UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2012

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-1, Marunouchi 2-chome

Chiyoda-ku, Tokyo 100-8333

Japan

(Address of principal executive office)

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

Form 20-F  x    Form 40-F  ¨

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

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

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

Yes  ¨    No  x

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

 

 

 

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SIGNATURES

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

 

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For Immediate Release:		July 31, 2012

 

		Consolidated Financial Statements for the First Quarter of Fiscal 2012 <Under Japanese GAAP>

 

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

 

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

Filing of Shihanki Hokokusho (scheduled):		August 14, 2012		Commencement of Dividend Payment (scheduled):		—
				Trading Accounts:		Established
Supplementary Materials on Quarterly Results:		Attached
IR Conference on Quarterly Results:		Not scheduled

Amounts less than one million yen are rounded down.

1. Financial Highlights for the First Quarter of Fiscal 2012 (for the three months ended June 30, 2012)

(1) Consolidated Results of Operations

 

		(%: Changes from the corresponding period of the previous fiscal year)
		Ordinary Income								Ordinary Profits								Net Income
		¥ million				%				¥ million				%				¥ million				%
1Q F2012			738,048				16.6				209,141				80.7				183,920				90.8
1Q F2011			632,871				(11.2	)			115,729				(45.3	)			96,364				(35.6	)

 

Note:		Comprehensive Income: 1Q F2012: ¥(1,587) million, —%; 1Q F2011 ¥32,295 million, (71.2)%

 

		Net Income per Share  of Common Stock				Diluted Net Income per Share of Common Stock
		¥				¥
1Q F2012			7.65				7.25
1Q F2011			4.42				4.14

(2) Consolidated Financial Conditions

 

		Total Assets				Total Net Assets				Own Capital Ratio
		¥ million				¥ million				%
1Q F2012			165,058,363				6,604,055				2.9
Fiscal 2011			165,360,501				6,869,295				2.9

 

Reference:		Own Capital: As of June 30, 2012: ¥4,811,544 million; As of March 31, 2012: ¥4,909,437 million

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

2. Cash Dividends for Shareholders of Common Stock

 

		Annual Cash Dividends per Share
		First Quarter-end				Second Quarter-end				Third Quarter-end				Fiscal Year-end				Total
		¥				¥				¥				¥				¥
Fiscal 2011			—				3.00				—				3.00				6.00
Fiscal 2012			—
Fiscal 2012 (estimate)							3.00				—				3.00				6.00

 

Notes:		1.		Revision of the latest announced estimates for cash dividends for shareholders of common stock: No
		2.		Please refer to the following “Cash Dividends for Shareholders of Classified Stock” for cash dividends for shareholders of classified stock (unlisted), the rights of which are different from those of common stock.

3. Earnings Estimates for Fiscal 2012 (for the fiscal year ending March 31, 2013)

 

		(%: Changes from the corresponding period of the previous fiscal year)
						Net Income								Net Income per Share  of Common Stock
						¥ million				%				¥
1H F2012							—				—				—
Fiscal 2012							500,000				3.1				20.45

 

Notes:		1.		Revision of the latest announced earnings estimates for fiscal 2012: No
		2.		The average number of shares of outstanding common stock for fiscal 2012 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 1Q” and “the number of shares as of June 30, 2012 (which is expected to be the average number of shares during the remaining term of fiscal 2012)” is used.
				•		It does not take into account any increase in the number of shares of common stock due to requests for acquisition (conversion) of the Eleventh Series Class XI Preferred Stock.

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Mizuho Financial Group, Inc.

 

* Notes

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

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

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

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

‚ Changes in accounting policies other than  above: No

ƒ Changes in accounting estimates: Yes

„ Restatements: No

 

(Note)

As changes during this period correpond to changes in accounting policies which are difficult to distinguish from changes in accounting estimates, “Changes in accounting policies due to revisions of accounting standards, etc.” and “Changes in accounting estimates” are presented with “Yes”. For more information, please refer to “(1) Changes in Accounting Policies and Accounting Estimates / Restatements” on page 1- 3 of the attachment.

(4) Issued Shares of Common Stock

 

(*Presentation of Implementation Status of Quarterly Review Procedure)

The review procedure of quarterly financial statements based on the Financial Instruments and Exchange Law has not been completed at the time of the disclosure of these Consolidated Financial Statements.

 

 

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

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

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

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

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

 

 

 

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Mizuho Financial Group, Inc.

 

Cash Dividends for Shareholders of Classified Stock

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

 

		Annual Cash Dividends per Share
		First Quarter-end				Second Quarter-end				Third Quarter-end				Fiscal Year-end				Total
		¥				¥				¥				¥				¥
Eleventh Series Class XI Preferred Stock
Fiscal 2011			—				10.00				—				10.00				20.00
Fiscal 2012			—
Fiscal 2012 (estimate)							10.00				—				10.00				20.00
Thirteenth Series Class XIII Preferred Stock
Fiscal 2011			—				15.00				—				15.00				30.00
Fiscal 2012			—
Fiscal 2012 (estimate)							15.00				—				15.00				30.00

 

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Mizuho Financial Group, Inc.

 

m Contents of Attachment

 

1.		Qualitative Information related to Financial Statements			p.1-2
		(1) Qualitative Information related to Consolidated Results of Operations			p.1-2
		(2) Qualitative Information related to Consolidated Financial Conditions			p.1-2
		(3) Qualitative Information related to Consolidated Earnings Estimates			p.1-2
2.		Matters related to Summary Information (Notes)			p.1-3
		(1) Changes in Accounting Policies and Accounting Estimates / Restatements			p.1-3
3.		Quarterly Consolidated Financial Statements			p.1-4
		(1) Consolidated Balance Sheets			p.1-4
		(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			p.1-6
		(3) Note for Assumption of Going Concern			p.1-8
		(4) Note for Significant Changes in the Amount of Shareholders’ Equity			p.1-8
		(5) Additional Information			p.1-8

[Note to XBRL]

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

 

1-1

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Mizuho Financial Group, Inc.

 

1. Qualitative Information related to Financial Statements

(Please refer to “Summary of Financial Results for the First Quarter of Fiscal 2012” for more information.)

(1) Qualitative Information related to Consolidated Results of Operations

Reviewing the economic environment during the first quarter of fiscal 2012, destabilization of the international financial and capital markets caused by the debt problems in Europe is continuing and the decline in exports to Europe is impacting the real economies of newly developing countries. As a result, the recovery of the global economy still remains weak and economic slowdown is spreading as a whole.

In the United States, gradual recovery in the economy continues, but the speed of recovery of production and employment is slowing down currently. As for the future direction of the economy, in addition to the fact that the government is pressed to implement a tight fiscal policy due to the constraints imposed by the debt ceiling, there is still pressure to squeeze debt on a household level, increasing the downside risks to the economy. In Europe, there is continuing economic negative growth, with the fiscal problems experienced by certain countries impacting the real economy. As a result of the re-election, although concern over Greece leaving the Euro has decreased for the present, Spain is now requesting financial assistance from the EU, indicating that the future of the European economy holds little prospect of a drastic speedy fix for the Euro-area’s debt problems, and it is difficult to predict the effects on the global economy.

In Asia, although the region continues to maintain relatively strong economic growth, its economy is slowing as a whole from the impact of, among others, the decline in exports associated with the economic stagnation in Europe.

In Japan, domestic demand such as capital investment and personal consumption is steadily improving against the backdrop of policy effects from the demand in relation to reconstruction efforts or government subsidies for eco-friendly car purchases and the economy is continuing a gradual recovery. As for the future direction of the economy, while stronger signs of recovery are expected, there are several causes for concern, such as the downturn in the overseas economies associated with the growing concern over the Euro-area’s debt problems, the appreciation of the value of the yen against other currencies and electricity shortages, posing a risk that these factors will act as a drag on economic growth.

Under the foregoing business environment, we recorded Net Income of ¥183.9 billion for the first quarter of the fiscal year ending March 31, 2013.

(2) Qualitative Information related to Consolidated Financial Conditions

Consolidated total assets as of June 30, 2012 amounted to ¥165,058.3 billion, decreasing by ¥302.1 billion from the end of the previous fiscal year.

Net Assets amounted to ¥6,604.0 billion, decreasing by ¥265.2 billion from the end of the previous fiscal year. Shareholders’ Equity amounted to ¥4,871.9 billion, Accumulated Other Comprehensive Income amounted to ¥(60.4) billion, and Minority Interests amounted to ¥1,791.0 billion.

In Assets, Securities were ¥50,439.7 billion, decreasing by ¥953.1 billion from the end of the previous fiscal year and the balance of Loans and Bills Discounted amounted to ¥63,645.6 billion, decreasing by ¥154.8 billion from the end of the previous fiscal year. In Liabilities, Deposits amounted to ¥78,215.3 billion, decreasing by ¥596.5 billion from the end of the previous fiscal year.

(3) Qualitative Information related to Consolidated Earnings Estimates

As for earnings estimates for fiscal 2012, we estimate Net Income of ¥500.0 billion on a consolidated basis as announced on May 15, 2012.

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 for a description of the factors that could affect our ability to meet these estimates.

 

1-2

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Mizuho Financial Group, Inc.

 

2. Matters Related to Summary Information (Notes)

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

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

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

 

1-3

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Mizuho Financial Group, Inc.

 

3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED BALANCE SHEETS

 

		Millions of yen
		As of March 31, 2012				As of June 30, 2012
Assets
Cash and Due from Banks		¥	7,278,477			¥	7,555,206
Call Loans and Bills Purchased			249,032				289,182
Receivables under Resale Agreements			7,123,397				8,622,735
Guarantee Deposits Paid under Securities Borrowing Transactions			6,406,409				6,277,718
Other Debt Purchased			1,542,062				1,423,475
Trading Assets			14,075,005				13,896,101
Money Held in Trust			71,414				63,630
Securities			51,392,878				50,439,752
Loans and Bills Discounted			63,800,509				63,645,662
Foreign Exchange Assets			1,016,665				964,407
Derivatives other than for Trading Assets			4,474,729				4,212,053
Other Assets			2,871,153				2,719,975
Tangible Fixed Assets			923,907				914,664
Intangible Fixed Assets			485,995				478,638
Deferred Tax Assets			359,987				456,629
Customers’ Liabilities for Acceptances and Guarantees			3,980,644				3,755,861
Reserves for Possible Losses on Loans			(691,760	)			(657,318	)
Reserve for Possible Losses on Investments			(10	)			(12	)
Total Assets		¥	165,360,501			¥	165,058,363

 

1-4

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Mizuho Financial Group, Inc.

 

		Millions of yen
		As of March 31, 2012				As of June 30, 2012
Liabilities
Deposits		¥	78,811,909			¥	78,215,389
Negotiable Certificates of Deposit			11,824,746				12,877,702
Call Money and Bills Sold			5,668,929				5,982,084
Payables under Repurchase Agreements			12,455,152				13,688,994
Guarantee Deposits Received under Securities Lending Transactions			7,710,373				7,269,266
Commercial Paper			362,694				354,577
Trading Liabilities			8,215,668				7,840,371
Borrowed Money			14,763,870				14,874,978
Foreign Exchange Liabilities			233,184				197,125
Short-term Bonds			538,198				451,898
Bonds and Notes			4,783,180				4,770,541
Due to Trust Accounts			1,003,129				1,079,154
Derivatives other than for Trading Liabilities			4,288,356				3,668,981
Other Liabilities			3,610,067				3,221,452
Reserve for Bonus Payments			38,577				6,077
Reserve for Employee Retirement Benefits			36,053				36,153
Reserve for Director and Corporate Auditor Retirement Benefits			2,256				1,692
Reserve for Possible Losses on Sales of Loans			8				12
Reserve for Contingencies			24,559				24,879
Reserve for Reimbursement of Deposits			15,769				14,052
Reserve for Reimbursement of Debentures			20,193				22,482
Reserves under Special Laws			1,221				1,196
Deferred Tax Liabilities			19,219				16,138
Deferred Tax Liabilities for Revaluation Reserve for Land			83,243				83,242
Acceptances and Guarantees			3,980,644				3,755,861
Total Liabilities		¥	158,491,206			¥	158,454,308
Net Assets
Common Stock and Preferred Stock		¥	2,254,972			¥	2,254,972
Capital Surplus			1,109,783				1,109,508
Retained Earnings			1,405,066				1,512,329
Treasury Stock			(7,074	)			(4,820	)
Total Shareholders’ Equity			4,762,749				4,871,990
Net Unrealized Gains (Losses) on Other Securities			37,857				(191,698	)
Deferred Gains or Losses on Hedges			67,045				85,263
Revaluation Reserve for Land			144,635				144,634
Foreign Currency Translation Adjustments			(102,850	)			(98,645	)
Total Accumulated Other Comprehensive Income			146,687				(60,445	)
Stock Acquisition Rights			2,158				1,492
Minority Interests			1,957,699				1,791,017
Total Net Assets			6,869,295				6,604,055
Total Liabilities and Net Assets		¥	165,360,501			¥	165,058,363

 

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Mizuho Financial Group, Inc.

 

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

[CONSOLIDATED STATEMENTS OF INCOME]

 

		Millions of yen
		For the three months ended June 30, 2011				For the three months ended June 30, 2012
Ordinary Income		¥	632,871			¥	738,048
Interest Income			344,355				340,819
Interest on Loans and Bills Discounted			219,325				220,571
Interest and Dividends on Securities			78,471				78,057
Fiduciary Income			10,001				9,647
Fee and Commission Income			126,491				121,990
Trading Income			42,260				56,220
Other Operating Income			65,104				158,497
Other Ordinary Income			44,658				50,872
Ordinary Expenses			517,141				528,907
Interest Expenses			79,628				81,579
Interest on Deposits			24,367				23,550
Interest on Debentures			291				—
Fee and Commission Expenses			27,969				28,960
Trading Expenses			—				324
Other Operating Expenses			21,832				15,361
General and Administrative Expenses			321,563				306,716
Other Ordinary Expenses			66,148				95,963
Ordinary Profits			115,729				209,141
Extraordinary Gains			194				36
Extraordinary Losses			1,134				2,371
Income before Income Taxes and Minority Interests			114,788				206,805
Income Taxes:
Current			8,804				67,632
Deferred			(13,380	)			(66,026	)
Total Income Taxes			(4,576	)			1,606
Income before Minority Interests			119,365				205,198
Minority Interests in Net Income			23,000				21,278
Net Income		¥	96,364			¥	183,920

 

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Mizuho Financial Group, Inc.

 

[CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME]

 

		Millions of yen
		For the three months  ended June 30, 2011				For the three months  ended June 30, 2012
Income before Minority Interests		¥	119,365			¥	205,198
Other Comprehensive Income			(87,069	)			(206,786	)
Net Unrealized Gains (Losses) on Other Securities			(93,442	)			(229,019	)
Deferred Gains or Losses on Hedges			4,535				18,173
Revaluation Reserve for Land			—				(0	)
Foreign Currency Translation Adjustments			1,238				1,920
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method			598				2,139
Comprehenshive Income			32,295				(1,587	)
Comprehensive Income Attributable to Owners of the Parent			11,340				(23,212	)
Comprehensive Income Attributable to Minority Interests			20,955				21,624

 

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Mizuho Financial Group, Inc.

 

(3) Note for Assumption of Going Concern

There is no applicable information.

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

There is no applicable information.

(5)Additional Information

Mizuho Securities USA Inc., one of our subsidiaries, had been responding to requests for information and investigation from the U.S. Securities and Exchange Commission concerning the structuring and offering of certain securitization transactions involving subprime mortgages and entered into a settlement agreement with that Commission in July this year. The settlement amount incurred in this matter ($127 million) was mostly reserved in the financial statements of the previous fiscal year. The effect of this matter on business results of this fiscal year is immaterial.

 

1-8

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Summary of Financial Results for the First Quarter of Fiscal 2012 <Under Japanese GAAP> July 31st, 2012

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2-1 Summary of Income Analysis P. 2-2 Loan Balance and Domestic Loan-and-Deposit Rate Margin P. 2-3 Non-interest Income P. 2-4 Financial Soundness P. 2-5 (Reference) Difference between Consolidated and 3 Banks P. 2-6 Exposure to GIIPS Countries P. 2-7 Contents Definitions 3 Banks : Aggregate figures for Mizuho Bank (BK), Mizuho Corporate Bank (CB) and Mizuho Trust & Banking (TB) on a non-consolidated basis

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2-2 Gross Profits of the 3 Banks increased by JPY 92.8Bn on a year-on-year basis Income from Trading & Others increased by JPY 95.6Bn Despite an increase in income from overseas business, particularly from Asia, total income from Customer Groups including domestic business decreased by JPY 2.7Bn Aggregated Consolidated Gross Profits (Net Operating Revenues) of Mizuho Securities and Mizuho Investors Securities increased by JPY 7.9Bn on a year-on-year basis G&A Expenses of the 3 Banks decreased by JPY 7.2Bn on a year-on-year basis mainly due to our continued efforts in overall cost reduction Summary of Income Analysis Consolidated Credit-related Costs amounted to a net reversal primarily due to improved obligor classifications achieved through our business revitalization support to corporate customers and other factors Consolidated Net Gains (Losses) related to Stocks decreased by JPY 67.2Bn on a year-on-year basis to Net Losses of JPY 62.2Bn, mainly due to recording impairment losses for certain stocks reflecting a decline in stock prices Mizuho Securities recorded a profit (Net Income JPY 5.4Bn) Consolidated Net Business Profits JPY 251.4Bn (Y-o-Y increase of JPY 122.5Bn) Consolidated Net Income JPY 183.9Bn (Y-o-Y increase of JPY 87.5Bn) The progress is about 36% on our planned net income for full fiscal 2012 (JPY 500.0Bn)

(JPY Bn)

Consolidated

1Q of Fy2012

(Apr. 1 – Jun. 30, 2012)

Change from 1Q of FY2011

Consolidated Gross Profits

560.9

102.1

Consolidated Net Business Profits *1

251.4

122.5

Credit-related Costs

16.0

5.4

Net Gains (Losses) related to Stocks

-62.2

-67.2

Ordinary Profits

209.1

93.4

Consolidated Net Income

183.9

87.5

*1 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

(JPY Bn)

1Q of FY2012

(Apr. 1 – Jun. 30, 2012)

Change from 1Q of FY2011

Gross Profits 451.7 92.8

Customer Groups 282.1 -2.7

Trading & Others 169.6 95.6

G&A Expenses

(excluding Non-Recurring Losses) -209.2 7.2

Net Business Profits 242.4 100.1

Credit-related Costs 8.4 -8.2

Net Gains (Losses) related to Stocks -75.0 -70.6

Ordinary Profits 154.9 48.8

Net Income 159.2 50.4

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2-3 The average loan balance for 1Q FY2012 decreased by JPY 1.1Tn from that for 2H FY2011, due to a decrease in loans to the Japanese Government, the foreign exchange translation impact on overseas loans and other factors The overseas loan balance increased from that for 2H FY2011, excluding the foreign exchange translation impact Loan Balance and Domestic Loan-and-Deposit Rate Margin *3: 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 Domestic Loan-and-Deposit Rate Margin *3 Loan Balance *1 (3 Banks, banking account) *1: Excluding loans to Mizuho Financial Group, Inc. *2: Overseas represents loans booked at overseas branches and offshore, including foreign exchange translation impact Average Balance (%) (2 Banks) Period-end Balance Overseas *2 Domestic 65.8 63.8 60.8 61.1 61.0 63.0 66.7 68.0 62.6 (JPY Tn) (JPY Tn) Domestic loan-and-deposit rate margin (2 Banks) for 1Q FY2012 decreased by 0.03% from that for 2H FY2011, due to a decrease in return on loans and bills discounted 0.20 0.40 0.00 3Q 1.30% 4Q 1.30% 1Q 1.32% 2Q 1.31% 70 65 60 55 50 45 40 0 1H FY 2008 2H FY 2008 1H FY 2009 2H FY 2009 1H FY 2010 2H FY 2010 1H FY 2011 2H FY 2011 1Q FY 2012 Total 66.0 69.7 63.5 61.5 61.3 62.2 60.8 63.1 62.8 1.80 1.60 1.40 1.20 0.20 0.00 (%) 1.79 1.74 1.61 1.55 1.49 1.45 1.39 1.37 1.33 1H FY2008 2H FY2008 1H FY2009 2H FY2009 1H FY2010 2H FY2010 1H FY2011 2H FY2011 1Q FY2012 Return on Loans and bills Discounted a Loan and Deposit Rate Mergin a-b Costs of Deposits and Debentures b

0.34 0.28 0.19 0.15 0.12 0.08 0.07 0.06 0.06

1.44 1.46 1.41 1.39 1.36 1.36 1.32 1.30 1.27

9.3 7.7 8.0 7.3 6.3 6.8 7.0 9.2 8.6

56.5 60.2 58.6 55.6 54.6 54.6 54.3 53.7 54.5 54.0

---

 

2-4 Non-interest Income Non-interest Income from Customer Groups (3 Banks) (managerial accounting *1) 93.6 93.3 0.3 (Rounded figures other than total) (JPY Bn) Non-interest Income from Customer Groups for 1Q FY2012 slightly increased on a year-on-year basis to JPY 93.6Bn +0.3 0 Solution Business-related: –JPY 3.0Bn Investment Trusts & Individual Annuities: +JPY 1.0Bn Settlement & Foreign Exchange: +JPY 0.0Bn International Business: +JPY 4.0Bn Trust & Asset Management *2: –JPY 1.0Bn Others: –JPY 2.0Bn *1: With the implementation of the “substantive one bank” structure, new managerial accounting rules have been applied since the beginning of FY2012. The figures for 1Q FY2011 on this slide were calculated based on the new rules (The impact of the changes in rules for 1Q FY2011 was approx. + JPY 10.0Bn) *2: Trust & Asset Management Business of TB <Breakdown of changes on a year-on-year basis>

100 90 80 70 60 1Q FY2011 1Q FY2012

---

 

2-5 Financial Soundness Disclosed Claims under the Financial Reconstruction Law and NPL Ratio (JPY Tn) (3 Banks) Unrealized Gains / Losses on Other Securities *1 *1: The base amount to be recorded directly to Net Assets after tax and other necessary adjustments (JPY Tn) The balance of Disclosed Claims under the Financial Reconstruction Law as of June 30, 2012 was almost unchanged from that as of March 31, 2012 NPL Ratio remained at a low level of 1.66% Unrealized Gains (Losses) on Other Securities for 1Q FY2012 decreased on a year-on-year basis mainly due to a decline in stock prices. However, the amount of Unrealized Losses as of Jun. 2012 was limited Total 0.26 Total 0.00 Total 0.09 Total—0.18 Net Deferred Tax Assets 0.0% (Consolidated) (Consolidated)

Disclosed Claims under the Financial Reconstruction Law NPL Ratio

1.5 1.0 0.5 0.0

1.31 1.91% Mar. 2010 1.20 1.72% Mar. 2011 1.16 1.63% Mar. 2012 1.17 1.66% Jun. 2012

2.5% 2.0% 1.5% 0.0%

0.5 0.0 -0.5

Mar. 2010 Mar. 2011 Mar. 2012 Jun. 2012

(JPY Bn) 2012 Jun. Change from Mar. 2012 2012 Mar.

Net Deferred Tax Assets 440.4 99.7 340.7

---

 

2-6 Difference in Net Income between Consolidated and 3 Banks (Reference) Difference between Consolidated and 3 Banks The difference in Net Income between Consolidated and 3 Banks for 1Q FY2012 was JPY 24.6Bn, a year-on-year increase of JPY 37.0Bn from that for 1Q FY2011 The improvement in the financial results of Mizuho Securities was the main factor for the increase Financial Results of Mizuho Securities 3 Banks Consolidated 3 Banks 159.2 Consolidated 183.9 +24.6 +5.4 -0.5 +3.3 +11.2 +5.1 SC (Consolidated) Major overseas subsidiaries of CB Mizuho Credit Guarantee Other subsidiaries, consolidation adjustments, etc. (JPY Bn) Despite the severe business environment due to the European debt problem, Mizuho Securities recorded net profit for the first time since 2Q FY2010 Net Operating Revenues increased mainly due to the solid performance in trading of bonds and others SG&A Expenses decreased mainly as a result of the “Business Foundation Strengthening Program” IS (Consolidated)

(JPY Bn) 200 180 160 140 120 100 80 60 40 20 0

Net Operating Revenues 52.9 8.8 44.0

SG&A Expenses -48.1 7.0 -55.1

Ordinary Income (Loss) 5.3 16.0 -10.6

Net Income (loss) 5.4 13.9 -8.5

1Q of FY 2012 Change from 1Q of FY2011 1Q of FY 2011

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2-7 (Reference) Exposure to GIIPS Countries (3 Banks) (managerial accounting) The balance of GIIPS sovereign bonds is zero Exposure to GIIPS countries is limited to USD 3.47Bn, which is equivalent to approx. 0.8% of total overseas exposure The majority of the exposure to Italy and Spain is to large blue-chip companies Exposure (Jun. 2012)Country Exposure Greece USD 0.07Bn Ireland USD 0.31BnItaly USD 1.39Bn Portugal USD 0.27Bn Spain USD 1.40Bn Total USD 3.47Bn

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2-8 Forward-looking Statements Important Notice This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance. In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions. We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Management Policy, realize the synergy effects of the transformation into “one bank,” and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations. Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information— Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) which is available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov. We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

---

SELECTED FINANCIAL INFORMATION

For the First Quarter of Fiscal 2012

<Under Japanese GAAP>

 

 

 

Mizuho Financial Group, Inc.

---

C O N T E N T S

 

 

Notes:

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

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

 

 

 

— FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2012

See above Notes

Page

1. Income Analysis

CON

NON

3- 1

2. Net Gains/Losses on Stocks

NON

3- 3

3. Unrealized Gains/Losses on Securities

CON

NON

3- 4

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

NON

3- 6

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

CON

NON

3- 7

6. Status of Deposits and Loans

NON

3- 9

 

 

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

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

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

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

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

 

---

Mizuho Financial Group, Inc.

FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2012

1. Income Analysis

CONSOLIDATED

 

						(Billions of yen)
						First Quarter of Fiscal 2012
										Change				First Quarter of Fiscal 2011				Fiscal 2011
Consolidated Gross Profits			1				560.9				102.1				458.7				2,003.0
Net Interest Income			2				259.2				(5.4	)			264.7				1,088.3
Fiduciary Income			3				9.6				(0.3	)			10.0				49.0
Credit Costs for Trust Accounts			4				—				—				—				—
Net Fee and Commission Income			5				93.0				(5.4	)			98.5				458.9
Net Trading Income			6				55.8				13.6				42.2				150.3
Net Other Operating Income			7				143.1				99.8				43.2				256.4
General and Administrative Expenses			8				(306.7	)			14.8				(321.5	)			(1,283.8	)
Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans)			9				(9.1	)			(0.2	)			(8.8	)			(42.5	)
Reversal of Reserves for Possible Losses on Loans, etc.			10				25.1				5.6				19.5				70.3
Net Gains (Losses) related to Stocks			11				(62.2	)			(67.2	)			5.0				(38.1	)
Equity in Income from Investments in Affiliates			12				(1.3	)			5.1				(6.4	)			2.6
Other			13				2.4				33.0				(30.6	)			(62.9	)
Ordinary Profits			14				209.1				93.4				115.7				648.5
Net Extraordinary Gains (Losses)			15				(2.3	)			(1.3	)			(0.9	)			67.8
Gains on Negative Goodwill incurred			16				—				—				—				91.1
Income before Income Taxes and Minority Interests			17				206.8				92.0				114.7				716.4
Income Taxes			18				(1.6	)			(6.1	)			4.5				(152.8	)
Income before Minority Interests			19				205.1				85.8				119.3				563.6
Minority Interests in Net Income			20				(21.2	)			1.7				(23.0	)			(79.1	)
Net Income			21				183.9				87.5				96.3				484.5
Credit-related Costs (including Credit Costs for Trust Accounts)			22				16.0				5.4				10.6				27.7
Credit-related Costs [22]  =  Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Possible Losses on Loans) [9] + Reversal of Reserves for Possible Losses on Loans, etc. [10] + Credit Costs for Trust Accounts [4]
(Reference)
Consolidated Net Business Profits			23				251.4				122.5				128.9				719.1
Consolidated Net Business Profits [23]  =  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			24				148				(6	)			154				149
Number of affiliates under the equity method			25				23				1				22				23

 

3-1

---

Mizuho Financial Group, Inc.

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

						(Billions of yen)
						First Quarter of Fiscal 2012																				First Quarter of Fiscal 2011				Fiscal 2011
						MHBK				MHCB				MHTB				Aggregated Figures				Change
Gross Profits			1				229.3				196.0				26.3				451.7				92.8				358.8				1,607.5
Net Interest Income			2				129.0				91.7				9.4				230.2				(10.8	)			241.0				983.1
Fiduciary Income			3												9.4				9.4				(0.3	)			9.8				48.4
Trust Fees for Loan Trust and Jointly Operated Designated Money Trust			4												—				—				(0.0	)			0.0				3.0
Credit Costs for Trust Accounts			5												—				—				—				—				—
Net Fee and Commission Income			6				33.1				25.7				3.1				62.1				2.5				59.6				304.8
Net Trading Income			7				12.2				5.3				0.2				17.8				4.7				13.0				45.9
Net Other Operating Income			8				54.8				73.2				3.9				132.0				96.8				35.2				225.0
General and Administrative Expenses (excluding Non-Recurring Losses)			9				(132.8	)			(57.7	)			(18.6	)			(209.2	)			7.2				(216.5	)			(879.3	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Possible Losses on Loans) *			10				96.5				138.3				7.6				242.4				100.1				142.3				728.1
Reversal of (Provision for) General Reserve for Possible Losses on Loans			11				—				—				—				—				10.0				(10.0	)			7.8
Net Business Profits			12				96.5				138.3				7.6				242.4				110.1				132.3				736.0
Net Gains (Losses) related to Bonds			13				53.4				69.4				4.0				126.9				106.2				20.6				155.1
Net Non-Recurring Gains (Losses)			14				(44.3	)			(40.1	)			(3.0	)			(87.5	)			(61.3	)			(26.1	)			(158.3	)
Net Gains (Losses) related to Stocks			15				(32.2	)			(41.4	)			(1.3	)			(75.0	)			(70.6	)			(4.3	)			(50.3	)
Expenses related to Portfolio Problems			16				(6.2	)			(0.4	)			(0.1	)			(6.9	)			(9.3	)			2.4				(51.3	)
Reversal of Reserves for Possible Losses on Loans, etc.			17				4.2				10.5				0.5				15.3				(8.9	)			24.2				68.2
Other			18				(10.0	)			(8.6	)			(2.0	)			(20.8	)			27.6				(48.4	)			(124.9	)
Ordinary Profits			19				52.1				98.1				4.5				154.9				48.8				106.1				577.6
Net Extraordinary Gains (Losses)			20				(0.3	)			(0.1	)			(0.2	)			(0.6	)			0.2				(0.9	)			(36.6	)
Income before Income Taxes			21				51.8				98.0				4.3				154.2				49.0				105.2				541.0
Income Taxes			22				(18.2	)			19.6				3.5				5.0				1.4				3.5				(112.8	)
Net Income			23				33.5				117.7				7.9				159.2				50.4				108.7				428.1
* 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].
Credit-related Costs			24				(1.9	)			10.0				0.3				8.4				(8.2	)			16.6				24.7
Credit-related Costs [24] =    Expenses related to Portfolio Problems [16] + Reversal of (Provision for) General Reserve for Possible Losses on Loans [11] + Reversal of Reserves for Possible Losses on Loans, etc. [17] + Credit  Costs for Trust Accounts [5]
(Reference) Breakdown of Credit-related Costs
Credit Costs for Trust Accounts			25												—				—				—				—				—
Reversal of (Provision for) General Reserve for Possible Losses on Loans			26				9.9				5.4				0.1				15.6				14.9				0.6				51.9
Losses on Write-offs of Loans			27				(3.8	)			2.7				(0.1	)			(1.2	)			(0.0	)			(1.1	)			3.2
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			28				(7.8	)			1.5				0.1				(6.1	)			(23.9	)			17.7				(25.2	)
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			29				—				0.0				0.0				0.0				(0.0	)			0.0				0.0
Reversal of (Provision for) Reserve for Contingencies			30				—				0.2				0.2				0.4				0.3				0.0				(1.2	)
Other (including Losses on Sales of Loans)			31				(0.2	)			(0.0	)			—				(0.2	)			0.4				(0.7	)			(3.9	)
Total			32				(1.9	)			10.0				0.3				8.4				(8.2	)			16.6				24.7

 

3-2

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Mizuho Financial Group, Inc.

2. Net Gains/Losses on Stocks

Non-Consolidated

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		First Quarter of Fiscal 2012 (A)				Change (A) - (B)				First Quarter of Fiscal 2011 (B)
Net Gains (Losses) related to Stocks			(75.0	)			(70.6	)			(4.3	)
Gains on Sales			10.5				3.4				7.1
Losses on Sales			(4.4	)			(3.9	)			(0.5	)
Impairment “Devaluation”			(81.1	)			(70.5	)			(10.6	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			0.0				0.1				(0.1	)
Gains (Losses) on Derivatives other than for Trading			0.0				0.2				(0.2	)

Mizuho Bank

 

		First Quarter of Fiscal 2012 (A)				Change (A) - (B)				First Quarter of Fiscal 2011 (B)
Net Gains (Losses) related to Stocks			(32.2	)			(32.8	)			0.6
Gains on Sales			0.4				(2.1	)			2.5
Losses on Sales			(0.2	)			(0.0	)			(0.1	)
Impairment “Devaluation”			(33.1	)			(31.0	)			(2.0	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				0.0				(0.0	)
Gains (Losses) on Derivatives other than for Trading			0.6				0.4				0.2

Mizuho Corporate Bank

 

		First Quarter of Fiscal 2012 (A)				Change (A) - (B)				First Quarter of Fiscal 2011 (B)
Net Gains (Losses) related to Stocks			(41.4	)			(36.3	)			(5.1	)
Gains on Sales			9.1				5.4				3.7
Losses on Sales			(3.3	)			(3.1	)			(0.2	)
Impairment “Devaluation”			(46.5	)			(38.6	)			(7.9	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			0.0				0.1				(0.1	)
Gains (Losses) on Derivatives other than for Trading			(0.6	)			(0.2	)			(0.4	)

Mizuho Trust & Banking

 

		First Quarter of Fiscal 2012 (A)				Change (A) - (B)				First Quarter of Fiscal 2011 (B)
Net Gains (Losses) related to Stocks			(1.3	)			(1.5	)			0.1
Gains on Sales			0.9				0.1				0.8
Losses on Sales			(0.8	)			(0.7	)			(0.0	)
Impairment “Devaluation”			(1.4	)			(0.9	)			(0.5	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			(0.0	)			(0.0	)			—
Gains (Losses) on Derivatives other than for Trading			0.0				0.0				(0.0	)

 

3-3

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Mizuho Financial Group, Inc.

3. Unrealized Gains/Losses on Securities

 

•

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

CONSOLIDATED

(1) Other Securities

 

		(Billions of yen)
		As of June 30, 2012																As of March 31, 2012																As of June 30, 2011
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses												Gains				Losses
MHFG (Consolidated)
Other Securities			48,425.7				(184.4	)			502.3				686.7				49,798.5				83.8				649.9				566.0				44,657.4				(95.0	)			586.2				681.2
Japanese Stocks			2,133.4				(132.2	)			293.3				425.5				2,509.3				156.5				453.5				296.9				2,444.6				30.8				391.4				360.5
Japanese Bonds			35,381.2				77.9				107.0				29.0				36,372.5				56.4				91.9				35.5				33,799.0				25.4				92.6				67.2
Other			10,911.0				(130.1	)			102.0				232.1				10,916.5				(129.1	)			104.4				233.5				8,413.7				(151.2	)			102.1				253.4

 

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

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

Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.

*	Unrealized Gains/Losses include ¥(2.7) billion, ¥(7.3) billion and ¥(8.4) billion, which were recognized in the statement of income as of the end of June 2012, as of the end of March 2012 and as of the end of June 2011, respectively, by applying the fair-value hedge method and others.

(2) Bonds Held to Maturity

 

		(Billions of yen)
		As of June 30, 2012																As of March 31, 2012																As of June 30, 2011
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses												Gains				Losses
MHFG (Consolidated)			2,100.4				19.0				19.0				—				1,801.6				14.5				14.5				0.0				1,351.8				9.4				9.7				0.3

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

(1) Other Securities

 

		(Billions of yen)
		As of June 30, 2012																As of March 31, 2012																As of June 30, 2011
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses												Gains				Losses
MHBK
Other Securities			24,274.3				(33.0	)			156.9				189.9				23,755.0				0.4				174.1				173.7				20,842.2				(51.4	)			159.9				211.4
Japanese Stocks			609.2				(50.8	)			74.7				125.5				690.9				(3.8	)			100.9				104.7				660.3				(45.7	)			82.1				127.9
Japanese Bonds			20,177.5				36.4				57.3				20.9				19,821.0				23.4				48.3				24.8				17,905.2				11.7				49.7				38.0
Other			3,487.5				(18.6	)			24.8				43.4				3,243.0				(19.1	)			24.9				44.0				2,276.5				(17.4	)			28.0				45.5
MHCB
Other Securities			21,468.1				(155.1	)			297.6				452.7				23,354.2				34.7				399.6				364.8				21,263.0				(76.6	)			358.5				435.2
Japanese Stocks			1,350.4				(98.4	)			179.9				278.4				1,612.4				106.7				296.2				189.4				1,570.7				26.9				257.0				230.1
Japanese Bonds			13,564.8				35.0				42.3				7.3				14,829.7				26.4				36.7				10.3				14,200.2				6.5				35.2				28.6
Other			6,552.8				(91.7	)			75.2				167.0				6,912.0				(98.4	)			66.5				165.0				5,491.9				(110.2	)			66.2				176.5
MHTB
Other Securities			2,088.3				5.4				39.6				34.2				2,116.8				31.8				56.0				24.1				2,032.0				20.4				51.9				31.5
Japanese Stocks			148.0				4.5				29.1				24.6				179.2				30.7				46.5				15.7				174.8				24.2				41.7				17.4
Japanese Bonds			1,316.7				6.1				6.9				0.8				1,417.0				6.2				6.4				0.2				1,372.3				6.3				6.9				0.5
Other			623.5				(5.2	)			3.5				8.8				520.5				(5.0	)			3.0				8.1				484.8				(10.1	)			3.3				13.5
Total
Other Securities			47,830.8				(182.7	)			494.2				677.0				49,226.1				67.0				629.8				562.7				44,137.3				(107.7	)			570.5				678.3
Japanese Stocks			2,107.7				(144.8	)			283.7				428.5				2,482.7				133.6				443.7				310.0				2,406.0				5.4				381.0				375.5
Japanese Bonds			35,059.1				77.6				106.7				29.0				36,067.8				56.0				91.5				35.4				33,477.8				24.6				91.8				67.2
Other			10,663.9				(115.6	)			103.7				219.3				10,675.6				(122.6	)			94.5				217.2				8,253.4				(137.8	)			97.6				235.5

 

*	In addition to securities, NCDs 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 date above.

Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the date above.

*	Unrealized Gains/Losses include ¥3.1 billion, ¥5.3 billion, and ¥7.4 billion, which were recognized as Income/Loss as of the end of June 2012, as of the end of March 2012, and as of the end of June 2011, respectively, by applying the fair-value hedge method and others.

 

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Mizuho Financial Group, Inc.

(2) Bonds Held to Maturity

 

		(Billions of yen)
		As of June 30, 2012																As of March 31, 2012																As of June 30, 2011
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses												Gains				Losses
MHBK			2,100.4				19.0				19.0				—				1,800.6				14.5				14.5				0.0				1,350.6				9.4				9.7				0.3
MHCB			—				—				—				—				—				—				—				—				—				—				—				—
MHTB			—				—				—				—				—				—				—				—				—				—				—				—
Total			2,100.4				19.0				19.0				—				1,800.6				14.5				14.5				0.0				1,350.6				9.4				9.7				0.3

(3) Investments in Subsidiaries and Affiliates

 

		(Billions of yen)
		As of June 30, 2012																As of March 31, 2012																As of June 30, 2011
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses												Gains				Losses
MHBK			—				—				—				—				—				—				—				—				88.2				(42.9	)			—				42.9
MHCB			44.2				(5.2	)			—				5.2				44.2				(4.8	)			—				4.8				338.0				(166.6	)			—				166.6
MHTB			—				—				—				—				—				—				—				—				—				—				—				—
Total			44.2				(5.2	)			—				5.2				44.2				(4.8	)			—				4.8				426.3				(209.6	)			—				209.6

(Reference)

Unrealized Gains/Losses on Other Securities

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

For certain Other Securities, Unrealized Gains/Losses were recognized as Income/Loss 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 is as follows:

CONSOLIDATED

 

		(Billions of yen)
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
		Unrealized Gains/Losses
						Change from March 31, 2012				Change from June 30, 2011				Unrealized Gains/Losses				Unrealized Gains/Losses
Other Securities			(181.6	)			(272.8	)			(95.0	)			91.2				(86.5	)
Japanese Stocks			(132.0	)			(288.3	)			(162.8	)			156.3				30.8
Japanese Bonds			76.8				21.9				53.0				54.8				23.7
Other			(126.4	)			(6.5	)			14.7				(119.9	)			(141.2	)

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
		Unrealized Gains/Losses
						Change from March 31, 2012				Change from June 30, 2011				Unrealized Gains/Losses				Unrealized Gains/Losses
Other Securities			(185.9	)			(247.6	)			(70.7	)			61.7				(115.1	)
Japanese Stocks			(144.6	)			(278.0	)			(150.1	)			133.3				5.4
Japanese Bonds			76.6				22.0				53.5				54.5				23.0
Other			(117.9	)			8.2				25.7				(126.2	)			(143.7	)

 

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Mizuho Financial Group, Inc.

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

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		As of June 30, 2012												As of March 31, 2012												As of June 30, 2011
		Deferred Hedge Gains/Losses												Deferred Hedge Gains/Losses												Deferred Hedge Gains/Losses
		Gains				Losses								Gains				Losses								Gains				Losses
MHBK			67.5				79.9				(12.3	)			64.0				82.1				(18.0	)			78.0				77.0				0.9
MHCB			682.5				398.8				283.7				643.4				401.0				242.4				648.0				389.8				258.1
MHTB			65.4				69.4				(3.9	)			63.4				69.9				(6.4	)			66.2				74.1				(7.8	)
Total			815.6				548.2				267.3				771.0				553.0				217.9				792.3				541.1				251.2

 

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

 

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Mizuho Financial Group, Inc.

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

CONSOLIDATED

Consolidated

 

		(Billions of yen)
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
Claims against Bankrupt and Substantially Bankrupt Obligors			166.5				(10.8	)			(75.4	)			177.4				242.0
Claims with Collection Risk			526.1				(1.1	)			(2.0	)			527.3				528.2
Claims for Special Attention			628.7				18.9				81.5				609.8				547.1
Total			1,321.5				6.9				4.1				1,314.5				1,317.3
Trust Account
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
Claims against Bankrupt and Substantially Bankrupt Obligors			—				—				—				—				—
Claims with Collection Risk			3.0				(0.0	)			(0.0	)			3.0				3.0
Claims for Special Attention			—				—				—				—				—
Total			3.0				(0.0	)			(0.0	)			3.0				3.0
Total (Consolidated + Trust Account)
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
Claims against Bankrupt and Substantially Bankrupt Obligors			166.5				(10.8	)			(75.4	)			177.4				242.0
Claims with Collection Risk			529.2				(1.1	)			(2.0	)			530.3				531.3
Claims for Special Attention			628.7				18.9				81.5				609.8				547.1
Total			1,324.5				6.9				4.1				1,317.6				1,320.4

 

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

 

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Mizuho Financial Group, Inc.

NON-CONSOLIDATED

Aggregated Figures of the 3 Banks

Total (Banking Account + Trust Account)

 

		(Billions of yen, %)
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
Claims against Bankrupt and Substantially Bankrupt Obligors			146.2				(10.7	)			(77.3	)			157.0				223.6
Claims with Collection Risk			519.9				(1.5	)			1.6				521.5				518.3
Claims for Special Attention			508.0				21.0				72.0				487.0				435.9
Sub-total [1]			1,174.3				8.6				(3.6	)			1,165.6				1,177.9
NPL ratio [1]/[2]			1.66	%			0.02	%			(0.07	)%			1.63	%			1.73	%
Normal Claims			69,365.5				(674.4	)			2,820.8				70,039.9				66,544.6
Total [2]			70,539.8				(665.7	)			2,817.2				71,205.5				67,722.5
MHBK
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
Claims against Bankrupt and Substantially Bankrupt Obligors			87.6				(7.7	)			(82.3	)			95.4				169.9
Claims with Collection Risk			401.9				14.8				12.5				387.1				389.4
Claims for Special Attention			317.2				1.0				30.8				316.2				286.3
Sub-total [3]			806.8				8.1				(38.9	)			798.7				845.7
NPL ratio [3]/[4]			2.36	%			0.05	%			(0.16	)%			2.30	%			2.52	%
Normal Claims			33,358.2				(463.0	)			710.3				33,821.3				32,647.9
Total [4]			34,165.1				(454.9	)			671.3				34,620.0				33,493.7
MHCB
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
Claims against Bankrupt and Substantially Bankrupt Obligors			28.3				(2.4	)			13.1				30.8				15.2
Claims with Collection Risk			99.4				(15.0	)			(0.4	)			114.4				99.8
Claims for Special Attention			170.8				16.0				33.5				154.7				137.2
Sub-total [5]			298.6				(1.4	)			46.2				300.0				252.4
NPL ratio [5]/[6]			0.91	%			0.00	%			0.08	%			0.90	%			0.82	%
Normal Claims			32,498.7				(365.5	)			2,014.3				32,864.3				30,484.4
Total [6]			32,797.3				(366.9	)			2,060.5				33,164.3				30,736.8
MHTB
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
Banking Account
Claims against Bankrupt and Substantially Bankrupt Obligors			30.2				(0.5	)			(8.1	)			30.8				38.4
Claims with Collection Risk			15.5				(1.3	)			(10.3	)			16.8				25.8
Claims for Special Attention			19.9				3.9				7.6				16.0				12.3
Sub-total [7]			65.7				1.9				(10.9	)			63.7				76.6
NPL ratio [7]/[8]			1.85	%			(0.02	)%			(0.36	)%			1.87	%			2.21	%
Normal Claims			3,488.0				155.0				98.3				3,333.0				3,389.6
Total [8]			3,553.8				157.0				87.4				3,396.8				3,466.3
Trust Account
Claims against Bankrupt and Substantially Bankrupt Obligors			—				—				—				—				—
Claims with Collection Risk			3.0				(0.0	)			(0.0	)			3.0				3.0
Claims for Special Attention			—				—				—				—				—
Sub-total [9]			3.0				(0.0	)			(0.0	)			3.0				3.0
NPL ratio [9]/[10]			13.09	%			0.43	%			1.04	%			12.66	%			12.04	%
Normal Claims			20.4				(0.8	)			(2.1	)			21.2				22.5
Total [10]			23.4				(0.8	)			(2.1	)			24.3				25.6

 

Notes:		1. Trust Account denotes trust accounts with contracts indemnifying the principal amounts.
		2. NPL: Non-Performing Loans

 

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Mizuho Financial Group, Inc.

6. Status of Deposits and Loans

NON-CONSOLIDATED

(1)-1 Deposits

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		As of June 30, 2012												As of March  31, 2012				As of June  30, 2011
						Change from March  31, 2012				Change from June  30, 2011
MHBK			57,964.3				219.8				1,177.5				57,744.4				56,786.8
MHCB			18,909.8				(769.6	)			(377.1	)			19,679.5				19,286.9
MHTB			2,065.2				(39.4	)			(155.8	)			2,104.6				2,221.0
Total			78,939.4				(589.2	)			644.5				79,528.6				78,294.9

(1)-2 Domestic Deposits

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		As of June 30, 2012												As of March 31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June 30, 2011
MHBK			57,944.4				240.2				1,209.0				57,704.1				56,735.3
Individual deposits			36,175.7				637.7				837.5				35,538.0				35,338.2
MHCB			11,021.1				(171.9	)			16.7				11,193.1				11,004.4
Individual deposits			8.0				3.7				2.0				4.3				5.9
MHTB			2,041.0				(52.2	)			(167.9	)			2,093.3				2,209.0
Individual deposits			1,435.8				(32.7	)			(124.3	)			1,468.6				1,560.1
Total			71,006.6				16.0				1,057.8				70,990.6				69,948.8
Individual deposits			37,619.7				608.7				715.2				37,011.0				36,904.4

 

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

(2) Loans and Bills Discounted

Aggregated Figures of the 3 Banks

 

		(Billions of yen)
		As of June 30, 2012												As of March  31, 2012				As of June 30, 2011
						Change from March 31, 2012				Change from June  30, 2011
MHBK			32,041.2				(499.6	)			731.3				32,540.8				31,309.8
MHCB			27,959.1				(99.6	)			1,793.7				28,058.8				26,165.4
MHTB			3,430.6				151.6				82.9				3,278.9				3,347.7
Total			63,430.9				(447.7	)			2,608.0				63,878.6				60,822.9

 

Note: Loans to MHFG are included as follows:

(3) Interest Margins (Domestic Operations)

Aggregated Figures of MHBK and MHCB

 

		(%)
						First Quarter of Fiscal 2012 (For the three months)								First Quarter of Fiscal 2011 (For the three months)				Fiscal 2011
										Change
MHBK
Return on Loans and Bills Discounted			1				1.34				(0.05	)			1.39				1.38
Cost of Deposits and Debentures			2				0.05				(0.01	)			0.06				0.05
Loan and Deposit Rate Margin [1]-[2]			3				1.28				(0.04	)			1.33				1.32
MHCB
Return on Loans and Bills Discounted			4				0.93				(0.05	)			0.98				0.96
Cost of Deposits and Debentures			5				0.10				0.00				0.09				0.09
Loan and Deposit Rate Margin [4]-[5]			6				0.82				(0.06	)			0.89				0.86
Total
Return on Loans and Bills Discounted			7				1.19				(0.05	)			1.25				1.24
Cost of Deposits and Debentures			8				0.06				(0.00	)			0.07				0.06
Loan and Deposit Rate Margin [7]-[8]			9				1.13				(0.05	)			1.18				1.17
Notes: 1. Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).
2. Deposits and Debentures include NCDs.
(Reference) After excluding Loans to Deposit Insurance Corporation of Japan and the Japanese government
Total
Return on Loans and Bills Discounted			10				1.33				(0.06	)			1.40				1.38
Loan and Deposit Rate Margin [10]-[8]			11				1.27				(0.05	)			1.32				1.31

 

3-9