Banks

(Billions of yen)

As of June 30, 2018

As of March 31, 2018

Deferred Hedge Gains/Losses

Gains

Losses

Gains

Losses

MHBK

661.5

800.2

(138.6

)

632.8

741.8

(109.0

)

MHTB

92.0

89.8

2.2

95.6

93.3

2.3

Total

753.5

890.0

(136.4

)

728.5

835.1

(106.6

)

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

2-6

Mizuho Financial Group, Inc.

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

Consolidated


	*(Billions of yen)*
	As of June 30, 2018					As of March 31, 2018
Consolidated			Change			As of March 31, 2018
Claims against Bankrupt and Substantially Bankrupt Obligors		75.1		(12.2	)		87.3
Claims with Collection Risk		285.9		(5.7	)		291.7
Claims for Special Attention		209.2		(32.1	)		241.3
Total		570.3		(50.1	)		620.4

Trust Account
Claims against Bankrupt and Substantially Bankrupt Obligors		—		—			—
Claims with Collection Risk		2.8		—			2.8
Claims for Special Attention		—		—			—
Total		2.8		—			2.8

Total (Consolidated + Trust Account)
Claims against Bankrupt and Substantially Bankrupt Obligors		75.1		(12.2	)		87.3
Claims with Collection Risk		288.8		(5.7	)		294.5
Claims for Special Attention		209.2		(32.1	)		241.3
Total		573.1		(50.1	)		623.3

Note: Trust Account denotes trust accounts with contracts indemnifying the principal amounts.

2-7

Mizuho Financial Group, Inc.

Non-Consolidated

Aggregate Figures for the 2 Banks


	(Billions of yen, %)
	As of June 30, 2018						As of March 31, 2018
Total (Banking Account + Trust Account)				Change			As of March 31, 2018
Claims against Bankrupt and Substantially Bankrupt Obligors		85.9			9.2			76.6
Claims with Collection Risk		280.4			(3.8	)		284.2
Claims for Special Attention		168.3			(29.4	)		197.8
Sub-total [1]		534.7			(24.0	)		558.7
NPL ratio [1]/[2]		*0.61*	%		(0.04	)%		0.66	%
Normal Claims		85,978.8			2,334.5			83,644.2
Total [2]		86,513.5			2,310.5			84,203.0

MHBK
Claims against Bankrupt and Substantially Bankrupt Obligors		85.3			9.5			75.7
Claims with Collection Risk		275.0			(3.9	)		279.0
Claims for Special Attention		167.3			(29.4	)		196.8
Sub-total [3]		527.7			(23.8	)		551.6
NPL ratio [3]/[4]		*0.63*	%		(0.04	)%		0.68	%
Normal Claims		82,535.7			2,352.2			80,183.5
Total [4]		83,063.5			2,328.4			80,735.1

MHTB
Banking Account
Claims against Bankrupt and Substantially Bankrupt Obligors		0.6			(0.2	)		0.8
Claims with Collection Risk		2.5			0.0			2.4
Claims for Special Attention		0.9			(0.0	)		1.0
Sub-total [5]		4.1			(0.2	)		4.3
NPL ratio [5]/[6]		*0.11*	%		(0.00	)%		0.12	%
Normal Claims		3,434.9			(17.4	)		3,452.3
Total [6]		3,439.0			(17.6	)		3,456.6

Trust Account
Claims against Bankrupt and Substantially Bankrupt Obligors		—			—			—
Claims with Collection Risk		2.8			—			2.8
Claims for Special Attention		—			—			—
Sub-total [7]		2.8			—			2.8
NPL ratio [7]/[8]		*25.81*	%		0.64	%		25.16	%
Normal Claims		8.1			(0.2	)		8.3
Total [8]		10.9			(0.2	)		11.2

Notes:

1. Trust Account denotes trust accounts with contracts indemnifying the principal amounts.

2. NPL: Non-Performing Loans

2-8

Mizuho Financial Group, Inc.

6. Status of Deposits and Loans

Non-Consolidated

(1)-1 Deposits

Aggregate Figures for the 2 Banks

(Billions of yen)

As of June 30, 2018

As of
March 31,
2018

Change

MHBK

111,549.7

1,133.8

110,415.9

MHTB

3,536.7

130.2

3,406.5

Total

115,086.5

1,264.0

113,822.5

(1)-2 Domestic Deposits

Aggregate Figures for the 2 Banks

(Billions of yen)

As of June 30, 2018

As of
March 31,
2018

Change

MHBK

93,852.6

461.9

93,390.7

Individual deposits

42,577.2

780.4

41,796.8

MHTB

3,526.5

128.9

3,397.6

Individual deposits

973.1

(91.9

)

1,065.1

Total

97,379.2

590.8

96,788.3

Individual deposits

43,550.4

688.4

42,861.9

Note: Above figures do not include deposits booked at overseas offices and offshore deposits.

(2) Loans and Bills Discounted

Aggregate Figures for the 2 Banks

(Billions of yen)

As of June 30, 2018

As of
March 31,
2018

Change

MHBK

72,895.8

1,898.1

70,997.7

MHTB

3,400.4

(33.3

)

3,433.7

Total

76,296.3

1,864.8

74,431.4

Note: Loans to MHFG are included as follows:

As of June 30, 2018: ¥945.2 billion (from MHBK)

As of March 31, 2018: ¥1,083.1 billion (from MHBK)

(3) Interest Margins (Domestic Operations)

Mizuho Bank


		*(%)*
		First Quarter of Fiscal 2018 (For the three months)	Change	First Quarter of Fiscal 2017 (For the three months)
Return on Loans and Bills Discounted	1	0.81	(0.01)	0.83
Cost of Deposits	2	0.00	(0.00)	0.00
Loan and Deposit Rate Margin [1]-[2]	3	0.81	(0.01)	0.82
Notes: 1. Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG). 2. Deposits include NCDs.

(Reference) After excluding Loans to the Japanese government and others



Return on Loans and Bills Discounted	4	0.85	(0.03)	0.89
Loan and Deposit Rate Margin [4]-[2]	5	0.84	(0.03)	0.88

Mizuho Trust & Banking
		*(%)*
		First Quarter of Fiscal 2018 (For the three months)	Change	First Quarter of Fiscal 2017 (For the three months)
Return on Loans and Bills Discounted	6	0.62	(0.04)	0.66
Cost of Deposits	7	0.03	0.01	0.02
Loan and Deposit Rate Margin [6]-[7]	8	0.58	(0.05)	0.64
Notes: 1. Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG). 2. Deposits include NCDs.

(Reference) After excluding Loans to the Japanese government and others



Return on Loans and Bills Discounted	9	0.66	(0.03)	0.70
Loan and Deposit Rate Margin [9]-[7]	10	0.63	(0.05)	0.68
(Reference) Aggregate Figures for the 2 Banks
		*(%)*
		First Quarter of Fiscal 2018 (For the three months)	Change	First Quarter of Fiscal 2017 (For the three months)
Return on Loans and Bills Discounted	11	0.80	(0.02)	0.82
Cost of Deposits	12	0.00	(0.00)	0.00
Loan and Deposit Rate Margin [11]-[12]	13	0.79	(0.02)	0.81
Notes: 1. Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG). 2. Deposits include NCDs.

(Reference) After excluding Loans to the Japanese government and others

Return on Loans and Bills Discounted	14	0.84	(0.03)	0.87
Loan and Deposit Rate Margin [14]-[12]	15	0.83	(0.03)	0.87

2-9

Mizuho Bank, Ltd.

(Attachments)

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO BANK


	*Millions of yen*
	As of June 30, 2018 (A)			As of March 31, 2018 (B)			Change (A) - (B)
Assets
Cash and Due from Banks	¥	38,547,515		¥	38,625,732		¥	(78,216	)
Call Loans		248,936			366,290			(117,353	)
Receivables under Resale Agreements		1,138,648			639,352			499,296
Other Debt Purchased		437,749			443,136			(5,387	)
Trading Assets		3,976,187			3,467,593			508,594
Money Held in Trust		3,061			3,076			(14	)
Securities		32,632,530			33,189,959			(557,429	)
Loans and Bills Discounted		72,895,861			70,997,730			1,898,130
Foreign Exchange Assets		2,077,689			1,994,728			82,960
Derivatives other than for Trading		3,271,462			3,166,839			104,623
Other Assets		3,467,283			3,240,121			227,161
Tangible Fixed Assets		797,352			805,831			(8,478	)
Intangible Fixed Assets		794,530			799,723			(5,193	)
Prepaid Pension Cost		450,309			457,453			(7,144	)
Customers’ Liabilities for Acceptances and Guarantees		6,394,257			6,186,894			207,362
Reserves for Possible Losses on Loans		(210,488	)		(259,853	)		49,364
Reserve for Possible Losses on Investments		(332	)		(319	)		(12	)

Total Assets	¥	166,922,554		¥	164,124,289		¥	2,798,264

Liabilities
Deposits	¥	111,549,790		¥	110,415,961		¥	1,133,828
Negotiable Certificates of Deposit		11,424,915			10,652,957			771,957
Call Money		1,615,401			1,165,198			450,203
Payables under Repurchase Agreements		6,915,817			7,200,312			(284,495	)
Guarantee Deposits Received under Securities Lending Transactions		610,197			610,357			(159	)
Commercial Paper		753,308			710,391			42,916
Trading Liabilities		2,687,860			2,797,942			(110,082	)
Borrowed Money		9,250,052			8,958,612			291,439
Foreign Exchange Liabilities		603,471			689,958			(86,487	)
Bonds and Notes		2,352,491			2,421,033			(68,542	)
Derivatives other than for Trading		3,049,837			2,882,287			167,549
Other Liabilities		2,009,375			1,648,314			361,060
Reserve for Bonus Payments		664			22,741			(22,076	)
Reserve for Variable Compensation		1,625			1,293			331
Reserve for Possible Losses on Sales of Loans		2,578			1,075			1,503
Reserve for Contingencies		54			56			(1	)
Reserve for Reimbursement of Deposits		16,234			18,097			(1,863	)
Reserve for Reimbursement of Debentures		29,561			30,760			(1,199	)
Deferred Tax Liabilities		210,091			181,914			28,176
Deferred Tax Liabilities for Revaluation Reserve for Land		65,948			66,186			(237	)
Acceptances and Guarantees		6,394,257			6,186,894			207,362

Total Liabilities		159,543,534			156,662,350			2,881,184

Net Assets
Common Stock and Preferred Stock		1,404,065			1,404,065			—
Capital Surplus		2,286,328			2,286,328			—
Capital Reserve		655,418			655,418			—
Other Capital Surplus		1,630,910			1,630,910			—
Retained Earnings		2,422,886			2,544,238			(121,352	)
Appropriated Reserve		315,177			266,664			48,512
Other Retained Earnings		2,107,708			2,277,574			(169,865	)
Retained Earnings Brought Forward		2,107,708			2,277,574			(169,865	)

Total Shareholders’ Equity		6,113,280			6,234,632			(121,352	)

Net Unrealized Gains (Losses) on Other Securities, net of Taxes		1,218,772			1,159,210			59,562
Net Deferred Hedge Gains (Losses), net of Taxes		(96,772	)		(76,180	)		(20,591	)
Revaluation Reserve for Land, net of Taxes		143,738			144,277			(538	)

Total Valuation and Translation Adjustments		1,265,739			1,227,306			38,432

Total Net Assets		7,379,019			7,461,939			(82,920	)

Total Liabilities and Net Assets	¥	166,922,554		¥	164,124,289		¥	2,798,264

2-10

Mizuho Bank, Ltd.

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO BANK


	*Millions of yen*
	For the three months ended June 30, 2018 (A)		For the three months ended June 30, 2017 (B)			Change (A) - (B)
Ordinary Income	¥	681,816	¥	551,949		¥	129,867
Interest Income		389,191		314,054			75,137
Interest on Loans and Bills Discounted		*257,343*		214,937			42,405
Interest and Dividends on Securities		*69,745*		57,130			12,615
Fee and Commission Income		100,989		92,128			8,861
Trading Income		17,580		7,115			10,464
Other Operating Income		53,691		48,978			4,712
Other Ordinary Income		120,363		89,672			30,691

Ordinary Expenses		519,248		447,166			72,082
Interest Expenses		223,190		151,033			72,157
Interest on Deposits		*93,865*		66,579			27,286
Fee and Commission Expenses		25,608		25,896			(287	)
Other Operating Expenses		9,314		11,104			(1,789	)
General and Administrative Expenses		209,320		223,519			(14,198	)
Other Ordinary Expenses		51,814		35,614			16,200

Ordinary Profits		162,567		104,783			57,784

Extraordinary Gains		7,939		3,462			4,477

Extraordinary Losses		674		1,636			(961	)

Income before Income Taxes		169,833		106,609			63,223
Income Taxes:
Current		40,010		35,287			4,723
Deferred		9,149		(29,166	)		38,316

Net Income	¥	120,672	¥	100,489		¥	20,183

2-11

Mizuho Trust & Banking Co., Ltd.

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO TRUST & BANKING


	*Millions of yen*
	As of June 30, 2018 (A)			As of March 31, 2018 (B)			Change (A) - (B)
Assets
Cash and Due from Banks	¥	1,779,624		¥	1,751,680		¥	27,943
Call Loans		7,182			2,869			4,313
Guarantee Deposits Paid under Securities Borrowing Transactions		330,839			220,934			109,904
Other Debt Purchased		6,769			7,989			(1,219	)
Trading Assets		80,547			79,551			995
Money Held in Trust		3,362			3,199			163
Securities		1,105,200			1,091,950			13,250
Loans and Bills Discounted		3,400,446			3,433,750			(33,304	)
Foreign Exchange Assets		4,259			2,268			1,991
Other Assets		186,108			171,731			14,377
Tangible Fixed Assets		21,378			21,762			(384	)
Intangible Fixed Assets		34,302			35,041			(738	)
Prepaid Pension Cost		51,021			49,592			1,428
Customers’ Liabilities for Acceptances and Guarantees		35,700			20,056			15,643
Reserves for Possible Losses on Loans		(1,814	)		(1,850	)		35

Total Assets	¥	7,044,929		¥	6,890,529		¥	154,399

Liabilities
Deposits	¥	3,536,797		¥	3,406,588		¥	130,208
Negotiable Certificates of Deposit		386,880			472,180			(85,300	)
Call Money		519,651			469,882			49,769
Payables under Repurchase Agreements		22,100			53,135			(31,035	)
Guarantee Deposits Received under Securities Lending Transactions		346,140			180,728			165,411
Trading Liabilities		70,434			69,367			1,067
Borrowed Money		389,915			387,490			2,424
Foreign Exchange Liabilities		5			—			5
Bonds and Notes		10,000			10,000			—
Due to Trust Accounts		1,060,203			1,134,182			(73,979	)
Other Liabilities		68,999			78,418			(9,418	)
Reserve for Bonus Payments		—			2,097			(2,097	)
Reserve for Variable Compensation		651			511			140
Reserve for Reimbursement of Deposits		1,829			1,913			(83	)
Deferred Tax Liabilities		16,587			13,646			2,941
Acceptances and Guarantees		35,700			20,056			15,643

Total Liabilities		6,465,898			6,300,200			165,697

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		212,428			226,570			(14,142	)
Appropriated Reserve		36,719			31,970			4,748
Other Retained Earnings		175,708			194,599			(18,891	)
Retained Earnings Brought Forward		175,708			194,599			(18,891	)

Total Shareholders’ Equity		475,303			489,445			(14,142	)

Net Unrealized Gains (Losses) on Other Securities, net of Taxes		102,163			99,258			2,904
Net Deferred Hedge Gains (Losses), net of Taxes		1,564			1,624			(60	)

Total Valuation and Translation Adjustments		103,727			100,882			2,844

Total Net Assets		579,030			590,328			(11,297	)

Total Liabilities and Net Assets	¥	7,044,929		¥	6,890,529		¥	154,399

2-12

Mizuho Trust & Banking Co., Ltd.

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO TRUST & BANKING


	*Millions of yen*
	For the three months ended June 30, 2018 (A)		For the three months ended June 30, 2017 (B)		Change (A) - (B)
Ordinary Income	¥	46,550	¥	43,159	¥	3,390
Fiduciary Income		11,206		10,740		466
Interest Income		10,169		9,218		951
Interest on Loans and Bills Discounted		*6,633*		6,406		227
Interest and Dividends on Securities		*2,987*		2,349		637
Fee and Commission Income		13,307		10,905		2,401
Trading Income		468		296		171
Other Operating Income		2,078		2,148		(70	)
Other Ordinary Income		9,319		9,849		(529	)

Ordinary Expenses		34,018		34,011		7
Interest Expenses		3,752		3,110		642
Interest on Deposits		*376*		229		147
Fee and Commission Expenses		8,085		8,024		61
Trading Expenses		0		0		(0	)
Other Operating Expenses		363		515		(152	)
General and Administrative Expenses		20,619		21,619		(1,000	)
Other Ordinary Expenses		1,198		741		456

Ordinary Profits		12,531		9,148		3,383

Extraordinary Gains		82		—		82

Extraordinary Losses		95		2		93

Income before Income Taxes		12,517		9,145		3,371
Income Taxes:
Current		727		1,736		(1,009	)
Deferred		2,188		850		1,337

Net Income	¥	9,601	¥	6,558	¥	3,043

2-13

Mizuho Securities Co., Ltd.

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO SECURITIES


	*Millions of yen*
	As of June 30, 2018 (A)			As of March 31, 2018 (B)			Change (A) - (B)
Assets
Current Assets
Cash and Bank Deposits	¥	361,523		¥	294,441		¥	67,081
Cash Segregated as Deposits for Customers and Others		290,769			323,923			(33,153	)
Trading Assets		6,100,313			4,923,373			1,176,940
Operating Investment Securities		25,619			25,362			257
Receivables Related to Margin Transactions		57,737			127,764			(70,026	)
Collateralized Short-Term Financing Agreements-Receivable		3,647,435			4,998,221			(1,350,786	)
Advances Paid		1,383			431			952
Securities: Fail to Deliver		20,610			29,956			(9,346	)
Short-Term Loans Receivable		22,447			55,741			(33,293	)
Other Current Assets		433,101			465,443			(32,342	)
Less: Allowance for Doubtful Accounts		(5	)		(9	)		4
Noncurrent Assets
Property and Equipment		14,154			14,647			(492	)
Intangible Assets		54,486			55,378			(891	)
Investments and Other Assets		321,442			317,378			4,064

Total Assets	¥	11,351,021		¥	11,632,056		¥	(281,034	)

Liabilities
Current Liabilities
Trading Liabilities	¥	3,690,280		¥	4,311,658		¥	(621,378	)
Payables - Unsettled Trades		237,817			62,243			175,574
Payables Related to Margin Transactions		41,696			44,176			(2,480	)
Collateralized Short-Term Financing Agreements-Payable		3,524,692			3,739,715			(215,023	)
Deposits Received		265,619			267,579			(1,960	)
Guarantee Deposits Received		257,829			198,003			59,825
Securities: Fail to Receive		5,431			2,930			2,500
Short-Term Borrowings		1,171,642			833,668			337,974
Commercial Paper		300,800			334,200			(33,400	)
Bonds and Notes Due within One Year		68,080			46,672			21,407
Lease Obligations		365			364			1
Income Taxes Payable		1,060			3,984			(2,923	)
Accrued Employees’ Bonuses		3,365			9,563			(6,198	)
Provision for Variable Compensation		1,193			954			238
Provision for Bonus Point Redemption		725			639			86
Other Current Liabilities		31,536			34,450			(2,913	)
Noncurrent Liabilities
Bonds and Notes		607,877			571,334			36,543
Long-Term Borrowings		247,500			277,000			(29,500	)
Lease Obligations		55			139			(83	)
Provision for Retirement Benefits		19,424			19,744			(320	)
Other Noncurrent Liabilities		1,391			1,540			(148	)
Statutory Reserves
Reserve for Financial Instruments Transaction Liabilities		2,358			2,361			(2	)

Total Liabilities		10,480,745			10,762,925			(282,180	)

Net Assets
Common Stock		125,167			125,167			—
Capital Surplus		381,649			381,649			—
Additional Paid - in Capital		285,831			285,831			—
Other Capital Surplus		95,817			95,817			—
Retained Earnings		348,291			346,786			1,505
Other Retained Earnings		348,291			346,786			1,505
Retained Earnings Brought Forward		348,291			346,786			1,505

Total Shareholders’ Equity		855,108			853,602			1,505

Net Unrealized Gains on (Operating) Investment Securities, net of Tax		27,154			27,497			(342	)
Net Deferred Gains or Losses on Hedges, net of Tax		(11,987	)		(11,969	)		(17	)

Total Valuation and Translation Adjustments		15,167			15,527			(360	)

Total Net Assets		870,276			869,130			1,145

Total Liabilities and Net Assets	¥	11,351,021		¥	11,632,056		¥	(281,034	)

*	Based on the changes in accounting policies, reclassification and adjustment have been made on the above figures as of March 31, 2018 to reflect the relevant changes.

2-14

Mizuho Securities Co., Ltd.

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO SECURITIES


	*Millions of yen*
	For the three months ended June 30, 2018 (A)		For the three months ended June 30, 2017 (B)			Change (A) - (B)
Operating Revenues	¥	82,950	¥	68,413		¥	14,537
Commissions		34,277		31,026			3,251
Net Gain on Trading		25,150		23,904			1,245
Net Gain on Operating Investment Securities		3,642		35			3,607
Interest and Dividend Income		19,879		13,446			6,433

Interest Expenses		15,278		10,237			5,040

Net Operating Revenues		67,672		58,175			9,496

Selling, General and Administrative Expenses		59,572		54,277			5,295
Transaction-Related Expenses		13,705		10,240			3,464
Personnel Expenses		21,684		19,222			2,461
Real Estate Expenses		6,183		6,185			(2	)
Administrative Expenses		11,197		12,096			(898	)
Depreciation and Amortization		4,555		4,265			289
Taxes and Dues		1,360		1,297			63
Provision of Allowance for Doubtful Accounts		15		(4	)		19
Other		871		974			(102	)

Operating Income		8,099		3,898			4,201

Non-Operating Income		6,970		5,527			1,442
Non-Operating Expenses		116		311			(195	)

Ordinary Income		14,953		9,114			5,839

Extraordinary Gain		1,931		1,342			588

Extraordinary Loss		31		44			(13	)

Income before Income Taxes		16,853		10,411			6,442
Income Taxes:
Current		540		40			500
Deferred		2,213		2,511			(298	)

Net Income	¥	14,099	¥	7,859		¥	6,240

2-15