Form 6-K MIZUHO FINANCIAL GROUP For: Nov 26

 

 

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 2015

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

Japan

(Address of principal executive office)

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

Form 20-F  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.

 

---

1. Interim Consolidated Financial Statements

(1) Consolidated Balance Sheet

 

		Millions of yen
		As of September 30, 2015
Assets
Cash and Due from Banks		¥				*8			35,194,504
Call Loans and Bills Purchased									453,546
Receivables under Resale Agreements									8,618,422
Guarantee Deposits Paid under Securities Borrowing Transactions									3,900,412
Other Debt Purchased									2,907,399
Trading Assets						*8			11,565,875
Money Held in Trust									145,940
Securities						*1*8*15			39,996,490
Loans and Bills Discounted						*3*4*5*6*7*8*9			74,276,839
Foreign Exchange Assets						*7			1,657,373
Derivatives other than for Trading Assets									2,958,859
Other Assets						*8			3,537,663
Tangible Fixed Assets						*10*11			1,078,339
Intangible Fixed Assets									706,610
Net Defined Benefit Asset									773,296
Deferred Tax Assets									37,174
Customers’ Liabilities for Acceptances and Guarantees									4,901,887
Reserves for Possible Losses on Loans									(463,886	)
Total Assets		¥							192,246,749

---

		Millions of yen
		As of September 30, 2015
Liabilities
Deposits		¥				*8			100,595,584
Negotiable Certificates of Deposit									15,455,822
Call Money and Bills Sold						*8			5,738,107
Payables under Repurchase Agreements						*8			19,677,206
Guarantee Deposits Received under Securities Lending Transactions						*8			2,115,663
Commercial Paper									628,445
Trading Liabilities									8,964,612
Borrowed Money						*8 *12			7,406,585
Foreign Exchange Liabilities									560,551
Short-term Bonds									776,296
Bonds and Notes						*13			6,235,233
Due to Trust Accounts									1,954,690
Derivatives other than for Trading Liabilities									2,653,017
Other Liabilities									4,649,335
Reserve for Bonus Payments									43,964
Net Defined Benefit Liability									48,948
Reserve for Director and Corporate Auditor Retirement Benefits									1,567
Reserve for Possible Losses on Sales of Loans									220
Reserve for Contingencies									6,870
Reserve for Reimbursement of Deposits									16,684
Reserve for Reimbursement of Debentures									42,905
Reserves under Special Laws									1,848
Deferred Tax Liabilities									433,970
Deferred Tax Liabilities for Revaluation Reserve for Land						*10			71,897
Acceptances and Guarantees									4,901,887
Total Liabilities		¥							182,981,918
Net Assets
Common Stock and Preferred Stock									2,255,790
Capital Surplus									1,111,410
Retained Earnings									3,004,969
Treasury Stock									(4,031	)
Total Shareholders’ Equity									6,368,139
Net Unrealized Gains (Losses) on Other Securities									1,386,622
Deferred Gains or Losses on Hedges									59,105
Revaluation Reserve for Land						*10			145,446
Foreign Currency Translation Adjustments									(43,751	)
Remeasurements of Defined Benefit Plans									160,410
Total Accumulated Other Comprehensive Income									1,707,834
Stock Acquisition Rights									2,762
Non-Controlling Interests									1,186,094
Total Net Assets									9,264,830
Total Liabilities and Net Assets		¥							192,246,749

---

(2)		Consolidated Statement of Income and
		Consolidated Statement of Comprehensive Income
		[Consolidated Statement of Income]

 

 

		Millions of yen
		For the six months ended September 30, 2015
Ordinary Income		¥									1,637,697
Interest Income											720,592
Interest on Loans and Bills Discounted											463,500
Interest and Dividends on Securities											158,508
Fiduciary Income											26,399
Fee and Commission Income											369,856
Trading Income											145,813
Other Operating Income											186,370
Other Ordinary Income							*1				188,664
Ordinary Expenses											1,063,107
Interest Expenses											197,081
Interest on Deposits											77,722
Fee and Commission Expenses											76,897
Trading Expenses											1,686
Other Operating Expenses											41,511
General and Administrative Expenses											673,456
Other Ordinary Expenses							*2				72,475
Ordinary Profits											574,590
Extraordinary Gains							*3				19,573
Extraordinary Losses							*4				2,233
Income before Income Taxes											591,930
Income Taxes:
Current											134,814
Deferred											38,853
Total Income Taxes											173,667
Profit											418,262
Profit Attributable to Non-controlling Interests											34,064
Profit Attributable to Owners of Parent		¥									384,198

---

[Consolidated Statement of Comprehensive Income]

		Millions of yen
		For the six months ended September 30, 2015
Profit		¥					418,262
Other Comprehensive Income							(321,442	)
Net Unrealized Gains (Losses) on Other Securities							(349,353	)
Deferred Gains or Losses on Hedges							32,591
Revaluation Reserve for Land							10
Foreign Currency Translation Adjustments							(3,313	)
Remeasurements of Defined Benefit Plans							(1,109	)
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method							(267	)
Comprehensive Income							96,820
(Breakdown)
Comprehensive Income Attributable to Owners of Parent							63,060
Comprehensive Income Attributable to Non-controlling Interests							33,759

---

(3) Consolidated Statement of Cash Flows

 

		Millions of yen
		For the six months ended     September 30, 2015
Cash Flow from Operating Activities
Income before Income Taxes		¥	591,930
Depreciation			79,352
Losses on Impairment of Fixed Assets			390
Amortization of Goodwill			364
Equity in Loss (Gain) from Investments in Affiliates			(16,529	)
Increase (Decrease) in Reserves for Possible Losses on Loans			(60,659	)
Increase (Decrease) in Reserve for Possible Losses on Investments			(2	)
Increase (Decrease) in Reserve for Possible Losses on Sales of Loans			207
Increase (Decrease) in Reserve for Contingencies			(228	)
Increase (Decrease) in Reserve for Bonus Payments			(15,974	)
Decrease (Increase) in Net Defined Benefit Asset			(32,114	)
Increase (Decrease) in Net Defined Benefit Liability			2,130
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits			40
Increase (Decrease) in Reserve for Reimbursement of Deposits			833
Increase (Decrease) in Reserve for Reimbursement of Debentures			(5,972	)
Interest Income - accrual basis			(720,592	)
Interest Expenses - accrual basis			197,081
Losses (Gains) on Securities			(187,912	)
Losses (Gains) on Money Held in Trust			(89	)
Foreign Exchange Losses (Gains) - net			(24,695	)
Losses (Gains) on Disposition of Fixed Assets			(5,149	)
Decrease (Increase) in Trading Assets			(763,919	)
Increase (Decrease) in Trading Liabilities			201,078
Decrease (Increase) in Derivatives other than for Trading Assets			576,930
Increase (Decrease) in Derivatives other than for Trading Liabilities			(819,395	)
Decrease (Increase) in Loans and Bills Discounted			(1,202,333	)
Increase (Decrease) in Deposits			2,924,036
Increase (Decrease) in Negotiable Certificates of Deposit			(207,062	)
Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money)			335,347
Decrease (Increase) in Due from Banks (excluding Due from Central Banks)			(39,839	)
Decrease (Increase) in Call Loans, etc.			283,540
Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions			158,928
Increase (Decrease) in Call Money, etc.			715,253
Increase (Decrease) in Commercial Paper			91,277
Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions			(129,975	)
Decrease (Increase) in Foreign Exchange Assets			(49,208	)
Increase (Decrease) in Foreign Exchange Liabilities			87,258
Increase (Decrease) in Short-term Bonds (Liabilities)			(40,408	)
Increase (Decrease) in Bonds and Notes			(84,193	)
Increase (Decrease) in Due to Trust Accounts			173,921
Interest and Dividend Income - cash basis			761,229
Interest Expenses - cash basis			(195,709	)
Other - net			1,151,799
Subtotal			3,730,964
Cash Refunded (Paid) in Income Taxes			(178,197	)
Net Cash Provided by (Used in) Operating Activities		¥	3,552,766

---

		Millions of yen
		For the six months ended September 30, 2015
Cash Flow from Investing Activities
Payments for Purchase of Securities		¥									(22,984,289	)
Proceeds from Sale of Securities											19,029,866
Proceeds from Redemption of Securities											7,047,764
Payments for Increase in Money Held in Trust											(1,820	)
Proceeds from Decrease in Money Held in Trust											13,609
Payments for Purchase of Tangible Fixed Assets											(27,991	)
Payments for Purchase of Intangible Fixed Assets											(153,480	)
Proceeds from Sale of Tangible Fixed Assets											10,515
Net Cash Provided by (Used in) Investing Activities											2,934,175
Cash Flow from Financing Activities
Repayments of Subordinated Borrowed Money											(124,000	)
Proceeds from Issuance of Subordinated Bonds											350,000
Payments for Redemption of Subordinated Bonds											(47,600	)
Proceeds from Issuance of Common Stock											4
Proceeds from Investments by Non-controlling Shareholders											282
Repayments to Non-controlling Shareholders											(452,500	)
Cash Dividends Paid											(100,658	)
Cash Dividends Paid to Non-controlling Shareholders											(30,831	)
Payments for Repurchase of Treasury Stock											(8	)
Proceeds from Sale of Treasury Stock											2
Net Cash Provided by (Used in) Financing Activities											(405,309	)
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents											5,511
Net Increase (Decrease) in Cash and Cash Equivalents											6,087,143
Cash and Cash Equivalents at the beginning of the period											27,840,775
Cash and Cash Equivalents at the end of the period		¥					*1				33,927,919

---

(Notes)

(Notes to Consolidated Balance Sheet)

Notes as of September 30, 2015

1. Total balance of securities and investments in affiliates

 

		As of September 30, 2015
Securities		¥	294,106 million
Investments		¥	607 million

2. There was no balance for unsecured loaned securities which the borrowers have the right to sell or repledge.

MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral and the balances of these securities are as follows.

 

		As of September 30, 2015
The total of securities repledged		¥	11,888,363 million
Securities neither repledged nor re-loaned		¥	1,069,597 million

3. Loans and Bills Discounted includes Loans to Bankrupt Obligors and Non-Accrual Delinquent Loans as follows.

 

		As of September 30, 2015
Loans to Bankrupt Obligors		¥	17,899 million
Non-Accrual Delinquent Loans		¥	408,788 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 is as follows.

 

		As of September 30, 2015
Loans Past Due for Three Months or More		¥	2,300 million

Loans Past Due for Three Months or More are loans on which payments of principal and/or interest have not been made for a period of three months or more since the next day following the first due date without such payments, and which are not included in Loans to Bankrupt Obligors, or Non-Accrual Delinquent Loans.

5. Balance of Restructured Loans is as follows.

 

		As of September 30, 2015
Restructured Loans		¥	514,709 million

Restructured Loans represent loans whose contracts were amended in favor of obligors (e.g., reduction of, or exemption from, stated interest, deferral of interest payments, extension of maturity dates and renunciation of claims) in order to assist or facilitate the restructuring of the obligors. Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans and Loans Past Due for Three Months or More are not included.

---

6. Total balance of Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans, Loans Past Due for Three Months or More, and Restructured Loans is as follows.

 

		As of September 30, 2015
Total balance		¥	943,698 million

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

7. In accordance with “Treatment of Accounting and Auditing of Application of Accounting Standard for Financial Instruments in the Bank Industry” (JICPA Industry Audit Committee Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sell or pledge these commercial bills, foreign exchange bills purchased and others. The face value of these bills amounted to ¥1,402,916 million.

8. The following assets were pledged as collateral.

 

		As of September 30, 2015
Trading Assets		¥	3,338,674 million
Securities		¥	11,058,489 million
Loans and Bills Discounted		¥	6,561,977 million
Other Assets		¥	1,014 million
Total		¥	20,960,156 million

The following liabilities were collateralized by the above assets.

 

Deposits		¥	1,251,505 million
Call Money and Bills Sold		¥	1,219,800 million
Payables under Repurchase Agreements		¥	8,112,077 million
Guarantee Deposits Received under Securities Lending Transactions		¥	1,856,998 million
Borrowed Money		¥	5,759,336 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 the following.

 

		As of September 30, 2015
Cash and Due from Banks		¥	35,021 million
Trading Assets		¥	143,933 million
Securities		¥	4,478,081 million
Loans and Bills Discounted		¥	195,148 million

Other Assets includes margins for futures transactions, guarantee deposits, and collateral pledged for financial instruments and others, and each balance is as follows.

 

		As of September 30, 2015
Margins for Futures Transactions		¥	212,273 million
Guarantee Deposits		¥	117,930 million
Collateral Pledged for Financial Instruments and Others		¥	587,294 million

---

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 balances of these contracts are as follows.

 

		As of September 30, 2015
Unutilized balances		¥	85,241,095 million
Of which, contracts of which the original contractual maturity is one year or less or which are unconditionally cancelable at any time		¥	65,173,268 million

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 the 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 is as follows.

 

		As of September 30, 2015
Accumulated Depreciation		¥	856,209 million

12. Borrowed Money includes subordinated borrowed money with a covenant that performance of the obligation is subordinated to that of other obligations as follows.

 

		As of September 30, 2015
Subordinated Borrowed Money		¥	332,000 million

13. Bonds and Notes includes subordinated bonds as follows.

 

		As of September 30, 2015
Subordinated Bonds		¥	1,710,703 million

14. The principal amount of money trusts with contracts indemnifying the principal amount, which is entrusted to domestic consolidated trust banking subsidiaries is as follows.

 

		As of September 30, 2015
Money trusts		¥	673,710 million

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 ¥1,020,045 million.

---

(Notes to Consolidated Statement of Income)

For the six months ended September 30, 2015

1. Other Ordinary Income includes the following.

 

		For the six months ended September 30, 2015
Gains on Sales of Stocks		¥	133,199 million

2. Other Ordinary Expenses includes the following.

 

		For the six months ended September 30, 2015
System Migration-related Expenses		¥	17,343 million
Losses on Sales of Stocks		¥	15,636 million
Losses on Write-offs of Loans		¥	14,220 million
Losses on Reimbursement of Matured Debentures		¥	8,720 million

3. Extraordinary Gains is as follows.

 

		For the six months ended September 30, 2015
Indemnity Receipt from the Erroneous Stock Order in the Securities Subsidiary		¥	12,822 million
Gains on Disposition of Fixed Assets		¥	6,751 million

4. Extraordinary Losses is as follows.

 

		For the six months ended September 30, 2015
Losses on Disposition of Fixed Assets		¥	1,602 million
Losses on Impairment of Fixed Assets		¥	390 million
Provision for Reserve for Contingent Liabilities from Financial Instruments and Exchange		¥	240 million

(Notes to Consolidated Statement of Cash Flows)

For the six months ended September 30, 2015

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:

 

		As of September 30, 2015
Cash and Due from Banks		¥	35,194,504 million
Due from Banks excluding central banks		¥	(1,266,585) million
Cash and Cash Equivalents		¥	33,927,919 million

---

(Securities)

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

For the six months ended September 30, 2015

1. Bonds Held to Maturity (as of September 30, 2015)

 

(Millions of yen)
		Type		Consolidated Balance Sheet Amount				Fair Value				Difference
Bonds Whose Fair Values Exceed the Consolidated Balance Sheet Amount		Japanese Government Bonds			4,060,068				4,093,023				32,954
		Foreign Bonds			381,512				382,753				1,240
		Sub-total			4,441,581				4,475,776				34,194
Bonds Whose Fair Values Do Not Exceed the Consolidated Balance Sheet Amount		Japanese Government Bonds			—				—				—
		Foreign Bonds			810,632				804,000				(6,631	)
		Sub-total			810,632				804,000				(6,631	)
Total					5,252,213				5,279,776				27,563

2. Other Securities (as of September 30, 2015)

 

(Millions of yen)
		Type		Consolidated Balance Sheet Amount				Acquisition Cost				Difference
Other Securities Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost		Stocks			3,500,852				1,590,697				1,910,155
		Bonds			13,645,897				13,592,667				53,229
		Japanese Government Bonds			11,474,833				11,451,230				23,603
		Japanese Local Government Bonds			215,651				211,313				4,338
		Short-term Bonds			—				—				—
		Japanese Corporate Bonds			1,955,412				1,930,124				25,287
		Other			7,118,932				6,887,852				231,080
		Foreign Bonds			6,311,621				6,265,341				46,279
		Other Debt Purchased			161,006				157,456				3,550
		Other			646,305				465,054				181,250
		Sub-total			24,265,682				22,071,217				2,194,465
Other Securities Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost		Stocks			289,977				333,043				(43,065	)
		Bonds			4,939,759				4,952,083				(12,323	)
		Japanese Government Bonds			4,123,729				4,124,659				(930	)
		Japanese Local Government Bonds			9,496				9,505				(8	)
		Short-term Bonds			99				99				—
		Japanese Corporate Bonds			806,433				817,818				(11,385	)
		Other			5,297,754				5,417,132				(119,378	)
		Foreign Bonds			3,258,891				3,309,848				(50,956	)
		Other Debt Purchased			250,125				250,804				(678	)
		Other			1,788,736				1,856,480				(67,743	)
		Sub-total			10,527,491				10,702,259				(174,768	)
Total					34,793,174				32,773,477				2,019,696

(Note) Unrealized Gains (Losses) includes ¥35,836 million, which was recognized in the statement of income by applying the fair-value hedge method.

---

3. Impairment (“Devaluation”) of Securities

Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the 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 period was ¥993 million.

The criteria for determining whether a security’s fair value has “significantly deteriorated” are outlined as follows:

 

•

Securities whose fair value is 50% or less of the acquisition cost

 

•

Securities whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower.

(Notes to Money Held in Trust)

For the six months ended September 30, 2015

 

1.	Money Held in Trust Held to Maturity (as of September 30, 2015)

There was no Money Held in Trust held to maturity.

 

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

 

(as of September 30, 2015)

(Millions of yen)

Consolidated Balance Sheet Amount

Acquisition Cost

Difference

Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost

Other in Money Held in Trust Whose Consolidated Balance Sheet  Amount Does Not Exceed Acquisition Cost

Other in Money Held in Trust

2,706

2,706

—

—

—

(Note) “Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost” and “Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost” are components of “Difference.”

---

(Business Segment Information)

For the six months ended September 30, 2015

1. Summary of reportable segment

Mizuho Financial Group engages in banking, trust banking, securities and other financial businesses through consolidated subsidiaries and affiliates. As these subsidiaries and affiliates are in different industries and regulatory environments, we disclose business segment information based on the following principal consolidated subsidiaries to measure the present and future cash flows properly:

Mizuho Bank, Ltd.(MHBK) : Banking business

Mizuho Trust & Banking Co., Ltd.(MHTB): Trust business • Banking business

Mizuho Securities Co., Ltd. (MHSC): Securities business

Operating segments of MHBK are aggregated based on the type of customer characteristics and are aggregated into six customer segments and Trading and Others. The six customer segments are Personal Banking, Retail Banking, Corporate Banking (Large Corporations), Corporate Banking, Financial Institutions & Public Sector Business, and International Banking. The targets of these segments are as follows:

 

•

Personal Banking: individuals (excluding individuals who belong to Retail Banking);

 

•

Retail Banking: business owners, land owners, lease holders, and SMEs;

 

•

Corporate Banking (Large Corporations): domestic large corporations and their affiliates;

 

•

Corporate Banking: relatively larger domestic SMEs (quasi listed companies);

 

•

Financial Institutions & Public Sector Business: financial institutions and central and local governments; and

 

•

International Banking: Japanese companies that conduct business overseas and business with non-Japanese companies.

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

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

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

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

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

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

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

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

---

		(Millions of yen)
		MHBK (Consolidated)																																								MHTB (Consolidated)				MHSC (Consolidated)				Others				MHFG (Consolidated)
		MHBK (Non-consolidated)																																Others
		Personal Banking				Retail Banking				Corporate Banking (Large Corporations)				Corporate Banking				Financial Institutions & Public Sector Business				International Banking				Trading and others
Gross profits: (excluding the amounts of credit costs of trust accounts)
Net interest income (expense)			107,700				38,200				85,400				48,800				16,300				86,800				47,658				430,858				68,866				499,724				20,147				1,917				1,721				523,511
Net noninterest income			19,500				25,600				69,600				35,800				14,900				93,600				66,421				325,421				17,465				342,886				60,982				172,765				31,710				608,345
Total			127,200				63,800				155,000				84,600				31,200				180,400				114,079				756,279				86,331				842,611				81,129				174,683				33,432				1,131,857
General and administrative expenses (excluding Non-Recurring Losses)			117,200				60,100				45,700				37,400				14,600				63,400				79,431				417,831				34,966				452,798				49,203				141,397				28,868				672,268
Others			—				—				—				—				—				—				—				—				(11,327	)			(11,327	)			(1,701	)			19				146				(12,863	)
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)			10,000				3,700				109,300				47,200				16,600				117,000				34,648				338,448				40,038				378,486				30,224				33,305				4,710				446,725

Notes:

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

(2)	“Others” includes items which should be eliminated as internal transactions between subsidiaries on a consolidated basis.

---

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

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

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

 

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

 

Millions of yen
Gross profits: (excluding the amounts of credit costs of trust accounts)		Amount
Total amount of the above segment information			1,131,857
Other Ordinary Income			188,664
General and Administrative Expenses			(673,456	)
Other Ordinary Expenses			(72,475	)
Ordinary Profits recorded in Consolidated Statement of Income			574,590
(2)    The total of Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) of segment information and Income before income taxes recorded in Consolidated Statement of Income
Millions of yen
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)		Amount
Total amount of the above segment information			446,725
Credit Costs for Trust Accounts			—
General and Administrative Expenses (non-recurring losses)			(1,187	)
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)			(14,050	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			17,998
Net Gains (Losses) related to Stocks			114,850
Net Extraordinary Gains (Losses)			17,340
Other			10,252
Income before income taxes recorded in Consolidated Statement of Income			591,930

[Related Information]

For the six months ended September 30, 2015

 

1.	Information about Geographic Areas

 

(1)	Ordinary Income

 

(Millions of yen)
Japan		Americas				Europe				Asia/Oceania excluding  Japan				Total
1,223,897			164,249				77,539				172,011				1,637,697

(Notes)

1.	Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations. The above table shows Ordinary Income instead of sales of non-financial companies.

2.

Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, the United States of America and others, Europe includes Ordinary Income of consolidated subsidiaries and branches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated subsidiaries and branches in Hong Kong, the Republic of Singapore and others.

---

(2)	Tangible Fixed Assets

Information on tangible fixed assets by geographical areas is not disclosed since tangible fixed assets in Japan accounted for more than 90% of tangible fixed assets on the consolidated balance sheet of MHFG.

 

2.	Information about Major Customers

Information about major customers is not disclosed since there are no outside customers accounted for more than 10% of Ordinary Income of MHFG.

[Information about Impairment Losses on Tangible Fixed Assets by Reportable Segment]

For the six months ended September 30, 2015

 

		(Millions of yen)
		MHBK (Consolidated)																																								MHTB (Consolidated)				MHSC (Consolidated)				Others				MHFG (Consolidated)
		MHBK (Non-consolidated)																																Others
		Personal Banking				Retail Banking				Corporate Banking (Large Corporations)				Corporate Banking				Financial Institutions & Public Sector Business				International Banking				Trading and others
Impairment Losses on Tangible Fixed Assets			—				—				—				—				—				—				269				269				0				270				—				120				—				390
[Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment]
For the six months ended September 30, 2015
		(Millions of yen)
		MHBK (Consolidated)																																								MHTB (Consolidated)				MHSC (Consolidated)				Others				MHFG (Consolidated)
		MHBK (Non-consolidated)																																Others
		Personal Banking				Retail Banking				Corporate Banking (Large Corporations)				Corporate Banking				Financial Institutions & Public Sector Business				International Banking				Trading and others
Amortization of Goodwill during this interim period			—				—				—				—				—				—				—				—				364				364				—				—				—				364
Balance as of the end of this interim period			—				—				—				—				—				—				—				—				9,145				9,145				—				—				—				9,145
[Information about Gain on Negative Goodwill Incurred by Reportable Segment]
For the six months ended September 30, 2015

There is no applicable information.