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 2017

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-                    .

 

 

 

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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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

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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, 2017

 

		Consolidated Financial Statements for the First Quarter of Fiscal 2017 <Under Japanese GAAP>

 

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

 

Stock Code Number (Japan):		8411
Stock Exchange Listings:		Tokyo Stock Exchange (First Section), New York Stock Exchange
URL:		https://www.mizuho-fg.com/index.html
Representative:		Yasuhiro Sato		President & CEO
For Inquiry:		Masahiro Kosugi		General Manager of Accounting		Phone:		+81-3-6838-6101
Filing of Shihanki Hokokusho (scheduled):				August 14, 2017		Trading Accounts:		Established
Commencement of Dividend Payment (scheduled):				—
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 2017 (for the three months ended June 30, 2017)

(1) Consolidated Results of Operations

 

(%: Changes from the corresponding period of the previous fiscal year)
		Ordinary Income								Ordinary Profits								Profit Attributable to Owners of Parent
		¥ million				%				¥ million				%				¥ million				%
1Q F2017			793,607				1.6				142,344				(25.9	)			118,290				(10.8	)
1Q F2016			780,350				(2.0	)			192,153				(27.2	)			132,639				(16.0	)

 

Note:		Comprehensive Income: 1Q F2017: ¥182,182 million, 258.9%; 1Q F2016: ¥50,747 million, (72.5)%

 

		Net Income per Share of Common Stock				Diluted Net Income per Share of Common Stock
		¥				¥
1Q F2017			4.66				4.66
1Q F2016			5.29				5.22

(2) Consolidated Financial Conditions

 

		Total Assets				Total Net Assets				Own Capital Ratio
		¥ million				¥ million				%
1Q F2017			200,639,561				9,355,489				4.2
Fiscal 2016			200,508,610				9,273,361				4.2

 

Reference:		Own Capital: As of June 30, 2017: ¥8,602,068 million; As of March 31, 2017: ¥8,522,268 million

Note:		Own Capital Ratio is calculated as follows: (Total Net Assets - Stock Acquisition Rights - Non-controlling Interests) / Total Assets × 100 Own Capital Ratio stated above is not calculated based on the public notice of Own Capital Ratio.

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 2016			—				3.75				—				3.75				7.50
Fiscal 2017			—
Fiscal 2017 (estimate)							3.75				—				3.75				7.50

Note: Revision of the latest announced estimates for cash dividends for shareholders of common stock : No

3. Consolidated Earnings Estimates for Fiscal 2017 (for the fiscal year ending March 31, 2018)

 

		(%: Changes from the corresponding period of the previous fiscal year)
										Profit Attributable to Owners of Parent								Net Income per Share of Common Stock
										¥ million				%				¥
1H F2017											—				—				—
Fiscal 2017											550,000				(8.8	)			21.68

 

Notes:		1.		Revision of the latest announced earnings estimates for fiscal 2017: No
		2.		The number of shares of common stock used in the above per share information is based on the weighted average of the average number of shares during 1Q and the number of outstanding shares as of June 30, 2017 (which is used as a proxy for the average number of shares during the remainder of the relevant period).

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* 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

① Changes in accounting policies due to revisions of accounting standards, etc. : No

② Changes in accounting policies other than ① above: No

③ Changes in accounting estimates: No

④ Restatements: No

(4) Issued Shares of Common Stock

 

This immediate release is outside the scope of quarterly review.

 

 

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 Business Plan, realize the synergy effects of "One MIZUHO," 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.com/index.html 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.

 

m Contents of Attachment

 

1.		Quarterly Consolidated Financial Statements and Others		p.1-2
		(1) Consolidated Balance Sheets		p.1-2
		(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income		p.1-4
		(3) Note for Assumption of Going Concern		p.1-6
		(4) Note for Significant Changes in the Amount of Shareholders’ Equity		p.1-6
		ø SELECTED FINANCIAL INFORMATION For the First Quarter of Fiscal 2017

[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. Quarterly Consolidated Financial Statements and Others

(1) Consolidated Balance Sheets

 

		Millions of yen
		As of March 31, 2017				As of June 30, 2017
Assets
Cash and Due from Banks		¥	47,129,583			¥	41,811,173
Call Loans and Bills Purchased			1,035,746				1,519,891
Receivables under Resale Agreements			8,967,777				9,350,185
Guarantee Deposits Paid under Securities Borrowing Transactions			3,350,051				2,913,515
Other Debt Purchased			2,745,204				2,639,525
Trading Assets			10,361,787				11,303,501
Money Held in Trust			247,583				247,314
Securities			32,353,158				35,367,515
Loans and Bills Discounted			78,337,793				78,488,564
Foreign Exchange Assets			1,828,782				1,924,522
Derivatives other than for Trading Assets			2,170,750				1,868,313
Other Assets			4,180,339				5,216,753
Tangible Fixed Assets			1,136,329				1,120,611
Intangible Fixed Assets			1,045,486				1,068,056
Net Defined Benefit Asset			797,762				810,730
Deferred Tax Assets			56,066				57,348
Customers’ Liabilities for Acceptances and Guarantees			5,273,581				5,409,044
Reserves for Possible Losses on Loans			(509,175	)			(477,008	)
Total Assets		¥	200,508,610			¥	200,639,561

 

1-2

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Mizuho Financial Group, Inc.

 

		Millions of yen
		As of March 31, 2017				As of June 30, 2017
Liabilities
Deposits		¥	120,045,217			¥	119,242,930
Negotiable Certificates of Deposit			10,631,277				11,350,828
Call Money and Bills Sold			1,255,172				1,511,951
Payables under Repurchase Agreements			17,969,753				18,310,442
Guarantee Deposits Received under Securities Lending Transactions			1,679,300				1,733,018
Commercial Paper			789,705				534,655
Trading Liabilities			7,923,285				8,124,844
Borrowed Money			6,307,230				5,449,220
Foreign Exchange Liabilities			526,053				404,689
Short-term Bonds			226,348				206,530
Bonds and Notes			7,564,535				7,416,653
Due to Trust Accounts			4,784,077				4,479,344
Derivatives other than for Trading Liabilities			1,784,857				1,547,923
Other Liabilities			3,883,168				5,036,408
Reserve for Bonus Payments			67,633				13,089
Reserve for Variable Compensation			3,018				3,810
Net Defined Benefit Liability			55,236				55,226
Reserve for Director and Corporate Auditor Retirement Benefits			1,327				1,169
Reserve for Possible Losses on Sales of Loans			298				58
Reserve for Contingencies			5,680				5,706
Reserve for Reimbursement of Deposits			19,072				17,466
Reserve for Reimbursement of Debentures			32,720				30,781
Reserves under Special Laws			2,309				2,285
Deferred Tax Liabilities			337,800				329,530
Deferred Tax Liabilities for Revaluation Reserve for Land			66,585				66,462
Acceptances and Guarantees			5,273,581				5,409,044
Total Liabilities		¥	191,235,249			¥	191,284,072
Net Assets
Common Stock and Preferred Stock		¥	2,256,275			¥	2,256,548
Capital Surplus			1,134,416				1,134,811
Retained Earnings			3,615,449				3,638,845
Treasury Stock			(4,849	)			(5,478	)
Total Shareholders’ Equity			7,001,291				7,024,727
Net Unrealized Gains (Losses) on Other Securities			1,289,985				1,356,077
Deferred Gains or Losses on Hedges			10,172				10,499
Revaluation Reserve for Land			145,609				145,329
Foreign Currency Translation Adjustments			(69,657	)			(79,421	)
Remeasurements of Defined Benefit Plans			144,866				144,856
Total Accumulated Other Comprehensive Income			1,520,976				1,577,341
Stock Acquisition Rights			1,754				1,210
Non-Controlling Interests			749,339				752,209
Total Net Assets			9,273,361				9,355,489
Total Liabilities and Net Assets		¥	200,508,610			¥	200,639,561

 

1-3

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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, 2016				For the three months  ended June 30, 2017
Ordinary Income		¥	780,350			¥	793,607
Interest Income			334,632				381,591
Interest on Loans and Bills Discounted			225,147				246,024
Interest and Dividends on Securities			55,453				59,730
Fiduciary Income			10,394				10,942
Fee and Commission Income			169,821				156,381
Trading Income			112,084				57,374
Other Operating Income			111,457				86,592
Other Ordinary Income			41,960				100,724
Ordinary Expenses			588,197				651,263
Interest Expenses			118,956				188,736
Interest on Deposits			46,971				78,477
Fee and Commission Expenses			37,863				40,431
Trading Expenses			120				—
Other Operating Expenses			30,551				23,611
General and Administrative Expenses			350,354				362,106
Other Ordinary Expenses			50,350				36,377
Ordinary Profits			192,153				142,344
Extraordinary Gains			1,410				1,659
Extraordinary Losses			881				1,821
Income before Income Taxes			192,683				142,182
Income Taxes:
Current			56,373				50,611
Deferred			(9,885	)			(36,991	)
Total Income Taxes			46,488				13,619
Profit			146,194				128,562
Profit Attributable to Non-controlling Interests			13,555				10,272
Profit Attributable to Owners of Parent		¥	132,639			¥	118,290

 

1-4

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Mizuho Financial Group, Inc.

 

[Consolidated Statements of Comprehensive Income]

 

		Millions of yen
		For the three months  ended June 30, 2016				For the three months  ended June 30, 2017
Profit		¥	146,194			¥	128,562
Other Comprehensive Income			(95,447	)			53,619
Net Unrealized Gains (Losses) on Other Securities			(130,342	)			63,494
Deferred Gains or Losses on Hedges			42,390				910
Revaluation Reserve for Land			(4	)			(0	)
Foreign Currency Translation Adjustments			(9,461	)			(4,019	)
Remeasurements of Defined Benefit Plans			6,710				3,973
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method			(4,739	)			(10,737	)
Comprehensive Income			50,747				182,182
(Breakdown)
Comprehensive Income Attributable to Owners of Parent			40,302				174,934
Comprehensive Income Attributable to Non-controlling Interests			10,444				7,247

 

1-5

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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.

 

1-6

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SELECTED FINANCIAL INFORMATION

For the First Quarter of Fiscal 2017

<Under Japanese GAAP>

 

 

 

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C O N T E N T S

 

 

Notes:

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

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

 

 

 

FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2017		See above Notes				Page
1. Income Analysis		CON		NON			2- 1
2. Net Gains/Losses on Stocks		CON		NON			2- 3
3. Unrealized Gains/Losses on Securities		CON		NON			2- 4
4. Deferred Hedge Gains/Losses on Derivative Transactions Qualifying for Hedge Accounting		NON					2- 6
5. Status of Disclosed Claims under the Financial Reconstruction Act (“FRA”)		CON		NON			2- 7
6. Status of Deposits and Loans		NON					2- 9

 

Attachments		Page
Mizuho Bank, Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)			2- 10
Comparison of Non-Consolidated Statements of Income (selected items)			2- 11
Mizuho Trust & Banking Co., Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)			2- 12
Comparison of Non-Consolidated Statements of Income (selected items)			2- 13
Mizuho Securities Co., Ltd.
Comparison of Non-Consolidated Balance Sheets (selected items)			2- 14
Comparison of Non-Consolidated Statements of Income (selected items)			2- 15

 

 

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 Business Plan, realize the synergy effects of “One MIZUHO,” 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.com/index.html 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.

 

FINANCIAL INFORMATION FOR THE FIRST QUARTER OF FISCAL 2017

1. Income Analysis

Consolidated

 

						(Billions of yen)
						First Quarter of Fiscal 2017								First Quarter of Fiscal 2016
										Change
Consolidated Gross Profits			1				440.1				(110.7	)			550.8
Net Interest Income			2				192.8				(22.8	)			215.6
Fiduciary Income			3				10.9				0.5				10.3
Credit Costs for Trust Accounts			4				—				—				—
Net Fee and Commission Income			5				115.9				(16.0	)			131.9
Net Trading Income			6				57.3				(54.5	)			111.9
Net Other Operating Income			7				62.9				(17.9	)			80.9
General and Administrative Expenses			8				(362.1	)			(11.7	)			(350.3	)
Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans)			9				(5.1	)			(2.2	)			(2.9	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			10				24.3				16.1				8.2
Net Gains (Losses) related to Stocks			11				62.3				48.6				13.6
Equity in Income from Investments in Affiliates			12				4.3				1.7				2.6
Other			13				(21.5	)			8.3				(29.9	)
Ordinary Profits			14				142.3				(49.8	)			192.1
Net Extraordinary Gains (Losses)			15				(0.1	)			(0.6	)			0.5
Income before Income Taxes			16				142.1				(50.5	)			192.6
Income Taxes			17				(13.6	)			32.8				(46.4	)
Profit			18				128.5				(17.6	)			146.1
Profit Attributable to Non-controlling Interests			19				(10.2	)			3.2				(13.5	)
Profit Attributable to Owners of Parent			20				118.2				(14.3	)			132.6
Credit-related Costs (including Credit Costs for Trust Accounts)			21				19.2				13.8				5.3

* Credit-related Costs [21]  =     Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans) [9] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [10] + Credit Costs for Trust Accounts [4]

(Reference)
Consolidated Net Business Profits			22				84.3				(118.6	)			203.0

* Consolidated Net Business Profits [22] =     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			23				133				(9	)			142
Number of affiliates under the equity method			24				18				(4	)			22

 

2-1

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Mizuho Financial Group, Inc.

 

Non-Consolidated

Aggregate Figures for the 2 Banks

 

						(Billions of yen)
						First Quarter of Fiscal 2017																First Quarter of Fiscal 2016
						MHBK				MHTB				Aggregate Figures				Change
Gross Profits			1				274.2				21.6				295.9				(97.5	)			393.4
Net Interest Income			2				163.0				6.1				169.1				(13.1	)			182.2
Fiduciary Income			3								10.7				10.7				0.5				10.1
Trust Fees for Jointly Operated Designated Money Trust			4								—				—				—				—
Credit Costs for Trust Accounts			5								—				—				—				—
Net Fee and Commission Income			6				66.2				2.8				69.1				(21.9	)			91.0
Net Trading Income			7				7.1				0.2				7.4				(42.7	)			50.1
Net Other Operating Income			8				37.8				1.6				39.5				(20.3	)			59.8
General and Administrative Expenses (excluding Non-Recurring Losses)			9				(218.1	)			(20.4	)			(238.5	)			(6.6	)			(231.8	)
Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) *			10				56.1				1.2				57.4				(104.2	)			161.6
Reversal of (Provision for) General Reserve for Losses on Loans			11				—				—				—				(7.1	)			7.1
Net Business Profits			12				56.1				1.2				57.4				(111.4	)			168.8
Net Gains (Losses) related to Bonds			13				18.3				1.6				20.0				(61.3	)			81.3
Net Non-Recurring Gains (Losses)			14				48.6				7.8				56.5				81.8				(25.3	)
Net Gains (Losses) related to Stocks			15				62.6				8.9				71.5				58.0				13.5
Expenses related to Portfolio Problems			16				(4.3	)			—				(4.3	)			4.6				(8.9	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			17				19.7				0.0				19.8				12.5				7.3
Other			18				(29.4	)			(1.0	)			(30.5	)			6.6				(37.2	)
Ordinary Profits			19				104.7				9.1				113.9				(29.5	)			143.5
Net Extraordinary Gains (Losses)			20				1.8				(0.0	)			1.8				1.0				0.7
Income before Income Taxes			21				106.6				9.1				115.7				(28.4	)			144.2
Income Taxes			22				(6.1	)			(2.5	)			(8.7	)			31.9				(40.6	)
Net Income			23				100.4				6.5				107.0				3.4				103.5

* Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) for MHTB excludes the amounts of “Credit Costs for Trust Accounts” [5].
Credit-related Costs			24				15.4				0.0				15.5				9.9				5.5

* Credit-related Costs [24] =    Expenses related to Portfolio Problems [16] + Reversal of (Provision for) General Reserve for Losses on Loans [11] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [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 Losses on Loans			26				17.9				(0.0	)			17.9				10.7				7.2
Losses on Write-offs of Loans			27				(2.1	)			—				(2.1	)			(5.4	)			3.3
Reversal of (Provision for) Specific Reserve for Possible Losses on Loans			28				(0.2	)			0.0				(0.2	)			4.3				(4.5	)
Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries			29				0.0				0.0				0.0				(0.0	)			0.0
Reversal of (Provision for) Reserve for Contingencies			30				0.0				—				0.0				0.1				(0.1	)
Other (including Losses on Sales of Loans)			31				(0.1	)			—				(0.1	)			0.1				(0.2	)
Total			32				15.4				0.0				15.5				9.9				5.5

 

2-2

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Mizuho Financial Group, Inc.

 

2. Net Gains/Losses on Stocks

Consolidated

 

		(Billions of yen)
		First Quarter of Fiscal 2017				Change				First Quarter of Fiscal 2016
Net Gains (Losses) related to Stocks			62.3				48.6				13.6
Gains on Sales			66.8				41.3				25.4
Losses on Sales			(2.0	)			1.7				(3.8	)
Impairment (Devaluation)			(0.3	)			5.2				(5.5	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			(2.1	)			0.3				(2.4	)
Non-Consolidated
Aggregate Figures for the 2 Banks
		First Quarter of Fiscal 2017				Change				First Quarter of Fiscal 2016
Net Gains (Losses) related to Stocks			71.5				58.0				13.5
Gains on Sales			75.6				52.0				23.5
Losses on Sales			(1.6	)			1.6				(3.3	)
Impairment (Devaluation)			(0.2	)			4.0				(4.2	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			(2.1	)			0.3				(2.4	)
Mizuho Bank
		First Quarter of Fiscal 2017				Change				First Quarter of Fiscal 2016
Net Gains (Losses) related to Stocks			62.6				54.0				8.5
Gains on Sales			66.5				48.0				18.5
Losses on Sales			(1.6	)			1.6				(3.2	)
Impairment (Devaluation)			(0.2	)			4.0				(4.2	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			(2.0	)			0.3				(2.3	)
Mizuho Trust & Banking
		First Quarter of Fiscal 2017				Change				First Quarter of Fiscal 2016
Net Gains (Losses) related to Stocks			8.9				3.9				4.9
Gains on Sales			9.0				3.9				5.0
Losses on Sales			(0.0	)			(0.0	)			(0.0	)
Impairment (Devaluation)			—				0.0				(0.0	)
Reversal of (Provision for) Reserve for Possible Losses on Investments			—				—				—
Gains (Losses) on Derivatives other than for Trading			(0.0	)			(0.0	)			(0.0	)

 

2-3

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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, 2017																As of March 31, 2017
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses
MHFG (Consolidated)
Other Securities			32,017.5				1,907.0				2,163.5				256.5				28,480.7				1,819.2				2,103.7				284.5
Japanese Stocks			3,613.3				1,947.6				1,979.3				31.7				3,542.0				1,854.4				1,898.2				43.8
Japanese Bonds			16,204.2				(2.0	)			38.8				40.8				13,245.1				21.1				55.8				34.6
Japanese Government Bonds			13,163.1				(11.6	)			11.0				22.7				10,264.3				8.7				25.2				16.5
Other			12,199.8				(38.5	)			145.3				183.9				11,693.5				(56.4	)			149.6				206.0
Foreign Bonds			9,235.2				(135.9	)			13.0				148.9				8,955.4				(144.3	)			13.0				157.3

 

*	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 ¥48.9 billion and ¥34.3 billion, which were recognized in the statement of income for June 30, 2017 and March 31, 2017 respectively, by applying the fair-value hedge method.

(2) Bonds Held to Maturity

 

		(Billions of yen)
		As of June 30, 2017																As of March 31, 2017
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses
MHFG (Consolidated)			3,467.2				20.9				29.4				8.4				3,815.6				31.0				37.3				6.2

Non-Consolidated

Aggregate Figures for the 2 Banks

(1) Other Securities

 

		(Billions of yen)
		As of June 30, 2017																As of March 31, 2017
						Unrealized Gains/Losses																Unrealized Gains/Losses
		Book Value								Gains				Losses				Book Value								Gains				Losses
MHBK
Other Securities			29,781.9				1,618.5				1,859.5				240.9				26,246.1				1,533.7				1,802.9				269.2
Japanese Stocks			3,294.8				1,742.5				1,776.6				34.1				3,230.9				1,658.1				1,701.5				43.4
Japanese Bonds			15,487.8				(0.8	)			38.2				39.0				12,477.7				21.7				54.7				33.0
Japanese Government Bonds			12,718.0				(10.2	)			10.8				21.1				9,765.9				9.6				24.6				15.0
Other			10,999.1				(123.0	)			44.7				167.8				10,537.3				(146.1	)			46.5				192.7
Foreign Bonds			8,714.2				(128.2	)			7.3				135.6				8,363.6				(135.9	)			11.5				147.5
MHTB
Other Securities			1,138.5				120.4				134.6				14.1				1,207.8				118.4				133.5				15.1
Japanese Stocks			231.9				126.5				129.2				2.6				231.2				124.2				127.1				2.8
Japanese Bonds			513.9				(1.1	)			0.5				1.7				567.3				(0.5	)			1.0				1.5
Japanese Government Bonds			444.9				(1.3	)			0.2				1.6				498.0				(0.9	)			0.6				1.5
Other			392.6				(5.0	)			4.7				9.7				409.2				(5.3	)			5.3				10.6
Foreign Bonds			219.7				(7.7	)			—				7.7				263.6				(8.3	)			0.2				8.6
Total
Other Securities			30,920.4				1,739.0				1,994.1				255.1				27,453.9				1,652.1				1,936.4				284.3
Japanese Stocks			3,526.8				1,869.1				1,905.9				36.7				3,462.1				1,782.4				1,828.7				46.2
Japanese Bonds			16,001.8				(1.9	)			38.7				40.7				13,045.1				21.1				55.7				34.6
Japanese Government Bonds			13,162.9				(11.6	)			11.0				22.7				10,264.0				8.7				25.2				16.5
Other			11,391.7				(128.1	)			49.4				177.5				10,946.6				(151.4	)			51.9				203.4
Foreign Bonds			8,933.9				(135.9	)			7.3				143.3				8,627.3				(144.3	)			11.8				156.1

 

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

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

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

*	Unrealized Gains/Losses include ¥48.9 billion and ¥34.3 billion, which were recognized in the statement of income (aggregate figures for the 2 banks) for June 30, 2017 and March 31, 2017 respectively, by applying the fair-value hedge method.

 

2-4

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Mizuho Financial Group, Inc.

 

(2) Bonds Held to Maturity

 

		(Billions of yen)
		As of June 30, 2017																As of March 31, 2017
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses
MHBK			3,467.2				20.9				29.4				8.4				3,815.6				31.0				37.3				6.2
MHTB			—				—				—				—				—				—				—				—
Total			3,467.2				20.9				29.4				8.4				3,815.6				31.0				37.3				6.2
(3) Investments in Subsidiaries and Affiliates
		(Billions of yen)
		As of June 30, 2017																As of March 31, 2017
		Book Value				Unrealized Gains/Losses												Book Value				Unrealized Gains/Losses
										Gains				Losses												Gains				Losses
MHBK			108.6				160.1				161.4				1.3				108.6				168.1				168.9				0.7
MHTB			—				—				—				—				—				—				—				—
Total			108.6				160.1				161.4				1.3				108.6				168.1				168.9				0.7

(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 in the statement of income by applying the fair-value hedge method. Unrealized Gains/Losses on Other Securities after excluding such Income/Loss (the "base amount") are 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, 2017								As of March 31, 2017
		Unrealized Gains/Losses								Unrealized Gains/Losses
						Change
Other Securities			1,858.0				73.1				1,784.8
Japanese Stocks			1,919.0				80.3				1,838.7
Japanese Bonds			(2.0	)			(23.2	)			21.1
Japanese Government Bonds			(11.6	)			(20.3	)			8.7
Other			(58.9	)			16.0				(75.0	)
Foreign Bonds			(156.2	)			6.6				(162.9	)
Non-Consolidated   Aggregate Figures for the 2 Banks
		(Billions of yen)
		As of June 30, 2017								As of March 31, 2017
		Unrealized Gains/Losses								Unrealized Gains/Losses
						Change
Other Securities			1,690.0				72.3				1,617.7
Japanese Stocks			1,840.4				73.7				1,766.6
Japanese Bonds			(1.9	)			(23.1	)			21.1
Japanese Government Bonds			(11.6	)			(20.3	)			8.7
Other			(148.4	)			21.6				(170.0	)
Foreign Bonds			(156.3	)			6.6				(162.9	)

 

2-5

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Mizuho Financial Group, Inc.

 

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

Non-Consolidated

Aggregate Figures for the 2 Banks

 

		(Billions of yen)
		As of June 30, 2017												As of March 31, 2017
		Deferred Hedge Gains/Losses												Deferred Hedge Gains/Losses
		Gains				Losses								Gains				Losses
MHBK			660.4				650.8				9.5				685.5				681.0				4.4
MHTB			106.2				104.1				2.1				109.5				107.1				2.3
Total			766.7				754.9				11.7				795.0				788.1				6.8

 

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

 

2-6

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Mizuho Financial Group, Inc.

 

5. Status of Disclosed Claims under the Financial Reconstruction Act ("FRA")

Consolidated

 

		(Billions of yen)
		As of June 30, 2017								As of March 31, 2017
Consolidated						Change
Claims against Bankrupt and Substantially Bankrupt Obligors			84.6				(13.8	)			98.4
Claims with Collection Risk			378.2				(22.9	)			401.2
Claims for Special Attention			403.3				(19.1	)			422.5
Total			866.2				(55.9	)			922.2
Trust Account
Claims against Bankrupt and Substantially Bankrupt Obligors			—				—				—
Claims with Collection Risk			2.8				—				2.8
Claims for Special Attention			—				—				—
Total			2.8				—				2.8
Total (Consolidated + Trust Account)
Claims against Bankrupt and Substantially Bankrupt Obligors			84.6				(13.8	)			98.4
Claims with Collection Risk			381.1				(22.9	)			404.1
Claims for Special Attention			403.3				(19.1	)			422.5
Total			869.1				(55.9	)			925.1

 

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

 

2-7

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Mizuho Financial Group, Inc.

 

Non-Consolidated

Aggregate Figures for the 2 Banks

 

		(Billions of yen, %)
		As of June 30, 2017								As of March 31, 2017
Total (Banking Account + Trust Account)						Change
Claims against Bankrupt and Substantially Bankrupt Obligors			69.5				(13.2	)			82.7
Claims with Collection Risk			368.4				(21.5	)			390.0
Claims for Special Attention			353.2				(14.0	)			367.2
Sub-total [1]			791.2				(48.7	)			840.0
NPL ratio [1]/[2]			0.96	%			(0.04	)%			1.00	%
Normal Claims			81,458.2				(1,258.1	)			82,716.4
Total [2]			82,249.4				(1,306.9	)			83,556.4
MHBK
Claims against Bankrupt and Substantially Bankrupt Obligors			68.4				(13.1	)			81.5
Claims with Collection Risk			362.8				(21.2	)			384.0
Claims for Special Attention			346.7				(13.9	)			360.7
Sub-total [3]			777.9				(48.2	)			826.2
NPL ratio [3]/[4]			0.98	%			(0.04	)%			1.03	%
Normal Claims			78,080.3				(1,284.6	)			79,364.9
Total [4]			78,858.3				(1,332.9	)			80,191.2
MHTB
Banking Account
Claims against Bankrupt and Substantially Bankrupt Obligors			1.1				(0.1	)			1.2
Claims with Collection Risk			2.7				(0.3	)			3.1
Claims for Special Attention			6.5				(0.0	)			6.5
Sub-total [5]			10.3				(0.5	)			10.9
NPL ratio [5]/[6]			0.30	%			(0.01	)%			0.32	%
Normal Claims			3,368.5				26.6				3,341.8
Total [6]			3,378.9				26.1				3,352.7
Trust Account
Claims against Bankrupt and Substantially Bankrupt Obligors			—				—				—
Claims with Collection Risk			2.8				—				2.8
Claims for Special Attention			—				—				—
Sub-total [7]			2.8				—				2.8
NPL ratio [7]/[8]			23.51	%			0.42	%			23.09	%
Normal Claims			9.3				(0.2	)			9.5
Total [8]			12.2				(0.2	)			12.4

 

Notes:

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

2. NPL: Non-Performing Loans

 

2-8

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Mizuho Financial Group, Inc.

 

6. Status of Deposits and Loans

Non-Consolidated

(1)-1 Deposits

Aggregate Figures for the 2 Banks

 

		(Billions of yen)
		As of June 30, 2017								As of March 31, 2017
						Change
MHBK			106,992.7				(797.0	)			107,789.8
MHTB			3,349.8				(37.5	)			3,387.3
Total			110,342.5				(834.6	)			111,177.1
(1)-2 Domestic Deposits
Aggregate Figures for the 2 Banks
		(Billions of yen)
		As of June 30, 2017								As of March 31, 2017
						Change
MHBK			88,620.8				(750.0	)			89,370.8
Individual deposits			41,116.1				740.5				40,375.6
MHTB			3,346.2				(27.1	)			3,373.4
Individual deposits			994.2				(12.0	)			1,006.3
Total			91,967.1				(777.2	)			92,744.3
Individual deposits			42,110.4				728.4				41,381.9
Note: Above figures do not include deposits booked at overseas offices and offshore deposits.
(2) Loans and Bills Discounted
Aggregate Figures for the 2 Banks
		(Billions of yen)
		As of June 30, 2017								As of March 31, 2017
						Change
MHBK			69,672.6				(1,590.2	)			71,262.8
MHTB			3,337.7				11.4				3,326.2
Total			73,010.3				(1,578.7	)			74,589.1

 

Note: Loans to MHFG are included as follows:

As of June 30, 2017:    ¥526.0 billion (from MHBK)

As of March 31, 2017: ¥656.1 billion (from MHBK)

(3) Interest Margins (Domestic Operations)

Mizuho Bank

 

				(%)
				First Quarter of Fiscal 2017 (For the three months)		Change		First Quarter of Fiscal 2016 (For the three months)
Return on Loans and Bills Discounted		1		0.83		(0.09)		0.92
Cost of Deposits		2		0.00		(0.00)		0.01
Loan and Deposit Rate Margin [1]-[2]		3		0.82		(0.08)		0.91
Notes:     1. Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).
2. Deposits include NCDs.
(Reference) After excluding Loans to the Japanese government and others

Return on Loans and Bills Discounted		4		0.89		(0.08)		0.97
Loan and Deposit Rate Margin [4]-[2]		5		0.88		(0.08)		0.96
Mizuho Trust & Banking
				(%)
				First Quarter of Fiscal 2017 (For the three months)		Change		First Quarter of Fiscal 2016 (For the three months)
Return on Loans and Bills Discounted		6		0.66		(0.02)		0.69
Cost of Deposits		7		0.02		(0.02)		0.04
Loan and Deposit Rate Margin [6]-[7]		8		0.64		(0.00)		0.64

Notes:     1. Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).                 2. Deposits include NCDs.
(Reference) After excluding Loans to the Japanese government and others

Return on Loans and Bills Discounted		9		0.70		(0.06)		0.76
Loan and Deposit Rate Margin [9]-[7]		10		0.68		(0.04)		0.72
(Reference)   Aggregate Figures for the 2 Banks
				(%)
				First Quarter of Fiscal 2017 (For the three months)		Change		First Quarter of Fiscal 2016 (For the three months)
Return on Loans and Bills Discounted		11		0.82		(0.08)		0.91
Cost of Deposits		12		0.00		(0.00)		0.01
Loan and Deposit Rate Margin [11]-[12]		13		0.81		(0.08)		0.90
Notes:     1. Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).                 2. Deposits include NCDs.
(Reference) After excluding Loans to the Japanese government and others

Return on Loans and Bills Discounted		14		0.87		(0.08)		0.96
Loan and Deposit Rate Margin [14]-[12]		15		0.87		(0.08)		0.95

 

2-9

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Mizuho Bank, Ltd.

 

(Attachments)

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO BANK

 

		Millions of yen
		As of June 30, 2017 (A)				As of March 31, 2017 (B)				Change (A) - (B)
Assets
Cash and Due from Banks		¥	35,677,852			¥	38,943,082			¥	(3,265,229	)
Call Loans			194,610				433,198				(238,588	)
Receivables under Resale Agreements			445,207				596,194				(150,987	)
Other Debt Purchased			704,067				728,080				(24,012	)
Trading Assets			4,270,219				4,234,901				35,318
Money Held in Trust			3,122				3,137				(15	)
Securities			34,412,116				31,264,703				3,147,413
Loans and Bills Discounted			69,672,621				71,262,838				(1,590,216	)
Foreign Exchange Assets			1,882,384				1,769,212				113,171
Derivatives other than for Trading			2,913,096				3,201,963				(288,866	)
Other Assets			2,919,983				2,268,678				651,305
Tangible Fixed Assets			819,655				828,363				(8,707	)
Intangible Fixed Assets			774,967				754,547				20,419
Prepaid Pension Cost			487,785				481,968				5,817
Customers' Liabilities for Acceptances and Guarantees			5,884,111				5,757,150				126,961
Reserves for Possible Losses on Loans			(411,157	)			(437,689	)			26,532
Total Assets		¥	160,650,645			¥	162,090,330			¥	(1,439,684	)
Liabilities
Deposits		¥	106,992,706			¥	107,789,803			¥	(797,096	)
Negotiable Certificates of Deposit			10,344,174				10,091,832				252,341
Call Money			803,774				775,450				28,324
Payables under Repurchase Agreements			7,731,493				7,604,970				126,523
Guarantee Deposits Received under Securities Lending Transactions			516,150				335,575				180,575
Commercial Paper			534,655				765,146				(230,491	)
Trading Liabilities			3,128,594				3,362,426				(233,831	)
Borrowed Money			8,402,152				9,136,351				(734,198	)
Foreign Exchange Liabilities			634,952				729,532				(94,580	)
Bonds and Notes			3,456,253				3,726,331				(270,078	)
Derivatives other than for Trading			2,603,644				2,836,858				(233,214	)
Other Liabilities			2,137,606				1,616,928				520,677
Reserve for Bonus Payments			334				20,902				(20,568	)
Reserve for Variable Compensation			1,595				1,269				326
Reserve for Possible Losses on Sales of Loans			58				298				(239	)
Reserve for Contingencies			20				52				(31	)
Reserve for Reimbursement of Deposits			16,060				17,575				(1,515	)
Reserve for Reimbursement of Debentures			30,781				32,720				(1,938	)
Deferred Tax Liabilities			175,835				186,153				(10,317	)
Deferred Tax Liabilities for Revaluation Reserve for Land			66,462				66,585				(123	)
Acceptances and Guarantees			5,884,111				5,757,150				126,961
Total Liabilities			153,461,420				154,853,914				(1,392,494	)
Net Assets
Common Stock and Preferred Stock			1,404,065				1,404,065				—
Capital Surplus			2,286,328				2,286,328				—
Capital Reserve			655,418				655,418				—
Other Capital Surplus			1,630,910				1,630,910				—
Retained Earnings			2,194,916				2,298,416				(103,500	)
Appropriated Reserve			266,664				225,810				40,853
Other Retained Earnings			1,928,251				2,072,606				(144,354	)
Retained Earnings Brought Forward			1,928,251				2,072,606				(144,354	)
Total Shareholders' Equity			5,885,310				5,988,810				(103,500	)
Net Unrealized Gains (Losses) on Other Securities, net of Taxes			1,152,493				1,099,468				53,025
Net Deferred Hedge Gains (Losses), net of Taxes			6,092				2,527				3,565
Revaluation Reserve for Land, net of Taxes			145,329				145,609				(280	)
Total Valuation and Translation Adjustments			1,303,915				1,247,605				56,310
Total Net Assets			7,189,225				7,236,415				(47,190	)
Total Liabilities and Net Assets		¥	160,650,645			¥	162,090,330			¥	(1,439,684	)

 

2-10

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Mizuho Bank, Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO BANK

 

		Millions of yen
		For the three months ended June 30, 2017 (A)				For the three months ended June 30, 2016 (B)				Change (A) - (B)
Ordinary Income		¥	551,949			¥	549,946			¥	2,003
Interest Income			314,054				279,386				34,667
Interest on Loans and Bills Discounted			214,937				195,565				19,372
Interest and Dividends on Securities			57,130				51,144				5,986
Fee and Commission Income			92,128				110,239				(18,111	)
Trading Income			7,115				50,366				(43,251	)
Other Operating Income			48,978				81,348				(32,370	)
Other Ordinary Income			89,672				28,604				61,068
Ordinary Expenses			447,166				418,306				28,859
Interest Expenses			151,033				104,134				46,898
Interest on Deposits			66,579				39,500				27,078
Fee and Commission Expenses			25,896				24,435				1,460
Trading Expenses			—				262				(262	)
Other Operating Expenses			11,104				28,210				(17,106	)
General and Administrative Expenses			223,519				220,393				3,125
Other Ordinary Expenses			35,614				40,870				(5,256	)
Ordinary Profits			104,783				131,639				(26,856	)
Extraordinary Gains			3,462				1,408				2,053
Extraordinary Losses			1,636				665				970
Income before Income Taxes			106,609				132,383				(25,773	)
Income Taxes:
Current			35,287				44,018				(8,730	)
Deferred			(29,166	)			(7,075	)			(22,091	)
Net Income		¥	100,489			¥	95,439			¥	5,049

 

2-11

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Mizuho Trust & Banking Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO TRUST & BANKING

 

		Millions of yen
		As of June 30, 2017 (A)				As of March 31, 2017 (B)				Change (A) - (B)
Assets
Cash and Due from Banks		¥	1,594,717			¥	1,699,040			¥	(104,322	)
Call Loans			19,936				6,956				12,979
Guarantee Deposits Paid under Securities Borrowing Transactions			217,345				113,046				104,299
Other Debt Purchased			7,400				9,196				(1,796	)
Trading Assets			88,101				90,487				(2,386	)
Money Held in Trust			3,512				3,286				226
Securities			1,183,558				1,253,105				(69,546	)
Loans and Bills Discounted			3,337,727				3,326,296				11,430
Foreign Exchange Assets			5,833				2,596				3,237
Other Assets			144,361				83,804				60,557
Tangible Fixed Assets			23,767				23,617				150
Intangible Fixed Assets			33,301				33,477				(175	)
Prepaid Pension Cost			49,214				49,230				(15	)
Customers' Liabilities for Acceptances and Guarantees			38,614				23,887				14,726
Reserves for Possible Losses on Loans			(4,712	)			(4,779	)			67
Total Assets		¥	6,742,682			¥	6,713,251			¥	29,431
Liabilities
Deposits		¥	3,349,873			¥	3,387,390			¥	(37,517	)
Negotiable Certificates of Deposit			305,510				327,620				(22,110	)
Call Money			375,475				242,493				132,982
Payables under Repurchase Agreements			67,200				67,320				(120	)
Guarantee Deposits Received under Securities Lending Transactions			274,675				310,303				(35,628	)
Trading Liabilities			81,635				83,683				(2,047	)
Borrowed Money			420,420				372,578				47,841
Bonds and Notes			10,000				10,000				—
Due to Trust Accounts			1,197,756				1,272,149				(74,393	)
Other Liabilities			57,215				36,173				21,042
Reserve for Bonus Payments			—				1,976				(1,976	)
Reserve for Variable Compensation			542				413				128
Reserve for Reimbursement of Deposits			1,406				1,496				(90	)
Deferred Tax Liabilities			10,917				9,692				1,225
Acceptances and Guarantees			38,614				23,887				14,726
Total Liabilities			6,191,242				6,147,179				44,063
Net Assets
Common Stock and Preferred Stock			247,369				247,369				—
Capital Surplus			15,505				15,505				—
Capital Reserve			15,505				15,505				—
Retained Earnings			188,856				205,013				(16,156	)
Appropriated Reserve			31,970				27,427				4,543
Other Retained Earnings			156,885				177,585				(20,699	)
Retained Earnings Brought Forward			156,885				177,585				(20,699	)
Total Shareholders' Equity			451,731				467,888				(16,156	)
Net Unrealized Gains (Losses) on Other Securities, net of Taxes			98,219				96,529				1,689
Net Deferred Hedge Gains (Losses), net of Taxes			1,489				1,654				(165	)
Total Valuation and Translation Adjustments			99,708				98,183				1,524
Total Net Assets			551,440				566,071				(14,631	)
Total Liabilities and Net Assets		¥	6,742,682			¥	6,713,251			¥	29,431

 

2-12

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Mizuho Trust & Banking Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO TRUST & BANKING

 

		Millions of yen
		For the three months ended June 30, 2017 (A)				For the three months ended June 30, 2016 (B)				Change (A) - (B)
Ordinary Income		¥	43,159			¥	44,016			¥	(857	)
Fiduciary Income			10,740				10,145				594
Interest Income			9,218				9,361				(143	)
Interest on Loans and Bills Discounted			6,406				6,574				(167	)
Interest and Dividends on Securities			2,349				2,360				(10	)
Fee and Commission Income			10,905				11,754				(848	)
Trading Income			296				75				220
Other Operating Income			2,148				7,238				(5,089	)
Other Ordinary Income			9,849				5,440				4,408
Ordinary Expenses			34,011				32,132				1,878
Interest Expenses			3,110				2,366				743
Interest on Deposits			229				394				(164	)
Fee and Commission Expenses			8,024				6,536				1,487
Trading Expenses			0				30				(30	)
Other Operating Expenses			515				501				13
General and Administrative Expenses			21,619				21,895				(276	)
Other Ordinary Expenses			741				800				(59	)
Ordinary Profits			9,148				11,883				(2,735	)
Extraordinary Losses			2				12				(10	)
Income before Income Taxes			9,145				11,870				(2,725	)
Income Taxes:
Current			1,736				3,325				(1,588	)
Deferred			850				417				432
Net Income		¥	6,558			¥	8,128			¥	(1,569	)

 

2-13

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Mizuho Securities Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO SECURITIES

 

		Millions of yen
		As of June 30, 2017 (A)				As of March 31, 2017 (B)				Change (A) - (B)
Assets
Current Assets
Cash and Bank Deposits		¥	324,515			¥	249,691			¥	74,824
Cash Segregated as Deposits for Customers and Others			232,868				230,214				2,654
Trading Assets			5,493,680				5,019,291				474,388
Receivables - Unsettled Trades			—				169,960				(169,960	)
Operating Investment Securities			22,832				21,762				1,069
Operating Loans Receivable			2,790				2,790				—
Receivables Related to Margin Transactions			74,132				96,255				(22,122	)
Collateralized Short-Term Financing Agreements-Receivable			3,449,077				3,821,571				(372,494	)
Advances Paid			419				191				228
Securities: Fail to Deliver			34,433				28,695				5,738
Short-Term Loans Receivable			29,456				22,459				6,997
Deferred Tax Assets			15,086				15,302				(215	)
Other Current Assets			574,335				537,638				36,697
Less: Allowance for Doubtful Accounts			(6	)			(6	)			—
Noncurrent Assets
Property and Equipment			14,666				15,087				(420	)
Intangible Assets			50,508				50,195				313
Investments and Other Assets			292,878				297,330				(4,451	)
Total Assets		¥	10,611,678			¥	10,578,433			¥	33,245
Liabilities
Current Liabilities
Trading Liabilities		¥	3,687,992			¥	3,771,283			¥	(83,291	)
Payables - Unsettled Trades			120,225				—				120,225
Payables Related to Margin Transactions			41,868				55,287				(13,418	)
Collateralized Short-Term Financing Agreements-Payable			3,728,556				3,727,318				1,238
Deposits Received			244,393				234,622				9,771
Guarantee Deposits Received			205,587				184,821				20,765
Securities: Fail to Receive			10,253				12,844				(2,591	)
Short-Term Borrowings			767,854				716,603				51,251
Commercial Paper			100,200				111,300				(11,100	)
Bonds and Notes Due within One Year			43,717				55,323				(11,605	)
Lease Obligations			377				375				1
Income Taxes Payable			871				—				871
Accrued Employees’ Bonuses			2,669				13,432				(10,763	)
Provision for Variable Compensation			1,069				855				213
Provision for Bonus Point Redemption			678				596				82
Other Current Liabilities			23,688				28,513				(4,824	)
Noncurrent Liabilities
Bonds and Notes			541,968				554,903				(12,934	)
Long-Term Borrowings			231,300				233,500				(2,200	)
Lease Obligations			408				494				(86	)
Provision for Retirement Benefits			19,293				19,536				(243	)
Other Noncurrent Liabilities			1,439				1,647				(207	)
Statutory Reserves
Reserve for Financial Instruments Transaction Liabilities			2,285				2,291				(5	)
Total Liabilities			9,776,699				9,725,551				51,148
Net Assets
Common Stock			125,167				125,167				—
Capital Surplus			381,649				381,649				—
Additional Paid - in Capital			285,831				285,831				—
Other Capital Surplus			95,817				95,817				—
Retained Earnings			313,840				332,177				(18,336	)
Other Retained Earnings			313,840				332,177				(18,336	)
Retained Earnings Brought Forward			313,840				332,177				(18,336	)
Total Shareholders' Equity			820,656				838,993				(18,336	)
Net Unrealized Gains on (Operating) Investment Securities, net of Tax			26,781				22,719				4,062
Net Deferred Gains or Losses on Hedges, net of Tax			(12,459	)			(8,831	)			(3,628	)
Total Valuation and Translation Adjustments			14,321				13,887				433
Total Net Assets			834,978				852,881				(17,903	)
Total Liabilities and Net Assets		¥	10,611,678			¥	10,578,433			¥	33,245

 

2-14

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Mizuho Securities Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO SECURITIES

 

		Millions of yen
		For the three months ended June 30, 2017 (A)				For the three months ended June 30, 2016 (B)				Change (A) - (B)
Operating Revenues		¥	68,413			¥	78,985			¥	(10,572	)
Commissions			31,026				30,463				562
Net Gain on Trading			23,904				40,358				(16,453	)
Net Gain on Operating Investment Securities			35				(162	)			197
Interest and Dividend Income			13,446				8,325				5,120
Interest Expenses			10,237				7,392				2,844
Net Operating Revenues			58,175				71,593				(13,417	)
Selling, General and Administrative Expenses			54,277				55,731				(1,454	)
Transaction-Related Expenses			10,240				11,586				(1,346	)
Personnel Expenses			19,222				20,697				(1,475	)
Real Estate Expenses			6,185				6,315				(130	)
Administrative Expenses			12,096				10,910				1,185
Depreciation and Amortization			4,265				3,998				267
Taxes and Dues			1,297				1,218				78
Provision of Allowance for Doubtful Accounts			(4	)			(61	)			56
Other			974				1,065				(91	)
Operating Income			3,898				15,861				(11,963	)
Non-Operating Income			5,527				2,983				2,543
Non-Operating Expenses			311				411				(99	)
Ordinary Income			9,114				18,434				(9,320	)
Extraordinary Gain			1,342				184				1,158
Extraordinary Loss			44				309				(264	)
Income before Income Taxes			10,411				18,309				(7,897	)
Income Taxes:
Current			40				1,834				(1,793	)
Deferred			2,511				2,765				(253	)
Net Income		¥	7,859			¥	13,709			¥	(5,849	)

 

2-15