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 November 2009.

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-                .

 

 

 

SIGNATURES

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

 

Date: November 13, 2009
Mizuho Financial Group, Inc.
By:  

/s/ Tetsuji Kosaki

Name:   Tetsuji Kosaki
Title:   Deputy President / CFO

 

For Immediate Release:

 

 

Financial Statements for the Second Quarter of Fiscal 2009

(Six months ended September 30, 2009)

<Under Japanese GAAP>

    LOGO

November 13, 2009

 

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:    Takashi Tsukamoto
   President & CEO
For Inquiry:    Tatsuya Yamada
   General Manager, Accounting
Phone:    +81-3-5224-2030
Filing of Shihanki Hokokusho (scheduled):    November 27, 2009
Trading Accounts:    Established
Commencement of Dividend Payment (scheduled):    —  

Amounts less than one million yen are rounded down.

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2009 (for the six months ended September 30, 2009)

(1) Consolidated Results of Operations

 

     (%: Changes from the previous first half)
     Ordinary Income     Ordinary Profits     Net Income     Net Income
per Share of
Common Stock		    Diluted Net Income
per Share of
Common Stock
     ¥ million    %     ¥ million    %     ¥ million    %     ¥    ¥

1H F2009

    1,485,032    (21.9 )    103,789    82.7      87,806    (7.1 )    6.89    6.17

1H F2008

    1,903,592    (15.6 )    56,788    (85.7 )    94,577    (71.0 )    8,373.41    7,078.95
(2) Consolidated Financial Conditions
     Total Assets     Total Net Assets     Own Capital Ratio     Total Net Assets
per Share of
Common Stock		    Consolidated
Capital Adequacy Ratio
(BIS Standard)
     ¥ million     ¥ million     %     ¥    %

1H F2009

    155,857,870      5,605,965      2.1      175.05    12.92

Fiscal 2008

    152,723,070      4,186,606      1.3      104.38    10.55

 

Reference:       Own Capital:
     

As of September 30, 2009: ¥3,286,963 million; As of March 31, 2009: ¥2,133,751 million

Notes:    1.    Own Capital Ratio was calculated as follows: (Total Net Assets - Stock Acquisition Rights - Minority Interests) / Total Assets ×100
   2.    Consolidated Capital Adequacy Ratio (BIS Standard) is based on the “Standards for Bank Holding Company to Consider the Adequacy of Its Capital Based on Assets and Others Held by It and Its Subsidiaries Pursuant to Article 52-25 of the Banking Law” (Financial Services Agency Ordinance Announcement No. 20, March 27, 2006).
   3.    Consolidated Capital Adequacy Ratio (BIS) as of September 30, 2009 is a preliminary figure.

2. Cash Dividends for Shareholders of Common Stock

 

     Cash Dividends per Share

(Record Date)

    First Quarter-end    Second Quarter-end    Third Quarter-end    Fiscal Year-end    Total
     ¥    ¥    ¥    ¥    ¥

Fiscal 2008

    —      0.00    —      10.00    10.00

Fiscal 2009

    —      0.00         

Fiscal 2009 (estimate)

          —      8.00    8.00

 

Notes:    1.    Revision of estimates for cash dividends for shareholders of common stock during this quarter:    No
   2.    Please refer to page 1-3 for cash dividends for shareholders of classified stock (unlisted), the rights of which are different from those of common stock.

3. Consolidated Earnings Estimates for Fiscal 2009 (for the fiscal year ending March 31, 2010)

 

     (%: Changes from the previous fiscal year)
     Ordinary Income     Ordinary Profits    Net Income    Net Income
per Share of
Common Stock
     ¥ million    %     ¥ million    %    ¥ million    %    ¥

Fiscal 2009

    2,900,000    (17.4 )    300,000    —      200,000    —      13.39

 

Notes:    1.    Revision of the earnings estimates during this quarter:    Yes
   2.    MHFG hereby revises the estimates for Ordinary Income and Ordinary Profits in its consolidated earnings estimates for fiscal 2009, which were announced on May 15, 2009. There is no revision of the estimate for Net Income.
   3.    The average number of shares of outstanding common stock for fiscal 2009 used in calculating the above Net Income per Share of Common Stock is based on the following:
     

•   The average of “the average number of shares during the interim period” and “the number of shares as of September 30, 2009 (which is assumed to be the average number of shares during 3Q and 4Q of fiscal 2009)” is used.

     

•   The increase or decrease during 3Q and 4Q of fiscal 2009, such as an increase in the number of shares of common stock due to the request for acquisition (conversion) of the Eleventh Series Class XI Preferred Stock, is not taken into consideration.

 

1-1

Mizuho Financial Group, Inc.

 

4. Others

 

(1) Changes in Significant Subsidiaries during the Period

 

   (changes in specified subsidiaries accompanying changes in the scope of consolidation): Yes

[Newly consolidated: — (Company name: —); Excluded: 1 (Company name: Mizuho Securities Co., Ltd.)]

Please refer to “Qualitative Information and Financial Statements” 4. Others on page 1-6 for details.

 

(2) Changes of Accounting Methods and Presentation of Consolidated Financial Statements

 

   (To be described in changes of fundamental and important matters for the preparation of Interim Consolidated Financial Statements)

 

  (1) Changes due to revisions of accounting standards, etc.: No

 

  (2) Changes other than (1) above: Yes

Please refer to “Qualitative Information and Financial Statements” 4. Others on page 1-6 for details.

 

(3) Issued Shares of Common Stock

 

(1)    Period-end issued shares (including treasury stock):

   

As of September 30, 2009: 15,181,366,260 shares;

As of March 31, 2009: 11,178,940,660 shares

(2)    Period-end treasury stock:

   

As of September 30, 2009: 9,390,272 shares;

As of March 31, 2009: 11,335,903 shares

(3)    Average number of outstanding shares:

   

1st Half of Fiscal 2009: 12,743,594,595 shares;

1st Half of Fiscal 2008: 11,294,954 shares

Non-consolidated Financial Statements

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2009 (for the six months ended September 30, 2009)

 

(1) Non-Consolidated Results of Operations

 

     (%: Changes from the previous first half)
     Operating Income     Operating Profits     Ordinary Profits     Net Income     Net Income
per Share of
Common Stock
     ¥ million    %     ¥ million    %     ¥ million    %     ¥ million    %     ¥

1H F2009

    19,607    (95.4 )    9,968    (97.6 )    3,048    (99.2 )    3,093    (99.3 )    0.24

1H F2008

    426,950    (29.4 )    417,265    (29.9 )    411,268    (30.0 )    454,600    (27.4 )    40,246.61

 

(2) Non-Consolidated Financial Conditions

 

     Total Assets    Total Net Assets    Own Capital Ratio    Total Net Assets
per Share of
Common Stock
     ¥ million    ¥ million    %    ¥

1H F2009

    5,230,489    4,010,853    76.6    222.66

Fiscal 2008

    4,552,741    3,608,611    79.2    236.36

 

Reference:

   

1.      Own Capital:

  

         As of September 30, 2009: ¥4,009,210 million; As of March 31, 2009: ¥3,607,578 million

  

2.      Maximum amount available for dividends as of September 30, 2009: ¥1,546,003 million; As of March 31, 2009: ¥1,677,022 million

  

         (Note)   “Maximum amount available for dividends” is calculated pursuant to Article 461, Paragraph 2 of the Company Law.

 

2. Earnings Estimates for Fiscal 2009 (for the fiscal year ending March 31, 2010)

 

     (%: Changes from the previous fiscal year)
     Operating Income   Operating Profits   Ordinary Profits   Net Income   Net Income
per Share of
Common Stock
     ¥ million    %   ¥ million    %   ¥ million    %   ¥ million    %   ¥

Fiscal 2009

   33,000    (92.5)   13,000    (96.9)   4,000    (99.0)   4,000    (98.9)   0.64

 

Notes:

   

1. Revision of the earnings estimates during this quarter: No

  

2. The average number of shares of outstanding common stock for fiscal 2009 used in calculating the above Net Income per Share of Common Stock is based on the following:

 

•      The average number of “the average number of shares during the interim period” and “the number of shares as of September 30, 2009 (which is assumed to be the average number of shares during the third and the fourth quarter of fiscal 2009)” is used.

 

•      The increase or decrease during 3Q and 4Q of fiscal 2009, such as an increase in the number of shares of common stock due to the request for acquisition (conversion) of the Eleventh Series Class XI Preferred Stock, is not taken into consideration.

 

 

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, including as a result of the impact of the dislocation in the global financial markets; 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; the effect of changes in general economic conditions in Japan and elsewhere; our ability to avoid reputational harm; and the effectiveness of our operational, legal and other risk management policies.

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 annual report on 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.

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

We conducted an allotment of shares or fractions of a share without consideration on January 4, 2009.

 

 

 

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Mizuho Financial Group, Inc.

 

Cash Dividends for Shareholders of Classified Stock

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

 

     Cash Dividends per Share

(Record Date)

    First Quarter-end    Second Quarter-end    Third Quarter-end    Fiscal Year-end          Total  
     ¥    ¥    ¥    ¥         ¥  

Eleventh Series Class XI Preferred Stock

                  

Fiscal 2008

    —      0.00    —      20.00       20.00  

Fiscal 2009

    —      0.00              

Fiscal 2009 (estimate)

          —      20.00       20.00

Thirteenth Series Class XIII Preferred Stock

                  

Fiscal 2008

    —      0.00    —      30.00       30.00  

Fiscal 2009

    —      0.00              

Fiscal 2009 (estimate)

          —      30.00       30.00

Retroactive Adjustments According to the Allotment of Shares or Fractions of a Share without Consideration

We conducted an allotment of shares or fractions of a share without consideration on January 4, 2009.

Per Share Information on the assumption that such allotment had been made at the beginning of the previous period would be as follows:

 

     Net Income
per Share of
Common Stock		    Diluted Net Income
per Share of
Common Stock
     ¥    ¥

(Consolidated)

      

1H F2008

    8.37    7.07

 

     Net Income
per Share of
Common Stock
     ¥

(Non-consolidated)

   

1H F2008

    40.24

 

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Mizuho Financial Group, Inc.

 

Notes 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.

 

Reference:   For example, in the EDINET website, it is stated that “any information in English contained in this XBRL data that may be downloaded from the list is provided for reference purpose only, and the accuracy of the information is not assured.”
  The examples of English account names, which are different in our financial statements and XBRL, include the following:
  Mizuho: Reserves for Possible Losses on Loans    XBRL: Allowance for loan losses
  Mizuho: Common Stock and Preferred Stock    XBRL: Capital Stock
 

Mizuho: Net Unrealized Gains (Losses) on Other Securities,

                        net of Taxes

   

XBRL: Valuation difference on available-for-sale

                        securities

  Mizuho: Other Operating Income (Expenses)    XBRL: Other ordinary income (expenses)
  Mizuho: Other Ordinary Income (Expenses)    XBRL: Other income (expenses)

Please note that the names of the English accounts, including but not limited to, those other than the above examples, may be subject to change in the future.

 

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Mizuho Financial Group, Inc.

 

QUALITATIVE INFORMATION AND FINANCIAL STATEMENTS

(Please refer to “Summary Results for the Second Quarter (First Half) of Fiscal 2009” on page 2-1 for more information.)

1. Qualitative Information related to the Consolidated Results of Operations

Looking back over the economic environment over the past six months ended September 30, 2009, the global economy continued to be in a serious situation. However, after accelerated action to stabilize the financial system and recover the economy with cooperation between the major countries, there are some signs of stabilization with stock prices and the volume of trade transactions bottoming out, among other factors.

The financial environment in the United States and Europe continues to be severe, but against the backdrop of progress in inventory adjustments among others, the economy is approaching a turnaround, and with among others the strengthening of domestic demand in China attributable mainly to the effects of economic stimulus policies, there are indications of a general strengthening in the Asian economies.

As for the Japanese economy, the situation continues to be severe as the worsening in employment continues, with a record high unemployment rate and industrial production at an extremely low level. But the economy is bottoming out, with signs of improvement in exports and increased personal consumption, especially of durable goods, with a return to positive real GDP growth in the April-June quarter for the first time in five consecutive quarters as the foreign economic environment improves and economic stimulus policies take effect.

However, with a consistently high unemployment rate and the prospect of its requiring a long time for private-sector demand to pick up, there is still the risk of falling once again into a vicious cycle of heightened financial uncertainty and a deterioration in the actual economy, and it is uncertain as to whether there will be sustainable recovery in the global economy.

Given the above business environment, it is important for Mizuho Financial Group to strengthen further its profitability by allocating management resources flexibly and by providing best financial services to meet customers’ needs, while maintaining financial soundness and enhancing corporate governance such as risk management.

With the above economic environment, Net Income for the six months ended September 30, 2009 amounted to ¥87.8 billion, decreasing by ¥6.7 billion from the corresponding period of the previous fiscal year.

Taking segment information by type of business for MHFG and its consolidated subsidiaries categorized under banking business (banking and trust banking business), securities business and other, Ordinary Profits before eliminating inter-segment transactions was ¥61.8 billion for banking business, ¥48.0 billion for securities business and ¥(0.2) billion for other. Looking at segment information by geographic area categorized under Japan, the Americas, Europe and Asia/Oceania, Ordinary Profits before eliminating inter-segment transactions was ¥137.2 billion for Japan, ¥37.0 billion for the Americas, ¥(42.7) billion for Europe and ¥18.4 billion for Asia/Oceania.

2. Qualitative Information related to the Consolidated Financial Conditions

Consolidated total assets as of September 30, 2009 amounted to ¥155,857.8 billion, increasing by ¥3,134.7 billion from the end of the previous fiscal year.

Net Assets amounted to ¥5,605.9 billion, increasing by ¥1,419.3 billion from the end of the previous fiscal year. Shareholders’ Equity amounted to ¥3,048.6 billion, Valuation and Translation Adjustments amounted to ¥238.3 billion and Minority Interests amounted to ¥2,316.6 billion.

In Assets, the balance of Loans and Bills Discounted amounted to ¥64,267.2 billion, decreasing by ¥6,252.9 billion from the end of the previous fiscal year while Securities were ¥37,938.4 billion, increasing by ¥7,764.8 billion from the end of the previous fiscal year. In Liabilities, Deposits amounted to ¥74,877.0 billion, decreasing by ¥2,302.5 billion from the end of the previous fiscal year.

The Consolidated Capital Adequacy Ratio (Basel II BIS Standard) was 12.92% (preliminary).

 

     March 31, 2008     March 31, 2009     September 30, 2009  

Basel II

    11.70 %    10.55 %    12.92 % 

 

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Mizuho Financial Group, Inc.

 

3. Qualitative Information related to the Consolidated Earnings Estimates

Based on the financial results for the second quarter of fiscal 2009, MHFG hereby revises its consolidated earnings estimates for fiscal 2009, which were announced on May 15, 2009, and revises its estimates for Ordinary Income to ¥2,900.0 billion (a decrease of ¥300.0 billion from the previous estimate) and Ordinary Profits to ¥300.0 billion (a decrease of ¥30.0 billion from the previous estimate). There is no revision of its estimate for Net Income of ¥200.0 billion for fiscal 2009.

The above estimates constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Please see the “forward-looking statements” legend on page 1-2 for a description of the factors that could affect our ability to meet these estimates.

4. Others

 

(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries accompanying changes in scope of consolidation)

On May 7, 2009, Shinko Securities Co., Ltd. (“Shinko”) (which was an affiliate of MHFG) and Mizuho Securities Co., Ltd. (“MHSC”) (which was a subsidiary of MHFG) consummated a merger, under which Shinko became the surviving entity and MHSC became the absorbed entity. Accordingly, MHSC, which was a specified subsidiary of MHFG before the merger, ceased to be a specified subsidiary. Please refer to “(MATTERS RELATED TO COMBINATION AND OTHERS)” on page 1-30 for more information.

 

(2) Changes of Accounting Methods and Presentation of Consolidated Financial Statements

(Changes of Accounting Method)

Accounting Standard for Business Combinations and others

As “Accounting Standard for Business Combinations” (ASBJ Statement No.21, December 26, 2008), “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22, December 26, 2008), “Partial amendments to Accounting Standard for Research and Development Costs” (ASBJ Statement No.23, December 26, 2008), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No.7 (Revised 2008), December 26, 2008), “Revised Accounting Standard for Equity Method of Accounting for Investments” (ASBJ Statement No.16 (Revised 2008), released on December 26, 2008), and “Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No.10 (Revised 2008), December 26, 2008) can be applied for the first business combination and business divestitures conducted in the fiscal year beginning on or after April 1, 2009, MHFG has applied these accounting standards and others beginning with this interim period.

(Changes in Presentation of Financial Statements)

Consolidated Balance Sheet

During this interim period, the points for the future use of Mizuho Mileage Club were abolished and the unused balance of points was cleared. In consequence, the total amount of the Reserve for Frequent Users Services provided for Mizuho Mileage Club was liquidated. As a result, the amount of the Reserve for Frequent Users Services is now immaterial, and beginning with this interim period, the Reserve for Frequent Users Services is now included in Other Liabilities.

The Reserve for Frequent Users Services included in Other Liabilities as of September 30, 2009 amounted to ¥1,321 million.

Consolidated Statement of Income

As “Cabinet Office Ordinance Partially Revising Regulation on Terminology, Forms and Preparation of Financial Statements” (Cabinet Office Ordinance No.5, March 24, 2009) can be applied from the beginning of the fiscal year which begins on or after April 1, 2009 based on “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22, December 26, 2008), MHFG has presented “Income before Minority Interests” beginning with this interim period.

 

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Mizuho Financial Group, Inc.

 

5. Consolidated Financial Statements

(1) BASIS FOR PRESENTATION AND PRINCIPLES OF CONSOLIDATION

1. Scope of Consolidation

 

a) Number of consolidated subsidiaries: 164

Names of principal companies:

Mizuho Bank, Ltd.

Mizuho Corporate Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

Mizuho Securities Co., Ltd.

On May 7, 2009, Shinko Securities Co., Ltd. (“Shinko”) (which was an affiliate of MHFG) and Mizuho Securities Co., Ltd. (“MHSC”) (which was a subsidiary of MHFG) consummated a merger, under which Shinko became the surviving entity and MHSC became the absorbed entity. The trade name was changed to “Mizuho Securities Co., Ltd.” upon the merger.

During the period, Mizuho Securities Co., Ltd. after the merger and 21 other companies were newly consolidated as a result of the merger between MHSC and Shinko and other factors.

During the period, Mizuho Securities Co., Ltd. before the merger and two other companies were excluded from the scope of consolidation as they ceased to be a subsidiary 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: 23

Name of principal company:

The Chiba Kogyo Bank, Ltd.

During the period, Eiwa Securities Co., Ltd. and one other company were newly included in the scope of the equity method as affiliates as a result of the merger between MHSC and Shinko.

During the period, Shinko Securities Co., Ltd. was excluded from the scope of the equity method as it became a consolidated subsidiary as a result of the merger with Mizuho Securities Co., Ltd.

 

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

Non-consolidated subsidiaries and 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), Net Deferred Hedge Gains (Losses), net of Taxes (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:

 

April 30

      1 company

The day before the last business day of June

      4 companies

June 30

    59 companies

September 30

    74 companies

The day before the last business day of December

    26 companies

 

b) Consolidated subsidiaries with interim balance sheet dates of April 30, the day before the last business day of June and the day before the last business day of December were consolidated based on their tentative financial statements as of and for the period ended June 30. Other consolidated subsidiaries were consolidated based on their financial statements as of and for the interim 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”), Mizuho Corporate Bank, Ltd. (“MHCB”), and Mizuho Trust & Banking Co., Ltd. (“MHTB”), which are consolidated subsidiaries of MHFG, granted loans, credit facilities and liquidity facilities to 25 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 25 special purpose entities at their respective balance sheet dates amounted to ¥2,185,141 million and ¥2,184,308 million, respectively. MHBK, MHCB and MHTB 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 period ended September 30, 2009 are as follows:

 

As of September 30, 2009    Millions of yen

Loans

    ¥ 1,637,535

Credit and Liquidity Facilities

    ¥ 303,025
      
For the Six Months ended September 30, 2009    Millions of yen

Interest Income on Loans

    ¥ 9,006

Fee and Commission Income, etc.

    ¥ 1,469
      

 

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Mizuho Financial Group, Inc.

 

(2) CONSOLIDATED BALANCE SHEETS

 

     Millions of yen  
     As of
September 30, 2008		     As of
September 30, 2009		     As of
March 31, 2009
(Selected Items)		  

Assets

       

Cash and Due from Banks

    ¥ 4,171,640      ¥ 4,921,251      ¥ 5,720,253   

Call Loans and Bills Purchased

      265,068        119,821        141,296   

Receivables under Resale Agreements

      9,348,124        8,726,629        6,270,321   

Guarantee Deposits Paid under Securities Borrowing Transactions

      7,876,720        5,654,671        5,819,418   

Other Debt Purchased

      3,015,030        2,329,381        2,612,368   

Trading Assets

      12,282,278        15,565,593        13,514,509   

Money Held in Trust

      44,322        114,708        40,693   

Securities

      32,537,063        37,938,463        30,173,632   

Loans and Bills Discounted

      67,590,699        64,267,283        70,520,224   

Foreign Exchange Assets

      787,036        539,477        980,003   

Derivatives other than for Trading Assets

        7,329,310        7,872,780   

Other Assets

      9,339,495        3,670,516        4,138,508   

Tangible Fixed Assets

      803,714        914,016        842,809   

Intangible Fixed Assets

      293,992        398,120        303,854   

Deferred Tax Assets

      850,185        625,718        722,160   

Customers’ Liabilities for Acceptances and Guarantees

      4,704,366        3,689,546        3,939,818   

Reserves for Possible Losses on Loans

      (687,701 )      (942,063 )      (889,579 ) 

Reserve for Possible Losses on Investments

      (23 )      (4,576 )      (3 ) 
                        

Total Assets

    ¥ 153,222,014      ¥ 155,857,870      ¥ 152,723,070   
                        

 

1-9

Mizuho Financial Group, Inc.

 

    Millions of yen  
    As of
September 30, 2008		     As of
September 30, 2009		     As of
March 31, 2009
(Selected Items)		  

Liabilities

      

Deposits

   ¥ 75,480,661      ¥ 74,877,022      ¥ 77,179,540   

Negotiable Certificates of Deposit

     10,350,995        9,073,581        9,359,479   

Debentures

     2,719,624        1,917,442        2,300,459   

Call Money and Bills Sold

     7,047,585        6,316,744        6,449,829   

Payables under Repurchase Agreements

     13,348,752        14,007,069        9,173,846   

Guarantee Deposits Received under Securities Lending Transactions

     6,435,649        5,773,990        4,110,941   

Trading Liabilities

     7,427,337        8,845,953        7,995,359   

Borrowed Money

     5,310,414        9,366,974        8,941,972   

Foreign Exchange Liabilities

     264,737        200,046        591,132   

Short-term Bonds

     694,587        494,095        428,785   

Bonds and Notes

     4,385,279        4,721,679        4,597,403   

Due to Trust Accounts

     1,012,753        1,045,344        986,147   

Derivatives other than for Trading Liabilities

       6,475,620        7,578,211   

Other Liabilities

     8,796,570        3,188,466        4,620,459   

Reserve for Bonus Payments

     31,160        39,784        47,942   

Reserve for Employee Retirement Benefits

     36,493        33,333        36,329   

Reserve for Director and Corporate Auditor Retirement Benefits

     1,853        1,841        1,978   

Reserve for Possible Losses on Sales of Loans

     54,231        27,666        28,711   

Reserve for Contingencies

     15,839        15,112        20,555   

Reserve for Frequent Users Services

     9,837          11,389   

Reserve for Reimbursement of Deposits

     9,699        14,371        13,605   

Reserve for Reimbursement of Debentures

     —          9,760        8,973   

Reserves under Special Laws

     1,750        2,187        1,750   

Deferred Tax Liabilities

     9,136        10,585        7,486   

Deferred Tax Liabilities for Revaluation Reserve for Land

     104,549        103,681        104,355   

Acceptances and Guarantees

     4,704,366        3,689,546        3,939,818   
                       

Total Liabilities

     148,253,870        150,251,905        148,536,464   
                       

Net Assets

      

Common Stock and Preferred Stock

     1,540,965        1,805,565        1,540,965   

Capital Surplus

     411,227        552,135        411,318   

Retained Earnings

     1,291,244        696,088        608,053   

Treasury Stock

     (6,270 )      (5,183 )      (6,218 ) 
                       

Total Shareholders’ Equity

     3,237,166        3,048,605        2,554,119   
                       

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

     48,718        116,406        (519,574 ) 

Net Deferred Hedge Gains (Losses), net of Taxes

     (39,498 )      69,733        67,525   

Revaluation Reserve for Land, net of Taxes

     146,715        145,447        146,447   

Foreign Currency Translation Adjustments

     (83,501 )      (93,230 )      (114,765 ) 
                       

Total Valuation and Translation Adjustments

     72,433        238,357        (420,367 ) 
                       

Stock Acquisition Rights

     —          2,307        1,187   

Minority Interests

     1,658,543        2,316,695        2,051,667   
                       

Total Net Assets

     4,968,143        5,605,965        4,186,606   
                       

Total Liabilities and Net Assets

   ¥ 153,222,014      ¥ 155,857,870      ¥ 152,723,070   
                       

 

1-10

Mizuho Financial Group, Inc.

 

(3) CONSOLIDATED STATEMENTS OF INCOME

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009
(Selected Items)		  

Ordinary Income

    ¥ 1,903,592      ¥ 1,485,032      ¥ 3,514,428   

Interest Income

      1,217,613        816,397        2,144,436   

Interest on Loans and Bills Discounted

      723,683        553,527        1,367,354   

Interest and Dividends on Securities

      262,586        171,872        466,785   

Fiduciary Income

      29,749        24,150        55,891   

Fee and Commission Income

      254,606        269,596        514,997   

Trading Income

      114,998        197,911        301,521   

Other Operating Income

      173,392        73,294        259,151   

Other Ordinary Income

      113,231        103,681        238,431   

Ordinary Expenses

      1,846,804        1,381,242        3,909,560   

Interest Expenses

      694,209        235,319        1,075,584   

Interest on Deposits

      236,118        93,535        390,176   

Interest on Debentures

      9,420        6,714        17,594   

Fee and Commission Expenses

      54,473        47,571        98,343   

Trading Expenses

      62,078        —          —     

Other Operating Expenses

      62,276        93,261        295,102   

General and Administrative Expenses

      604,469        657,751        1,192,701   

Other Ordinary Expenses

      369,296        347,338        1,247,828   
                        

Ordinary Profits (Losses)

     56,788        103,789        (395,131 ) 
                        

Extraordinary Gains

      17,008        98,649        22,137   

Extraordinary Losses

      16,468        58,255        32,882   
                        

Income (Loss) before Income Taxes and Minority Interests

     57,328        144,183        (405,877 ) 
                        

Income Taxes:

       

Current

      12,295        15,542        48,247   

Refund of Income Taxes

      —          (3,897 )      —     

Deferred

      (63,141 )      (10,773 )      109,103   

Total Income Taxes

      (50,845 )      871        157,350   

Net Income before Minority Interests

        143,312     

Minority Interests in Net Income

     13,597        55,505        25,586   
                        

Net Income (Loss)

   ¥ 94,577      ¥ 87,806      ¥ (588,814 ) 
                        

 

1-11

Mizuho Financial Group, Inc.

 

(4) CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009		  

Shareholders’ Equity

      

Common Stock and Preferred Stock

       

Balance as of the end of the previous period

    ¥ 1,540,965      ¥ 1,540,965      ¥ 1,540,965   

Changes during the period

       

Issuance of New Shares

      —          264,600        —     
                        

Total Changes during the period

      —          264,600        —     
                        

Balance as of the end of the period

      1,540,965        1,805,565        1,540,965   
                        

Capital Surplus

       

Balance as of the end of the previous period

      411,093        411,318        411,093   

Changes during the period

       

Issuance of New Shares

      —          271,729        —     

Disposition of Treasury Stock

      133        —          225   

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

      —          (130,913 )      —     
                        

Total Changes during the period

      133        140,816        225   
                        

Balance as of the end of the period

      411,227        552,135        411,318   
                        

Retained Earnings

       

Balance as of the end of the previous period

      1,476,129        608,053        1,476,129   

Changes during the period

       

Cash Dividends

      (133,898 )      (131,015 )      (133,898 ) 

Net Income (Loss)

      94,577        87,806        (588,814 ) 

Disposition of Treasury Stock

      (26 )      (661 )      (101 ) 

Cancellation of Treasury Stock

      (146,308 )      —          (146,308 ) 

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

      —          130,913        —     

Transfer from Revaluation Reserve for Land, net of Taxes

      771        992        1,046   
                        

Total Changes during the period

      (184,884 )      88,035        (868,076 ) 
                        

Balance as of the end of the period

      1,291,244        696,088        608,053   
                        

Treasury Stock

       

Balance as of the end of the previous period

      (2,507 )      (6,218 )      (2,507 ) 

Changes during the period

       

Repurchase of Treasury Stock

      (150,272 )      (3 )      (150,359 ) 

Disposition of Treasury Stock

      140        1,037        280   

Cancellation of Treasury Stock

      146,308        —          146,308   

Decrease in Stock issued by MHFG held by Equity-Method Affiliates

      60        —          60   
                        

Total Changes during the period

      (3,762 )      1,034        (3,710 ) 
                        

Balance as of the end of the period

    ¥ (6,270 )    ¥ (5,183 )    ¥ (6,218 ) 
                        

 

1-12

Mizuho Financial Group, Inc.

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009		  

Total Shareholders’ Equity

       

Balance as of the end of the previous period

    ¥ 3,425,680      ¥ 2,554,119      ¥ 3,425,680   

Changes during the period

       

Issuance of New Shares

      —          536,329        —     

Cash Dividends

      (133,898 )      (131,015 )      (133,898 ) 

Net Income (Loss)

      94,577        87,806        (588,814 ) 

Repurchase of Treasury Stock

      (150,272 )      (3 )      (150,359 ) 

Disposition of Treasury Stock

      248        376        404   

Cancellation of Treasury Stock

      —          —          —     

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

      —          —          —     

Transfer from Revaluation Reserve for Land, net of Taxes

      771        992        1,046   

Decrease in Stock issued by MHFG held by Equity-Method Affiliates

      60        —          60   
                        

Total Changes during the period

      (188,513 )      494,486        (871,560 ) 
                        

Balance as of the end of the period

      3,237,166        3,048,605        2,554,119   
                        

Valuation and Translation Adjustments

       

Net Unrealized Gains on Other Securities, net of Taxes

       

Balance as of the end of the previous period

      401,375        (519,574 )      401,375   

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      (352,656 )      635,980        (920,949 ) 
                        

Total Changes during the period

     (352,656 )      635,980        (920,949 ) 
                        

Balance as of the end of the period

     48,718        116,406        (519,574 ) 
                        

Net Deferred Hedge Gains (Losses), net of Taxes

       

Balance as of the end of the previous period

      5,985        67,525        5,985   

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      (45,484 )      2,208        61,539   
                        

Total Changes during the period

      (45,484 )      2,208        61,539   
                        

Balance as of the end of the period

      (39,498 )      69,733        67,525   
                        

Revaluation Reserve for Land, net of Taxes

       

Balance as of the end of the previous period

      147,467        146,447        147,467   

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      (752 )      (999 )      (1,020 ) 
                        

Total Changes during the period

      (752 )      (999 )      (1,020 ) 
                        

Balance as of the end of the period

    ¥ 146,715      ¥ 145,447      ¥ 146,447   
                        

 

1-13

Mizuho Financial Group, Inc.

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009		  

Foreign Currency Translation Adjustments

       

Balance as of the end of the previous period

    ¥ (78,394 )    ¥ (114,765 )    ¥ (78,394 ) 

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      (5,107 )      21,535        (36,371 ) 
                        

Total Changes during the period

      (5,107 )      21,535        (36,371 ) 
                        

Balance as of the end of the period

      (83,501 )      (93,230 )      (114,765 ) 
                        

Total Valuation and Translation Adjustments

       

Balance as of the end of the previous period

      476,434        (420,367 )      476,434   

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      (404,000 )      658,725        (896,802 ) 
                        

Total Changes during the period

      (404,000 )      658,725        (896,802 ) 
                        

Balance as of the end of the period

      72,433        238,357        (420,367 ) 
                        

Stock Acquisition Rights

       

Balance as of the end of the previous period

      —          1,187        —     

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      —          1,119        1,187   
                        

Total Changes during the period

      —          1,119        1,187   
                        

Balance as of the end of the period

      —          2,307        1,187   
                        

Minority Interests

       

Balance as of the end of the previous period

      1,792,045        2,051,667        1,792,045   

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      (133,502 )      265,027        259,621   
                        

Total Changes during the period

      (133,502 )      265,027        259,621   
                        

Balance as of the end of the period

      1,658,543        2,316,695        2,051,667   
                        

Total Net Assets

       

Balance as of the end of the previous period

      5,694,159        4,186,606        5,694,159   

Changes during the period

       

Issuance of New Shares

      —          536,329        —     

Cash Dividends

      (133,898 )      (131,015 )      (133,898 ) 

Net Income (Loss)

      94,577        87,806        (588,814 ) 

Repurchase of Treasury Stock

      (150,272 )      (3 )      (150,359 ) 

Disposition of Treasury Stock

      248        376        404   

Cancellation of Treasury Stock

      —          —          —     

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss of a Subsidiary

      —          —          —     

Transfer from Revaluation Reserve for Land, net of Taxes

      771        992        1,046   

Decrease in Stock issued by MHFG held by Equity-Method Affiliates

      60        —          60   

Net Changes in Items other than Shareholders’ Equity

      (537,502 )      924,872        (635,992 ) 
                        

Total Changes during the period

      (726,016 )      1,419,358        (1,507,553 ) 
                        

Balance as of the end of the period

    ¥ 4,968,143      ¥ 5,605,965      ¥ 4,186,606   
                        

 

1-14

Mizuho Financial Group, Inc.

 

(5) CONSOLIDATED STATEMENTS OF CASH FLOWS

 

    Millions of yen  
    For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009		  

Cash Flow from Operating Activities

      

Income (Loss) before Income Taxes and Minority Interests

   ¥ 57,328      ¥ 144,183      ¥ (405,877 ) 

Depreciation

     70,664        76,330        142,676   

Losses on Impairment of Fixed Assets

     1,015        2,719        10,898   

Amortization of Goodwill

     (1 )      468        66   

Gains on Negative Goodwill Incurred

     —          (67,916 )      —     

Equity in Loss (Income) from Investments in Affiliates

     (2,347 )      (1,446 )      3,584   

Increase (Decrease) in Reserves for Possible Losses on Loans

     3,475        46,697        207,169   

Increase (Decrease) in Reserve for Possible Losses on Investments

     (7 )      4,573        (27 ) 

Increase (Decrease) in Reserve for Possible Losses on Sales of Loans

     3,335        (1,699 )      (22,184 ) 

Increase (Decrease) in Reserve for Contingencies

     1,744        (5,443 )      6,460   

Increase (Decrease) in Reserve for Bonus Payments

     (11,386 )      (10,750 )      9,072   

Increase (Decrease) in Reserve for Employee Retirement Benefits

     478        1,140        472   

Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits

     (5,204 )      (597 )      (5,079 ) 

Increase (Decrease) in Reserve for Frequent Users Services

     1,488        (12,555 )      3,040   

Increase (Decrease) in Reserve for Reimbursement of Deposits

     84        766        3,990   

Increase (Decrease) in Reserve for Reimbursement of Debentures

     —          786        8,973   

Interest Income—accrual basis

     (1,217,613 )      (816,397 )      (2,144,436 ) 

Interest Expenses—accrual basis

     694,209        235,319        1,075,584   

Losses (Gains) on Securities

     56,376        (26,157 )      548,270   

Losses (Gains) on Money Held in Trust

     (61 )      151        (87 ) 

Foreign Exchange Losses (Gains)—net

     23,691        191,015        339,310   

Losses (Gains) on Disposition of Fixed Assets

     2,456        3,157        8,949   

Losses (Gains) on Securities Contribution to Employees’ Retirement Benefits Trust

     —          (6,731 )      —     

Decrease (Increase) in Trading Assets

     1,496,982        (1,094,822 )      (173,012 ) 

Increase (Decrease) in Trading Liabilities

     (825,760 )      221,024        114,658   

Decrease (Increase) in Derivatives other than for Trading Assets

       512,706        (1,855,354 ) 

Increase (Decrease) in Derivatives other than for Trading Liabilities

       (1,068,742 )      2,098,531   

Decrease (Increase) in Loans and Bills Discounted

     (2,222,493 )      6,173,173        (6,593,357 ) 

Increase (Decrease) in Deposits

     (476,076 )      (2,192,857 )      2,521,344   

Increase (Decrease) in Negotiable Certificates of Deposit

     265,361        (249,545 )      (617,405 ) 

Increase (Decrease) in Debentures

     (439,818 )      (383,017 )      (858,983 ) 

Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money)

     512,528        187,903        4,318,212   

Decrease (Increase) in Due from Banks (excluding Due from Central Banks)

     (366,574 )      (49,100 )      663,824   

Decrease (Increase) in Call Loans, etc.

     (1,755,289 )      (2,494,927 )      1,022,085   

Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions

     1,192,417        996,585        3,249,719   

Increase (Decrease) in Call Money, etc.

     2,211,282        4,994,960        (1,355,886 ) 

Increase (Decrease) in Commercial Paper

     (30,000 )      —          (30,000 ) 

Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions

     (492,090 )      917,918        (2,816,799 ) 

Decrease (Increase) in Foreign Exchange Assets

     6,540        441,084        (226,677 ) 

Increase (Decrease) in Foreign Exchange Liabilities

     42,053        (391,297 )      369,818   

Increase (Decrease) in Short-term Bonds (Liabilities)

     (93,196 )      (13,889 )      (358,999 ) 

Increase (Decrease) in Bonds and Notes

     330,643        197,716        520,993   

Increase (Decrease) in Due to Trust Accounts

     (107,193 )      59,196        (133,798 ) 

Interest and Dividend Income—cash basis

     1,236,316        851,151        2,233,069   

Interest Expenses—cash basis

     (729,443 )      (248,340 )      (1,138,316 ) 

Other—net

     464,138        150,388        (206,414 ) 
                       

Subtotal

     (99,943 )      7,274,886        538,081   
                       

Cash Refunded (Paid) in Income Taxes

     59,161        64,718        35,684   
                       

Net Cash Provided by (Used in) Operating Activities

   ¥ (40,782 )    ¥ 7,339,605      ¥ 573,765   
                       

 

1-15

Mizuho Financial Group, Inc.

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009		  

Cash Flow from Investing Activities

       

Payments for Purchase of Securities

    ¥ (39,217,450 )    ¥ (33,778,966 )    ¥ (72,752,600 ) 

Proceeds from Sale of Securities

      30,614,217        19,274,009        57,885,003   

Proceeds from Redemption of Securities

      9,443,083        6,167,677        17,497,697   

Payments for Increase in Money Held in Trust

      (31,700 )      (48,120 )      (49,100 ) 

Proceeds from Decrease in Money Held in Trust

      20,193        14,190        41,193   

Payments for Purchase of Tangible Fixed Assets

      (27,548 )      (69,766 )      (106,101 ) 

Payments for Purchase of Intangible Fixed Assets

      (20,291 )      (35,591 )      (114,952 ) 

Proceeds from Sale of Tangible Fixed Assets

      5,525        173        5,956   

Proceeds from Sale of Intangible Fixed Assets

      643        0        1,112   
                        

Net Cash Provided by (Used in) Investing Activities

      786,674        (8,476,394 )      2,408,207   
                        

Cash Flow from Financing Activities

       

Proceeds from Subordinated Borrowed Money

      230        —          1,388   

Repayments of Subordinated Borrowed Money

      —          (34,044 )      (125,000 ) 

Proceeds from Issuance of Subordinated Bonds

      26,500        267,400        274,000   

Payments for Redemption of Subordinated Bonds

      (12,100 )      (346,342 )      (127,902 ) 

Proceeds from Issuance of Common Stock

      —          536,329        —     

Proceeds from Investments by Minority Shareholders

      306,359        238,050        747,821   

Repayments to Minority Shareholders

      (387,938 )      (177,518 )      (373,976 ) 

Cash Dividends Paid

      (133,203 )      (130,112 )      (133,393 ) 

Cash Dividends Paid to Minority Shareholders

      (53,022 )      (52,243 )      (79,785 ) 

Payments for Repurchase of Treasury Stock

      (150,272 )      (3 )      (150,359 ) 

Proceeds from Sale of Treasury Stock

      114        3        179   
                        

Net Cash Provided by (Used in) Financing Activities

      (403,331 )      301,518        32,972   
                        

Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents

      (423 )      8,123        (22,066 ) 
                        

Net Increase (Decrease) in Cash and Cash Equivalents

     342,135        (827,147 )      2,992,879   
                        

Cash and Cash Equivalents at the beginning of the period

     2,055,793        5,048,671        2,055,793   

Decrease in Cash and Cash Equivalents for Exclusion from Scope of Consolidation

      (0 )      —          (0 ) 

Increase (Decrease) in Cash and Cash Equivalents Due to Merger of Consolidated Subsidiaries

      —          116,777        —     
                        

Cash and Cash Equivalents at the end of the period

   ¥ 2,397,928      ¥ 4,338,302      ¥ 5,048,671   
                        

 

1-16

Mizuho Financial Group, Inc.

 

(6) NOTE FOR THE ASSUMPTION OF GOING CONCERN

There is no applicable information.

(7) NOTES

Amounts less than one million yen are rounded down.

 

I. Standards of Accounting Method

 

1. 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 interim period, 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 interim period, and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the end of the interim period, assuming they were settled at the end of the interim period.

 

2. 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. Other Securities which have readily determinable fair value are stated at fair value. 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 (cost of securities sold is calculated primarily by the moving average method). Other Securities which do not have readily determinable fair value are stated at acquisition cost or amortized cost and determined by the moving average method.

The net unrealized gains on Other Securities are included directly in Net Assets, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method.

(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.

 

3. Derivative Transactions

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

 

4. Depreciation

 

  (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 depreciation cost for the period is recorded by the proportional distribution of the estimated annual depreciation costs by the length of the period. The range of useful lives is as follows:

 

Buildings:

   3 years to 50 years

Others:

   2 years to 20 years

 

  (2) Intangible Fixed Assets (Except for Lease Assets)

Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-used software are capitalized and amortized over their estimated useful lives of mainly five 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.

 

1-17

Mizuho Financial Group, Inc.

 

5. Deferred Assets

 

  (1) Stock issuance costs

Stock issuance costs are expensed as incurred.

 

  (2) Bond issuance costs

Bond issuance costs are expensed as incurred.

 

  (3) Debenture issuance costs

Debenture issuance costs are expensed as incurred.

 

  (4) Bond discounts

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

Bond discounts booked on the consolidated balance sheet 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).

 

6. 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. Reserves for Possible Losses on Loans are provided for on the basis of such verified assessments.

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 ¥577,944 million.

The claims above include corporate bonds which are issued by private placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Law) and others.

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.

 

1-18

Mizuho Financial Group, Inc.

 

7. 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.

Except for securitization products which are included as reference assets of another securitization schemes of the Group’s domestic banking subsidiary, Reserve for Possible Losses on Investments is provided against unrealized losses on securitization products related with the discontinuation of business regarding credit investments primarily in Europe which were made as an alternative to loans by the Group’s domestic banking subsidiary. Since securities are recognized at fair value on the consolidated balance sheet, the balance of Securities is offset against that of Reserve for Possible Losses on Investments by ¥23,103 million.

 

8. 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 interim period, based on the estimated future payments.

 

9. 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 interim period. 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.

 

10. 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 interim period, based on the internally established standards.

 

11. 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.

 

12. 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.

 

1-19

Mizuho Financial Group, Inc.

 

13. 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 to provide for claims by depositors and others.

 

14. 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.

 

15. 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.

 

16. 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.

 

17. 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 Net Deferred Hedge Losses, net of Taxes 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 ¥60,101 million and ¥55,987 million, respectively.

 

1-20

Mizuho Financial Group, Inc.

 

  (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.

 

  (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 Nos. 24 and 25.

 

18. 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.

 

II. 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.

 

III. Changes of Fundamental and Important Matters for the Preparation of Interim Consolidated Financial Statements

(Changes of Accounting Method)

Accounting Standard for Business Combinations and others

As “Accounting Standard for Business Combinations” (ASBJ Statement No.21, December 26, 2008), “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22, December 26, 2008), “Partial amendments to Accounting Standard for Research and Development Costs” (ASBJ Statement No.23, December 26, 2008), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No.7 (Revised 2008), December 26, 2008), “Revised Accounting Standard for Equity Method of Accounting for Investments” (ASBJ Statement No.16 (Revised 2008), released on December 26, 2008), and “Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No.10 (Revised 2008), December 26, 2008) can be applied for the first business combination and business divestitures conducted in the fiscal year beginning on or after April 1, 2009, MHFG has applied these accounting standards and others beginning with this interim period.

 

1-21

Mizuho Financial Group, Inc.

 

(Changes in Presentation of Financial Statements)

Consolidated Balance Sheet

During this interim period, the points for the future use of Mizuho Mileage Club were abolished and the unused balance of points was cleared. In consequence, the total amount of the Reserve for Frequent Users Services provided for Mizuho Mileage Club was liquidated. As a result the amount of the Reserve for Frequent Users Services is now immaterial, and beginning with this interim period, the Reserve for Frequent Users Services is now included in Other Liabilities.

The Reserve for Frequent Users Services included in Other Liabilities as of September 30, 2009 amounted to ¥1,321 million.

Consolidated Statement of Income

As “Cabinet Office Ordinance Partially Revising Regulation on Terminology, Forms and Preparation of Financial Statements” (Cabinet Office Ordinance No.5, March 24, 2009) can be applied from the beginning of the fiscal year which begins on or after April 1, 2009 based on “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22, December 26, 2008), MHFG has presented “Income before Minority Interests” beginning with this interim period.

Additional Information

(Issuance of New Shares by the Spread Method)

The spread method is adopted for the issuance of new shares (2,804,400 thousand shares) with a payment date of July 23, 2009. This is a method where the new shares are underwritten and purchased by the underwriters at the amount to be paid to MHFG (¥176.40 per share), and sold to the investors at an issue price (¥184.00 per share) different from the amount to be paid to MHFG.

Using the spread method, the aggregate amount of the difference between (a) the issue price and (b) the amount to be paid to MHFG is retained by the underwriters, and allocated to each of the underwriters as underwriting fees. Accordingly, Other Ordinary Expenses does not include the amount equivalent to such underwriting fees of ¥21,313 million related to the issuance.

The amount equivalent to such underwriting fees of ¥7,129 million, recognized as profit by consolidated subsidiaries, is eliminated and recorded as an increase in Capital Surplus.

 

1-22

Mizuho Financial Group, Inc.

 

(NOTES TO CONSOLIDATED BALANCE SHEET)

 

1. Securities include shares of ¥53,096 million and investments of ¥421 million in non-consolidated subsidiaries and affiliates.

 

2. Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥4,397 million and are included in trading securities under Trading Assets. 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 ¥9,737,810 million, securities neither repledged nor re-loaned was ¥2,235,181 million, respectively.

 

3. Loans and Bills Discounted include Loans to Bankrupt Obligors of ¥102,033 million and Non-Accrual Delinquent Loans of ¥834,926 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: ¥18,373 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 last due date for such payments, and which are not included in Loans to Bankrupt Obligors, or Non-Accrual Delinquent Loans.

 

5. Balance of Restructured Loans: ¥428,664 million

Restructured Loans represent loans of which 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: ¥1,383,997 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 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 ¥521,712 million.

 

8. The following assets were pledged as collateral:

 

Trading Assets:

    ¥ 7,886,916 million

Securities:

    ¥ 12,493,801 million

Loans and Bills Discounted:

    ¥ 9,233,276 million

Other Assets:

    ¥ 1,124 million

Tangible Fixed Assets:

    ¥ 250 million

The following liabilities were collateralized by the above assets:

   

Deposits:

    ¥ 722,682 million

Call Money and Bills Sold:

    ¥ 2,615,300 million

Payables under Repurchase Agreements:

    ¥ 6,077,936 million

Guarantee Deposits Received under Securities Lending Transactions:

    ¥ 5,448,010 million

Borrowed Money:

    ¥ 7,848,690 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 ¥20,623 million, Trading Assets of ¥391,203 million, Securities of ¥2,543,457 million and Loans and Bills Discounted of ¥18,042 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 ¥117,359 million, collateral pledged for derivatives transactions of ¥1,022,560 million, margins for futures transactions of ¥50,673 million and other guarantee deposits of ¥34,603 million.

Rediscount of bills is conducted as financial transaction based on the JICPA Industry Audit Committee Report No. 24. The face value of banker’s acceptances, commercial bills, documentary bills and foreign exchange bills purchased is ¥57 million.

 

1-23

Mizuho Financial Group, Inc.

 

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 ¥54,405,388 million. Of this amount, ¥47,234,097 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, net of Taxes 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.

 

11. Accumulated Depreciation of Tangible Fixed Assets amounted to ¥777,513 million.

 

12. Borrowed Money includes subordinated borrowed money of ¥665,353 million with a covenant that performance of the obligation is subordinated to that of other obligations.

 

13. Bonds and Notes includes subordinated bonds of ¥2,149,057 million.

 

14. The principal amounts of money trusts and loan trusts with contracts indemnifying the principal amounts, which are entrusted to domestic consolidated trust banking subsidiaries, are ¥921,505 million and ¥37,199 million, respectively.

 

15. 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 ¥1,202,961 million.

 

16. Net Assets per share of common stock: ¥175.05

 

1-24

Mizuho Financial Group, Inc.

 

(NOTES TO CONSOLIDATED STATEMENT OF INCOME)

 

1. Other Ordinary Income includes gains on sales of stocks of ¥72,732 million.

 

2. Other Ordinary Expenses includes provision for reserves for possible losses on loans of ¥114,081 million, expenses of ¥76,833 million related to credit risk mitigation transactions, and losses on write-offs of loans of ¥69,568 million.

 

3. Extraordinary Gains includes negative goodwill incurred profits of ¥67,916 million associated with the merger of the securities subsidiary and gains on recovery of written-off claims of ¥28,997 million.

 

4. Extraordinary Losses includes losses on change in equity position associated with the merger of the securities subsidiary of ¥34,408 million and losses related to step acquisition of ¥13,670 million.

 

5. Net Income per share of common stock for the interim period: ¥6.89

 

6. Diluted Net Income per share of common stock for the interim period: ¥6.17

 

1-25

Mizuho Financial Group, Inc.

 

(NOTES TO CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS)

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

 

     Thousands of Shares
     As of
March 31,
2009		    Increase
during the
interim period		    Decrease
during the
interim period		    As of
September 30,
2009		    Remarks

Issued shares

               

Common stock

    11,178,940    4,002,425    —      15,181,366    *1

Eleventh Series Class XI Preferred Stock

    914,752    —      —      914,752   

Thirteenth Series Class XIII Preferred Stock

    36,690    —      —      36,690   
                      

Total

    12,130,382    4,002,425    —      16,132,808   
                      

Treasury stock

               

Common stock

    11,335    14    1,960    9,390    *2

Eleventh Series Class XI Preferred Stock

    2,801    317,665    —      320,466    *3
                      

Total

    14,136    317,679    1,960    329,856   
                      
*1. Increases are due to request for acquisition (conversion) of preferred stock (1,002,425 thousand shares), capital increase by public offering (2,804,400 thousand shares), and capital increase by way of third-party allotment (195,600 thousand shares).

 

*2. Increases are due to repurchase of shares constituting less than one unit, and decreases are due to exercise of stock acquisition rights (stock option) (1,954 thousand shares) and repurchase of shares constituting less than one unit (6 thousand shares).

 

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

2. Stock acquisition rights and treasury stock acquisition rights are as follows:

 

Category

  

Breakdown of

stock acquisition rights

   Class of
shares to be
issued or
transferred
upon
exercise of
stock
acquisition
rights		   Number of shares to be issued or transferred upon
exercise of stock acquisition rights (Shares)		     Balance as of
September 30,
2009
(Millions of yen)		     Remarks
      As of
March 31,
2009		     Increase
during the
interim
period		     Decrease
during the
interim period		     As of
September
30, 2009		      

MHFG

  

Stock acquisition rights (Treasury stock acquisition rights)

   —     —  

(—  

   

) 

   —  

(—  

   

) 

   —  

(—  

   

) 

   —  

(—  

   

) 

   —  

(—  

   

) 

  
                                     
 

Stock acquisition rights as stock option

       —            1,643     
                       

Consolidated subsidiaries (Treasury stock acquisition rights)

         —            663

(—  

   

) 

  
                       

Total

         —            2,307

(—  

   

) 

  
                       

3. Cash dividends distributed by MHFG are as follows:

Cash dividends paid during the six months ended September 30, 2009

 

        Resolution           

Type

    Cash Dividends
(Millions of yen)		    Cash Dividends
per Share
(Yen)		    Record Date         Effective Date
                     
  June 25, 2009

 

     

Common Stock

 

    111,676

 

    10

 

    March 31, 2009

 

        
    Ordinary
General
Meeting of
Shareholders		        Eleventh Series Class XI Preferred Stock    18,239    20    March 31, 2009       June 25, 2009
       Thirteenth Series Class XIII Preferred Stock    1,100    30    March 31, 2009        
                           
  Total         131,015              
                       

 

1-26

Mizuho Financial Group, Inc.

 

(NOTES TO CONSOLIDATED STATEMENT OF CASH FLOWS)

 

1. Cash and Cash Equivalents at the end of the period 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

    ¥ 4,921,251   

Due from Banks excluding central banks

      (582,948 ) 
        

Cash and Cash Equivalents

    ¥ 4,338,302   

 

2. Significant non-fund transaction:

Amount and breakdown of assets received and liabilities undertaken as a result of the merger between Mizuho Securities Co., Ltd. and Shinko Securities Co., Ltd. are as follows:

 

     Millions of yen

Total assets:

    ¥ 2,321,155

Trading assets included in the above:

      1,008,003

Total liabilities:

      2,020,673

Trading liabilities included in the above:

    ¥ 671,840

 

1-27

Mizuho Financial Group, Inc.

 

(NOTES TO SECURITIES)

In addition to “Securities” on the consolidated balance sheet, Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included.

 

1. Bonds Held to Maturity which have readily determinable fair value:

 

      Millions of yen
As of September 30, 2009    Amount on
Consolidated
BS		    Fair Value    Unrealized
Gains/Losses
(Net)

Japanese Government Bonds

    ¥ 350,401    ¥ 353,250    ¥ 2,848

Japanese Corporate Bonds

      6,642      6,655      13

Other

      54,127      54,193      66
                    

Total

    ¥ 411,171    ¥ 414,099    ¥ 2,928
                    
* Fair value is primarily based on the market price at the consolidated balance sheet date.

 

2. Other Securities which have readily determinable fair value:

 

      Millions of yen  
As of September 30, 2009    Acquisition
Cost		    Amount on
Consolidated
BS		    Unrealized
Gains/Losses
(Net) 		 

Japanese Stocks

    ¥ 2,659,340    ¥ 2,981,748    ¥ 322,408   

Japanese Bonds

      25,616,104      25,700,539      84,434   

Japanese Government Bonds

      24,351,857      24,437,217      85,360   

Japanese Local Government Bonds

      111,584      113,348      1,763   

Japanese Corporate Bonds

      1,152,662      1,149,973      (2,689 ) 

Other

      8,087,124      7,886,838      (200,285 ) 

Foreign Bonds

      5,352,306      5,318,266      (34,040 ) 

Other Debt Purchased

      1,691,735      1,672,124      (19,611 ) 

Other

      1,043,082      896,447      (146,634 ) 
                      

Total

    ¥ 36,362,570    ¥ 36,569,127    ¥ 206,556   
                      
*1. Net Unrealized Gains include ¥46,346 million, which was recognized in the consolidated statement of income by applying the fair-value hedge method and others.
*2. 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.
*3. Certain Other Securities which have readily determinable 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 interim period (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 interim period was ¥10,899 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.

(Additional Information)

1. Floating-rate Japanese Government Bonds

For Floating-rate Japanese Government Bonds within Securities, based on our determination that current market prices may not reflect fair value due to the extremely limited volume of actual transactions, domestic consolidated banking subsidiaries and some of trust banking subsidiaries have applied reasonably calculated prices as book value for the interim period.

As a result, compared to applying market price as book value, Securities increased by ¥91,888 million, Deferred Tax Assets decreased by ¥16,549 million, Net Unrealized Gains on Other Securities, net of Taxes increased by ¥71,964 million and Minority Interests increased by ¥3,374 million.

In deriving the reasonably calculated price, we used the Discounted Cash Flow Method as well as other methods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese Government Bonds as underlying assets.

 

1-28

Mizuho Financial Group, Inc.

 

2. Securitization Products

With respect to the credit investments in securitization products made as an alternative to loans by the European, North American, and other offices of domestic consolidated banking subsidiaries, given the current situation in which the volume of actual transactions is extremely limited and there exists a considerable gap between the offers and bids of sellers and buyers, we determined that valuations obtained from brokers and information vendors cannot be deemed to be the fair value, and we applied reasonably calculated prices based on the reasonable estimates of our management as fair value.

As a result, compared to applying valuations obtained from brokers and information vendors as fair value, Securities increased by ¥132,779 million, Deferred Tax Assets decreased by ¥422 million, Net Unrealized Gains (Losses) on Other Securities, net of Taxes increased by ¥7,821 million and Ordinary Profits increased by ¥15,107 million.

The book value that was reasonably calculated based on the reasonable estimates of our management mentioned above is ¥521,056 million. In deriving reasonably calculated prices based on the reasonable estimates of our management mentioned above, we used the Discounted Cash Flow Method. The price decision variables include default rates, recovery rates, pre-payment rates and discount rates, and the subject Securities included Residential Mortgage-Backed Securities, Collateralized Loan Obligations, Commercial Mortgage-Backed Securities and other Asset Backed Securities.

 

3. Major components of securities not stated at fair value and their amount on the consolidated balance sheet:

 

      Millions of yen
As of September 30, 2009    Amount

Other Securities:

   

Non-publicly Offered Bonds

    ¥ 1,831,279

Unlisted Stocks

      424,867

Unlisted Foreign Securities

      332,079

Other

    ¥ 196,501

(NOTES TO MONEY HELD IN TRUST)

 

1. Money Held in Trust Held to Maturity (As of September 30, 2009):

There was no Money Held in Trust held to maturity.

 

2. Other in Money Held in Trust (other than for investment purposes and held to maturity purposes)

 

      Millions of yen  
As of September 30, 2009    Acquisition
Cost		    Amount on
Consolidated
BS		    Unrealized
Gains/Losses
(Net) 		 

Other in Money Held in Trust

    ¥ 1,135    ¥ 1,111    ¥ (23 ) 

 

Note:

   Fair value of Other in Money Held in Trust is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.

 

1-29

Mizuho Financial Group, Inc.

 

(MATTERS RELATED TO COMBINATION AND OTHERS)

Mizuho Securities Co., Ltd. (“former MHSC”), MHFG’s consolidated subsidiary, and Shinko Securities Co., Ltd. (“Shinko”), an affiliate under the equity method, signed the merger agreement following the resolutions of respective board meetings on March 4, 2009. Upon the approval of the merger agreement at the respective general shareholders meetings held on April 3, 2009, the merger (“Merger”) took effect on May 7, 2009.

 

 Name of the acquired company, business type, major reasons for the combination, date of the combination, legal form of the combination, name of the company after the combination, voting rights ratio, and grounds for determination of the acquiring company

 

a.      Name of the acquired company

    Shinko Securities Co., Ltd.

b.      Business type

    Financial Instruments Business

c.      Major reasons for the combination

    It was determined that it is necessary, as a member of the Mizuho Financial Group, to leverage Shinko’s strength as a securities arm of a banking institution, to become more competitive in a market where there is now greater uncertainty, to improve our service providing-capabilities to our clients and furthermore to reestablish our business to enable us to offer competitive cutting-edge financial services on a global basis.

d.      Date of the combination

    May 7, 2009

e.      Legal form of the combination

    Shinko is the surviving entity, and the former MHSC is the absorbed entity.

f.       Name of the company after the combination

    Mizuho Securities, Co., Ltd.

g.      Voting rights ratio

   

Voting rights ratio held before the combination: 27.32%

Voting rights ratio additionally obtained on the combination date: 32.19%

Voting rights ratio after acquisition: 59.51%

h.      Grounds for determination of the acquiring company

    As Mizuho Corporate Bank, Ltd., a shareholder of the former MHSC which is the legal absorbed entity, holds over half of the new company’s voting rights as a result of the Merger, the former MHSC is the acquiring company and Shinko is the acquired company under Accounting Standard for Business Combinations.

 

‚ Period of the acquired company’s results included in the interim consolidated financial statements

From May 7, 2009 to September 30, 2009

 

ƒ Acquisition cost and its breakdown of the acquired company

 

Consideration for acquisition: Common stock of the former MHSC

    ¥ 107,864 million

Expenses directly necessary for the combination: Advisory fees and others

    ¥ 118 million

Acquisition cost:

    ¥ 107,983 million

 

„ Merger ratio, calculation method, number of new shares to be issued, and gains and losses on step acquisition

 

  a. Merger ratio:

 

Company Name

    Shinko (surviving entity)    Former MHSC (absorbed entity)

Merger Ratio

    1    122

 

  b. Calculation method of merger ratio:

For the sake of fairness in calculating the merger ratio, Shinko and the former MHSC appointed a third-party for valuations respectively. Both companies made the final determination of the validity of the merger ratio based on the careful exchange of views between the two companies, taking into account the financial and asset situation of the two companies and other factors in a comprehensive manner.

 

  c. Number of new shares to be issued:

 

Shares of common stock:

    815,570,000 shares

 

  d. Gains and losses on step acquisition: ¥(13,670) million (included in Extraordinary Losses)

 

1-30

Mizuho Financial Group, Inc.

 

… Amount, cause, and accounting method of negative goodwill incurred

 

  a. Amount of negative goodwill incurred: ¥67,916 million (included in Extraordinary Gains)

 

  b. Cause:

Difference between the amount corresponding to MHFG’s equity position in the acquired company and the acquisition cost

 

  c. Accounting method:

Recorded as profits for the fiscal year in which the negative goodwill incurred due to early adoption of “Accounting Standard for Business Combinations” (ASBJ Statement No.21, December 26, 2008).

 

† Amount and breakdown of assets received and liabilities undertaken on the combination date

 

a. Assets:

   

Total assets:

    ¥ 2,321,155 million

Trading assets included in the above:

    ¥ 1,008,003 million

 

b. Liabilities:

   

Total liabilities:

    ¥ 2,020,673 million

Trading liabilities included in the above:

    ¥ 671,840 million

 

‡ Amount allocated to Intangible Fixed Assets other than goodwill, breakdown by major type, and weighted-average amortization period in total and by major type

 

a. Amount allocated to Intangible Fixed Assets:

    ¥ 73,949 million

b. Breakdown by major type:

   

Customer-Related Assets:

    ¥ 73,949 million

c. Weighted-average amortization period in total and by major type:

   

Customer-Related Assets:

      16 years

 

ˆ Gains and losses on the change in equity position due to the merger of the acquiring company:

¥(34,408) million (included in Extraordinary Losses)

 

1-31

Mizuho Financial Group, Inc.

 

(8) SEGMENT INFORMATION

Segment Information by Type of Business

 

     Millions of yen
For the six months ended September 30, 2008    Banking
Business		    Securities
Business		     Other    Total    Elimination    Consolidated
Results

Ordinary Income

                 

(1) Ordinary Income from outside customers

    1,572,028    267,870      63,694    1,903,592    —      1,903,592

(2) Inter-segment Ordinary Income

    22,433    37,492      65,484    125,410    125,410    —  
                              

Total

    1,594,461    305,362      129,178    2,029,003    125,410    1,903,592
                              

Ordinary Expenses

    1,530,251    316,893      120,893    1,968,038    121,234    1,846,804
                              

Ordinary Profits (Losses)

    64,210    (11,530 )    8,284    60,964    4,175    56,788
                              

 

Notes:  

1.      Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies.

 

2.      Major components of type of business are as follows:

 

(1)    Banking Business: banking and trust banking business

 

(2)    Securities Business: securities business

 

(3)    Other: investment advisory business and others

 

     Millions of yen
For the six months ended September 30, 2009    Banking
Business		    Securities
Business		    Other     Total    Elimination    Consolidated
Results

Ordinary Income

                 

(1) Ordinary Income from outside customers

    1,236,998    198,415    49,619      1,485,032    —      1,485,032

(2) Inter-segment Ordinary Income

    12,925    9,434    61,550      83,911    83,911    —  
                              

Total

    1,249,924    207,849    111,170      1,568,943    83,911    1,485,032
                              

Ordinary Expenses

    1,188,116    159,826    111,399      1,459,343    78,100    1,381,242
                              

Ordinary Profits (Losses)

    61,807    48,022    (229 )    109,600    5,810    103,789
                              

 

Notes:  

1.      Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies.

 

2.      Major components of type of business are as follows:

 

(1)    Banking Business: banking and trust banking business

 

(2)    Securities Business: securities business

 

(3)    Other: investment advisory business and others

 

     Millions of yen  
For the fiscal year ended March 31, 2009    Banking
Business		     Securities
Business		     Other    Total     Elimination    Consolidated
Results		  

Ordinary Income

               

(1) Ordinary Income from outside customers

    3,065,295      318,234      130,899    3,514,428      —      3,514,428   

(2) Inter-segment Ordinary Income

    36,760      56,924      151,470    245,155      245,155    —     
                                  

Total

    3,102,055      375,158      282,370    3,759,584      245,155    3,514,428   
                                  

Ordinary Expenses

    3,488,527      396,578      263,456    4,148,562      239,001    3,909,560   
                                  

Ordinary Profits (Losses)

    (386,471 )    (21,420 )    18,913    (388,978 )    6,153    (395,131 ) 
                                  

 

Notes:  

1.      Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies.

 

2.      Major components of type of business are as follows:

 

(1)    Banking Business: banking and trust banking business

 

(2)    Securities Business: securities business

 

(3)    Other: investment advisory business and others

 

1-32

Mizuho Financial Group, Inc.

 

Segment Information by Geographic Area

 

    Millions of yen
For the six months ended September 30, 2008   Japan   Americas   Europe     Asia/Oceania
excluding Japan		   Total   Elimination   Consolidated
Results

Ordinary Income

              

(1) Ordinary Income from outside customers

   1,253,414   226,278   316,381      107,517   1,903,592   —     1,903,592

(2) Inter-segment Ordinary Income

   36,587   61,812   22,469      889   121,758   121,758   —  
                             

Total

   1,290,002   288,091   338,850      108,406   2,025,351   121,758   1,903,592
                             

Ordinary Expenses

   1,231,166   240,799   402,067      88,780   1,962,814   116,010   1,846,804
                             

Ordinary Profits (Losses)

   58,835   47,292   (63,217 )    19,625   62,536   5,747   56,788
                             

 

Notes:

   

1.      Geographic analyses are presented based on geographic contiguity, similarities in economic activities and correlation between business operations. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies.

  

2.      Americas includes the United States of America, Canada, etc., Europe includes the United Kingdom, etc. and Asia/Oceania includes Hong Kong, the Republic of Singapore, etc.

 

    Millions of yen
For the six months ended September 30, 2009   Japan   Americas   Europe     Asia/Oceania
excluding Japan		   Total   Elimination   Consolidated
Results

Ordinary Income

              

(1) Ordinary Income from outside customers

   1,227,395   86,286   117,496      53,853   1,485,032   —     1,485,032

(2) Inter-segment Ordinary Income

   65,641   64,723   4,459      1,306   136,129   136,129   —  
                             

Total

   1,293,036   151,009   121,956      55,159   1,621,162   136,129   1,485,032
                             

Ordinary Expenses

   1,155,834   113,943   164,748      36,741   1,471,269   90,026   1,381,242
                             

Ordinary Profits (Losses)

   137,201   37,065   (42,792 )    18,418   149,893   46,103   103,789
                             

 

Notes:

   

1.      Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and correlation between business operations. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies.

  

2.      Americas includes the United States of America, Canada, etc., Europe includes the United Kingdom, etc. and Asia/Oceania includes Hong Kong, the Republic of Singapore, etc.

  

3.      With respect to the credit investments in securitization products made as an alternative to loans by the European and North American offices of our domestic consolidated banking subsidiaries, given the current situation in which the volume of actual transactions is extremely limited and there exists a considerable gap between the offers and bids of sellers and buyers, we determined that valuations obtained from brokers and information vendors cannot be deemed to be the fair value, and we applied reasonably calculated prices based on the reasonable estimates of our management as fair value.

 

         As a result, compared to applying valuations obtained from brokers and information vendors as fair value, Ordinary Profits in Europe increased by ¥15,107 million in this interim period.

 

     Millions of yen  
For the fiscal year ended March 31, 2009    Japan     Americas    Europe     Asia/Oceania
excluding Japan		    Total     Elimination    Consolidated
Results		  

Ordinary Income

                  

(1) Ordinary Income from outside customers

    2,606,492      378,876    344,862      184,196    3,514,428      —      3,514,428   

(2) Inter-segment Ordinary Income

    100,740      117,395    30,157      1,303    249,596      249,596    —     
                                       

Total

    2,707,233      496,271    375,019      185,500    3,764,025      249,596    3,514,428   
                                       

Ordinary Expenses

    3,113,927      398,604    479,813      154,037    4,146,383      236,822    3,909,560   
                                       

Ordinary Profits (Losses)

    (406,693 )    97,667    (104,794 )    31,462    (382,358 )    12,773    (395,131 ) 
                                       

 

Notes:

   

1.      Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and correlation between business operations. Ordinary Income and Ordinary Profits are presented in lieu of Sales and Operating Profits as utilized by non-financial companies.

  

2.      Americas includes the United States of America, Canada, etc., Europe includes the United Kingdom, etc. and Asia/Oceania includes Hong Kong, the Republic of Singapore, etc.

  

3.      With respect to the credit investments in securitization products made as an alternative to loans by the European and North American offices of our domestic consolidated banking subsidiaries, we had previously applied as fair value the valuations obtained from brokers and information vendors based on our determination that such valuations constitute reasonably calculated prices that can be used as a proxy for market prices. Given the current situation in which the volume of actual transactions is extremely limited and there exists a considerable gap between the offers and bids of sellers and buyers, we determined that valuations obtained from brokers and information vendors cannot be deemed to be the fair value, and we applied reasonably calculated prices based on the reasonable estimates of our management as fair value.

 

         As a result, Ordinary Income increased in Europe by ¥416 million, and Ordinary Expenses decreased in Japan, Americas, and Europe by ¥6,814 million, ¥589 million, and ¥99,558 million, respectively. Ordinary Profits increased in Americas by ¥589 million, and Ordinary Losses decreased in Japan and Europe by ¥6,814 million and ¥99,975 million, respectively.

 

1-33

Mizuho Financial Group, Inc.

 

Ordinary Income from Overseas Entities

For the six months ended September 30, 2008

 

        Millions of yen
Ordinary Income from Overseas Entities     650,177
Total Ordinary Income     1,903,592
Ordinary Income of Overseas Entities’ Ratio (%)     34.1

 

Notes:  

1.      Ordinary Income from Overseas Entities is presented in lieu of Sales as utilized by non-financial companies.

 

2.      Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of domestic subsidiaries and overseas subsidiaries excluding inter-segment Ordinary Income. Geographical analyses of Ordinary Income from Overseas Entities are not presented as no such information is available.

For the six months ended September 30, 2009

 

        Millions of yen
Ordinary Income from Overseas Entities     257,637
Total Ordinary Income     1,485,032
Ordinary Income of Overseas Entities’ Ratio (%)     17.3

 

Notes:  

1.      Ordinary Income from Overseas Entities is presented in lieu of Sales as utilized by non-financial companies.

 

2.      Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of domestic subsidiaries and overseas subsidiaries excluding inter-segment Ordinary Income. Geographical analyses of Ordinary Income from Overseas Entities are not presented as no such information is available.

For the fiscal year ended March 31, 2009

 

        Millions of yen
Ordinary Income from Overseas Entities     907,935
Total Ordinary Income     3,514,428
Ordinary Income of Overseas Entities’ Ratio (%)     25.8

 

Notes:  

1.      Ordinary Income from Overseas Entities is presented in lieu of Sales as utilized by non-financial companies.

 

2.      Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of domestic subsidiaries and overseas subsidiaries excluding inter-segment Ordinary Income. Geographical analyses of Ordinary Income from Overseas Entities are not presented as no such information is available.

 

1-34

Mizuho Financial Group, Inc.

 

6. NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) NON-CONSOLIDATED BALANCE SHEETS

 

     Millions of yen  
     As of
September 30,
2008		     As of
September 30,
2009		     As of
March 31,
2009
(Selected Items)		  

Assets

       

Current Assets

       

Cash and Due from Banks

    ¥ 8,683      ¥ 12,322      ¥ 16,056   

Accounts Receivable

      89,928        808        90,120   

Other Current Assets

      3,446        3,397        1,887   

Total Current Assets

      102,058        16,528        108,064   

Fixed Assets

       

Tangible Fixed Assets

      1,540        1,276        1,327   

Intangible Fixed Assets

      4,424        3,708        4,123   

Investments

      4,442,796        5,208,975        4,439,225   

Investments in Subsidiaries and Affiliates

      4,436,376        5,233,951        4,431,880   

Other Investments

      6,420        7,880        7,345   

Reserve for Possible Losses on Investments

      —          (32,856 )      —     

Total Fixed Assets

      4,448,761        5,213,961        4,444,677   
                        

Total Assets

    ¥ 4,550,820      ¥ 5,230,489      ¥ 4,552,741   
                        

Liabilities

       

Current Liabilities

       

Short-term Borrowings

    ¥ 720,000      ¥ 700,000      ¥ 700,000   

Short-term Bonds

      140,000        270,000        160,000   

Lease Liabilities

      4        —          —     

Accrued Corporate Taxes

      70        65        —     

Reserve for Bonus Payments

      260        260        272   

Reserve for Contingencies

      —          —          77,620   

Other Current Liabilities

      3,107        5,197        2,085   

Total Current Liabilities

      863,442        975,523        939,978   

Non-Current Liabilities

       

Bonds and Notes

      —          240,000        —     

Reserve for Employee Retirement Benefits

      1,108        1,360        1,231   

Other Non-Current Liabilities

      2,870        2,751        2,919   

Total Non-Current Liabilities

      3,978        244,111        4,151   
                        

Total Liabilities

      867,421        1,219,635        944,130   
                        

Net Assets

       

Shareholders’ Equity

       

Common Stock and Preferred Stock

      1,540,965        1,805,565        1,540,965   

Capital Surplus

       

Capital Reserve

      385,241        649,841        385,241   

Total Capital Surplus

      385,241        649,841        385,241   

Retained Earnings

       

Appropriated Reserve

      4,350        4,350        4,350   

Other Retained Earnings

      1,759,131        1,554,688        1,683,272   

Retained Earnings Brought Forward

      1,759,131        1,554,688        1,683,272   

Total Retained Earnings

      1,763,481        1,559,038        1,687,622   

Treasury Stock

      (6,270 )      (5,183 )      (6,218 ) 
                        

Total Shareholders’ Equity

      3,683,417        4,009,261        3,607,610   
                        

Valuation and Translation Adjustments

       

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

      (19 )      (51 )      (32 ) 
                        

Total Valuation and Translation Adjustments

      (19 )      (51 )      (32 ) 
                        

Stock Acquisition Rights

      —          1,643        1,032   
                        

Total Net Assets

      3,683,398        4,010,853        3,608,611   
                        

Total Liabilities and Net Assets

    ¥ 4,550,820      ¥ 5,230,489      ¥ 4,552,741   
                        

 

1-35

Mizuho Financial Group, Inc.

 

(2) NON-CONSOLIDATED STATEMENTS OF INCOME

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009
(Selected Items)		  

Operating Income

    ¥ 426,950      ¥ 19,607      ¥ 442,701   

Operating Expenses

       

General and Administrative Expenses

      9,685        9,638        19,968   

Total Operating Expenses

      9,685        9,638        19,968   
                        

Operating Profits

      417,265        9,968        422,733   
                        

Non-Operating Income

      189        2,700        246   

Non-Operating Expenses

      6,186        9,620        11,017   
                        

Ordinary Profits

      411,268        3,048        411,961   
                        

Extraordinary Gains

      44,675        —          46,069   

Extraordinary Losses

      1,426        3        79,335   
                        

Income before Income Taxes

      454,517        3,044        378,695   
                        

Income Taxes:

       

Current

      2        2        6   

Deferred

      (85 )      (50 )      (126 ) 
                        

Total Income Taxes

      (82 )      (48 )      (120 ) 
                        

Net Income

    ¥ 454,600      ¥ 3,093      ¥ 378,815   
                        

 

1-36

Mizuho Financial Group, Inc.

 

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

 

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009		  

Shareholders’ Equity

       

Common Stock and Preferred Stock

       

Balance as of the end of the previous period

    ¥ 1,540,965      ¥ 1,540,965      ¥ 1,540,965   

Changes during the period

       

Issuance of New Shares

      —          264,600        —     
                        

Total Changes during the period

      —          264,600        —     
                        

Balance as of the end of the period

      1,540,965        1,805,565        1,540,965   
                        

Capital Surplus

       

Capital Reserve

       

Balance as of the end of the previous period

      385,241        385,241        385,241   

Changes during the period

       

Issuance of New Shares

      —          264,600        —     
                        

Total Changes during the period

      —          264,600        —     
                        

Balance as of the end of the period

      385,241        649,841        385,241   
                        

Total Capital Surplus

       

Balance as of the end of the previous period

      385,241        385,241        385,241   

Changes during the period

       

Issuance of New Shares

      —          264,600        —     
                        

Total Changes during the period

      —          264,600        —     
                        

Balance as of the end of the period

      385,241        649,841        385,241   
                        

Retained Earnings

       

Appropriated Reserve

       

Balance as of the end of the previous period

      4,350        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        4,350   
                        

Other Retained Earnings

       

Retained Earnings Brought Forward

       

Balance as of the end of the previous period

      1,584,764        1,683,272        1,584,764   

Changes during the period

       

Cash Dividends

      (133,898 )      (131,015 )      (133,898 ) 

Net Income

      454,600        3,093        378,815   

Disposition of Treasury Stock

      (26 )      (661 )      (101 ) 

Cancellation of Treasury Stock

      (146,308 )      —          (146,308 ) 
                        

Total Changes during the period

      174,367        (128,583 )      98,507   
                        

Balance as of the end of the period

      1,759,131        1,554,688        1,683,272   
                        

Total Retained Earnings

       

Balance as of the end of the previous period

      1,589,114        1,687,622        1,589,114   

Changes during the period

       

Cash Dividends

      (133,898 )      (131,015 )      (133,898 ) 

Net Income

      454,600        3,093        378,815   

Disposition of Treasury Stock

      (26 )      (661 )      (101 ) 

Cancellation of Treasury Stock

      (146,308 )      —          (146,308 ) 
                        

Total Changes during the period

      174,367        (128,583 )      98,507   
                        

Balance as of the end of the period

    ¥ 1,763,481      ¥ 1,559,038      ¥ 1,687,622   
                        

 

1-37

Mizuho Financial Group, Inc.

 

     Millions of yen  
     For the six months
ended
September 30, 2008		     For the six months
ended
September 30, 2009		     For the fiscal year
ended
March 31, 2009		  

Treasury Stock

       

Balance as of the end of the previous period

    ¥ (2,447 )    ¥ (6,218 )    ¥ (2,447 ) 

Changes during the period

       

Repurchase of Treasury Stock

      (150,272 )      (3 )      (150,359 ) 

Disposition of Treasury Stock

      140        1,037        280   

Cancellation of Treasury Stock

      146,308        —          146,308   
                        

Total Changes during the period

      (3,822 )      1,034        (3,770 ) 
                        

Balance as of the end of the period

      (6,270 )      (5,183 )      (6,218 ) 
                        

Total Shareholders’ Equity

       

Balance as of the end of the previous period

      3,512,873        3,607,610        3,512,873   

Changes during the period

       

Issuance of New Shares

      —          529,200        —     

Cash Dividends

      (133,898 )      (131,015 )      (133,898 ) 

Net Income

      454,600        3,093        378,815   

Repurchase of Treasury Stock

      (150,272 )      (3 )      (150,359 ) 

Disposition of Treasury Stock

      114        376        179   
                        

Total Changes during the period

      170,544        401,650        94,737   
                        

Balance as of the end of the period

      3,683,417        4,009,261        3,607,610   
                        

Valuation and Translation Adjustments

       

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

       

Balance as of the end of the previous period

      (27 )      (32 )      (27 ) 

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      8        (19 )      (4 ) 
                        

Total Changes during the period

      8        (19 )      (4 ) 
                        

Balance as of the end of the period

      (19 )      (51 )      (32 ) 
                        

Stock Acquisition Rights

       

Balance as of the end of the previous period

      —          1,032        —     

Changes during the period

       

Net Changes in Items other than Shareholders’ Equity

      —          611        1,032   
                        

Total Changes during the period

      —          611        1,032   
                        

Balance as of the end of the period

      —          1,643        1,032   
                        

Total Net Assets

       

Balance as of the end of the previous period

      3,512,845        3,608,611        3,512,845   

Changes during the period

       

Issuance of New Shares

      —          529,200        —     

Cash Dividends

      (133,898 )      (131,015 )      (133,898 ) 

Net Income

      454,600        3,093        378,815   

Repurchase of Treasury Stock

      (150,272 )      (3 )      (150,359 ) 

Disposition of Treasury Stock

      114        376        179   

Net Changes in Items other than Shareholders’ Equity

      8        591        1,027   
                        

Total Changes during the period

      170,552        402,242        95,765   
                        

Balance as of the end of the period

    ¥ 3,683,398      ¥ 4,010,853      ¥ 3,608,611   
                        

(4) NOTE FOR THE ASSUMPTION OF GOING CONCERN

There is no applicable information.

 

1-38

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARY OF FINANCIAL RESULTS

 

For the Second Quarter (First Half) of Fiscal 2009

(Six months ended September 30, 2009)

 

<under Japanese GAAP>

 

 

LOGO

 

Summary Results for the Second Quarter (First Half) of Fiscal 2009

 

I. Summary of Income Analysis

 

·  

Consolidated Net Business Profits

 

  •  

Consolidated Gross Profits for the first half of fiscal 2009 increased by JPY 87.8 billion on a year-on-year basis to JPY 1,005.1 billion.

 

  •  

Gross Profits of the banking subsidiaries amounted to JPY 790.6 billion, due to an increase in income derived from flexible and timely operations in the Trading segment and other factors partly offset by a decrease in income from Customer Groups mainly due to a decline in deposit income reflecting the drop in market interest rates. G&A expenses decreased by JPY 4.2 billion on a year-on-year basis to JPY 452.3 billion due to our overall cost reduction efforts, despite a year-on-year increase of JPY 18.6 billion in expenses associated with employee retirement benefits.

 

  •  

Aggregated consolidated Gross Profits (Net Operating Revenues) of our two securities subsidiaries (Mizuho Securities* and Mizuho Investors Securities) increased by JPY 103.4 billion on a year-on-year basis to JPY 168.6 billion, mainly due to, in addition to an increase in commission income, the effect of the merger with Shinko Securities.

 

  [* Our financial results for the first half of fiscal 2008 did not include the income of Shinko Securities (Net Operating Revenues of JPY 55.2 billion and Ordinary Profits of JPY 0.2 billion), since Shinko Securities was an affiliate under the equity method of our group at that time.]

 

  •  

As a result, Consolidated Net Business Profits amounted to JPY 359.5 billion, a year-on-year increase of JPY 42.0 billion.

 

·  

Consolidated Net Income

 

  •  

Consolidated Net Income for the first half of fiscal 2009 amounted to JPY 87.8 billion, a year-on-year decrease of JPY 6.7 billion.

 

  •  

Consolidated Credit-related Costs amounted to JPY 161.7 billion, and Credit Cost Ratio of the 3 Banks was 32bps**, an improvement from 69bps for the full fiscal 2008.

 

  ** Credit-related Costs for the first half of fiscal 2009 x 2 / Total claims under the Financial Reconstruction Law as of September 30, 2009 (aggregated amount of banking account and trust account)

 

  •  

The total P&L impact on our group of the global financial market turmoil for the first half of fiscal 2009 was limited to a loss of approximately JPY 3.0 billion.

 

  •  

Net Gains related to Stocks amounted to JPY 20.2 billion as a consequence of recording Gains on Sales in our efforts to reduce our stock portfolio despite recording losses in the amount of JPY 29.0 billion on equity derivatives entered into for hedging purposes at the banking subsidiaries.

 

  •  

As for credit derivatives transactions entered into for credit risk hedging purposes at the banking subsidiaries, we recognized valuation losses of JPY 76.8 billion related to such hedging transactions due to the improvement in the credit markets.

 

  •  

Net Extraordinary Gains on our consolidated basis in connection with the consummation of the merger between Mizuho Securities and Shinko Securities in May 2009 amounted to JPY 19.8 billion (negative goodwill incurred profits associated with the merger of these securities companies and other factors).

(Consolidated)

 

     1H of FY2009
(Apr. 1 - Sep. 30, 2009)
          Change from
1H of FY2008
          (JPY Bn)

Consolidated Gross Profits

    1005.1    87.8

Consolidated Net Business Profits *1

    359.5    42.0

Credit-related Costs

    -161.7    -18.9

Net Gains (Losses) related to Stocks

    20.2    59.8

Ordinary Profits

    103.7    47.0

Net Income

    87.8    -6.7

Net valuation gains (losses) related to hedging transactions *2

    -105.8    -112.5

Net extraordinary gains due to the merger of the securities companies

    19.8    19.8

 

*1 Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments

 

*2 Equity derivatives + credit derivatives for credit risk hedging purposes (of which JPY -88.0 billion was recognized for the first quarter)

(Reference) 3 Banks

 

     1H of FY2009
(Apr. 1 - Sep. 30, 2009)
          Change from
1H of FY2008
          (JPY Bn)

Gross Profits *1

    790.6    24.9

G&A Expenses (excluding Non-Recurring Losses)

    -452.3    4.2

Net Business Profits

    338.3    29.2

Credit-related Costs *2

    -116.9    13.5

Net Gains (Losses) related to Stocks

    24.1    64.8

Ordinary Profits

    94.5    84.7

Net Income

    128.1    -41.2

 

*1 Includes impacts on banking subsidiaries (JPY 45.0 billion, eliminated on a consolidated basis) of a change in the recipients of dividend payments under our schemes for capital raising through issuance of preferred debt securities by SPCs

 

*2 Includes impact of a review of the calculation method for reserve for possible losses on loans guaranteed by our credit guarantee subsidiary (JPY 26.8 billion, eliminated on a consolidated basis)

 

2-1

·  

Net Interest Income

 

  •  

The average loan balance for the first half of fiscal 2009 increased by JPY 0.9 trillion on a year-on-year basis, while it decreased by JPY 1.3 trillion compared with the second half of fiscal 2008 mainly due to a decrease of JPY 1.1 trillion in loans to Deposit Insurance Corporation of Japan and the Japanese Government.

 

  •  

The domestic loan-and-deposit rate margin for the same period increased by 0.15% at Mizuho Corporate Bank from that for the first half of fiscal 2008. Meanwhile, the aggregate figure of domestic operations decreased slightly by 0.03% from that for the first half of fiscal 2008, as shown on the graph below.

 

  •  

Net Interest Income on a consolidated basis for the first half of fiscal 2009 increased by JPY 57.6 billion on a year-on-year basis to JPY 581.0 billion, with an increase in Net Interest Income in the Trading segment.

LOGO

*1

    Aggregate average balance of the 3 Banks for the period, excluding Trust Account and loans to Mizuho Financial Group, Inc. Balance for overseas branches includes foreign exchange translation impact.

*2

   

Aggregate figures of domestic operations of Mizuho Bank and Mizuho Corporate Bank after excluding loans to Mizuho Financial Group, Inc., Deposit Insurance Corporation of Japan and the Japanese Government

 

·  

Non-Interest Income

 

  •  

Net Fee and Commission Income of the 3 Banks for the first half of fiscal 2009 amounted to JPY 136.0 billion, a year-on-year decrease of JPY 10.3 billion. This was primarily due to, in a business environment where the impact of the financial market turmoil still remained on the real economy, a decrease in fee and commission income from solution-related business and overseas business with corporate customers as well as a decrease in profits from trust and asset management business of Mizuho Trust & Banking.

 

  •  

Meanwhile, as for our business with individual customers, fee income associated with sales of investment trusts and individual annuities for the first half of fiscal 2009 increased from that for the second half of fiscal 2008.

LOGO

 

2-2

II. Financial Soundness

 

·  

With respect to our financial soundness, although our NPL Ratio increased by 0.24% from March 31, 2009, it remained at a low level of 2.01%.

 

·  

Unrealized Gains (Losses) on Other Securities improved by JPY 732.6 billion from March 31, 2009 to JPY 160.2 billion.

 

·  

Our Consolidated Capital Adequacy Ratio was 12.92%, an improvement of 2.37% from that as of March 31, 2009.

 

·  

The total balance of securitization products and details as of September 30, 2009 are shown on page 2-5.

 

     September 30, 2009  
           Change from
Mar. 31, 2009		  
           (JPY Bn)  

Consolidated Capital Adequacy Ratio

    12.92 %    2.37 % 

(Total Risk-based Capital)

    (7,637.5 )    (1,410.5 ) 

Tier 1 Capital Ratio

    8.71 %    2.33 % 

(Tier 1 Capital)

    (5,151.1 )    (1,384.8 ) 

Prime Capital Ratio *1

    5.37 %    2.25 % 

Net Deferred Tax Assets (DTAs) (Consolidated)

    615.1      -99.5   

Net DTAs / Tier 1 Ratio

    11.9 %    -7.0 % 

Disclosed Claims under the Financial Reconstruction Law (3 Banks)

    1,431.2      46.4   

NPL Ratio

    2.01 %    0.24 % 

Unrealized Gains (Losses) on Other Securities (Consolidated) *2

    160.2      732.6   

 

*1 Prime Capital (Tier 1 Capital - preferred securities - preferred stock (excluding mandatory convertible preferred stock)) divided by Risk-weighted Assets

 

*2 The base amount to be recorded directly to Net Assets after tax and other necessary adjustments.

For Floating-rate Japanese Government Bonds and the vast majority of foreign currency denominated securitization products, we applied reasonably calculated prices based on the reasonable estimates of our management as fair value.

III. Disciplined Capital Management

In light of factors including the recent financial market turmoil and global economic downturn, we have been putting more priority on “strengthening of stable capital base” in order to prepare for a further adverse business environment.

More specifically, our medium-term target is to increase our consolidated Tier 1 capital ratio to 8% level, and we aim to maintain our prime capital at a level of more than half of our Tier 1 capital. As of September 30, 2009, our consolidated Tier 1 capital ratio and our prime capital ratio were 8.71% and 5.37%, respectively.

 

·  

Increase of our prime capital

 

  •  

In the first half of fiscal 2009, we issued common stock (the number of shares issued: 3 billion shares, total amount paid: JPY 529.2 billion) for the purpose of increasing our prime capital. Our decision is aimed at, in light of the current uncertainty over the economy, securing a solid and sufficient capital buffer in preparation for a further adverse business environment and ensuring the flexibility to capture business opportunities leading to our future growth and to respond to customer needs.

 

·  

Strengthening of our capital base through issuance of “non-dilutive” preferred securities

 

  •  

We issued preferred debt securities amounted at JPY 139.5 billion in June 2009, JPY 72.5 billion in August 2009, and JPY 25.0 billion in September 2009 through our overseas special purpose subsidiary, so as to further increase our group’s capital base in light of the recent financial market turmoil on top of securing the agility and improving the flexibility of our capital strategy.

 

  •  

Meanwhile, we made a full redemption of JPY 176.0 billion of preferred debt securities which became redeemable at the issuer’s option in June 2009.

 

·  

Conversion of mandatory convertible preferred stock into common stock

 

  •  

During the first half of fiscal 2009, the number of shares of our common stock increased by 1,002 million through requests for conversion of 317 million shares (JPY 317.6 billion) of Eleventh Series Class XI Preferred Stock. The outstanding balance of such preferred stock as of September 30, 2009 was JPY 594.2 billion.

We continue to pursue “disciplined capital management”, optimally balancing “strengthening of stable capital base” and “steady returns to shareholders” in accordance with changes in the business environment, our financial condition or other factors, and in light of on-going global discussions on capital.

 

2-3

Earnings Estimates for Fiscal 2009

(Figures below are on a consolidated basis)

 

·  

We estimate Consolidated Net Business Profits for fiscal 2009 to be JPY 720.0 billion, an increase of JPY 97.3 billion compared with the previous fiscal year, unchanged from the original estimate.

This is because, while taking into account the first half results in which the Trading segment showed a strong performance, we plan to further strengthen the profitability primarily in Customer Groups of the banking subsidiaries mainly by increasing loan interest income and through enhancing further the group synergies, and we assume our securities subsidiaries and others will improve their profitability.

 

·  

We estimate Credit-related Costs and Net Gains related to Stocks to be JPY -330.0 billion and JPY 50.0 billion, respectively.

 

·  

We estimate Ordinary Profits to be JPY 300.0 billion (a decrease of JPY 30.0 billion compared with the original estimate), taking into account factors in the first half including the valuation losses recognized on derivatives transactions entered into for hedging purposes.

 

·  

Based on the above, we estimate Consolidated Net Income to be JPY 200.0 billion, unchanged from the original estimate.

 

·  

While we anticipate a severe business environment, we plan to make cash dividend payments of JPY 8 per share of common stock for the fiscal year ending March 31, 2010, also from the standpoint of providing stable dividend payments, and plan to make dividend payments on preferred stock as prescribed (both unchanged from the original estimates).

(Consolidated)

 

     FY2009 (Estimates)
          Change from
FY2008
          (JPY Bn)

Consolidated Net Business Profits *

    720.0    97.3

Credit-related Costs

    -330.0    206.7

Net Gains (Losses) related to Stocks

    50.0    450.2

Ordinary Profits

    300.0    695.1

Net Income

    200.0    788.8

 

* Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments

(Reference) 3 Banks

 

     FY2009 (Estimates)
          Change from
FY2008
          (JPY Bn)

Net Business Profits *1

    700.0    123.3

Credit-related Costs *2

    -275.0    264.3

Net Gains (Losses) related to Stocks

    45.0    489.2

Ordinary Profits

    260.0    780.2

Net Income

    275.0    851.9

 

*1 Includes impacts on banking subsidiaries (approximately JPY 78.0 billion) of a change in the recipients of dividend payments under our schemes for capital raising through issuance of preferred securities by SPCs

 

*2 Includes impact of a review of the calculation method for reserve for possible losses on loans guaranteed by our credit guarantee subsidiary (JPY 26.8 billion, eliminated on a consolidated basis)

 

 

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, including as a result of the impact of the dislocation in the global financial markets; 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; the effect of changes in general economic conditions in Japan and elsewhere; our ability to avoid reputational harm; and the effectiveness of our operational, legal and other risk management policies.

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 annual report on 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.

 

 

 

2-4

[Reference]

 

1. Breakdown of Earnings by Business Segment

[3 Banks]

 

     1H of FY2009
(Apr. 1 - Sep. 30, 2009)
          Change from
1H of FY2008
          (JPY Bn)

Gross Profits

    589.0    -77.0

G&A Expenses

    -360.0    7.1

Customer Groups

    228.9    -69.9

Gross Profits

    201.5    101.8

G&A Expenses

    -92.2    -2.8

Trading & Others

    109.3    99.0

Gross Profits

    790.6    24.9

G&A Expenses

    -452.3    4.2

Net Business Profits

    338.3    29.2

(Note) The figures of each segment are shown based on the internal management data for reference purposes.

The figures of “1H of FY2009” reflect effects from changes in managerial accounting rules of Mizuho Bank (such as those for internal transfer rates for funding).

“Change from 1H of FY2008” was calculated based on managerial accounting rules before the changes.

The figures of 1H of FY2009 before changes in managerial accounting rules are as follows; “Customer Groups” (JPY 241.4 billion), “Trading and Others” (JPY 96.7 billion).

 

2. Total Balance of Securitization Products and Details

[The group in total]

[balances on managerial accounting and fair value basis]

 

     September 30, 2009 *  
     (JPY Bn)  

Foreign currency denominated

    567  (35) 

RMBS, ABSCDO

    245  (1) 

Yen denominated

    2,438  (135) 

Securitization Products

    3,005  (170) 

 

* Figures in brackets are the balances of Mizuho Securities including its overseas subsidiaries (all of which were held in trading accounts)

Please refer to the attachment, “Summary of the impact of the dislocation in the global financial markets on our foreign currency denominated exposures”.

 

 

Definition

 

3 Banks:    Aggregate figures for Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking on a non-consolidated basis.

 

 

 

2-5

Attachment

Summary of the impact of the dislocation in the global financial markets on our foreign currency denominated exposures (the group in total)

(Managerial accounting basis)

 

1. Breakdown of foreign currency denominated securitization products

Banking Subsidiaries

(JPY Bn, round figures)

3 Banks (including overseas subsidiaries)

= Banking account

 

      
          Balances as of
Mar. 31, 2009 *1		   Marks (%) as of
Mar. 31, 2009		   Balances as of
Sep. 30, 2009 *1		   Marks (%) as of
Sep. 30, 2009		   Unrealized
Gains/Losses as of
Sep. 30, 2009		   Realized
Gains/Losses for
1H FY2009 *1		   (Reference)
Hedged
proportions *2
        (Fair Value)   (=Fair Value/
Face Value)		   (Fair Value)   (=Fair Value/
Face Value)		            

1

  

Foreign currency denominated securitization products

   540   62   *3      532   64   -19   2   approx.60%

2

  

ABSCDOs, CDOs

   49   23   38   19   1   1   approx.40%

3

  

CDOs backed by RMBS

   5   3   4   3   1   0   —  

4

  

CDOs backed by claims against corporations (securitization products backed by original assets (non-securitized assets))

   44   55   34   52   0   1   approx.40%

5

  

RMBS *4 (underlying assets outside US, mainly in Europe)

   188   68   206   74   -6   1   approx.70%

6

  

ABS, CLOs and others

   303   79   288   81   -14   0   approx.50%

7

  

CLOs

   182   90   176   92   -10   0   approx.50%

8

  

ABS

   69   77   62   80   -1   3   approx.50%

9

  

CMBS

   52   76   50   75   -3   -3   approx.70%

 

*1 Except for the securitization products which were the reference assets of our securitization schemes for transferring credit risk to third parties (hedged portion), a Reserve for Possible Losses on Investments has been provided against unrealized losses on securitization products related to the discontinuation of business regarding credit investments primarily in Europe, which had been made as an alternative to loans. The balance of reserve was approx. JPY 23 billion as of Sep. 30, 2009. Since securities were recognized at fair value on the consolidated balance sheet, the relevant balances as of Mar. 31, 2009 and Sep. 30, 2009 were those after being offset by the amount of Reserve for Possible Losses on Investments.

 

*2 The proportions of balances (fair value) of the securitization products, as of Sep. 30, 2009, which were the reference assets of our securitization schemes (with CDS and other means) for transferring credit risk to third parties until maturity.

In some of the securitization schemes, a portion of credit risk of the reference assets remained with Mizuho Financial Group through our retaining a small first loss position and a portion of senior tranches.

(Reference) CDS counterparties †1:

Financial services subsidiary (A- rating) of a multi-line insurance company: approx. JPY 158 billion

Government-affiliated financial institution (AA- rating): approx. JPY 89 billion

†1 Notional amount basis. Ratings were based on the lowest external ratings as of Sep. 30, 2009.

 

*3 The change in balance from Mar. 31, 2009 (approx. JPY -8 billion) included approx. JPY 10 billion decrease in balance due to foreign exchange translation impact primarily caused by appreciation of Japanese yen against the US dollar.

 

*4 Excluded US government-owned corporation bonds and government-sponsored enterprises bonds. The total balance (fair value) of the US government-owned corporation (Ginnie Mae) bonds and government-sponsored enterprises (GSE) (Fannie Mae, Freddie Mac) bonds held as of Sep. 30, 2009 was approx. JPY 610 billion, with approx. JPY 13 billion of unrealized gains. Almost all of the total balance was RMBS guaranteed by Ginnie Mae. There was no holding of stocks of these entities.

Securities Subsidiaries

(JPY Bn, round figures)

Mizuho Securities (including overseas subsidiaries)

=Trading account

 

         Balances as of
Mar. 31, 2009		    Marks (%) as of
Mar. 31, 2009		    Balances as of
Sep. 30, 2009		    Marks (%) as of
Sep. 30, 2009		    Realized
Gains/Losses for
1H FY2009
         (Fair Value)    (=Fair Value/
Face Value)		    (Fair Value)    (=Fair Value/
Face Value)		     

1

  

Foreign currency denominated securitization products

    39    12    *1      35    12    1

2

  

ABSCDOs, CDOs

    6    2    1    0    -0

3

  

CDOs backed by RMBS

    6    2    *2        1    0    -0

4

  

CDOs backed by CMBS

    —      —      —      —      0

5

  

RMBS

    1    1    0    0    0

6

  

RMBS backed by US subprime mortgage loans

    0    2    0    0    -0

7

  

RMBS except above *3 (RMBS backed by mid-prime loans, prime loans and others)

    1    1    0    0    0

8

  

ABS, CLOs and others

    32    79    34    81    1

9

  

CLOs

    24    83    22    79    -1

10

  

CMBS

    0    14    0    14    -0

11

  

SIV-related

    *4      8    72    *4      12    86    2

 

*1 The change in balance from Mar. 31, 2009 (approx. JPY -4 billion) included approx. JPY 3 billion decrease in balance due to foreign exchange translation impact primarily caused by appreciation of Japanese yen against the US dollar.

 

*2 The proportion of US subprime mortgage loan-related assets to the total underlying assets was approx. 20%. Approx. 30% of the balance (fair value) consisted of Super Senior tranche.

 

*3 Excluded US government-owned corporation bonds and government-sponsored enterprises bonds. As of Sep. 30, 2009, approx. JPY 34 billion of RMBS issued or guaranteed by Ginnie Mae or GSE (Fannie Mae, Freddie Mac) and approx. JPY 107 billion of the corporate bonds issued by Fannie Mae or Freddie Mac were held for the purpose of, among other things, market-making activities in the US. There was no holding of stocks of these entities.

 

*4 Obtained senior bonds issued by a SIV, in settlement of CDS transactions where such bonds were treated as collateral. These CDS transactions were related to CDO structuring business.

 

  (Note) Please refer to the Mizuho Securities’ Summary of Financial Statements for the Six months ended September 30, 2009 for more detailed information such as Credit Default Swaps (CDS) related to securitization products (total notional amount of approx. JPY 172 billion).

 

2-6

2. Other relevant information (Sep. 30, 2009)

(The figures below are rounded to JPY 1 Bn)

Banking Subsidiaries

 

·  

Loans Held for Sale (for which Reserve for Possible Losses on Sales of Loans was recorded)

 

  •  

Approximately JPY 28 billion of Reserve for Possible Losses on Sales of Loans was recorded against approximately JPY 98 billion of Loans Held for Sale associated with overseas LBO and other transactions (Reserve ratio: 28.1%)

 

  (Note) The figures shown above exclude those related to Intensive Control Obligors or below. The reserve ratio would be 34.3%, if including the balances of Loans Held for Sale to such obligors and the amounts of both Reserves for Possible Losses on Loans and Reserve for Contingencies in relation to the relevant balances.

 

  •  

Out of the above-mentioned JPY 98 billion, the LBO/MBO related Loans Held for Sale amounted to approximately JPY 85 billion, and the relevant reserve ratio was 29.6%.

 

  (Note) The figures shown above exclude those related to Intensive Control Obligors or below. The reserve ratio would be 35.9%, if including the balances of Loans Held for Sale to such obligors and the amounts of both Reserves for Possible Losses on Loans and Reserve for Contingencies in relation to the relevant balances.

 

·  

Overseas ABCP program-related

 

  •  

The total assets of approximately JPY 84 billion acquired by overseas ABCP conduits, for which Mizuho Corporate Bank acted as a sponsor, included approximately JPY 33 billion of securitization products that were backed by credit card receivables and account receivables. No US subprime mortgage loan-related assets were included.

 

  •  

The balance of securitization products acquired by the aforementioned overseas ABCP conduits decreased by approximately JPY 49 billion from that as of Mar. 31, 2009 primarily due to redemptions at maturities.

 

·  

Securitization products and loans guaranteed by US financial guarantors (monolines)

Securitization products guaranteed by US monolines

 

  •  

Nil (Approximately JPY 4 billion of securitization products held by Mizuho Corporate Bank, which were backed by auto lease receivables, were sold in the second quarter of FY 2009. Gains on sales: approximately JPY 2 billion.)

Loans guaranteed by US monolines

 

  •  

Approximately JPY 15 billion of Mizuho Corporate Bank’s loan commitments to overseas infrastructure projects (of which approximately JPY 7 billion was drawn down). No US subprime mortgage loan-related exposures were included.

 

  •  

There were no particular concerns about the credit conditions of the aforementioned projects as of Sep. 30, 2009.

 

·  

Loans to mortgage lenders in US (working capital, etc.)

 

  •  

Approximately JPY 28 billion (approximately 20% of the lenders concerned had external ratings in the “A” range *1, and the rest had ratings in the “BB” range *1)

 

  *1: Based on the lowest external ratings as of Sep. 30, 2009.

 

2-7

SELECTED FINANCIAL INFORMATION

For the Second Quarter (First Half) of Fiscal 2009

(Six months ended September 30, 2009)

<Under Japanese GAAP>

 

 

LOGO

C O N T E N T S

 

 

Notes:

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

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

“NON(B&R)”: Aggregated figures of the relevant banks including past figures for their former financial subsidiaries for corporate revitalization.

*MHBK, MHCB and MHTB merged with their own financial subsidiaries for corporate revitalization respectively, as of October 1, 2005.

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

 

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2009

    See above Notes    Page

1. Income Analysis

    CON   NON(B)    3- 1

2. Interest Margins (Domestic Operations)

    NON(B)      3- 6

3. Use and Source of Funds

    NON(B)      3- 7

4. Net Gains/Losses on Securities

    NON(B)      3- 11

5. Unrealized Gains/Losses on Securities

    CON   NON(B)    3- 13

6. Projected Redemption Amounts for Securities

    NON(B)      3- 15

7. Overview of Derivative Transactions Qualifying for Hedge Accounting

    NON(B)      3- 16

8. Employee Retirement Benefits

    NON(B)   CON    3- 17

9. Capital Adequacy Ratio

    CON      3- 19

II. REVIEW OF CREDITS

   See above Notes    Page

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

    CON   NON(B)    3- 21

2. Status of Reserves for Possible Losses on Loans

    CON   NON(B)    3- 23

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

    CON   NON(B)    3- 24

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

    CON   NON(B)    3- 25

5. Coverage on Disclosed Claims under the FRL

    NON(B)      3- 27

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

    NON(B)      3- 30

7. Results of Removal of NPLs from the Balance Sheet

    NON(B&R)      3- 31

8. Status of Loans by Industry

        

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

    NON(B)      3- 33

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

    NON(B)      3- 37

9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises

        

(“SMEs”) and Individual Customers

        

(1) Balance of Housing and Consumer Loans

    NON(B)      3- 39

(2) Loans to SMEs and Individual Customers

    NON(B)      3- 39

10. Status of Loans by Region

        

(1) Balance of Loans to Restructuring Countries

    NON(B)      3- 40

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

    NON(B)      3- 40

III. DEFERRED TAXES

   See above Notes    Page

1. Change in Deferred Tax Assets, etc.

    CON   NON(B)    3- 41

2. Estimation of Deferred Tax Assets, etc.

        

(1) Calculation Policy

    NON(B)      3- 42

(2) Estimation for Calculating Deferred Tax Assets

    NON(B)      3- 43

IV. OTHERS

    See above Notes    Page

1. Breakdown of Deposits (Domestic Offices)

    NON(B)          3- 47

2. Number of Directors and Employees

    HC    NON(B)       3- 48

3. Number of Branches and Offices

    NON(B)          3- 49

4. Earnings Estimates for Fiscal 2008

    CON    NON(B)    HC    3- 50

Attachments

   See above Notes    Page

Mizuho Bank, Ltd.

            

Comparison of Non-Consolidated Balance Sheets (selected items)

    NON(B)          3- 51

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

    NON(B)          3- 52

Non-Consolidated Statement of Changes in Net Assets

    NON(B)          3- 53

Mizuho Corporate Bank, Ltd.

            

Comparison of Non-Consolidated Balance Sheets (selected items)

    NON(B)          3- 54

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

    NON(B)          3- 55

Non-Consolidated Statement of Changes in Net Assets

    NON(B)          3- 56

 

 

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, including as a result of the impact of the dislocation in the global financial markets; 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; the effect of changes in general economic conditions in Japan and elsewhere; our ability to avoid reputational harm; and the effectiveness of our operational, legal and other risk management policies.

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 annual report on 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.

 

Mizuho Financial Group, Inc.

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2009

1. Income Analysis

Consolidated

 

          (Millions of yen)  
          First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  
         

Consolidated Gross Profits

    1    1,005,198      87,875      917,322   

Net Interest Income

    2    581,078      57,674      523,403   

Fiduciary Income

    3    24,150      (5,599 )    29,749   

Credit Costs for Trust Accounts

    4    —        —        —     

Net Fee and Commission Income

    5    222,025      21,892      200,132   

Net Trading Income

    6    197,911      144,990      52,920   

Net Other Operating Income

    7    (19,967 )    (131,082 )    111,115   

General and Administrative Expenses

    8    (657,751 )    (53,282 )    (604,469 ) 

Personnel Expenses

    9    (332,293 )    (56,433 )    (275,860 ) 

Non-Personnel Expenses

    10    (299,856 )    1,299      (301,156 ) 

Miscellaneous Taxes

    11    (25,601 )    1,851      (27,453 ) 

Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans)

    12    (190,788 )    (34,577 )    (156,211 ) 

Losses on Write-offs of Loans

    13    (69,568 )    40,494      (110,063 ) 

Reversal of (Provision for) Reserves for Possible Losses on Loans

    14    (111,922 )    (69,300 )    (42,621 ) 

Net Gains (Losses) related to Stocks

    15    20,225      59,821      (39,596 ) 

Equity in Income from Investments in Affiliates

    16    1,446      (901 )    2,347   

Other

    17    (74,540 )    (11,935 )    (62,605 ) 
                     

Ordinary Profits

    18    103,789      47,001      56,788   

Net Extraordinary Gains (Losses)

    19    40,393      39,853      540   

Reversal of Reserves for Possible Losses on Loans, etc.

    20    28,998      15,617      13,381   

Reversal of Reserve for Possible Losses on Investments

    21    —        (0 )    0   
                     

Income before Income Taxes and Minority Interests

    22    144,183      86,854      57,328   

Income Taxes - Current *

    23    (11,644 )    650      (12,295 ) 

     - Deferred

    24    10,773      (52,367 )    63,141   
                     

Net Income before Minority Interests

    25    143,312      35,137      108,174   

Minority Interests in Net Income

    26    (55,505 )    (41,908 )    (13,597 ) 
                     

Net Income

    27    87,806      (6,770 )    94,577   
                     

_____________

          

*  Income Taxes - Current [23] includes Refund of Income Taxes.

 

          

Credit-related Costs

(including Credit Costs for Trust Accounts)

    28    (161,789 )    (18,959 )    (142,829 ) 

_____________

          

* 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.

                                                [20]+ Credit Costs for Trust Accounts [4]

  

  

  

(Reference)

          

Consolidated Net Business Profits

    29    359,516      42,056      317,459   

_____________

          

* 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    164      17      147   

Number of affiliates under the equity method

    31    23      1      22   

 

3-1

Mizuho Financial Group, Inc.

 

Aggregated Figures of the 3 Banks

Non-Consolidated

 

          (Millions of yen)  
          First Half of Fiscal 2009     First Half of
Fiscal 2008		  
          MHBK     MHCB     MHTB     Aggregated
Figures		     Change    

Gross Profits

    1    408,224      318,646      63,778      790,648      24,988      765,659   

Domestic Gross Profits

    2    368,198      150,236      59,131      577,566      (45,093 )    622,660   

Net Interest Income

    3    296,535      109,417      20,905      426,858      14,925      411,932   

Fiduciary Income

    4        23,797      23,797      (5,165 )    28,962   

Credit Costs for Trust Accounts

    5        —        —        —        —     

Net Fee and Commission Income

    6    63,572      28,384      12,007      103,965      (6,470 )    110,435   

Net Trading Income

    7    2,718      14,568      1,655      18,942      (48,354 )    67,296   

Net Other Operating Income

    8    5,371      (2,133 )    765      4,003      (28 )    4,032   

International Gross Profits

    9    40,026      168,409      4,646      213,082      70,082      142,999   

Net Interest Income

    10    15,224      116,245      2,299      133,769      78,176      55,592   

Net Fee and Commission Income

    11    4,982      27,160      (32 )    32,109      (3,832 )    35,942   

Net Trading Income

    12    42,145      32,871      274      75,291      134,556      (59,264 ) 

Net Other Operating Income

    13    (22,326 )    (7,866 )    2,105      (28,088 )    (138,818 )    110,729   

General and Administrative Expenses (excluding Non-Recurring Losses)

    14    (285,005 )    (121,415 )    (45,880 )    (452,301 )    4,260      (456,562 ) 

Expense Ratio

    15    69.8 %    38.1 %    71.9 %    57.2 %    (2.4 %)    59.6 % 

Personnel Expenses

    16    (98,060 )    (43,569 )    (17,616 )    (159,247 )    (17,989 )    (141,257 ) 

Non-Personnel Expenses

    17    (172,112 )    (72,084 )    (26,885 )    (271,082 )    20,456      (291,538 ) 

Premium for Deposit Insurance

    18    (22,595 )    (3,240 )    (1,402 )    (27,239 )    (336 )    (26,902 ) 

Miscellaneous Taxes

    19    (14,831 )    (5,761 )    (1,378 )    (21,971 )    1,794      (23,766 ) 
                                       

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) *1

    20    123,218      197,230      17,897      338,347      29,249      309,097   

Excluding Net Gains (Losses) related to Bonds

    21    120,684      186,176      15,131      321,992      34,678      287,313   
                                       

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    22    2,368      24,347      (1,213 )    25,502      60,517      (35,015 ) 
                                       

Net Business Profits

    23    125,587      221,577      16,684      363,849      89,767      274,081   

Net Gains (Losses) related to Bonds

    24    2,534      11,054      2,765      16,354      (5,428 )    21,783   

Net Non-Recurring Gains (Losses)

    25    (106,512 )    (154,029 )    (8,790 )    (269,333 )    (5,058 )    (264,274 ) 

Net Gains (Losses) related to Stocks

    26    (6,562 )    30,545      122      24,104      64,886      (40,781 ) 

Expenses related to Portfolio Problems

    27    (68,730 )    (94,553 )    (6,499 )    (169,783 )    (31,879 )    (137,903 ) 

Other

    28    (31,219 )    (90,022 )    (2,413 )    (123,654 )    (38,064 )    (85,589 ) 
                                       

Ordinary Profits

    29    19,074      67,547      7,894      94,516      84,709      9,806   

Net Extraordinary Gains (Losses)

    30    15,137      8,622      60      23,820      (88,963 )    112,783   

Net Gains (Losses) on Disposition of Fixed Assets

    31    (1,569 )    (665 )    (112 )    (2,347 )    (344 )    (2,002 ) 

Losses on Impairment of Fixed Assets

    32    (301 )    (1,861 )    (556 )    (2,719 )    (1,739 )    (980 ) 

Reversal of Reserves for Possible Losses on Loans, etc.

    33    16,501      10,794      25      27,322      (15,135 )    42,458   

Reversal of Reserve for Possible Losses on Investments

    34    —        —        —        —        (83,623 )    83,623   

Income before Income Taxes

    35    34,211      76,170      7,954      118,336      (4,254 )    122,590   

Income Taxes - Current *2

    36    (271 )    (502 )    (6 )    (780 )    (471 )    (308 ) 

     - Deferred

    37    19,892      (7,666 )    (1,647 )    10,579      (36,562 )    47,141   
                                       

Net Income

    38    53,833      68,001      6,300      128,135      (41,288 )    169,423   
                                       

_____________

                

*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 [5].

     

*2. Income Taxes - Current [36] includes Refund of Income Taxes.

    

Credit-related Costs

    39    (49,860 )    (59,411 )    (7,686 )    (116,958 )    13,502      (130,461 ) 

_____________

                

*  Credit-related Costs [39] = Expenses related to Portfolio Problems [27] + Reversal of (Provision for) General Reserve for

                                                 Possible Losses on Loans [22] + Reversal of Reserves for Possible Losses on Loans, etc.

                                                 [33] + Credit Costs for Trust Accounts [5]

     

  

  

(Reference) Breakdown of Credit-related Costs

  

Credit Costs for Trust Accounts

    40        —        —        —        —     

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    41    2,368      24,347      (1,213 )    25,502      5,954      19,548   

Losses on Write-offs of Loans

    42    (23,721 )    (17,244 )    (2,240 )    (43,205 )    55,675      (98,880 ) 

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

    43    (26,577 )    (60,148 )    (4,258 )    (90,984 )    (42,482 )    (48,502 ) 

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

    44    —        126      0      126      64      62   

Reversal of (Provision for) Reserve for Contingencies

    45    —        1,249      25      1,274      3,018      (1,744 ) 

Other (including Losses on Sales of Loans)

    46    (1,929 )    (7,742 )    —        (9,672 )    (8,727 )    (945 ) 
                                       

Total

    47    (49,860 )    (59,411 )    (7,686 )    (116,958 )    13,502      (130,461 ) 
                                       

 

3-2

Mizuho Financial Group, Inc.

 

Mizuho Bank

Non-Consolidated

 

          (Millions of yen)  
          First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Gross Profits

    1    408,224      (18,281 )    426,505   

Domestic Gross Profits

    2    368,198      2,129      366,068   

Net Interest Income

    3    296,535      5,551      290,983   

Net Fee and Commission Income

    4    63,572      (6,744 )    70,316   

Net Trading Income

    5    2,718      (982 )    3,700   

Net Other Operating Income

    6    5,371      4,303      1,067   

International Gross Profits

    7    40,026      (20,410 )    60,436   

Net Interest Income

    8    15,224      9,712      5,512   

Net Fee and Commission Income

    9    4,982      (2,187 )    7,170   

Net Trading Income

    10    42,145      51,350      (9,204 ) 

Net Other Operating Income

    11    (22,326 )    (79,285 )    56,958   

General and Administrative Expenses (excluding Non-Recurring Losses)

    12    (285,005 )    1,732      (286,737 ) 

Expense Ratio

    13    69.8 %    2.5 %    67.2 % 

Personnel Expenses

    14    (98,060 )    (16,367 )    (81,693 ) 

Non-Personnel Expenses

    15    (172,112 )    16,433      (188,546 ) 

Premium for Deposit Insurance

    16    (22,595 )    (440 )    (22,155 ) 

Miscellaneous Taxes

    17    (14,831 )    1,665      (16,497 ) 
                     

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)

    18    123,218      (16,548 )    139,767   

Excluding Net Gains (Losses) related to Bonds

    19    120,684      (13,211 )    133,895   

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    20    2,368      37,383      (35,015 ) 
                     

Net Business Profits

    21    125,587      20,834      104,752   

Net Gains (Losses) related to Bonds

    22    2,534      (3,337 )    5,871   
                     

Net Non-Recurring Gains (Losses)

    23    (106,512 )    42,556      (149,068 ) 

Net Gains (Losses) related to Stocks

    24    (6,562 )    31,244      (37,807 ) 

Expenses related to Portfolio Problems

    25    (68,730 )    18,795      (87,526 ) 

Other

    26    (31,219 )    (7,483 )    (23,735 ) 
                     

Ordinary Profits

    27    19,074      63,391      (44,316 ) 

Net Extraordinary Gains (Losses)

    28    15,137      (69,560 )    84,698   

Net Gains (Losses) on Disposition of Fixed Assets

    29    (1,569 )    (2,298 )    728   

Losses on Impairment of Fixed Assets

    30    (301 )    (127 )    (173 ) 

Reversal of Reserves for Possible Losses on Loans, etc.

    31    16,501      9,717      6,784   

Reversal of Reserve for Possible Losses on Investments

    32    —        (83,623 )    83,623   
                     

Income before Income Taxes

    33    34,211      (6,169 )    40,381   

Income Taxes - Current

    34    (271 )    6      (277 ) 

 - Deferred

    35    19,892      (19,998 )    39,890   
                     

Net Income

    36    53,833      (26,161 )    79,994   
                     

Credit-related Costs

    37    (49,860 )    65,897      (115,757 ) 

_______________

          

*  Credit-related Costs [37] = 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. [31]

      

(Reference) Breakdown of Credit-related Costs

          

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    38    2,368      37,383      (35,015 ) 

Losses on Write-offs of Loans

    39    (23,721 )    31,000      (54,721 ) 

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

    40    (26,577 )    (1,228 )    (25,349 ) 

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

    41    —        —        —     

Reversal of (Provision for) Reserve for Contingencies

    42    —        —        —     

Other (including Losses on Sales of Loans)

    43    (1,929 )    (1,258 )    (671 ) 
                     

Total

    44    (49,860 )    65,897      (115,757 ) 
                     

 

3-3

Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

Non-Consolidated

 

          (Millions of yen)  
           First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Gross Profits

    1    318,646      50,001      268,645   

Domestic Gross Profits

    2    150,236      (41,889 )    192,125   

Net Interest Income

    3    109,417      12,870      96,547   

Net Fee and Commission Income

    4    28,384      (285 )    28,670   

Net Trading Income

    5    14,568      (49,521 )    64,089   

Net Other Operating Income

    6    (2,133 )    (4,952 )    2,818   

International Gross Profits

    7    168,409      91,890      76,519   

Net Interest Income

    8    116,245      68,206      48,038   

Net Fee and Commission Income

    9    27,160      (1,652 )    28,812   

Net Trading Income

    10    32,871      84,150      (51,279 ) 

Net Other Operating Income

    11    (7,866 )    (58,814 )    50,947   

General and Administrative Expenses (excluding Non-Recurring Losses)

    12    (121,415 )    1,984      (123,400 ) 

Expense Ratio

    13    38.1 %    (7.8 %)    45.9 % 

Personnel Expenses

    14    (43,569 )    (174 )    (43,395 ) 

Non-Personnel Expenses

    15    (72,084 )    2,188      (74,272 ) 

Premium for Deposit Insurance

    16    (3,240 )    51      (3,292 ) 

Miscellaneous Taxes

    17    (5,761 )    (29 )    (5,732 ) 
                     

Net Business Profits
(before Reversal of (Provision for) General Reserve for Possible Losses on Loans)

    18    197,230      51,985      145,244   

Excluding Net Gains (Losses) related to Bonds

    19    186,176      53,378      132,797   

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    20    24,347      24,347      —     
                     

Net Business Profits

    21    221,577      76,333      145,244   

Net Gains (Losses) related to Bonds

    22    11,054      (1,392 )    12,447   

Net Non-Recurring Gains (Losses)

    23    (154,029 )    (58,832 )    (95,197 ) 

Net Gains (Losses) related to Stocks

    24    30,545      29,239      1,305   

Expenses related to Portfolio Problems

    25    (94,553 )    (57,132 )    (37,421 ) 

Other

    26    (90,022 )    (30,940 )    (59,081 ) 
                     

Ordinary Profits

    27    67,547      17,500      50,047   

Net Extraordinary Gains (Losses)

    28    8,622      (16,022 )    24,644   

Net Gains (Losses) on Disposition of Fixed Assets

    29    (665 )    1,812      (2,477 ) 

Losses on Impairment of Fixed Assets

    30    (1,861 )    (1,087 )    (774 ) 

Reversal of Reserves for Possible Losses on Loans, etc.

    31    10,794      (20,960 )    31,755   

Reversal of Reserve for Possible Losses on Investments

    32    —        —        —     
                     

Income before Income Taxes

    33    76,170      1,478      74,692   

Income Taxes - Current *

    34    (502 )    (483 )    (19 ) 

    - Deferred

    35    (7,666 )    (18,736 )    11,069   
                     

Net Income

    36    68,001      (17,741 )    85,743   
                     

__________     

* Income Taxes - Current [34] includes Refund of Income Taxes.

          

Credit-related Costs

    37    (59,411 )    (53,745 )    (5,665 ) 

__________     

* Credit-related Costs [37] = 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. [31]

      

  

  

(Reference) Breakdown of Credit-related Costs

          

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    38    24,347      (24,837 )    49,185   

Losses on Write-offs of Loans

    39    (17,244 )    13,959      (31,203 ) 

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

    40    (60,148 )    (38,486 )    (21,661 ) 

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

    41    126      64      62   

Reversal of (Provision for) Reserve for Contingencies

    42    1,249      3,023      (1,774 ) 

Other (including Losses on Sales of Loans)

    43    (7,742 )    (7,468 )    (273 ) 
                     

Total

    44    (59,411 )    (53,745 )    (5,665 ) 
                     

 

3-4

Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking

Non-Consolidated

 

          (Millions of yen)  
          First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Gross Profits

    1    63,778      (6,731 )    70,509   

Domestic Gross Profits

    2    59,131      (5,333 )    64,465   

Net Interest Income

    3    20,905      (3,496 )    24,401   

Fiduciary Income

    4    23,797      (5,165 )    28,962   

Credit Costs for Trust Accounts

    5    —        —        —     

Net Fee and Commission Income

    6    12,007      559      11,448   

Net Trading Income

    7    1,655      2,148      (493 ) 

Net Other Operating Income

    8    765      619      146   

International Gross Profits

    9    4,646      (1,397 )    6,043   

Net Interest Income

    10    2,299      257      2,041   

Net Fee and Commission Income

    11    (32 )    7      (40 ) 

Net Trading Income

    12    274      (944 )    1,219   

Net Other Operating Income

    13    2,105      (717 )    2,823   

General and Administrative Expenses (excluding Non-Recurring Losses)

    14    (45,880 )    543      (46,424 ) 

Expense Ratio

    15    71.9 %    6.0 %    65.8 % 

Personnel Expenses

    16    (17,616 )    (1,448 )    (16,168 ) 

Non-Personnel Expenses

    17    (26,885 )    1,834      (28,719 ) 

Premium for Deposit Insurance

    18    (1,402 )    52      (1,455 ) 

Miscellaneous Taxes

    19    (1,378 )    157      (1,536 ) 
                     

Net Business Profits
(before Reversal of (Provision for) General Reserve for Possible Losses on Loans) *

    20    17,897      (6,187 )    24,084   

Excluding Net Gains (Losses) related to Bonds

    21    15,131      (5,488 )    20,620   

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    22    (1,213 )    (1,213 )    —     
                     

Net Business Profits

    23    16,684      (7,400 )    24,084   

Net Gains (Losses) related to Bonds

    24    2,765      (698 )    3,464   

Net Non-Recurring Gains (Losses)

    25    (8,790 )    11,218      (20,008 ) 

Net Gains (Losses) related to Stocks

    26    122      4,402      (4,279 ) 

Expenses related to Portfolio Problems

    27    (6,499 )    6,456      (12,955 ) 

Other

    28    (2,413 )    359      (2,772 ) 
                     

Ordinary Profits

    29    7,894      3,817      4,076   

Net Extraordinary Gains (Losses)

    30    60      (3,380 )    3,440   

Net Gains (Losses) on Disposition of Fixed Assets

    31    (112 )    140      (253 ) 

Losses on Impairment of Fixed Assets

    32    (556 )    (524 )    (32 ) 

Reversal of Reserves for Possible Losses on Loans, etc.

    33    25      (3,892 )    3,917   

Reversal of Reserve for Possible Losses on Investments

    34    —        —        —     
                     

Income before Income Taxes

    35    7,954      437      7,517   

Income Taxes - Current

    36    (6 )    4      (11 ) 

    - Deferred

    37    (1,647 )    2,171      (3,819 ) 
                     

Net Income

    38    6,300      2,614      3,686   
                     

__________     

*  Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) [20] =

                  Gross Profits [1] + General and Administrative Expenses (excluding Non-Recurring Losses) [14] - Credit Costs for                   Trust Accounts [5]

      

     

   

Credit-related Costs

    39    (7,686 )    1,351      (9,038 ) 

__________     

*  Credit-related Costs [39] = Expenses related to Portfolio Problems [27] + Reversal of (Provision for) General Reserve for

                                                 Possible Losses on Loans [22] + Reversal of Reserves for Possible Losses on Loans, etc. [33] +                                                  Credit Costs for Trust Accounts [5]

      

     

   

         

(Reference) Breakdown of Credit-related Costs

          

Credit Costs for Trust Accounts

    40    —        —        —     

Reversal of (Provision for) General Reserve for Possible Losses on Loans

    41    (1,213 )    (6,591 )    5,378   

Losses on Write-offs of Loans

    42    (2,240 )    10,715      (12,955 ) 

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

    43    (4,258 )    (2,767 )    (1,491 ) 

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    25      (4 )    30   

Other (including Losses on Sales of Loans)

    46    —        —        —     
                     

Total

    47    (7,686 )    1,351      (9,038 ) 
                     

 

3-5

Mizuho Financial Group, Inc.

 

2. Interest Margins (Domestic Operations)

Non-Consolidated

 

                (%)
Aggregated Figures of MHBK and MHCB               First Half of
Fiscal 2009		    Change     First Half of
Fiscal 2008

Return on Interest-Earning Assets

      1    1.12    (0.19 )    1.31

Return on Loans and Bills Discounted

      2    1.45    (0.20 )    1.65

Return on Securities

      3    0.68    (0.19 )    0.88

Cost of Funding (including Expenses)

      4    0.97    (0.22 )    1.19

Cost of Deposits and Debentures (including Expenses)

      5    1.13    (0.14 )    1.27

Cost of Deposits and Debentures

      6    0.19    (0.15 )    0.34

Cost of Other External Liabilities

      7    0.39    (0.36 )    0.75

Net Interest Margin

    (1 )-(4)    8    0.14    0.03      0.11

Loan and Deposit Rate Margin (including Expenses)

    (2 )-(5)    9    0.32    (0.05 )    0.37

Loan and Deposit Rate Margin

    (2 )-(6)    10    1.25    (0.05 )    1.30

_____________

*  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    1.61    (0.18 )    1.79

Loan and Deposit Rate Margin (including Expenses)

    (11 )-(5)    12    0.48    (0.03 )    0.51

Loan and Deposit Rate Margin

    (11 )-(6)    13    1.41    (0.02 )    1.44

 

Mizuho Bank

             

Return on Interest-Earning Assets

      14    1.19    (0.17 )    1.36

Return on Loans and Bills Discounted

      15    1.58    (0.25 )    1.83

Return on Securities

      16    0.56    (0.12 )    0.68

Cost of Funding (including Expenses)

      17    1.06    (0.20 )    1.27

Cost of Deposits and Debentures (including Expenses)

      18    1.12    (0.14 )    1.26

Cost of Deposits and Debentures

      19    0.17    (0.11 )    0.28

Cost of Other External Liabilities

      20    0.25    (0.49 )    0.74

Net Interest Margin

    (14 )-(17)    21    0.12    0.03      0.09

Loan and Deposit Rate Margin (including Expenses)

    (15 )-(18)    22    0.45    (0.10 )    0.56

Loan and Deposit Rate Margin

    (15 )-(19)    23    1.40    (0.14 )    1.54

__________     

*  Deposits and Debentures include NCDs.

 

(Reference) After excluding loans to Deposit Insurance Corporation of Japan and Japanese government

Return on Loans and Bills Discounted

      24    1.83    (0.20 )    2.03

Loan and Deposit Rate Margin (including Expenses)

    (24 )-(18)    25    0.70    (0.06 )    0.77

Loan and Deposit Rate Margin

    (24 )-(19)    26    1.65    (0.09 )    1.75

Mizuho Corporate Bank

             

Return on Interest-Earning Assets

      27    1.00    (0.21 )    1.22

Return on Loans and Bills Discounted

      28    1.21    (0.11 )    1.33

Return on Securities

      29    0.82    (0.30 )    1.12

Cost of Funding (including Expenses)

      30    0.81    (0.25 )    1.06

Cost of Deposits and Debentures (including Expenses)

      31    1.15    (0.16 )    1.31

Cost of Deposits and Debentures

      32    0.25    (0.28 )    0.53

Cost of Other External Liabilities

      33    0.42    (0.32 )    0.75

Net Interest Margin

    (27 )-(30)    34    0.19    0.03      0.15

Loan and Deposit Rate Margin (including Expenses)

    (28 )-(31)    35    0.06    0.04      0.01

Loan and Deposit Rate Margin

    (28 )-(32)    36    0.96    0.16      0.79

__________     

*  Deposits and Debentures include NCDs.

 

(Reference)After excluding loans to Deposit Insurance Corporation of Japan and Japanese government

Return on Loans and Bills Discounted

      37    1.26    (0.12 )    1.38

Loan and Deposit Rate Margin (including Expenses)

    (37 )-(31)    38    0.10    0.04      0.06

Loan and Deposit Rate Margin

    (37 )-(32)    39    1.00    0.15      0.84

Mizuho Trust & Banking (3 domestic accounts)

             

Return on Interest-Earning Assets

      40    1.21    (0.31 )    1.53

Return on Loans and Bills Discounted

      41    1.57    (0.20 )    1.78

Return on Securities

      42    0.67    (0.72 )    1.40

Cost of Funding

      43    0.46    (0.15 )    0.62

Cost of Deposits

      44    0.42    (0.14 )    0.56

Net Interest Margin

    (40 )-(43)    45    0.74    (0.15 )    0.90

Loan and Deposit Rate Margin

    (41 )-(44)    46    1.14    (0.06 )    1.21
__________
* Return on Loans and Bills Discounted excludes loans to financial institutions.
* 3 domestic accounts = banking accounts (domestic operations) + trust accounts with contracts indemnifying the principal
                                          amounts (loan trusts + jointly-managed money trusts).
* Deposits include NCDs.

 

3-6

Mizuho Financial Group, Inc.

 

3. Use and Source of Funds

Non-Consolidated

Aggregated Figures of MHBK and MHCB

 

     (Millions of yen, %)
     First Half of Fiscal 2009    Change     First Half of Fiscal 2008
(Total)    Average Balance    Rate    Average Balance     Rate     Average Balance    Rate

Use of Funds

    116,813,547    1.37    1,688,900      (0.43 )    115,124,646    1.80

Loans and Bills Discounted

    63,879,022    1.54    545,538      (0.50 )    63,333,483    2.05

Securities

    33,897,319    1.21    919,529      (0.28 )    32,977,789    1.49

Source of Funds

    119,772,613    0.44    3,325,872      (0.59 )    116,446,741    1.03

Deposits

    72,645,535    0.23    87,601      (0.39 )    72,557,933    0.63

NCDs

    9,584,506    0.33    (1,129,950 )    (0.57 )    10,714,457    0.91

Debentures

    2,135,847    0.62    (841,458 )    (0.00 )    2,977,306    0.63

Call Money

    14,453,888    0.45    3,636,615      (0.36 )    10,817,273    0.81

Payables under Repurchase Agreements

    5,511,285    0.30    (558,966 )    (2.18 )    6,070,252    2.49

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    8,548,320    1.69    2,719,001      (1.01 )    5,829,318    2.70
(Domestic Operations)                

Use of Funds

    97,452,945    1.12    5,808,292      (0.19 )    91,644,652    1.31

Loans and Bills Discounted

    54,090,214    1.44    1,555,338      (0.20 )    52,534,875    1.65

Securities

    27,869,261    0.68    3,211,307      (0.19 )    24,657,954    0.88

Source of Funds

    99,891,877    0.28    7,102,410      (0.18 )    92,789,466    0.46

Deposits

    62,701,764    0.16    2,390,720      (0.11 )    60,311,043    0.28

NCDs

    8,558,409    0.27    (1,207,127 )    (0.38 )    9,765,537    0.65

Debentures

    2,135,847    0.62    (841,458 )    (0.00 )    2,977,306    0.63

Call Money

    14,116,003    0.42    3,743,416      (0.22 )    10,372,586    0.65

Payables under Repurchase Agreements

    2,091,515    0.13    1,277,911      (0.47 )    813,604    0.61

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    5,137,490    0.39    2,502,567      (0.61 )    2,634,923    1.00

(International Operations)

               

Use of Funds

    21,651,118    2.39    (4,729,827 )    (1.02 )    26,380,946    3.42

Loans and Bills Discounted

    9,788,808    2.10    (1,009,799 )    (1.91 )    10,798,608    4.01

Securities

    6,028,057    3.67    (2,291,778 )    0.34      8,319,835    3.32

Source of Funds

    22,171,253    1.15    (4,386,973 )    (1.84 )    26,558,226    2.99

Deposits

    9,943,770    0.68    (2,303,119 )    (1.67 )    12,246,889    2.35

NCDs

    1,026,096    0.86    77,177      (2.74 )    948,919    3.61

Debentures

    —      —      —        —        —      —  

Call Money

    337,885    1.62    (106,801 )    (2.98 )    444,686    4.61

Payables under Repurchase Agreements

    3,419,769    0.41    (1,836,878 )    (2.37 )    5,256,648    2.79

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    3,410,829    3.64    216,433      (0.46 )    3,194,395    4.10

 

3-7

Mizuho Financial Group, Inc.

 

Mizuho Bank

 

     (Millions of yen, %)
     First Half of Fiscal 2009    Change     First Half of Fiscal 2008
(Total)    Average Balance    Rate    Average Balance     Rate     Average Balance    Rate

Use of Funds

    62,871,040    1.25    2,420,120      (0.18 )    60,450,919    1.43

Loans and Bills Discounted

    35,003,892    1.56    1,164,860      (0.26 )    33,839,032    1.82

Securities

    16,104,737    0.81    1,104,062      (0.08 )    15,000,674    0.89

Source of Funds

    64,977,708    0.25    3,214,801      (0.19 )    61,762,906    0.45

Deposits

    55,178,427    0.17    1,481,304      (0.13 )    53,697,123    0.31

NCDs

    2,004,419    0.30    10,952      (0.23 )    1,993,466    0.54

Debentures

    874,155    0.38    (79,495 )    0.07      953,651    0.31

Call Money

    1,967,726    0.09    188,586      (0.38 )    1,779,139    0.47

Payables under Repurchase Agreements

    1,140,712    0.12    1,107,147      (0.50 )    33,564    0.63

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    2,174,368    1.64    1,052,553      (1.65 )    1,121,814    3.29
(Domestic Operations)                

Use of Funds

    60,153,401    1.19    2,388,889      (0.17 )    57,764,512    1.36

Loans and Bills Discounted

    34,536,090    1.56    1,087,518      (0.25 )    33,448,572    1.81

Securities

    15,014,173    0.56    1,313,070      (0.12 )    13,701,102    0.68

Source of Funds

    62,478,194    0.19    3,312,289      (0.15 )    59,165,904    0.35

Deposits

    54,179,752    0.16    1,546,846      (0.10 )    52,632,906    0.27

NCDs

    2,002,066    0.30    11,142      (0.23 )    1,990,923    0.54

Debentures

    874,155    0.38    (79,495 )    0.07      953,651    0.31

Call Money

    1,967,726    0.09    188,586      (0.38 )    1,779,139    0.47

Payables under Repurchase Agreements

    1,140,712    0.12    1,107,147      (0.50 )    33,564    0.63

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    1,509,192    0.54    1,110,991      (1.42 )    398,200    1.96

(International Operations)

               

Use of Funds

    2,728,850    2.61    (1,091,915 )    0.32      3,820,765    2.28

Loans and Bills Discounted

    467,802    1.58    77,342      (0.71 )    390,460    2.29

Securities

    1,090,564    4.16    (209,007 )    1.05      1,299,571    3.10

Source of Funds

    2,510,725    1.62    (1,220,634 )    (0.41 )    3,731,359    2.04

Deposits

    998,675    0.56    (65,542 )    (1.50 )    1,064,217    2.07

NCDs

    2,353    0.64    (190 )    (0.17 )    2,543    0.81

Debentures

    —      —      —        —        —      —  

Call Money

    —      —      —        —        —      —  

Payables under Repurchase Agreements

    —      —      —        —        —      —  

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    665,176    4.12    (58,437 )    0.09      723,614    4.03

 

3-8

Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

 

     (Millions of yen, %)
     First Half of Fiscal 2009    Change     First Half of Fiscal 2008
(Total)    Average Balance    Rate    Average Balance     Rate     Average Balance    Rate

Use of Funds

    53,942,507    1.50    (731,219 )    (0.70 )    54,673,727    2.21

Loans and Bills Discounted

    28,875,130    1.53    (619,321 )    (0.78 )    29,494,451    2.32

Securities

    17,792,581    1.58    (184,533 )    (0.41 )    17,977,115    2.00

Source of Funds

    54,794,905    0.66    111,071      (1.02 )    54,683,834    1.69

Deposits

    17,467,107    0.44    (1,393,702 )    (1.10 )    18,860,810    1.54

NCDs

    7,580,087    0.34    (1,140,903 )    (0.65 )    8,720,990    1.00

Debentures

    1,261,692    0.79    (761,962 )    0.01      2,023,654    0.78

Call Money

    12,486,162    0.51    3,448,028      (0.37 )    9,038,133    0.88

Payables under Repurchase Agreements

    4,370,573    0.35    (1,666,114 )    (2.15 )    6,036,688    2.50

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    6,373,951    1.71    1,666,447      (0.85 )    4,707,503    2.56
(Domestic Operations)                

Use of Funds

    37,299,543    1.00    3,419,403      (0.21 )    33,880,140    1.22

Loans and Bills Discounted

    19,554,123    1.25    467,820      (0.11 )    19,086,303    1.36

Securities

    12,855,088    0.82    1,898,237      (0.30 )    10,956,851    1.12

Source of Funds

    37,413,682    0.42    3,790,120      (0.24 )    33,623,561    0.66

Deposits

    8,522,012    0.16    843,874      (0.15 )    7,678,137    0.32

NCDs

    6,556,343    0.26    (1,218,270 )    (0.41 )    7,774,614    0.68

Debentures

    1,261,692    0.79    (761,962 )    0.01      2,023,654    0.78

Call Money

    12,148,276    0.47    3,554,829      (0.20 )    8,593,446    0.68

Payables under Repurchase Agreements

    950,803    0.14    170,763      (0.46 )    780,040    0.61

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    3,628,298    0.33    1,391,575      (0.50 )    2,236,722    0.83
(International Operations)                

Use of Funds

    18,922,268    2.36    (3,637,912 )    (1.25 )    22,560,181    3.61

Loans and Bills Discounted

    9,321,006    2.12    (1,087,141 )    (1.95 )    10,408,148    4.07

Securities

    4,937,493    3.56    (2,082,770 )    0.19      7,020,263    3.36

Source of Funds

    19,660,528    1.09    (3,166,338 )    (2.05 )    22,826,867    3.15

Deposits

    8,945,095    0.70    (2,237,577 )    (1.68 )    11,182,672    2.38

NCDs

    1,023,743    0.86    77,367      (2.74 )    946,376    3.61

Debentures

    —      —      —        —        —      —  

Call Money

    337,885    1.62    (106,801 )    (2.98 )    444,686    4.61

Payables under Repurchase Agreements

    3,419,769    0.41    (1,836,878 )    (2.37 )    5,256,648    2.79

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    2,745,652    3.53    274,871      (0.60 )    2,470,781    4.13

 

3-9

Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking (Banking Account)

 

     (Millions of yen, %)
     First Half of Fiscal 2009    Change     First Half of Fiscal 2008
(Total)    Average Balance    Rate    Average Balance     Rate     Average Balance    Rate

Use of Funds

    6,072,305    1.26    390,584      (0.36 )    5,681,721    1.62

Loans and Bills Discounted

    3,562,198    1.57    128,293      (0.22 )    3,433,904    1.79

Securities

    2,020,163    0.81    544,015      (0.72 )    1,476,147    1.53

Source of Funds

    6,023,265    0.50    449,773      (0.20 )    5,573,492    0.71

Deposits

    2,758,185    0.48    20,143      (0.08 )    2,738,042    0.57

NCDs

    749,776    0.37    (18,386 )    (0.36 )    768,163    0.73

Debentures

    —      —      —        —        —      —  

Call Money

    733,257    0.24    129,805      (0.45 )    603,452    0.69

Payables under Repurchase Agreements

    —      —      —        —        —      —  

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    517,543    0.22    344,059      (0.52 )    173,483    0.74
(Domestic Operations)                

Use of Funds

    5,807,165    1.22    254,780      (0.31 )    5,552,385    1.54

Loans and Bills Discounted

    3,509,787    1.56    132,089      (0.20 )    3,377,698    1.77

Securities

    1,613,565    0.65    422,459      (0.75 )    1,191,105    1.40

Source of Funds

    5,754,200    0.51    313,606      (0.16 )    5,440,593    0.67

Deposits

    2,743,303    0.48    13,556      (0.08 )    2,729,747    0.56

NCDs

    749,776    0.37    (18,386 )    (0.36 )    768,163    0.73

Debentures

    —      —      —        —        —      —  

Call Money

    713,037    0.21    135,196      (0.36 )    577,840    0.58

Payables under Repurchase Agreements

    —      —      —        —        —      —  

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    514,454    0.21    340,970      (0.53 )    173,483    0.74
(International Operations)                

Use of Funds

    651,593    1.18    (74,894 )    (0.31 )    726,488    1.50

Loans and Bills Discounted

    52,410    2.03    (3,795 )    (1.03 )    56,206    3.07

Securities

    406,598    1.46    121,555      (0.60 )    285,042    2.07

Source of Funds

    655,519    0.47    (74,531 )    (0.45 )    730,051    0.93

Deposits

    14,881    0.54    6,587      (0.92 )    8,294    1.46

NCDs

    —      —      —        —        —      —  

Debentures

    —      —      —        —        —      —  

Call Money

    20,220    1.22    (5,391 )    (2.12 )    25,611    3.34

Payables under Repurchase Agreements

    —      —      —        —        —      —  

Bills Sold

    —      —      —        —        —      —  

Commercial Paper

    —      —      —        —        —      —  

Borrowed Money

    3,089    1.21    3,089      1.21      —      —  

 

3-10

Mizuho Financial Group, Inc.

 

4. Net Gains/Losses on Securities

Non-Consolidated

Aggregated Figures of the 3 Banks

 

     (Millions of yen)  
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Bonds

    16,354      (5,428 )    21,783   

Gains on Sales and Others

    53,527      (7,885 )    61,413   

Losses on Sales and Others

    (31,809 )    (3,058 )    (28,751 ) 

Impairment (Devaluation)

    (6,558 )    2,005      (8,563 ) 

Reversal of (Provision for) Reserve for Possible Losses on Investments

    —        —        —     

Gains (Losses) on Derivatives other than for Trading

    1,194      3,509      (2,314 ) 
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Stocks

    24,104      (18,736 )    42,841   

Gains on Sales

    67,678      370      67,307   

Losses on Sales

    (2,457 )    (1,412 )    (1,044 ) 

Impairment (Devaluation)

    (6,483 )    89,096      (95,579 ) 

Reversal of (Provision for) Reserve for Possible Losses on Investments

    (5,590 )    (89,213 )    83,623   

Gains (Losses) on Derivatives other than for Trading

    (29,043 )    (17,578 )    (11,464 ) 
Mizuho Bank       
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Bonds

    2,534      (3,337 )    5,871   

Gains on Sales and Others

    21,023      5,757      15,266   

Losses on Sales and Others

    (17,915 )    (7,699 )    (10,215 ) 

Impairment (Devaluation)

    —        —        —     

Reversal of (Provision for) Reserve for Possible Losses on Investments

    —        —        —     

Gains (Losses) on Derivatives other than for Trading

    (573 )    (1,394 )    820   
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Stocks

    (6,562 )    (52,378 )    45,816   

Gains on Sales

    19,150      (10,857 )    30,007   

Losses on Sales

    (1,308 )    (467 )    (841 ) 

Impairment (Devaluation)

    (4,528 )    62,734      (67,262 ) 

Reversal of (Provision for) Reserve for Possible Losses on Investments

    (16 )    (83,639 )    83,623   

Gains (Losses) on Derivatives other than for Trading

    (19,860 )    (20,149 )    289   

_____________

Note:    Figures for the First Half of Fiscal 2008 include gains on Reversal of Reserve for Possible Losses on Investments in subsidiaries (eliminated as an intercompany gain on a consolidated basis) (included in Extraordinary Gains).

  

      

 

3-11

Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

 

     (Millions of yen)  
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Bonds

    11,054      (1,392 )    12,447   

Gains on Sales and Others

    29,139      (12,044 )    41,183   

Losses on Sales and Others

    (12,750 )    4,394      (17,144 ) 

Impairment (Devaluation)

    (6,548 )    1,945      (8,494 ) 

Reversal of (Provision for) Reserve for Possible Losses on Investments

    —        —        —     

Gains (Losses) on Derivatives other than for Trading

    1,213      4,310      (3,096 ) 
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Stocks

    30,545      29,239      1,305   

Gains on Sales

    47,678      11,267      36,411   

Losses on Sales

    (1,093 )    (971 )    (121 ) 

Impairment (Devaluation)

    (1,328 )    21,902      (23,230 ) 

Reversal of (Provision for) Reserve for Possible Losses on Investments

    (5,573 )    (5,573 )    —     

Gains (Losses) on Derivatives other than for Trading

    (9,138 )    2,615      (11,754 ) 
Mizuho Trust & Banking       
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Bonds

    2,765      (698 )    3,464   

Gains on Sales and Others

    3,364      (1,598 )    4,963   

Losses on Sales and Others

    (1,144 )    246      (1,390 ) 

Impairment (Devaluation)

    (9 )    59      (69 ) 

Reversal of (Provision for) Reserve for Possible Losses on Investments

    —        —        —     

Gains (Losses) on Derivatives other than for Trading

    554      593      (39 ) 
     First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Net Gains (Losses) related to Stocks

    122      4,402      (4,279 ) 

Gains on Sales

    849      (39 )    888   

Losses on Sales

    (55 )    26      (82 ) 

Impairment (Devaluation)

    (626 )    4,459      (5,085 ) 

Reversal of (Provision for) Reserve for Possible Losses on Investments

    —        —        —     

Gains (Losses) on Derivatives other than for Trading

    (44 )    (44 )    —     

 

3-12

Mizuho Financial Group, Inc.

 

5. Unrealized Gains/Losses on Securities

Consolidated

(1) Other Securities (which have readily determinable fair value)

 

     (Millions of yen)
     As of September 30, 2009    As of March 31, 2009    As of September 30, 2008
     Book Value
(=Fair Value)		    Unrealized Gains/Losses    Unrealized Gains/Losses    Unrealized Gains/Losses
              Gains    Losses          Gains    Losses          Gains    Losses

Other Securities

    36,569,127    206,556      728,668    522,112    (509,625 )    393,202    902,827    175,723      1,006,677    830,953

Japanese Stocks

    2,981,748    322,408      540,826    218,418    (183,701 )    284,982    468,683    768,496      977,618    209,122

Japanese Bonds

    25,700,539    84,434      95,900    11,465    11,518      43,698    32,179    (182,493 )    3,290    185,783

Japanese Government Bonds

    24,437,217    85,360      88,089    2,729    24,001      41,624    17,622    (175,107 )    1,506    176,614

Other

    7,886,838    (200,285 )    91,942    292,228    (337,442 )    64,521    401,964    (410,279 )    25,768    436,048

 

* 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 ¥46,346 million, ¥62,770 million and ¥50,163 million, which were recognized in the statement of income for September 30, 2009, March 31, 2009 and September 30, 2008, 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 September 30, 2009, March 31, 2009 and September 30, 2008 are ¥160,210 million, ¥(572,395) million and ¥125,560 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 which do not have readily determinable fair value) as of September 30, 2009, March 31, 2009 and September 30, 2008 are ¥116,406 million, ¥(519,574) million and ¥48,718 million, respectively.

(2) Bonds Held to Maturity (which have readily determinable fair value)

 

     (Millions of yen)
     As of September 30, 2009    As of March 31, 2009    As of September 30, 2008
     Book Value    Unrealized Gains/Losses    Unrealized Gains/Losses    Unrealized Gains/Losses
                Gains    Losses          Gains    Losses          Gains    Losses

Bonds Held to Maturity

    411,171    2,928      2,928    0    1,571      1,571    —      1,893      2,133    239

Non-Consolidated

 

(1) Other Securities (which have readily determinable fair value)

 

Aggregated Figures of the 3 Banks

     (Millions of yen)
     As of September 30, 2009    As of March 31, 2009    As of September 30, 2008
     Book Value
(=Fair Value)		    Unrealized Gains/Losses    Unrealized Gains/Losses    Unrealized Gains/Losses
              Gains    Losses          Gains    Losses          Gains    Losses

Other Securities

    35,791,380    199,763      703,166    503,402    (506,515 )    373,034    879,549    122,866      954,676    831,810

Japanese Stocks

    2,932,410    288,606      515,376    226,770    (213,363 )    262,980    476,343    694,065      924,470    230,404

Japanese Bonds

    25,061,803    83,699      95,136    11,436    11,003      43,164    32,160    (182,614 )    3,147    185,762

Japanese Government Bonds

    23,843,237    84,636      87,342    2,705    23,486      41,106    17,620    (175,217 )    1,364    176,582

Other

    7,797,167    (172,542 )    92,653    265,195    (304,155 )    66,889    371,044    (388,584 )    27,058    415,642
Mizuho Bank

Other Securities

    17,005,918    43,572      180,542    136,969    (142,115 )    97,563    239,678    (96,459 )    148,076    244,535

Japanese Stocks

    736,163    19,197      102,232    83,035    (101,842 )    51,180    153,022    48,396      142,293    93,897

Japanese Bonds

    13,532,598    48,861      56,046    7,184    13,077      26,657    13,579    (83,166 )    1,361    84,527

Japanese Government Bonds

    12,683,765    51,244      51,367    123    21,593      25,958    4,364    (78,917 )    802    79,719

Other

    2,737,155    (24,486 )    22,263    46,749    (53,350 )    19,726    73,076    (61,689 )    4,421    66,110
Mizuho Corporate Bank

Other Securities

    16,986,301    117,897      452,626    334,729    (345,994 )    242,171    588,165    182,137      712,805    530,668

Japanese Stocks

    1,982,003    220,183      353,697    133,513    (120,956 )    181,579    302,535    561,422      689,111    127,688

Japanese Bonds

    10,532,750    26,933      30,324    3,390    (495 )    14,578    15,074    (66,900 )    1,380    68,280

Japanese Government Bonds

    10,205,461    25,824      27,586    1,762    3,166      13,350    10,184    (63,799 )    357    64,157

Other

    4,471,547    (129,220 )    68,604    197,824    (224,542 )    46,013    270,555    (312,384 )    22,314    334,698
Mizuho Trust & Banking

Other Securities

    1,799,161    38,292      69,997    31,704    (18,405 )    33,299    51,704    37,187      93,793    56,606

Japanese Stocks

    214,243    49,225      59,446    10,221    9,434      30,220    20,785    84,246      93,065    8,818

Japanese Bonds

    996,454    7,903      8,765    861    (1,578 )    1,928    3,506    (32,547 )    406    32,954

Japanese Government Bonds

    954,010    7,567      8,387    820    (1,273 )    1,797    3,071    (32,500 )    205    32,705

Other

    588,463    (18,836 )    1,785    20,621    (26,262 )    1,149    27,411    (14,510 )    322    14,833

 

* 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 ¥70,781 million, ¥91,450 million and ¥68,604 million, which were recognized in the statement of income for September 30, 2009, March 31, 2009 and September 30, 2008, 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 September 30, 2009, March 31, 2009 and September 30, 2008 are ¥128,981 million, ¥(597,965) million and ¥54,261 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 which do not have readily determinable fair value) as of September 30, 2009, March 31, 2009 and September 30, 2008 are as follows:

 

     (Millions of yen)  
     As of September 30, 2009     As of March 31, 2009     As of September 30, 2008  

Aggregated Figures

    104,721      (536,755 )    1,757   

Mizuho Bank

    (402 )    (190,725 )    (148,053 ) 

Mizuho Corporate Bank

    74,851      (331,657 )    118,875   

Mizuho Trust & Banking

    30,273      (14,373 )    30,934   

 

3-13

Mizuho Financial Group, Inc.

 

(2) Bonds Held to Maturity (which have readily determinable fair value)

Aggregated Figures of the 3 Banks

 

     (Millions of yen)
     As of September 30, 2009    As of March 31, 2009    As of September 30, 2008
     Book Value    Unrealized Gains/Losses    Unrealized Gains/Losses    Unrealized Gains/Losses
                Gains    Losses          Gains    Losses          Gains    Losses

Aggregated Figures

    404,528    2,914      2,914    —      1,571      1,571    —      1,893      2,133    239

Mizuho Bank

    404,528    2,914      2,914    —      1,571      1,571    —      1,893      2,133    239

Mizuho Corporate Bank

    —      —        —      —      —        —      —      —        —      —  

Mizuho Trust & Banking

    —      —        —      —      —        —      —      —        —      —  

 

(3) Investment in Subsidiaries and Affiliates (which have readily determinable fair value)

 

Aggregated Figures of the 3 Banks

 

     (Millions of yen)
     As of September 30, 2009    As of March 31, 2009    As of September 30, 2008
     Book Value    Unrealized Gains/Losses    Unrealized Gains/Losses    Unrealized Gains/Losses
                Gains    Losses          Gains    Losses          Gains    Losses

Aggregated Figures

    426,314    (32,651 )    —      32,651    (55,003 )    —      55,003    (13,215 )    9,185    22,401

Mizuho Bank

    88,274    (23,238 )    —      23,238    (36,164 )    —      36,164    (22,401 )    —      22,401

Mizuho Corporate Bank

    338,039    (9,412 )    —      9,412    (18,838 )    —      18,838    9,185      9,185    —  

Mizuho Trust & Banking

    —      —        —      —      —        —      —      —        —      —  

 

Mizuho Financial Group, Inc. (Non-Consolidated)

     (Millions of yen)

Investments in Subsidiaries and Affiliates

    137,171    224,278      224,278    —      175,028      175,028    —      387,362      387,362    —  

(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 (which have readily determinable fair value), 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 September 30, 2009     As of
March 31, 2009		     As of
September 30, 2008		  
     Unrealized Gains/Losses      
           Change from
March 31, 2009		    Change from
September 30, 2008		     Unrealized
Gains/Losses		     Unrealized
Gains/Losses		  

Other Securities

    160,210      732,605    34,649      (572,395 )    125,560   

Japanese Stocks

    322,408      506,109    (446,088 )    (183,701 )    768,496   

Japanese Bonds

    40,161      94,957    268,189      (54,795 )    (228,027 ) 

Japanese Government Bonds

    46,287      81,858    263,739      (35,571 )    (217,452 ) 

Other

    (202,359 )    131,539    212,548      (333,898 )    (414,908 ) 

 

Non-Consolidated

 

Aggregated Figures of the 3 Banks

 

            
     (Millions of yen)  
     As of September 30, 2009     As of
March 31, 2009		     As of
September 30, 2008		  
     Unrealized Gains/Losses      
           Change from
March 31, 2009		    Change from
September 30, 2008		     Unrealized
Gains/Losses		     Unrealized
Gains/Losses		  

Other Securities

    128,981      726,947    74,719      (597,965 )    54,261   

Japanese Stocks

    288,606      501,970    (405,459 )    (213,363 )    694,065   

Japanese Bonds

    39,426      94,737    267,575      (55,310 )    (228,149 ) 

Japanese Government Bonds

    45,563      81,650    263,125      (36,087 )    (217,562 ) 

Other

    (199,051 )    130,240    212,602      (329,291 )    (411,654 ) 

 

3-14

Mizuho Financial Group, Inc.

 

6. Projected Redemption Amounts for Securities

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

Non-Consolidated

 

    (Billions of yen)
    Maturity as of September 30, 2009   Change     Maturity as of March 31, 2009
    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

Aggregated Figures of the 3 Banks

                        

Japanese Bonds

   11,201.2   12,257.1   2,121.7   1,661.2   3,590.0      2,514.3      24.2      (1.7 )    7,611.1   9,742.8   2,097.5   1,663.0

Japanese Government Bonds

   10,805.8   10,584.4   1,737.6   1,065.6   3,572.0      2,430.1      106.3      (275.6 )    7,233.7   8,154.2   1,631.2   1,341.3

Japanese Local Government Bonds

   12.8   59.9   40.0   1.0   (1.9 )    26.1      8.5      (0.0 )    14.8   33.7   31.4   1.0

Japanese Corporate Bonds

   382.4   1,612.7   344.0   594.5   19.9      57.9      (90.7 )    273.9      362.5   1,554.7   434.7   320.6

Other

   1,091.8   3,511.5   984.2   1,717.5   (284.1 )    1,100.7      (10.0 )    (183.3 )    1,376.0   2,410.8   994.2   1,900.8

Mizuho Bank

                        

Japanese Bonds

   6,531.4   7,071.0   580.5   934.4   1,469.0      2,338.3      41.3      66.7      5,062.3   4,732.6   539.2   867.6

Japanese Government Bonds

   6,184.6   5,863.3   335.3   650.7   1,443.1      2,255.9      51.0      (71.4 )    4,741.4   3,607.4   284.3   722.1

Japanese Local Government Bonds

   11.4   48.5   30.2   —     (2.1 )    34.2      22.9      —        13.6   14.3   7.2   —  

Japanese Corporate Bonds

   335.3   1,159.0   214.9   283.6   28.0      48.1      (32.6 )    138.1      307.2   1,110.8   247.6   145.4

Other

   133.2   1,058.8   435.8   1,081.5   (70.7 )    225.1      (76.5 )    (160.1 )    203.9   833.6   512.4   1,241.6

Mizuho Corporate Bank

                        

Japanese Bonds

   4,370.7   5,063.4   1,087.9   583.0   2,503.2      318.3      (113.7 )    (13.4 )    1,867.4   4,745.0   1,201.6   596.4

Japanese Government Bonds

   4,333.8   4,622.1   961.6   287.8   2,510.0      304.1      (42.3 )    (150.6 )    1,823.8   4,317.9   1,004.0   438.5

Japanese Local Government Bonds

   0.3   9.0   7.2   1.0   (0.0 )    (7.4 )    (14.6 )    (0.0 )    0.3   16.4   21.8   1.0

Japanese Corporate Bonds

   36.5   432.3   119.0   294.1   (6.7 )    21.6      (56.7 )    137.3      43.2   410.6   175.7   156.8

Other

   915.4   2,047.5   429.2   605.0   (203.3 )    676.7      23.5      (14.4 )    1,118.8   1,370.8   405.6   619.5

Mizuho Trust & Banking

                        

Japanese Bonds

   299.1   122.6   453.3   143.7   (382.2 )    (142.4 )    96.6      (55.1 )    681.3   265.0   356.6   198.9

Japanese Government Bonds

   287.3   98.9   440.6   127.0   (381.1 )    (129.8 )    97.7      (53.5 )    668.5   228.8   342.9   180.6

Japanese Local Government Bonds

   1.1   2.3   2.5   —     0.3      (0.6 )    0.2      —        0.8   3.0   2.3   —  

Japanese Corporate Bonds

   10.5   21.3   10.0   16.7   (1.4 )    (11.8 )    (1.3 )    (1.5 )    12.0   33.2   11.4   18.2

Other

   43.1   405.1   119.1   30.9   (10.0 )    198.8      43.0      (8.7 )    53.2   206.3   76.1   39.6

 

3-15

Mizuho Financial Group, Inc.

 

7. Overview of Derivative Transactions Qualifying for Hedge Accounting

Non-Consolidated

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

 

    (Billions of yen)
    As of September 30, 2009   Change     As of March 31, 2009
    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

Aggregated Figures of the 3 Banks

                        

Receive Fixed / Pay Float

   4,474.9   11,840.3   3,710.3   20,025.5   (2,595.1 )    489.2      (103.9 )    (2,209.8 )    7,070.0   11,351.0   3,814.2   22,235.4

Receive Float / Pay Fixed

   1,966.3   2,201.9   1,641.2   5,809.4   (303.4 )    (844.5 )    (624.0 )    (1,772.0 )    2,269.7   3,046.5   2,265.3   7,581.5

Receive Float / Pay Float

   126.6   25.7   30.0   182.3   (52.0 )    0.0      —        (51.9 )    178.6   25.7   30.0   234.3

Receive Fixed / Pay Fixed

   —     —     —     —     —        —        —        —        —     —     —     —  
                                                       

Total

   6,567.8   14,068.0   5,381.5   26,017.4   (2,950.5 )    (355.3 )    (727.9 )    (4,033.9 )    9,518.3   14,423.3   6,109.5   30,051.3
                                                       

Mizuho Bank

                        

Receive Fixed / Pay Float

   703.5   5,750.0   447.5   6,901.1   (3,684.7 )    380.1      (163.6 )    (3,468.2 )    4,388.2   5,369.9   611.2   10,369.3

Receive Float / Pay Fixed

   —     —     246.0   246.0   —        (60.0 )    (420.9 )    (480.9 )    —     60.0   666.9   726.9

Receive Float / Pay Float

   —     —     —     —     —        —        —        —        —     —     —     —  

Receive Fixed / Pay Fixed

   —     —     —     —     —        —        —        —        —     —     —     —  
                                                       

Total

   703.5   5,750.0   693.5   7,147.1   (3,684.7 )    320.1      (584.5 )    (3,949.1 )    4,388.2   5,429.9   1,278.1   11,096.2
                                                       

Mizuho Corporate Bank

                        

Receive Fixed / Pay Float

   3,771.4   5,990.2   3,092.7   12,854.4   1,089.5      9.0      (100.2 )    998.3      2,681.8   5,981.1   3,193.0   11,856.0

Receive Float / Pay Fixed

   1,766.3   2,021.9   1,330.2   5,118.4   (403.4 )    (674.5 )    (183.1 )    (1,261.1 )    2,169.7   2,696.5   1,513.4   6,379.6

Receive Float / Pay Float

   126.6   25.7   30.0   182.3   (52.0 )    0.0      —        (51.9 )    178.6   25.7   30.0   234.3

Receive Fixed / Pay Fixed

   —     —     —     —     —        —        —        —        —     —     —     —  
                                                       

Total

   5,664.3   8,037.9   4,453.0   18,155.3   634.1      (665.4 )    (283.4 )    (314.7 )    5,030.1   8,703.4   4,736.4   18,470.1
                                                       

Mizuho Trust & Banking

                        

Receive Fixed / Pay Float

   —     100.0   170.0   270.0   —        100.0      160.0      260.0      —     —     10.0   10.0

Receive Float / Pay Fixed

   200.0   180.0   65.0   445.0   100.0      (110.0 )    (20.0 )    (30.0 )    100.0   290.0   85.0   475.0

Receive Float / Pay Float

   —     —     —     —     —        —        —        —        —     —     —     —  

Receive Fixed / Pay Fixed

   —     —     —     —     —        —        —        —        —     —     —     —  
                                                       

Total

   200.0   280.0   235.0   715.0   100.0      (10.0 )    140.0      230.0      100.0   290.0   95.0   485.0
                                                       

(Reference)

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

 

     (Billions of yen)  
     As of September 30, 2009               Change               As of March 31, 2009  
     Deferred Hedge Gains/Losses               Deferred Hedge Gains/Losses               Deferred Hedge Gains/Losses  
     Gains    Losses                    Gains     Losses                     Gains    Losses       

Aggregated Figures

    902.7    696.5    206.1            (43.5 )    (76.7 )    33.2            946.2    773.3    172.8   

Mizuho Bank

    118.3    101.1    17.1            (7.6 )    (21.6 )    14.0            126.0    122.8    3.1   

Mizuho Corporate Bank

    724.7    525.8    198.9            (41.9 )    (63.4 )    21.4            766.6    589.2    177.4   

Mizuho Trust & Banking

    59.6    69.5    (9.9 )          6.1      8.3      (2.1 )          53.4    61.1    (7.7 ) 

 

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

 

3-16

Mizuho Financial Group, Inc.

 

8. Employee Retirement Benefits

Non-Consolidated

Projected Benefit Obligations

 

          (Millions of yen)  
Aggregated Figures of the 3 Banks         First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Projected Benefit Obligation (at the beginning of the fiscal year)

    (A)    1,085,066      (13,995 )    1,099,061   

Discount Rate (%)

       2.5      —        2.5   
                     

Fair Value of Plan Assets (at the beginning of the fiscal year)

    (B)    998,511      (294,933 )    1,293,444   

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

    (C)    658,887      270,782      388,104   

Amount accumulated (amortized) during the period 

       (46,721 )    (16,555 )    (30,165 ) 

Prepaid Pension Cost (at the beginning of the fiscal year)

    (D)    583,858      (9,482 )    593,340   

Reserve for Employee Retirement Benefits (at the beginning of the fiscal year)

    (A)-(B)-(C)+(D)    11,526      673      10,852   

Mizuho Bank

          

Projected Benefit Obligation (at the beginning of the fiscal year)

    (A)    636,393      (4,835 )    641,229   

Discount Rate (%)

       2.5      —        2.5   

Fair Value of Plan Assets (at the beginning of the fiscal year)

    (B)    584,386      (174,189 )    758,575   

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

    (C)    418,393      155,345      263,047   

Amount accumulated (amortized) during the period

       (29,839 )    (9,773 )    (20,065 ) 

Prepaid Pension Cost (at the beginning of the fiscal year)

    (D)    366,386      (14,007 )    380,393   

Reserve for Employee Retirement Benefits (at the beginning of the fiscal year)

    (A)-(B)-(C)+(D)    —        —        —     

Mizuho Corporate Bank

          

Projected Benefit Obligation (at the beginning of the fiscal year)

    (A)    327,730      (7,953 )    335,684   

Discount Rate (%)

       2.5      —        2.5   
                     

Fair Value of Plan Assets (at the beginning of the fiscal year)

    (B)    311,240      (92,987 )    404,228   

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

    (C)    178,613      90,027      88,586   

Amount accumulated (amortized) during the period

       (11,892 )    (5,173 )    (6,719 ) 

Prepaid Pension Cost (at the beginning of the fiscal year)

    (D)    162,123      4,993      157,129   

Reserve for Employee Retirement Benefits (at the beginning of the fiscal year)

    (A)-(B)-(C)+(D)    —        —        —     

Mizuho Trust & Banking

          

Projected Benefit Obligation (at the beginning of the fiscal year)

    (A)    120,941      (1,206 )    122,148   

Discount Rate (%)

       2.5      —        2.5   
                     

Fair Value of Plan Assets (at the beginning of the fiscal year)

    (B)    102,884      (27,757 )    130,641   

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

    (C)    61,880      25,409      36,471   

Amount accumulated (amortized) during the period

       (4,989 )    (1,608 )    (3,380 ) 

Prepaid Pension Cost (at the beginning of the fiscal year)

    (D)    55,349      (468 )    55,817   

Reserve for Employee Retirement Benefits (at the beginning of the fiscal year)

    (A)-(B)-(C)+(D)    11,526      673      10,852   

 

3-17

Mizuho Financial Group, Inc.

 

Income (Expenses) related to Employee Retirement Benefits

 

          (Millions of yen)  
Aggregated Figures of the 3 Banks         First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Service Cost

       (8,238 )    (230 )    (8,008 ) 

Interest Cost

       (13,563 )    174      (13,738 ) 

Expected Return on Plan Assets

       6,300      (18,547 )    24,847   

Accumulation (Amortization) of Unrecognized Actuarial Differences

       (46,721 )    (16,555 )    (30,165 ) 

Other

       (2,337 )    (298 )    (2,038 ) 
                     

Total

       (64,560 )    (35,457 )    (29,102 ) 
                     

Mizuho Bank

          

Service Cost

       (5,281 )    (142 )    (5,139 ) 

Interest Cost

       (7,954 )    60      (8,015 ) 

Expected Return on Plan Assets

       1,660      (9,863 )    11,523   

Accumulation (Amortization) of Unrecognized Actuarial Differences

       (29,839 )    (9,773 )    (20,065 ) 

Other

       (1,662 )    (109 )    (1,552 ) 
                     

Total

       (43,077 )    (19,829 )    (23,248 ) 
                     

Mizuho Corporate Bank

         

Service Cost

       (1,841 )    (44 )    (1,797 ) 

Interest Cost

       (4,096 )    99      (4,196 ) 

Expected Return on Plan Assets

       3,411      (6,745 )    10,157   

Accumulation (Amortization) of Unrecognized Actuarial Differences

       (11,892 )    (5,173 )    (6,719 ) 

Other

       (537 )    (146 )    (390 ) 
                     

Total

       (14,956 )    (12,010 )    (2,945 ) 
                     

Mizuho Trust & Banking

         

Service Cost

       (1,115 )    (43 )    (1,072 ) 

Interest Cost

       (1,511 )    15      (1,526 ) 

Expected Return on Plan Assets

       1,228      (1,938 )    3,166   

Accumulation (Amortization) of Unrecognized Actuarial Differences

       (4,989 )    (1,608 )    (3,380 ) 

Other

       (137 )    (42 )    (94 ) 
                     

Total

       (6,525 )    (3,617 )    (2,908 ) 
                     
          (Millions of yen)  
Consolidated         First Half of
Fiscal 2009		     Change     First Half of
Fiscal 2008		  

Projected Benefit Obligation (at the beginning of the fiscal year)

    (A)    1,156,667      (14,605 )    1,171,273   
                     

Fair Value of Plan Assets (at the beginning of the fiscal year)

    (B)    998,778      (296,441 )    1,295,219   

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

    (C)    680,451      274,892      405,558   

Amount accumulated (amortized) during the period

       (48,100 )    (16,975 )    (31,124 ) 

Prepaid Pension Cost (at the beginning of the fiscal year)

    (D)    558,891      (6,633 )    565,524   

Reserve for Employee Retirement Benefits (at the beginning of the fiscal year)

    (A)-(B)-(C)+(D)    36,329      309      36,019   

Income (Expenses) related to Employee Retirement Benefits

       (71,310 )    (36,813 )    (34,497 ) 

 

3-18

Mizuho Financial Group, Inc.

 

9. Capital Adequacy Ratio

Consolidated

Mizuho Financial Group

BIS Standard

 

     (%, Billions of yen)  
     As of September 30, 2009        
     (Preliminary)     Change from
March 31, 2009		     As of
March 31, 2009		  

(1)    Capital Adequacy Ratio

    12.92      2.37      10.55   

 Tier 1 Capital Ratio

    8.71      2.33      6.38   

(2)    Tier 1 Capital

    5,151.1      1,348.8      3,766.3   

 Common Stock and Preferred Stock

    1,805.5      264.6      1,540.9   

 Capital Surplus

    552.1      140.8      411.3   

 Retained Earnings

    696.0      88.0      607.9   

 Less: Treasury Stock

    5.1      (1.0 )    6.2   

 Less: Dividends (estimate), etc.

    —        (131.0 )    131.0   

 Less: Unrealized Losses on Other Securities

    —        (516.0 )    516.0   

 Foreign Currency Translation Adjustments

    (93.2 )    21.5      (114.7 ) 

 Minority Interests in Consolidated Subsidiaries

    2,296.4      259.5      2,036.8   

Preferred Securities Issued by Overseas SPCs

   1,937.1      50.2      1,886.8   

 Other

    (100.5 )    (37.9 )    (62.6 ) 

(3)    Tier 2 Capital

    2,733.4      (146.4 )    2,879.9   

Tier 2 Capital Included as Qualifying Capital

   2,733.4      (60.3 )    2,793.8   

 45% of Unrealized Gains on Other Securities

    73.1      73.1      —     

 45% of Revaluation Reserve for Land

    112.1      (0.7 )    112.8   

 General Reserve for Possible Losses on Loans, etc.

    5.6      (2.2 )    7.9   

 Debt Capital, etc.

    2,542.5      (216.5 )    2,759.0   

Perpetual Subordinated Debt and Other Debt Capital

   629.6      (160.2 )    789.8   

Dated Subordinated Debt and Redeemable Preferred Stock

   1,912.8      (56.3 )    1,969.2   

(4)    Deductions for Total Risk-based Capital

    247.0      (86.1 )    333.2   

(5)    Total Risk-based Capital (2)+(3)-(4)

    7,637.5      1,410.5      6,226.9   

(6)    Risk-weighted Assets

    59,087.3      103.4      58,983.9   

 Credit Risk Assets

    53,787.3      (372.0 )    54,159.3   

On-balance-sheet Items

    44,005.5      443.9      43,561.6   

Off-balance-sheet Items

    9,781.7      (815.9 )    10,597.7   

 Market Risk Equivalent Assets

    1,384.1      41.9      1,342.1   

 Operational Risk Equivalent Assets

    3,915.8      433.4      3,482.3   

 Adjusted Floor Amount

    —        —        —     

(Reference)

       

Prime Capital Ratio *

    5.37      2.25      3.12   

_______________

       

*  Prime Capital (Tier1 Capital (2) - preferred securities - preferred stock (excluding mandatory convertible preferred stock)) divided by Risk-weighted Assets (6)

      

 

3-19

Mizuho Financial Group, Inc.

 

Mizuho Bank

Domestic Standard

 

     (%, Billions of yen)
     As of September 30, 2009      As of
March 31, 2009
     (Preliminary)    Change from
March 31, 2009		     

(1)    Capital Adequacy Ratio

    12.79    1.01       11.78

Tier 1 Capital Ratio

    7.50    0.84       6.66

(2)    Tier 1 Capital

    1,837.1    140.1       1,696.9

(3)    Tier 2 Capital

    1,355.9    (26.7 )     1,382.6

(4)    Deductions for Total Risk-based Capital

    62.1    (14.7 )     76.8

(5)    Total Risk-based Capital (2)+(3)-(4)

    3,130.9    128.2       3,002.7

(6)    Risk-weighted Assets

    24,472.1    (1,006.2 )     25,478.3

Mizuho Corporate Bank

         

BIS Standard

         

(1)    Capital Adequacy Ratio

    14.53    2.64       11.89

Tier 1 Capital Ratio

    11.44    2.96       8.48

(2)    Tier 1 Capital

    3,784.5    1,086.7       2,697.8

(3)    Tier 2 Capital

    1,205.3    (139.9 )     1,345.3

(4)    Deductions for Total Risk-based Capital

    184.3    (77.0 )     261.3

(5)    Total Risk-based Capital (2)+(3)-(4)

    4,805.6    1,023.7       3,781.8

(6)    Risk-weighted Assets

    33,072.0    1,281.1       31,790.8

Mizuho Trust & Banking

         

BIS Standard

         

(1)    Capital Adequacy Ratio

    14.06    0.67       13.39

Tier 1 Capital Ratio

    8.88    0.67       8.21

(2)    Tier 1 Capital

    270.9    19.1       251.8

(3)    Tier 2 Capital

    163.7    0.3       163.3

(4)    Deductions for Total Risk-based Capital

    5.7    1.0       4.6

(5)    Total Risk-based Capital (2)+(3)-(4)

    428.8    18.4       410.4

(6)    Risk-weighted Assets

    3,048.4    (16.4 )     3,064.9

(Reference)

         

Mizuho Bank

         

BIS  Standard

         

(1)    Capital Adequacy Ratio

    12.76    2.20       10.56

Tier 1 Capital Ratio

    7.46    1.64       5.82

(2)    Tier 1 Capital

    1,837.1    328.4       1,508.7

(3)    Tier 2 Capital

    1,366.9    65.4       1,301.4

(4)    Deductions for Total Risk-based Capital

    62.2    (12.1 )     74.4

(5)    Total Risk-based Capital (2)+(3)-(4)

    3,141.8    406.1       2,735.7

(6)    Risk-weighted Assets

    24,604.0    (1,287.4 )     25,891.5

 

3-20

Mizuho Financial Group, Inc.

 

II. REVIEW OF CREDITS

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

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

n 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 September 30, 2009     As of March 31, 2009    As of September 30, 2008
          %    Change from
March 31,
2009		     %     Change from
September 30,
2008		     %          %         %

Loans to Bankrupt Obligors

    102,033    0.15    (10,164 )    (0.00 )    29,961      0.05      112,197    0.15    72,072    0.10

Non-Accrual Delinquent Loans

    834,926    1.29    134,567      0.30      315,007      0.52      700,358    0.99    519,918    0.76

Loans Past Due for 3 Months or More

    18,373    0.02    (390 )    0.00      10,091      0.01      18,764    0.02    8,282    0.01

Restructured Loans

    428,664    0.66    (51,454 )    (0.01 )    (97,319 )    (0.11 )    480,118    0.68    525,983    0.77
                                                     

Total

    1,383,997    2.15    72,558      0.29      257,741      0.48      1,311,439    1.85    1,126,256    1.66
                                                     

Total Loans

    64,267,283    100.00    (6,252,940 )      (3,323,415 )      70,520,224    100.00    67,590,699    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

    498,910       33,983        80,035        464,927       418,875   

 

Trust Account

      
     As of September 30, 2009     As of March 31, 2009    As of September 30, 2008
          %    Change from
March 31,
2009		     %     Change from
September 30,
2008		     %          %         %

Loans to Bankrupt Obligors

    —      —      —        —        —        —        —      —      —      —  

Non-Accrual Delinquent Loans

    3,122    10.05    (14 )    0.66      (25 )    1.34      3,136    9.38    3,147    8.70

Loans Past Due for 3 Months or More

    —      —      —        —        —        —        —      —      —      —  

Restructured Loans

    —      —      —        —        —        —        —      —      —      —  
                                                     

Total

    3,122    10.05    (14 )    0.66      (25 )    1.34      3,136    9.38    3,147    8.70
                                                     

Total Loans

    31,051    100.00    (2,362 )      (5,096 )      33,414    100.00    36,148    100.00
                                             

 

Consolidated + Trust Account

      
     As of September 30, 2009     As of March 31, 2009    As of September 30, 2008
          %    Change from
March 31,
2009		     %     Change from
September 30,
2008		     %          %         %

Loans to Bankrupt Obligors

    102,033    0.15    (10,164 )    (0.00 )    29,961      0.05      112,197    0.15    72,072    0.10

Non-Accrual Delinquent Loans

    838,048    1.30    134,553      0.30      314,982      0.52      703,495    0.99    523,065    0.77

Loans Past Due for 3 Months or More

    18,373    0.02    (390 )    0.00      10,091      0.01      18,764    0.02    8,282    0.01

Restructured Loans

    428,664    0.66    (51,454 )    (0.01 )    (97,319 )    (0.11 )    480,118    0.68    525,983    0.77
                                                     

Total

    1,387,120    2.15    72,544      0.29      257,715      0.48      1,314,575    1.86    1,129,404    1.67
                                                     

Total Loans

    64,298,335    100.00    (6,255,303 )      (3,328,512 )      70,553,638    100.00    67,626,848    100.00
                                             

 

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

 

3-21

Mizuho Financial Group, Inc.

 

Non-Consolidated

Aggregated Figures of the 3 Banks

(Banking Account + Trust Account)

 

     (Millions of yen, %)
     As of September 30, 2009     As of March 31, 2009    As of September 30, 2008
          %    Change from
March 31,
2009		     %     Change from
September
30, 2008		     %          %         %

Loans to Bankrupt Obligors

    99,050    0.15    (9,702 )    (0.00 )    30,943      0.05      108,753    0.15    68,107    0.10

Non-Accrual Delinquent Loans

    818,012    1.27    134,777      0.30      312,001      0.52      683,235    0.96    506,011    0.75

Loans Past Due for 3 Months or More

    18,373    0.02    (390 )    0.00      10,261      0.01      18,764    0.02    8,112    0.01

Restructured Loans

    400,081    0.62    (58,007 )    (0.02 )    (97,531 )    (0.11 )    458,088    0.64    497,613    0.73
                                                     

Total

    1,335,518    2.07    66,676      0.27      255,674      0.47      1,268,841    1.79    1,079,844    1.60
                                                     

Total Loans

    64,306,708    100.00    (6,204,297 )      (3,107,123 )      70,511,005    100.00    67,413,831    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

    459,130       24,824        74,957        434,305       384,172   
Mizuho Bank

Loans to Bankrupt Obligors

    68,141    0.20    (14,880 )    (0.01 )    21,164      0.06      83,022    0.22    46,977    0.13

Non-Accrual Delinquent Loans

    511,295    1.53    (2,433 )    0.15      86,114      0.28      513,729    1.38    425,181    1.25

Loans Past Due for 3 Months or More

    17,735    0.05    4,221      0.01      9,987      0.03      13,513    0.03    7,748    0.02

Restructured Loans

    232,554    0.69    7,203      0.09      (54,951 )    (0.14 )    225,350    0.60    287,506    0.84
                                                     

Total

    829,727    2.49    (5,889 )    0.24      62,314      0.23      835,616    2.25    767,413    2.25
                                                     

Total Loans

    33,305,979    100.00    (3,820,633 )      (698,555 )      37,126,612    100.00    34,004,534    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

    285,007       8,193        64,344        276,813       220,662   
Mizuho Corporate Bank

Loans to Bankrupt Obligors

    20,828    0.07    13,021      0.05      5,240      0.02      7,807    0.02    15,588    0.05

Non-Accrual Delinquent Loans

    269,665    0.98    121,364      0.49      208,726      0.78      148,301    0.49    60,938    0.20

Loans Past Due for 3 Months or More

    —      —      (4,605 )    (0.01 )    —        —        4,605    0.01    —      —  

Restructured Loans

    148,511    0.54    (74,537 )    (0.20 )    (52,867 )    (0.12 )    223,049    0.74    201,378    0.67
                                                     

Total

    439,005    1.60    55,241      0.32      161,100      0.67      383,764    1.28    277,905    0.92
                                                     

Total Loans

    27,352,921    100.00    (2,558,466 )      (2,575,740 )      29,911,387    100.00    29,928,662    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

    152,351       13,473        6,554        138,878       145,796   
Mizuho Trust & Banking
(Banking Account)                          

Loans to Bankrupt Obligors

    10,079    0.27    (7,843 )    (0.24 )    4,538      0.11      17,923    0.52    5,541    0.16

Non-Accrual Delinquent Loans

    33,929    0.93    15,861      0.41      17,185      0.45      18,068    0.52    16,744    0.48

Loans Past Due for 3 Months or More

    638    0.01    (6 )    (0.00 )    273      0.00      644    0.01    364    0.01

Restructured Loans

    19,015    0.52    9,327      0.24      10,287      0.27      9,688    0.28    8,727    0.25
                                                     

Total

    63,663    1.76    17,338      0.41      32,284      0.84      46,324    1.34    31,378    0.91
                                                     

Total Loans

    3,616,756    100.00    177,164        172,269        3,439,591    100.00    3,444,486    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

    21,771       3,156        4,058        18,614       17,713   
(Trust Account)

Loans to Bankrupt Obligors

    —      —      —        —        —        —        —      —      —      —  

Non-Accrual Delinquent Loans

    3,122    10.05    (14 )    0.66      (25 )    1.34      3,136    9.38    3,147    8.70

Loans Past Due for 3 Months or More

    —      —      —        —        —        —        —      —      —      —  

Restructured Loans

    —      —      —        —        —        —        —      —      —      —  
                                                     

Total

    3,122    10.05    (14 )    0.66      (25 )    1.34      3,136    9.38    3,147    8.70
                                                     

Total Loans

    31,051    100.00    (2,362 )      (5,096 )      33,414    100.00    36,148    100.00
                                             

 

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

 

3-22

Mizuho Financial Group, Inc.

 

2. Status of Reserves for Possible Losses on Loans

Consolidated

 

     (Millions of yen)
     As of September 30, 2009    As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		      

Reserves for Possible Losses on Loans

    942,063    52,484      254,362    889,579    687,701

General Reserve for Possible Losses on Loans

    584,565    1,270      100,652    583,295    483,913

Specific Reserve for Possible Losses on Loans

    357,082    51,387      153,319    305,694    203,763

Reserve for Possible Losses on Loans to Restructuring Countries

    415    (173 )    390    589    24

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

    577,944    37,944      109,426    540,000    468,518
Non-Consolidated              
Aggregated Figures of the 3 Banks   
     (Millions of yen)
     As of September 30, 2009    As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		      

Reserves for Possible Losses on Loans

    837,655    18,063      247,349    819,592    590,306

General Reserve for Possible Losses on Loans

    553,725    (25,502 )    101,096    579,227    452,629

Specific Reserve for Possible Losses on Loans

    283,514    43,739      145,862    239,774    137,652

Reserve for Possible Losses on Loans to Restructuring Countries

    415    (173 )    390    589    24

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

    536,404    28,857      104,019    507,546    432,384
Mizuho Bank

Reserves for Possible Losses on Loans

    464,940    639      75,608    464,301    389,332

General Reserve for Possible Losses on Loans

    332,385    (2,368 )    37,149    334,753    295,236

Specific Reserve for Possible Losses on Loans

    132,555    3,008      38,458    129,547    94,096

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

    345,376    12,312      93,434    333,064    251,942
Mizuho Corporate Bank              

Reserves for Possible Losses on Loans

    345,566    14,614      164,718    330,952    180,848

General Reserve for Possible Losses on Loans

    202,347    (24,347 )    61,549    226,694    140,797

Specific Reserve for Possible Losses on Loans

    142,804    39,134      102,777    103,669    40,026

Reserve for Possible Losses on Loans to Restructuring Countries

    415    (173 )    390    589    24

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

    165,713    13,206      6,918    152,507    158,795
Mizuho Trust & Banking              

Reserves for Possible Losses on Loans

    27,148    2,809      7,023    24,338    20,124

General Reserve for Possible Losses on Loans

    18,993    1,213      2,397    17,780    16,595

Specific Reserve for Possible Losses on Loans

    8,154    1,596      4,626    6,558    3,528

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

    25,313    3,338      3,666    21,975    21,647

 

* Reserve for Indemnification of Impairment and Reserve for Posssible Losses on Entrusted Loans (¥336 million, ¥407 million and ¥527 million for September 30, 2009, March 31, 2009, and September 30, 2008, respectively) are not included in the above figures for Trust Account.

 

3-23

Mizuho Financial Group, Inc.

 

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

Consolidated

 

     (%)
     As of September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		       

Mizuho Financial Group

    68.06    0.23      7.00      67.83    61.06

_______________

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

 

Non-Consolidated

 

             
     (%)
     As of September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		       

Total

    62.86    (1.88 )    8.04      64.75    54.82

Mizuho Bank

    56.03    0.47      5.30      55.56    50.73

Mizuho Corporate Bank

    78.71    (7.52 )    13.64      86.23    65.07

Mizuho Trust & Banking (Banking Account)

    42.64    (9.89 )    (21.49 )    52.53    64.13

 

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

 

3-24

Mizuho Financial Group, Inc.

 

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

Consolidated

 

     (Millions of yen)
     As of September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		       

Claims against Bankrupt and Substantially Bankrupt Obligors

    297,974    (22,060 )    72,327      320,035    225,646

Claims with Collection Risk

    739,453    138,567      301,813      600,886    437,639

Claims for Special Attention

    447,265    (52,725 )    (87,110 )    499,991    534,376
                          

Total

    1,484,693    63,780      287,031      1,420,912    1,197,662
                          

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

    573,602    37,666      108,812      535,935    464,790
Trust Account             
     As of September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		       

Claims against Bankrupt and Substantially Bankrupt Obligors

    —      (6 )    (6 )    6    6

Claims with Collection Risk

    3,122    (8 )    (18 )    3,130    3,141

Claims for Special Attention

    —      —        —        —      —  
                          

Total

    3,122    (14 )    (25 )    3,136    3,147
                          
Consolidated + Trust Account             
     As of September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		       

Claims against Bankrupt and Substantially Bankrupt Obligors

    297,974    (22,066 )    72,321      320,041    225,652

Claims with Collection Risk

    742,575    138,558      301,794      604,016    440,780

Claims for Special Attention

    447,265    (52,725 )    (87,110 )    499,991    534,376
                          

Total

    1,487,815    63,766      287,005      1,424,049    1,200,809
                          

 

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

 

3-25

Mizuho Financial Group, Inc.

 

Non-Consolidated

Aggregated Figures of the 3 Banks

(Banking Account + Trust Account)

 

     (Millions of yen, %)
     As of September 30, 2009     As of March 31, 2009    As of September 30, 2008
           %    Change from
March 31,
2009		     %     Change from
September 30,
2008		     %          %         %

Claims against Bankrupt and Substantially Bankrupt Obligors

    278,758    0.39    (30,037 )    (0.00 )    73,454      0.12      308,796    0.39    205,304    0.26

Claims with Collection Risk

    733,767    1.03    135,730      0.26      299,038      0.46      598,036    0.76    434,729    0.57

Claims for Special Attention

    418,682    0.58    (59,278 )    (0.02 )    (87,153 )    (0.07 )    477,960    0.61    505,835    0.66

Sub-total

   1,431,208    2.01    46,415      0.24      285,339      0.51      1,384,793    1.77    1,145,869    1.50

Normal Claims

    69,561,244    97.98    (7,206,416 )    (0.24 )    (5,398,212 )    (0.51 )    76,767,661    98.22    74,959,457    98.49
                                             

Total

   70,992,453    100.00    (7,160,001 )      (5,112,873 )      78,152,454    100.00    76,105,326    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

    532,921       28,568        103,705        504,353       429,216   
Mizuho Bank                          

Claims against Bankrupt and Substantially Bankrupt Obligors

    200,115    0.56    (19,306 )    0.00      51,348      0.15      219,421    0.55    148,766    0.40

Claims with Collection Risk

    420,305    1.17    5,600      0.13      71,526      0.22      414,705    1.04    348,779    0.94

Claims for Special Attention

    250,289    0.70    11,425      0.10      (44,964 )    (0.10 )    238,864    0.60    295,254    0.80

Sub-total

   870,711    2.44    (2,280 )    0.24      77,911      0.28      872,991    2.19    792,800    2.15

Normal Claims

    34,799,375    97.55    (4,041,473 )    (0.24 )    (1,149,789 )    (0.28 )    38,840,848    97.80    35,949,165    97.84
                                             

Total

   35,670,087    100.00    (4,043,753 )      (1,071,878 )      39,713,840    100.00    36,741,965    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

    345,267       12,205        93,328        333,061       251,938   
Mizuho Corporate Bank                  

Claims against Bankrupt and Substantially Bankrupt Obligors

    33,887    0.10    1,260      0.01      12,090      0.04      32,626    0.09    21,796    0.06

Claims with Collection Risk

    283,139    0.89    109,248      0.39      215,557      0.70      173,890    0.49    67,581    0.18

Claims for Special Attention

    148,511    0.47    (79,143 )    (0.18 )    (52,867 )    (0.09 )    227,655    0.65    201,378    0.56

Sub-total

   465,538    1.47    31,365      0.22      174,781      0.66      434,173    1.24    290,757    0.81

Normal Claims

    31,097,877    98.52    (3,323,792 )    (0.22 )    (4,379,532 )    (0.66 )    34,421,669    98.75    35,477,409    99.18
                                             

Total

   31,563,415    100.00    (3,292,427 )      (4,204,750 )      34,855,842    100.00    35,768,166    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

    165,703       13,206        6,920        152,497       158,782   
Mizuho Trust & Banking                    
(Banking Account)                    

Claims against Bankrupt and Substantially Bankrupt Obligors

    44,755    1.20    (11,985 )    (0.39 )    10,021      0.22      56,741    1.59    34,734    0.97

Claims with Collection Risk

    27,199    0.72    20,889      0.55      11,972      0.30      6,310    0.17    15,227    0.42

Claims for Special Attention

    19,880    0.53    8,440      0.21      10,678      0.27      11,440    0.32    9,202    0.25

Sub-total

   91,836    2.46    17,344      0.36      32,671      0.80      74,492    2.09    59,164    1.66

Normal Claims

    3,636,062    97.53    161,197      (0.36 )    136,180      (0.80 )    3,474,864    97.90    3,499,881    98.33
                                             

Total

   3,727,899    100.00    178,542        168,852        3,549,356    100.00    3,559,046    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

    21,950       3,156        3,455        18,794       18,494   
(Trust Account)                          

Claims against Bankrupt and Substantially Bankrupt Obligors

    —      —      (6 )    (0.01 )    (6 )    (0.01 )    6    0.01    6    0.01

Claims with Collection Risk

    3,122    10.05    (8 )    0.68      (18 )    1.36      3,130    9.36    3,141    8.68

Claims for Special Attention

    —      —      —        —        —        —        —      —      —      —  

Sub-total

   3,122    10.05    (14 )    0.66      (25 )    1.34      3,136    9.38    3,147    8.70

Normal Claims

    27,929    89.94    (2,348 )    (0.66 )    (5,071 )    (1.34 )    30,277    90.61    33,001    91.29
                                             

Total

   31,051    100.00    (2,362 )      (5,096 )      33,414    100.00    36,148    100.00
                                             

 

 

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

 

3-26

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 September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
           Change from
March 31,
2009		     Change from
September 30,
2008		       

Claims against Bankrupt and Substantially Bankrupt Obligors

    278.7    (30.0 )    73.4      308.7    205.2

Collateral, Guarantees, and equivalent

    251.3    (28.4 )    68.2      279.8    183.1

Reserve for Possible Losses

    27.4    (1.5 )    5.2      28.9    22.1

Claims with Collection Risk

    730.6    135.7      299.0      594.9    431.5

Collateral, Guarantees, and equivalent

    329.6    69.5      88.6      260.1    240.9

Reserve for Possible Losses

    261.4    45.1      137.4      216.2    123.9

Claims for Special Attention

    418.6    (59.2 )    (87.1 )    477.9    505.8

Collateral, Guarantees, and equivalent

    104.4    (8.4 )    (36.6 )    112.8    141.0

Reserve for Possible Losses

    98.8    (20.5 )    (0.2 )    119.4    99.1
                          

Total

   1,428.0    46.4      285.3      1,381.6    1,142.7

Collateral, Guarantees, and equivalent

    685.3    32.5      120.2      652.7    565.0

Reserve for Possible Losses

    387.7    23.0      142.4      364.6    245.3
                          

Mizuho Bank

             

Claims against Bankrupt and Substantially Bankrupt Obligors

    200.1    (19.3 )    51.3      219.4    148.7

Collateral, Guarantees, and equivalent

    191.9    (18.6 )    50.0      210.6    141.8

Reserve for Possible Losses

    8.1    (0.6 )    1.2      8.8    6.9

Claims with Collection Risk

    420.3    5.6      71.5      414.7    348.7

Collateral, Guarantees, and equivalent

    226.6    (0.9 )    14.1      227.5    212.4

Reserve for Possible Losses

    124.3    3.6      37.1      120.7    87.1

Claims for Special Attention

    250.2    11.4      (44.9 )    238.8    295.2

Collateral, Guarantees, and equivalent

    72.0    11.7      (21.1 )    60.2    93.1

Reserve for Possible Losses

    60.8    10.0      10.9      50.8    49.9
                          

Total

   870.7    (2.2 )    77.9      872.9    792.8

Collateral, Guarantees, and equivalent

    490.5    (7.8 )    43.0      498.4    447.4

Reserve for Possible Losses

    193.3    13.0      49.3      180.3    144.0
                          

Mizuho Corporate Bank

             

Claims against Bankrupt and Substantially Bankrupt Obligors

    33.8    1.2      12.0      32.6    21.7

Collateral, Guarantees, and equivalent

    28.2    (0.8 )    9.4      29.0    18.7

Reserve for Possible Losses

    5.6    2.1      2.5      3.5    3.0

Claims with Collection Risk

    283.1    109.2      215.5      173.8    67.5

Collateral, Guarantees, and equivalent

    85.2    56.6      67.6      28.5    17.6

Reserve for Possible Losses

    131.0    36.9      97.0      94.0    33.9

Claims for Special Attention

    148.5    (79.1 )    (52.8 )    227.6    201.3

Collateral, Guarantees, and equivalent

    24.1    (22.7 )    (20.0 )    46.8    44.1

Reserve for Possible Losses

    34.6    (32.0 )    (13.2 )    66.6    47.8
                          

Total

   465.5    31.3      174.7      434.1    290.7

Collateral, Guarantees, and equivalent

    137.5    33.0      57.0      104.4    80.5

Reserve for Possible Losses

    171.3    7.0      86.4      164.3    84.9
                          

Mizuho Trust & Banking

             

(Banking Account)

             

Claims against Bankrupt and Substantially Bankrupt Obligors

    44.7    (11.9 )    10.0      56.7    34.7

Collateral, Guarantees, and equivalent

    31.1    (8.9 )    8.6      40.1    22.5

Reserve for Possible Losses

    13.5    (3.0 )    1.4      16.6    12.1

Claims with Collection Risk

    27.1    20.8      11.9      6.3    15.2

Collateral, Guarantees, and equivalent

    17.7    13.7      6.9      3.9    10.8

Reserve for Possible Losses

    6.0    4.6      3.2      1.4    2.7

Claims for Special Attention

    19.8    8.4      10.6      11.4    9.2

Collateral, Guarantees, and equivalent

    8.2    2.5      4.6      5.7    3.6

Reserve for Possible Losses

    3.4    1.4      1.9      1.9    1.4
                          

Total

   91.8    17.3      32.6      74.4    59.1

Collateral, Guarantees, and equivalent

    57.2    7.3      20.1      49.8    37.1

Reserve for Possible Losses

    23.0    3.0      6.6      20.0    16.3
                          

(Reference) Trust Account

             

Claims against Bankrupt and Substantially Bankrupt Obligors

    —      (0.0 )    (0.0 )    0.0    0.0

Collateral, Guarantees, and equivalent

    —      (0.0 )    (0.0 )    0.0    0.0

Claims with Collection Risk

    3.1    (0.0 )    (0.0 )    3.1    3.1

Collateral, Guarantees, and equivalent

    3.1    (0.0 )    (0.0 )    3.1    3.1

Claims for Special Attention

    —      —        —        —      —  

Collateral, Guarantees, and equivalent

    —      —        —        —      —  
                          

Total

   3.1    (0.0 )    (0.0 )    3.1    3.1

Collateral, Guarantees, and equivalent

    3.1    (0.0 )    (0.0 )    3.1    3.1
                          

 

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

 

3-27

Mizuho Financial Group, Inc.

 

(2) Coverage Ratio

Aggregated Figures of the 3 Banks (Banking Account)

 

     (Billions of yen)
     As of September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		       

Coverage Amount

    1,073.1    55.6      262.7      1,017.4    810.3

Reserves for Possible Losses on Loans

    387.7    23.0      142.4      364.6    245.3

Collateral, Guarantees, and equivalent

    685.3    32.5      120.2      652.7    565.0
                           (%)

Coverage Ratio

    75.1    1.5      4.2      73.6    70.9

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    80.8    0.8      (3.6 )    80.0    84.5

Claims for Special Attention

    48.5    (0.0 )    1.0      48.6    47.4

Claims against Special Attention Obligors

    50.0    (0.9 )    1.8      51.0    48.2
Reserve Ratio against Non-collateralized Claims                          (%)

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    65.1    0.5      0.1      64.5    65.0

Claims for Special Attention

    31.4    (1.2 )    4.2      32.7    27.1

Claims against Special Attention Obligors

    33.0    (0.5 )    5.9      33.5    27.0
(Reference) Reserve Ratio                          (%)

Claims against Special Attention Obligors

    24.64    (0.06 )    5.44      24.71    19.20

Claims against Watch Obligors excluding Special Attention Obligors

    4.74    (0.08 )    (1.37 )    4.83    6.11

Claims against Normal Obligors

    0.23    0.01      0.10      0.21    0.13
Mizuho Bank                          (Billions of yen)

Coverage Amount

    683.9    5.1      92.4      678.7    591.4

Reserves for Possible Losses on Loans

    193.3    13.0      49.3      180.3    144.0

Collateral, Guarantees, and equivalent

    490.5    (7.8 )    43.0      498.4    447.4
                           (%)

Coverage Ratio

    78.5    0.7      3.9      77.7    74.6

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    83.4    (0.4 )    (2.4 )    83.9    85.9

Claims for Special Attention

    53.0    6.6      4.6      46.4    48.4

Claims against Special Attention Obligors

    53.8    3.8      6.0      50.0    47.8
Reserve Ratio against Non-collateralized Claims                          (%)

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    64.1    (0.3 )    0.2      64.5    63.9

Claims for Special Attention

    34.1    5.6      9.4      28.4    24.7

Claims against Special Attention Obligors

    34.3    4.9      9.6      29.4    24.7
(Reference) Reserve Ratio                          (%)

Claims against Special Attention Obligors

    24.17    3.30      7.00      20.87    17.16

Claims against Watch Obligors excluding Special Attention Obligors

    4.94    (0.11 )    (1.42 )    5.06    6.36

Claims against Normal Obligors

    0.27    (0.00 )    0.07      0.27    0.19
Mizuho Corporate Bank                          (Billions of yen)

Coverage Amount

    308.8    40.0      143.4      268.8    165.4

Reserves for Possible Losses on Loans

    171.3    7.0      86.4      164.3    84.9

Collateral, Guarantees, and equivalent

    137.5    33.0      57.0      104.4    80.5
                           (%)

Coverage Ratio

    66.3    4.4      9.4      61.9    56.8

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    76.3    5.8      0.0      70.5    76.3

Claims for Special Attention

    39.5    (10.3 )    (6.1 )    49.8    45.6

Claims against Special Attention Obligors

    43.7    (7.5 )    (4.9 )    51.2    48.6
Reserve Ratio against Non-collateralized Claims                          (%)

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    66.2    1.4      (1.8 )    64.7    68.0

Claims for Special Attention

    27.8    (9.0 )    (2.6 )    36.8    30.4

Claims against Special Attention Obligors

    31.8    (6.2 )    0.6      38.0    31.1
(Reference) Reserve Ratio                          (%)

Claims against Special Attention Obligors

    26.26    (3.71 )    3.02      29.98    23.24

Claims against Watch Obligors excluding Special Attention Obligors

    4.45    (0.02 )    (1.20 )    4.47    5.66

Claims against Normal Obligors

    0.18    0.03      0.11      0.15    0.06

 

3-28

Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking (Banking Account)

 

     (Billions of yen)
     As of September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		       

Coverage Amount

    80.3    10.4      26.8      69.9    53.4

Reserves for Possible Losses on Loans

    23.0    3.0      6.6      20.0    16.3

Collateral, Guarantees, and equivalent

    57.2    7.3      20.1      49.8    37.1
                           (%)

Coverage Ratio

    87.4    (6.3 )    (2.9 )    93.8    90.4

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    87.6    1.7      (1.8 )    85.8    89.4

Claims for Special Attention

    59.0    (8.7 )    3.2      67.7    55.8

Claims against Special Attention Obligors

    53.0    (18.2 )    (4.6 )    71.3    57.6
Reserve Ratio against Non-collateralized Claims                          (%)

Claims against Bankrupt and Substantially Bankrupt Obligors

    100.0    —        —        100.0    100.0

Claims with Collection Risk

    64.1    2.6      0.8      61.5    63.3

Claims for Special Attention

    29.6    (5.1 )    3.5      34.8    26.1

Claims against Special Attention Obligors

    27.0    (10.5 )    0.0      37.5    26.9
(Reference) Reserve Ratio                          (%)

Claims against Special Attention Obligors

    17.37    0.14      1.73      17.23    15.63

Claims against Watch Obligors excluding Special Attention Obligors

    4.58    (0.48 )    (1.08 )    5.07    5.67

Claims against Normal Obligors

    0.21    (0.00 )    0.09      0.22    0.11

 

3-29

Mizuho Financial Group, Inc.

 

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

Non-Consolidated

Aggregated Figures of the 3 Banks (Banking Account)

LOGO

 

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.

 

3-30

Mizuho Financial Group, Inc.

 

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 (including past figures for their former revitalization subsidiaries) (Banking Account + Trust Account)

 

    (Billions of yen)  
    Fiscal 2006   Fiscal 2007   Fiscal 2008   Fiscal 2009  
    Up to
First Half of
Fiscal 2006		   As of
March 31,
2007		   As of
September 30,
2007		   As of
March 31,
2008		   As of
September 30,
2008		   As of
March 31,
2009		   As of September 30, 2009  
                Mizuho
Bank		   Mizuho
Corporate
Bank		   Mizuho
Trust &
Banking		   Aggregated
Figures of
the 3 Banks		   Change from
March 31,
2009		  

Claims against Bankrupt and Substantially Bankrupt Obligors

   2,383.1   103.1   90.7   71.3   63.4   62.4   22.8   5.1   27.7   55.8   (6.5 ) 

Claims with Collection Risk

   7,585.5   212.2   159.2   103.7   88.6   75.8   47.7   12.4   4.1   64.4   (11.4 ) 

Amount Categorized as above up to First Half of Fiscal 2006

   9,968.7   315.4   249.9   175.1   152.1   138.2   70.6   17.6   31.9   120.2   (17.9 ) 

of which the amount which was in the process of being removed from the balance sheet

   1,047.4   59.7   46.5   32.1   25.0   23.2   17.5   2.7   0.1   20.3   (2.8 ) 

Claims against Bankrupt and Substantially Bankrupt Obligors

     19.1   12.4   8.8   7.3   6.5   5.6   —     0.1   5.8   (0.6 ) 

Claims with Collection Risk

     386.1   65.3   39.9   29.0   20.6   17.8   —     0.2   18.1   (2.4 ) 

Amount Newly Categorized as above during the Second Half of Fiscal 2006

     405.3   77.8   48.8   36.3   27.1   23.5   —     0.4   23.9   (3.1 ) 

of which the amount which was in the process of being removed from the balance sheet

     17.9   12.4   8.8   7.2   5.6   4.9   —     0.1   5.1   (0.5 ) 

Claims against Bankrupt and Substantially Bankrupt Obligors

       57.9   22.2   17.7   11.1   9.8   —     0.0   9.8   (1.2 ) 

Claims with Collection Risk

       374.3   69.6   45.1   36.4   27.8   —     0.2   28.1   (8.3 ) 

Amount Newly Categorized as above during the First Half of Fiscal 2007

       432.2   91.9   62.9   47.5   37.6   —     0.2   37.9   (9.6 ) 

of which the amount which was in the process of being removed from the balance sheet

       26.4   17.7   15.2   9.9   8.9   —     0.0   8.9   (0.9 ) 

Claims against Bankrupt and Substantially Bankrupt Obligors

         34.7   36.2   34.3   26.9   3.5   0.0   30.5   (3.8 ) 

Claims with Collection Risk

         162.1   82.1   42.8   22.3   4.9   0.5   27.8   (14.9 ) 

Amount Newly Categorized as above during the Second Half of Fiscal 2007

         196.9   118.3   77.1   49.2   8.5   0.6   58.3   (18.8 ) 

of which the amount which was in the process of being removed from the balance sheet

         31.2   31.1   31.5   23.3   3.5   0.0   26.9   (4.5 ) 

Claims against Bankrupt and Substantially Bankrupt Obligors

           80.4   67.5   43.7   0.0   6.9   50.7   (16.7 ) 

Claims with Collection Risk

           189.7   85.3   42.7   21.4   0.8   65.0   (20.2 ) 

Amount Newly Categorized as above during the First Half of Fiscal 2008

           270.1   152.9   86.4   21.5   7.8   115.8   (37.0 ) 

of which the amount which was in the process of being removed from the balance sheet

           75.7   61.3   41.0   0.0   3.7   44.8   (16.5 ) 

Claims against Bankrupt and Substantially Bankrupt Obligors

             126.8   56.5   18.9   6.7   82.2   (44.5 ) 

Claims with Collection Risk

             336.9   119.0   61.2   4.4   184.7   (152.1 ) 

Amount Newly Categorized as above during the Second Half of Fiscal 2008

             463.8   175.6   80.2   11.2   267.0   (196.7 ) 

of which the amount which was in the process of being removed from the balance sheet

             96.5   52.6   13.1   6.7   72.6   (23.9 ) 

Claims against Bankrupt and Substantially Bankrupt Obligors

               34.5   6.1   2.9   43.6   43.6   

Claims with Collection Risk

               142.6   182.9   19.7   345.3   345.3   

Amount Newly Categorized as above during the First Half of Fiscal 2009

               177.1   189.1   22.7   389.0   389.0   

of which the amount which was in the process of being removed from the balance sheet

               34.5   4.2   0.4   39.2   39.2   

Claims against Bankrupt and Substantially Bankrupt Obligors

     122.2   161.0   137.3   205.3   308.7   200.1   33.8   44.7   278.7   (30.0 ) 

Claims with Collection Risk

     598.4   598.9   375.5   434.7   598.0   420.3   283.1   30.3   733.7   135.7   
                                           

Total

     720.7   760.0   512.8   640.0   906.8   620.4   317.0   75.0   1,012.5   105.6   

of which the amount which was in the process of being removed from the balance sheet

     77.7   85.4   89.9   154.3   228.3   183.0   23.6   11.4   218.1   (10.1 ) 
                                           

 

* Trust account denotes trust accounts with contracts indemnifying the principal amounts.
* Bold 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 (including past figures for their former revitalization subsidiaries) (Banking Account + Trust Account)

 

                

(Billions of yen)

 

   

(%)

 

   

(%)

 

     Amount
Newly
Categorized		    Balance as of
September 30,
2009		    Accumulated
Removal
Amount		    Accumulated
Removal
Ratio		    Modified
Accumulated
Removal
Ratio*

Up to First Half of Fiscal 2006

    9,968.7    120.2    9,848.4    98.7    98.9

Second Half of Fiscal 2006

    405.3    23.9    381.3    94.0    95.3

First Half of Fiscal 2007

    432.2    37.9    394.2    91.2    93.2

Second Half of Fiscal 2007

    196.9    58.3    138.5    70.3    84.0

First Half of Fiscal 2008

    270.1    115.8    154.3    57.1    73.7

Second Half of Fiscal 2008

    463.8    267.0    196.7    42.4    58.0

First Half of Fiscal 2009

    389.0    389.0         
                    

Total

    12,126.2    1,012.5    11,113.7      
                    

 

* 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.

 

3-31

Mizuho Financial Group, Inc.

 

(3) Breakdown of Reasons for Removal of NPLs from the Balance Sheet in the First Half of Fiscal 2009

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

 

    (Billions of yen)  
    Newly Categorized     Amount Removed
from B/S
in the First Half of
Fiscal 2009		  
    Fiscal 2006     Fiscal 2007     Fiscal 2008    
    Up to
First Half		     Second Half     First Half     Second Half     First Half     Second Half    

Liquidation

   (10.6 )    (0.4 )    (1.9 )    (1.2 )    (0.5 )    (0.2 )    (15.0 ) 

Restructuring

   (0.0 )    (0.3 )    —        (0.4 )    (0.9 )    (2.2 )    (4.0 ) 

Improvement in Business Performance due to Restructuring

   —        —        —        —        (0.0 )    —        (0.0 ) 

Loan Sales

   (3.5 )    (2.1 )    (4.1 )    (3.5 )    (5.3 )    (21.5 )    (40.2 ) 

Direct Write-off

   13.6      2.1      5.9      0.6      (1.1 )    (28.7 )    (7.4 ) 

Other

   (17.4 )    (2.3 )    (9.4 )    (14.2 )    (29.1 )    (144.0 )    (216.5 ) 

Debt recovery

   (12.5 )    (1.5 )    (3.7 )    (8.3 )    (20.0 )    (87.0 )    (133.3 ) 

Improvement in Business Performance

   (4.8 )    (0.7 )    (5.7 )    (5.9 )    (9.0 )    (56.9 )    (83.2 ) 
                                         

Total

   (17.9 )    (3.1 )    (9.6 )    (18.8 )    (37.0 )    (196.7 )    (283.3 ) 
                                         
Mizuho Bank              

Liquidation

   (10.2 )    (0.4 )    (1.9 )    (1.2 )    (0.5 )    (0.2 )    (14.6 ) 

Restructuring

   —        (0.3 )    —        (0.4 )    (0.3 )    (0.3 )    (1.4 ) 

Improvement in Business Performance due to Restructuring

   —        —        —        —        —        —        —     

Loan Sales

   (3.5 )    (2.1 )    (4.1 )    (3.5 )    (4.3 )    (0.6 )    (18.3 ) 

Direct Write-off

   11.2      2.2      5.3      0.9      (0.6 )    (32.8 )    (13.8 ) 

Other

   (10.9 )    (2.2 )    (8.7 )    (14.1 )    (26.9 )    (79.4 )    (142.5 ) 

Debt recovery

   (6.1 )    (1.5 )    (3.0 )    (8.2 )    (18.0 )    (48.4 )    (85.4 ) 

Improvement in Business Performance

   (4.8 )    (0.7 )    (5.7 )    (5.8 )    (8.8 )    (30.9 )    (57.0 ) 
                                         

Total

   (13.5 )    (3.0 )    (9.5 )    (18.4 )    (32.8 )    (113.4 )    (190.8 ) 
                                         
Mizuho Corporate Bank             

Liquidation

   —        —        —        —        —        —        —     

Restructuring

   (0.0 )    —        —        —        —        (1.9 )    (1.9 ) 

Improvement in Business Performance due to Restructuring

   —        —        —        —        —        —        —     

Loan Sales

   —        —        —        —        (0.9 )    (20.8 )    (21.8 ) 

Direct Write-off

   2.0      (0.0 )    0.6      (0.2 )    0.3      6.8      9.6   

Other

   (6.2 )    0.0      (0.6 )    (0.0 )    1.0      (58.7 )    (64.5 ) 

Debt recovery

   (6.2 )    0.0      (0.6 )    (0.0 )    1.2      (32.8 )    (38.5 ) 

Improvement in Business Performance

   —        —        —        —        (0.1 )    (25.8 )    (26.0 ) 
                                         

Total

   (4.2 )    —        —        (0.2 )    0.4      (74.6 )    (78.6 ) 
                                         
Mizuho Trust & Banking (Banking Account + Trust Account)       

Liquidation

   (0.4 )    —        —        —        —        —        (0.4 ) 

Restructuring

   —        —        —        —        (0.6 )    —        (0.6 ) 

Improvement in Business Performance due to Restructuring

   —        —        —        —        (0.0 )    —        (0.0 ) 

Loan Sales

   —        —        —        —        —        (0.0 )    (0.0 ) 

Direct Write-off

   0.3      —        —        (0.0 )    (0.8 )    (2.7 )    (3.2 ) 

Other

   (0.2 )    (0.0 )    (0.1 )    (0.0 )    (3.2 )    (5.8 )    (9.5 ) 

Debt recovery

   (0.2 )    (0.0 )    (0.0 )    (0.0 )    (3.2 )    (5.7 )    (9.3 ) 

Improvement in Business Performance

   (0.0 )    (0.0 )    (0.0 )    (0.0 )    (0.0 )    (0.1 )    (0.2 ) 
                                         

Total

   (0.2 )    (0.0 )    (0.1 )    (0.0 )    (4.6 )    (8.6 )    (13.8 ) 
                                         

(Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet

 

Aggregated Figures of the 3 Banks (including past figures for their former revitalization subsidiaries) (Banking Account + Trust Account)

  

   

    (Billions of yen)  
    Amount Removed     Accumulated
Removed Amount
from B/S
since Second Half of
Fiscal 2000 		 
    Up to Second
Half of
Fiscal 2006*		     In First
Half of
Fiscal 2007		     In Second
Half of
Fiscal 2007		     In First
Half of
Fiscal 2008		     In Second
Half of
Fiscal 2008		     In First
Half of
Fiscal 2009		    

Liquidation

   (1,382.7 )    (30.0 )    (35.8 )    (142.1 )    (49.2 )    (15.0 )    (1,655.1 ) 

Restructuring

   (1,828.8 )    (11.0 )    (2.6 )    (1.8 )    (0.0 )    (4.0 )    (1,848.4 ) 

Improvement in Business Performance due to Restructuring

   (180.5 )    (1.0 )    (0.0 )    —        (0.0 )    (0.0 )    (181.7 ) 

Loan Sales

   (4,195.8 )    (26.2 )    (60.9 )    (19.4 )    (39.5 )    (40.2 )    (4,382.2 ) 

Direct Write-off

   3,174.1      46.5      27.8      135.4      22.9      (7.4 )    3,399.3   

Other

   (5,239.4 )    (371.0 )    (372.5 )    (114.9 )    (130.9 )    (216.5 )    (6,445.3 ) 

Debt recovery

     (67.9 )    (138.8 )    (77.5 )    (92.5 )    (133.3 )   

Improvement in Business Performance

     (303.0 )    (233.6 )    (37.3 )    (38.3 )    (83.2 )   
                                         

Total

   (9,653.3 )    (392.9 )    (444.1 )    (142.9 )    (197.0 )    (283.3 )    (11,113.7 ) 
                                         

 

* From the Second Half of Fiscal 2000 to the Second Half of Fiscal 2006.

 

3-32

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 September 30, 2009
      Outstanding
Balance		    Non-Accrual,
Past Due &
Restructured
Loans

Domestic Total (excluding Loans Booked Offshore)

    59,257.5    1,182.4

Manufacturing

    7,972.1    164.5

Agriculture & Forestry

    24.0    0.3

Fishery

    1.4    —  

Mining, Quarrying Industry & Gravel Extraction Industry

    144.8    0.0

Construction

    1,084.1    72.0

Utilities

    919.1    2.3

Communication

    1,807.2    63.9

Transportation & Postal Industry

    2,949.2    103.7

Wholesale & Retail

    5,160.3    134.0

Finance & Insurance

    7,627.5    34.9

Real Estate

    7,129.3    288.7

Commodity Lease

    1,885.1    23.7

Service Industries

    3,293.7    161.1

Local Governments

    872.2    3.0

Governments

    4,919.9    —  

Other

    13,467.0    129.7

Overseas Total (including Loans Booked Offshore)

    7,242.8    153.0

Governments

    211.7    —  

Financial Institutions

    1,793.0    11.7

Other

    5,238.0    141.3
         

Total

    66,500.3    1,335.5
         

 

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

As of September 30, 2009: ¥700.0 billion (from MHBK)

* 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.
* According to the revision of the Japan Standardized Industrial Classification (November 2007), partial amendment has been made to classification of the industry beginning with this interim period.
* Loans by Industry categorized by the previous method as of September 30, 2009 is as shown on page 3-35 (Reference).

 

3-33

Mizuho Financial Group, Inc.

 

      (Billions of yen)
     As of September 30, 2009
      Outstanding
Balance		    Non-Accrual,
Past Due &
Restructured
Loans

Mizuho Bank

Domestic Total (excluding Loans Booked Offshore)

    33,305.9    829.7

Manufacturing

    3,124.7    110.1

Agriculture & Forestry

    23.5    0.3

Fishery

    0.9    —  

Mining, Quarrying Industry & Gravel Extraction Industry

    6.8    0.0

Construction

    570.6    51.3

Utilities

    74.8    2.0

Communication

    351.0    34.4

Transportation & Postal Industry

    1,016.2    24.3

Wholesale & Retail

    3,636.5    123.8

Finance & Insurance

    2,570.6    12.0

Real Estate

    3,591.7    191.5

Commodity Lease

    189.9    1.5

Service Industries

    2,216.8    153.6

Local Governments

    741.1    —  

Governments

    3,699.3    —  

Other

    11,490.9    124.3

Overseas Total (including Loans Booked Offshore)

    —      —  

Governments

    —      —  

Financial Institutions

    —      —  

Other

    —      —  
         

Total

    33,305.9    829.7
         

Mizuho Corporate Bank

Domestic Total (excluding Loans Booked Offshore)

    20,121.9    285.9

Manufacturing

    4,285.4    49.4

Agriculture & Forestry

    0.4    —  

Fishery

    0.5    —  

Mining, Quarrying Industry & Gravel Extraction Industry

    132.4    —  

Construction

    395.9    18.4

Utilities

    752.5    0.0

Communication

    278.8    26.3

Transportation & Postal Industry

    1,697.2    79.4

Wholesale & Retail

    1,300.2    8.8

Finance & Insurance

    4,364.0    13.7

Real Estate

    2,465.6    62.0

Commodity Lease

    1,455.2    22.2

Service Industries

    986.0    4.4

Local Governments

    94.5    —  

Governments

    920.5    —  

Other

    992.2    0.7

Overseas Total (including Loans Booked Offshore)

    7,230.9    153.0

Governments

    210.7    —  

Financial Institutions

    1,793.0    11.7

Other

    5,227.2    141.3
         

Total

    27,352.9    439.0
         

Mizuho Trust & Banking (Banking Account + Trust Account)

Domestic Total (excluding Loans Booked Offshore)

    5,829.6    66.7

Manufacturing

    561.9    4.9

Agriculture & Forestry

    0.0    —  

Fishery

    —      —  

Mining, Quarrying Industry & Gravel Extraction Industry

    5.5    —  

Construction

    117.5    2.2

Utilities

    91.8    0.3

Communication

    1,177.3    3.1

Transportation & Postal Industry

    235.6    —  

Wholesale & Retail

    223.5    1.3

Finance & Insurance

    692.7    9.1

Real Estate

    1,071.9    35.0

Commodity Lease

    240.0    0.0

Service Industries

    90.8    3.0

Local Governments

    36.5    3.0

Governments

    300.0    —  

Other

    983.8    4.5

Overseas Total (including Loans Booked Offshore)

    11.8    —  

Governments

    1.0    —  

Financial Institutions

    —      —  

Other

    10.8    —  
         

Total

    5,841.4    66.7
         

 

* 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.

 

3-34

Mizuho Financial Group, Inc.

 

(Reference)

Non-Consolidated

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

 

    (Billions of yen)
    As of September 30, 2009     As of March 31, 2009   As of September 30, 2008
    Outstanding
Balance		   Non-
Accrual,
Past Due &
Restructured
Loans		   Change from
March 31, 2009		     Change from
September 30, 2008		     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)

   59,257.5   1,182.4   (4,934.9 )    26.8      (1,073.8 )    178.4      64,192.4   1,155.6   60,331.3   1,004.0

Manufacturing

   7,972.1   164.5   (511.6 )    8.1      653.2      21.0      8,483.8   156.4   7,318.9   143.5

Agriculture

   23.1   0.3   (6.1 )    (0.0 )    (9.9 )    (0.5 )    29.3   0.3   33.1   0.9

Forestry

   0.8   —     (0.0 )    —        (0.0 )    —        0.8   —     0.8   —  

Fishery

   1.4   —     (0.9 )    (0.0 )    (1.5 )    (0.1 )    2.3   0.0   2.9   0.1

Mining

   144.8   0.0   7.1      (0.0 )    50.6      (0.0 )    137.7   0.0   94.1   0.0

Construction

   1,084.1   72.0   (253.7 )    (1.4 )    (210.6 )    3.6      1,337.8   73.5   1,294.8   68.3

Utilities

   919.1   2.3   64.8      0.3      94.2      (0.2 )    854.3   2.0   824.9   2.6

Communication

   1,807.2   63.9   (131.9 )    26.6      (98.7 )    43.0      1,939.2   37.2   1,905.9   20.8

Transportation

   2,949.2   103.7   78.8      2.0      191.9      (11.5 )    2,870.3   101.6   2,757.2   115.3

Wholesale & Retail

   5,160.3   134.0   (454.3 )    1.3      (394.3 )    (20.4 )    5,614.7   132.6   5,554.6   154.4

Finance & Insurance

   7,627.5   34.9   (1,041.5 )    9.5      (514.3 )    1.7      8,669.0   25.4   8,141.8   33.1

Real Estate

   7,129.3   288.7   852.4      9.0      496.9      126.3      6,276.8   279.6   6,632.4   162.4

Service Industries

   5,178.8   184.9   (244.7 )    (15.0 )    (278.2 )    23.7      5,423.6   199.9   5,457.1   161.2

Local Governments

   872.2   3.0   186.0      (0.0 )    407.0      (0.0 )    686.1   3.0   465.1   3.0

Governments

   4,919.9   —     (2,959.8 )    —        (1,208.1 )    —        7,879.8   —     6,128.1   —  

Other

   13,467.0   129.7   (519.3 )    (13.8 )    (252.0 )    (8.1 )    13,986.3   143.5   13,719.0   137.8

Overseas Total (including Loans Booked Offshore)

   7,242.8   153.0   (1,303.2 )    39.8      (2,149.5 )    77.2      8,546.1   113.2   9,392.4   75.8

Governments

   211.7   —     (43.1 )    —        (111.3 )    —        254.9   —     323.1   —  

Financial Institutions

   1,793.0   11.7   (197.4 )    10.6      (615.1 )    8.8      1,990.4   1.0   2,408.1   2.8

Other

   5,238.0   141.3   (1,062.6 )    29.1      (1,423.0 )    68.4      6,300.7   112.1   6,661.0   72.9
                                               

Total

   66,500.3   1,335.5   (6,238.2 )    66.6      (3,223.4 )    255.6      72,738.5   1,268.8   69,723.7   1,079.8
                                               

 

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

As of September 30, 2009: ¥700.0 billion (from MHBK)

As of March 31, 2009: ¥700.0 billion (from MHBK)

As of September 30, 2008: ¥720.0 billion (from MHBK ¥360.0 billion; from MHCB ¥360.0 billion)

* 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.
* Loans to private lessors of ¥1,011.6 billion which was categorized by the industries of obligors is now categorized in Real Estate from September 30, 2009.
   If the same change of categorization is applied to the data as of March 31, 2009 and as of September 30, 2008, change from March 31, 2009 is ¥(234.1) billion and change from September 30, 2008 is ¥(582.9) billion in Loans to Real Estate.

 

3-35

Mizuho Financial Group, Inc.

 

 

    (Billions of yen)
    As of September 30, 2009     As of March 31, 2009   As of September 30, 2008
    Outstanding
Balance		   Non-Accrual,
Past Due &
Restructured
Loans		   Change from
March 31, 2009		     Change from
September 30, 2008		     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)

   33,305.9   829.7   (3,820.6 )    (5.8 )    (698.5 )    62.3      37,126.6   835.6   34,004.5   767.4

Manufacturing

   3,124.7   110.1   (163.3 )    (0.5 )    26.8      3.5      3,288.1   110.7   3,097.9   106.6

Agriculture

   22.6   0.3   (5.8 )    (0.0 )    (9.6 )    (0.5 )    28.5   0.3   32.2   0.9

Forestry

   0.8   —     (0.0 )    —        (0.0 )    —        0.8   —     0.8   —  

Fishery

   0.9   —     (0.4 )    (0.0 )    (0.8 )    (0.1 )    1.3   0.0   1.7   0.1

Mining

   6.8   0.0   (0.2 )    (0.0 )    (0.5 )    (0.0 )    7.0   0.0   7.3   0.0

Construction

   570.6   51.3   (70.2 )    (6.4 )    (70.3 )    (4.6 )    640.8   57.7   640.9   55.9

Utilities

   74.8   2.0   (7.1 )    0.3      (15.9 )    1.3      82.0   1.6   90.8   0.6

Communication

   351.0   34.4   (26.0 )    11.0      15.4      14.5      377.0   23.3   335.5   19.8

Transportation

   1,016.2   24.3   (20.4 )    1.5      15.0      (3.5 )    1,036.7   22.7   1,001.2   27.8

Wholesale & Retail

   3,636.5   123.8   (321.9 )    5.7      (272.3 )    (17.3 )    3,958.5   118.1   3,908.8   141.2

Finance & Insurance

   2,570.6   12.0   (51.5 )    1.9      718.8      3.3      2,622.2   10.0   1,851.8   8.7

Real Estate

   3,591.7   191.5   605.8      5.2      512.9      45.6      2,985.9   186.3   3,078.7   145.9

Service Industries

   2,406.7   155.2   (342.0 )    (12.2 )    (538.6 )    26.7      2,748.7   167.4   2,945.3   128.4

Local Governments

   741.1   —     181.7      —        384.3      —        559.3   —     356.7   —  

Governments

   3,699.3   —     (3,252.9 )    —        (1,297.7 )    —        6,952.2   —     4,997.1   —  

Other

   11,490.9   124.3   (345.9 )    (12.5 )    (166.0 )    (6.6 )    11,836.9   136.9   11,657.0   131.0

Overseas Total (including Loans Booked Offshore)

   —     —     —        —        —        —        —     —     —     —  

Governments

   —     —     —        —        —        —        —     —     —     —  

Financial Institutions

   —     —     —        —        —        —        —     —     —     —  

Other

   —     —     —        —        —        —        —     —     —     —  
                                               

Total

   33,305.9   829.7   (3,820.6 )    (5.8 )    (698.5 )    62.3      37,126.6   835.6   34,004.5   767.4
                                               

Mizuho Corporate Bank

Domestic Total (excluding Loans Booked Offshore)

   20,121.9   285.9   (1,256.5 )    15.4      (428.5 )    83.8      21,378.4   270.5   20,550.4   202.0

Manufacturing

   4,285.4   49.4   (289.8 )    4.7      578.2      13.4      4,575.3   44.6   3,707.1   36.0

Agriculture

   0.4   —     (0.3 )    —        (0.3 )    —        0.7   —     0.7   —  

Forestry

   —     —     —        —        —        —        —     —     —     —  

Fishery

   0.5   —     0.5      —        0.2      —        —     —     0.2   —  

Mining

   132.4   —     7.7      —        50.8      —        124.7   —     81.5   —  

Construction

   395.9   18.4   (159.6 )    4.4      (109.9 )    6.5      555.5   13.9   505.8   11.9

Utilities

   752.5   0.0   70.6      (0.0 )    112.5      (1.9 )    681.8   0.0   640.0   1.9

Communication

   278.8   26.3   (53.1 )    12.9      (19.5 )    25.8      332.0   13.4   298.3   0.5

Transportation

   1,697.2   79.4   51.1      0.5      127.8      (6.7 )    1,646.1   78.9   1,569.4   86.1

Wholesale & Retail

   1,300.2   8.8   (130.6 )    (1.3 )    (122.8 )    1.8      1,430.8   10.1   1,423.0   6.9

Finance & Insurance

   4,364.0   13.7   (1,009.0 )    (1.5 )    (1,211.6 )    (8.9 )    5,373.1   15.3   5,575.6   22.7

Real Estate

   2,465.6   62.0   (49.9 )    (0.6 )    (214.9 )    58.1      2,515.6   62.7   2,680.6   3.9

Service Industries

   2,441.2   26.7   129.9      (3.2 )    266.5      (3.6 )    2,311.2   30.0   2,174.7   30.4

Local Governments

   94.5   —     4.5      —        22.1      —        89.9   —     72.3   —  

Governments

   920.5   —     (6.9 )    —        (210.4 )    —        927.5   —     1,131.0   —  

Other

   992.2   0.7   178.6      (0.4 )    302.5      (0.6 )    813.5   1.1   689.6   1.4

Overseas Total (including Loans Booked Offshore)

   7,230.9   153.0   (1,301.9 )    39.8      (2,147.2 )    77.2      8,532.9   113.2   9,378.1   75.8

Governments

   210.7   —     (43.0 )    —        (111.1 )    —        253.7   —     321.8   —  

Financial Institutions

   1,793.0   11.7   (197.4 )    10.6      (615.1 )    8.8      1,990.4   1.0   2,408.1   2.8

Other

   5,227.2   141.3   (1,061.4 )    29.1      (1,420.9 )    68.4      6,288.7   112.1   6,648.1   72.9
                                               

Total

   27,352.9   439.0   (2,558.4 )    55.2      (2,575.7 )    161.1      29,911.3   383.7   29,928.6   277.9
                                               

Mizuho Trust & Banking (Banking Account + Trust Account)

Domestic Total (excluding Loans Booked Offshore)

   5,829.6   66.7   142.2      17.3      53.2      32.2      5,687.4   49.4   5,776.3   34.5

Manufacturing

   561.9   4.9   (58.4 )    3.9      48.1      4.1      620.3   1.0   513.8   0.8

Agriculture

   0.0   —     (0.0 )    —        (0.0 )    —        0.0   —     0.0   —  

Forestry

   —     —     —        —        —        —        —     —     —     —  

Fishery

   —     —     (1.0 )    —        (1.0 )    —        1.0   —     1.0   —  

Mining

   5.5   —     (0.3 )    —        0.3      —        5.9   —     5.2   —  

Construction

   117.5   2.2   (23.9 )    0.5      (30.4 )    1.7      141.4   1.7   148.0   0.5

Utilities

   91.8   0.3   1.3      (0.0 )    (2.2 )    0.3      90.4   0.3   94.0   —  

Communication

   1,177.3   3.1   (52.8 )    2.7      (94.6 )    2.6      1,230.1   0.4   1,271.9   0.5

Transportation

   235.6   —     48.1      —        49.0      (1.2 )    187.4   —     186.6   1.2

Wholesale & Retail

   223.5   1.3   (1.7 )    (2.9 )    0.8      (4.9 )    225.2   4.2   222.6   6.2

Finance & Insurance

   692.7   9.1   19.1      9.1      (21.5 )    7.4      673.6   —     714.3   1.6

Real Estate

   1,071.9   35.0   296.6      4.4      198.9      22.4      775.2   30.6   872.9   12.5

Service Industries

   330.9   3.0   (32.6 )    0.4      (6.1 )    0.6      363.6   2.5   337.0   2.4

Local Governments

   36.5   3.0   (0.2 )    (0.0 )    0.4      (0.0 )    36.8   3.0   36.1   3.0

Governments

   300.0   —     300.0      —        300.0      —        —     —     —     —  

Other

   983.8   4.5   (352.0 )    (0.8 )    (388.5 )    (0.8 )    1,335.8   5.4   1,372.3   5.3

Overseas Total (including Loans Booked Offshore)

   11.8   —     (1.3 )    —        (2.3 )    —        13.1   —     14.2   —  

Governments

   1.0   —     (0.1 )    —        (0.2 )    —        1.1   —     1.3   —  

Financial Institutions

   —     —     —        —        —        —        —     —     —     —  

Other

   10.8   —     (1.2 )    —        (2.1 )    —        12.0   —     12.9   —  
                                               

Total

   5,841.4   66.7   140.8      17.3      50.8      32.2      5,700.5   49.4   5,790.5   34.5
                                               

 

* 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.

 

3-36

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 September 30, 2009
     Disclosed Claims
under the FRL		    Coverage
Ratio

Domestic Total (excluding Loans Booked Offshore)

    1,262.2    76.6

Manufacturing

    174.6    62.4

Agriculture & Forestry

    0.3    93.5

Fishery

    0.0    100.0

Mining, Quarrying Industry & Gravel Extraction Industry

    0.0    100.0

Construction

    73.6    71.7

Utilities

    2.3    70.8

Communication

    65.0    56.8

Transportation & Postal Industry

    106.8    69.7

Wholesale & Retail

    146.5    71.3

Finance & Insurance

    35.5    67.0

Real Estate

    293.3    90.3

Commodity Lease

    25.3    75.2

Service Industries

    164.9    68.9

Local Governments

    30.6    100.0

Other

    142.8    94.6

Overseas Total (including Loans Booked Offshore)

    168.9    64.4

Governments

    —      —  

Financial Institutions

    12.5    97.3

Other

    156.4    61.8
         

Total

    1,431.2    75.1
         

 

 

* Trust account denotes trust accounts with contracts indemnifying the principal amounts.
* According to the revision of the Japan Standardized Industrial Classification (November 2007), partial amendment has been made to classification of the industry beginning with this interim period.
* Disclosed Claims under the FRL and Coverage Ratio by Industry categorized by the previous method as of September 30, 2009 is as shown on page 3-38 (Reference).

 

3-37

Mizuho Financial Group, Inc.

 

(Reference)

Non-Consolidated

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

 

     (Billions of yen, %)
     As of September 30, 2009     As of March 31, 2009    As of September 30, 2008
     Disclosed
Claims
under
the FRL		    Coverage
Ratio		    Change from
March 31, 2009		     Change from
September 30, 2008		     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)

    1,262.2    76.6    20.9      1.2      194.2      5.4      1,241.3    75.4    1,067.9    71.1

Manufacturing

    174.6    62.4    9.4      (7.5 )    27.0      (4.4 )    165.1    69.9    147.5    66.9

Agriculture

    0.3    93.5    (0.0 )    (5.9 )    (0.5 )    37.3      0.3    99.4    0.9    56.2

Forestry

    —      —      —        —        —        —        —      —      —      —  

Fishery

    0.0    100.0    (0.0 )    —        (0.1 )    7.6      0.0    100.0    0.1    92.3

Mining

    0.0    100.0    (0.0 )    —        (0.0 )    84.3      0.0    100.0    0.0    15.6

Construction

    73.6    71.7    (1.1 )    1.2      3.5      (7.1 )    74.7    70.4    70.1    78.8

Utilities

    2.3    70.8    0.3      (2.2 )    (0.2 )    (23.0 )    2.0    73.0    2.6    93.8

Communication

    65.0    56.8    26.3      7.7      42.6      2.0      38.7    49.1    22.3    54.7

Transportation

    106.8    69.7    2.4      17.0      (11.3 )    22.5      104.4    52.7    118.2    47.2

Wholesale & Retail

    146.5    71.3    2.7      0.3      (14.8 )    10.3      143.7    71.0    161.4    61.0

Finance & Insurance

    35.5    67.0    25.1      14.8      19.0      13.4      10.3    52.2    16.4    53.6

Real Estate

    293.3    90.3    8.1      1.2      129.0      4.2      285.2    89.1    164.2    86.0

Service Industries

    190.3    69.7    (29.1 )    4.4      8.3      5.5      219.4    65.2    181.9    64.1

Local Governments

    30.6    100.0    (0.0 )    —        (0.0 )    —        30.6    100.0    30.6    100.0

Other

    142.8    94.6    (23.2 )    0.5      (8.3 )    2.8      166.1    94.0    151.1    91.8

Overseas Total (including Loans Booked Offshore)

    168.9    64.4    25.4      5.6      91.0      (4.0 )    143.4    58.7    77.8    68.5

Governments

    —      —      —        —        —        —        —      —      —      —  

Financial Institutions

    12.5    97.3    11.4      (18.8 )    9.5      42.4      1.0    116.1    2.9    54.8

Other

    156.4    61.8    13.9      3.4      81.4      (7.2 )    142.4    58.3    74.9    69.0
                                                     

Total

    1,431.2    75.1    46.4      1.5      285.3      4.2      1,384.7    73.6    1,145.8    70.9
                                                     

 

 

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

 

3-38

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 September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
           Change from
March 31,
2009		     Change from
September 30,
2008		       

Housing and Consumer Loans

    12,273.6    (34.1 )    103.2      12,307.7    12,170.3

Housing Loans for owner’s residential housing

    10,143.0    66.2      265.4      10,076.8    9,877.5

Mizuho Bank

            

Housing and Consumer Loans

    11,983.8    (24.7 )    119.9      12,008.6    11,863.9

Housing Loans

    10,947.8    23.8      178.9      10,924.0    10,768.9

for owner’s residential housing

    9,894.0    72.8      276.4      9,821.2    9,617.6

Consumer loans

    1,036.0    (48.6 )    (59.0 )    1,084.6    1,095.0

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

    289.7    (9.3 )    (16.6 )    299.0    306.3

Housing Loans for owner’s residential housing

    248.9    (6.6 )    (10.9 )    255.5    259.9

__________     

* 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 September 30, 2009     As of
March 31,
2009		    As of
September 30,
2008
           Change from
March 31,
2009		     Change from
September 30,
2008		       

Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans

    55.5    2.0      (1.7 )    53.4    57.2

Loans to SMEs and Individual Customers

    32,891.4    (1,423.4 )    (1,627.6 )    34,314.8    34,519.0

__________

* Loans to MHFG are included as follows:

             

As of September 30, 2009: ¥700.0 billion (from MHBK)

As of March 31, 2009: ¥700.0 billion (from MHBK)

As of September 30, 2008: ¥720.0 billion (from MHBK ¥360.0 billion; from MHCB ¥360.0 billion)

Mizuho Bank

             

Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans

    71.4    5.4      0.9      65.9    70.5

Loans to SMEs and Individual Customers

    23,802.2    (691.1 )    (187.6 )    24,493.4    23,989.9

Mizuho Corporate Bank

             

Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans

    34.3    (0.9 )    (5.2 )    35.2    39.5

Loans to SMEs and Individual Customers

    6,906.5    (633.6 )    (1,221.9 )    7,540.2    8,128.5

Mizuho Trust & Banking (Banking Account + Trust Account)

             

Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans

    37.4    (2.6 )    (4.1 )    40.1    41.5

Loans to SMEs and Individual Customers

    2,182.5    (98.6 )    (218.0 )    2,281.1    2,400.5

 

* 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 and service industries), or enterprises with full-time employees of 300 or below (100 or below for the wholesale industry, 50 or below for the retail industry, and 100 or below for the service industry.)

 

3-39

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 September 30, 2009    As of
March 31,
2009		    As of
September 30,
2008
          Change from
March 31,
2009		     Change from
September 30,
2008		      

Loan amount

    2.5    (1.2 )    2.4    3.7    0.1

Number of Restructuring Countries*

    4    —        1    4    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 three Banks (Banking Account + Trust Account)

 

    (Billions of yen)
    As of September 30, 2009     As of March 31, 2009   As of September 30, 2008
    Outstanding
Balance		   Non-
Accrual,
Past Due and
Restructured
Loans		   Change from
March 31, 2009		     Change from
September 30, 2008		     Outstanding
Balance		   Non-
Accrual,
Past Due and
Restructured
Loans		   Outstanding
Balance		   Non-
Accrual,
Past Due and
Restructured
Loans
        Outstanding
Balance		     Non-
Accrual,
Past Due and
Restructured
Loans		     Outstanding
Balance		     Non-
Accrual,
Past Due and
Restructured
Loans		          

Asia

   1,663.7   18.1   (276.9 )    0.9      (421.4 )    7.4      1,940.6   17.2   2,085.1   10.6

Hong Kong

   357.4   2.3   (102.7 )    0.5      (113.0 )    (1.5 )    460.1   1.8   470.4   3.9

Korea

   229.8   0.3   (18.4 )    0.3      (87.1 )    0.3      248.2   —     317.0   —  

Singapore

   266.2   6.4   (33.1 )    (0.6 )    (37.1 )    6.2      299.4   7.0   303.3   0.1

Thailand

   240.2   2.4   (25.1 )    0.5      (28.3 )    1.4      265.4   1.8   268.6   0.9

Central and South America

   2,352.6   2.6   (210.7 )    2.5      (310.1 )    2.5      2,563.3   0.1   2,662.8   0.1

North America

   2,251.6   53.8   (330.7 )    32.0      (434.4 )    40.5      2,582.3   21.7   2,686.1   13.2

Eastern Europe

   70.3   6.4   (15.6 )    0.4      (24.1 )    6.4      86.0   5.9   94.5   —  

Western Europe

   2,605.3   65.2   (406.0 )    6.7      (742.4 )    25.1      3,011.3   58.4   3,347.8   40.1

Other

   834.8   7.8   (19.6 )    (1.7 )    (165.5 )    (4.9 )    854.5   9.5   1,000.4   12.8
                                               

Total

   9,778.6   154.1   (1,259.6 )    41.0      (2,098.2 )    77.1      11,038.3   113.1   11,876.9   76.9
                                               

 

* The above figures do not include the outstanding balance of loans by Mizuho Corporate Bank (China), Ltd. established in June 2007.

 

3-40

Mizuho Financial Group, Inc.

 

III. DEFERRED TAXES

1. Change in Deferred Tax Assets, etc.

Consolidated

 

     (Billions of yen)  
     As of September 30, 2009              
           Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		     As of
September 30,
2008		  

Net Deferred Tax Assets (A)

    615.1      (99.5 )    (225.9 )    714.6      841.0   

(Reference)

           

Tier I Capital (B)

    5,151.1      1,384.8      404.0      3,766.3      4,747.0   

(A)/(B) (%)

    11.9      (7.0 )    (5.7 )    18.9      17.7   

 

Non-Consolidated

 

           
     (Billions of yen)  
     As of September 30, 2009        
Mizuho Bank          Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		     As of
September 30,
2008		  

Total Deferred Tax Assets (A)

    977.2      (88.8 )    (20.3 )    1,066.0      997.6   

Total Deferred Tax Liabilities (B)

    (194.3 )    (3.3 )    23.2      (190.9 )    (217.6 ) 

(A) + (B)

    782.8      (92.2 )    2.9      875.1      779.9   

Valuation Allowance

    (498.3 )    96.0      (135.4 )    (594.4 )    (362.9 ) 

Net Deferred Tax Assets (C)

    284.5      3.8      (132.5 )    280.6      417.0   

(Reference)

           

Tier I Capital (D)

    1,798.2      152.7      2.0      1,645.4      1,796.1   

(C)/(D) (%)

    15.8      (1.2 )    (7.3 )    17.0      23.2   
Mizuho Corporate Bank           

Total Deferred Tax Assets (A)

    1,599.7      (139.9 )    164.8      1,739.7      1,434.8   

Total Deferred Tax Liabilities (B)

    (214.2 )    (40.0 )    (74.6 )    (174.1 )    (139.5 ) 

(A) + (B)

    1,385.4      (180.0 )    90.2      1,565.5      1,295.2   

Valuation Allowance

    (1,150.9 )    101.6      (173.0 )    (1,252.5 )    (977.8 ) 

Net Deferred Tax Assets (C)

    234.5      (78.4 )    (82.8 )    312.9      317.4   

(Reference)

           

Tier I Capital (D)

    3,136.8      1274.2      495.7      1,862.6      2,641.1   

(C)/(D) (%)

    7.4      (9.3 )    (4.5 )    16.8      12.0   
Mizuho Trust & Banking           

Total Deferred Tax Assets (A)

    218.9      (14.6 )    (19.2 )    233.6      238.2   

Total Deferred Tax Liabilities (B)

    (15.1 )    (4.8 )    6.9      (10.3 )    (22.1 ) 

(A) + (B)

    203.7      (19.4 )    (12.3 )    223.2      216.1   

Valuation Allowance

    (168.2 )    4.8      1.7      (173.1 )    (170.0 ) 

Net Deferred Tax Assets (C)

    35.5      (14.5 )    (10.5 )    50.1      46.0   

(Reference)

           

Tier I Capital (D)

    269.1      20.6      (24.2 )    248.4      293.3   

(C)/(D) (%)

    13.2      (6.9 )    (2.5 )    20.1      15.7   
Aggregated Figures of the Three Banks           

Total Deferred Tax Assets (A)

    2,795.9      (243.5 )    125.2      3,039.4      2,670.6   

Total Deferred Tax Liabilities (B)

    (423.7 )    (48.2 )    (44.4 )    (375.4 )    (379.2 ) 

(A) + (B)

    2,372.1      (291.7 )    80.7      2,663.9      2,291.3   

Valuation Allowance

    (1,817.5 )    202.6      (306.7 )    (2,020.1 )    (1,510.8 ) 

Net Deferred Tax Assets (C)

    554.6      (89.1 )    (225.9 )    643.7      780.5   

(Reference)

           

Tier I Capital (D)

    5,204.2      1,447.6      473.5      3,756.6      4,730.6   

(C)/(D) (%)

    10.6      (6.4 )    (5.8 )    17.1      16.4   

 

3-41

Mizuho Financial Group, Inc.

 

2. Estimation of Deferred Tax Assets, etc.

Non-Consolidated

(1) Calculation Policy

 

 

Recoverability of Deferred Tax Assets is basically assessed based on future taxable income derived from future profitability, considering that Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking’s fundamental profitability enabled the three banks consistently to report an appropriate level of Net Business Profits in previous periods. Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking’s tax losses carry-forwards and future deductible temporary differences in the past resulted from nonrecurring special causes, e.g. losses from extraordinary and significant waiver of claims due to the crash of the bubble economy, acceleration of disposition of NPLs and stock holdings in accordance with government policy to stabilize promptly the financial system under the long deflationary depression, and the restructuring of businesses to meet the severe management environment. Since the three banks could have reported positive taxable income every year if the losses from these special factors were excluded, the conditions under the provisory clause of 5. (1) „ of “Audit Guideline for Considering Recoverability of Deferred Tax Assets” (JICPA Audit Committee Report No. 66) have been fulfilled. Period for future taxable income considered in the assessment is five years.

 

 

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

 

     (Billions of yen)
     Mizuho Bank    Mizuho Corporate Bank    Mizuho Trust & Banking

First Half of Fiscal 2009 (estimate)

    40.0    46.0    7.0

Fiscal 2008

    128.9    236.1    10.3

Fiscal 2007

    273.2    487.1    74.3

Fiscal 2006

    128.6    438.4    83.1

Fiscal 2005

    124.2    211.0    24.9

Fiscal 2004

    36.8    485.1    44.8

 

Notes:

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. Figures for the First Half of Fiscal 2009 are estimates of taxable income before deducting tax losses carried forward from prior years.

 

3-42

Mizuho Financial Group, Inc.

 

(2) Estimation for Calculating Deferred Tax Assets

Mizuho Bank

1. Estimate of future taxable income

 

                         (Billions of yen)
(Reference)   		  
          Total amount for
five years
(from October 1, 2009
to September 30, 2014)		              First Half of
Fiscal 2009		  

Gross Profits

    1    4,139.8           408.2   

General and Administrative Expenses

    2    (2,805.5 )         (285.0 ) 

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)

    3    1,334.3           123.2   

Credit-related Costs

    4    (900.0 )         (49.8 ) 

Income before Income Taxes

    5    100.3           34.2   

Tax Adjustments *1

    6    925.3          

Taxable Income before Current Temporary Differences *2

    7    1,025.6          

Effective Statutory tax rate

    8    40.59 %        

Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [ 7 x 8 ]

    9    416.3      è     Equal to Line 26   

 

*1. Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.
*2. Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2009.

2. Breakdown of Deferred Tax Assets

 

          (Billions of yen)  
          As of
September 30,
2009		     Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		     As of
September 30,
2008		  

Reserves for Possible Losses on Loans

    10    253.8      6.6      52.2      247.2      201.6   

Impairment of Securities

    11    251.3      (11.0 )    27.7      262.4      223.6   

Net Unrealized Losses on Other Securities

    12    21.2      (64.1 )    (60.9 )    85.4      82.2   

Reserve for Employee Retirement Benefits

    13    —        —        —        —        —     

Net Deferred Hedge Losses

    14    —        —        (20.0 )    —        20.0   

Tax Losses Carried Forward

    15    264.1      (16.8 )    (22.9 )    281.0      287.1   

Other

    16    186.5      (3.3 )    3.6      189.9      182.8   
                                 

Total Deferred Tax Assets

    17    977.2      (88.8 )    (20.3 )    1,066.0      997.6   
                                 

Valuation Allowance

    18    (498.3 )    96.0      (135.4 )    (594.4 )    (362.9 ) 
                                 

Sub Total [ 17 + 18 ]

    19    478.8      7.2      (155.8 )    471.6      634.6   
                                 

Amount related to Retirement Benefits Accounting *

    20    (138.1 )    10.5      13.3      (148.7 )    (151.4 ) 

Net Unrealized Gains on Other Securities

    21    (16.2 )    (10.3 )    1.4      (5.9 )    (17.7 ) 

Net Deferred Hedge Gains

    22    (6.9 )    (5.6 )    (6.9 )    (1.2 )    —     

Other

    23    (32.9 )    2.0      15.5      (35.0 )    (48.4 ) 
                                 

Total Deferred Tax Liabilities

    24    (194.3 )    (3.3 )    23.2      (190.9 )    (217.6 ) 
                                 

Net Deferred Tax Assets (Liabilities) [19 + 24]

    25    284.5      3.8      (132.5 )    280.6      417.0   

Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [9]

    26    416.3      86.3      (134.9 )    329.9      551.3   

Net Unrealized Gains on Other Securities [21]

    27    (16.2 )    (10.3 )    1.4      (5.9 )    (17.7 ) 

Net Deferred Hedge Losses [14]

    28    —        —        (20.0 )    —        20.0   

Net Deferred Hedge Gains [22]

    29    (6.9 )    —        (6.9 )    (1.2 )    —     

Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others)

   30    (108.5 )    (66.4 )    28.0      (42.0 )    (136.5 ) 

 

* Amount related to Retirement Benefits Accounting includes ¥(87.4) billion related to gains on securities contributed to employee retirement benefit trust.

 

 

<Explanation>

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

Gross Profits: ¥4,139.8 billion [1]

General and Administrative Expenses: ¥2,805.5 billion [2]

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥1,334.3 billion [3]

Income before Income Taxes (including Credit-related costs, etc.): ¥100.3 billion [5]

Taxable Income before Current Temporary Differences: ¥1,025.6 billion [7].

On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans, Tax Losses Carried Forward and others amount to ¥977.2 billion [17]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥498.3 billion [18] was provided, therefore after offsetting Deferred Tax Liabilities of ¥194.3 billion [24], ¥284.5 billion [25] of Net Deferred Tax Assets was recorded on the balance sheet.

 

 

 

3-43

Mizuho Financial Group, Inc.

 

Mizuho Corporate Bank

1. Estimate of future taxable income

 

                         (Billions of yen)
(Reference)   		  
          Total amount for
five years
(from October 1, 2009
to September 30, 2014)		              First Half of
Fiscal 2009		  

Gross Profits

    1    2,674.8           318.6   

General and Administrative Expenses

    2    (1,206.9 )         (121.4 ) 

Net Business Profits (before Reversal of (Provision for)
General Reserve for Possible Losses on Loans)

    3    1,467.9           197.2   

Credit-related Costs

    4    (600.0 )         (59.4 ) 

Income before Income Taxes

    5    590.0           76.1   

Tax Adjustments *1

    6    440.7          

Taxable Income before Current Temporary Differences *2

    7    1,030.7          

Effective Statutory tax rate

    8    40.65 %        

Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [ 7 x 8 ]

    9    418.9      è     Equal to Line 26   

 

*1. Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.
*2. Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2009.

2. Breakdown of Deferred Tax Assets

 

        (Billions of yen)  
        As of
September 30,
2009		     Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		     As of
September 30,
2008		  

Reserves for Possible Losses on Loans

   10   144.6      10.9      81.0      133.7      63.6   

Impairment of Securities

   11   643.6      (19.7 )    97.0      663.4      546.6   

Net Unrealized Losses on Other Securities

   12   81.7      (116.9 )    56.9      198.6      24.8   

Reserve for Employee Retirement Benefits

   13   —        —        —        —        —     

Net Deferred Hedge Losses

   14   —        —        —        —        —     

Tax Losses Carried Forward

   15   571.2      (19.5 )    (93.4 )    590.8      664.6   

Other

   16   158.2      5.3      23.2      152.9      135.0   
                               

Total Deferred Tax Assets

   17   1,599.7      (139.9 )    164.8      1,739.7      1,434.8   
                               

Valuation Allowance

   18   (1,150.9 )    101.6      (173.0 )    (1,252.5 )    (977.8 ) 
                               

Sub Total [ 17 + 18 ]

   19   448.8      (38.3 )    (8.1 )    487.1      456.9   
                               

Amount related to Retirement Benefits
Accounting *

   20   (62.0 )    3.7      2.7      (65.8 )    (64.8 ) 

Net Unrealized Gains on Other Securities

   21   (52.0 )    (39.3 )    (20.7 )    (12.6 )    (31.2 ) 

Net Deferred Hedge Gains

   22   (80.8 )    (8.7 )    (74.9 )    (72.1 )    (5.9 ) 

Other

   23   (19.2 )    4.2      18.2      (23.4 )    (37.4 ) 
                               

Total Deferred Tax Liabilities

   24   (214.2 )    (40.0 )    (74.6 )    (174.1 )    (139.5 ) 
                               

Net Deferred Tax Assets (Liabilities) [19 + 24]

   25   234.5      (78.4 )    (82.8 )    312.9      317.4   

Deferred Tax Assets corresponding to Taxable Income before Current Temporary
Differences [9]

   26   418.9      16.0      (36.5 )    402.9      455.5   

Net Unrealized Gains on Other Securities [21]

   27   (52.0 )    (39.3 )    (20.7 )    (12.6 )    (31.2 ) 

Net Deferred Hedge Losses [14]

   28   —        —        —        —        —     

Net Deferred Hedge Gains [22]

   29   (80.8 )    (8.7 )    (74.9 )    (72.1 )    (5.9 ) 

Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others)

  30   (51.5 )    (46.3 )    49.3      (5.1 )    (100.8 ) 

 

* Amount related to Retirement Benefits Accounting includes ¥(27.0) billion related to gains on securities contributed to employee retirement benefit trust.

 

 

<Explanation>

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

Gross Profits: ¥2,674.8 billion [1]

General and Administrative Expenses: ¥1,206.9 billion [2]

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥1,467.9 billion [3]

Income before Income Taxes (including Credit-related costs, etc.): ¥590.0 billion [5]

Taxable Income before Current Temporary Differences: ¥1,030.7 billion [7].

On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans, Tax Losses Carried Forward and others amount to ¥1,599.7 billion [17]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥1,150.9 billion [18] was provided, therefore after offsetting Deferred Tax Liabilities of ¥214.2 billion [24], ¥234.5 billion [25] of Net Deferred Tax Assets was recorded on the balance sheet.

 

 

 

3-44

Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking

1. Estimate of future taxable income

 

                         (Billions of yen)
(Reference)   		  
          Total amount for
five years
(from October 1, 2009
to September 30, 2014)		              First Half of
Fiscal 2009		  

Gross Profits

    1    659.6           63.7   

General and Administrative Expenses

    2    (452.5 )         (45.8 ) 

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)

    3    207.1           17.8   

Credit-related Costs

    4    (60.7 )         (7.6 ) 

Income before Income Taxes

    5    94.9           7.9   

Tax Adjustments *1

    6    55.1          

Taxable Income before Current Temporary Differences *2

    7    150.0          

Effective Statutory tax rate

    8    40.60 %        

Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [ 7 x 8 ]

    9    60.9      è     Equal to Line 26   

 

*1. Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.
*2. Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2009.

2. Breakdown of Deferred Tax Assets

 

          (Billions of yen)  
          As of
September 30,
2009		     Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		     As of
September 30,
2008		  

Reserves for Possible Losses on Loans

    10    15.4      3.3      3.7      12.1      11.6   

Impairment of Securities

    11    62.7      (4.8 )    0.4      67.6      62.2   

Net Unrealized Losses on Other Securities

    12    6.2      (11.6 )    (11.9 )    17.9      18.2   

Reserve for Employee Retirement Benefits

    13    9.0      1.6      2.0      7.3      6.9   

Net Deferred Hedge Losses

    14    4.0      0.8      3.2      3.1      0.7   

Tax Losses Carried Forward

    15    103.7      (3.0 )    (14.9 )    106.8      118.6   

Other

    16    17.6      (0.9 )    (1.9 )    18.5      19.6   
                                 

Total Deferred Tax Assets

    17    218.9      (14.6 )    (19.2 )    233.6      238.2   
                                 

Valuation Allowance

    18    (168.2 )    4.8      1.7      (173.1 )    (170.0 ) 
                                 

Sub Total [ 17 + 18 ]

    19    50.7      (9.7 )    (17.4 )    60.4      68.2   
                                 

Amount related to Retirement Benefits Accounting *

    20    (6.0 )    0.2      0.2      (6.2 )    (6.2 ) 

Net Unrealized Gains on Other Securities

    21    (8.5 )    (5.3 )    6.6      (3.2 )    (15.2 ) 

Net Deferred Hedge Gains

    22    —        —        —        —        —     

Other

    23    (0.5 )    0.2      0.0      (0.8 )    (0.6 ) 
                                 

Total Deferred Tax Liabilities

    24    (15.1 )    (4.8 )    6.9      (10.3 )    (22.1 ) 
                                 

Net Deferred Tax Assets (Liabilities) [19 + 24]

    25    35.5      (14.5 )    (10.5 )    50.1      46.0   

Deferred Tax Assets corresponding to Taxable Income before Current Temporary Differences [9]

    26    60.9      0.7      (1.1 )    60.1      62.0   

Net Unrealized Gains on Other
Securities [21]

    27    (8.5 )    (5.3 )    6.6      (3.2 )    (15.2 ) 

Net Deferred Hedge Losses [14]

    28    4.0      0.8      3.2      3.1      0.7   

Net Deferred Hedge Gains [22]

    29    —        —        —        —        —     

Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others)

   30    (20.8 )    (10.8 )    (19.3 )    (9.9 )    (1.4 ) 

 

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

 

 

<Explanation>

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

Gross Profits: ¥659.6 billion [1]

General and Administrative Expenses: ¥452.5 billion [2]

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans): ¥207.1 billion [3]

Income before Income Taxes (including Credit-related costs, etc.): ¥94.9 billion [5]

Taxable Income before Current Temporary Differences: ¥150.0 billion [7].

On the other hand, Deferred Tax Assets which are tax deductible in the future, such as Reserves for Possible Losses on Loans, Tax Losses Carried Forward and others amount to ¥218.9 billion [17]. However, after considering temporary differences which are not expected to be reversed in the next five years, Valuation Allowance of ¥168.2 billion [18] was provided, therefore after offsetting Deferred Tax Liabilities of ¥15.1 billion [24], ¥35.5 billion [25] of Net Deferred Tax Assets was recorded on the balance sheet.

 

 

 

3-45

Mizuho Financial Group, Inc.

 

Aggregated Figures of the 3 Banks

1. Estimate of future taxable income

 

                           (Billions of yen)
(Reference)   		  
          Total amount for
five years
(from October 1, 2009
to September 30, 2014)		               First Half of
Fiscal 2009		  

Gross Profits

    1    7,474.2            790.6   

General and Administrative Expenses

    2    (4,464.9 )          (452.3 ) 

Net Business Profits (before Reversal of (Provision for)
General Reserve for Possible Losses on Loans)

    3    3,009.3            338.3   

Credit-related Costs

    4    (1,560.7 )          (116.9 ) 

Income before Income Taxes

    5    785.2            118.3   

Tax Adjustments *1

    6    1,421.1           

Taxable Income before Current Temporary Differences *2

    7    2,206.3           

Effective Statutory tax rate

    8    40.59% - 40.65%           

Deferred Tax Assets corresponding to Taxable Income before
Current Temporary Differences [ 7 x 8 ]

    9    896.2      è      Equal to Line 26   

 

*1. Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.
*2. Taxable Income before Current Temporary Differences is an estimate of taxable income before reversal of temporary differences as of September 30, 2009.

2. Breakdown of Deferred Tax Assets

 

          (Billions of yen)  
          As of
September 30,
2009		     Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		     As of
September 30,
2008		  

Reserves for Possible Losses on Loans

    10    414.0      20.8      137.0      393.1      276.9   

Impairment of Securities

    11    957.7      (35.6 )    125.2      993.4      832.5   

Net Unrealized Losses on Other Securities

    12    109.3      (192.7 )    (15.9 )    302.1      125.3   

Reserve for Employee Retirement Benefits

    13    9.0      1.6      2.0      7.3      6.9   

Net Deferred Hedge Losses

    14    4.0      0.8      (16.7 )    3.1      20.8   

Tax Losses Carried Forward

    15    939.2      (39.4 )    (131.3 )    978.6      1,070.5   

Other

    16    362.4      0.9      24.8      361.4      337.5   
                                 

Total Deferred Tax Assets

    17    2,795.9      (243.5 )    125.2      3,039.4      2,670.6   
                                 

Valuation Allowance

    18    (1,817.5 )    202.6      (306.7 )    (2,020.1 )    (1,510.8 ) 
                                 

Sub Total [ 17 + 18 ]

    19    978.3      (40.8 )    (181.4 )    1,019.2      1,159.8   
                                 

Amount related to Retirement Benefits
Accounting *

    20    (206.2 )    14.5      16.2      (220.8 )    (222.5 ) 

Net Unrealized Gains on Other Securities

    21    (76.8 )    (54.9 )    (12.6 )    (21.8 )    (64.2 ) 

Net Deferred Hedge Gains

    22    (87.8 )    (14.4 )    (81.8 )    (73.3 )    (5.9 ) 

Other

    23    (52.7 )    6.5      33.8      (59.3 )    (86.5 ) 
                                 

Total Deferred Tax Liabilities

    24    (423.7 )    (48.2 )    (44.4 )    (375.4 )    (379.2 ) 
                                 

Net Deferred Tax Assets (Liabilities) [19 + 24]

    25    554.6      (89.1 )    (225.9 )    643.7      780.5   

Deferred Tax Assets corresponding to Taxable Income before Current Temporary
Differences [9]

    26    896.2      103.1      (172.6 )    793.0      1,068.8   

Net Unrealized Gains on Other Securities [21]

    27    (76.8 )    (54.9 )    (12.6 )    (21.8 )    (64.2 ) 

Net Deferred Hedge Losses [14]

    28    4.0      0.8      (16.7 )    3.1      20.8   

Net Deferred Hedge Gains [22]

    29    (87.8 )    (14.4 )    (81.8 )    (73.3 )    (5.9 ) 

Other (including Deferred Tax Assets corresponding to Remaining Taxable Income before Current Temporary Differences and others)

   30    (180.9 )    (123.7 )    58.0      (57.1 )    (238.9 ) 

 

* Amount related to Retirement Benefits Accounting includes ¥120.4 billion related to gains on securities contributed to employee retirement benefit trust.

 

3-46

Mizuho Financial Group, Inc.

 

IV. OTHERS

1. Breakdown of Deposits (Domestic Offices)

Non-Consolidated

 

      (Billions of yen)
      As of
September 30,
2009		    Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		    As of
September 30,
2008

Aggregated Figures of the 3 Banks

             

Deposits

    68,078.6    (1,444.9 )    1,316.9      69,523.6    66,761.7
                          

Individual Deposits

    34,902.5    138.7      501.8      34,763.8    34,400.6

Corporate Deposits

    28,198.2    (956.4 )    1,624.1      29,154.6    26,574.1

Financial/Government Institutions

    4,977.8    (627.2 )    (809.0 )    5,605.1    5,786.9

Mizuho Bank

             

Deposits

    54,335.5    (985.2 )    458.1      55,320.8    53,877.4
                          

Individual Deposits

    33,105.5    191.0      565.3      32,914.4    32,540.1

Corporate Deposits

    18,750.9    (405.3 )    571.6      19,156.3    18,179.3

Financial/Government Institutions

    2,479.0    (770.9 )    (678.9 )    3,250.0    3,157.9

Mizuho Corporate Bank

             

Deposits

    11,175.0    (111.4 )    1,083.9      11,286.5    10,091.0
                          

Individual Deposits

    3.0    (0.4 )    (3.3 )    3.5    6.4

Corporate Deposits

    8,899.2    (358.1 )    1,153.9      9,257.4    7,745.3

Financial/Government Institutions

    2,272.7    247.0      (66.6 )    2,025.6    2,339.3

Mizuho Trust & Banking

             

Deposits

    2,567.9    (348.1 )    (225.1 )    2,916.1    2,793.1
                          

Individual Deposits

    1,793.9    (51.8 )    (60.1 )    1,845.8    1,854.0

Corporate Deposits

    547.9    (192.9 )    (101.4 )    740.8    649.4

Financial/Government Institutions

    226.0    (103.4 )    (63.5 )    329.4    289.6

 

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

 

3-47

Mizuho Financial Group, Inc.

 

2. Number of Directors and Employees

 

* Figures are based on the information to be provided in Yuka Shoken Hokokusho.

Mizuho Financial Group, Inc. (Non-Consolidated)

 

     As of
September 30,
2009		    Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		    As of
September 30,
2008

Members of the Board of Directors and Auditors

    14    —        —        14    14

Executive Officers (excluding those doubling as directors)

    4    —        —        4    4

Employees (excluding Executive Officers)

    299    16      31      283    268

________________

             

*  Three members of the Board of Directors and Auditors double as directors of the banking subsidiaries.

Non-Consolidated
     As of
September 30,
2009		    Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		    As of
September 30,
2008

Aggregated Figures of the 3 Banks

             

Members of the Board of Directors and Auditors

    31    1      —        30    31

Executive Officers (excluding those doubling as directors)

    90    (1 )    (2 )    91    92

Employees (excluding Executive Officers)

    31,095    1,912      1,301      29,183    29,794

________________

             

*  The numbers have been adjusted for Members of the Board of Directors and Auditors doubling other positions.

Mizuho Bank

             

Members of the Board of Directors and Auditors

    11    —        —        11    11

Executive Officers (excluding those doubling as directors)

    32    —        (1 )    32    33

Employees (excluding Executive Officers)

    19,489    1,344      838      18,145    18,651

Mizuho Corporate Bank

             

Members of the Board of Directors and Auditors

    11    1      —        10    11

Executive Officers (excluding those doubling as directors)

    40    1      1      39    39

Employees (excluding Executive Officers)

    8,228    328      283      7,900    7,945

Mizuho Trust & Banking

             

Members of the Board of Directors and Auditors

    11    —        —        11    11

Executive Officers (excluding those doubling as directors)

    18    (2 )    (2 )    20    20

Employees (excluding Executive Officers)

    3,378    240      180      3,138    3,198

 

3-48

Mizuho Financial Group, Inc.

 

3. Number of Branches and Offices

Non-Consolidated

 

      As of
September 30,
2009		    Change from
March 31,
2009		     Change from
September 30,
2008		     As of
March 31,
2009		    As of
September 30,
2008
Aggregated Figures of the 3 Banks             

Head Offices and Domestic Branches

    441    1      3      440    438

Overseas Branches

    22    —        —        22    22

Domestic Sub-Branches

    39    1      1      38    38

Overseas Sub-Branches

    10    —        1      10    9

Overseas Representative Offices

    6    (2 )    (3 )    8    9

__________

*  Head Offices and Domestic Branches do not include in-store branches (3), branches and offices for remittance purposes only (32), 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

    388    1      3      387    385

Overseas Branches

    —      —        —        —      —  

Domestic Sub-Branches

    37    1      1      36    36

Overseas Sub-Branches

    —      —        —        —      —  

Overseas Representative Offices

    —      —        —        —      —  

__________

*  Head Offices and Domestic Branches do not include in-store branches (3), branches and offices for remittance purposes only (14), 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

    10    —        1      10    9

Overseas Representative Offices

    6    (1 )    (2 )    7    8

__________

*  Head Office and Domestic Branches do not include branches and offices for remittance purposes only (18).

Mizuho Trust & Banking             

Head Office and Domestic Branches

    35    —        —        35    35

Overseas Branches

    —      —        —        —      —  

Domestic Sub-Branches

    2    —        —        2    2

Overseas Sub-Branches

    —      —        —        —      —  

Overseas Representative Offices

    —      (1 )    (1 )    1    1

 

3-49

Mizuho Financial Group, Inc.

 

4. Earnings Estimates for Fiscal 2009

Consolidated

 

     (Billions of yen)
     Fiscal 2009

Ordinary Income

    2,900.0

Ordinary Profits

    300.0

Net Income

    200.0

(Reference)

Mizuho Bank, Mizuho Corporate Bank, Mizuho Trust & Banking

Aggregated Figures of the 3 Banks (Non-consolidated)

 

      (Billions of yen)  
      Fiscal 2009
Aggregated Figures		     MHBK     MHCB     MHTB  

Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans)

    700.0      275.0      375.0      50.0   

Ordinary Profits

    260.0      65.0      170.0      25.0   

Net Income

    275.0      105.0      155.0      15.0   

Credit-related Costs

    (275.0 )    (140.0 )    (120.0 )    (15.0 ) 

 

* 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.

Mizuho Financial Group, Inc. (Non-Consolidated)

 

      (Billions of yen)
     Fiscal 2009

Operating Income

    33.0

Operating Profits

    13.0

Ordinary Profits

    4.0

Net Income

    4.0

The above information constitute forward-looking statements. Please see the legend regarding forward-looking statements on page 1-2.

 

3-50

Mizuho Financial Group, Inc.

 

(Attachments)

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO BANK

 

     Millions of yen  
     As of
September 30, 2009
(A)		     As of
September 30, 2008
(B)		     Change
(A) - (B)		     As of
March 31, 2009
(C)		     Change
(A) - (C)		  

Assets

           

Cash and Due from Banks

    ¥ 2,612,329      ¥ 3,401,077      ¥ (788,748 )    ¥ 2,738,999      ¥ (126,669 ) 

Call Loans

      8,640,000        5,640,000        3,000,000        8,740,000        (100,000 ) 

Guarantee Deposits Paid under Securities Borrowing Transactions

      472,522        1,902,715        (1,430,192 )      120,451        352,071   

Other Debt Purchased

      1,499,940        1,991,788        (491,847 )      1,719,219        (219,279 ) 

Trading Assets

      1,367,736        1,050,959        316,777        1,555,582        (187,845 ) 

Money Held in Trust

      1,111        1,295        (183 )      1,266        (154 ) 

Securities

      17,519,744        13,809,025        3,710,719        13,376,053        4,143,691   

Loans and Bills Discounted

      33,305,979        34,004,534        (698,555 )      37,126,612        (3,820,633 ) 

Foreign Exchange Assets

      123,760        125,281        (1,521 )      124,652        (891 ) 

Other Assets

      3,082,804        2,584,294        498,510        2,781,170        301,634   

Tangible Fixed Assets

      697,877        603,865        94,012        654,363        43,513   

Intangible Fixed Assets

      145,354        129,092        16,261        142,192        3,161   

Deferred Tax Assets

      284,518        417,029        (132,511 )      280,656        3,861   

Customers’ Liabilities for Acceptances and Guarantees

      990,686        1,198,462        (207,776 )      1,120,746        (130,060 ) 

Reserves for Possible Losses on Loans

      (464,940 )      (389,332 )      (75,608 )      (464,301 )      (639 ) 

Reserve for Possible Losses on Investments

      (16 )      —          (16 )      —          (16 ) 
                                        

Total Assets

    ¥ 70,279,409      ¥ 66,470,090      ¥ 3,809,318      ¥ 70,017,665      ¥ 261,743   
                                        

Liabilities

           

Deposits

    ¥ 54,372,942      ¥ 53,837,012      ¥ 535,930      ¥ 55,350,888      ¥ (977,946 ) 

Negotiable Certificates of Deposit

      1,690,180        1,531,610        158,570        1,784,860        (94,680 ) 

Debentures

      854,892        924,154        (69,262 )      882,949        (28,057 ) 

Call Money

      1,983,200        1,489,200        494,000        1,666,100        317,100   

Payables under Repurchase Agreements

      971,755        —          971,755        588,323        383,432   

Guarantee Deposits Received under Securities Lending Transactions

      1,099,860        1,546,980        (447,119 )      806,730        293,130   

Trading Liabilities

      270,691        220,351        50,339        255,403        15,287   

Borrowed Money

      2,754,413        1,101,789        1,652,623        2,043,626        710,786   

Foreign Exchange Liabilities

      9,191        16,577        (7,385 )      10,713        (1,521 ) 

Short-term Bonds

      —          —          —          20,000        (20,000 ) 

Bonds and Notes

      884,300        662,500        221,800        761,200        123,100   

Other Liabilities

      2,734,192        2,249,878        484,314        3,405,053        (670,860 ) 

Reserve for Bonus Payments

      8,391        8,731        (340 )      9,030        (638 ) 

Reserve for Frequent Users Services

      —          9,755        (9,755 )      11,277        (11,277 ) 

Reserve for Reimbursement of Deposits

      13,336        8,789        4,547        12,650        686   

Reserve for Reimbursement of Debentures

      9,760        —          9,760        8,973        786   

Deferred Tax Liabilities for Revaluation Reserve for Land

      77,464        77,589        (124 )      77,471        (6 ) 

Acceptances and Guarantees

      990,686        1,198,462        (207,776 )      1,120,746        (130,060 ) 
                                        

Total Liabilities

      68,725,259        64,883,382        3,841,876        68,815,998        (90,739 ) 
                                        

Net Assets

           

Common Stock and Preferred Stock

      700,000        650,000        50,000        650,000        50,000   

Capital Surplus

      681,432        762,345        (80,913 )      762,345        (80,913 ) 

Capital Reserve

      490,707        762,345        (271,638 )      762,345        (271,638 ) 

Other Capital Surplus

      190,725        —          190,725        —          190,725   

Retained Earnings

      53,842        242,509        (188,666 )      (130,913 )      184,755   

Other Retained Earnings

      53,842        242,509        (188,666 )      (130,913 )      184,755   

Retained Earnings Brought Forward

      53,842        242,509        (188,666 )      (130,913 )      184,755   
                                        

Total Shareholders’ Equity

      1,435,275        1,654,855        (219,579 )      1,281,432        153,842   
                                        

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

      (402 )      (148,053 )      147,650        (190,725 )      190,322   

Net Deferred Hedge Gains (Losses), net of Taxes

      10,212        (29,342 )      39,554        1,884        8,327   

Revaluation Reserve for Land, net of Taxes

      109,065        109,248        (182 )      109,075        (9 ) 
                                        

Total Valuation and Translation Adjustments

      118,874        (68,147 )      187,022        (79,765 )      198,640   
                                        

Total Net Assets

      1,554,150        1,586,708        (32,557 )      1,201,667        352,482   
                                        

Total Liabilities and Net Assets

    ¥ 70,279,409      ¥ 66,470,090      ¥ 3,809,318      ¥ 70,017,665      ¥ 261,743   
                                        

 

3-51

Mizuho Financial Group, Inc.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME (selected items)

OF MIZUHO BANK

 

     Millions of yen  
     For the six months
ended
September 30, 2009
(A)		     For the six months
ended
September 30, 2008
(B)		     Change
(A) - (B)		     For the fiscal year
ended
March 31, 2009		  

Ordinary Income

    ¥ 592,766      ¥ 656,386      ¥ (63,620 )    ¥ 1,235,954   

Interest Income

      394,869        436,358        (41,489 )      858,419   

Interest on Loans and Bills Discounted

      274,115        309,273        (35,158 )      616,565   

Interest and Dividends on Securities

      65,604        67,608        (2,004 )      115,060   

Fee and Commission Income

      97,911        106,144        (8,232 )      208,277   

Trading Income

      44,864        3,700        41,163        38,397   

Other Operating Income

      22,534        70,243        (47,708 )      77,601   

Other Ordinary Income

      32,587        39,940        (7,353 )      53,258   
                                

Ordinary Expenses

      573,692        700,703        (127,011 )      1,526,146   

Interest Expenses

      83,111        139,864        (56,753 )      254,765   

Interest on Deposits

      48,500        84,384        (35,884 )      149,897   

Interest on Debentures

      1,695        1,512        183        3,175   

Fee and Commission Expenses

      29,356        28,657        699        51,601   

Trading Expenses

      —          9,204        (9,204 )      —     

Other Operating Expenses

      39,489        12,216        27,273        48,603   

General and Administrative Expenses

      316,441        308,644        7,796        614,744   

Other Ordinary Expenses

      105,293        202,115        (96,821 )      556,431   
                                

Ordinary Profits

      19,074        (44,316 )      63,391        (290,191 ) 
                                

Extraordinary Gains

      17,017        92,655        (75,638 )      95,215   
                                

Extraordinary Losses

      1,880        7,957        (6,077 )      11,286   
                                

Income before Income Taxes

      34,211        40,381        (6,169 )      (206,262 ) 

Income Taxes:

         

Current

      271        277        (6 )      519   

Deferred

      (19,892 )      (39,890 )      19,998        86,819   
                                

Net Income

    ¥ 53,833      ¥ 79,994      ¥ (26,161 )    ¥ (293,601 ) 
                                

 

3-52

Mizuho Financial Group, Inc.

 

NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

OF MIZUHO 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 March 31, 2009

   ¥ 650,000   ¥ 762,345        —        ¥ 762,345      —     ¥ (130,913 )    ¥ (130,913 )    —     ¥ 1,281,432   ¥ (190,725 )    ¥ 1,884   ¥ 109,075      ¥ (79,765 )    ¥ 1,201,667
                                                                                               

Changes during the period

                            

Issuance of New Shares

     50,000     50,000        —          50,000      —       —          —        —       100,000     —          —       —          —          100,000

Cash Dividends

     —       —          —          —        —       —          —        —       —       —          —       —          —          —  

Net Income

     —       —          —          —        —       53,833        53,833      —       53,833     —          —       —          —          53,833

Repurchase of Treasury Stock

     —       —          —          —        —       —          —        —       —       —          —       —          —          —  

Cancellation of Treasury Stock

     —       —          —          —        —       —          —        —       —       —          —       —          —          —  

Transfer from Revaluation Reserve for Land, net of Taxes

     —       —          —          —        —       9        9      —       9     —          —       —          —          9

Change in Capital Reserve

     —       (321,638 )      321,638        —        —       —          —        —       —       —          —       —          —          —  

Transfer from Capital Surplus to Retained Earnings Caused by Coping with a Loss

     —       —          (130,913 )      (130,913 )    —       130,913        130,913      —       —       —          —       —          —          —  

Net Changes in Items other than Shareholders' Equity

     —       —          —          —        —       —          —        —       —       190,322        8,327     (9 )      198,640        198,640
                                                                                               

Total Changes during the period

     50,000     (271,638 )      190,725        (80,913 )    —       184,755        184,755      —       153,842     190,322        8,327     (9 )      198,640        352,482
                                                                                               

Balance as of September 30, 2009

   ¥ 700,000   ¥ 490,707      ¥ 190,725      ¥ 681,432      —     ¥ 53,842      ¥ 53,842      —     ¥ 1,435,275   ¥ (402 )    ¥ 10,212   ¥ 109,065      ¥ 118,874      ¥ 1,554,150
                                                                                               

 

3-53

Mizuho Financial Group, Inc.

 

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO CORPORATE BANK

 

     Millions of yen  
      As of
September 30, 2009
(A)		     As of
September 30, 2008
(B)		     Change
(A) - (B)		     As of
March 31, 2009
(C)		     Change
(A) - (C)		  

Assets

           

Cash and Due from Banks

    ¥ 3,324,857      ¥ 2,155,192      ¥ 1,169,664      ¥ 3,930,221      ¥ (605,364 ) 

Call Loans

      137,302        273,623        (136,320 )      162,041        (24,739 ) 

Receivables under Resale Agreements

      1,183,058        1,667,165        (484,107 )      583,917        599,141   

Guarantee Deposits Paid under Securities Borrowing Transactions

      1,051,746        2,112,842        (1,061,095 )      2,724,465        (1,672,718 ) 

Other Debt Purchased

      145,268        164,263        (18,995 )      138,491        6,776   

Trading Assets

      6,297,171        4,027,174        2,269,996        5,301,421        995,749   

Money Held in Trust

      2,024        2,026        (2 )      2,026        (2 ) 

Securities

      18,888,160        17,582,339        1,305,820        15,406,851        3,481,308   

Loans and Bills Discounted

      27,352,921        29,928,662        (2,575,740 )      29,911,387        (2,558,466 ) 

Foreign Exchange Assets

      379,124        580,267        (201,142 )      796,974        (417,850 ) 

Derivatives other than for Trading

      8,661,971        5,374,923        3,287,047        9,445,441        (783,469 ) 

Other Assets

      2,006,312        1,996,406        9,906        1,965,964        40,348   

Tangible Fixed Assets

      113,080        120,782        (7,702 )      117,585        (4,504 ) 

Intangible Fixed Assets

      83,302        84,822        (1,519 )      90,030        (6,727 ) 

Deferred Tax Assets

      234,576        317,427        (82,850 )      312,980        (78,403 ) 

Customers’ Liabilities for Acceptances and Guarantees

      3,494,326        4,623,032        (1,128,706 )      3,871,723        (377,396 ) 

Reserves for Possible Losses on Loans

      (345,566 )      (180,848 )      (164,718 )      (330,952 )      (14,614 ) 

Reserve for Possible Losses on Investments

      (11,102 )      (1,542 )      (9,560 )      (5,590 )      (5,512 ) 
                                        

Total Assets

    ¥ 72,998,535      ¥ 70,828,564      ¥ 2,169,971      ¥ 74,424,982      ¥ (1,426,447 ) 
                                        

Liabilities

           

Deposits

    ¥ 18,773,028      ¥ 19,508,079      ¥ (735,050 )    ¥ 19,614,285      ¥ (841,256 ) 

Negotiable Certificates of Deposit

      6,831,761        8,300,965        (1,469,204 )      7,233,589        (401,827 ) 

Debentures

      1,062,550        1,803,510        (740,960 )      1,423,750        (361,200 ) 

Call Money

      11,891,867        10,336,805        1,555,062        12,314,696        (422,828 ) 

Payables under Repurchase Agreements

      4,624,724        5,876,770        (1,252,046 )      2,663,993        1,960,730   

Guarantee Deposits Received under Securities Lending Transactions

      1,723,810        1,991,137        (267,327 )      1,884,378        (160,568 ) 

Trading Liabilities

      4,309,559        2,715,909        1,593,650        3,909,429        400,129   

Borrowed Money

      5,909,734        4,993,061        916,672        6,849,307        (939,573 ) 

Foreign Exchange Liabilities

      224,426        287,322        (62,895 )      609,399        (384,972 ) 

Short-term Bonds

      170,200        401,400        (231,200 )      154,400        15,800   

Bonds and Notes

      2,445,774        1,729,963        715,810        2,064,368        381,406   

Derivatives other than for Trading

      7,961,960        5,144,927        2,817,032        9,312,947        (1,350,987 ) 

Other Liabilities

      899,408        873,517        25,891        985,235        (85,826 ) 

Reserve for Bonus Payments

      6,559        3,442        3,116        10,939        (4,380 ) 

Reserve for Possible Losses on Sales of Loans

      27,666        54,231        (26,564 )      28,711        (1,044 ) 

Reserve for Contingencies

      2,427        3,279        (852 )      7,845        (5,418 ) 

Deferred Tax Liabilities for Revaluation Reserve for Land

      26,217        26,960        (743 )      26,884        (666 ) 

Acceptances and Guarantees

      3,494,326        4,623,032        (1,128,706 )      3,871,723        (377,396 ) 
                                        

Total Liabilities

      70,386,004        68,674,318        1,711,685        72,965,883        (2,579,879 ) 
                                        

Net Assets

           

Common Stock and Preferred Stock

      1,404,065        1,070,965        333,100        1,070,965        333,100   

Capital Surplus

      663,434        330,334        333,100        330,334        333,100   

Capital Reserve

      578,540        330,334        248,206        330,334        248,206   

Other Capital Surplus

      84,893        —          84,893        —          84,893   

Retained Earnings

      315,749        587,934        (272,185 )      246,763        68,985   

Appropriated Reserve

      —          110,701        (110,701 )      110,701        (110,701 ) 

Other Retained Earnings

      315,749        477,232        (161,483 )      136,062        179,686   

Retained Earnings Brought Forward

      315,749        477,232        (161,483 )      136,062        179,686   
                                        

Total Shareholders’ Equity

      2,383,248        1,989,233        394,014        1,648,063        735,185   
                                        

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

      74,851        118,875        (44,024 )      (331,657 )      406,508   

Net Deferred Hedge Gains (Losses), net of Taxes

      118,048        8,669        109,379        105,320        12,728   

Revaluation Reserve for Land, net of Taxes

      36,382        37,467        (1,084 )      37,372        (989 ) 
                                        

Total Valuation and Translation Adjustments

      229,282        165,011        64,270        (188,964 )      418,247   
                                        

Total Net Assets

      2,612,530        2,154,245        458,285        1,459,098        1,153,432   
                                        

Total Liabilities and Net Assets

    ¥ 72,998,535      ¥ 70,828,564      ¥ 2,169,971      ¥ 74,424,982      ¥ (1,426,447 ) 
                                        

 

3-54

Mizuho Financial Group, Inc.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME (selected items)

OF MIZUHO CORPORATE BANK

 

     Millions of yen  
     For the six months
ended
September 30, 2009
(A)		     For the six months
ended
September 30, 2008
(B)		     Change
(A) - (B)		     For the fiscal year
ended
March 31, 2009		  

Ordinary Income

    ¥ 607,607      ¥ 837,200      ¥ (229,593 )    ¥ 1,705,752   

Interest Income

      407,892        607,973        (200,081 )      1,073,677   

Interest on Loans and Bills Discounted

      222,225        343,330        (121,104 )      622,878   

Interest and Dividends on Securities

      141,028        180,285        (39,257 )      333,815   

Fee and Commission Income

      67,622        75,093        (7,470 )      149,905   

Trading Income

      47,439        12,809        34,629        153,323   

Other Operating Income

      31,260        82,487        (51,226 )      171,210   

Other Ordinary Income

      53,392        58,837        (5,444 )      157,635   
                                

Ordinary Expenses

      540,059        787,153        (247,094 )      1,927,211   

Interest Expenses

      182,233        463,393        (281,160 )      757,176   

Interest on Deposits

      38,610        146,140        (107,530 )      218,556   

Interest on Debentures

      5,033        7,946        (2,912 )      14,484   

Fee and Commission Expenses

      12,078        17,609        (5,531 )      32,961   

Trading Expenses

      —          —          —          —     

Other Operating Expenses

      41,261        28,721        12,539        229,827   

General and Administrative Expenses

      135,704        129,254        6,449        260,405   

Other Ordinary Expenses

      168,781        148,173        20,608        646,840   
                                

Ordinary Profits

      67,547        50,047        17,500        (221,459 ) 
                                

Extraordinary Gains

      11,149        28,700        (17,550 )      6,817   
                                

Extraordinary Losses

      2,527        4,055        (1,528 )      5,660   
                                

Income before Income Taxes

      76,170        74,692        1,478        (220,302 ) 

Income Taxes:

         

Current

      4,399        19        4,380        20,767   

Refund of Income Taxes

      (3,897 )      —          (3,897 )      —     

Deferred

      7,666        (11,069 )      18,736        14,459   
                                

Net Income

    ¥ 68,001      ¥ 85,743      ¥ (17,741 )    ¥ (255,529 ) 
                                

 

3-55

Mizuho Financial Group, Inc.

 

NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

OF MIZUHO CORPORATE BANK

 

     Millions of yen
     Shareholders’ Equity    Valuation and Translation Adjustments      
          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		     Total
Net Assets
     Common
Stock and
Preferred
Stock		    Capital
Reserve		     Other
Capital
Surplus		    Total
Capital
Surplus		    Appropriated
Reserve 		    Other
Retained
Earnings		    Total
Retained
Earnings		                  
                  Retained
Earnings
Brought
Forward		                     

Balance as of March 31, 2009

    ¥ 1,070,965    ¥ 330,334        —      ¥ 330,334    ¥ 110,701      ¥ 136,062    ¥ 246,763    —      ¥ 1,648,063    ¥ (331,657 )    ¥ 105,320    ¥ 37,372      ¥ (188,964 )    ¥ 1,459,098
                                                                                                    

Changes during the period

                                     

Issuance of New Shares

      333,100      333,100        —        333,100      —          —        —      —        666,200      —          —        —          —          666,200

Cash Dividends

      —        —          —        —        —          —        —      —        —        —          —        —          —          —  

Net Income

      —        —          —        —        —          68,001      68,001    —        68,001      —          —        —          —          68,001

Repurchase of Treasury Stock

      —        —          —        —        —          —        —      —        —        —          —        —          —          —  

Cancellation of Treasury Stock

      —        —          —        —        —          —        —      —        —        —          —        —          —          —  

Transfer from Revaluation Reserve for Land, net of Taxes

      —        —          —        —        —          983      983    —        983      —          —        —          —          983

Change in Capital Reserve

      —        (84,893 )      84,893      —        —          —        —      —        —        —          —        —          —          —  

Change in Appropriated Reserve

      —        —          —        —        (110,701 )      110,701      —      —        —        —          —        —          —          —  

Net Changes in Items other than Shareholders' Equity

      —        —          —        —        —          —        —      —        —        406,508        12,728      (989 )      418,247        418,247
                                                                                                    

Total Changes during the period

      333,100      248,206        84,893      333,100      (110,701 )      179,686      68,985    —        735,185      406,508        12,728      (989 )      418,247        1,153,432
                                                                                                    

Balance as of September 30, 2009

    ¥ 1,404,065    ¥ 578,540      ¥ 84,893    ¥ 663,434      —        ¥ 315,749    ¥ 315,749    —      ¥ 2,383,248    ¥ 74,851      ¥ 118,048    ¥ 36,382      ¥ 229,282      ¥ 2,612,530
                                                                                                    

 

3-56