Edgar Filing: MIZUHO FINANCIAL GROUP INC

The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

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 Audit Committee Report No. 25, July 29, 2002) 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.

FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2018

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100- 8176

Japan

(Address of principal executive office)

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

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

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

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

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

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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

SIGNATURES

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


Date:		August 14, 2018

Mizuho Financial Group, Inc.

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

UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2018

On August 14, 2018, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2018 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

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, 2018, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

- 2 -

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet


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

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

- 3 -


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

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

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

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

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

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

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

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

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

- 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, 2017			For the three months ended June 30, 2018
Ordinary Income		793,607			957,667
Interest Income		381,591			472,864
Interest on Loans and Bills Discounted		246,024			287,227
Interest and Dividends on Securities		59,730			73,376
Fiduciary Income		10,942			11,476
Fee and Commission Income		156,381			166,932
Trading Income		57,374			74,455
Other Operating Income		86,592			89,272
Other Ordinary Income	*1	100,724		*1	142,667
Ordinary Expenses		651,263			748,562
Interest Expenses		188,736			277,446
Interest on Deposits		78,477			101,705
Fee and Commission Expenses		40,431			40,769
Other Operating Expenses		23,611			21,032
General and Administrative Expenses		362,106			355,066
Other Ordinary Expenses	*2	36,377		*2	54,247

Ordinary Profits		142,344			209,104

Extraordinary Gains	*3	1,659		*3	8,031
Extraordinary Losses	*4	1,821		*4	821

Income before Income Taxes		142,182			216,313

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

Total Income Taxes		13,619			48,993

Profit		128,562			167,320

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

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

- 5 -

Quarterly Consolidated Statement of Comprehensive Income



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

Comprehensive Income		182,182			171,761

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

- 6 -

Notes to Quarterly Consolidated Financial Statements

Additional Information

The Board Benefit Trust (“BBT”) Program

Since MHFG operates its business giving due regard to creating value for diverse stakeholders and realizing 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 performance-based stock compensation program using a trust (the “Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer 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 Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The number of MHFG’s shares to be distributed will be determined pursuant to a performance evaluation based on the annual business plan.

A structure has been introduced for the distribution of MHFG’s shares under the Program, whereby the distribution will be deferred over three years, and the deferred portion will be subject to reduction or forfeiture depending on certain factors, including the performance of the Company Group or the relevant Directors, Executive Officers, and Specialist Officers.

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

(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, 2018 was ¥2,424 million for 13,319 thousand shares (the carrying amount as of March 31, 2018 was ¥2,424 million for 13,319 thousand shares).

- 7 -

Notes to Quarterly Consolidated Balance Sheet

*1.	Non-Accrual, Past Due & Restructured Loans, which are included in Loans and Bills Discounted, are as follows:


	*(Millions of yen)*
	As of March 31, 2018		As of June 30, 2018
Loans to Bankrupt Obligors		21,271		19,729
Non-Accrual Delinquent Loans		332,702		309,807
Loans Past Due for Three Months or More		617		1,218
Restructured Loans		240,777		208,000
Total		595,369		538,755

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, 2018		As of June 30, 2018
	1,309,432		1,340,269

Notes to Quarterly Consolidated Statement of Income

*1.	Other Ordinary Income includes the following:


	*(Millions of yen)*
	For the three months ended June 30, 2017		For the three months ended June 30, 2018
Gains on Sales of Stocks		66,824		98,447
Reversal of Reserves for Possible Losses on Loans		21,906		32,981

*2.	Other Ordinary Expenses includes the following:


	*(Millions of yen)*
	For the three months ended June 30, 2017		For the three months ended June 30, 2018
Losses on Write-offs of Loans		4,978		13,282

*3.	Extraordinary Gains includes the following:


	*(Millions of yen)*
	For the three months ended June 30, 2017		For the three months ended June 30, 2018
Gains on Cancellation of Employee Retirement Benefit Trust		—		6,890

*4.	Extraordinary Losses is as follows:


	*(Millions of yen)*
	For the three months ended June 30, 2017		For the three months ended June 30, 2018
Losses on Impairment of Fixed Assets		1,150		448
Losses on Disposition of Fixed Assets		671		373

- 8 -

Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the three months ended June 30, 2018. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the three months ended June 30, 2017 and 2018 are as follows:


	*(Millions of yen)*
	For the three months ended June 30, 2017		For the three months ended June 30, 2018
Depreciation		42,629		42,765
Amortization of Goodwill		1,040		1,030

Changes in Net Assets

For the three months ended June 30, 2017

1.	Cash dividends paid

Resolution

Type

Cash Dividends
(Millions of yen)

Cash Dividends
per Share
(Yen)

Record Date

Effective Date

Resource of
Dividends

May 15, 2017

Common Stock

95,173

3.75

March 31, 2017

June 5, 2017

Retained

Earnings

The Board of

Directors

(Note)

Cash dividends based on the resolution of the Board of Directors held on May 15, 2017 include ¥33 million of cash dividends on treasury stock held by BBT trust account.

For the three months ended June 30, 2018

1.	Cash dividends paid

Resolution

Type

Cash Dividends
(Millions of Yen)

Cash Dividends
per Share
(Yen)

Record Date

Effective Date

Resource of
Dividends

May 15, 2018

Common Stock

95,186

3.75

March 31, 2018

June 4, 2018

Retained

Earnings

The Board of

Directors

(Note)

Cash dividends based on the resolution of the Board of Directors held on May 15, 2018 include ¥49 million of cash dividends on treasury stock held by BBT trust account.

- 9 -

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.

- 10 -

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, 2017


	*(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		160,000			80,600		71,100		120,800		12,600		8,961		454,061
General and administrative expenses (excluding Non-Recurring Losses and others)		179,600			50,500		59,700		49,100		7,100		5,357		351,357
Equity in income from investments in affiliates		2,800			300		800		—		100		397		4,397
Amortization of goodwill and others		100			100		100		600		2,000		570		3,470
Others		—			—		—		—		—		(5,280	)	(5,280	)
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		(16,900	)		30,300		12,100		71,100		3,600		(1,849	)	98,350


(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 ¥13,957 million, of which ¥13,400 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, 2018, reclassification was made on the above table to reflect the relevant change.

- 11 -

For the three months ended June 30, 2018


	*(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		165,200			103,600		90,700		119,600		12,400		13,599		505,099
General and administrative expenses (excluding Non-Recurring Losses and others)		181,300			51,100		58,300		50,400		6,700		9,866		357,666
Equity in income from investments in affiliates		1,400			500		1,800		—		300		215		4,215
Amortization of goodwill and others		100			100		100		600		2,000		503		3,403
Others		—			—		—		—		—		(5,280	)	(5,280	)
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		(14,800	)		52,900		34,100		68,600		4,000		(1,836	)	142,963


(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 ¥29,347 million, of which ¥25,000 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.

- 12 -

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, 2017 and 2018, are as follows:


	*(Millions of yen)*
	For the three months ended June 30, 2017			For the three months ended June 30, 2018
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		98,350			142,963
Credit Costs for Trust Accounts		—			—
General and Administrative Expenses (non-recurring losses)		(7,278	)		6,003
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)		(5,141	)		(13,380	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others		24,345			35,951
Net Gains (Losses) related to Stocks - Net Gains (Losses) related to ETFs and others		48,348			50,974
Net Extraordinary Gains (Losses)		(161	)		7,209
Others		(16,281	)		(13,408	)

Income before Income Taxes recorded in Quarterly Consolidated Statement of Income		142,182			216,313

- 13 -

Securities

In addition to “Securities” on the quarterly consolidated balance sheet, Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included. Unlisted stocks and others, the fair values of which are deemed extremely difficult to determine, are excluded.

1.	Bonds Held to Maturity

As of March 31, 2018


	*(Millions of yen)*
	Consolidated Balance Sheet Amount		Fair Value		Difference
Japanese Government Bonds		1,959,909		1,984,382		24,472
Foreign Bonds		555,920		537,464		(18,455	)
Total		2,515,830		2,521,846		6,016

As of June 30, 2018


	*(Millions of yen)*
	Quarterly Consolidated Balance Sheet Amount		Fair Value		Difference
Japanese Government Bonds		1,809,901		1,832,402		22,500
Foreign Bonds		548,525		529,253		(19,271	)
Total		2,358,426		2,361,655		3,228

(Note)

The fair value is based on market prices as of June 30, 2018 (March 31, 2018) and other data.

2.	Other Securities

As of March 31, 2018


	*(Millions of yen)*
	Acquisition Cost		Consolidated Balance Sheet Amount		Difference
Stocks		1,564,867		3,582,240		2,017,372
Bonds		16,530,192		16,535,604		5,411
Japanese Government Bonds		13,331,477		13,332,094		616
Japanese Local Government Bonds		236,710		239,333		2,622
Short-term Bonds		99		99		—
Japanese Corporate Bonds		2,961,904		2,964,076		2,172
Other		11,531,850		11,463,293		(68,557	)
Foreign Bonds		8,495,236		8,329,141		(166,095	)
Other Debt Purchased		185,614		186,533		918
Other		2,850,999		2,947,619		96,620
Total		29,626,911		31,581,138		1,954,226

- 14 -

As of June 30, 2018


	*(Millions of yen)*
	Acquisition Cost		Quarterly Consolidated Balance Sheet Amount		Difference
Stocks		1,541,575		3,681,670		2,140,095
Bonds		15,913,908		15,911,767		(2,140	)
Japanese Government Bonds		12,716,243		12,712,622		(3,620	)
Japanese Local Government Bonds		182,597		183,370		772
Short-term Bonds		99		99		—
Japanese Corporate Bonds		3,014,967		3,015,674		706
Other		11,661,039		11,555,317		(105,722	)
Foreign Bonds		8,534,666		8,352,169		(182,497	)
Other Debt Purchased		168,391		169,253		862
Other		2,957,981		3,033,893		75,912
Total		29,116,523		31,148,755		2,032,232


(Notes)	1.	Unrealized Gains (Losses) include ¥28,273 million and ¥29,617 million, which were recognized in the statements of income for the year ended March 31, 2018 and the three months ended June 30, 2018, respectively, by applying the fair-value hedge method.
	2.	As for the quarterly consolidated balance sheet amount (consolidated balance sheet amount), fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price, or other reasonable value during the last month of the three months ended June 30, 2018 (last month of the fiscal year ended March 31, 2018), and fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value as of June 30, 2018 (March 31, 2018).
	3.	Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the three months ended June 30, 2018 (the fiscal year ended March 31, 2018) (impairment (devaluation)), if the fair value (primarily the closing market price as of June 30, 2018 (March 31, 2018)) has significantly deteriorated compared with the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value.

		The amount of impairment (devaluation) for the fiscal year ended March 31, 2018 was ¥3,424 million.

		The amount of impairment (devaluation) for the three months ended June 30, 2018 was ¥1,183 million.

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

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

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

	4.	Floating-rate Japanese Government Bonds

		Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fair value, are based on the reasonably calculated prices as book value on the quarterly consolidated balance sheet (consolidated balance sheet).

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

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Money Held in Trust

1.	Money Held in Trust Held to Maturity

There was no Money Held in Trust held to maturity.

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

As of March 31, 2018

(Millions of yen)

Acquisition Cost

Consolidated Balance Sheet
Amount

Difference

Other in Money Held in Trust

3,199

—

As of June 30, 2018

(Millions of yen)

Acquisition Cost

Quarterly Consolidated
Balance Sheet Amount

Difference

Other in Money Held in Trust

3,362

—

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Derivatives Information

(1)	Interest Rate-Related Transactions

As of March 31, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		15,011,748		(1,499	)		(1,499	)
Listed	Options		466,988		558			141
Over-the-Counter	FRAs		58,352,463		(1,830	)		(1,830	)
	Swaps		902,416,317		29,522			29,522
	Options		10,274,268		(396	)		(396	)
Inter-Company or Internal Transactions	Swaps		16,614,032		71,670			71,670

Total			—		98,024			97,607


(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 Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

As of June 30, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		15,141,703		(821	)		(821	)
Listed	Options		656,894		430			302
Over-the-Counter	FRAs		63,256,746		(2,071	)		(2,071	)
	Swaps		893,122,766		93,497			93,497
	Options		11,484,955		4,676			4,676
Inter-Company or Internal Transactions	Swaps		18,208,498		72,735			72,735

Total			—		168,447			168,319


(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 Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

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(2)	Currency-Related Transactions

As of March 31, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		113,484		—			—
Over-the-Counter	Swaps		49,506,179		245,294			164,945
	Forwards		97,636,495		68,424			68,424
	Options		4,759,911		26,695			23,113
Inter-Company or Internal Transactions	Swaps		3,190,555		(250,755	)		18,009
Inter-Company or Internal Transactions	Forwards		165,472		(2,090	)		(2,090	)

Total			—		87,568			272,402

As of June 30, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		70,512		—			—
Over-the-Counter	Swaps		49,314,390		265,987			150,081
	Forwards		94,851,670		13,754			13,754
	Options		5,257,805		18,267			13,292
Inter-Company or Internal Transactions	Swaps		2,925,536		(159,185	)		20,265
Inter-Company or Internal Transactions	Forwards		10,547		18			18

Total			—		138,842			197,411

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(3)	Stock-Related Transactions

As of March 31, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Index Futures		1,022,835		10,511			10,511
Listed	Index Futures Options		3,521,358		(7,297	)		(2,232	)
Over-the-Counter	Equity Linked Swaps		242,490		13,938			13,938
	Options		1,039,580		30,158			30,158
	Other		598,146		36,954			36,954

Total			—		84,265			89,329


(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, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Index Futures		1,000,151		8,848			8,848
Listed	Index Futures Options		3,473,766		(11,049	)		(4,267	)
Over-the-Counter	Equity Linked Swaps		299,944		9,543			9,543
	Options		1,069,297		45,315			45,315
	Other		797,761		102,186			102,186

Total			—		154,844			161,626


(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.

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(4)	Bond-Related Transactions

As of March 31, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		1,422,265		50			50
Listed	Futures Options		423,572		(62	)		(56	)
Over-the-Counter	Options		1,655,129		(470	)		(76	)
Over-the-Counter	Other		655,462		(393	)		(393	)

Total			—		(875	)		(475	)


(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of June 30, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		2,656,859		702			702
Listed	Futures Options		757,278		26			(140	)
Over-the-Counter	Options		1,055,146		54			(47	)
Over-the-Counter	Other		155,079		(485	)		(485	)

Total			—		298			28


(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

(5)	Commodity-Related Transactions

As of March 31, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		54,993		2,111			2,111
Listed	Futures Options		—		—			—
Over-the-Counter	Swaps		2,516		0			0
Over-the-Counter	Options		277,478		(362	)		(362	)

Total			—		1,749			1,749


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
	2.	Commodities include oil, copper, aluminum and others.

As of June 30, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Listed	Futures		47,463		3,412			3,412
Listed	Futures Options		502		(10	)		(6	)
Over-the-Counter	Swaps		780		0			0
Over-the-Counter	Options		274,151		(1,925	)		(1,925	)

Total			—		1,476			1,480


(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.	Commodities include oil, copper, aluminum and others.

- 20 -

(6)	Credit Derivative Transactions

As of March 31, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value			Unrealized Gains (Losses)
Over-the-Counter	Credit Derivatives		2,843,073		(2,947	)		(2,947	)

Total			—		(2,947	)		(2,947	)


(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of June 30, 2018


*(Millions of yen)*
Classification	Type	Contract Value		Fair Value		Unrealized Gains (Losses)
Over-the-Counter	Credit Derivatives		2,980,030		174		174

Total			—		174		174


(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

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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, 2017		For the three months ended June 30, 2018
(1) Net Income per Share of Common Stock	Yen		4.66		6.34
(The basis used for calculating Net Income per Share of Common Stock)
Profit Attributable to Owners of Parent	Millions of yen		118,290		161,015
Amount not attributable to Common Stock	Millions of yen		—		—
Profit Attributable to Owners of Parent related to Common Stock	Millions of yen		118,290		161,015
Average Outstanding Shares of Common Stock (during the period)	Thousands of shares		25,367,097		25,364,804

(2) Diluted Net Income per Share of Common Stock	Yen		4.66		6.34
(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		8,582		5,302
Stock Acquisition Rights	Thousands of shares		8,582		5,302
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, 2017, was 9,000 thousand and the average number of such Treasury Stock shares deducted during the three months ended June 30, 2018, was 13,319 thousand.

- 22 -

II.

Others

At the meeting of the Board of Directors held on May 15, 2018, the year-end cash dividends for the 16th term were resolved as follows:


Total amount of year-end cash dividends			¥95,186 million
Year-end cash dividends per share
Common Stock			¥3.75
Effective date and starting date of dividend payments			June 4, 2018

- 23 -