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Form 6-K MIZUHO FINANCIAL GROUP For: Aug 12

August 12, 2022 6:57 AM EDT

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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 August 2022

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

Japan

(Address of principal executive office)

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

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

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

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

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

 

 

 


THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF MIZUHO FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-266555) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.


SIGNATURES

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

 

Date:   August 12, 2022
Mizuho Financial Group, Inc.
By:  

/s/ Makoto Umemiya

Name:   Makoto Umemiya
Title:   Deputy President & Senior Executive Officer / Group CFO


UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2022

On August 12, 2022, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2022 prepared in accordance with Japanese GAAP as part of our quarterly securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. We have included in this report on Form 6-K an English translation of the unaudited quarterly consolidated financial statements and the notes thereto included in such quarterly securities report. Japanese GAAP differs in certain respects from U.S. GAAP. For a description of certain differences between U.S. GAAP and Japanese GAAP, see “Item 5. Operating and Financial Review and Prospects—Reconciliation with Japanese GAAP” in our most recent annual report on Form 20-F filed with the U.S. Securities Exchange Commission.

 

- 1 -


Financial Information

 

1.

The quarterly consolidated financial statements of Mizuho Financial Group, Inc. (“MHFG”) are prepared in accordance with the “Ordinance on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” (Cabinet Office Ordinance No. 64 of 2007). The classification of assets and liabilities and that of income and expenses are in accordance with the “Ordinance for Enforcement of the Banking Act” (Ordinance of the Ministry of Finance No. 10 of 1982).

 

2.

Ernst & Young ShinNihon LLC conducted a quarterly review on the quarterly consolidated financial statements of MHFG for the three months ended June 30, 2022, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

 

- 2 -


I.

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

 

    

(Millions of yen)

 
    

As of
March 31, 2022

   

As of
June 30, 2022

 

Assets

          

Cash and Due from Banks

        51,359,301          53,943,945  

Call Loans and Bills Purchased

        940,008          1,001,480  

Receivables under Resale Agreements

        12,750,363          12,749,686  

Guarantee Deposits Paid under Securities Borrowing Transactions

        2,340,089          2,095,473  

Other Debt Purchased

        3,476,021          3,455,681  

Trading Assets

        13,221,415          16,874,136  

Money Held in Trust

        591,183          580,751  

Securities

   *1, *2      44,641,060     *1, *2      43,386,299  

Loans and Bills Discounted

   *1      84,736,280     *1      88,851,747  

Foreign Exchange Assets

   *1      2,627,492     *1      3,461,306  

Derivatives other than for Trading Assets

        2,277,160          3,553,686  

Other Assets

   *1      7,797,796     *1      8,838,016  

Tangible Fixed Assets

        1,095,977          1,097,290  

Intangible Fixed Assets

        601,292          601,425  

Net Defined Benefit Asset

        863,217          861,773  

Deferred Tax Assets

        184,594          353,533  

Customers’ Liabilities for Acceptances and Guarantees

   *1      8,346,878     *1      9,417,890  

Reserves for Possible Losses on Loans

        (783,886        (503,058

Reserve for Possible Losses on Investments

        (107        (107
  

 

   

 

 

Total Assets

        237,066,142          250,620,959  
  

 

   

 

 

 

- 3 -


    

(Millions of yen)

 
    

As of
March 31, 2022

   

As of
June 30, 2022

 

Liabilities

          

Deposits

             138,830,872               137,290,100  

Negotiable Certificates of Deposit

        16,868,931          21,315,830  

Call Money and Bills Sold

        1,278,050          1,609,126  

Payables under Repurchase Agreements

        20,068,779          24,124,124  

Guarantee Deposits Received under Securities Lending Transactions

        1,172,248          1,153,134  

Commercial Paper

        1,775,859          1,448,280  

Trading Liabilities

        9,608,976          13,096,908  

Borrowed Money

        6,590,527          6,301,917  

Foreign Exchange Liabilities

        1,508,453          644,324  

Short-term Bonds

        537,167          521,031  

Bonds and Notes

        10,714,004          11,523,527  

Due to Trust Accounts

        1,167,284          1,120,207  

Derivatives other than for Trading Liabilities

        2,770,852          4,502,928  

Other Liabilities

        6,301,484          7,345,165  

Reserve for Bonus Payments

        120,052          30,766  

Reserve for Variable Compensation

        2,278          2,534  

Net Defined Benefit Liability

        71,774          70,836  

Reserve for Director and Corporate Auditor Retirement Benefits

        557          426  

Reserve for Possible Losses on Sales of Loans

        1,309          2,967  

Reserve for Contingencies

        6,622          7,890  

Reserve for Reimbursement of Deposits

        17,620          16,577  

Reserve for Reimbursement of Debentures

        10,504          9,771  

Reserves under Special Laws

        3,132          3,131  

Deferred Tax Liabilities

        30,923          22,203  

Deferred Tax Liabilities for Revaluation Reserve for Land

        59,962          59,874  

Acceptances and Guarantees

        8,346,878          9,417,890  
  

 

   

 

 

Total Liabilities

        227,865,110          241,641,478  
  

 

   

 

 

Net Assets

          

Common Stock and Preferred Stock

        2,256,767          2,256,767  

Capital Surplus

        1,125,324          1,129,388  

Retained Earnings

        4,756,435          4,814,355  

Treasury Stock

        (8,342        (9,906
  

 

   

 

 

Total Shareholders’ Equity

        8,130,185          8,190,605  
  

 

   

 

 

Net Unrealized Gains (Losses) on Other Securities

        719,822          403,818  

Deferred Gains or Losses on Hedges

        (76,757        (104,189

Revaluation Reserve for Land

        132,156          131,957  

Foreign Currency Translation Adjustments

        2,346          127,222  

Remeasurements of Defined Benefit Plans

        169,652          158,660  

Own Credit Risk Adjustments, Net of Tax

        (23        (39
  

 

   

 

 

Total Accumulated Other Comprehensive Income

        947,197          717,429  
  

 

   

 

 

Stock Acquisition Rights

        94          69  

Non-controlling Interests

        123,555          71,375  
  

 

   

 

 

Total Net Assets

        9,201,031          8,979,480  
  

 

   

 

 

Total Liabilities and Net Assets

        237,066,142          250,620,959  
  

 

   

 

 

 

- 4 -


(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income

      Quarterly Consolidated Statement of Income

 

    

(Millions of yen)

 
    

For the three months ended

June 30, 2021

   

For the three months ended

June 30, 2022

 

Ordinary Income

       737,009         1,235,090  

Interest Income

       293,342         444,862  

Interest on Loans and Bills Discounted

       210,675         275,979  

Interest and Dividends on Securities

       46,524         80,623  

Fiduciary Income

       14,997         14,299  

Fee and Commission Income

       196,859         200,034  

Trading Income

       103,004          355,522  

Other Operating Income

       55,348         180,144  

Other Ordinary Income

   *1     73,458     *1     40,227  

Ordinary Expenses

       518,251           1,030,852  

Interest Expenses

       70,470         191,616  

Interest on Deposits

       14,464         56,662  

Fee and Commission Expenses

       39,405         40,854  

Trading Expenses

       128         348,543  

Other Operating Expenses

       26,394         21,909  

General and Administrative Expenses

       335,331         350,591  

Other Ordinary Expenses

                    *2     46,521                      *2     77,337  
  

 

   

 

 

Ordinary Profits

       218,757         204,237  
  

 

   

 

 

Extraordinary Gains

   *3     28,954     *3     3,580  

Extraordinary Losses

   *4     1,530     *4     463  
  

 

   

 

 

Income before Income Taxes

                        246,181                          207,355  
  

 

   

 

 

Income Taxes:

        

Current

       32,687         64,411  

Deferred

       (39,393       (18,875
  

 

   

 

 

Total Income Taxes

       (6,705       45,535  
  

 

   

 

 

Profit

       252,887         161,819  
  

 

   

 

 

Profit Attributable to Non-controlling Interests

       2,345         2,525  
  

 

   

 

 

Profit Attributable to Owners of Parent

       250,541         159,294  
  

 

   

 

 

 

- 5 -


      Quarterly Consolidated Statement of Comprehensive Income

 

   
    

(Millions of yen)

 
    

For the three months ended

June 30, 2021

   

For the three months ended

June 30, 2022

 

Profit

       252,887           161,819    

Other Comprehensive Income

       (48,156       (228,652

Net Unrealized Gains (Losses) on Other Securities

       (53,348       (317,031

Deferred Gains or Losses on Hedges

       (8,635       (27,323

Foreign Currency Translation Adjustments

       38,509         115,854  

Remeasurements of Defined Benefit Plans

                             (32,036       (10,934

Own Credit Risk Adjustments, Net of Tax

       —                                 (16

Share of Other Comprehensive Income of Associates Accounted for Using Equity Method

       7,353                            10,800  
  

 

   

 

 

Comprehensive Income

       204,730         (66,832
  

 

   

 

 

(Breakdown)

        

Comprehensive Income Attributable to Owners of Parent

                        200,559         (70,274

Comprehensive Income Attributable to Non-controlling Interests

       4,170         3,442  

 

- 6 -


Notes to Quarterly Consolidated Financial Statements

Changes in Accounting Policies

(Implementation Guidance on Accounting Standard for Fair Value Measurement)

MHFG has applied “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, June 17, 2021 (referred to as “Fair Value Accounting Standard Implementation Guidance”)) from the beginning of the first quarter ended June 30, 2022. In accordance with the transitional treatment set out in Article 27-2 of “Fair Value Accounting Standard Implementation Guidance”, MHFG applies the new accounting policy set forth in “Fair Value Accounting Standard Implementation Guidance” prospectively. As a result, some Investment trusts and others are calculated using net asset value, etc., as of the calculation date of the fair value.

Additional Information

The Board Benefit Trust (“BBT”) Program

Since MHFG operates its business to contribute to the creation of value for diverse stakeholders and realize improved corporate value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy defined under the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a stock compensation program using a trust (the “Program”) that functions as an incentive for each Director, Group Executive Officer, and Operating officers to exert maximum effort in performing his or her duties, and also as consideration for such exertion of effort.

 

(1)

Outline of the Program

The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will be acquired through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be distributed to Directors, Executive Officers, and Operating officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) and other entities in accordance with the Rules on Distribution of Shares to be prescribed in advance. The framework consists of the stock compensation program based on the Company Group Officer’s responsibilities and others in their respective company (“Stock Compensation I”), the stock compensation program based on the performance evaluation of the Company Group (“Stock Compensation II”) and the stock compensation program based on Company Group Officer’s responsibilities in their respective company and the performance evaluation of the Company Group, which distributes MHFG’s shares to Operating officers of MHFG and certain consolidated subsidiaries (“Stock Benefit”).

Stock Compensation I will be paid at the time of retirement in the form of shares of MHFG calculated based on their responsibilities and others. A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or the individual.

Stock Compensation II will be paid in the form of shares of MHFG and will be deferred over three years, which is calculated based on the status of achieving our Five-Year Business Plan. A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or the individual.

Stock Benefit will be paid in the collective form of MHFG’s share, which is based on responsibilities in their respective company and the performance evaluation of the Company Group. Reduction and forfeit of the benefit can occur in the program.

Upon the payment of stock compensation under the Program, MHFG may, for a certain portion, pay a monetary amount equivalent to the market value of its stock in lieu of stock compensation in accordance with the Rules on Distribution of Shares.

Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.

 

- 7 -


(2)

MHFG’s Shares Outstanding in the Trust

MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount (excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of June 30, 2022 was ¥5,939 million for 3,737 thousand shares (the carrying amount as of March 31, 2022 was ¥4,949 million for 3,079 thousand shares).

Reserves for Possible Losses on Loans

In light of the principles set forth in the report entitled “Japanese Financial Services Agency (“JFSA”)’s supervisory approaches to lending business and loan loss provisioning” published by JFSA in December 18, 2019, we have reflected the potential impact of the COVID-19, the Russia-Ukraine situation and others on Reserves for Possible Losses on Loans for some credit. More specifically, we used the assumptions based on the forecasted GDP growth rate, financial variables including resource prices, exchange rates, and others, the future prospect of business environment of each industry, the impact of economic sanctions inside and outside of Russia, and the Russia-Ukraine situation and others in addition to the spread of COVID-19. Expected losses affected by these impacts in the future are recognized as Reserves for Possible Losses on Loans. There are no material changes in the methods of the above accounting estimates and the major assumptions used in the consolidated financial statements from those of the previous fiscal year.

In addition, expected losses which are assumed may occur in the future due to difficulties in foreign currency cash management influenced by economic sanctions against Russia, in claims for which transfer risk has not been avoided, are recognized as Reserve for Possible Losses on Loans to Restructuring Countries.

The expected losses are calculated based on evaluation of Russian country risk and past defaults which are announced by external rating firms and others. The amount of Reserve for Possible Losses on Loans to Restructuring Countries for the three months ended June 30, 2022 is ¥57,474 million, which includes ¥55,845 million against the claims related to Russia.

Application of Treatment of Accounting and Disclosure for Applying the Japanese Group Relief System

MHFG and some domestic consolidated subsidiaries of the Group have translated the Consolidated Tax System into the Japanese Group Relief System from the first quarter ended June 30, 2022. In accordance with this, accounting and disclosure of corporate tax, local corporate tax and tax-effect accounting are in compliance with “Treatment of accounting and disclosure for applying the Japanese Group Relief System (Practical Solutions No. 42, August 12, 2021 (“Practical Solutions No.42”)). In addition, based on Practical Solutions No. 42, Paragraph 32 (1), MHFG regards that there is no impact from the changes in accounting policies associated with the effects of the application of Practical Solutions No.42.

 

- 8 -


Notes to Quarterly Consolidated Balance Sheet

 

*1.

Claims based on Banking Act and the Act on Emergency Measures for the Revitalization of Financial Functions are as follows. The claims consist of those included in the accounts of bonds included in “Securities” (its principal’s redemption and interest payments are guaranteed, in whole or in part, and the corporate bonds issue is limited to a private placement of the securities (Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)), “Loans,” “Foreign Exchanges Assets,” accrued interest and suspense payment in “Other Assets” and “Customers’ Liabilities for Acceptances and Guarantees” in the consolidated balance sheet, and securities in the notes (limited to those under a loan for use or lease agreement) that are in case of loan.

 

                                                                                                         
     (Millions of yen)  
     As of March 31, 2022      As of June 30, 2022  

Claims against Bankrupt and Substantially Bankrupt Obligors

     50,846        93,420  

Claims with Collection Risk

     722,222        353,444  

Claims for Special Attention

     354,034        364,901  

Loans Past Due for 3 Months or More

     2,498        19,204  

Restructured Loans

     351,535        345,697  

Sub-total

     1,127,104        811,765  

Normal Claims

     96,224,900        102,655,877  

Total

       97,352,004        103,467,643  

The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

 

*2.

Amounts of 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 Act)

 

                                                                                                         
     (Millions of yen)  
     As of March 31, 2022      As of June 30, 2022  

                     

         1,252,386            1,222,723  

 

- 9 -


Notes to Quarterly Consolidated Statement of Income

 

*1.

Other Ordinary Income includes the following:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2021
     For the three months  ended
June 30, 2022
 

Gains on Sales of Stocks

              49,408                 24,659  

 

*2.

Other Ordinary Expenses includes the following:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2021
     For the three months  ended
June 30, 2022
 

Losses on Write-offs of Loans

                5,402                 50,984  

 

*3.

Extraordinary Gains includes the following:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2021
     For the three months  ended
June 30, 2022
 

Gains on Cancellation of Employee Retirement Benefit Trust

              28,656                   3,254  

 

*4.

Extraordinary Losses is as follows:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2021
     For the three months  ended
June 30, 2022
 

Losses on Disposition of Fixed Assets

                1,104                      463  

Losses on Impairment of Fixed Assets

     425        —    

 

- 10 -


Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the three months ended June 30, 2022. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the three months ended June 30, 2021 and 2022 are as follows:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2021
     For the three months  ended
June 30, 2022
 

Depreciation

              41,760                 38,709  

Amortization of Goodwill

     932        942  

Changes in Net Assets

For the three months ended June 30, 2021

 

1.

Cash dividends paid

 

Resolution

 

Type

  Cash Dividends
(Millions of Yen)
    Cash Dividends
per Share
(Yen)
    Record Date     Effective Date     Resource of
Dividends
 

May 14, 2021

The Board of Directors

  Common Stock      95,201       37.50       March 31, 2021       June 8, 2021      

Retained

Earnings

 

 

 

(Note)          Cash dividends based on the resolution of the Board of Directors held on May 14, 2021 include ¥95 million of cash dividends on treasury stock held by BBT trust account.

For the three months ended June 30, 2022

 

1.

Cash dividends paid

 

Resolution

 

Type

  Cash Dividends
(Millions of Yen)
    Cash Dividends
per Share
(Yen)
    Record Date     Effective Date     Resource of
Dividends
 

May 13, 2022

The Board of Directors

  Common Stock     101,542       40.00       March 31, 2022       June 6, 2022      

Retained

Earnings

 

 

 

(Note)          Cash dividends based on the resolution of the Board of Directors held on May 13, 2022 include ¥123 million of cash dividends on treasury stock held by BBT trust account.

 

- 11 -


Business Segment Information, etc.

Business Segment Information

 

1.

Summary of reportable segment

MHFG has introduced an in-house company system based on the group’s diverse customer segments. The aim of this system is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking, trust and securities functions under a holding company structure, to speedily provide high-quality financial services that closely match customer needs.

Specifically, the company system is classified into the following five in-house companies, each based on a customer segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company, the Global Markets Company, and the Asset Management Company.

The services that each in-house company is in charge of are as follows:

Retail & Business Banking Company:

Services for individual customers, small and medium-sized enterprises and middle market firms in Japan

Corporate & Institutional Company:

Services for large corporations, financial institutions and public corporations in Japan

Global Corporate Company:

Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.

Global Markets Company:

Investment services with respect to interest rates, equities and credits, etc. and other services

Asset Management Company:

Development of products and provision of services that match the asset management needs of its wide range of customers from individuals to institutional investors

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. Management measures the performance of each of the operating segments in accordance with internal managerial accounting rules and practices.

 

- 12 -


2.

Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others, 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) + Net gains or losses related to ETFs and others by reportable segment

For the three months ended June 30, 2021

 

     (Millions of yen)  
     MHFG (Consolidated)  
     Retail &
Business
Banking
Company
    Corporate &
Institutional
Company
     Global
Corporate
Company
     Global
Markets
Company
     Asset
Management
Company
     Others
(Note 2)
       

Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others

     162,895       102,491        141,270        124,779        14,289        (6,145     539,578  

General and administrative expenses (excluding Non-Recurring Losses and others)

     162,214       51,308        70,771        55,856        8,183        (4,963     343,368  

Equity in income from investments in affiliates

     6,031        1,275        5,735        —          321        (607     12,754  

Amortization of goodwill and others

     540       24        90        201        1,812        (520     2,146  

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) + Net gains or losses related to ETFs and others

      6,172       52,434        76,144        68,722        4,615        (1,269     206,817  

 

(Notes)    1.    “Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others” is reported instead of sales reported by general corporations. Net gains or losses related to ETFs and others amounted to ¥12,427 million, of which ¥12,444 million is included in the Global Markets Company.
   2.    “Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
   3.    Following the change in allocation method for transactions between each segment and “Others” made in April 2022, reclassification was made on the above table to reflect the relevant change.

 

- 13 -


For the three months ended June 30, 2022

 

     (Millions of yen)  
     MHFG (Consolidated)  
     Retail &
Business
Banking
Company
    Corporate &
Institutional
Company
     Global
Corporate
Company
     Global
Markets
Company
     Asset
Management
Company
     Others
(Note 2)
       

Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others

     154,164       102,645        163,267        149,137        13,983         9,970       593,166  

General and administrative expenses (excluding Non-Recurring Losses and others)

     156,964       50,900        75,123        62,540        8,343        4,688       358,558  

Equity in income from investments in affiliates

     (2,196     1,535        6,647        —          21        (432     5,574  

Amortization of goodwill and others

     518       23        90        193        1,715        250       2,789  

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) + Net gains or losses related to ETFs and others

     (5,514     53,257        94,701        86,404        3,946        4,598       237,392  

 

(Notes)    1.    “Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others” is reported instead of sales reported by general corporations. Net gains or losses related to ETFs and others amounted to ¥1,227 million, of which ¥130 million is included in the Global Markets Company.
   2.    “Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.

 

- 14 -


3.

The difference between the total amounts of 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) + Net gains or losses related to ETFs and others of reportable segments and the recorded amounts in the Quarterly Consolidated Statement of Income, and the contents of the difference (Matters relating to adjustment to difference)

The above total amounts of 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) + Net gains or losses related to ETFs and others derived from internal management reporting are different from Income before income taxes recorded in the Quarterly Consolidated Statement of Income.

The contents of the difference for the three months ended June 30, 2021 and 2022, are as follows:

 

     (Millions of yen)  
     For the three months ended
June 30, 2021
     For the three months ended
June 30, 2022
 

Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net Gains (Losses) related to ETFs and others

     206,817        237,392  

Credit Costs for Trust Accounts

     —          —    

General and Administrative Expenses (non-recurring losses)

     10,183        10,757  

Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)

     (5,483      (67,067

Gains on Reversal of Reserves for Possible Losses on Loans, and others

     8,147        2,209  

Net Gains (Losses) related to Stocks—Net Gains (Losses) related to ETFs and others

     11,540        19,223  

Net Extraordinary Gains (Losses)

     27,423        3,117  

Others

     (12,449      1,722  
  

 

 

    

 

 

 

Income before Income Taxes recorded in Quarterly Consolidated Statement of Income

     246,181        207,355  
  

 

 

    

 

 

 

 

- 15 -


Financial Instruments

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2022.

Securities

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2022.

Money Held in Trust

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2022.

 

- 16 -


Derivatives Information

The classification, type, contract value, fair value and unrealized gains (losses) which are material for the operation of corporate group and have changed significantly in comparison to the end of fiscal year ended March 31, 2022 are as follows;

 

(1)

Interest Rate and Transactions

As of March 31, 2022

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

  

Interest Rate Futures

     66,263,358        456       456  

Over-the-Counter

  

Interest Rate Swaps

        1,254,981,648        2       2  

Inter-Company or Internal Transactions

  

Interest Rate Swaps

     12,501,296           81,886           81,886   
     

 

 

    

 

 

   

 

 

 

Total

     —                  82,345               82,345  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
  2.    Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Committee Practical Guideline No. 24, March 17, 2022) and others are excluded from the above table.

As of June 30, 2022

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

  

Interest Rate Futures

     127,935,935        84,274       84,274  

Over-the-Counter

  

Interest Rate Swaps

        1,323,132,975        (108,287     (108,287

Inter-Company or Internal Transactions

  

Interest Rate Swaps

     17,754,965              291,876             291,876  
     

 

 

    

 

 

   

 

 

 

Total

     —          267,863       267,863  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
  2.    Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Committee Practical Guideline No. 24, March 17, 2022) and others are excluded from the above table.

 

- 17 -


(2)

Currency-Related Transactions

As of March 31, 2022

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Swaps

     84,601,373        74,412             111,140  
  

Forwards

           120,419,130        (80,667     (80,667

Inter-Company or Internal Transactions

  

Swaps

     3,792,499              219,192       559  
  

Forwards

     1,526        80       80  
     

 

 

    

 

 

   

 

 

 

Total

     —          213,018       31,112  
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
   2.    The following transactions are excluded from the above table:
     

•   Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Committee Practical Guideline No. 25, October 8, 2020) and others.

     

•   Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the consolidated balance sheet.

     

•   Transactions denominated in foreign currencies which are eliminated in consolidation.

As of June 30, 2022

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Swaps

     92,563,935        76,695             141,959  
  

Forwards

           140,203,101        (221,185     (221,185

Inter-Company or Internal Transactions

  

Swaps

     4,097,509              512,999       (24,216
  

Forwards

     1,868        97       97  
     

 

 

    

 

 

   

 

 

 

Total

     —          368,606       (103,344
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
   2.    The following transactions are excluded from the above table:
     

•   Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Committee Practical Guideline No. 25, October 8, 2020) and others.

     

•   Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the quarterly consolidated balance sheet.

     

•   Transactions denominated in foreign currencies which are eliminated in consolidation.

 

- 18 -


(3)

Stock-Related Transactions

As of March 31, 2022

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Equity Linked Swaps

                  994,753        80,207        80,207   
     

 

 

    

 

 

   

 

 

 

Total

     —                  80,207               80,207  
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
   2.    Derivative transactions qualifying for hedge accounting are excluded from the above table.

As of June 30, 2022

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Equity Linked Swaps

               1,006,693        123,315        123,315   
     

 

 

    

 

 

   

 

 

 

Total

     —                123,315             123,315  
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
   2.    Derivative transactions qualifying for hedge accounting are excluded from the above table.

 

- 19 -


Revenue recognition

 

     (Millions of yen)  
     For the three months ended
June 30, 2021
     For the three months ended
June 30, 2022
 

Ordinary Income

     737,009        1,235,090  

Fee and Commission Income

     196,859        200,034  

Deposits and Lending business (1)

     53,169        63,524  

Securities-related business

     50,330        41,580  

Remittance business

     27,328        26,909  

Trust-related business

     17,241        14,797  

Guarantee-related business (2)

     8,143        10,163  

Agency business

     8,095        8,686  

Fees for other customer services

     32,549        34,371  

Fiduciary Income

     14,997        14,299  
  

 

 

    

 

 

 

Other Ordinary Income (1)

     525,152        1,020,757  
  

 

 

    

 

 

 

Notes:

 

(1)

Part of these amounts are considered to be revenues from contracts that are within the scope of “Accounting Standard for Revenue Recognition”.

(2)

These amounts are revenues from contracts that do not meet the scope of “Accounting Standard for Revenue Recognition”.

(3)

In the above table, revenues that are within the scope of “Accounting Standard for Revenue Recognition” are mainly generated from “Retail & Business Banking Company”, “Corporate & Institutional Company” and “Global Corporate Company”.

 

- 20 -


Per Share Information

Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock are based on the following information:

 

     For the three months ended
June 30, 2021
     For the three months ended
June 30, 2022
 

(1)   Net Income per Share of Common Stock

   Yen      98.81        62.85  

(The basis used for calculating Net Income per Share of Common Stock)

     

Profit Attributable to Owners of Parent

   Millions of yen      250,541        159,294  

Amount not attributable to Common Stock

   Millions of yen      —          —    

Profit Attributable to Owners of Parent related to Common Stock

   Millions of yen      250,541        159,294  

Average Outstanding Shares of Common Stock (during the period)

   Thousands of shares      2,535,338        2,534,214  

(2)   Diluted Net Income per Share of Common Stock

   Yen      98.81        62.85  

(The basis used for calculating Diluted Net Income per Share of Common Stock)

     

Adjustment to Profit Attributable to Owners of Parent

   Millions of yen      —          —    

Increased Number of Shares of Common Stock

   Thousands of shares      77        52  

Stock Acquisition Rights

   Thousands of shares      77        52  

Description of dilutive securities which were not included in the calculation of Diluted Net Income per Share of Common Stock as they have no dilutive effects and in which significant changes occurred after the end of the previous fiscal year

        —          —    

 

(Note)

          In the calculation of Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock, MHFG shares outstanding in BBT trust account that were recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during the period. The average number of such Treasury Stock shares deducted during the three months ended June 30, 2021 was 2,499 thousand, and the average number of such Treasury Stock shares deducted during the three months ended June 30, 2022 was 3,289 thousand.

 

- 21 -


Subsequent Events

(Debt Waiver and Debt Equity Swap to Our Business Partner)

Marelli Holdings Co., Ltd. (the “Company”), a business partner of Mizuho Bank, Ltd., a subsidiary of MHFG, declared the application for a simplified rehabilitation proceeding to Tokyo District Court. The business reconstruction plan was accepted by the court as of August 9, 2022.

In light of this event, additional investment was made by KKR, a shareholder of the Company, and Mizuho Bank, Ltd. waived some of its claims to the Company and exchanged some of its claims for preferred stocks of the Company as a contribution in kind (“DES”).

(1), (2) and (3) are described based on the data as of June 30, 2022.

(1) Outline of the Company

Company Name: Marelli Holdings Co., Ltd.

Address: 2-1917 Nisshin-cho, Kita-ku, Saitama-city, Saitama

Representative: Hiroshi Moriya, Representative Director

    David John Slump, Representative Director

Line of Business: Management of auto-parts manufacturing subsidiaries

Capital Stock: 100 million yen

Date of Foundation: October 6, 2016

(2) Amount and type of claims on the Company and its subsidiaries

Loans and other: 404.2 billion yen

(3) Amount of Debt Waiver and DES

Debt Waiver: 132.6 billion yen

DES:                  7.8 billion yen

(4) Influences on MHFG Group from the Fact

In response to the application for a simplified rehabilitation proceeding, we have already applied the necessary accounting treatment in this first quarter, and there is no additional profit and loss impact in connection with the Debt Waiver and DES mentioned in (3) above.

We will review the borrower rating and allowances properly, considering the decision to accept the business reconstruction plan and the additional investment from KKR.

 

- 22 -


II.

Others

At the meeting of the Board of Directors held on May 13, 2022, the year-end cash dividends for the 20th term were resolved as follows:

 

Total amount of year-end cash dividends

     ¥101,542 million  

Year-end cash dividends per share

  

Common Stock

     ¥40  

Effective date and starting date of dividend payments

     June 6, 2022  

 

- 23 -



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