UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 20-F(Mark One)‘ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2014
OR
‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
‘ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
For the transition period fromtoCommission file number 001-33098

Kabushiki(Exact
KaishaMizuho Financial Group
name of Registrant as specified in its charter)
Mizuho Financial Group, Inc.
(Translation of Registrant’s name into English)

Japan(Jurisdiction of incorporation or organization)

1-5-5 Otemachi
Chiyoda-ku, Tokyo 100-8176
Japan(Address of principal executive offices)

Yutaka Ueki, +81-3-5224-1111, +81-3-5224-1059, address is same as above(Name, Telephone, Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of each className of each exchange on which registered

Common Stock, without par value
American depositary shares, each of which represents two shares ofcommon stock
Securities registered or to be registered pursuant to Section 12(g) of the Act.
None

The New York Stock Exchange*
The New York Stock Exchange(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
(Title of Class)
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual
report.
At March 31, 2014, the following shares of capital stock were issued: (1) 24,263,885,187 shares of common stock (including 10,637,825 shares ofcommon stock held by the registrant as treasury stock), (2) 914,752,000 shares of eleventh series class XI preferred stock (including 602,100,700 shares of
eleventh series class XI preferred stock held by the registrant as treasury stock).
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes È No ‘
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
Yes ‘ No È
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days.
Yes È No ‘
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required tobe submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that theregistrant was required to submit and post such files).
Yes È No ‘
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer andlarge accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer È
Accelerated filer ‘
Non-accelerated filer ‘
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP È
International Financial Reporting Standards as issued by the International Accounting Standards Board ‘
Other ‘If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 ‘ Item 18 ‘
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ‘ No È
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Actof 1934 subsequent to the distribution of securities under a plan confirmed by a court.
‘ Yes ‘ No
* Not for trading, but only in connection with the registration and listing of the ADSs.

MIZUHO FINANCIAL GROUP, INC.
ANNUAL REPORT ON FORM 20-F
Table of Contents
Page

Presentation of Financial and Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forward-Looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 1.
Identity of Directors, Senior Management and Advisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 2.
Offer Statistics and Expected Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 3.
Key Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.A. Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.B.
Capitalization and Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.C.
Reasons for the Offer and Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.D. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 4.
Information on the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.A. History and Development of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.B.
Business Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.C.
Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.D. Property, Plant and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 4A. Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 5.
Operating and Financial Review and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 6.
Directors, Senior Management and Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.A. Directors and Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.B.
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.C.
Board Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.D. Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.E.
Share Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 7.
Major Shareholders and Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.A. Major Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.B.
Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.C.
Interests of Experts and Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 8.
Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.A. Consolidated Statements and Other Financial Information . . . . . . . . . . . . . . . . . . . . .
8.B.
Significant Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 9.
The Offer and Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.A. Listing Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.B.
Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.C.
Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.D. Selling Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.E.
Dilution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.F.
Expenses of the Issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 10.
Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.A. Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.B. Memorandum and Articles of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.C. Material Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.D. Exchange Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.E. Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.F. Dividends and Paying Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.G. Statement by Experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.H. Documents on Display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.I. Subsidiary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1

3
3
5
5
5
5
10
10
10
20
20
21
47
49
49
50
117
117
135
137
141
142
144
144
145
145
146
146
146
147
147
148
148
149
149
149
150
150
150
162
162
163
169
169
169
169

Page

ITEM 11.
ITEM 12.

Quantitative and Qualitative Disclosures about Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . .
Description of Securities Other than Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.A. Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.B. Warrants and Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.C. Other Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.D. American Depositary Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 13.
Defaults, Dividend Arrearages and Delinquencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 14.
Material Modifications to the Rights of Securities Holders and Use of Proceeds . . . . . . . . . .
ITEM 15.
Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 16A. Audit Committee Financial Expert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 16B. Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 16C. Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 16D. Exemptions from the Listing Standards for Audit Committees . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 16E. Purchase of Equity Securities by the Issuer and Affiliated Purchasers . . . . . . . . . . . . . . . . . . .
ITEM 16F. Change in Registrant’s Certifying Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 16G. Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 17.
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 18.
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 19.
Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selected Statistical Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Index to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

170
190
190
190
190
190
191
191
191
192
192
192
193
194
194
194
196
196
196
A-1
F-1

PRESENTATION OF FINANCIAL AND OTHER INFORMATIONIn this annual report, “we,” “us,” and “our” refer to Mizuho Financial Group, Inc. and, unless the context
indicates otherwise, its consolidated subsidiaries. “Mizuho Financial Group” refers to Mizuho Financial Group,
Inc. Furthermore, unless the context indicates otherwise, these references are intended to refer to us as if we had
been in existence in our current form for all periods referred to herein.
On July 1, 2013, a merger between the former Mizuho Bank, Ltd. and the former Mizuho Corporate Bank,
Ltd. came into effect with the former Mizuho Corporate Bank as the surviving entity, which was renamed
Mizuho Bank upon the merger. In this annual report, “Mizuho Bank” refers to the post-merger entity, while the“former Mizuho Bank” and the “former Mizuho Corporate Bank” refer to pre-merger Mizuho Bank andpre-merger Mizuho Corporate Bank, respectively.
In this annual report, “our principal banking subsidiaries” refer to Mizuho Bank and Mizuho
Trust & Banking Co., Ltd. (or with respect to references as of a date, or for periods ending, before July 1, 2013,
to the former Mizuho Bank, the former Mizuho Corporate Bank and Mizuho Trust & Banking).
In this annual report, references to “U.S. dollars,” “dollars” and “$” refer to the lawful currency of theUnited States and those to “yen” and “¥” refer to the lawful currency of Japan.
In this annual report, yen figures and percentages have been rounded to the figures shown. However, insome cases, figures presented in tables have been adjusted to match the sum of the figures with the total amount,and such figures may also be referred to in the related text. In addition, yen figures and percentages in “Item 3.A.
Key Information—Selected Financial Data—Japanese GAAP Selected Consolidated Financial Information” andothers that are specified have been truncated to the figures shown.
Our fiscal year end is March 31. References to years not specified as being fiscal years are to calendar years.
Unless otherwise specified, for purposes of this annual report, we have presented our financial informationin accordance with accounting principles generally accepted in the United States, or U.S. GAAP. Unlessotherwise stated or the context otherwise requires, all amounts in our financial statements are expressed inJapanese yen.
We usually hold the ordinary general meeting of shareholders of Mizuho Financial Group in June of eachyear in Chiyoda-ku, Tokyo.
FORWARD-LOOKING STATEMENTS
We may from time to time make written or oral forward-looking statements. Written forward-looking
statements may appear in documents filed with the Securities and Exchange Commission, including this annual
report, and other reports to shareholders and other communications.
The U.S. Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking
information to encourage companies to provide prospective information about themselves. We rely on this safe
harbor in making these forward-looking statements.
This annual report contains forward-looking statements regarding the intent, belief, current expectations andtargets of our management with respect to our financial condition and future results of operations. 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 inrelation 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 respect3

to future events and are subject to risks, uncertainties and assumptions. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect, our actual results may varymaterially from those we currently anticipate. Potential risks and uncertainties include, without limitation, thefollowing:•

incurrence of significant credit-related costs;•

declines in the value of our securities portfolio, including as a result of the declines in stock markets andthe impact of the dislocation in the global financial markets;•changes in interest rates;•

foreign exchange rate 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 and other strategic initiatives and measureseffectively;•

the effectiveness of our operation, legal and other risk management policies;•

the effect of changes in general economic conditions in Japan and elsewhere; and•amendments and other changes to the laws and regulations that are applicable to us.

Our forward-looking statements are not guarantees of future performance and involve risks anduncertainties. Actual results may differ from those in the forward-looking statements as a result of various
factors. We identify in this annual report in “Item 3.D. Key Information—Risk Factors,” “Item 4.B. Informationon the Company—Business Overview,” “Item 5. Operating and Financial Review and Prospects” and elsewhere,
some, but not necessarily all, of the important factors that could cause these differences.
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.

4

PART IITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
3.A. Selected Financial Data
The following tables set forth our selected consolidated financial data.
The first table below sets forth selected consolidated financial data of Mizuho Financial Group as of and forthe fiscal years ended March 31, 2010, 2011, 2012, 2013 and 2014 which have been derived from the audited
consolidated financial statements of Mizuho Financial Group prepared in accordance with U.S. GAAP includedin this annual report.
The second table below sets forth selected consolidated financial data of Mizuho Financial Group as of andfor the fiscal years ended March 31, 2010, 2011, 2012, 2013 and 2014 derived from Mizuho Financial Group’s
consolidated financial statements prepared in accordance with accounting principles generally accepted in Japan,
or Japanese GAAP.
The consolidated financial statements of Mizuho Financial Group as of and for the fiscal years ended
March 31, 2012, 2013 and 2014 prepared in accordance with U.S. GAAP have been audited in accordance withthe standards of the Public Company Accounting Oversight Board (United States) by Ernst & Young ShinNihon
LLC, independent registered public accounting firm.
You should read the U.S. GAAP selected consolidated financial information presented below together with
the information included in “Item 5. Operating and Financial Review and Prospects” and the audited
consolidated financial statements, including the notes thereto, included in this annual report. The information
presented below is qualified in its entirety by reference to that information.

5

U.S. GAAP Selected Consolidated Financial Information
As of and for the fiscal years ended March 31,
2010
2011
2012
2013
2014
(in millions of yen, except per share data, share number information and percentages)

Statement of income data:
Interest and dividend income . . . ¥Interest expense . . . . . . . . . . . . . .

1,632,282 ¥
528,159

1,460,184 ¥
448,857

1,437,086 ¥
415,959

1,423,375 ¥
412,851

1,422,799
401,565

1,104,123

1,011,327

1,021,127

1,010,524

1,021,234

222,102647(23,044)

139,947(126,230)

Net interest income after
provision (credit) for loan
losses . . . . . . . . . . . . . . . . . . . .
Noninterest income . . . . . . . . . . .
Noninterest expenses . . . . . . . . . .

882,0211,330,847
1,526,413

1,010,680
1,036,532
1,435,855

1,044,171
1,090,135
1,471,471

870,577
1,439,419
1,424,816

1,147,464
1,082,834
1,503,955

Income before income tax
expense (benefit) . . . . . . . . . . .
Income tax expense (benefit) . . .

686,455(360,195)

611,357
193,227

662,835
13,878885,180
4,024

726,343
226,108

1,046,650

418,130

648,957

881,156

500,235

46,961

5,461(7,432)

5,744

1,751

999,689 ¥412,669 ¥

656,389 ¥875,412 ¥498,484

Net interest income . . . . . . . . . . .
Provision (credit) for loan
losses . . . . . . . . . . . . . . . . . . . .

Net income . . . . . . . . . . . . . . . . .
Less: Net income (loss)
attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . .
Net income attributable to
MHFG shareholders . . . . . . . . ¥Net income attributable tocommon shareholders . . . . . . . ¥988,603 ¥403,231 ¥647,717 ¥
867,191 ¥491,739
Amounts per share:
Basic earnings per commonshare—net income attributable
to common shareholders . . . . . ¥70.55 ¥
20.44 ¥
28.07 ¥
36.05 ¥
20.33
Diluted earnings per commonshare—net income attributable
to common shareholders . . . . . ¥61.64 ¥
19.22 ¥
26.78 ¥
34.47 ¥
19.64
Number of shares used to
calculate basic earnings percommon share (inthousands) . . . . . . . . . . . . . . . .
14,013,058
19,722,818
23,073,544
24,053,282
24,189,670
Number of shares used to
calculate diluted earnings percommon share (inthousands) . . . . . . . . . . . . . . . .
16,200,812
21,415,109
24,469,539
25,365,229
25,371,252
Cash dividends per sharedeclared during the fiscal
year(1):
Common stock . . . . . . . . . . . ¥10.00 ¥
8.00 ¥
6.00 ¥
6.00 ¥
6.00$
0.11 $
0.10 $
0.07 $
0.06 $
0.06
Eleventh series class XI
preferred stock . . . . . . . . . ¥20.00 ¥
20.00 ¥
20.00 ¥
20.00 ¥
20.00$
0.21 $
0.24 $
0.24 $
0.21 $
0.19
Thirteenth series class XIII
preferred stock(2) . . . . . . . ¥30.00 ¥
30.00 ¥
30.00 ¥
30.00 ¥
30.00$
0.32 $
0.36 $
0.36 $
0.32 $
0.29
6

As of and for the fiscal years ended March 31,
2010
2011
2012
2013
2014
(in millions of yen, except per share data, share number information and percentages)

Balance sheet data:
Total assets . . . . . . . . . . . . . . . . . ¥158,351,456 ¥161,985,670 ¥166,361,633 ¥178,746,994 ¥175,699,346
Loans, net of allowance . . . . . . . . 62,903,418
63,955,284
65,306,370
69,060,526
72,858,777
Total liabilities . . . . . . . . . . . . . . 155,019,438 157,950,314 161,714,609 172,889,899 169,077,975
Deposits . . . . . . . . . . . . . . . . . . . .
86,776,251
89,215,627
91,234,380 100,221,556 102,610,154
Long-term debt . . . . . . . . . . . . . .
8,482,434
8,953,496
8,461,818
8,802,223
9,853,941
Common stock . . . . . . . . . . . . . . .
4,324,705
5,164,160
5,427,992
5,460,821
5,489,295
Total MHFG shareholders’equity . . . . . . . . . . . . . . . . . . . .
2,966,215
3,673,487
4,470,766
5,728,120
6,378,470
Other financial data:
Return on equity and assets:
Net income attributable tocommon shareholders as apercentage of total averageassets . . . . . . . . . . . . . . . . . . . .
0.62%
0.25%
0.39%
0.50%
0.27%
Net income attributable tocommon shareholders as apercentage of average MHFG
shareholders’ equity . . . . . . . .
39.99%
12.63%
15.56%
18.76%
9.64%
Dividends per common share as apercentage of basic earnings
per common share . . . . . . . . . .
11.34%
29.35%
21.38%
16.64%
31.97%
Average MHFG shareholders’equity as a percentage of total
average assets . . . . . . . . . . . . .
1.56%
2.01%
2.53%
2.67%
2.84%
Net interest income as apercentage of total averageinterest-earning assets . . . . . . .
0.82%
0.75%
0.71%
0.66%
0.64%
Notes:(1) Yen amounts are expressed in U.S. dollars at the rate of ¥93.40 = $1.00, ¥82.76 = $1.00, ¥82.41 = $1.00,¥94.16 = $1.00 and ¥102.98 = $1.00 for the fiscal years ended March 31, 2010, 2011, 2012, 2013 and 2014,
respectively. These rates are the noon buying rates on the respective fiscal year-end dates in New York City
for cable transfers in yen as certified for customs purposes by the Federal Reserve Bank of New York.
(2) On July 11, 2013, we acquired and subsequently cancelled all of the thirteenth series class XIII preferredstock.

7

Japanese GAAP Selected Consolidated Financial Information
2010

Statement of income data:
Interest income . . . . . . . . . . . . ¥Interest expense . . . . . . . . . . . .
Net interest income . . . . . . . . .
Fiduciary income . . . . . . . . . . .
Net fee and commission
income(1) . . . . . . . . . . . . . . .
Net trading income . . . . . . . . . .
Net other operating income . . .
General and administrative
expenses(1) . . . . . . . . . . . . . .
Other income . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . .
Income before income taxes
and minority interests . . . . . .
Income taxes:
Current(2) . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . .
Income before minority
interests . . . . . . . . . . . . . . . .
Minority interests in net
income . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . ¥As of and for the fiscal years ended March 31,
2011
2012
2013
(in millions of yen, except per share data and percentages)

2014

1,571,994 ¥
420,287
1,151,707
49,1001,457,687 ¥
348,242
1,109,444
49,3881,423,564 ¥
335,223
1,088,340
49,014

1,421,609 ¥
345,710
1,075,898
48,506

1,417,569
309,266
1,108,303
52,014

466,040
312,330
17,436458,824
243,983
163,680

458,933
150,317
256,468

507,378
215,033
324,899

560,768
187,421
126,774

1,317,247
266,125
567,728

1,277,848
156,212268,261

1,283,847
263,024265,803

1,244,647
198,063407,299

1,258,227
344,275
135,962

377,765

635,425

716,449

717,832

985,366

18,04025,10818,336
120,123

55,332
97,49450,4007,461

137,010
77,960334,617496,965563,621659,970

770,396

95,212
239,404 ¥

83,736413,228 ¥79,102484,519 ¥

99,454
560,516 ¥81,980688,415

Net income per share:
Basic . . . . . . . . . . . . . . . . . . . . ¥16.29 ¥
20.47 ¥
20.62 ¥
22.96 ¥
28.18
Diluted . . . . . . . . . . . . . . . . . .
15.57
19.27
19.75
22.05
27.12
Cash dividends per share declared
during the fiscal year(3):Common stock(4) . . . . . . . . . . . ¥10.00 ¥
8.00 ¥
6.00 ¥
6.00 ¥
6.00$
0.11 $
0.10 $
0.07 $
0.06 $
0.06
Eleventh series class XI
preferred stock(4) . . . . . . . . . ¥20.00 ¥
20.00 ¥
20.00 ¥
20.00 ¥
20.00$
0.21 $
0.24 $
0.24 $
0.21 $
0.19
Thirteenth series class XIII
preferred stock(5) . . . . . . . . . ¥30.00 ¥
30.00 ¥
30.00 ¥
30.00 ¥
30.00$
0.32 $
0.36 $
0.36 $
0.32 $
0.29
Balance sheet data:
Total assets . . . . . . . . . . . . . . . ¥ 156,253,572 ¥ 160,812,006 ¥ 165,360,501 ¥ 177,411,062 ¥ 175,822,885
Loans and bills discounted(6) . . 62,164,579
62,777,757
63,800,509
67,536,882
69,301,405
Securities . . . . . . . . . . . . . . . . . 43,096,460
44,782,067
51,392,878
53,472,399
43,997,517
Deposits(7) . . . . . . . . . . . . . . . . 86,627,588
88,884,158
90,636,656
99,568,737 101,811,282
Net assets . . . . . . . . . . . . . . . . .
5,837,053
6,623,999
6,869,295
7,736,230
8,304,549
Risk-adjusted capital data
(Basel II)(8):Tier 1 capital . . . . . . . . . . . . . . ¥ 5,173,496 ¥ 6,170,210 ¥ 6,398,953
n.a.
n.a.
Total risk-based capital . . . . . .
7,658,062
7,910,970
7,775,093
n.a.
n.a.
Risk-weighted assets . . . . . . . . 56,863,252
51,693,835
50,144,934
n.a.
n.a.
Tier 1 capital ratio . . . . . . . . . .
9.09%
11.93%
12.76%
n.a.
n.a.
Capital adequacy ratio . . . . . . .
13.46
15.30
15.50
n.a.
n.a.

8

As of and for the fiscal years ended March 31,
2011
2012
2013
(in millions of yen, except per share data and percentages)

2010

Risk-adjusted capital data
(Basel III)(8):Common Equity Tier 1
capital . . . . . . . . . . . . . . . . .
Tier 1 capital . . . . . . . . . . . . . .
Total capital . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . .
Common Equity Tier 1 capitalratio . . . . . . . . . . . . . . . . . . .
Tier 1 capital ratio . . . . . . . . .
Total capital ratio . . . . . . . . . .

2014

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.a.
n.a.

n.a. ¥ 4,803,820 ¥ 5,304,408
n.a.
6,487,449
6,844,734
n.a.
8,344,509
8,655,971
n.a.
58,823,585
60,287,460

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

8.16%
11.02
14.18

8.79%
11.35
14.35

Notes:
(1)

(2)
(3)

(4)
(5)

(6)

(7)
(8)

For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency
business and pension management business, which had been recorded as “General and administrative
expenses” by Mizuho Trust & Banking until the previous fiscal year, have been included in “Net fee andcommission income” as “Fee and commission expenses,” and reclassification of prior year figures has
been made accordingly.
Includes refund of income taxes.
Yen amounts are expressed in U.S. dollars at the rate of ¥93.40 = $1.00, ¥82.76 = $1.00, ¥82.41 = $1.00,¥94.16 = $1.00 and ¥102.98 = $1.00 for the fiscal years ended March 31, 2010, 2011, 2012, 2013 and2014, respectively. These rates are the noon buying rates on the respective fiscal year-end dates in New
York City for cable transfers in yen as certified for customs purposes by the Federal Reserve Bank of New
York.
In June 2014, we declared and paid annual dividends of ¥6.5 per share of common stock and ¥20 per shareof eleventh series class XI preferred stock for the fiscal year ended March 31, 2014.
On July 11, 2013, we acquired and subsequently cancelled all of the thirteenth series class XIII preferredstock. Accordingly, cash dividend payments related to the thirteenth series class XIII preferred stock forthe fiscal year ended March 31, 2014 will not be declared during the fiscal year ending March 31, 2015.
Bills discounted refer to a form of financing in Japan under which promissory notes obtained bycorporations through their regular business activities are purchased by banks prior to their payment dates at
a discount based on prevailing interest rates.
Includes negotiable certificates of deposit.
Risk-adjusted capital data are calculated on a Basel II basis until the fiscal year ended March 31, 2012, andon a Basel III basis from the fiscal year ended March 31, 2013. We adopted the advanced internal ratingsbased approach (the “AIRB approach”) for the calculation of risk-weighted assets associated with credit
risk from the fiscal year ended March 31, 2009. We also adopted the advanced measurement approach (the“AMA”) for the calculation of operational risk from the fiscal year ended March 31, 2010. For more details
on capital adequacy requirements set by the Bank for International Settlements (“BIS”), and the guideline
implemented by the Financial Services Agency in compliance thereto, see “Item 5. Operating and
Financial Review and Prospects—Capital Adequacy.”

There are certain differences between U.S. GAAP and Japanese GAAP. The differences between U.S.
GAAP and Japanese GAAP applicable to us primarily relate to the accounting for derivative financial
instruments and hedging activities, investments, loans, allowances for loan losses and off-balance-sheet
instruments, premises and equipment, real estate sales and leasebacks, land revaluation, business combinations,pension liabilities, consolidation of variable interest entities and deferred taxes. See “Item 5. Operating and
Financial Review and Prospects—Reconciliation with Japanese GAAP.”

9

Exchange Rate Information
The following table sets forth, for each period indicated, the noon buying rate in New York City for cabletransfers in yen as certified for customs purposes by the Federal Reserve Bank of New York, expressed inJapanese yen per $1.00. The exchange rates are reference rates and are not necessarily the rates used to calculate
ratios or the rates used to convert yen to U.S. dollars in the financial statements contained in this annual report.
Fiscal years ended (ending) March 31,

High2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 (through July 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Low
Average(1)(yen per dollar)

Periodend¥100.71
94.68
85.26
96.16
105.25103.94¥ 86.12
78.74
75.72
77.41
92.96
101.26¥ 92.49
85.00
78.86
83.26
100.46
101.64¥ 93.40
82.76
82.41
94.16
102.98101.37¥104.87
102.71103.38103.94102.34102.69102.19¥102.20101.11101.36101.43101.26101.28101.26

—
—
—
—
—
—
—

—
—
—
—
—
—
—

Calendar year 2014

January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July (through July 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note:(1) Calculated by averaging the exchange rates on the last business day of each month during the respective
periods. The noon buying rate as of July 18, 2014 was ¥101.37 = $1.00.
3.B. Capitalization and Indebtedness
Not applicable.
3.C. Reasons for the Offer and Use of Proceeds
Not applicable.
3.D. Risk Factors
Investing in our securities involves a high degree of risk. You should carefully consider the risks described
below as well as the other information in this annual report, including our consolidated financial statements andrelated notes, “Item 5. Operating and Financial Review and Prospects,” “Item 11. Quantitative and Qualitative
Disclosures about Market Risk” and “Selected Statistical Data.”
Our business, financial condition and operating results could be materially adversely affected by any of thefactors discussed below. The trading price of our securities could decline due to any of these factors. This annual
report also contains forward-looking statements that involve risks and uncertainties. Our actual results could
differ materially from those anticipated in these forward-looking statements as a result of various factors,
including the risks faced by us described below and elsewhere in this annual report. See “Forward-Looking
Statements.”
10

Risks Relating to Our BusinessWe may incur significant credit-related and other costs in the future due to problem loans.
We are the primary bank lender for a large number of our corporate customers, and the amount of our loans
and other claims to each of our major customers is significant. In addition, while we have made efforts todiversify our credit exposure along industry lines, the proportion of credit exposure to customers in theconstruction and real estate, banks and other financial institutions, and wholesale and retail industries is relatively
high. We manage our credit portfolio by regularly monitoring the credit profile of each of our customers, theprogress made on restructuring plans and credit exposure concentrations in particular industries or corporategroups, and we also utilize credit derivatives for hedging and credit risk mitigation purposes. In addition, we
regularly assess the value of collateral and guarantees. However, depending on trends in the domestic and global
economic environment, the business environment in particular industries and other factors, the amount of ourproblem loans and other claims could increase significantly, including as a result of the deterioration in the credit
profile of customers for which we are the primary bank lender, other major customers or customers belonging toindustries to which we have significant credit exposure, and the value of collateral and guarantees could decline.
There can be no assurance that credit-related and other costs will not increase in the future as a result of theforegoing or otherwise.
Our equity investment portfolio exposes us to market risks that could adversely affect our financial
condition and results of operations.
We hold substantial investments in marketable equity securities, mainly common stock of Japanese listedcompanies. In addition to the partial hedges that we apply as we deem necessary in recent years, we sold aportion of such investments, and we may make further sales in the future. However, significant declines inJapanese stock prices in the future would lead to unrealized losses, losses on impairment and losses from sales of
equity securities which could have a material adverse effect on our financial condition and results of operations.
In addition, net unrealized gains and losses on such investments, based on Japanese GAAP, are taken into
account when calculating the amount of capital for purposes of the calculation of our capital adequacy ratios, andas a result, a decline in the value of such investments would negatively affect such ratios. Accordingly, ourfinancial condition and results of operations could be materially and adversely affected.
Changes in interest rates could adversely affect our financial condition and results of operations.
We hold a significant amount of bonds, consisting mostly of Japanese government bonds, and other
instruments primarily for the purpose of investment. As a result of such holdings, an increase in interest rates,
primarily yen interest rates, could lead to unrealized losses of bonds or losses from sales of bonds. In addition,
due mainly to differences in maturities between financial assets and liabilities, changes in interest rates could
have an adverse effect on our average interest rate spread. We manage interest rate risk under our risk
management policies, which provide for adjustments in the composition of our bond portfolio and the utilizationof derivatives and other hedging methods to reduce our exposure to interest rate risk. However, in the event ofsignificant changes in interest rates, including as a result of a change in Japanese monetary policy, increased
sovereign risk due to deterioration of public finances and market trends, our financial condition and results ofoperations could be materially and adversely affected.
Our financial condition and results of operations could be adversely affected by foreign exchange rate
fluctuations.
A portion of our assets and liabilities is denominated in foreign currencies, mainly the U.S. dollar. The
difference between the amount of assets and liabilities denominated in foreign currencies leads to foreign
currency translation gains and losses in the event of fluctuations in foreign exchange rates. Although we hedge a
portion of our exposure to foreign exchange rate fluctuation risk, our financial condition and results of operations
could be materially and adversely affected if future foreign exchange rate fluctuations significantly exceed our
expectations.
11

We may incur further losses relating to decreases in the market liquidity of assets that we hold.
The market liquidity of the various marketable assets that we hold may decrease significantly due to turmoil
in financial markets and other factors, and the value of such assets could decline as a result. If factors such as
turmoil in global financial markets or the deterioration of economic or financial conditions cause the market
liquidity of our assets to decrease significantly, our financial condition and results of operations could bematerially and adversely affected.
Our pension-related costs could increase as a result of revised assumptions or changes in our pension
plans.
Our pension-related costs and projected benefit obligations are calculated based on assumptions regarding
projected returns on pension plan assets and various actuarial assumptions relating to the plans. If actual results
differ from our assumptions or we revise our assumptions in the future, due to changes in the stock markets,
interest rate environment or otherwise, our pension-related costs and projected benefit obligations could increase.
In addition, any future changes to our pension plans could also lead to increases in our pension-related costs andprojected benefit obligations. As a result, our financial condition and results of operations could be materiallyand adversely affected.
A decline in deferred tax assets due to a change in our estimation of future taxable income or change inJapanese tax policy could adversely affect our financial condition and results of operations.
We recorded deferred tax assets based on a reasonable estimation of future taxable income in accordancewith applicable accounting standards. Our financial condition and results of operations could be materially andadversely affected if our deferred tax assets decline due to a change in our estimation of future taxable income, achange in tax rate as a result of tax system revision and other factors.
Financial transactions entered into for hedging and other similar purposes could adversely affect our
financial condition and results of operations.
The accounting and valuation methods applied to credit and equity derivatives and other financialtransactions that we enter into for hedging and credit risk mitigation purposes are not always consistent with theaccounting and valuation methods applied to the assets that are being hedged. Consequently, in some cases, due
to changes in the market or otherwise, losses related to such financial transactions during a given period may
adversely affect net income, while the corresponding increases in the value of the hedged assets do not have aneffect on net income for such period. As a result, our financial condition and results of operations could bematerially and adversely affected during the period.
Failure to maintain capital adequacy ratios above minimum required levels, as a result of thematerialization of risks or regulatory changes, could result in restrictions on our business activities.
We endeavor to maintain sufficient levels of capital adequacy ratios, which are calculated pursuant tostandards set forth by Japan’s Financial Services Agency and based on Japanese GAAP, taking into account ourplans for investments in risk-weighted assets, the efficiency of our capital structure and other factors. However,
our capital adequacy ratios could decline in the future, including as a result of the materialization of any of therisks enumerated in these “Risk Factors” and changes to the methods we use to calculate capital adequacy ratios.
Also, there are regulatory adjustments such as goodwill and other intangibles, deferred tax assets, investments inthe capital of banking, financial and insurance entities etc., that are deducted from our regulatory capital undercertain conditions. Our or our banking subsidiaries’ regulatory capital and capital adequacy ratios could decline
due to such regulations.
In addition, if the framework set by the Basel Committee on Banking Supervision, upon which the Financial
Services Agency’s rules concerning banks’ capital adequacy ratios are based, is changed or if the Financial
Services Agency otherwise changes its banking regulations, we might not be able to meet the minimum
12regulatory requirements for capital adequacy ratios. For example, in December 2010, the Basel Committee on
Banking Supervision issued its Basel III rules text, which presents the details of global regulatory standards onbank capital adequacy and liquidity. In March 2012, the Financial Services Agency published revisions to its
capital adequacy guidelines which generally reflect rules in the Basel III text and became effective as ofMarch 31, 2013. Furthermore, the Financial Stability Board named us as one of 29 global systemically importantbanks (“G-SIBs”) in November 2013. The group of G-SIBs will be updated annually and published by the
Financial Stability Board each November. If we are deemed a G-SIB in or after November 2014, we may besubject to additional capital requirements. See “Item 5. Operating and Financial Review and Prospects—Capital
Adequacy.”
If the capital adequacy ratios of us and our banking subsidiaries fall below specified levels, the Financial
Services Agency could require us to take corrective actions, including, depending on the level of deficiency,
submission of an improvement plan that would strengthen our capital base, a reduction of our total assets or asuspension of a portion of our business operations. In addition, some of our banking subsidiaries are subject tocapital adequacy regulations in foreign jurisdictions such as the United States, and our business could be
adversely affected if their capital adequacy ratios fall below specified levels.
Downgrades in our credit ratings could have negative effects on our funding costs and business operations.
Credit ratings are assigned to Mizuho Financial Group, our banking subsidiaries and a number of our othersubsidiaries by major domestic and international credit rating agencies. The credit ratings are based on
information furnished by us or obtained by the credit rating agencies from independent sources and are also
influenced by credit ratings of Japanese government bonds and general views regarding the Japanese financial
system as a whole. The credit ratings are subject to revision, suspension or withdrawal by the credit rating
agencies at any time. A downgrade in our credit ratings could result in, among other things, the following:•

increased funding costs and other difficulties in raising funds;•

the need to provide additional collateral in connection with financial market transactions; and•the termination or cancellation of existing agreements.

For example, the additional collateral requirement in connection with our derivative contracts, absent otherchanges, assuming a downgrade occurred on March 31, 2014, would have been approximately $23 million for a
one-notch downgrade and approximately $154 million for a two-notch downgrade. The foregoing figures do nottake into account the minority of derivative contracts for which additional collateral requirements are notspecifically prescribed and are thus subject to individual negotiations.
As a result, our business, financial condition and results of operations could be materially and adversely
affected.
Our business will be adversely affected if we encounter difficulties in raising funds.
We rely principally on deposits and bonds as our funding sources. In addition, we also raise funds in thefinancial markets. Our efforts to maintain stable funding, such as setting maximum limits on financial market
funding and monitoring our liquidity position to apply appropriate funding policies, may not be sufficient toprevent significant increases in our funding costs or cash flow problems if we encounter difficulties in attracting
deposits or otherwise raising funds. Such difficulties could result, among other things, from any of the following:•

adverse developments with respect to our financial condition and results of operations;•downgrading of our credit ratings or damage to our reputation; or•a reduction in the size and liquidity of the debt markets due for example to the decline in the domestic
and global economy, concerns regarding the financial system or turmoil in financial markets and otherfactors.
13

Our Medium-term Business Plan and other strategic initiatives and measures may not result in the
anticipated outcome.
We have been implementing strategic initiatives and measures in various areas. In February 2013, weannounced our new Medium-term Business Plan for the three fiscal years ending March 31, 2016, in which we
set forth various strategic initiatives and measures and also established a number of key target figures that we aim
to achieve by the end of the fiscal year ending March 31, 2016.
However, we may not be successful in implementing such initiatives and measures, or even if we aresuccessful in implementing them, the implementation of such initiatives and measures may not have theiranticipated effects. In addition, we may not be able to meet the key target figures announced in the Medium-term
Business Plan due to these or other factors, including, but not limited to, differences in the actual economic
environment compared to our assumptions underlying the Medium-term Business Plan, as well as the risks
enumerated in these “Risk Factors.”
We will be exposed to new or increased risks as we expand the range of our products and services.
We offer a broad range of financial services, including banking, trust, securities and other services. As theneeds of our customers become more sophisticated and broader in scope, and as the Japanese financial industry
continues to be deregulated, we have been entering into various new areas of business, including through various
business and equity alliances, which expose us to new risks. While we have developed and intend to maintainrisk management policies that we believe are appropriate to address such risks, if a risk materializes in a manneror to a degree outside of our expectations, our business, financial condition and results of operations could bematerially and adversely affected.
We are subject to various laws and regulations, and violations could result in penalties and otherregulatory actions.
Our business and employees in Japan are subject to various laws and regulations, including those applicableto financial institutions as well as general laws applicable to our business activities, and we are under the
regulatory oversight of the Financial Services Agency. Our businesses outside of Japan are also subject to thelaws and regulations of the jurisdictions in which they operate and are subject to oversight by the regulatory
authorities of those jurisdictions.
Our compliance and legal risk management structures are designed to prevent violations of such laws andregulations, but they may not be effective in preventing all future violations. On September 27, 2013, Mizuho
Bank received a business improvement order from the Financial Service Agency identifying serious problems in
our posture toward administrative control, internal control and legal/regulatory compliance relating totransactions with anti-social elements with respect to certain domestic captive loan transactions with a consumer
credit company. Furthermore, on December 26, 2013, based on the results of reports by Mizuho Financial Groupand Mizuho Bank in the course of related inspections by the Financial Service Agency, both Mizuho Financial
Group and Mizuho Bank received business improvement orders from the Financial Service Agency, including anorder for Mizuho Bank to suspend new credit-offering transactions of the captive loan operations in question. We
have taken this incident very seriously, and both Mizuho Financial Group and Mizuho Bank have been
implementing measures to strengthen efforts to eliminate any connections with anti-social elements and further
enhance our group governance in accordance with the business improvement plans submitted by Mizuho
Financial Group and Mizuho Bank to the Financial Service Agency on January 17, 2014. Future violations oflaws and regulations could result in regulatory action and harm our reputation, and our business, financial
condition and results of operations could be materially and adversely affected.
Employee errors and misconduct could subject us to losses and reputational harm.
Because we process a large number of transactions in a broad range of businesses, we are subject to the riskof various operational errors and misconduct, including those caused by employees. Our measures to reduce14employee errors, including establishment of operational procedures, regular reviews regarding compliance withthese procedures, employee training and automation of our operations, may not be effective in preventing all
employee errors and misconduct. Significant operational errors and misconduct in the future could result in
losses, regulatory actions or harm to our reputation. As a result, our business, financial condition and results ofoperations could be materially and adversely affected.
Problems relating to our information technology systems could significantly disrupt our business
operations.
We depend significantly on information technology systems with respect to almost all aspects of ourbusiness operations. Our information technology systems network, including those relating to bank accounting
and cash settlement systems, interconnects our branches and other offices, our customers and various clearing
and settlement systems located worldwide. Our efforts to sustain stable daily operations and development ofcontingency plans for unexpected events, including the implementation of backup and redundancy measures,
may not be effective in preventing significant disruptions to our information technology systems caused by,among other things, human error, accidents, hacking, computer viruses, cyber attacks, and development andrenewal of computer systems. In the event of any such disruption, our business, financial condition and results ofoperations could be materially and adversely affected due to disruptions in our business operations, liability tocustomers and others, regulatory actions or harm to our reputation.
Our reputation could be harmed and we may be subject to liabilities and regulatory actions if we areunable to protect personal and other confidential information.
We handle various confidential or non-public information, including those of our individual and corporate
customers, in the ordinary course of our business. The information management policies we maintain and enforce
to prevent information leaks and improper access to such information, including those designed to meet the strict
requirements of the Personal Information Protection Act of Japan, may not be effective in preventing all suchproblems. Leakage of important information in the future could result in liabilities and regulatory actions andmay also lead to significant harm to our reputation. As a result, our business, financial condition and results ofoperations could be materially and adversely affected.
Our business would be harmed if we are unable to attract and retain skilled employees.
Many of our employees possess skills and expertise that are important to maintain our competitiveness andto operate our business efficiently. We may not be successful in attracting and retaining sufficient skilledemployees through our hiring efforts and training programs aimed to maintain and enhance the skills andexpertise of our employees, in which event our competitiveness and efficiency could be significantly impaired.
As a result, our business, financial condition and results of operations could be materially and adversely affected.
Our failure to establish, maintain and apply adequate internal controls over financial reporting could
negatively impact investor confidence in the reliability of our financial statements.
As a New York Stock Exchange-listed company and an SEC registrant, we have developed disclosure
controls and procedures and internal control over financial reporting pursuant to the requirements of the
Sarbanes-Oxley Act of 2002 and rules and regulations of the SEC promulgated pursuant thereto. Our
management reports on, and our independent registered public accounting firm attests to, the effectiveness of ourinternal controls over financial reporting, as required, in our annual report on Form 20-F. In addition, ourmanagement is required to report on our internal control over financial reporting, and our independent registeredpublic accounting firm is required to provide its opinion concerning the report of our management, in accordancewith the Financial Instruments and Exchange Act of Japan. To the extent any issues are identified through theforegoing processes, there can be no assurance that we will be able to address them in a timely manner or at all.
Furthermore, even if our management concludes that our internal control over financial reporting are effective,15

our independent registered public accounting firm may still be unable to issue a report that concludes that ourinternal control over financial reporting are effective. In either case, we may lose investor confidence in thereliability of our financial statements.
We are subject to risk of litigation and other legal proceedings.
As a financial institution engaging in banking and other financial businesses in and outside of Japan, we aresubject to the risk of litigation for damages and other legal proceedings in the ordinary course of our business.
Adverse developments related to future legal proceedings could have a material adverse effect on our financial
condition and results of operations.
Our risk management policies and procedures may not adequately address unidentified or unanticipatedrisks.
We devote significant resources to strengthening our risk management policies and procedures. Despite this,and particularly in light of the rapid evolution of our operations, our policies and procedures designed to identify,
monitor and manage risks may not be fully effective. Some of our methods of managing risks are based upon ouruse of observed historical market behavior. As a result, these methods may not accurately predict future risk
exposures, which could be significantly greater than the historical measures indicate. If our risk management
policies and procedures do not function effectively, our financial condition and results of operations could bematerially and adversely affected.
Transactions with counterparties in Iran and other countries designated by the U.S. Department of Stateas state sponsors of terrorism may lead some potential customers and investors to avoid doing businesswith us or investing in our securities or have other adverse effects.
U.S. law generally prohibits U.S. persons from doing business with countries designated by the U.S.
Department of State as state sponsors of terrorism (the “Designated Countries”), which includes Iran, Cuba,
Sudan and Syria, and we maintain policies and procedures to comply with U.S. law. Our non-U.S. offices engage
in transactions relating to the Designated Countries on a limited basis and in compliance with applicable laws
and regulations, including trade financing with respect to our customers’ export or import transactions andmaintenance of correspondent banking accounts. In addition, we maintain a representative office in Iran. We do
not believe our operations relating to the Designated Countries are material to our business, financial condition or
results of operations. We maintain policies and procedures to ensure compliance with applicable Japanese andU.S. laws and regulations.
We are aware of government initiatives to strengthen laws and regulations, such as the U.S. Comprehensive
Iran Sanctions, Accountability, and Divestment Act of 2010 and the National Defense Authorization Act for
Fiscal Year 2012 and Fiscal Year 2013, applicable to entities with dealings in the Designated Countries. While
we maintain policies and procedures to ensure compliance with such initiatives, including Japanese laws andregulations, should the U.S. government regard our measures as inadequate, we may be subject to regulatory
action which could materially and adversely affect our business. In addition, we may become unable to retain or
acquire customers or investors in our securities, or our reputation may suffer, potentially having adverse effects
on our business or the price of our securities.
Our common stock may be subject to dilution as a result of conversion of our convertible preferred stock.
Holders of our eleventh series class XI preferred stock may convert their shares to common stock byrequesting us to acquire such shares and issue or transfer common stock to them at any time between July 1, 2008
and June 30, 2016, with mandatory conversion on July 1, 2016. Due to the dilution of our common stock that
occurs as a result of the increase in the number of outstanding shares of common stock upon such conversion, theprice of our common stock could decline.
16

We may be subject to risks related to dividend distributions.
As a holding company, we rely on dividend payments from our banking and other subsidiaries for almost allof our income. As a result of restrictions, such as those on distributable amounts under Japan’s Companies Act,or otherwise, our banking and other subsidiaries may decide not to pay dividends to us. In addition, we may
experience difficulty in making, or become unable to make, dividend payments to our shareholders and dividend
payments on the preferred securities issued by our overseas special purpose companies due to the deterioration of
our results of operations and financial condition and/or the restrictions under the Companies Act or due to thestrengthening of bank capital regulations. For more information on restrictions to dividend payments under theCompanies Act, see “Item 10.B. Additional Information—Memorandum and Articles of Association.”
We may be adversely affected if economic or market conditions in Japan or elsewhere deteriorate.
We conduct business operations in Japan as well as overseas, including in the United States, Europe andAsia. If general economic conditions in Japan or other regions were to deteriorate or if the financial markets
become subject to turmoil, we could experience weakness in our business, as well as deterioration in the qualityof our assets. Future deterioration in general economic conditions or financial market turmoil could materiallyand adversely affect our financial condition and results of operations.
Amendments and other changes to the laws and regulations that are applicable to us could have an
adverse effect on us.
We are subject to general laws, regulations and accounting rules applicable to our business activities in andoutside of Japan. We are also subject to various laws and regulations applicable to financial institutions such as
the Banking Act, including capital adequacy requirements, in and outside of Japan. If the laws and regulations
that are applicable to us are amended or otherwise changed, such as in a way that restricts us from engaging inbusiness activities that we currently conduct, our business, financial condition and results of operations could bematerially and adversely affected.
Intensification of competition in the market for financial services in Japan could have an adverse effect onus.
Ongoing deregulation in Japan has lowered the barriers to entry with respect to the provision of banking,trust, securities and other financial services. While such deregulation has the effect of increasing our own
business opportunities, it also allows other major financial groups, foreign financial institutions, non-bankfinance companies, government-affiliated entities such as Japan Post Bank and other financial services providers
to enter into new business areas or expand existing businesses, resulting in the intensification of competition in
the financial services industry. If we are unable to respond effectively to current or future competition, ourbusiness, financial condition and results of operations could be adversely affected. In addition, intensifying
competition and other factors could lead to reorganization within the financial services industry, and this could
have an adverse effect on our competitive position or otherwise adversely affect the price of our securities.
Our business could be significantly disrupted due to natural disasters, accidents or other causes.
Our headquarters, branch offices, information technology centers, computer network connections and otherfacilities are subject to the risk of damage from natural disasters such as earthquakes and typhoons as well asfrom acts of terrorism and other criminal acts. In addition, our business could be materially disrupted as a resultof an epidemic such as new or reemerging influenza infections. Our business, financial condition and results ofoperations could be adversely affected if our recovery efforts, including our implementation of contingency plansthat we have developed such as establishing back-up offices, are not effective in preventing significant
disruptions to our business operations caused by natural disasters and criminal acts. Additionally, massive natural
disasters such as the March 2011 Great East Japan Earthquake may have various adverse effects, including a17

deterioration in economic conditions, declines in the business performance of many of our corporate customers
and declines in stock prices. As a result, our financial condition and results of operations could be materially andadversely affected due to an increase in the amount of problem loans and credit-related costs as well as anincrease in unrealized losses on, or losses from sales of, equity securities and financial products.
Negative rumors about us could have an adverse effect on us.
Our business depends on maintaining the trust of depositors and other customers and market participants.
Negative rumors about us, spread through media coverage, communications between market participants,
Internet postings or otherwise, could lead to our customers and market participants believing factually incorrect
information about us and harm our reputation. In the event we are unable to dispel such rumors or otherwise
restore our reputation, our business, financial condition, results of operations and the price of our securities could
be materially and adversely affected.
Risks Related to Owning Our Shares
Rights of shareholders under Japanese law may be more limited than under the law of other jurisdictions.
Our articles of incorporation, our regulations of board of directors and Japan’s Companies Act govern our
corporate affairs. Legal principles relating to such matters as the validity of corporate procedures, directors’ andofficers’ fiduciary duties and shareholders’ rights may be different from or less clearly defined than those thatwould apply if we were incorporated in another jurisdiction. For example, under the Companies Act, only holders
of 3% or more of the total voting rights or total outstanding shares are entitled to examine our accounting books
and records. Shareholders’ rights under Japanese law may not be as extensive as shareholders’ rights under thelaw of jurisdictions within the United States or other countries. For more information on the rights ofshareholders under Japanese law, see “Item 10.B. Additional Information—Memorandum and Articles of
Association.”
It may not be possible for investors to effect service of process within the United States upon us or our
directors, executive officers or senior management, or to enforce against us or those persons judgments
obtained in U.S. courts predicated upon the civil liability provisions of the federal securities laws of theUnited States.
We are a joint stock corporation incorporated under the laws of Japan. Almost all of our directors, executive
officers and senior management reside outside the United States. Many of the assets of us and these persons arelocated in Japan and elsewhere outside the United States. It may not be possible, therefore, for U.S. investors toeffect service of process within the United States upon us or these persons or to enforce, against us or these
persons, judgments obtained in the U.S. courts predicated upon the civil liability provisions of the federal
securities laws of the United States. We believe that there is doubt as to the enforceability in Japan, in originalactions or in actions to enforce judgments of U.S. courts, of claims predicated solely upon the federal securities
laws of the United States.
Risks Related to Owning Our ADSs
As a holder of ADSs, you have fewer rights than a shareholder and you must act through the depositary to
exercise these rights.
The rights of our shareholders under Japanese law to take actions such as voting their shares, receiving
dividends and distributions, bringing derivative actions, examining our accounting books and records andexercising appraisal rights are available only to shareholders of record. Because the depositary, through its
custodian, is the record holder of the shares underlying the ADSs, a holder of ADSs may not be entitled to thesame rights as a shareholder. In your capacity as an ADS holder, you are not able to bring a derivative action,
examine our accounting books and records or exercise appraisal rights, except through the depositary.
18

Foreign exchange rate fluctuations may affect the U.S. dollar value of our ADSs and dividends payable toholders of our ADSs.
Market prices for our ADSs may fall if the value of the yen declines against the U.S. dollar. In addition, theU.S. dollar amount of cash dividends and other cash payments made to holders of our ADSs would be reduced if
the value of the yen declines against the U.S. dollar.

19

ITEM 4. INFORMATION ON THE COMPANY
4.A. History and Development of the Company
The Mizuho Group
The Mizuho group was created on September 29, 2000 through the establishment of Mizuho Holdings, Inc.
as a holding company of our three predecessor banks, The Dai-Ichi Kangyo Bank, The Fuji Bank and The
Industrial Bank of Japan. On October 1, 2000, the respective securities subsidiaries of the predecessor banks
merged to form Mizuho Securities Co., Ltd., and the respective trust bank subsidiaries merged on the same dateto form Mizuho Trust & Banking.
A further major step in the Mizuho group’s development occurred in April 2002 when the operations of ourthree predecessor banks were realigned through a corporate split and merger process under Japanese law into awholesale banking subsidiary, the former Mizuho Corporate Bank, and a banking subsidiary serving primarily
retail and small and medium-sized enterprise customers, the former Mizuho Bank. As an additional step for
realigning the group structure, Mizuho Financial Group was established on January 8, 2003 as a corporation
organized under the laws of Japan, and on March 12, 2003, it became the holding company for the Mizuho groupthrough a stock-for-stock exchange with Mizuho Holdings, which became an intermediate holding company
focused on management of the Mizuho group’s banking and securities businesses. The legal and commercialname of the company is Mizuho Financial Group, Inc.
In May 2003, we initiated a project to promote early corporate revitalization of customers in need ofrevitalization or restructuring and to separate the oversight of restructuring borrowers from the normal credit
origination function. In July 2003, our three principal banking subsidiaries, the former Mizuho Corporate Bank,
the former Mizuho Bank and Mizuho Trust & Banking each transferred loans, equity securities and other claims
outstanding relating to approximately 950 companies to new subsidiaries that they formed. In October 2005,
based on the significant reduction in the balance of impaired loans held by these new subsidiaries, which we callthe “revitalization subsidiaries,” we deemed the corporate revitalization project to be complete, and each of therevitalization subsidiaries was merged into its respective banking subsidiary parent.
In the fiscal year ended March 31, 2006, we realigned our entire business operations into a Global Corporate
Group, Global Retail Group and Global Asset and Wealth Management Group. In October 2005, in connection
with this realignment, we established Mizuho Private Wealth Management Co., Ltd., a private banking
subsidiary, and converted Mizuho Holdings on October 1, 2005 from an intermediate holding company into
Mizuho Financial Strategy Co., Ltd., an advisory company that provides advisory services to financial
institutions.
In May 2009, Mizuho Securities and Shinko Securities Co., Ltd. conducted their merger, with the aim of
improving our service-providing capabilities to our clients and to offer competitive cutting-edge financial
services on a global basis.
In September 2011, Mizuho Trust & Banking became a wholly-owned subsidiary of Mizuho Financial
Group, Mizuho Securities became an unlisted subsidiary of the former Mizuho Corporate Bank and Mizuho
Investors Securities became a wholly-owned subsidiary of the former Mizuho Bank, through their respective
stock-for- stock exchanges. The purpose of these stock-for-stock exchanges is to further enhance the “groupcollective capabilities” by integrating group-wide business operations and optimizing management resources
such as workforce and branch network.
In January 2013, Mizuho Securities and Mizuho Investors Securities merged in order to provide integrated
securities services as the full-line securities company of the Mizuho group. Mizuho Securities aims to further
strengthen collaboration among banking, trust banking and securities businesses of the group, expand thecompany’s customer base to enhance the domestic retail business, and rationalize and streamline management
infrastructure.
20

In April 2013, we turned Mizuho Securities, a consolidated subsidiary of Mizuho Financial Group, into a
directly-held subsidiary of Mizuho Financial Group, whereby we moved to a new group capital structure, placingbanking, trust banking, securities and other major group companies under the direct control of the holding
company.
In July 2013, the former Mizuho Bank and the former Mizuho Corporate Bank merged, and the former
Mizuho Corporate Bank, the surviving company, changed its trade name to Mizuho Bank, Ltd. The purpose of
the merger is to become able to provide directly and promptly diverse and functional financial services to boththe former Mizuho Bank and the former Mizuho Corporate Bank customers, utilizing the current “strengths” and“advantages” of the former Mizuho Bank and the former Mizuho Corporate Bank, and to continue to improvecustomer services by further enhancing group collaboration among the banking, trust and securities functions
and, at the same time, to realize further enhancement of the consolidation of group-wide business operations andoptimization of management resources, such as workforce and branch network, by strengthening group
governance and improving group management efficiency.
Other Information
Our registered address is 1-5-5 Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan, and our telephone
number is 81-3-5224-1111.
4.B. Business Overview
GeneralWe engage in banking, trust banking, securities and other businesses related to financial services.
We were established under a financial holding company structure in September 2000 ahead of other major
Japanese financial groups. Since an internal reorganization in April 2002, we have strived to enhance our
profitability by providing customers with quality financial services through mutual cooperation among ourlegally separate group companies based on customer segments and functions centered on the holding company.
During the fiscal year 2013, the initial fiscal year of the medium-term business plan for three fiscal years,“One MIZUHO New Frontier Plan—Stepping up to the Next Challenge—,” we pursued unified strategies acrossthe group-wide banking, trust banking and securities business areas and steadily promoted the establishment ofan advanced group management structure. Specifically, by taking advantage of the strengths and competitivenessof being a comprehensive financial group that holds its own bank, trust bank and securities company, weestablished a structure for each segment, redefined it in a more detailed manner based on customer needs andensured the provision of appropriate business solutions corresponding to the needs of each customer. In addition,
we have strengthened business promotion activities and have developed various financial services in a swift
manner through group-wide collaboration in response to various customer needs through cross-organizational
development of financial know-how and industry knowledge of the group companies. Moreover, in order toprovide further enhanced, comprehensive financial services, we have promoted the establishment of joint
branches that leverage banking, trust and securities functions.
On July 1, 2013, a merger between the former Mizuho Bank and the former Mizuho Corporate Bank cameinto effect with the former Mizuho Corporate Bank as the surviving entity, which was renamed Mizuho Bank
upon the merger. The two former banks had worked tirelessly since their inception in April 2002 to provide
services that comprehensively met the characteristics and needs of each of our customers, and Mizuho Bank
prepared a structure to respond to our customers’ varying needs accurately and expeditiously by making optimaluse of the strengths and advantages that the two banks had cultivated.
We will continue the steady implementation of the medium-term business plan for the fiscal year ending
March 31, 2015, the second fiscal year of the medium-term business plan. In addition, we will further accelerate
the unified strategies across the group-wide banking, trust banking and securities business areas in order to21

further advance One MIZUHO and will strengthen our group governance and continuously promote actions forthe establishment of a strong corporate culture in order to promote the development of the foundations that
support One MIZUHO.
Banking Business: Mizuho Bank
Mizuho Bank provides a wide range of financial products and services mainly in relation to deposits,
lending and exchange settlement to individuals, SMEs, large corporations, financial institutions, public sector
entities and foreign corporations, including foreign subsidiaries of Japanese corporations. We maintain one of thelargest branch and ATM networks in Japan and a broad range of Internet banking services. We also maintain acomprehensive office network which covers major cities worldwide.
Banking Business
Mizuho Bank provides a wide range of financial products and services to individual and corporate
customers:•

Deposits, including ordinary deposits, time deposits and foreign currency deposits;•

Lending, including loans for working capital or capital expenditure of corporate customers, initiatives
for strategic financial raising such as syndicated loans, housing loans and card loans for individual
customers;•

Domestic exchange settlement, including exchange for remittance, credit to current accounts and money
collection services;•

Foreign exchange transaction services, including various foreign exchange services relating tointernational transactions such as imports, exports and foreign remittance; and•Other financial products and services

Trust Banking Business: Mizuho Trust & Banking
Mizuho Trust & Banking is a trust bank that provides individual and corporate customers with products andservices utilizing trusts. We respond to our customers’ various needs by providing appropriate solutions
developed based on our specialized expertise as a trust bank. Through such measures, we aim to become the“trust bank that is most trusted by customers.” In addition, we actively strive to open new frontiers in the trust
business, including through the development of new products.
Trust Banking BusinessBusiness for Corporate Customers
For corporate customers, we provide trust-related solutions that cross over each of the product lines of theMizuho group by fully utilizing its trust functions as well as consulting functions with respect to the following
business areas:•real estate business, including real estate sales agent services and real estate securitizations;•structured product business, including securitization transactions that utilize trusts;•

asset management business relating to various assets, including pension plans;•

pension plan business, including acting as trustee, providing consulting services, actuarial services andadministration services;22•

asset administration business, including trustee services for investment trusts and management andadministration of investments in securities; and•equity strategy business, including acting as a stock transfer agent and providing advice on practicalissues related to stock.

Business for Individual Customers
For individual customers, we offer solutions unique to trust banks related to the following business areas. In
addition, for business owners, we provide services for their business as well as asset management services forboth their corporate and personal needs:•

consulting services regarding investment and management of customer assets;•businesses relating to the asset inheritance such as testamentary trusts;•

consulting services regarding apartment leasing business, providing apartment loans, etc.;•

deposits, investment trusts and other investment products that utilize trusts; and•real estate business such as brokerage of housing sales and land development.

OthersWe provide deposit and loan services to our corporate customers and engage in treasury business.
Securities Business: Mizuho Securities
Mizuho Securities, as the group’s full-line securities company and investment bank, collaborates closelywith Mizuho Bank, Mizuho Trust & Banking and other group companies and aims “to provide growth capitalthrough markets and contribute to the economic growth of Japan, Asia and the world through sound developmentof markets as a participant of financial and capital markets,” and “to become a company that supports its
customers to build up their assets and enhance their corporate value, and shares the joy with them.”
We provide one-stop financial services to customers by providing financial services at joint branches ofMizuho Securities and Mizuho Bank (called “Planet Booth”) as well as engaging in the financial products
brokerage business with Mizuho Bank and the trust agency business with Mizuho Trust & Banking.
Investment Banking BusinessWe provide comprehensive support for customers in establishing their management strategies and financing
by engaging in businesses related to equity underwriting, support for initial public offerings, investor relations
consulting and provision of solutions such as advisory services for financial and capital strategies in addition to
the domestic bond underwriting, structured finance businesses and financial advisory business including mergers
and acquisitions where we hold leading market positions in Japan. In order to respond to the funding needs of ouroverseas customers, we are focused on our bond underwriting operations and other operations in collaboration
with Mizuho Bank.
In addition, with an aim to provide advanced solutions in banking and securities businesses, we have also
introduced a double-hat structure with Mizuho Bank and meet our customers’ needs by unifying banking, trust
banking and securities functions of the Mizuho group.
Market and Product BusinessAs a market leader in the fixed income business mainly in the yen-denominated bond market, we provide
products and services that suit our customers’ investment strategies, engage in proactive market making and offer
high-quality information.
23

In the equities business, we appropriately meet the sophisticated needs of our customers by strengthening
our pan-Asia research platform and enhancing investor relations services that target domestic and overseas
investors as well as strengthening our sales and trading framework. Moreover, we enjoy a strong reputation forour research capabilities among institutional investors.
Other Businesses Related to Financial Services
We provide various other financial services through major group companies.
Trust & Custody Services Bank
Trust & Custody Services Bank, Ltd., as a trust bank specialized in asset administration, provides a wide
range of products, including trust services and various custody services, to promptly meet the diversifying needsof customers such as financial institutions and institutional investors.
Mizuho Asset Management & DIAM
Mizuho Asset Management Co., Ltd. and DIAM Co., Ltd. (an equity method affiliate of ours), provide
quality asset management products and services for our group companies and customers that reflect theirrespective strengths. Each company offers a variety of investment trust products that meet the increasingly
sophisticated and diverse needs of our customers.
Mizuho Research InstituteMizuho Research Institute Ltd. offers information and services mainly to corporations, financial institutions
and public sector entities to meet their increasingly diverse and sophisticated needs by integrating its research,funded research and membership services that provide various information related to, among others, managerial
and economic issues.
Mizuho Information & Research InstituteMizuho Information & Research Institute, Inc. mainly provides our corporate customers with the following
three services:•

system integration services;•

outsourcing services that support the operation of information technology systems of our customers; and•consulting services related to, among others, environmental issues.

We provide customers with a combination of the above services to meet their respective needs.
Mizuho Financial Strategy
Mizuho Financial Strategy engages in advisory services for financial institutions regarding their
management and revitalization of their borrowers.
Mizuho Private Wealth Management
Mizuho Private Wealth Management offers consulting services tailored to the needs of its ultra high net
worth customers. These services range from consulting on customers’ financial needs, such as wealthmanagement, arranging for business and assets succession and related services to advise customers on individual
matters, including managing the health of the customers themselves and family members and their children’s
education.
24

“One MIZUHO New Frontier Plan:– Stepping up to the Next Challenge—”
We commenced our new medium-term business plan for the three years from the fiscal year ended
March 31, 2014. We named this proactive business plan the “One MIZUHO New Frontier Plan—Stepping up to
the Next Challenge—,” and it aims to launch the new Mizuho toward the “new frontier” of the next generation offinance, in response to structural and regulatory changes in the economy and society both in Japan and overseas.
As part of this plan, we developed five basic policies reflecting Mizuho’s vision for our future, the necessary
elements for the new frontier of finance, and our future direction based on an analysis of our current situation,
and also, adding more detail to these five basic policies, we developed ten basic strategies in terms of businessstrategy and management foundations as follows:
Mizuho’s Vision
As well as establishing a new, common corporate identity (further details below) for the group as part of ouractions toward forming a new, common corporate culture as we push forward toward the new Mizuho as a
unified group, we developed the following vision for our future as part of our new corporate identity, and we set
the same vision for our medium-term business plan:
The most trusted financial services group with a global presence and a broad customer base, contributing to
the prosperity of the world, Asia and Japan.
•

The most trusted financial services group•

The best financial services provider•

The most cohesive financial services group

Five Basic Policies
Based on Mizuho’s vision, the necessary elements for the new frontier of finance, and our future direction
based on an analysis of Mizuho’s current situation, we developed the following five basic policies as part of themedium-term business plan:•

Further develop integrated strategies across the group for each customer segment to respond to thediverse needs of our customers.

•

Contribute to sustainable development of the world and Japan by proactively responding to change.

•

Mizuho Means Asia: accelerate globalizations.

•

Build strong financial and management foundations to support the essence of Mizuho.

•

Form strong corporate governance and culture in the spirit of One MIZUHO.

Ten Basic Strategies
Adding more detail to the five basic policies under the medium-term business plan, we also developed ten
basic strategies in terms of business strategy and management foundations as follows:Business Strategy•

Strengthen integrated financial services by unifying banking, trust banking and securities functions to
respond to finely delineated corporate and personal banking segments.

•

Perform consulting functions taking advantage of our industry and business knowledge andforward-looking perspective.

•

Support formation of personal financial assets in Japan and invigorate their investment.

•

Strengthen proactive risk-taking functions for growth industries and corporations.
25•Strengthen and expand Asia-related business in Japan and on a global basis.

•

Cultivate multi-level transactions by capturing the accelerating global capital and trade flows.

Business Management, Management Foundations, etc.
•

Strengthen stable financial foundations based on abundant liquidity and appropriate capital levels.

•

Establish the optimal management foundations (human resources and business infrastructure) to support
business strategy.

•

Further strengthen proactive governance and risk management.

•

Embed the new Mizuho corporate identity toward forming a common culture throughout the group andtake actions toward becoming the best financial services provider.

Advanced Group Management StructureWith an aim to establish our advanced group management structure, we turned Mizuho Securities, aconsolidated subsidiary of Mizuho Financial Group, into a directly-held subsidiary of Mizuho Financial Group in
April 2013 and moved to a new group capital structure that places banking, trust banking, securities and othermajor group companies under the direct control of Mizuho Financial Group. In July 2013, we consummated themerger of the former Mizuho Bank and the former Mizuho Corporate Bank.
In addition, from April 2013, we have been promoting business strategies across the group-wide banking,trust banking, securities and other business areas and moved to a new group operational structure that enables us
to determine strategies and initiatives and formulate business plans. Specifically, the President and Chief
Executive Officer of Mizuho Bank, the President of Mizuho Trust & Banking and Mizuho Securities became
standing members of the Executive Management Committee of Mizuho Financial Group. In addition, weestablished ten business units and head-office coordination divisions to determine strategies and initiatives acrossthe group-wide banking, trust banking and securities business areas.
Furthermore, we established five group strategy conferences concerning the strategies for retail (personal),
wholesale (corporate), international (overseas), asset management and markets, as forums to comprehensively
deliberate on important matters in terms of group business strategy among units.
For further information of the ten business units, see “Group Operations” below.
Enhancing Our Group GovernanceIn order to fulfill our social responsibilities as a member of the global financial community, we will makeefforts to further enhance our group governance and strengthen our crisis management capabilities, in addition to
our efforts to further facilitate the progress of our business model. In light of the further strengthening of thebusiness strategy planning and promotion function and of the group governance of the group, it was decided thatcertain measures, including appointment of officers who are responsible for multiple units and review of thestructure whereby concurrent positions are held by certain people among the group’s corporate planning andmanagement personnel, were implemented from April 2014.
We transformed ourselves into a “Company with Committees” upon the approval at the general meeting of
the shareholders in June 2014. The basic policy regarding the enhancement of corporate governance, throughmeasures such as the transformation into a “Company with Committees,” is as follows: to secure theeffectiveness of corporate governance by ensuring the separation of supervision and management and making
supervision of management such as the execution of duties by executive officers the primary focus of the Boardof Directors and to make it possible for management to make swift and flexible decisions and realize expeditious
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corporate management by the Board of Directors’ delegating decisions on business execution to executive
officers. In addition, the utilization of committees, etc., consisting mainly of outside directors, helps securetransparency and fairness in decision-making processes and the effective supervision of management. We also
actively adopt operations and practices that are recommended at a global level regarding corporate governancethrough such measures as the appointment of the Chairman of the Board of Directors, in principal, from among
our outside directors. As for the strengthening of our crisis management capabilities, through newly-establisheddesignated organizations, we will continue to establish systems that will respond appropriately to crises by
accurately detecting signs and indicators of crises in advance, in addition to our effort to strengthen the ability torespond to emergency situations or events of emergency. At the same time, we will continue to take measures toenhance risk governance by taking into consideration global trends relating to regulations.
Furthermore, we will continuously make efforts to establish a strong corporate culture that supports stronggroup governance.
Mizuho Corporate Identity“Mizuho’s Corporate Identity,” which consists of Corporate Philosophy, Vision and The Mizuho Values,
serves as the concept that forms the basis of all activities that we conduct.
Mizuho’s Corporate Identity:
1.

Corporate Philosophy: Mizuho’s fundamental approach to business activities, based on the raisond’etre of Mizuho

2.

Vision: Mizuho’s vision for the future, realized through the practice of “Corporate Philosophy”

3.

The Mizuho Values: The shared values and principles of Mizuho’s personnel, uniting all executives
and employees together to pursue “Vision”

Brand Strategy
Mizuho adopts a brand slogan, “One Mizuho: Building the future with you,” to indicate our commitment tobecome “The most trusted financial services group with a global presence and a broad customer base,contributing to the prosperity of the world, Asia and Japan.”
All Mizuho employees are committed to realizing the ideas embodied in our brand slogan, and together we
aim to help Mizuho achieve its vision for the future.
Group Operations
Group Operational Structure
We established ten business units to determine strategies and initiatives across the group-wide banking, trust
banking, securities and other business areas.
Personal Banking Unit
The Personal Banking Unit provides products and services to individuals, and it strives for us to become “afinancial group that continues to be chosen by customers” by improving its ability to provide services.
In the asset management business area, actions in response to the launch of NISA (Japanese Individual
Savings Account that provides individual customers with tax exemption for income related to certain investments
up to a maximum amount) in January 2014 are being undertaken mainly by Mizuho Bank and Mizuho Securities.
Mizuho Bank and Mizuho Securities have been expanding their product lineup such as the i-mizuho Index Series,
a group of 22 no-load funds that are offered through the internet and managed by BlackRock, Inc., one of thelargest asset management companies in the world.
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We have 165 of Mizuho Securities “Planet Booths,” which are located in the branches and offices ofMizuho Bank as of March 31, 2014, and we make proposals that respond to our customers’ needs relating toasset management.
We also handle trust products at Mizuho Bank and Mizuho Securities branches as sales agents for Mizuho
Trust & Banking and provide trust-oriented services such as testimonial trust and real estate related services by
setting up “Trust Lounges” in Mizuho Bank branches.
With respect to the loan business, we have expanded our lineup of housing loan and card loan products andoffer various products and services. Specifically, we launched in July 2013 the Mizuho Prime Age, a reverse
mortgage loan where customers may obtain loans based on the asset value of their homes and in February 2014 a
pre-packaged money and loan support product, “Mizuho My Wing,” that offers a loan function in combination
with software applications to manage household budgets.
In addition to expanding our staffed branches throughout Japan (Mizuho Bank: 461, Mizuho Trust &Banking: 53, Mizuho Securities: 273 as of March 31, 2014) and our ATM network (approximately 6,000
locations as of February 28, 2014, including ATMs shared with AEON Bank), we are enhancing our Internet
banking services and strengthening marketing through the use of call centers.
Retail Banking Unit
The Retail Banking Unit provides products and services mainly to business owners, land owners, leaseholders, and SMEs.
We aim to be a “Long-term Business Partner” of our customers in relation to both corporate and individual
matters by providing comprehensive consulting services of business and assets inheritance and asset management
for business owners, landowners and lease holders, and by providing overall banking services for SMEs.
In addition, we stably supply customers with ample funds while securing appropriate levels of interest rates
in accordance with their risks, through our overall lending operations for small-scale companies in Mizuho
Business Financial Center, a subsidiary that specializes in making loans.
Corporate Banking Unit (Large Corporations)
The Corporate Banking Unit (Large Corporations) engages in relationship management for large
corporations and their affiliates in Japan.
By integrating the group’s specialty functions, including banking, trust banking and securities, and based on
our solid relationship with our domestic customers and utilizing our global industry knowledge, we offer a fullrange of financial solutions on a global basis to meet our customers’ needs in fund-raising, management andfinancial strategies.
Mizuho Bank and Mizuho Securities introduced the double-hat structure in several offices in Japan. Mizuho
Bank and Mizuho Securities collaborate globally to implement our securities strategy on a global basis and toprovide our customers solutions based on their capital management, business strategy and financial strategy.
Mizuho Bank and Mizuho Trust & Banking together provide solutions in relation to real estate (regarding
which we have a leading track record in the industry in Japan), pension, securitization of assets, securities
management, stock transfer agent, consulting, etc., to our customers’ diversified needs for investment and asset
reduction.
Further, we are proactively providing risk money to develop next-generation industries and growthindustries.
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Corporate Banking Unit
The Corporate Banking Unit provides products and services mainly to relatively larger SMEs (quasi listedcompanies).
We implement our consulting functions through unifying banking, trust banking and securities functions.
We provide a range of solution businesses in accordance with the growth strategy of our corporate customers: weprovide solutions for stable fund-raising, mergers and acquisitions and initial public offerings for customers intheir start-up or growth stages, and management buy-out, business succession, entry into new business lines andbusiness restructuring for customers in mature or transition stages.
With an aim to provide financial services together with sophisticated advisory services that are appropriate
in light of the customers’ business strategies, we respond to customers’ needs through various solution businesses
such as offering syndicated loans targeted at SMEs, advisory services related to overseas expansions, mergers
and acquisitions-related services and business matching services. On top of this, we develop financial products
brokerage business and strengthen the initiatives to enhance the customer base for trustee business for defined
contribution pension plans and support for start-up companies in cooperation with Mizuho Capital Co., Ltd.
We actively respond to the funding needs of our customers by establishing a fund that facilitates loans forstrengthening foundations for growth that manages a total of approximately ¥1 trillion in order to support thebusiness growth of customers.
Financial Institutions & Public Sector Business Unit
The Financial Institutions & Public Sector Business Unit provides products and services mainly to financial
institutions and central and local governments.
For financial institution customers in Japan, we offer advisory services and solutions, such as advice on
financial strategy and risk management, support for overseas business, support for revitalization of regional
economies and proposals on various investment products, by concentrating our various financial expertise fromeach group company to meet the increasingly sophisticated and varied needs of customers.
As part of our approach to revitalize the community, we established the “Sixth Industry Fund for the
Agriculture, Forestry and Fishing Sector” to promote stable growth and development of the primary industry ofagriculture, forestry and fishery by adding value through the integration of its production, processing andlogistical operations and transform such industry into the so-called sixth industry, and we invest in entities thatengage in the transformation thereof.
For public sector entities, we provide comprehensive financial services that include funding support via thesubscription and underwriting of public bonds, cooperation between the public and private sectors, i.e., services
as a designated financial institution, PFI and PPP, and arrangement of syndicated loans.
Regarding our bond-related businesses, with our extensive experience and track record as a leading bank inthis area, we support our customers’ financing needs by underwriting bonds issued by public sector entities andworking as the commissioned bank or fiscal agent for bonds issued by corporations, financial institutions andpublic sector entities.
International Banking Unit
The International Banking Unit is responsible for business with non-Japanese companies and Japanesecompanies that conduct business overseas.
In this business area, we provide unified support both in Japan and overseas for our Japanese corporate
customers to expand their overseas operations. We do this by providing highly specialized services that use our29advanced financial technologies and expertise. Particularly in the Asia region, we support Japanese corporate
customers in connection with their entry into these markets by offering advisory and other services. We also
actively promote business with non-Japanese corporate customers in various countries through our global
network.
Further, we actively implement initiatives to meet the diverse needs of our overseas customers in productareas such as project finance and trade finance.
We are expanding our overseas office network to strengthen our overseas support framework for ourcustomers.
Mizuho Bank opened its Phnom Penh Representative Office in Cambodia in June 2013. Mizuho Bank
opened its Bangalore-Devanahalli Branch and Chennai Branch in India in April 2013 and November 2013,
respectively. There are four Mizuho Bank branches in India, in addition to branches in Mumbai and New Delhi.
We aim to strengthen our structure to provide a range of banking services near our customers operating in suchregions.
Mizuho Bank (China), Ltd., a wholly-owned subsidiary of Mizuho Bank, opened its Hefei Branch, Shanghai
Pilot Free Trade Zone Sub-Branch and Changshu Sub–branch in China in August 2013, March 2014 and May
2014, respectively.
Mizuho Bank expanded its base in growing regions in the world in addition to Asia and established Banco
Mizuho do Brasil S.A., its subsidiary, in July 2013. In addition, Mizuho Bank opened the Calgary Office inCanada in October 2013 and the Johannesburg Representative Office, its first African base, in South Africa in
December 2013, and received approval from the local authorities to open a representative office in Santiago,
Chile in June 2014.
We will continue to strengthen our overseas support framework through actions such as providing local
information and supplementing services by forming business alliances with government-affiliated organizations
and local financial institutions mainly in emerging nations where Japanese corporations are considering
expanding their businesses.
Investment Banking Unit
The Investment Banking Unit provides sophisticated financial solutions mainly in the business areas ofmergers and acquisitions, real estate, asset finance, project finance and corporate finance. We are responding to
the needs of our broad customer base such as multi-national companies and SMEs by unifying banking, trust
banking and securities functions, whereby, we aim to enhance customer satisfaction.
In the mergers and acquisitions business, with an aim to increase the corporate value of our customers, weoffer sophisticated mergers and acquisitions solutions mainly in relation to support for mergers and acquisitions
strategies, such as cross-border mergers and acquisitions, business succession and going private transactions.
In the real estate business, by taking full advantage of our knowledge and skills of real estate-related project
developed through the various deals we have arranged over the years, we offer solutions such as various
financing methods by use of their real estate and real estate-related investment strategies.
In the asset finance business, by arranging customers’ asset securitization, we satisfy their demands such as
diversification of fund-raising sources and improvement of financial indices through removing assets from theirbalance sheet.
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In the project finance business, we provide various financial products and services such as project financedeals that enable the procurement of long-term capital for natural resource development abroad, the building ofelectric power generation projects and the construction of public infrastructure, support for promoting the wider
use of renewable energy and arrangement of PFI/PPP deals for financing transportation and other types of public
infrastructure.
In the corporate finance business, we proactively provide a wide variety of fund-raising-related solutions inthe syndicated loan market, debt capital markets and equity capital markets.
We are further expanding our range of services through cooperation with our group companies, including
Mizuho Corporate Advisory Co., Ltd. and Mizuho Capital Partners Co., Ltd.
Transaction Banking Unit
The Transaction Banking Unit engages in businesses related to domestic exchange settlement, foreignexchange, cash management, trade finance, yen correspondence settlement and yen securities custody, global
custody, asset management and stock transfer agent services.
Mainly to corporate customers, we offer various financial services and products such as internet banking,cash management solutions, Renminbi-denominated services and trade finance on a global basis.
For financial institutions and institutional investors, we provide custody and yen correspondence settlement
services. In particular, we maintain a strong market position regarding our yen securities custody services for
non-Japan residents.
With respect to the trust banking business, we proactively engage in global custody services, asset
management and stock transfer agent services.
We meet our customers’ needs by unifying banking, trust banking and securities functions mainly in Asia.
Asset Management Unit
The Asset Management Unit provides products and services that correspond to the needs of a broadcustomer base ranging from individuals to institutional investors by unification of banking, trust banking andsecurities functions as well as the businesses of our asset management group companies through the synergy
effects arising from the integrated operation of the planning, development and sales of businesses relating toasset management.
In the pension-related business, we provide comprehensive pension proposals that include services andproducts related to defined contribution as well as defined benefit pension plans to meet the needs of customers
by collaborating with asset management group companies such as Mizuho Asset Management, DIAM andShinko Asset Management Co., Ltd. in promoting the business.
In the alternative investment business, we provide our customers with the most relevant products bycollaborating with our group companies, including Mizuho Alternative Investments, LLC in the United States,
Mizuho Global Alternative Investments, Ltd. in Tokyo, which selects and introduces hedge funds, etc., andEurekahedge Pte, LTD. in Singapore, which is our subsidiary providing hedge fund research and data services.
In addition, we develop global financial products by collaborating with BlackRock, Inc. and arrange andoffer products related to private equity and infrastructure funds by collaborating with Partner Group AG.
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Market Unit
The Market Unit engages in the business of sales and trading of financial products related to, among others,interest rates, foreign exchange, equity, commodities and credit, as well as principal investments in interest rates,
equities and credit.
We offer products and services to meet the diverse needs of our customers and support their global businessby integrating our banking, trust and securities functions and seamlessly promoting our market business.
We expanded our product lineup from basic areas such as interest rates, foreign exchange and equity tocommodity derivatives such as oil, metals and other commodities, and local currency transactions. Specifically,
with respect to the overseas business development of our customers, we offer hedged financing that is tailoredbased on market conditions. In addition, in the fields of Asian and emerging currencies, in response toincreasingly sophisticated needs of customers for more efficient hedges and management of market risk, we are
drawing on collaboration among specialist teams who are well versed in the regulations and markets in various
countries and our global network of offices to develop financial product schemes that take advantage of thecharacteristics of individual markets in Japan and overseas.
We continue to enhance our portfolio management and diversify our principal investments to make ourportfolio more sound and profitable.
Competition
We engage in banking, trust banking, securities and other businesses related to financial services and facestrong competition in all of those areas of businesses partly due to deregulation of the Japanese financial
industry.
Our major competitors in Japan include:•

Japan’s other major banking groups: Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial
Group.

•

Other banking institutions: These include city banks, trust banks, regional banks, shinkin banks (orcredit associations), credit cooperatives, agricultural cooperatives, foreign banks and retail-oriented
online banks.

•

Securities companies and investment banks: These include both domestic securities companies and theJapanese affiliates of global investment banks.

•

Government financial institutions: These include Japan Finance Corporation, Japan Post Bank,
Development Bank of Japan and Japan Bank for International Cooperation.

•

Non-bank finance companies: These include credit card issuers, installment shopping credit companies
and other non-bank finance companies.

•

Other financial services providers: We also compete with private equity funds and other types ofinvestors.

In global markets, we face competition with other commercial banks and other financial institutions,particularly major global banks and the leading local banks in those financial markets outside Japan in which we
conduct business.
Japanese Banking and Securities Industry
Private banking institutions in Japan are normally classified into two categories (the following numbers are
based on information published by the Financial Services Agency, available as of April 1, 2014): (i) ordinary32

banks, of which there were 125, not including foreign commercial banks with banking operations in Japan; and(ii) trust banks, of which there were 16, including Japanese subsidiaries of foreign financial institutions andsubsidiaries of Japanese financial institutions.
Ordinary banks consist mainly of city banks and regional banks. City banks, including Mizuho Bank, arebased in large cities, operate domestically on a nation-wide scale through networks of branch offices and havestrong links with large corporate customers in Japan. In light of deregulation and other competitive factors,
however, many of these banks have placed increasing emphasis on other markets, including retail banking, small
and medium-sized enterprise banking, international operations and investment banking. Regional banks are basedin one of the prefectures of Japan and are generally much smaller in terms of total assets than city banks. In
recent years, some regional banks have allied with each other and formed holding companies to operate inseveral prefectures. Customers of regional banks, other than local retail customers, include mostly regional
enterprises and local public utilities, although regional banks also lend to large corporations. In addition to thesetypes of banks, new retail-oriented banks have emerged in recent years, including Internet banks and banks
specializing in placing their ATMs in convenience stores and supermarkets without maintaining a branch
network.
Trust banks, including Mizuho Trust & Banking, are engaged in trust services in relation to, among others,money trust, pension trust and real estate trust services, in addition to banking business.
As of March 31, 2014, there were 55 foreign banks operating banking businesses in Japan. These banks are
subject to a statutory framework similar to the regulations applicable to Japanese domestic banks. Their principal
sources of funds come from their overseas head offices or other branches.
A number of government financial institutions, organized in order to supplement the activities of the privatebanking institutions, have been in the process of business and organizational restructuring in recent years. In
October 2008, some of the government financial institutions were consolidated to form Japan FinanceCorporation, which mainly provides financing for small and medium-sized enterprises and those engaged inagriculture, forestry and fishery, and also provides export financing for Japanese corporations. In October 2008,
Development Bank of Japan, which mainly engages in corporate financing, and Shoko Chukin Bank, whichmainly engages in financing for small and medium-sized enterprises, were transformed into joint stock
corporations. Japan Housing Finance Agency supports housing loans of private institutions through thesecuritization of such loans.
In April 2012, Japan Bank for International Cooperation, which provides policy-based finance with a
mission to contribute to the sound development of Japan and the international economy and society, was spun off
from Japan Finance Corporation and was established as a joint stock company wholly owned by the Japanese
government.
Another distinctive element of the Japanese banking system is the role of the postal savings system. Postal
savings deposits are gathered through the network of governmental post offices scattered throughout Japan, andtheir balance of deposits totaled over 200 trillion yen in the past. In recent years, the governmental postal
business has been in the process of organizational restructuring. In 2003, the governmental postal business wastransferred to Japan Post, a government-owned entity established in the same year, and in 2007, Japan Post wastransformed into a government-owned joint stock corporation holding four operating companies including Japan
Post Bank, which currently operates as an ordinary bank. Privatization of the banking and insurance subsidiaries,
which was originally planned to be completed by 2017, was suspended in December 2009. In April 2012, a law
was enacted under which Japan Post was retransformed into a joint stock corporation holding three operatingcompanies in October 2012, and the deadline of the privatization of banking and insurance subsidiaries wasabolished and replaced with a statement that the privatization is to be conducted in the near future.

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In the Japanese securities market, a large number of registered entities are engaged in securities businesses,
such as sales and underwriting of securities, investment advisory and investment management services. As
deregulation of the securities market progressed, several of the country’s banking groups have entered into thismarket through their subsidiaries. In addition, foreign financial institutions have been active in this market.
Supervision and Regulation
Japan
Pursuant to the Banking Act (Ginkou Hou) (Act No. 59 of 1981, as amended), the Prime Minister of Japan
has authority to supervise banks in Japan and delegates certain supervisory control over banks in Japan to theCommissioner of the Financial Services Agency. The Bank of Japan also has supervisory authority over banks inJapan, based primarily on its contractual agreements and transactions with the banks.
Financial Services Agency
Although the Prime Minister has supervisory authority over banks in Japan, except for matters prescribed bygovernment order, this authority is generally entrusted to the Commissioner of the Financial Services Agency.
Additionally, the position of Minister for Financial Services was established by the Cabinet to direct theCommissioner of the Financial Services Agency and to support the Prime Minister.
Under the Banking Act, the Prime Minister’s authority over banks and bank holding companies in Japan
extends to various areas, including granting and cancellation of licenses, ordering the suspension of business inwhole or in part and requiring submission of business reports or materials. Under the prompt corrective action
system, the Financial Services Agency, acting on behalf of the Prime Minister, may take corrective action in thecase of capital deterioration of banks, their subsidiaries and companies having special relationships prescribed by
the cabinet order. These actions include requiring a financial institution to formulate and implement reform
measures, requiring it to reduce assets or take other specific actions and issuing an order to suspend all or part ofits business operations.
Under the prompt warning system introduced in December 2002, the Financial Services Agency may takeprecautionary measures to maintain and promote the sound operations of financial institutions, even before thosefinancial institutions become subject to the prompt corrective action system. These measures require a financial
institution to reform profitability, credit risk management, stability and cash flow.
The Bank of JapanThe Bank of Japan is Japan’s central bank and serves as the principal instrument for the execution ofJapan’s monetary policy. The principal measures by which the Bank of Japan implements monetary policy are
the adjustment of its discount rate, its operations in the open market and the imposition of deposit reserve
requirements. Banks in Japan are allowed to obtain borrowings from, and rediscount bills with, the Bank ofJapan. Moreover, most banks in Japan maintain current accounts under agreements with the Bank of Japanpursuant to which the Bank of Japan is entitled to supervise, examine and audit the banks. The supervisory
functions of the Bank of Japan are intended to enable it to ensure smooth settlement of funds among banks andother financial institutions, thereby contributing to the maintenance of an orderly financial system, whereas thesupervisory practices of the Prime Minister or the Commissioner of the Financial Services Agency are intended
to maintain the sound operations of banks and promote the security of depositors.
Examination of Banks
The Banking Act authorizes the Prime Minister to inspect banks and bank holding companies in Japan at
any time. By evaluating banks’ systems of self-assessment, auditing their accounts and reviewing their34

compliance with laws and regulations, the Financial Services Agency monitors the financial soundness of banks,
including the status and performance of their control systems for business activities. The inspection of banks is
performed pursuant to a Financial Inspection Manual published by the Financial Services Agency. Currently, theFinancial Services Agency takes the “better regulation” approach in its financial regulation and supervision. Thisconsists of four pillars: optimal combination of rules-based and principles-based supervisory approaches; timely
recognition of priority issues and effective response; encouraging voluntary efforts by financial institutions andplacing greater emphasis on providing them with incentives; and improving the transparency and predictability of
regulatory actions, in pursuit of improvement of the quality of financial regulation and supervision. In addition toindividual financial institutions, the Financial Services Agency also supervises financial groups as financial
conglomerates based on its Guidelines for Financial Conglomerates Supervision that focus on management,
financial soundness and operational appropriateness of a financial conglomerate as a whole.
The Bank of Japan also conducts examinations of banks similar to those undertaken by the Financial
Services Agency. The examinations are normally conducted once every few years, and involve such matters as
examining asset quality, risk management and reliability of operations. Through these examinations, the Bank ofJapan seeks to identify problems at an early stage and give corrective guidance where necessary.
In addition, the Securities and Exchange Surveillance Commission examines banks in connection with theirfinancial instruments business activities in accordance with the Financial Instruments and Exchange Act of Japan(Kinyu Shouhin Torihiki Hou) (Act No. 25 of 1948, as amended).
Examination and Reporting Applicable to Shareholders
Under the Banking Act, a person who intends to hold 20% (in certain exceptional cases, 15%) or more of
the voting rights of a bank is required to obtain prior approval of the Commissioner of the Financial Services
Agency. In addition, the Financial Services Agency may request reports or submission of materials from, or
inspect, any principal shareholder who holds 20% (in certain exceptional cases, 15%) or more of the voting rights
of a bank, if necessary in order to secure the sound and appropriate operation of the business of such bank. Under
limited circumstances, the Financial Services Agency may order such principal shareholder to take suchmeasures as the Financial Services Agency deems necessary.
Furthermore, under the Banking Act, any person who becomes a holder of more than 5% of the voting rights
of a bank holding company or bank must report its ownership of voting rights to the director of the relevant local
finance bureau within five business days. In addition, a similar report must be made in respect of any subsequentchange of 1% or more in any previously reported holding or any change in material matters set forth in reports
previously filed, with some exceptions.
Deposit Insurance System
Under the Deposit Insurance Act (Yokin Hoken Hou) (Act No. 34 of 1971, as amended), depositors areprotected through the Deposit Insurance Corporation in cases where financial institutions fail to meet their
obligations. The Deposit Insurance Corporation is supervised by the Prime Minister and the Minister of Finance.
Subject to limited exceptions, the Prime Minister’s authority is entrusted to the Commissioner of the Financial
Services Agency.
The Deposit Insurance Corporation receives annual insurance premiums from insured banks. The effective
premium rate from April 2010, which is the weighted average of the rates for deposits that bear no interest, areredeemable upon demand and are used by depositors primarily for payment and settlement purposes, and forother deposits, is 0.084%. However, for the fiscal years ended March 31, 2013 and March 31, 2014, because
there were no insured bank failures, the effective premium rate of 0.07% was applied retroactively from the
beginning of such fiscal years, and the amount paid in excess of such rates was respectively reimbursed toinsured banks without interest. In addition, for the fiscal year ending March 31, 2015, while the effective
35

premium rate is 0.084%, if there are no insured bank failures, the effective premium rate of 0.07% will beapplied retroactively from the beginning of such fiscal year, and the amount paid in excess of such rate will bereimbursed to insured banks without interest.
The insurance money may be paid out in case of a suspension of deposits repayments, banking license
revocation, dissolution or bankruptcy of the bank. Pay outs are generally limited to a maximum of ¥10 million ofprincipal amount, together with any interest accrued with respect to each depositor. Only non-interest bearing
deposits, redeemable on demand and used by depositors primarily for payment and settlement functions areprotected in full.
Participation in the deposit insurance system is compulsory for city banks (including Mizuho Bank),
regional banks, trust banks (including Mizuho Trust & Banking), credit associations and co-operatives, laborbanks and other financial institutions.
Governmental Measures to Treat Troubled Institutions
Under the Deposit Insurance Act, a Financial Reorganization Administrator can be appointed by the Prime
Minister if the bank is unable to fully perform its obligations with its assets or may suspend or has suspended
repayment of deposits. The Financial Reorganization Administrator will take control of the assets of the bank,dispose of the assets and search for another institution willing to take over its business. Its business may also betransferred to a “bridge bank” established by the Deposit Insurance Corporation for the purpose of the temporary
maintenance and continuation of operations of these types of institutions, and the bridge bank will seek totransfer the bank’s assets to another financial institution or dissolve the bank. The financial aid provided by the
Deposit Insurance Corporation to assist another financial institution with succeeding the failed bank’s businessmay take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption ofdebts, subscription of preferred stock or subordinated bonds, lending of subordinated loan, or loss sharing.
Where the Prime Minister recognizes that the failure of a bank which falls into any of (i) through (iii) below
may cause an extremely grave problem in maintaining the financial order in Japan or the region where such bankis operating (“systemic risk”), without taking any of the measures described in (i) through (iii) below, the Prime
Minister may confirm (nintei) to take any of the following measures, after the deliberation at the Financial Crisis
Management Meeting: (i) if the bank does not fall into either of the banks described in (ii) or (iii), the Deposit
Insurance Corporation may subscribe for shares or subordinated bonds of, or lend subordinated loans to the bank,or subscribe for shares of the bank holding company of the bank, in order to enhance capital adequacy of thebank; (ii) if the bank may suspend or has suspended repayment of deposits or is unable to fully perform its
obligations with its assets, financial aid exceeding the pay-off cost may be available to such bank; and (iii) if thebank may suspend or has suspended repayment of deposits and is unable to fully perform its obligations with its
assets, and the systemic risk cannot be avoided by the measure mentioned in (ii) above, the Deposit Insurance
Corporation may acquire all of the bank’s shares. The expenses for implementation of the above measures will beborne by the bank industry, with an exception under which the Government of Japan may provide partial
subsidies for such expenses.
New orderly and effective resolution regimes for financial institutions have been discussed internationallyand “Key Attributes of Effective Resolution Regimes for Financial Institutions” was published by the Financial
Stability Board in November 2011 and endorsed by the G20 leaders at the Cannes summit held in November
2011. Reflecting this global trend, pursuant to certain amendments to the Deposit Insurance Act that were
promulgated in June 2013 and became effective on March 6, 2014, a new resolution regime was introduced inJapan.
Under the new resolution regime stipulated in the amendments to the Deposit Insurance Act andimplementing ordinances thereunder, which became effective on March 6, 2014, financial institutions, includingbanks, insurance companies and securities companies and their holding companies, are subject to the regime.
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Further, under the new resolution regime, among other things, where the Prime Minister recognizes that the
failure of a financial institution which falls into either of (a) or (b) below may cause significant disruption in thefinancial markets or other financial systems in Japan without taking any of the measures described in(a) (specified item 1 measures)(tokutei dai ichigo sochi) or the measures described in (b) (specified item 2
measures)(tokutei dai nigo sochi), the Prime Minister may confirm (specified confirmation)(tokutei nintei) totake any of the following measures, after the deliberation at the Financial Crisis Management Meeting; (a) if thefinancial institution does not fall into a financial institution which is unable to fully perform its obligations with
its assets, the Deposit Insurance Corporation shall supervise the operation of the business of and the managementand disposal of assets of that financial institution (tokubetsu kanshi), and may provide it with loans or guarantees
necessary to avoid the risk of significant disruption in the financial systems in Japan (shikin no kashitsuke tou),
or subscribe for shares or subordinated bonds of, or lend subordinated loans to the financial institutions (tokutei
kabushiki tou no hikiuke tou), in each case to be taken as necessary taking into consideration of the financial
conditions of the financial institution; and (b) if the financial institution is or is likely to be unable to fully
perform its obligations with its assets or has suspended or is likely to suspend repayment of its obligations, theDeposit Insurance Corporation shall supervise that financial institution (tokubetsu kanshi), and may provide
financial aid necessary to assist merger, business transfer, corporate split or other reorganization in respect tosuch failed financial institution (tokutei shikin enjo). The expenses for implementation of the measures under thisregime will be borne by the financial industry, with an exception under which the Government of Japan may
provide partial subsidies for such expenses. If a measure set out in (b) above is determined to be taken withrespect to a financial institution, the Prime Minister may order that the financial institution’s operation and assets
be under the control of the Deposit Insurance Corporation. The business or liabilities of the financial institution
subject to the supervision (tokubetsu kanshi) by the Deposit Insurance Corporation as set forth above may also betransferred to a “bridge bank” established by the Deposit Insurance Corporation for the purpose of the temporary
maintenance and continuation of operations of, or repayment of the liabilities of, such financial institutions, andthe bridge bank will seek to transfer the bank’s business or liabilities to another financial institution or dissolve
the bank. The financial aid provided by the Deposit Insurance Corporation to assist merger, business transfer,
corporate split or other reorganization in respect to the financial institution set out in (b) may take the form of amonetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption of debts, subscription ofpreferred stock or subordinated bonds, lending of subordinated loan, or loss sharing.
Recovery and Resolution Plan
In November 2013, the Financial Stability Board published the latest list of global systemically importantfinancial institutions (G-SIFIs). The list is annually updated by the Financial Stability Board each November, andthe list as of November 2013 includes us. A recovery and resolution plan must be put in place for each G-SIFI,and be regularly reviewed and updated. In Japan, under the Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc., as part of crisis management, financial institutions identified as
G-SIFIs must prepare and submit a recovery plan, which includes the triggers to implement the recovery plan andan analysis of recovery options, to the Financial Services Agency, and the Financial Services Agency must
prepare a resolution plan for each G-SIFI.
Capital Injection by the Government
The Strengthening Financial Functions Act (Kinyu Kinou no Kyouka no tame no Tokubetsu Sochi ni kansuru
Houritsu) (Act No. 128 of 2004) was enacted on June 18, 2004 in order to establish a scheme of public money
injection into financial institutions and thereby enhance the soundness of such financial institutions on or prior to
March 31, 2008 and revitalize economic activities in the regions where they do business. On December 17, 2008,
certain amendments to the Strengthening Financial Functions Act took effect. These amendments relaxed certain
requirements for public money injection into Japanese banks and bank holding companies and other financial
institutions under the prior scheme and extended the period of application therefor, which had expired on
March 31, 2008, to March 31, 2012. These amendments aim to promote not only the soundness of such financial
institutions but also the extension of loans or other forms of credit to small and medium-sized enterprises in order37

to revitalize local economies. In response to the Great East Japan Earthquake, the law was amended in June 2011
to extend the period for application to March 31, 2017 and to include special exceptions for disaster-affectedfinancial institutions. None of the financial institutions within the Mizuho group are subject to such special
exceptions.
Bank Holding Companies
Under the Banking Act, a bank holding company is prohibited from carrying out businesses other thanadministrating the businesses of its subsidiaries and matters incidental to such businesses. Business activities for
subsidiaries of bank holding companies are limited to finance-related businesses and incidental businesses.
The Anti-Monopoly Act (Shiteki Dokusen no Kinshi oyobi Kousei Torihiki no Kakuho ni kansuru Houritsu)(Act No. 54 of 1947, as amended) prohibits a bank from holding more than 5% of another company’s voting
rights. This does not apply to a bank holding company, although the bank holding company is subject to generalshareholding restrictions under the Anti-Monopoly Act. The Banking Act does, however, prohibit a bank holding
company and its subsidiaries, on an aggregate basis, from holding more than 15% (in contrast to 5% in the caseof a bank and its subsidiaries) of the voting rights of certain types of companies not permitted to become
subsidiaries of bank holding companies.
Financial Instruments and Exchange Act
The Financial Instruments and Exchange Act (Kinyu Shouhin Torihiki Hou) requires Mizuho Financial
Group to file with the Director General of the Kanto Local Finance Bureau an annual securities report including
consolidated and non-consolidated financial statements in respect of each financial period, supplemented byquarterly and extraordinary reports.
Under the Financial Instruments and Exchange Act, registered Financial Instruments Business Operators(kinyu-shouhin torihiki gyousha), such as Mizuho Securities, as well as Registered Financial Institutions (touroku
kinyu kikan), such as Mizuho Bank and Mizuho Trust & Banking, are required to provide customers with detailed
disclosure regarding the financial products they offer and take other measures to protect investors, including adelivery of explanatory documents to such customers prior to and upon the conclusion of transactional
agreements.
Financial Instrument Business Operators and Registered Financial Institutions are subject to the supervisionof the Financial Services Agency pursuant to delegation by the Prime Minister of Japan. Some of the supervisory
authority of the Financial Services Agency is further delegated to the Securities and Exchange SurveillanceCommission, which exercises its supervisory power over such registered institutions by conducting site
inspections and requesting information necessary for such inspections. Non-compliance or interference with suchinspection may result in such registrants being subject to criminal penalty under the Financial Instruments andExchange Act.
Certain amendments to the Financial Instruments and Exchange Act and the Banking Act, which came into
effect on June 1, 2009, revamped the firewall regulations regarding the holding of concurrent offices or posts
among banks, securities firms and insurance firms and required banks, securities firms and insurance firms toestablish systems for managing conflicts of interest in order to protect customers’ interests and expanded thetypes of business services that banks and certain other financial firms can provide.
Sales of Financial Products
As a result of financial deregulation, more financial products, including highly structured and complicatedproducts, can now be more freely marketed to customers. In response to this, the Act of Sales of Financial
Products (Kinyu Shouhin no Hanbai tou ni kansuru Houritsu) (Act No. 101 of 2000, as amended), effective from38

April 2001, introduced measures to protect financial service customers by: requiring financial service providers
to provide customers with certain important information, including risks with respect to deficit of principal
associated with the financial products they offer and any restrictions on the period for exercising rights or theperiod for rescission, unless the customers fall within the ambit of professional investors or express their intent tothe contrary; and holding financial service providers liable for damages caused by a failure to follow thoserequirements. The amount of loss of principal is refutably presumed to be the amount of damages. Additionally,
the law requires financial service providers to follow certain regulations on solicitation measures as well as toendeavor to solicit customers in an appropriate manner and formulate and publicize a solicitation policy.
Self-Assessment and Reserves
The prompt corrective action system requires financial institutions to establish a self-assessment programthat complies with the Inspection Manual issued by the Financial Services Agency and related laws such as the
Financial Reconstruction Act (Kinyu Kinou no Saisei no tameno Kinkyu Sochi ni kansuru Houritsu) (Act No. 132
of 1998, as amended). Financial institutions are required to analyze their assets, giving due consideration toaccounting principles and other applicable rules and to classify their assets into four categories according to asset
recovery risk and risk of impairment based on the classification of the obligor (normal obligors, watch obligors,
intensive control obligors, substantially bankrupt obligors and bankrupt obligors) taking into account thelikelihood of repayment and the risk of impairment to the value of the assets. The results of self-assessment
should be reflected in the write-off and allowance according to the standard established by financial institutions
pursuant to the guidelines issued by the Japanese Institute of Certified Public Accountants and Inspection Manualissued by the Financial Services Agency. Based on the results of the self-assessment, financial institutions may
establish reserve amounts for their loan portfolio as may be considered adequate at the relevant balance sheet
date, even if all or part of such reserves may not be immediately tax deductible under Japanese tax law.
Based on the accounting standards for banks issued by the Japanese Bankers Association, a bank is required
to establish general reserves, specific reserves and reserves for probable losses on loans relating to restructuring
countries.
Credit Limits
The Banking Act restricts the aggregate amount of loans to any single customer or customer group for the
purposes of avoiding excessive concentration of credit risks and promoting the fair and extensive utilization ofbank credit. The limits applicable to a bank holding company and bank with respect to their aggregate lending to
any single customer or customer group are established by a cabinet order and by the Banking Act. The current
limits are, in case of a single customer, 25%, and in case of a customer group, 40% of the total qualifying capitalwith certain adjustments of the bank holding company or bank and its subsidiaries and affiliates. In April 2013,
the Financial Services Agency announced that the current credit limit restrictions will be tightened in line with
the international standards, by, among other things, reducing the credit limit applicable to a customer group from
40% to 25% of the total qualifying capital with certain adjustments of the bank holding company or bank and its
subsidiaries and affiliates. The amended credit limit restrictions are expected to be implemented by December
2014.
Restriction on Shareholdings
The Act Concerning Restriction on Shareholdings by Banks (Ginkou tou no Kabushiki tou no Hoyu no
Seigen tou ni kansuru Houritsu) (Act No. 131 of 2001, as amended) requires Japanese banks (including bankholding companies) and their subsidiaries to limit the aggregate market value (excluding unrealized gains, if any)of their holdings in equity securities to an amount equal to 100% of their Tier 1 capital in order to reduce
exposure to stock price fluctuations.

39

Share Purchase Program
The Banks’ Shareholdings Purchase Corporation was established in January 2002 in order to purchaseshares from banks and other financial institutions until September 30, 2006 pursuant to the Act Concerning
Restriction on Shareholdings by Banks. The Bank’s Shareholdings Purchase Corporation is allowed to resumepurchases of shares held by financial institutions as well as shares of financial institutions held by non-financial
institutions, up to a maximum amount of ¥20 trillion between March 12, 2009 and March 31, 2017. The Bank’s
Shareholdings Purchase Corporation purchased ¥984.2 billion of shares during the period from March 12, 2009
through June 30, 2014. The Bank’s Shareholdings Purchase Corporation will dispose of the purchased shares byMarch 31, 2027 by taking into consideration the effects on the stock market.
The Bank of Japan also purchased ¥387.8 billion of shares held by banks and other financial institutions
during the period from February 23, 2009 through April 30, 2010. The Bank of Japan generally will not sell thepurchased shares until March 31, 2016. The Bank of Japan will dispose of the purchased shares by September 30,
2021 by taking into consideration the effects on the stock market.
Capital Adequacy
The capital adequacy guidelines applicable to Japanese banks and bank holding companies withinternational operations supervised by the Financial Services Agency closely follow the risk-adjusted approach
proposed by the Bank for International Settlements and are intended to further strengthen the soundness andstability of Japanese banks. Under the risk-based capital framework of these guidelines, balance sheet assets andoff-balance-sheet exposures are assessed according to broad categories of relative risk, based primarily on thecredit risk of the counterparty, country transfer risk and the risk regarding the category of transactions.
In December 2010, the Basel Committee on Banking Supervision issued its Basel III rules text, which builds
on the International Convergence of Capital Measurement and Capital Standards document (“Basel II”), tostrengthen the regulation, supervision, and risk management of the banking sector. Basel III text presents thedetails of global regulatory standards on bank capital adequacy and liquidity. The rules text sets out higher andbetter-quality capital, better risk coverage, the introduction of a leverage ratio as a backstop to the risk-based
requirement, measures to promote the build-up of capital that can be drawn down in periods of stress, and theintroduction of two global liquidity standards. For further information of the leverage ratio and the two global
liquidity standards, see “Leverage Ratio” and “Liquidity” below, respectively.
The Financial Services Agency’s revisions to its capital adequacy guidelines became effective fromMarch 31, 2013, which generally reflect rules in the Basel III text that have been applied from January 1, 2013.
Under the revised guidelines, the minimum capital adequacy ratio is 8% on both a consolidated and nonconsolidated basis for banks with international operations, such as Mizuho Bank, or on a consolidated basis forbank holding companies with international operations, such as Mizuho Financial Group. Within the minimum
capital adequacy ratio, the Common Equity Tier 1 capital requirement is 4.0%, which will be raised in phases to
4.5% when fully effective in March 2015, and the Tier 1 capital requirement is 5.5%, which will be raised inphases to 6% when fully effective in March 2015.
Japanese banks with only domestic operations and bank holding companies the subsidiaries of which
operate only within Japan are subject to the revised capital adequacy guidelines that have been applied fromMarch 31, 2014, and those banks and bank holding companies are required to have a minimum Core Capital ratio
of 4%. However, those banks and bank holding companies that apply the internal rating based approach are
deemed to be banks and bank holding companies with international operations and are required to have aminimum Common Equity Tier 1 ratio of 4.5% on both a consolidated and non-consolidated basis.
Under the revised capital adequacy guidelines based on the Basel III rules that have been applied to banks
and bank holding companies each with international operations from March 31, 2013, there are regulatory40

adjustments such as goodwill and other intangibles, deferred tax assets, investments in the capital of banking,financial and insurance entities etc. shall be deducted under certain conditions for the purpose of calculating
capital adequacy ratios, and the requirements of regulatory adjustments were enhanced under the revised capital
adequacy guidelines. For example, under the capital adequacy guidelines prior to the revision thereto under the
Basel III rules, the maximum amount of net deferred tax assets under Japanese GAAP that major Japanese banks,
including bank holding companies, could record without diminishing the amount of Tier 1 capital for purposes ofcalculating capital adequacy ratio was 20% of Tier 1 capital. Under the revised capital adequacy guidelines basedon the Basel III rules, deferred tax assets that arise from temporary differences will be recognized as part ofCommon Equity Tier 1 capital, with recognition capped at 10% of Common Equity Tier 1 capital under certain
conditions, while other deferred tax assets, such as those relating to net loss carryforwards, will be deducted infull from Common Equity Tier 1 capital net of deferred tax liabilities. These regulatory adjustments based on the
Basel III rules began at 20% of the required deductions in the calculation of Common Equity Tier 1 capital in
March 2014 and will be increased by 20% increments per year through March 2018 when the regulatory
adjustments reach 100%.
The revised capital adequacy guidelines related to other requirements under the Basel III rules, such as thecapital conservation buffer, have not yet been published.
Under the capital adequacy guidelines, banks and bank holding companies each with international
operations are required to measure and apply capital charges with respect to their credit risks, market risks andoperational risks.
Under the guidelines, banks and bank holding companies have several choices for the methodologies tocalculate their capital requirements for credit risk, market risk and operational risk. Approval of the Financial
Services Agency is necessary to adopt advanced methodologies for calculation, and Mizuho Financial Groupstarted to apply the AIRB approach for the calculation of credit risk from the fiscal year ended March 31, 2009
and also apply the AMA for the calculation of operational risk from September 30, 2009.
For further information of the Capital Adequacy, see “Item 5. Operating and Financial Review andProspects—Capital Adequacy—Regulatory Capital Requirements.”
Leverage Ratio
The Leverage Ratio framework is critical and complementary to the risk-based capital framework that will
help ensure broad and adequate capture of both on- and off-balance sheet sources of banks’ leverage. This
simple, non-risk-based measure will restrict the build-up of excessive leverage in the banking sector to avoid
destabilizing deleveraging processes that can damage the broader financial system and the economy.
Implementation of the leverage ratio requirements has begun with bank-level reporting to national supervisors of
the leverage ratio and its components, and will proceed with public disclosure will be required starting 1, January
2015. Any final adjustments to the definition and calibration of the leverage ratio will be made by 2017, with aview to migrate to a Pillar 1 (minimum capital requirements) treatment on 1, January 2018 based on appropriate
review and calibration.
Liquidity
Two minimum standards for funding liquidity will be introduced. The liquidity coverage ratio (“LCR”) isintended to promote resilience to potential liquidity disruptions over a thirty-day horizon and help ensure that
global banks have sufficient, unencumbered, high-quality liquid assets (“HQLA”) to offset the net cash outflows
it could encounter under an acute short-term stress scenario. The Group of Governors and Heads of Supervisionagreed on a revised LCR standard on January 6, 2013, and the Basel Committee on Banking Supervision issued
the text of the revised LCR standard on January 7, 2013. In accordance with the revised LCR standard, the stockof unencumbered HQLA is to comprise “Level 1” assets, which include cash, central bank reserves and certain41

marketable securities backed by sovereigns and central banks, and “Level 2” assets, which include certain
government securities, covered bonds, corporate debt securities and, to a limited extent,, lower-rated corporate
bonds, residential mortgage-backed securities and equities that meet certain conditions. “Level 2” assets will be
subject to certain haircuts based on types of securities and credit ratings. The revised LCR standard is subject tophase-in arrangements pursuant to which the LCR is to be introduced on January 1, 2015 with a minimum
requirement of 60%, rising in equal annual steps of 10 percentage points to reach 100% on January 1, 2019. The
Basel Committee on Banking Supervision issued final requirements for LCR-related disclosures on January 12,
2014. The LCR disclosure standard requires banks to disclose their LCR in common templates from the date of
publication of their first set of financial statements relating to balance sheet data dated on or after January 1,
2015. The net stable funding ratio (“NSFR”) requires a minimum amount of stable sources of funding at a bankrelative to the liquidity profiles of the assets, as well as the potential for contingent liquidity needs arising from
off-balance sheet commitments, over a one-year horizon. A minimum standard for NSFR, including any revision,
will be introduced by January 2018. The Basel Committee on Banking Supervision will put in place rigorous
reporting processes to monitor the ratios during the observation period that began in 2011. The Basel Committeeon Banking Supervision issued a consultative document of the proposed revisions to NSFR with respect to(i) reduction of cliff effects within the measurement of funding stability, (ii) improvement of its alignment with
LCR, and (iii) alternation of its calibration to focus greater attention on short-term, potentially volatile funding
sources, on January 12, 2014.
Protection of Personal Information
The Personal Information Protection Act (Kojin Jouhou no Hogo ni kansuru Houritsu) (Act No. 57 of 2003,
as amended) and related guidelines impose various requirements on businesses, including us, that use databases
containing personal information, such as appropriate custody of such information and restrictions on information
sharing with third parties. Non-compliance with the order issued by the Financial Services Agency to takenecessary measures to comply with the law will subject us to criminal and/or administrative sanctions.
Prevention of Money Laundering
Under the Act Preventing Transfer of Profits Generated from Crime (Hanzai ni yoru Syueki no Iten Boushi
ni kansuru Houritsu) (Act No. 22 of 2007, as amended), which addresses money laundering and terrorism
concerns, financial institutions and other entities such as credit card companies are required to perform customer
identification, submit suspicious transaction reports and maintain records of transactions. Certain amendments tothe law became effective in April 2013, which tightened, among other things, customer identification
requirements.
Act Concerning Protection of Depositors from Illegal Withdrawals Made by Forged or Stolen Cards
The Act Concerning Protection of Depositors from Illegal Withdrawals Made by Forged or Stolen Cards(Gizou Kaado tou oyobi Tounan Kaado tou wo Mochiite Okonawareru Fuseina Kikaishiki Yochokin
Haraimodoshi tou karano Yochokinsha no Hogo tou ni kansuru Houritsu) (Act No. 94 of 2005, as amended)
requires financial institutions to establish internal systems to prevent illegal withdrawals of deposits using forgedor stolen bank cards. The act also requires financial institutions, among other matters, to compensate depositors
for any amount illegally withdrawn using forged bankcards, unless the financial institution can verify that it acted
in good faith without negligence and that there was gross negligence on the part of the relevant account holder.
United States
As a result of our operations in the United States, we are subject to extensive U.S. federal and statesupervision and regulation. We engage in U.S. banking activities through Mizuho Bank’s New York, Chicago
and Los Angeles branches and Houston and Atlanta representative offices. We also own one bank in the UnitedStates, Mizuho Bank (USA), as well as controlling interests in several other subsidiaries, including Mizuho
Trust & Banking Co. (USA), which is engaged primarily in the trust and custody business, and Mizuho Securities
USA Inc., a U.S. broker dealer engaged in the securities business.
42

The USA PATRIOT Act of 2001 (the “PATRIOT Act”) contains measures to prevent, detect and prosecute
terrorism and international money laundering by imposing significant compliance and due diligence obligations,creating new crimes and penalties and expanding the extraterritorial jurisdiction of the United States. In recent
years, federal and state regulatory and law enforcement authorities have closely scrutinized the compliance byfinancial institutions with the Bank Secrecy Act and anti-money laundering rules.
Mizuho Financial Group and Mizuho Bank are financial holding companies (“FHCs”), and Mizuho Trust &Banking is a bank holding company, within the meaning of the U.S. Bank Holding Company Act of 1956, as
amended (the “BHCA”), and are subject to regulation and supervision thereunder by the Board of Governors of
the Federal Reserve System (the “Federal Reserve Board”). As a matter of law, these three companies are
required to act as a source of financial strength to Mizuho Bank (USA) and Mizuho Trust & Banking Co. (USA).
The BHCA generally prohibits us from acquiring, directly or indirectly, the ownership or control of more than
5% of any class of voting shares of any company engaged in the United States in activities other than banking or
activities that are financial in nature or incidental or complementary to financial activity. This general prohibitionis subject to certain exceptions, including an exception that permits us to acquire up to 100% of the votinginterests in any company engaged in nonfinancial activities that we do not routinely manage, generally for aperiod of up to 10 years, under our merchant banking authority. In addition, U.S. regulatory approval is generally
required for us to acquire more than 5% of any class of voting shares of a U.S. bank, savings association or bankholding company.
Mizuho Financial Group and the former Mizuho Corporate Bank, now Mizuho Bank, became FHCs in
December 2006. FHC status under the BHCA permits banking groups in the United States to engage incomprehensive investment banking businesses, such as the underwriting of and dealing in corporate bonds,
equities and other types of securities. FHC status enables our group to promote our investment banking businesson a broader basis in the United States.
As a financial holding company, we are also subject to additional regulatory requirements. For example, weand each of our U.S. insured depository institution subsidiaries with operations in the United States must be“well capitalized,” meaning a Tier 1 risk-based capital ratio of at least 6% and a total risk-based capital ratio of atleast 10%. We and each of our U.S. insured depository institution subsidiaries must also be “well managed,”
including that they maintain examination ratings that are at least satisfactory. Further, Mizuho Financial Groupand Mizuho Bank must also meet such capital standards as calculated under their home country standards (whichmust be comparable to the capital required for a U.S. bank) and must be well managed under standards
comparable to those required for a U.S. bank. Failure to comply with such requirements would require us toprepare a remediation plan, and we would not be able to undertake new business activities or acquisitions basedon our status as a financial holding company during any period of noncompliance without the prior approval of
the Federal Reserve Board, and divestiture or termination of certain business activities, or termination of our
U.S. branches and agencies, may be required as a consequence of failing to correct such conditions within
180 days.
U.S. branches, agencies and representative offices of foreign banks must be licensed, and are alsosupervised and regulated, by either a state banking authority or by the Office of the Comptroller of the Currency,
the federal bank regulatory agency that charters and regulates national banks and federal branches and agencies
of foreign banks. Each branch and representative office in the United States of Mizuho Bank is state-licensed.
Under U.S. federal banking laws, state-licensed branches and agencies of foreign banks may engage only inactivities that would be permissible for their federally-licensed counterparts, unless the Federal Reserve Board
determines that the additional activity is consistent with sound practices. U.S. federal banking laws also subject
state-licensed branches and agencies to the single-borrower lending limits that apply to federal branches andagencies, which generally are the same as the lending limits applicable to national banks, but are based on thecapital of the entire foreign bank.
The New York branch of Mizuho Bank is subject to supervision, examination and regulation by the New
York State Department of Financial Services as well as by the Federal Reserve Board. Except for a prohibition43

on such branch accepting retail deposits, a state-licensed branch generally has the same powers as astate-chartered bank in such state. New York State has an asset pledge requirement for branches equal to thegreater of 1% of average total liabilities for the previous month or $2 million, provided that an institution
designated as a “well-rated foreign banking corporation” is permitted to maintain a reduced asset pledge with acap of $100 million. The New York State Department of Financial Services may require higher amounts forsupervisory reasons. Each U.S. branch and representative office of Mizuho Bank is subject to regulation andexamination by the state banking authority of the state in which it is located.
The deposits of Mizuho Bank (USA) are insured by the Federal Deposit Insurance Corporation (“FDIC”),
and it is a state-chartered bank that is a member of the Federal Reserve System. As such, Mizuho Bank (USA) is
subject to regulation, supervision and examination by the Federal Reserve Board and the New York State
Department of Financial Services, as well as to relevant FDIC regulation.
The deposits of Mizuho Trust & Banking Co. (USA) are also FDIC-insured, and it is a state-chartered bankand trust company that is not a member of the Federal Reserve System. As such, Mizuho Trust & Banking Co.
(USA) is subject to regulation, supervision and examination by the FDIC and the New York State Department of
Financial Services.
In the United States, U.S.-registered broker-dealers are regulated by the U.S. Securities and Exchange
Commission (the “SEC”). As a U.S.-registered broker-dealer, Mizuho Securities USA is subject to regulations
that cover all aspects of the securities business, including sales methods, trade practices among broker-dealers,
use and safekeeping of customers’ funds and securities, capital structure, recordkeeping, the financing ofcustomers’ purchases and the conduct of directors, officers and employees.
In the United States, comprehensive financial regulatory reform legislation, titled the Dodd-Frank WallStreet Reform and Consumer Protection Act (the “Dodd Frank Act”), was signed into law by President Obamaon July 21, 2010. Among other things, the Dodd-Frank Act directs the federal banking regulators to establish
minimum leverage and risk-based capital requirements for insured depository institutions and depository
institution holding companies.
The Dodd-Frank Act provides regulators with tools to impose greater capital, leverage and liquidity
requirements and other prudential standards, particularly for financial institutions that pose significant systemicrisk and bank holding companies with greater than $50 billion in consolidated assets. In imposing suchheightened prudential standards on foreign banking organizations such as Mizuho Bank, the Federal Reserve
Board is directed to take into account the principle of national treatment and equality of competitive opportunity,
and the extent to which the foreign bank holding organization is subject to comparable home country standards.
On February 18, 2014, the Federal Reserve Board finalized regulations that will impose enhanced prudential
standards on certain large foreign banking organizations having a U.S. presence, such as Mizuho Bank. In
particular, large foreign banking organizations, including us, and their U.S. operations are subject to risk
management requirements, risk-based capital and leverage limits, capital stress testing requirements, liquidity
requirements and, in certain circumstances, asset management requirements. Additionally, the Federal Reserve
Board expects to finalize single counterparty credit limits and early remediation requirements for foreign banking
organizations at a later date. In addition, foreign banking organizations with consolidated assets of $50 billion ormore (excluding the assets of U.S. branches and agencies) will be required to create a separately capitalized
top-tier U.S. intermediate holding company (“IHC”) that would hold all of its U.S. subsidiaries and be subject tocertain capital, liquidity and other enhanced prudential standards on an IHC consolidated basis.
Under the so-called “Volcker Rule” provisions of the Dodd-Frank Act, insured depository institutions;insured depository institution holding companies; non-U.S. banks with branches in the United States, such as
Mizuho Bank; and affiliates and subsidiaries of such entities (collectively, “banking entities”) will be prohibitedfrom engaging in proprietary trading or from investing in or sponsoring private equity or hedge funds, subject to44

certain limited exceptions. Final regulations under the Volcker Rule were issued on December 10, 2013 andbanking entities are expected to bring their activities and investments into compliance by July 21, 2015, absent
an extension by the Federal Reserve Board.
The Dodd-Frank Act also provides an extensive framework for the regulation of over-the-counter (“OTC”)
derivatives, including mandatory clearing and transaction reporting of certain OTC derivatives. In addition,
entities that are swap dealers, security-based swap dealers, major swap participants, or major security-based swap
participants are required to register with the SEC or the U.S. Commodity Futures Trading Commission (the“CFTC”), or both, and comply with capital, margin, business conduct, recordkeeping, and other requirements
applicable to such entities. Although the CFTC has released final rules relating to various requirements of the
Dodd Frank Act, many of the provisions are subject to further final rulemaking, and thus the Dodd-Frank Act’s
ultimate impact remains unclear. New regulations could, among other things, restrict our ability to engage inderivatives transactions and increase the costs of using these instruments.
Under the so-called swap “push-out” provisions of the Dodd-Frank Act, the derivatives activities of U.S.
banks and U.S. branch offices of foreign banks will be restricted. On June 5, 2013, the Federal Reserve Board
approved an interim final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks
under this “push-out” provision. The interim final rule clarified that uninsured U.S. branches and agencies offoreign banks will be treated as insured depository institutions with respect to this “push-out” provision,
including eligibility for a transition period of up to 24 months to comply and for certain statutory exceptions. Theinterim final rule is effective as of June 5, 2013.
Mizuho Capital Markets Corporation and Mizuho Securities USA are registered with the CFTC as swap
dealers as a result of their swap activities with US persons. As a result, Mizuho Capital Markets Corporation andMizuho Securities USA are subject to certain increased entity-level and transaction-level regulation by the
CFTC, including with respect to registration requirements, additional recordkeeping and reporting obligations,risk management, clearing, trade execution, position limits, monitoring, capital and margin thresholds andinternal and external business conduct standards, and will become subject to additional regulations under the
Dodd-Frank Act as such regulations go into effect or following adoption of additional applicable regulations by
the CFTC and/or the SEC.
Disclosure Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act
Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (“Section 219”) added
Section 13(r) to the U.S. Securities Exchange Act of 1934, requiring each SEC reporting issuer to disclose in its
annual and, if applicable, quarterly reports whether it or any of its affiliates have knowingly engaged in specified
activities, transactions or dealings relating to Iran or with the Government of Iran or certain designated persons or
entities involved in terrorism or the proliferation of weapons of mass destruction during the period covered bysuch filing. Section 219 requires disclosure even of certain activities not prohibited by U.S. or other law and evenif such activities were conducted outside the United States by non-U.S. affiliates in compliance with local law.
Our affiliate Mizuho Bank (including when operated as the former Mizuho Corporate Bank prior to its
merger with the former Mizuho Bank) is our only affiliate to have engaged in activity that is relevant for thispurpose. Mizuho Bank maintains compliance policies and procedures to conform its operations to all applicableeconomic sanctions laws and regulations, and has dedicated substantial resources to this effort. In that context,
and only after confirming that such transactions did not involve prohibited or sanctionable activity under U.S. orother economic sanctions, non-U.S. branches of Mizuho Bank (including when operated as the former Mizuho
Corporate Bank) engaged in a limited number of activities reportable under Section 219 during the period
covered by this annual report, as described below. No U.S. branches of Mizuho Bank were involved in any ofthese activities.

45

Legacy Guarantees and Loan Obligations
During the period covered by this disclosure, Mizuho Bank was party to two legacy counter guarantees thatwere opened in connection with activities of its customers for the benefit of Iranian banks. When such guarantees
were entered into, the banks in question had not been designated under U.S. Executive Orders (“E.O.”) 13224
or 13382, although they were subsequently so designated. Mizuho Bank maintained these guarantees
post-designation only after confirming that such transactions did not involve prohibited or sanctionable activity
under U.S. or other economic sanctions and after obtaining licenses issued by Japan’s Ministry of Finance where
necessary. As contractual obligations, these guarantees cannot be exited by Mizuho Bank unilaterally until there
is full performance under the contract that is supported by the counter guarantees. In the fiscal year ended
March 31, 2014, Mizuho Bank received fees of approximately ¥0.6 million attributable to these guarantees andnet profits of less than that amount. Mizuho Bank continues to seek to terminate these counter guarantees.
Mizuho Bank has no intention to enter into any further similar guarantees.
In addition, Mizuho Bank acted as an administrative agent under a syndicated loan extended to an Iranianbank that was later designated under E.O. 13382. During the period covered by this disclosure, Mizuho Bank did
not act as the lender and also received no fees for acting as administrative agent. The loan expired in April 2013
upon repayment of the debt and its transfer to the lender in accordance with applicable laws and regulations.
Mizuho Bank does not intend to enter into any further similar loans.
Activities through Correspondent Banking Accounts
In the fiscal year ended March 31, 2014, Mizuho Bank conducted a limited number of fund transfers
through accounts it maintains for or at a limited number of Iranian banks designated under E.O. 13224 or 13382
and a limited number of other banks related to the Government of Iran. Mizuho Bank processed these transfers
only after confirming that such transactions did not involve prohibited or sanctionable activity under U.S. orother economic sanctions and obtaining licenses issued by Japan’s Ministry of Finance where necessary.
Estimated gross revenue to Mizuho Bank in the fiscal year ended March 31, 2014 attributable to this activity,
excluding the humanitarian transactions described below, was approximately ¥0.1 million, with a net profit ofless than that amount. Mizuho Bank will continue processing transfers through these accounts only under thelimited circumstances where the transfer would conform to Mizuho Bank’s compliance policies and procedures,
applicable international sanctions laws, and after obtaining a license issued by Japan’s Ministry of Finance where
necessary.
Humanitarian Transactions through Correspondent Banking Accounts
In addition, in accordance with the Joint Plan of Action (JPOA) agreed between EU3+3 (France, Germany,
the United Kingdom, China, Russia and the United States) and Iran in November 2013, Mizuho Bank has been
providing settlement services in connection with humanitarian trade to assist in meeting Iran’s domestic needs,
namely food, agricultural commodities, medicines and medical devices, since March 2014. The overall
framework for these settlement services is based on an agreement between the U.S. and Japanese authorities, andthe relevant U.S. regulator authorizes that the settlement services are in compliance with applicable U.S. laws
and regulations. The purchasers of the humanitarian goods were entities in or affiliated with Iran, including the
Iranian government. The sellers of the humanitarian goods were entities permitted by U.S. and Japanese
regulators. These transactions did not involve U.S. dollars nor clearing services of U.S. banks for the settlementof payments. These transactions were conducted through the use of special purpose yen accounts maintained with
Mizuho Bank outside of the United States by Iranian financial institutions that are controlled by the Iranian
government. Furthermore, in connection with these transactions, the Iranian financial institutions have increased
the amount of their non-U.S. dollar deposits at Mizuho Bank used for settlement purposes. Estimated grossrevenue to Mizuho Bank in the fiscal year ended March 31, 2014 attributable to this activity was approximately¥2 million, with a net profit of less than that amount.

46

Mizuho Bank intends to continue to provide these remittance and other settlement services in connection
with the exports of humanitarian goods to Iran to the extent that U.S. and Japanese regulators continue to makesuch requests.
Other Jurisdictions
Our operations elsewhere in the world are subject to regulation and control by local supervisory authorities,
including local central banks.
4.C. Organizational Structure
The following diagram shows our basic corporate structure as of March 31, 2014:
Mizuho Financial Group, Inc.

Mizuho Private Wealth Management Co.,Ltd.

Mizuho Financial Strategy Co., Ltd.

Mizuho Information & Research Institute,Inc.

Mizuho Research Institute Ltd.

DIAM Co., Ltd.(2)Mizuho Asset Management Co., Ltd.

Trust & Custody Services Bank, Ltd.

Mizuho Securities Co., Ltd.

Mizuho Trust & Banking Co., Ltd.

Mizuho Bank, Ltd.(1)Notes:(1) On July 1, 2013, a merger between the former Mizuho Bank and the former Mizuho Corporate Bank cameinto effect with the former Mizuho Corporate Bank as the surviving entity, which was renamed Mizuho
Bank upon the merger.
(2) DIAM, in which we have a 50.0% equity interest, is an equity-method affiliate of ours.

47

The following table sets forth information with respect to our principal consolidated subsidiaries as ofMarch 31, 2014

Name

Country oforganization

Domestic
Mizuho Bank, Ltd. . . . . . . . . . . . . . . . . . . .
Mizuho Trust & Banking Co., Ltd. . . . . . .
Mizuho Securities Co., Ltd. . . . . . . . . . . . .
Trust & Custody Services Bank, Ltd. . . . .
Mizuho Asset Management Co., Ltd. . . . .

Japan
Japan
Japan
Japan
Japan

Mizuho Research Institute Ltd. . . . . . . . . .

JapanMizuho Information & Research Institute,
Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

JapanMizuho Financial Strategy Co., Ltd. . . . . .
Mizuho Private Wealth Management Co.,
Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Credit Guarantee Co., Ltd. . . . . . .
Mizuho Factors, Limited . . . . . . . . . . . . . .
Shinko Asset Management Co., Ltd. . . . . .

Japan

Proportion ofownership
interest(%)

Proportion of
votinginterest(%)

Banking
Trust and banking
Securities
Trust and banking
Investment
management
Research andconsulting

100.0%
100.0%
95.8%
54.0%
98.7%

100.0%
100.0%
95.8%
54.0%
98.7%

98.6%

98.6%

Information
technology
Consulting

91.5%

91.5%

100.0%

100.0%

Main business

Japan
Japan
Japan
Japan

Consulting
Credit guarantee
Factoring
Investment
management

100.0%
100.0%
100.0%
94.3%

100.0%
100.0%
100.0%
94.8%

Japan

Real estate agency

86.7%

76.9%

Japan

Pension planrelated business

60.0%

60.0%

Mizuho-DL Financial Technology Co.,
Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Japan

60.0%

60.0%

UC Card Co., Ltd. . . . . . . . . . . . . . . . . . . .
Mizuho Capital Co., Ltd. . . . . . . . . . . . . . .

Japan
Japan

Application andSophistication of
Financial
Technology
Credit card
Venture capital

51.0%
50.0%

51.0%
50.0%

Overseas
Mizuho International plc . . . . . . . . . . . . . .

U.K.

Mizuho Trust Realty Company
Limited . . . . . . . . . . . . . . . . . . . . . . . . .
Defined Contribution Plan Services Co.,
Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Mizuho Bank (China), Ltd. . . . . . . . . . . . .
Mizuho Securities Asia Limited . . . . . . . .
Mizuho Bank Nederland N.V. . . . . . . . . . .

China
China
Netherlands

Mizuho Securities USA Inc. . . . . . . . . . . .
Mizuho Trust & Banking (Luxembourg)
S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Bank (USA) . . . . . . . . . . . . . . . . .
Mizuho Bank (Switzerland) Ltd . . . . . . . .
Mizuho Trust & Banking Co. (USA) . . . .
Mizuho Capital Markets Corporation . . . .
PT. Bank Mizuho Indonesia . . . . . . . . . . .

U.S.A.
Luxembourg
U.S.A.
Switzerland
U.S.A.
U.S.A.
Indonesia
48

Securities andbanking
Banking
Securities
Banking andsecurities
Securities

100.0%

100.0%

100.0%
100.0%
100.0%

100.0%
100.0%
100.0%

100.0%

100.0%

Trust and banking
Banking
Trust and banking
Trust and banking
Derivatives
Banking100.0%
100.0%
100.0%
100.0%
100.0%
99.0%

100.0%
100.0%
100.0%
100.0%
100.0%
99.0%

4.D. Property, Plant and Equipment
The following table shows the breakdown of our premises and equipment at cost as of March 31, 2013 and2014:
At March 31,
2013
2014
(in millions of yen)

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 268,948 ¥ 410,739
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
743,473
800,680
Equipment and furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
418,647435,655
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
90,306
92,052
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,87535,789Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
657,702725,287
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . .

2,202,951
1,110,962

2,500,202
1,143,608

Premises and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,091,989¥1,356,594

Our head office is located at 1-5-5 Otemachi, Chiyoda-ku, Tokyo, Japan. The headquarter buildings ofMizuho Financial Group and Mizuho Bank are each leased from a third party.
The total area of land related to our material office and other properties at March 31, 2014 wasapproximately 847,000 square meters for owned land and approximately 20,000 square meters for leased land.
Our owned land and buildings are primarily used by our branches. Most of the buildings and land owned by
us are free from material encumbrances.
ITEM 4A. UNRESOLVED STAFF COMMENTS
None.

49

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion and analysis should be read in conjunction with “Item 3.A. Key Information—
Selected Financial Data,” “Selected Statistical Data” and our consolidated financial statements, including thenotes thereto, included elsewhere in this annual report.
Table of Contents for Item 5.
Page

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Critical Accounting Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Segments Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Geographical Segment Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Adequacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Off-balance-sheet Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tabular Disclosure of Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recent Accounting Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reconciliation with Japanese GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50
62
65
77
86
89
99
100
108
112
112
113

Overview
The Mizuho GroupWe provide a broad range of financial services in domestic and overseas markets. The principal activities
and subsidiaries are the following:•Mizuho Bank provides a wide range of financial products and services mainly in relation to deposits,
lending and exchange settlement to individuals, SMEs, large corporations, financial institutions, public
sector entities and foreign corporations, including foreign subsidiaries of Japanese corporations;•Mizuho Trust & Banking provides products and services related to trust, real estate, securitization andstructured finance, pension and asset management and stock transfer agency; and•Mizuho Securities provides full-line securities services to individuals, corporations, financial institutions
and public sector entities.

We also provide products and services such as those related to trust and custody, asset management, privatebanking, research services, information technology-related services and advisory services for financial
institutions through various subsidiaries and affiliates.
In July 2013, the former Mizuho Bank and the former Mizuho Corporate Bank merged, and the former
Mizuho Corporate Bank, the surviving company, changed its trade name to Mizuho Bank. The purpose of themerger was to become able to provide directly and promptly diverse and functional financial services tocustomers of both banks, utilizing the current “strengths” and “advantages” and to continue to improve customer
services by further enhancing group collaboration among the banking, trust and securities functions. At the sametime, we aim to realize further enhancements of the consolidation of group-wide business operations andoptimization of management resources, such as work force and branch network, by strengthening group
governance and improving group management efficiency.
In June 2014, we transformed into a “Company with Committees,” as defined in the Companies Act, inorder to further enhance corporate governance through strengthening the supervisory function of the Board of
Directors over the execution of our business and improving the transparency of management processes, and inorder to enhance the flexibility of management by facilitating swifter decision making.
50

For a further discussion of our business and group organization, see “Item 4.B. Information on the
Company—Business Overview.”
Principal Sources of Income and Expenses
Net Interest Income
Net interest income arises principally from the lending and deposit-taking and securities investment
activities of our banking subsidiaries and is a function of:•

the amount of interest-earning assets and interest-bearing liabilities;•

the average interest rate spread (the difference between the average yield of interest earned on interestearning assets and the average rate of interest paid on interest-bearing liabilities); and•the general level of interest rates.

Principal items constituting interest-earning assets include loans, investments, trading account assets,
receivables under resale agreements and receivables under securities borrowing transactions. Principal items
constituting interest-bearing liabilities include deposits, trading account liabilities, short-term borrowings (suchas payables under repurchase agreements and payables under securities lending transactions) and long-term debt.
Provision (Credit) for Loan Losses
Provision (credit) for loan losses is charged against (or credited to) income to keep the allowance for loan
losses at a level that is appropriate to absorb probable losses inherent in the credit portfolio. For a description of
the approach and methodology used to establish the allowance for loan losses, see “—Financial Condition—
Allowance for loan losses.”Noninterest Income
Noninterest income consists mainly of fees and commissions, investment gains (losses)—net, trading
account gains (losses)—net and foreign exchange gains (losses)—net.
Fees and commissions include the following:•

fees and commissions from securities-related business, including brokerage fees and commissions
related to securities underwriting, fees and commissions related to investment trusts and individual
annuities and other securities-related activities;•

fees and commissions from deposits, debentures and lending business, which consist mostly of fees andcommissions related to our loan businesses, including fees related to the arrangement of syndicatedloans and other financing transactions such as arrangement fees related to management buy-outtransactions and fees related to deposits such as account transfer charges;•

fees and commissions from remittance business, including service charges for domestic andinternational funds transfers and collections;•trust fees, including trust fees earned primarily through fiduciary asset management and administration
services for corporate pension plans and investment funds; and•fees for other customer services, including fees related to our agency businesses, such as administration
fees related to Japan’s principal public lottery program, as well as guarantee fees and others.

Investment gains (losses)—net primarily include net gains and losses on sales of marketable securities, suchas equity and bond investments. In addition, impairment losses are recognized when management concludes thatdeclines in fair value of investments are other-than-temporary.
51

Trading account gains (losses)—net include gains and losses from transactions undertaken for trading
purposes, including both market making for customers and proprietary trading, or transactions through which weseek to capture gains arising from short-term changes in market value. Trading account gains (losses)—net also
include gains and losses related to changes in the fair value of derivatives and other financial instruments not
eligible for hedge accounting under U.S. GAAP that are utilized to offset mainly interest rate risk related to ourvarious assets and liabilities, as well as gains and losses related to changes in the fair value of foreign currencydenominated available-for-sale securities that are elected for fair value treatment under ASC 825. For further
information on the fair value option, see note 28 to our consolidated financial statements included elsewhere inthis annual report.
Foreign exchange gains (losses)—net mainly include translation gains and losses related to our foreign
currency-denominated assets and liabilities and gains and losses related to foreign exchange trading activities,
including market making for customers and proprietary trading.
Noninterest Expenses
Noninterest expenses primarily include salaries and employee benefits, general and administrative expenses,
occupancy expenses and fees and commission expenses.
Salaries and employee benefits include expenses incurred for salaries, bonuses and compensation to
directors and employees. They also include expenses related to pension and other employee retirement benefit
plans.
The principal items included in general and administrative expenses are amortization of software, tax
expenses such as consumption tax and property tax that are not income taxes and other expenses, including
premiums for deposit insurance.
The principal items included in occupancy expenses are expenses related to premises and equipment,
including depreciation, losses on disposal and lease expenses.
The principal items included in fees and commission expenses are fees and commission expenses for
remittance services, which mainly include commission expenses paid in connection with remittance transactions
and securities-related businesses, which mainly include transactions costs such as brokerage fees paid.
Operating Environment
We operate principally in Japan, and our performance has generally tracked the macro economy of Japan.
The recovery of the global economy remained weak during the fiscal year ended March 31, 2012 due todestabilization of the international financial and capital markets caused by the fiscal problems in Europe, butthere were visible signs of recovery as concerns over the Euro region’s debt problems eased to some degree inthe fiscal year ended March 31, 2013.
In the fiscal year ended March 31, 2014, the gradual recovery in the global economy continued, although
weakness in the recovery is seen in some regions, and is expected to continue particularly in the majorindustrialized countries. In the United States, signs of recovery in the economy have been seen in the form of
improved production and employment as a whole as well as steady consumption. It is expected that the gradual
recovery in the economy will continue, with a reduction in the downward pressure on the fiscal front, while thepossible effects of the scaling back of monetary easing policy requires continued monitoring. In Europe, theeconomy is on a recovery trend with a continuing steady recovery in the United Kingdom and improved businessconditions in the Euro area. Although it is expected that the economies of the region, led by exports andproduction, will continue to follow a track to recovery, the effect of the unstable situation in Ukraine as well as
the effects of debt problems and high unemployment rates require continued monitoring. In Asia, the economy isstrong as a whole due to favorable results in exports with the continuing recovery in the major industrialized52

countries. In China, although the economy continues to expand in a stable manner, the growth rate has declined
compared to recent historic levels, and a possible further slowdown may occur as the growth rate of investments
in manufacturing and real estate declined due mainly to adjustment pressures on capital assets, including those asa result of excess capacity. With respect to other emerging countries, there are concerns that the momentum foreconomic growth will be lost for the time being due to a tendency toward tight monetary policies against the
backdrop of concerns over currency depreciation and inflation in some regions, including outside Asia. In Japan,
the economy has been recovering gradually due to improved export profitability resulting from the weaker
Japanese yen and the positive effects of the expansionary fiscal and monetary policies adopted by the Japanese
government. Although some negative impact from the April 2014 consumption tax increase was observed, theJapanese economy is expected to pick up along with the gradual recovery of the global economy.
Key indicators of Japanese economic conditions in recent periods include the following:•

Japan’s real gross domestic product on a year-on-year basis increased by 0.3%, 0.7% and 2.3% in thefiscal years ended March 31, 2012, 2013 and 2014, respectively. Japan’s real gross domestic product ona quarterly basis, compared to the corresponding period of the previous year, increased consecutively
from the first quarter of calendar 2013 through the first quarter of calendar 2014.

•

The Japanese government stated in its monthly economic reports from January through March 2014 that“the Japanese economy is recovering at a moderate pace.” The reports from April through June 2014
stated that “the Japanese economy is on a moderate recovery trend, while some weak movements areseen lately due to a reaction after a last-minute rise in demand before a consumption tax increase,” andin July 2014, it stated that “the Japanese economy is on a moderate recovery trend and the reaction aftera last-minute rise in demand before the consumption tax increase is easing.”•

Japan’s core nationwide consumer price index was unchanged in the fiscal year ended March 31, 2012,
but decreased by 0.2% in the fiscal year ended March 31, 2013, and increased by 0.8% in the fiscal year
ended March 31, 2014 compared to the previous year.

•

The Japanese government stated in its monthly economic reports from November 2009 through April
2013 that the Japanese economy was in a mild deflationary phase, but the reports in May and June 2013
added that “signs of change can be seen in some areas recently.” Furthermore, the report in July 2013stated that “the deflation is easing,” followed by the reports from August through November 2013 whichstated that “the deflation is ending.” In December 2013 and January 2014, they stated that “prices holdfirm.” The reports in February and March 2014 strengthened the positive tone to state that “prices arerising moderately” and in April and May 2014, they stated that “consumer prices are rising moderately”
and in June and July 2014 added that “domestic corporate goods prices are rising moderately recently.”

53

The following chart shows the growth rates of Japan’s gross domestic product on a year-on-year basis
and Japan’s core nationwide consumer price indices from the first quarter of 2011 through the firstquarter of 2014:
(%)

(%)

GDP and Consumer Price Index

4

1.5

3

1.0

2
0.5
1
0.0
0
-0.5

-1
GDP growth rate (year-on-year basis) (left)
Core consumer price index growth rate (right)

-2

-1.0
1Q

•

2Q
3Q
Calendar 2011

4Q

1Q

2Q
3Q
Calendar 2012

4Q

1Q

2Q
3Q
Calendar 2013

4Q

1Q
Calendar2014

In January 2013, the Bank of Japan announced that it would set a “price stability target” at 2% in termsof the year-on-year rate of change in the consumer price index and introduced the “open-ended asset
purchasing method” under the asset purchase program, pursuant to which financial assets will bepurchased on a monthly basis without setting any termination date, for the purpose of taking additional
steps to provide monetary accommodation decisively. Furthermore, the Japanese government and the
Bank of Japan released a joint statement that they would strengthen their policy coordination and work
together in order to overcome deflation early and achieve sustainable economic growth with pricestability. In April 2013, the Bank of Japan announced that it would introduce the “quantitative andqualitative monetary easing” to enter a new phase of monetary easing and continue with the easing thataims to achieve the price stability target of 2% until that target is maintained in a stable manner. Under
the easing, the Bank of Japan announced that it would change the main operating target for money
market operations from the uncollateralized overnight call rate to the monetary base, which is to be
increased at an annual pace of about ¥60-70 trillion. In addition, the Bank of Japan announced that it
would expand its purchases of Japanese government bonds, of all maturities including 40-year bonds, tobe increased at an annual pace of about ¥50 trillion and terminate the asset purchase program which
would be absorbed into those purchases of the bonds. Furthermore, the Bank of Japan announced that it
would expand its purchases of ETFs and Japan real estate investment trusts so that their amounts
outstanding would be increased at an annual pace of ¥1 trillion and ¥30 billion, respectively.

54

The following charts show movements in long-term rates from January 2011 to June 2014, represented
by the yield on newly issued 10-year Japanese government bonds, and in short-term interest rates fromJanuary 2011 to June 2014, represented by the three-month Tokyo interbank offered rate, or TIBOR,
and the uncollateralized overnight call rate used in the interbank market:
Long-term Interest Rate

(%)
1.6

Newly issued 10-year Japanese government bonds

1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Jan '11

Apr '11Jul '11

Oct '11Jan '12

Apr '12Jul '12

Oct '12Jan '13

Apr '13Jul '13

Oct '13Jan '14

Apr '14

Short-term Interest Rates

(%)
0.70
0.65
0.60
0.55
0.50
0.45
0.40
0.35
0.30
0.25
0.20

Three-month TIBOR
0.15
0.10
0.05
Uncollateralized overnight call rate

0.00
-0.05
Jan '11

Apr '11Jul '11

Oct '11Jan '12

Apr '12Jul '12

Oct '12Jan '13

Apr '13Jul '13

Oct '13Jan '14

Apr '14•

According to the Bank of Japan, the aggregate monthly average balance of bank loans compared withthat of the previous year started to increase in October 2011 and has continued to increase, with the rateof increase gradually rising, through March 2014.

•

The CDS index called Markit iTraxx Japan, which is composed of 50 of the most liquid investment
grade CDSs for Japanese entities, fell to 83.6 basis points as of March 31, 2014 from 113.9 basis points
as of March 29, 2013, and further fell to 67.3 basis points as of June 30, 2014. For information on
55

financial transactions for hedging in relation to credit derivatives, see “Item 3.D. Key Information—
Risk Factors—Risks Relating to Our Business—Financial transactions entered into for hedging andother similar purposes could adversely affect our financial condition and results of operations.”•

According to Teikoku Databank, a Japanese research institution, there were approximately 11,400
corporate bankruptcies in the fiscal year ended March 31, 2012, involving approximately ¥3.9 trillion in
total liabilities, approximately 10,700 corporate bankruptcies in the fiscal year ended March 31, 2013,
involving approximately ¥2.9 trillion in total liabilities, and approximately 10,100 corporatebankruptcies in the fiscal year ended March 31, 2014, involving approximately ¥2.7 trillion in total
liabilities. The number of corporate bankruptcies decreased from a year earlier for the fifth consecutive
year, and the amount of total liabilities marked the lowest level in the past ten years.

•

According to the Tokyo Stock Exchange, or the TSE, the aggregate ordinary profits and net income of
all companies listed on the TSE with a March 31 fiscal year end, excluding financial institutions andcompanies newly listed during the relevant fiscal year, increased from ¥22.1 trillion and ¥8.9 trillion,
respectively, for the fiscal year ended March 31, 2012, to ¥23.5 trillion and ¥10.4 trillion, respectively,
for the fiscal year ended March 31, 2013, and increased to ¥33.2 trillion and ¥20.4 trillion, respectively,
for the fiscal year ended March 31, 2014.

•

According to the Bank of Japan, total financial assets of households increased from ¥1,520.7 trillion asof March 31, 2012 to ¥1,578.7 trillion as of March 31, 2013 and further increased to ¥1,630.4 trillion asof March 31, 2014. The following chart shows the amount of total financial assets of households andbreakdown based on type of financial asset as of the ends of the first quarter of 2011 through thefirst quarter of 2014:
Financial Assets of Households(Trillions of yen)
1800

1600

60

61

61

61

61

62

64

64

65

66

432

435

67

67

439

442

63

1400

1200

419

418

417

418

423

422

425

429

431

OthersInsurance and pension
reserves

1000

96

97

110

101

97

63

55

54

59

56

56

37

36

35

34

106

105

62

38

35

33

142

148

112

133

61

71

72

75

32

31

30

32

156

148

79

78

30

29

Shares and other equity
investments

800

Investment trust beneficiary
certificates600

Bonds (excluding investment
trusts)

400

815

828

822

837

833

843

838

854

847

860

856

874

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

865

200

0
Cal en d ar 2 0 1 1Cal en d ar 2 0 1 2Cal en d ar 2 0 1 3

56

1QCal en d ar 2 0 1 4

Currency and Deposits

•The Nikkei Stock Average, which is an average of the price of 225 stocks listed on the Tokyo Stock
Exchange, increased by 3.4% to ¥10,083.56 during the fiscal year ended March 31, 2012, followed by a
23.0% increase to ¥12,397.91 during the fiscal year ended March 31, 2013 and a 19.6% increase to¥14,827.83 during the fiscal year ended March 31, 2014. Thereafter, the Nikkei Stock Average further
increased to ¥15,162.10 as of June 30, 2014. The following chart shows the daily closing price of the
Nikkei Stock Average from January 2011 to June 2014:
Nikkei Stock Average(Yen)
18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
Jan '11•

Apr '11Jul '11

Oct '11Jan '12

Apr '12Jul '12

Oct '12Jan '13

Apr '13Jul '13

Oct '13Jan '14

Apr '14The Japanese yen to U.S. dollar spot exchange rate, according to the Bank of Japan, was ¥82.17 to$1.00 as of March 30, 2012, ¥94.04 to $1.00 as of March 29, 2013 and ¥102.98 to $1.00 as ofMarch 31, 2014. Thereafter, the yen strengthened to ¥101.39 to $1.00 as of June 30, 2014. The
following chart shows the yen/dollar spot rate of 5 p.m. Tokyo time published by the Bank of Japan
from January 2011 to June 2014:
Yen/Dollar Spot Rate

(Yen per dollar)
115
110
105
100
95
90
85
80
75
Jan '11 Apr '11 Jul '11 Oct '11 Jan '12 Apr '12 Jul '12 Oct '12 Jan '13 Apr '13 Jul '13 Oct '13 Jan '14 Apr '14•

According to the Ministry of Land, Infrastructure, Transport and Tourism of Japan, housing starts inJapan increased by 2.7%, 6.2% and 10.6% in the fiscal years ended March 31, 2012, 2013 and 2014,
respectively.
57

•

According to the Ministry of Land, Infrastructure, Transport and Tourism of Japan, the average
published land prices in Japan decreased by 2.3%, 1.6% and 0.6% during calendar years 2011, 2012
and 2013, respectively.

Capital Improvements
All yen figures in this subsection are truncated.
We have been implementing “disciplined capital management” by pursuing the optimal balance between“strengthening of stable capital base” and “steady returns to shareholders” as described below.
Strengthening of Stable Capital BaseIn the fiscal year ended March 31, 2014, we strengthened our capital base mainly as a result of earning¥688.4 billion of consolidated net income (under Japanese GAAP).
With respect to redemptions of previously issued securities, since April 2013, we have made redemptions ofvarious securities that are eligible Tier1/Tier2 capital instruments subject to phase-out arrangements under BaselIII upon the arrival of their respective initial optional redemption dates or their respective maturity dates. With
respect to Tier 1 capital, in July 2013, we acquired and subsequently cancelled all ¥36.9 billion of the thirteenth
series class XIII preferred stock. In June 2014, we redeemed $850 million and ¥139.5 billion of non-dilutive
Tier 1 preferred securities that were issued by our overseas special purpose companies in February 2009 and June
2009, respectively. With respect to Tier 2 capital, in February 2014, we redeemed ¥60.0 billion of dated
subordinated bonds that were issued by the former Mizuho Corporate Bank in February 2004, and in March
2014, we redeemed ¥15.2 billion of dated subordinated bonds that were issued by Mizuho Trust & Banking inMarch 2009. In April 2014, we redeemed $1.5 billion of dated subordinated bonds that were issued by ouroverseas special purpose company in March 2004. In June 2014, we redeemed ¥66.0 billion of dated
subordinated bonds that were issued by the former Mizuho Corporate Bank in June 2009.
With respect to new issuances, in March 2014, our overseas special purpose company issued $1.5 billion of
dated subordinated bonds with a write-down feature that are Basel III-eligible Tier 2 capital instruments. In July
2014, Mizuho Financial Group issued ¥100.0 billion of dated subordinated bonds with a write-down feature thatare Basel III-eligible Tier 2 capital instruments through public offerings to wholesale investors in Japan.
The new capital regulations under Basel III were implemented beginning on March 31, 2013. Our Common
Equity Tier 1 capital ratio under Basel III as of March 31, 2014 was 8.79%.
We aim to increase, by March 31, 2016, to a level that enables us to secure stably our Common Equity
Tier 1 capital ratio under Basel III of 8% or higher (on a fully-effective basis and including the outstandingbalance of the eleventh series class XI preferred stock, which was ¥312.6 billion as of March 31, 2014, that will
become mandatorily converted into common stock, and will thus be fully recognized as Common Equity Tier 1
capital by July 2016). We believe that we will be able to secure a sufficient Common Equity Tier 1 capital ratio
under Basel III as of March 31, 2019 when it becomes fully effective pursuant to its phase-in implementation.
The foregoing target is based on capital regulations that have been announced to date.
The foregoing statements include forward-looking statements and are subject to risks, uncertainties andassumptions. See “Forward-looking Statements” and “Item 3.D. Key Information—Risk Factors.”
Steady Returns to Shareholders
We paid cash dividends with respect to the fiscal year ended March 31, 2014 of ¥6.5 per share of common
stock (including interim dividend payments of ¥3), which was an increase of ¥0.5 per share from the previous
fiscal year.
58With the results of the fiscal year ended March 31, 2014, we believe that we have reached a certain capitallevel that can support our future growth strategy. In and after the fiscal year ending March 31, 2015, we
continuously consider the optimum balance between “strengthening of stable capital base” and “steady returns toshareholders.” We will comprehensively consider the business environment such as the Mizuho group’s businessresults, profit base, capital, and domestic and international regulation trends such as the Basel framework anddetermine cash dividend payments for each term.
Business Trends
Based on our current operating environment and management focus, we believe that the trends that are mostsignificant to our current and future results of operations include the following:
Loans and Deposits
Loan volume
Our total loan balance increased on a year-on-year basis in the fiscal year ended March 31, 2014 due mainly
to an increase in overseas loans. The increase in overseas loans was due mainly to increases in loans tocommercial and industrial, mainly in Asia, and a roughly equal effect of the translation impact of thedepreciation of the yen against other major currencies.
Margins between loans and deposits
In April 2013, the Bank of Japan announced that it would introduce the “quantitative and qualitative
monetary easing” to enter a new phase of monetary easing both in terms of quantity and quality, and theuncollateralized overnight call rate has been maintained at around 0 to 0.1% for several years. Reflecting adecline in short-term interest rate levels of the yen, the average yield on domestic loans decreased from 1.27% in
the fiscal year ended March 31, 2013 to 1.17% in the fiscal year ended March 31, 2014, and the average rate on
domestic interest-bearing deposits decreased from 0.08% to 0.07%.
Provision (credit) for loan losses
We recorded a credit for loan losses of ¥126 billion in the fiscal year ended March 31, 2014 compared to a
provision for loan losses of ¥140 billion in the fiscal year ended March 31, 2013. The change was due primarily
to a decrease in allowance for loan losses on domestic impaired loans as a result of upgrades and collections
related to some borrowers and allowance for loan losses on non-impaired loans reflecting upgrades in the obligor
categories of a broad range of borrowers mainly through our credit management activities, including business
revitalization support for borrowers, reflecting the continuing gradual recovery of the Japanese economy asdescribed in “—Overview—Operating Environment.” The amount of provision for loan losses in future fiscal
years will depend largely on trends in the credit quality of borrowers, which in turn will be affected by thedomestic and global economic environment and other factors, and changes in the value of collateral on our loans.
Fees and Commissions
For the fiscal year ended March 31, 2013, fees and commissions increased by ¥38 billion from the previous
fiscal year to ¥613 billion due mainly to an increase in fees and commissions from securities-related business,such as those related to equity securities transactions, investment trust and individual annuities as a result of arecovery of the stock markets, and an increase in fees and commissions from deposits, debentures and lending
business, such as those associated with domestic syndicated loans. For the fiscal year ended March 31, 2014, fees
and commissions increased by ¥63 billion from the previous fiscal year to ¥676 billion due mainly to an increasein fees and commissions from securities-related business, such as those related to investment trusts andindividual annuities as a result of the upturn in domestic stock markets, and an increase in fees for other customer
59

services. The amount of fees and commissions from securities-related business, a key component within fees andcommissions, is significantly affected by the performance of domestic stock markets, with strong market
performance generally having a positive effect on our fees and commissions and vice versa.
Debt and Equity Securities Portfolio
The amount of our funding through deposits significantly exceeds our total loans. As a result, we allocate asignificant portion of such excess among investments in debt securities, including Japanese government bonds
and investments in equity securities consisting mainly of common stock of Japanese listed company customers.
We also hold some credit and alternative investments for the purpose of diversifying our risks and expanding our
income sources.
Increases in long-term interest rates generally lead to a decline in the fair value of our portfolio of debt
securities, a vast majority of which consists of Japanese government bonds. As of March 31, 2014, we had a totalof ¥27,227 billion of available-for-sale debt securities within our investments, of which ¥22,056 billion was
Japanese government bonds. Changes in fair value of such available-for-sale debt securities are reflected inaccumulated other comprehensive income, net of tax in equity or, in the case of other-than-temporary
impairments, charged to income as an impairment loss. We had ¥36,275 billion and ¥27,227 billion of availablefor-sale debt securities as of March 31, 2013 and 2014, respectively, and net unrealized gains of ¥148 billion and¥60 billion were reflected in accumulated other comprehensive income, net of tax as of such dates, respectively.
We earned investment gains related to bonds of ¥91 billion in the fiscal year ended March 31, 2013 and¥60 billion in the fiscal year ended March 31, 2014. The decrease in investment gains related to bonds was due
mainly to a decrease in gains on sales of bonds, which reflected a rise in long-term interest rates of the yen andcertain other major currencies. As the Bank of Japan announced a “price stability target” of 2% in January 2013
and the changes in interest rates that could result may have a substantial impact on the value of our Japanese
government bond portfolio, in order to prepare for the risk of sudden and significant future interest rate rise, we
continue to manage our Japanese government bond portfolio conservatively by managing the average remaining
period of our portfolio and strengthening risk management including through the use of internal stress tests.
Because the size of our portfolio of marketable equity securities is substantial, we are subject to significant
equity market risk, as increases in unrealized gains and losses related to changes in the fair value of available-forsale marketable equity securities are reflected in accumulated other comprehensive income, net of tax in equity
or, in the case of other-than-temporary impairments to fair value, charged to income as an impairment loss. As of
March 31, 2012, 2013 and 2014, we recorded net unrealized gains related to marketable equity securities of¥960 billion, ¥1,440 billion and ¥1,754 billion, respectively, in accumulated other comprehensive income, net oftax in equity. For the fiscal years ended March 31, 2012, 2013 and 2014, impairment losses on available-for-salesecurities were ¥117 billion, ¥76 billion and ¥5 billion, respectively, of which impairment losses on marketable
equity securities were ¥110 billion, ¥72 billion and ¥4 billion, respectively. The decrease in impairment losses onmarketable equity securities in the fiscal year ended March 31, 2014 was due mainly to an upturn in domestic
stock market condition during such fiscal year. We plan to continue managing the size of our stock portfolio inlight of the equity market risk that it subjects us to.
Costs and Expenses
In the fiscal year ended March 31, 2014, general and administrative expenses increased by ¥47 billion fromthe previous fiscal year to ¥487 billion due mainly to an increase in IT-related costs as a result of thecommencement of depreciation relating to the common operational infrastructure of the new IT systems
platform, as well as an increase in overseas and advertising expenses. In the fiscal year ended March 31, 2014,
salaries and employee benefits increased by ¥15 billion from the previous fiscal year to ¥587 billion due mainly
to an increase in overseas personnel expenses, offset in part by a decrease in employee retirement benefit
expenses as a result of a decrease in the amortization of net actuarial loss, which primarily reflects past
recoveries of the fair value of plan assets and an increase in expected return on plan assets, which reflects various
60

aspects of long-term prospects for the economy, historical performance of investments of plan assets and themarket environment, including stock market conditions, at the beginning of the fiscal year.
OthersExposure to Certain European Countries (GIIPS)
In Europe, fiscal problems in certain countries including Greece, Ireland, Italy, Portugal and Spain, haveaffected the financial system and the real economy, and the uncertainty concerning European economic activity
continues to present a risk of a downturn in the world economy, though it has been calming down steadily. As of
March 31, 2014, our exposure to obligors in such countries was not significant. Specifically, our principal
banking subsidiaries had no holdings of sovereign bonds issued by these countries and had a total of
approximately $5.3billion in exposure to obligors in such countries. The breakdown by country and by type ofobligor was as follows:
As ofMarch 31, March 31,
Increase2013
2014(decrease)(in billions of US dollars)

Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Italy(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Spain(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Institutions(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 0.1
—
—
0.1
0.3
—
0.1
0.2
1.7
0.1
0.1
1.5
0.4
—
—
0.4
2.6
—
—
2.6
$ 5.1
0.1
0.2
4.8

$—
—
—
—
0.3
—
—
0.3
1.4
0.1
0.1
1.2
0.5
—
—
0.5
3.1
—
—
3.1
$ 5.3
0.1
0.1
5.1

$(0.1)
—
—
(0.1)
—
—
(0.1)
0.1
(0.3)
—
—
(0.3)
0.1
—
—
0.1
0.5
—
—
0.5
$ 0.2
—
(0.1)
0.3

Notes:(1) Figures in the above table are on a managerial accounting basis. The difference between the exposure basedon U.S. GAAP and that based on managerial accounting is attributable mainly to the netting of derivatives
exposure as described in footnote 2 below and does not have a material impact on total exposure amounts
set forth in the above table.
(2) Figures in the above table represent gross exposure except for derivatives exposure which takes into
consideration legally enforceable master netting agreements.
(3) The obligors in Italy and Spain to which we had exposure consist mainly of highly rated large corporations.
(4) Our exposure to financial institutions that are not state-owned was minimal.
61

Critical Accounting Estimates
Note 1 to our consolidated financial statements included elsewhere in this annual report contains a summaryof our significant accounting policies. These accounting policies are essential to understanding our financial
condition and results of operations. Certain of these accounting policies require management to make criticalaccounting estimates that involve complex and subjective judgments and the use of assumptions, some of which
may be for matters that are inherently uncertain and susceptible to change. Such critical accounting estimates are
based on information available to us as of the date of the financial statements and could change from period toperiod. Critical accounting estimates could also involve estimates for which management could have reasonably
used another estimate for the relevant accounting period. The use of different estimates could have a material
impact on our financial condition and results of operations. The following is a discussion of significant
accounting policies for which critical accounting estimates are used.
Allowance for Loan Losses and Allowance for Losses on Off-Balance-Sheet Instruments
The allowance for loan losses is based on management’s estimate of probable credit losses existing in ourlending portfolio, and the allowance for losses on off-balance-sheet instruments is based on management’s
estimate of probable losses related to off-balance-sheet arrangements such as guarantees and commitments toextend credit.
The allowance for loan losses is categorized and evaluated using the following methods:•

Allowance based on ASC 310. In accordance with ASC 310, “Receivables” (“ASC 310”), we measure
the value of specifically identified impaired loans based on the expected cash flows discounted at theloans’ initial effective interest rates, or as a practical expedient, using the observable market prices or
the fair value of collateral if the loan is collateral dependent, when it is probable that we will be unable
to collect all amounts due according to the contractual terms of the loan agreement. The collateral that
we obtain for loans consists primarily of real estate or listed securities. In obtaining the collateral, we
evaluate the value of the collateral and its legal enforceability, and we also conduct subsequent reevaluations at least once a year. As to collateral of loans that are collateral dependent, in the case of realestate, valuation is generally conducted by an appraising subsidiary that is independent from our loan
origination sections using generally accepted valuation techniques such as (i) the replacement cost
approach, (ii) the sales comparison approach or (iii) the income approach, although in the case of large
real estate collateral, we generally retain third-party appraisers to conduct the valuation. In the case of
securities, such securities are typically those of listed companies and are thus valued using observable
market prices. Management identifies impaired loans through the credit quality review process, in which
the debtor’s ability to service its debt is assessed. The difference between our evaluation of the value ofthe impaired loan and its principal amount is the amount of the impairment which is recorded in theallowance for loan losses. Estimation of future cash flows is based on a comprehensive analysis of theborrower’s ability to service the debt, any progress made on the borrower’s rehabilitation program andthe assumptions used therein.

•

Allowance based on ASC 450. In accordance with ASC 450, “Contingencies” (“ASC 450”), a formulabased allowance utilizing historical loss factors is applied to certain impaired loans which are
aggregated for purposes of measuring impairment, groups of small balance, homogeneous loans andother non-homogeneous loans which have not been identified as impaired. The determination of
expected losses is based on a statistical analysis of our historical default and loan loss data, as well as
data from third-party sources. The estimation of the formula allowance is back-tested on a periodic basis
by comparing the allowance with the actual results subsequent to the balance sheet date.

•

Adjustment of ASC 450 Allowance. In addition to the allowance for loan losses based on historical loss
factors, the historical loss rate is adjusted, where appropriate, to reflect current factors, such as general
economic and business conditions affecting key lending areas, credit quality trends, specific industry
conditions and recent loss experience in the segments of the loan portfolio. For loans which are not62deemed to be impaired under ASC 310 but to which special isolated risks apply, management assesses
each loan individually to determine appropriate allowance amounts in lieu of mechanically applying the
ASC 450 formula-based allowance.
We assess probable loss amounts for guarantees using the same categories and evaluation methods as loans.
We similarly assess probable loss amounts for loan commitments, taking into account the probability ofdrawdowns.
The determination of the allowance for loan losses and the allowance for losses on off-balance-sheet
instruments requires a great deal of judgment and the use of estimates as discussed above. Furthermore,
information available at the time of the determination is limited, and it is not possible to eliminate uncertainty.
Significant changes in any of the factors underlying our determination of the allowances could materially affectour financial condition and results of operations. For example, if our current judgment with respect to expected
future cash flows differs from actual results, including as a result of an unexpected adverse change in theeconomic environment in Japan or a sudden and unanticipated failure of a large borrower, or if the value ofcollateral declines, we may need to increase the allowances with additional charges to earnings.
Valuation of Financial Instruments
ASC 820, “Fair Value Measurement” (“ASC 820”) specifies a hierarchy of valuation techniques based onwhether the inputs to those valuation techniques are observable or unobservable. The standard describes thefollowing three levels of inputs that may be used to measure fair value:
Level 1

Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include
debt and equity securities and derivative contracts that are traded in an active exchange market.

Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data for substantially the full term of the assets or liabilities. Level 2 assets andliabilities include debt securities with quoted prices that are traded less frequently than exchangetraded instruments. If no quoted market prices are available, the fair values of debt securities andover-the-counter derivative contracts in this category are determined using a pricing model with
inputs that are observable in the market or can be derived principally from or corroborated byobservable market data.

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to thefair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose
values are determined using pricing models, discounted cash flow methodologies, or similar
techniques.

For assets and liabilities classified in Level 1 and 2 of the hierarchy, where inputs are principally based on
observable market data, there is less judgment or estimate in determining fair value, while the determination offair value of Level 3 assets and liabilities involves more significant management judgments and estimates. For
further information, including valuation methodologies and the use of management estimates and judgments inconnection therewith, see note 28 to the consolidated financial statements included elsewhere in this annual
report.
Valuation of Deferred Income Taxes
Deferred income taxes reflect the net tax effects of (1) temporary differences between the carrying amountsof assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and(2) operating loss and tax credit carryforwards. Pursuant to ASC 740, “Income Taxes” (“ASC 740”), a valuation
allowance is recognized for any portion of the deferred tax assets where it is considered more likely than not that63

it will not be realized, based on projected future income and future reversals of existing taxable temporary
differences. Because we have not opted to be subject to consolidated taxation, deferred tax assets and liabilities
are calculated separately for each member of our consolidated group.
The determination of a valuation allowance is an inherently uncertain process due to the use of projected
future taxable income and subjective assessments in the effectiveness of our available tax planning strategies
provided for under ASC 740. For example, variances in future projected operating performance or tax law
changes that impact our tax planning strategies could result in a change in the valuation allowance. If we are notable to realize all or part of our net deferred tax assets in the future, an adjustment to our valuation allowance
would be charged to income tax expense in the period when such determination is made, and this could
materially and adversely affect our financial condition and results of operations.
Pension and Other Employee Benefit Plans
Mizuho Financial Group, its principal banking subsidiaries and certain other subsidiaries sponsor severance
indemnities and pension plans, which provide defined benefits to retired employees. Periodic expense andaccrued liabilities are computed based on a number of actuarial assumptions, including mortality, withdrawals,
discount rates, expected long-term rates of return on plan assets and rates of increase in future compensationlevels.
Actual results that differ from the assumptions are accumulated and amortized over future periods andtherefore generally affect future pension expenses. While management believes that the assumptions used areappropriate, differences in actual experience or changes in assumptions may adversely affect pension expenses in
the future.
In estimating the discount rates, we use interest rates on high-quality fixed-income government andcorporate bonds that received a rating of AA (Aa) or higher from rating agencies. The durations of such bonds
closely match those of the benefit obligations. Assumed discount rates are reevaluated at each measurement date.
The expected rate of return for each asset category is based primarily on various aspects of the long-term
prospects for the economy that include historical performance and the market environment.
For further information on our pension and other employee benefits, see note 20 to the consolidated
financial statements included elsewhere in this annual report.

64

Operating Results
The following table shows certain information as to our income, expenses and net income for the fiscal
years ended March 31, 2012, 2013 and 2014:
Fiscal years ended March 31,
2012
2013
2014
(in billions of yen)Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,437 ¥1,423 ¥1,423
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
416
412
402
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,021
(23)

1,011
140

1,021
(126)

Net interest income after provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . .
Noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,044
1,090
1,471

871
1,439
1,425

1,147
1,083
1,504

Income before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

663
14

885
4

726
226

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Net income (loss) attributable to noncontrolling interests . . . . . . . . . . . . . .

649
(7)

881
6

500
2

Net income attributable to MHFG shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 656

¥ 875

¥ 498

Executive Summary
Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
Net interest income increased by ¥10 billion, or 1.0%, from the previous fiscal year to ¥1,021 billion in thefiscal year ended March 31, 2014 due to an increase in net foreign interest and dividend income of ¥60 billion,
offset in part by a decrease in net domestic interest and dividend income of ¥50 billion. The increase in net
foreign interest and dividend income was due mainly to an increase in interest income from foreign loans as aresult of an increase in the average balance, mainly in Asia, offset in part by an increase in interest expense on
foreign deposits as a result of an increase in the average balance and an increase in interest expense on foreign
trading account liabilities as a result of an increase in the average interest rate, reflecting a rise in long-term
interest rate levels of major currencies, as well as an increase in the average balance. The decrease in net
domestic interest and dividend income was due mainly to a decrease in interest income from domestic loans as aresult of a decrease in the average yield, reflecting a decline in short-term interest rate levels of yen and adecrease in interest and dividend income from domestic investments as a result of a decrease in the averagebalance as a result of sales and redemptions of Japanese government bonds. These effects were offset in part by adecrease in interest expense on domestic short-term borrowings as a result of a decrease in the average balance
and a decrease in the average rate, reflecting a decline in short-term interest rate levels of yen. We recorded acredit for loan losses of ¥126 billion in the fiscal year ended March 31, 2014 compared to a provision for loan
losses of ¥140 billion in the previous fiscal year. The change was due primarily to a decrease in allowance forloan losses on domestic impaired loans as a result of upgrades and collections related to some borrowers andallowance for loan losses on non-impaired loans reflecting upgrades in the obligor categories of a broad range ofborrowers mainly through our credit management activities, including business revitalization support forborrowers, reflecting the continuing gradual recovery of the Japanese economy.
Noninterest income decreased by ¥356 billion, or 24.7%, from the previous fiscal year to ¥1,083 billion in
the fiscal year ended March 31, 2014. The decrease was due mainly to trading account losses—net of ¥60 billion
compared to trading account gains—net of ¥534 billion in the previous fiscal year, offset in part by an increase ininvestment gains—net of ¥145 billion and an increase in fees and commission income of ¥63 billion. The change
in trading account gains (losses) —net was due mainly to an increase in losses related to changes in the fair valueof foreign currency-denominated available-for-sale securities for which the fair value option was elected and an65increase in losses related to changes in the fair value of derivative financial instruments used to hedge market
risks that are not eligible for hedge accounting under U.S. GAAP. The increase in investment gains—net was due
mainly to an increase in investment gains related to equity securities and other investment gains recorded in thefiscal year ended March 31, 2014 compared to other investment losses in the previous fiscal year, offset in partby a decrease in investment gains related to bonds. The increase in investment gains related to equity securities
was due mainly to a decrease in impairment losses on equity securities and an increase in gains on sales of equity
securities, both of which were results of an upturn in domestic stock market conditions. The decrease ininvestment gains related to bonds was due mainly to a decrease in gains on sales of bonds, which reflected a risein long-term interest rates of the yen and certain other major currencies. The increase in fees and commissions
was due mainly to an increase in fees and commissions from securities-related business, as a result of upturn indomestic stock markets, and an increase in fees for other customer services.
Noninterest expenses increased by ¥79 billion, or 5.5%, from the previous fiscal year to ¥1,504 billion in thefiscal year ended March 31, 2014. The increase was due mainly to an increase in general and administrative
expenses of ¥47 billion and an increase in salaries and employee benefits of ¥15 billion. The increase in generaland administrative expenses was due mainly to increases in IT-related costs and overseas and advertisingexpenses. The increase in salaries and employee benefits was due mainly to an increase in overseas personnel
expenses, offset in part by the effect of decreased employee retirement benefit expenses.
As a result of the foregoing, income before income tax expense decreased by ¥159 billion, or 18.0%, fromthe previous fiscal year to ¥726 billion in the fiscal year ended March 31, 2014. Income tax expense increased by¥222 billion from the previous fiscal year to ¥226 billion in the fiscal year ended March 31, 2014 due mainly todeferred tax expense of ¥90 billion compared to deferred tax benefit of ¥44 billion in the previous fiscal year andan increase in current income tax expense of ¥88 billion.
Net income decreased by ¥381 billion, or 43.2%, from the previous fiscal year to ¥500 billion in the fiscal
year ended March 31, 2014. Net income attributable to noncontrolling interests decreased by ¥4 billion, or 66.7%
from the previous fiscal year to ¥2 billion in the fiscal year ended March 31, 2014. As a result, net income
attributable to MHFG shareholders decreased by ¥377 billion, or 43.1%, from the previous fiscal year to ¥498
billion in the fiscal year ended March 31, 2014.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
Net interest income decreased by ¥10 billion, or 1.0%, from the previous fiscal year to ¥1,011 billion in thefiscal year ended March 31, 2013 due to a decrease in net domestic interest and dividend income of ¥44 billion,
offset in part by an increase in net foreign interest and dividend income of ¥34 billion. The decrease in net
domestic interest and dividend income was due mainly to a decrease in interest income from loans as a result of adecrease in the average yield, reflecting a decline in yen interest rate levels, as well as average balance, offset inpart by a decrease in interest expense on domestic deposits as a result of a decrease in the average rate, also
reflecting a decline in yen interest rate levels. The increase in net foreign interest and dividend income was due
mainly to an increase in interest income from foreign loans as a result of an increase in the average balance,
mainly in Asia and Oceania, offset in part by an increase in interest expense on foreign short-term borrowings as
a result of increases in the average balance and the average rate. We had a provision for loan losses of¥140 billion in the fiscal year ended March 31, 2013 compared to a credit for loan losses of ¥23 billion in theprevious fiscal year. The change was due primarily to an increase in allowance for loan losses as a result of anincrease in foreign impaired loans that required an allowance for loan losses and of increased estimated loss
reflecting changes in business environment surrounding some domestic obligors, offset in part by the effects ofthe continuing gradual recovery of the Japanese economy.
Noninterest income increased by ¥349 billion, or 32.0%, from the previous fiscal year to ¥1,439 billion in
the fiscal year ended March 31, 2013. The increase was due mainly to an increase in trading account gains—netof ¥201 billion, investment gains—net of ¥121 billion in the fiscal year ended March 31, 2013 compared toinvestment losses—net of ¥33 billion in the previous fiscal year, an increase in other noninterest income of66¥41 billion and an increase in fees and commissions of ¥38 billion, offset in part by a decrease in foreignexchange gains—net of ¥77 billion. The increase in trading account gains—net was due mainly to an increase in
trading account gains related to bonds reflecting a decline in yen interest rate levels, an increase in trading
account gains related to domestic equity securities reflecting an upturn in domestic market conditions and gains
recorded by consolidated VIEs as a result of an improvement in market conditions. The change in investment
gains (losses)—net was due mainly to investment gains related to equity securities recorded in the fiscal year
ended March 31, 2013 compared to investment losses related to equity securities in the previous fiscal year andan increase in investment gains related to bonds. The increase in fees and commissions was due mainly to anincrease in fees and commissions from securities-related business and an increase in fees and commissions from
deposits, debentures and lending business. The decrease in foreign exchange gains—net was due mainly tofluctuations in foreign exchange rates in the fiscal year ended March 31, 2013.
Noninterest expenses decreased by ¥46 billion, or 3.1%, from the previous fiscal year to ¥1,425 billion in
the fiscal year ended March 31, 2013. The decrease was due mainly to a decrease in general and administrative
expenses of ¥37 billion and a decrease in salaries and employee benefits of ¥15 billion. The decrease in generaland administrative expenses was due mainly to our continuous group-wide cost reduction efforts. The decrease insalaries and employee benefits was due mainly to the effect of decreased employee retirement benefit expenses.
As a result of the foregoing, income before income tax expense increased by ¥222 billion, or 33.5%, fromthe previous fiscal year to ¥885 billion in the fiscal year ended March 31, 2013. Income tax expense decreased by¥10 billion, or 71.4%, from the previous fiscal year to ¥4 billion in the fiscal year ended March 31, 2013 due
mainly to a decrease in current income tax expense.
Net income increased by ¥232 billion, or 35.7%, from the previous fiscal year to ¥881 billion in the fiscal
year ended March 31, 2013. Net income (loss) attributable to noncontrolling interests was an income of¥6 billion compared to a loss of ¥7 billion in the previous fiscal year. As a result, net income attributable to
MHFG shareholders increased by ¥219 billion, or 33.4%, from the previous fiscal year to ¥875 billion in thefiscal year ended March 31, 2013.

67

Net Interest Income
The following table shows the average balance of interest-earning assets and interest-bearing liabilities,
interest amounts and the average interest rates on such assets and liabilities for the fiscal years ended March 31,
2012, 2013 and 2014:
Fiscal years ended March 31,
2012
2013
2014
Average Interest Interest Average Interest Interest Average Interest Interest
balance amount ratebalance amount ratebalance amount rate
(in billions of yen, except percentages)

Domestic:
Interest-bearing deposits in otherbanks . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,822 ¥2Call loans and funds sold, andreceivables under resale agreements
and securities borrowing
transactions . . . . . . . . . . . . . . . . . . .
6,122
11
Trading account assets . . . . . . . . . . . . .
8,884
25
Investments . . . . . . . . . . . . . . . . . . . . .
39,529206
Loans . . . . . . . . . . . . . . . . . . . . . . . . . .
53,770707

0.13% ¥

3,096 ¥

0.17
0.28
0.52
1.31

6,676
9,019
38,97453,2223

0.10% ¥ 10,995 ¥

12

0.10%

11
15
191
674

0.17
0.17
0.49
1.27

4,048
6,937
34,481
54,230

8
24
155
634

0.21
0.35
0.45
1.17

Total interest-earning assets . . . . . .

110,127951

0.86

110,987894

0.81

110,691833

0.75

Deposits . . . . . . . . . . . . . . . . . . . . . . . .
Debentures . . . . . . . . . . . . . . . . . . . . . .
Short-term borrowings(1) . . . . . . . . . . .
Trading account liabilities . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . .

68,47486
25,591
3,833
8,172

64
—
43
14
175

0.09
0.45
0.17
0.38
2.13

70,281—
26,540
2,986
8,184

57
—
42
13
171

0.08
—
0.16
0.44
2.09

73,858—20,471
2,836
9,046

53
—
29
12
178

0.07
—
0.14
0.42
1.97

Total interest-bearing liabilities . . . .

106,156

296

0.28

107,991283

0.26

106,211272

0.26

Net . . . . . . . . . . . . . . . . . . . . . .

3,971

655

0.58

2,996

611

0.55

4,480

561

0.49

Foreign:Interest-bearing deposits in otherbanks . . . . . . . . . . . . . . . . . . . . . . . .
Call loans and funds sold, andreceivables under resale agreements
and securities borrowing
transactions . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . .

3,509

17

0.46

3,600

15

0.42

4,878

22

0.45

9,082
8,855
1,639
11,334

35
168
36
230

0.39
1.91
2.18
2.03

10,226
11,352
2,045
14,289

51
154
34
275

0.50
1.36
1.73
1.92

11,961
11,7801,910
17,420

34
137
48
349

0.28
1.16
2.52
2.00

Total interest-earning assets . . . . . .

34,419486

1.41

41,512529

1.28

47,949590

1.23

Deposits . . . . . . . . . . . . . . . . . . . . . . . .
Short-term borrowings(1) . . . . . . . . . . .
Trading account liabilities . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . .

9,878
13,248
892
650

67
34
14
5

0.68
0.25
1.58
0.84

11,70016,653
965
733

67
49
11
2

0.58
0.29
1.09
0.40

14,695
20,598
1,319
764

80
28
19
3

0.55
0.13
1.44
0.39

Total interest-bearing liabilities . . . .

24,668120

0.49

30,051129

0.43

37,376130

0.35

Net . . . . . . . . . . . . . . . . . . . . . .

9,751

366

0.92

11,461400

0.85

10,573460

0.88

Total:
Total interest-earning assets . . . . . . . .
Total interest-bearing liabilities . . . . . .

144,546
130,824

1,437
416

0.99
0.32

152,499
138,042

1,423
412

0.93
0.30

158,640
143,587

1,423
402

0.90
0.28

Net . . . . . . . . . . . . . . . . . . . . . . ¥ 13,722 ¥1,021

0.67¥ 14,457 ¥1,011

0.63¥ 15,053 ¥1,021

0.62

Note:
(1) Short-term borrowings consist of due to trust accounts, call money and funds purchased, payables under repurchaseagreements and securities lending transactions and other short-term borrowings.

68Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
Interest and dividend income was ¥1,423 billion in the fiscal year ended March 31, 2014, which was thesame level as the previous fiscal year. Domestic interest and dividend income accounted for ¥833 billion of thetotal amount, a decrease of ¥61 billion from the previous fiscal year, and foreign interest and dividend income
accounted for ¥590 billion, an increase of ¥61 billion from the previous fiscal year.
The decrease in domestic interest and dividend income was due mainly to decreases in interest income fromdomestic loans and in interest and dividend income from domestic investments. The decrease in interest income
from domestic loans was due mainly to a decrease in the average yield, reflecting a decline in short-term interest
rate levels of yen, offset in part by the effect of an increase in the average balance of domestic loans. The
decrease in interest and dividend income from domestic investments was due mainly to a decrease in the averagebalance of domestic investments as a result of sales and redemptions of Japanese government bonds. Changes in
the average yields on domestic interest-earning assets contributed to an overall decrease in interest and dividend
income of ¥52 billion, and changes in the average balances of domestic interest-earning assets contributed to an
overall decrease in interest and dividend income of ¥9 billion, resulting in the ¥61 billion decrease in domestic
interest and dividend income.
The increase in foreign interest and dividend income was due mainly to an increase in interest income fromforeign loans, offset in part by decreases in interest income from foreign call loans and funds sold, and receivable
under resale agreements and securities borrowing transactions and in interest income from foreign trading
account assets. The increase in interest income from foreign loans was due mainly to increase in the averagebalance, mainly in Asia. The decreases in interest income from call loans and funds sold, and receivable underresale agreements and securities borrowing transactions and in interest income from foreign trading accountassets were due mainly to the decrease in average yield, reflecting a decline in short-term interest rate levels ofmajor currencies. Changes in the average yields on foreign interest-earning assets contributed to an overall
decrease in interest and dividend income of ¥15 billion, and changes in the average balance of foreign interestearning assets contributed to an overall increase in interest and dividend income of ¥76 billion, resulting in the¥61 billion increase in foreign interest and dividend income.
Interest expense decreased by ¥10 billion, or 2.4%, from the previous fiscal year to ¥402 billion in the fiscal
year ended March 31, 2014. Domestic interest expense accounted for ¥272 billion of the total amount, a decreaseof ¥11 billion from the previous fiscal year, and foreign interest expense accounted for ¥130 billion of the total
amount, an increase of ¥1 billion from the previous fiscal year.
The decrease in domestic interest expense was due mainly to a decrease in interest expense on domestic
short-term borrowings, offset in part by an increase in interest expense on long-term debt. The decrease ininterest expense on domestic short-term borrowings was due mainly to a decrease in the average balance and adecrease in the average interest rate, reflecting a decline in short-term interest rate levels of yen. The increase ininterest expense on long-term debt was due mainly to an increase in the average balance, offset in part by adecrease in the average interest rates as a result of an increase in low interest rate debt from the Bank of Japan.
The changes in the average interest rates on domestic interest-bearing liabilities contributed to an overall
decrease in interest expense of ¥22 billion, and the changes in the average balance of domestic interest-bearing
liabilities contributed to an overall increase in interest expense of ¥11 billion, resulting in the ¥11 billion decreasein domestic interest expense.
The increase in foreign interest expense was due mainly to increases in interest expense on foreign deposits
and foreign trading account liabilities, offset in part by a decrease in interest expense on foreign short-termborrowings. The increase in foreign interest expense on foreign deposits was due mainly to an increase in the
average balance. The increase in interest expense on foreign trading account liabilities was due mainly to anincrease in the average interest rate, reflecting a rise in long-term interest rate levels of major currencies, as wellas an increase in the average balance. The decrease in foreign interest expense on foreign short-term borrowings
was due mainly to a decrease in the average interest rate, reflecting a decline in short-term interest rate levels of69

major currencies. The changes in the average interest rates on foreign interest-bearing liabilities contributed to an
overall decrease in interest expense of ¥25 billion, and the changes in the average balance of foreign interestbearing liabilities contributed to an overall increase in interest expense of ¥26 billion, resulting in the ¥1 billion
increase in foreign interest expense.
As a result of the foregoing, net interest income increased by ¥10 billion, or 1.0%, from the previous fiscal
year to ¥1,021 billion. The average interest rate spread declined by 0.01% from the previous fiscal year to 0.62%
in the fiscal year ended March 31, 2014. The decline of the average interest rate spread was not significant
because both the average yields on total interest-earning assets and the average interest rates on total interestbearing liabilities generally leveled out between these periods.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
Interest and dividend income decreased by ¥14 billion, or 1.0%, from the previous fiscal year to¥1,423 billion in the fiscal year ended March 31, 2013. Domestic interest and dividend income accounted for¥894 billion of the total amount, a decrease of ¥57 billion from the previous fiscal year, and foreign interest anddividend income accounted for ¥529 billion, an increase of ¥43 billion from the previous fiscal year.
The decrease in domestic interest and dividend income was due mainly to the decrease in interest income
from domestic loans. The decrease in interest income from domestic loans was due mainly to the decrease in the
average yield, reflecting a decline in yen interest rate levels, as well as the average balance. Changes in the
average yields on domestic interest-earning assets contributed to an overall decrease in interest and dividend
income of ¥49 billion, and changes in the average balances of domestic interest-earning assets contributed to an
overall decrease in interest and dividend income of ¥8 billion, resulting in the ¥57 billion decrease in domestic
interest and dividend income.
The increase in foreign interest and dividend income was due mainly to the increase in interest income fromforeign loans. The increase in interest income from foreign loans was due mainly to an increase in the averagebalance, mainly in Asia and Oceania. Changes in the average yields on foreign interest-earning assets contributed
to an overall decrease in interest and dividend income of ¥60 billion, and changes in the average balance of
foreign interest-earning assets contributed to an overall increase in interest and dividend income of ¥103 billion,
resulting in the ¥43 billion increase in foreign interest and dividend income.
Interest expense decreased by ¥4 billion, or 1.0%, from the previous fiscal year to ¥412 billion in the fiscal
year ended March 31, 2013. Domestic interest expense accounted for ¥283 billion of the total amount, a decreaseof ¥13 billion from the previous fiscal year, and foreign interest expense accounted for ¥129 billion of the total
amount, an increase of ¥9 billion from the previous fiscal year.
The decrease in domestic interest expense was due mainly to a decrease in interest expense on domestic
deposits. The decrease in interest expense on domestic deposits was due mainly to a decrease in the averageinterest rate, reflecting a decline in yen interest rate levels. The changes in the average interest rates on domestic
interest-bearing liabilities contributed to substantially all of the overall decrease in interest expense of¥13 billion.
The increase in foreign interest expense was due mainly to an increase in interest expense on foreign shortterm borrowings. The increase in foreign interest expense on foreign short-term borrowings was due mainly to anincrease in the average balance, primarily as a result of an increase in payables under repurchase agreements ofour securities subsidiary in the United States as well as the average interest rate. The changes in the averageinterest rates on foreign interest-bearing liabilities contributed to an overall decrease in interest expense of¥11 billion, and the changes in the average balance of foreign interest-bearing liabilities contributed to an overall
increase in interest expense of ¥20 billion, resulting in the ¥9 billion increase in foreign interest expense.
70

As a result of the foregoing, net interest income decreased by ¥10 billion, or 1.0%, from the previous fiscal
year to ¥1,011 billion. The average interest rate spread decreased by 0.04% to 0.63%, with the domestic averageinterest rate spread decreasing by 0.03% due to a decrease in the average yield on interest-earning assets, whichmore than offset the effect of a decrease in the average interest rate on interest-bearing liabilities, both of whichreflect declining yen interest rate levels, and the foreign average interest rate spread decreasing by 0.07% due tothe effect of the decrease in the average yield on interest-earning assets exceeding the effect of the decrease in
the average interest rate on interest-bearing liabilities, both of which reflects declining euro interest rate levels.
Provision (Credit) for Loan Losses
Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
We recorded a credit for loan losses of ¥126 billion in the fiscal year ended March 31, 2014 compared to a
provision for loan losses of ¥140 billion in the previous fiscal year. The change was due primarily to a decrease
in allowance for loan losses on domestic impaired loans as a result of upgrades and collections related to someborrowers and allowance for loan losses on non-impaired loans reflecting upgrades in the obligor categories of abroad range of borrowers mainly through our credit management activities, including business revitalization
support for borrowers, reflecting the continuing gradual recovery of the Japanese economy as described in “—
Overview—Operating Environment.”
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
We had a provision for loan losses of ¥140 billion in the fiscal year ended March 31, 2013 compared to acredit for loan losses of ¥23 billion in the previous fiscal year. The change was due primarily to an increase inallowance for loan losses as a result of an increase in foreign impaired loans that required an allowance for loan
losses and of increased estimated loss reflecting changes in business environment surrounding some domestic
obligors, offset in part by the effects of the continuing gradual recovery of the Japanese economy.
Noninterest Income
The following table shows a breakdown of noninterest income for the fiscal years ended March 31, 2012,2013 and 2014:
Fiscal years ended March 31,
2012
2013
2014
(in billions of yen)

Fees and commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and commissions from securities-related business . . . . . . . . . . . . . . . . . . . .
Fees and commissions from deposits, debentures and lending business . . . . . . . .
Fees and commissions from remittance business . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees for other customer services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange gains (losses)—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account gains (losses)—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment gains (losses)—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment gains (losses) related to bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment gains (losses) related to equity securities . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains on disposal of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71¥ 575 ¥
116
98
105
46
210
98
333
(33)
42
(65)
(10)
20
97
¥1,090

613 ¥
133
114
105
46
215
21
534
121
91
56
(26)
12
138

¥1,439

676
170
114
109
49
234
26
(60)
266
60
175
31
10
165

¥1,083

Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
Noninterest income decreased by ¥356 billion, or 24.7%, from the previous fiscal year to ¥1,083 billion in
the fiscal year ended March 31, 2014. The decrease was due mainly to trading account losses—net of ¥60 billion
compared to trading account gains—net of ¥534 billion in the previous fiscal year, offset in part by an increase ininvestment gains—net of ¥145 billion and an increase in fees and commissions income of ¥63 billion.
Fees and commissions
Fees and commissions increased by ¥63 billion, or 10.3%, from the previous fiscal year to ¥676 billion in
the fiscal year ended March 31, 2014. The increase was due mainly to an increase in fees and commissions fromsecurities-related business of ¥37 billion and an increase in fees for other customer services of ¥19 billion. The
increase in fees and commissions from securities-related business was due mainly to an increase in fees andcommission related to investment trusts and individual annuities as a result of the upturn in domestic stock
markets during the fiscal year ended March 31, 2014 compared to the previous fiscal year.
Trading account gains (losses)—net
Trading account gains (losses)—net was a loss of ¥60 billion in the fiscal year ended March 31, 2014
compared to a gain of ¥534 billion in the previous fiscal year. The change was due mainly to an increase in losses
related to changes in the fair value of foreign currency-denominated available-for-sale securities for which thefair value option was elected, reflecting a rise in long-term interest rates, and an increase in losses related tochanges in the fair value of derivative financial instruments used to hedge market risks, mainly interest rate risks,that are not eligible for hedge accounting under U.S. GAAP. For further information on the fair value option, seenote 28 to our consolidated financial statements included elsewhere in this annual report.
Investment gains (losses)—net
Investment gains—net increased by ¥145 billion, or 119.8%, from the previous fiscal year to ¥266 billion in
the fiscal year ended March 31, 2014. The increase was due mainly to an increase in investment gains related toequity securities of ¥119 billion, and other investment gains of ¥31 billion recorded in the fiscal year ended
March 31, 2014 compared to other investment losses of ¥26 billion in the previous fiscal year, offset in part by adecrease in investment gains related to bonds of ¥31 billion. The increase in investment gains related to equity
securities was due mainly to a decrease in impairment losses on equity securities and an increase in gains onsales of equity securities, both of which were results of an upturn in domestic stock market conditions during the
fiscal year ended March 31, 2014. The decrease in investment gains related to bonds was due mainly to adecrease in gains on sales of bonds in the fiscal year ended March 31, 2014, which reflected a rise in long-term
interest rates of the yen and certain other major currencies during the fiscal year ended March 31, 2014 comparedto the previous fiscal year.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
Noninterest income increased by ¥349 billion, or 32.0%, from the previous fiscal year to ¥1,439 billion in
the fiscal year ended March 31, 2013. The increase was due mainly to an increase in trading account gains—netof ¥201 billion, investment gains—net of ¥121 billion in the fiscal year ended March 31, 2013 compared toinvestment losses—net of ¥33 billion in the previous fiscal year, an increase in other noninterest income of¥41 billion and an increase in fees and commissions of ¥38 billion, offset in part by a decrease in foreignexchange gains—net of ¥77 billion.
Fees and commissions
Fees and commissions increased by ¥38 billion, or 6.6%, from the previous fiscal year to ¥613 billion in thefiscal year ended March 31, 2013. The increase was due mainly to an increase in fees and commissions from72

securities-related business of ¥17 billion and an increase in fees and commissions from deposits, debentures andlending business of ¥16 billion. The increase in fees and commissions from securities-related business was due
mainly to an increase in fees and commissions related to equity securities transactions, investment trust andindividual annuities as a result of a recovery of the stock markets during the fiscal year ended March 31, 2013.
The increase in fees and commissions from deposits, debentures and lending business was due mainly to anincrease in fee income associated with domestic syndicated loans.
Foreign exchange gains (losses)—net
Foreign exchange gains—net decreased by ¥77 billion, or 78.6%, from the previous fiscal year to¥21 billion in the fiscal year ended March 31, 2013. The decrease was due mainly to fluctuations in foreignexchange rates in the fiscal year ended March 31, 2013.
Trading account gains (losses)—net
Trading account gains—net increased by ¥201 billion, or 60.4%, from the previous fiscal year to¥534 billion in the fiscal year ended March 31, 2013. The increase was due mainly to an increase in trading
account gains earned by our securities subsidiary related to bonds reflecting a decline in yen interest rate levels
and related to domestic equity securities reflecting an upturn in domestic market conditions, gains recorded byconsolidated VIEs as a result of an improvement in market conditions and an increase in gains related to change
in the fair value of derivative financial instruments used to hedge market risks that are not eligible for hedge
accounting under U.S. GAAP, offset in part by a decrease in gains related to changes in the fair value of foreign
currency-denominated available-for-sale securities for which the fair value option was elected. For further
information on the fair value option, see note 28 to our consolidated financial statements included elsewhere inthis annual report.
Investment gains (losses)—net
Investment gains (losses)—net was a gain of ¥121 billion in the fiscal year ended March 31, 2013 compared
to a loss of ¥33 billion in the previous fiscal year. The change was due mainly to investment gains related toequity securities of ¥56 billion recorded in the fiscal year ended March 31, 2013 compared to investment losses
related to equity securities of ¥65 billion in the previous fiscal year and an increase in investment gains related tobonds of ¥49 billion from the previous fiscal year to ¥91 billion in the fiscal year ended March 31, 2013. Thechange in investment gains (losses) related to equity securities was due mainly to an increase in gains on sales of
equity securities as a result of an upturn in domestic stock market conditions. The increase in investment gains
related to bonds was due mainly to an increase in gains related to sales of Japanese government bonds as a resultof declining yen interest rates. For further information, see note 3 to our consolidated financial statements
included elsewhere in this annual report.

73

Noninterest Expenses
The following table shows a breakdown of noninterest expenses for the fiscal years ended March 31, 2012,2013 and 2014:
Fiscal years ended March 31,
2012
2013
2014
(in billions of yen)

Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and commission expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for losses on off-balance-sheet instruments . . . . . . . . . . . . . . . . . . .
Other noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 587 ¥
477
6
175
108
(1)
119
¥1,471

572
440
—
172
109
5
127

¥ 587
487
4
172
122
12
120

¥1,425¥1,504

Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
Noninterest expenses increased by ¥79 billion, or 5.5%, from the previous fiscal year to ¥1,504 billion in thefiscal year ended March 31, 2014. The increase was due mainly to an increase in general and administrative
expenses of ¥47 billion and an increase in salaries and employee benefits of ¥15 billion.
Salaries and employee benefits
Salaries and employee benefits increased by ¥15 billion, or 2.6%, from the previous fiscal year to ¥587
billion in the fiscal year ended March 31, 2014. The increase was due mainly to an increase in overseas personnel
expenses, offset in part by the effects of decreased employee retirement benefit expenses as a result of a decreasein the amortization of net actuarial loss, which primarily reflects past recoveries of the fair value of plan assets
and an increase in expected return on plan assets, which reflects various aspects of long-term prospects for the
economy, historical performance of investments of plan assets and the market environment, including stock
market conditions, at the beginning of the fiscal year. Additional information regarding pension and other
employee benefit plans is included in note 20 to our consolidated financial statements included elsewhere in thisannual report.
General and administrative expenses
General and administrative expenses increased by ¥47 billion, or 10.7%, from the previous fiscal year to¥487 billion in the fiscal year ended March 31, 2014. The increase was due mainly to an increase in IT-related
costs as a result of the commencement of depreciation relating to the common operational infrastructure of the
new IT systems platform, as well as an increase in overseas and advertising expenses.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
Noninterest expenses decreased by ¥46 billion, or 3.1%, from the previous fiscal year to ¥1,425 billion in
the fiscal year ended March 31, 2013. The decrease was due mainly to a decrease in general and administrative
expenses of ¥37 billion and a decrease in salaries and employee benefits of ¥15 billion. The decrease in generaland administrative expenses was due mainly to our continuous group-wide cost reduction efforts. The decrease insalaries and employee benefits was due mainly to the effect of decreased employee retirement benefit expenses.
Salaries and employee benefits
Salaries and employee benefits decreased by ¥15 billion, or 2.6%, from the previous fiscal year to ¥572
billion in the fiscal year ended March 31, 2013 due mainly to the effect of decreased employee retirement benefit
74

expenses as a result of a decrease in the amortization of net actuarial loss, which primarily reflects past
recoveries of the fair value of plan assets, an increase in expected return on plan assets, which reflects various
aspects of long-term prospects for the economy, historical performance of investments of plan assets and themarket environment, including stock market conditions, at the beginning of the fiscal year, and the absence of apremium allowance for a voluntary early retirement program of a securities subsidiary incurred in the previous
fiscal year. Additional information regarding pension and other employee benefit plans is included in note 20 toour consolidated financial statements included elsewhere in this annual report.
General and administrative expenses
General and administrative expenses decreased by ¥37 billion, or 7.8%, from the previous fiscal year to¥440 billion in the fiscal year ended March 31, 2013. The decrease was due mainly to our continuous group-wide
cost reduction efforts.
Income Tax Expense
The following table shows the components of income tax expense (benefit) for the fiscal years ended
March 31, 2012, 2013 and 2014:
Fiscal years ended March 31,
2012
2013
2014
(in billions of yen)

Current:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 22
33

¥ 37
11

¥ 93
43

Total current tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55

48

136

(37)
(4)

(40)
(4)

95
(5)

Total deferred tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(41)

(44)

90

Total income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 14

¥ 4

¥226

Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
Income tax expense increased by ¥222 billion from the previous fiscal year to ¥226 billion in the fiscal year
ended March 31, 2014, due mainly to deferred tax expense of ¥90 billion compared to deferred tax benefit of ¥44
billion in the previous fiscal year and an increase in current income tax expense of ¥88 billion. The change indeferred tax expense (benefit) was due mainly to a decrease in deferred tax assets, net of allowance, as a result ofa slowing in the increase of our estimation of future taxable income compared with the previous fiscal year,
which in turn was due to a slowing in the increase of net unrealized gains on available-for-sale securities
compared with the previous fiscal year. The increase in current tax expense was due mainly to an increase in the
taxable income of a principal banking subsidiary.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
Income tax expense decreased by ¥10 billion, or 71.4%, from the previous fiscal year to ¥4 billion in thefiscal year ended March 31, 2013, due mainly to a decrease in current income tax expense.

75

The following table shows components of deferred tax assets as of March 31, 2012, 2013 and 2014:
As of March 31,
2012
2013
2014
(in billions of yen)

Deferred tax assets:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,064 ¥ 889 ¥ 724
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
333
337
267
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59—
20
Prepaid pension cost and accrued pension liabilities . . . . . . . . . . . . . . . . . . . . . .
12——Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
——29
Undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1——Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,476
450
449
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
282
265
204
Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,227
1,941
1,693
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,952)(585)(444)
Deferred tax assets, net of valuation allowance . . . . . . . . . . . . . . . . . . . . . .
1,275
1,356
1,249
Deferred tax liabilities:
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
369
568
659
Prepaid pension cost and accrued pension liabilities . . . . . . . . . . . . . . . . . . . . . .
—40
133
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
35—
Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
12
11
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—11—
Undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—11
12
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53
52
62
Gross deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

454

729

877

821

¥ 627

¥ 372

Net Income (Loss) Attributable to Noncontrolling Interests
Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
Net income (loss) attributable to noncontrolling interests decreased by ¥4 billion, or 66.7%, from theprevious fiscal year to ¥2 billion in the fiscal year ended March 31, 2014.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
Net income (loss) attributable to noncontrolling interests was an income of ¥6 billion in the fiscal year
ended March 31, 2013 compared to a loss of ¥7 billion in the previous fiscal year due mainly to the allocation ofincome recorded by our securities subsidiaries in the fiscal year ended March 31, 2013 compared to theallocation of losses incurred by our securities subsidiaries in the previous fiscal year.
Net Income Attributable to MHFG Shareholders
Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
As a result of the foregoing, net income attributable to MHFG shareholders decreased by ¥377 billion, or
43.1%, from the previous fiscal year to ¥498 billion in the fiscal year ended March 31, 2014.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
As a result of the foregoing, net income attributable to MHFG shareholders increased by ¥219 billion, or
33.4%, from the previous fiscal year to ¥875 billion in the fiscal year ended March 31, 2013.
76

Business Segments Analysis
Our operating segments are based on the nature of the products and services provided, the type of customer
and our management organization. The business segment information set forth below is derived from the internalmanagement reporting systems used by management to measure the performance of our business segments. We
measure the performance of each of our operating segments primarily in terms of “net business profits” inaccordance with internal managerial accounting rules and practices. Net business profits is used in Japan as ameasure of the profitability of core banking operations and is defined as gross profits (or the sum of net interest
income, fiduciary income, net fee and commission income, net trading income and net other operating income)less general and administrative expenses. Measurement by net business profits is required for regulatory
reporting to the Financial Services Agency. Therefore, the format and information are presented primarily on thebasis of Japanese GAAP and are not consistent with the consolidated financial statements prepared in accordancewith U.S. GAAP. A reconciliation of total net business profits with income before income tax expense under
U.S. GAAP is provided in note 31 to our consolidated financial statements included elsewhere in this report.
Beginning on April 1, 2013, we moved to a new group operational structure and established ten business
units such as Personal Banking, Retail Banking, Corporate Banking (Large Corporations), etc., and head-office
coordination divisions to determine strategies and initiatives across the group-wide banking, trust banking,securities and other business areas, based on the ten business units across Mizuho Bank (the former Mizuho Bankand the former Mizuho Corporate Bank merged on July 1, 2013), Mizuho Trust & Banking and Mizuho
Securities, etc., and we realigned the reportable segments to reflect the new organizational structure. The former
three Global Groups were abolished.
We engage in banking, trust banking, securities and other businesses through consolidated subsidiaries andaffiliates. As these subsidiaries and affiliates are in different industries and regulatory environments, we disclosebusiness segment information based on the relevant principal consolidated subsidiaries such as Mizuho Bank (theformer Mizuho Bank and the former Mizuho Corporate Bank), Mizuho Trust & Banking and Mizuho Securities
for investors to measure the present and future cash flows properly.
Operating segments of Mizuho Bank are aggregated based on the type of customer characteristics and are
aggregated into the following seven reportable segments: Personal Banking; Retail Banking; Corporate Banking(Large Corporations); Corporate Banking; Financial Institutions & Public Sector Business; International
Banking; and Trading and others.
Mizuho Bank
Personal Banking
This segment provides financial products and services such as housing loans, deposits, investment trusts andindividual insurance to individual customers through Mizuho Bank’s nationwide branches and ATM network as
well as telephone and the internet banking services. In addition, this segment handles trust products as an agentof Mizuho Trust & Banking.
Retail Banking
This segment provides financial products and services, such as comprehensive consulting services ofbusiness succession and asset inheritance and asset management for business owners and high-net-worth
customers. This segment also provides overall banking services for SMEs.
Corporate Banking (Large Corporations)This segment provides a full range of financial solutions on a global basis to Japanese large corporations
and their affiliates by integrating our specialty functions, including banking, trust and securities, based on solid
relationships with our domestic customers and by utilizing our global industry knowledge.
77Corporate Banking
This segment provides, to larger SMEs, financial products and services including a range of solution
businesses in accordance with the growth strategy of our corporate customers. This segment provides solutions
for stable fund-raising, mergers and acquisitions and initial public offerings for customers in their start-up or
growth stages, and management buy-out, business succession, entry to new business and business restructuring
for customers in mature or transition stages.
Financial Institutions & Public Sector BusinessThis segment provides advisory services and solutions such as advice on financial strategy and risk
management to financial institutions and provides comprehensive financial products and services that include
funding support via the subscription and underwriting of bonds, etc., to public sector entities.
International Banking
This segment provides unified support both in Japan and overseas for our Japanese corporate customers to
expand their overseas operations, and also promotes business with non-Japanese corporate customers in various
countries through our global network. Further, this segment offers products such as project finance and tradefinance for overseas customers.
Trading and others
This segment provides derivatives and other risk hedging products to satisfy Mizuho Bank’s customers’
financial and business risk control requirements. It is also engaged in Mizuho Bank’s proprietary trading, such as
foreign exchange and bond trading, and asset and liability management. This segment also includes costs
incurred by the head office functions of Mizuho Bank.
Mizuho Trust & Banking
Mizuho Trust & Banking provides products and services related to trust, real estate, securitization andstructured finance, pension and asset management and stock transfers.
Mizuho Securities
Mizuho Securities provides full-line securities services to corporations, financial institutions, public sector
entities and individuals.
OthersThis segment consists of Mizuho Financial Group, our subsidiaries other than Mizuho Bank, Mizuho
Trust & Banking and Mizuho Securities, and our equity-method affiliates. They provide a wide range ofcustomers with various products and services such as those related to trust and custody, asset management andprivate banking through companies such as Trust & Custody Services Bank, Mizuho Asset Management, DIAM
(an equity-method affiliate) and Mizuho Private Wealth Management. This segment also provides non-banking
services, including research and consulting services through Mizuho Research Institute, information technologyrelated services through Mizuho Information & Research Institute, and advisory services to financial institutions
through Mizuho Financial Strategy.

78

The information below for reportable segments is derived from our internal management reporting systems.
Results of Operations by Business Segment
Consolidated Results of Operations
Consolidated gross profits for the fiscal year ended March 31, 2014 were ¥2,035.3 billion, a decrease of¥136.4 billion compared to the fiscal year ended March 31, 2013. Consolidated general and administrative
expenses for the fiscal year ended March 31, 2014 were ¥1,229.3 billion, an increase of ¥58.3 billion comparedto the fiscal year ended March 31, 2013. Consolidated net business profits for the fiscal year ended March 31,
2014 were ¥744.3 billion, a decrease of ¥167.9 billion compared to the fiscal year ended March 31, 2013.
The former Mizuho Bank (Consolidated)
The former
Mizuho Investors
Securities(Consolidated) Others

The former Mizuho Bank (Non-consolidated)

Total

Total

Financial
Corporate
Institution
Banking& Public
Personal Retail(LargeCorporate Sector
Trading
Banking Banking Corporations) Banking Business and others
(a)
(b)
(c)
(d)
(e)
(f)

(g)

(h)

¥ 67.4¥ 0.7¥ 37.8(in billions of yen)

Fiscal year ended March 31,
2012(1)Gross profits(excluding the amounts ofcredit costs of trust
accounts):
Net interest income(expense) . . . . . . . . . ¥583.9 ¥545.4 ¥224.3 ¥ 95.1
Net noninterest
income . . . . . . . . . . . 305.8 253.3
32.1
41.0

¥17.8

¥118.6

¥22.2

19.0

68.2

8.6

84.4

43.9

8.6

256.4

136.1

36.8

186.8

30.8

151.8

44.6

46.4

218.6
—

108.2
—

18.5
—

86.4
—

14.5
—

110.2
—

40.9
—

11.2
(14.0)Net business profits(losses) (excluding
the amounts of credit
costs of trust
accounts, before
reversal of (provisionfor) general reserve
for losses onloans) . . . . . . . . . . . . ¥267.2 ¥242.3 ¥ 37.8 ¥ 27.9

¥18.3

¥100.4¥16.3¥ 41.6¥ 3.7¥ 21.2

Total . . . . . . . . . . . 889.7 798.7
General and administrative
expenses (excluding nonrecurring losses) . . . . . . . . 608.5 556.4
Others . . . . . . . . . . . . . . . . . . (14.0) —79

MizuhoMizuhoTrust &
Financial
Banking
Group(Consolidated) Others (Consolidated)

The former Mizuho Corporate Bank (Consolidated)
The former
MizuhoSecurities(Consolidated) Others

The former Mizuho Corporate Bank (Non-consolidated)

Total

Total

Financial
Corporate
Institution
Banking& Public Inter- Trading(LargeCorporate Sector national andCorporations) Banking Business Banking others
(i)
(j)
(k)
(l)
(m)

(n)

(o)

(p)

(q)

Total

(in billions of yen)

Fiscal year ended March 31,
2012(1)Gross profits (excluding theamounts of credit costs oftrust accounts):
Net interest income(expense) . . . . . . . . . . ¥468.3 ¥395.0
Net noninterest
income . . . . . . . . . . . . 449.4 286.8
Total . . . . . . . . . . . . 917.7 681.8
General and administrative
expenses (excluding
non-recurring losses) . . . . . 465.4 244.9
Others . . . . . . . . . . . . . . . . . . . (52.1) —Net business profits(losses) (excluding theamounts of credit costsof trust accounts,
before reversal of(provision for) generalreserve for losses onloans) . . . . . . . . . . . . . ¥400.2 ¥436.9¥150.6¥ 2.7¥18.1 ¥ 90.3 ¥133.3¥ (8.1) ¥ 81.4

¥ 42.5¥ (6.4) ¥1,088.3

114.4
265.0

1.1

15.8

86.9

68.6

151.7

10.9

104.8

54.8

914.8

3.8

33.9

177.2 201.9

143.6

92.3

147.3

48.4

2,003.1

75.6
—

1.3
—

11.6
—

60.3
—

192.9
(0.1)

27.6
(52.0)

92.3
(3.7)

40.1
(7.9)

1,206.3(77.7)¥189.4¥ 2.5¥22.3 ¥116.9 ¥105.8¥ (49.4) ¥ 12.7

¥ 51.396.1—¥ 0.4 ¥ 719.1

The former Mizuho Bank (Consolidated)

Total

The former Mizuho Bank (Non-consolidated)

OthersFinancial
Corporate
Institution &Banking
PublicTrading
Personal Retail(LargeCorporate
SectorandBanking Banking Corporations) Banking
Businessothers
Total
(a)
(b)
(c)
(d)
(e)
(f)

(g)

(in billions of yen)

Fiscal year ended March 31, 2013(1)(2)(4)Gross profits (excluding the amounts of credit
costs of trust accounts):
Net interest income (expense) . . . . . . . . . . . . ¥550.6 ¥513.8 ¥219.2 ¥ 83.3
Net noninterest income . . . . . . . . . . . . . . . . . 360.3 313.7
33.9
42.3
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 910.9 827.5
General and administrative expenses (excluding
non-recurring losses) . . . . . . . . . . . . . . . . . . . . . 568.2 524.4
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7.4) —

¥14.9
19.3

¥106.1
70.7

¥19.9
11.0

¥ 70.4 ¥36.8
136.5 46.6

253.1

125.6

34.2

176.8

30.9

206.9

83.4

218.6
—

113.7
—

11.6
—

73.2
—

14.3
—

93.0
—

43.8
(7.4)

Net business profits (losses) (excluding theamounts of credit costs of trust accounts,
before reversal of (provision for) generalreserve for losses on loans) . . . . . . . . . . . . ¥335.3 ¥303.1 ¥ 34.5 ¥ 11.9

¥22.6

¥103.6¥16.6

80¥113.9 ¥32.2

MizuhoMizuhoTrust &
Financial
Banking
Group(Consolidated) Others (Consolidated)

The former Mizuho Corporate Bank (Consolidated)

The former Mizuho Corporate Bank (Non-consolidated)

Total

MizuhoSecurities(Consolidated) Others

Financial
Corporate
Institution
Banking& Public Inter- Trading(LargeCorporate Sector national andCorporations) Banking Business Banking others
Total
(h)
(i)
(j)
(k)
(l)

(m)

(n)

(o)

(p)

Total

(in billions of yen)

Fiscal year ended March 31,
2013(1)(2)(4)Gross profits (excluding theamounts of credit costs oftrust accounts):
Net interest income(expense) . . . . . . . . . . . . ¥ 486.1 ¥401.7
Net noninterest income . . .
572.8 333.4
Total . . . . . . . . . . . . . . 1,058.9 735.1
General and administrative
expenses (excluding nonrecurring losses) . . . . . . . . . . .
471.9 241.1
Others . . . . . . . . . . . . . . . . . . . . .
(50.0) —Net business profits(losses) (excluding theamounts of credit costsof trust accounts, before
reversal of (provisionfor) general reserve forlosses on loans) . . . . . . . ¥ 537.0 ¥494.0¥140.9
103.3

¥ 0.5
0.2

¥16.3
13.2

¥108.2 ¥135.8
104.7 112.0¥ (1.8)229.0¥ 86.210.4¥ 39.5
105.0

244.2

0.7

29.5

212.9

247.8

227.2

96.6

144.5

57.4

2,171.7

76.8
—

1.3
—

12.2
—

66.6
—

84.2
—

197.1
—

33.7
(50.0)

90.1
(3.5)

40.8
(27.6)

1,171.0(88.5)¥167.4¥(0.6)¥17.3¥146.3 ¥163.6¥ 30.1¥ 12.9¥ 50.9Mizuho Bank (Non-consolidated)

Total¥(11.0) ¥ 912.2

MizuhoMizuhoTrust &
MizuhoFinancial
Banking
Securities
Group(Consolidated) (Consolidated) Others (Consolidated)

Mizuho Bank (Consolidated)

Total¥ (0.3) ¥1,075.9
57.7
1,095.8

OthersFinancial
Corporate
Institution
Banking& Public Inter- Trading
Personal Retail(LargeCorporate Sector national
andBanking Banking Corporations) Banking Business Banking others
(a)
(b)
(c)
(d)
(e)
(f)
(g)

(h)

(i)

(j)

(k)

Total

(in billions of yen)

Fiscal year ended March 31,
2014(1)(2)(3)(4)Gross profits (excluding theamounts of credit costs oftrust accounts):
Net interest income . . . ¥ 933.8 ¥ 800.1 ¥165.0 ¥59.8
Net noninterest income(expenses) . . . . . . . .
407.4
398.2 32.9 34.8
Total . . . . . . . . . . . 1,341.2 1,198.3 197.9 94.6
General and administrative
expenses (excluding
non-recurring losses) . . . .
711.3
659.0 171.3 87.8
Others . . . . . . . . . . . . . . . . .
(56.1)———Net business profits(excluding theamounts of credit
costs of trust
accounts, before
reversal of (provisionfor) general reserve
for losses onloans) . . . . . . . . . . . . ¥ 573.8 ¥ 539.3 ¥ 26.6 ¥ 6.8¥170.2¥ 40.2

¥

126.7

51.8

20.1

139.8

9.2

108.1

283.9

127.6

927.0

296.9

129.7

50.8

268.7 159.7 142.9

148.3

286.8

259.0

2,035.3

83.8
—

58.8
—

25.1
—

82.5 149.7 52.3—
— (56.1)

90.9
(2.9)

246.2
—

180.9 1,229.3(2.7)(61.7)¥ 70.9 ¥25.7 ¥186.2 ¥ 10.0 ¥ 34.5

¥ 54.5¥ 40.6¥ 75.4 ¥ 744.3¥213.1¥ 77.9 ¥30.7 ¥128.9 ¥167.6 ¥133.7
(7.9)

2.9

¥131.4 ¥1,108.3

Notes:(1) As for the fiscal year ended March 31, 2012, “Others (h),” “Others (o)” and “Others (q)” include eliminationof transactions between consolidated subsidiaries. As for the fiscal year ended March 31, 2013, “Others(g),” “Others (n)” and “Others (p)” include elimination of transactions between consolidated subsidiaries.
As for the fiscal year ended March 31, 2014, “Others (h)” and “Others (k)” include elimination oftransactions between consolidated subsidiaries.
81(2) Beginning on April 1, 2013, we moved to a new group operational structure and realigned the reportablesegments to reflect the new organizational structure. In addition, new allocation methods have been applied
to the calculation of “Gross profits” and “General and administrative expenses.” Figures for the fiscal year
ended March 31, 2013 have been reclassified under the new allocation methods. The effect of the change ofallocation methods is not significant.
(3) As for the fiscal year ended March 31, 2014, “Mizuho Bank (Non-consolidated)” represents the sum of theperformance of the former Mizuho Corporate Bank for the first quarter and the new Mizuho Bank for thesecond, third and fourth quarters, while “Others (h)” includes the performance of the former Mizuho Bankfor the first quarter, in light of the merger of the former Mizuho Bank and the former Mizuho Corporate
Bank conducted in July 2013.
(4) Beginning on April 1, 2013, Mizuho Securities was turned into a directly-held subsidiary of Mizuho
Financial Group. As for the fiscal year ended March 31, 2013, “Mizuho Securities (Consolidated) (m)”represents the performance of the former Mizuho Securities for the first three quarters and the new Mizuho
Securities for the fourth quarter, while “Others (g)” includes the performance of the former Mizuho
Investors Securities for the first three quarters. As for the fiscal year ended March 31, 2014, “Mizuho
Securities (Consolidated) (j)” represents the performance of the new Mizuho Securities, in light of themerger of the former Mizuho Securities and the former Mizuho Investors Securities conducted in January
2013.
Mizuho BankOn July 1, 2013, the merger between the former Mizuho Bank and the former Mizuho Corporate Bank cameinto effect with the former Mizuho Corporate Bank as the surviving entity, which was renamed Mizuho Bank
upon the merger. The following table and comparison are based on the simple aggregation of the results of theformer Mizuho Bank and the former Mizuho Corporate Bank with respect to periods prior to the merger.
The former Mizuho Bank and the former Mizuho Corporate Bank

Personal
Banking(a)RetailBanking(b)

Corporate
Banking(LargeCorporations)(c)Corporate
Banking(d)Financial
Institution& Public
SectorBusiness(e)International
Banking(f)

Tradingandothers(g)

Total(in billions of yen)

Fiscal year ended March 31,2013(1)(2):Gross profits (excluding the amountsof credit costs of trust accounts):
Net interest income . . . . . . . . . .
Net noninterest income . . . . . . .

¥219.233.9¥ 83.342.3¥155.8122.6¥106.6
70.9

¥36.2
24.2

¥108.2104.7¥206.2248.5¥ 915.5
647.1

Total . . . . . . . . . . . . . . . . .
General and administrative expenses(excluding non-recurring
losses) . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . .

253.1

125.6

278.4

177.5

60.4

212.9

454.7

1,562.6

218.6
—

113.7
—

88.4
—

74.5
—

26.5
—

66.6
—

177.2
—

765.5
—

Net business profits . . . . . . . . . .

¥ 34.5¥ 11.9¥190.0¥103.0¥33.9¥146.3¥277.5¥ 797.1¥218.541.6¥ 80.045.3¥172.7131.4¥103.3
64.7

¥35.4
22.3

¥128.9139.8¥185.015.2¥ 923.8
460.3

Total . . . . . . . . . . . . . . . . .
General and administrative expenses(excluding non-recurring
losses) . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . .

260.1

125.3

304.1

168.0

57.7

268.7

200.2

1,384.1

226.4
—

116.7
—

87.2
—

77.7
—

29.0
—

82.5
—

171.6
—

791.1
—

Net business profits . . . . . . . . . .

¥ 33.7¥¥216.9¥ 90.3¥28.7¥186.2¥ 28.6¥ 593.0

Fiscal year ended March 31, 2014(1)(2):Gross profits (excluding the amountsof credit costs of trust accounts):
Net interest income . . . . . . . . . .
Net noninterest income . . . . . . .

8.6

82

Notes:(1) The former Mizuho Bank and the former Mizuho Corporate Bank merged on July 1, 2013. Figures for the
fiscal year ended March 31, 2013 represent the simple aggregation of the performance of the former Mizuho
Bank and the former Mizuho Corporate Bank, and figures for the fiscal year ended March 31, 2014
represent the simple aggregation of the performance of the former Mizuho Bank and the former Mizuho
Corporate Bank for the first quarter and the new Mizuho Bank for the second, third, and fourth quarters.
(2) Beginning on April 1, 2013, we moved to a new group operational structure and realigned the reportablesegments to reflect the new organizational structure. In addition, new allocation methods have been applied
to the calculation of “Gross profits” and “General and administrative expenses.” Figures for the fiscal year
ended March 31, 2013 have been reclassified under the new allocation methods. Figures for the fiscal year
ended March 31, 2013 prior to such change are as set forth in the table below. The narrative analysis under
the heading “Fiscal year ended March 31, 2013 compared to fiscal year ended March 31, 2012” below isbased on figures prior to such change.
The former Mizuho Bank and the former Mizuho Corporate Bank

Personal
Banking(a)RetailBanking(b)

Corporate
Banking(LargeCorporations)(c)Corporate
Banking(d)Financial
Institution& Public
SectorBusiness(e)International
Banking(f)

Tradingand others
(g)

Total

(in billions of yen)

Fiscal year ended March 31,
2012(1):Gross profits (excluding theamounts of credit costs oftrust accounts):
Net interest income . . . . . .
Net noninterest income . . .

¥224.332.1¥ 95.141.0¥168.4133.4¥121.3
69.3

¥40.3
24.4

¥ 90.386.9¥200.7153.0¥ 940.4
540.1

Total . . . . . . . . . . . . .
General and administrative
expenses (excluding nonrecurring losses) . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . .

256.4

136.1

301.8

190.6

64.7

177.2

353.7

1,480.5

218.6
—

108.2
—

94.1
—

87.7
—

26.1
—

60.3
—

206.3
—

801.3
—

Net business profits . . . . . .

¥ 37.8¥ 27.9¥207.7¥102.9¥38.6¥116.9¥147.4¥ 679.2

Fiscal year ended March 31,
2013(1):Gross profits (excluding theamounts of credit costs oftrust accounts):
Net interest income . . . . . .
Net noninterest income . . .

¥210.637.4¥ 87.145.9¥156.4144.3¥113.1
85.8

¥34.7
27.1

¥109.6104.7¥204.0201.9¥ 915.5
647.1

Total . . . . . . . . . . . . .
General and administrative
expenses (excluding nonrecurring losses) . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . .

248.0

133.0

300.7

198.9

61.8

214.3

405.9

1,562.6

209.3
—

102.1
—

87.9
—

82.7
—

24.0
—

61.5
—

198.0
—

765.5
—

Net business profits . . . . . .

¥ 38.7¥ 30.9¥212.8¥116.2¥37.8¥152.8¥207.9¥ 797.1

Note:(1) Beginning the fiscal year ended March 31, 2013, with the implementation of the “substantive one bank”
structure, new allocation methods among segments within the former Mizuho Corporate Bank were applied
to the calculation of the respective “Gross profits” and “General and administrative expenses.” Figures forthe fiscal year ended March 31, 2012 were reclassified under the new allocation methods.

83

Fiscal year ended March 31, 2014 compared to fiscal year ended March 31, 2013
Gross profits for the fiscal year ended March 31, 2014 were ¥1,384.1 billion, a decrease of ¥178.5 billion, or
11.4%, compared to the fiscal year ended March 31, 2013. The decrease was attributable mainly to a decrease inincome from trading and others due mainly to the particularly strong results in the previous fiscal year. Thisdecrease was offset in part by increases in gross profits related to our customer groups attributable to an increase
in income mainly in Asia in international banking, an increase in solution business-related income in corporatebanking (large corporations) and an increase in sales of investment trusts in personal banking.
General and administrative expenses for the fiscal year ended March 31, 2014 increased by ¥25.6 billion, or
3.3%, compared to the fiscal year ended March 31, 2013 to ¥791.1 billion due mainly to expenses related to thenext-generation IT systems and the depreciation of the yen against the dollar and other major currencies, which
increased the yen-equivalent costs related to our overseas operations, offset in part by our group-wide cost
reduction efforts, including our cost restructuring measures.
As a result mainly of the foregoing, net business profits for the fiscal year ended March 31, 2014 decreasedby ¥204.1 billion, or 25.6%, compared to the fiscal year ended March 31, 2013 to ¥593.0 billion.
Fiscal year ended March 31, 2013 compared to fiscal year ended March 31, 2012
Gross profits for the fiscal year ended March 31, 2013 were ¥1,562.6 billion, an increase of ¥82.1 billion, or
5.5%, compared to the fiscal year ended March 31, 2012. The increase was attributable mainly to an increase inincome from trading and others as a result of flexible and timely asset-and-liability management operations thatappropriately captured market trends in domestic and overseas financial markets, an increase in income mainly in
Asia in international banking and an increase in noninterest income such as solution business-related income incorporate banking.
General and administrative expenses for the fiscal year ended March 31, 2013 decreased by ¥35.8 billion, or
4.5%, compared to the fiscal year ended March 31, 2012 to ¥765.5 billion due mainly to our group-wide cost
reduction efforts offset in part by an increase in expenses related to overseas business resulting mainly from thedepreciation of the yen.
As a result mainly of the foregoing, net business profits for the fiscal year ended March 31, 2013 increasedby ¥117.9 billion, or 17.4%, compared to the fiscal year ended March 31, 2012 to ¥797.1 billion.
Mizuho Trust & Banking
Fiscal year ended March 31, 2014 compared to fiscal year ended March 31, 2013
Gross profits for Mizuho Trust & Banking for the fiscal year ended March 31, 2014 were ¥148.3 billion, an
increase of ¥3.8 billion, or 2.6%, compared to the fiscal year ended March 31, 2013. The increase wasattributable mainly to an increase in noninterest income related to pension and asset management and real estatebusinesses reflecting the recovery in market conditions.
General and administrative expenses for Mizuho Trust & Banking for the fiscal year ended March 31, 2014
increased by ¥0.8 billion, or 0.9%, compared to the fiscal year ended March 31, 2013 to ¥90.9 billion. We wereable to maintain expense levels similar to the previous fiscal year due mainly to our group-wide cost reduction
efforts.
As a result mainly of the foregoing, net business profits for Mizuho Trust & Banking for the fiscal year
ended March 31, 2014 increased by ¥3.6 billion, or 7.1%, compared to the fiscal year ended March 31, 2013 to¥54.5 billion.
84

Fiscal year ended March 31, 2013 compared to fiscal year ended March 31, 2012
Gross profits for Mizuho Trust & Banking for the fiscal year ended March 31, 2013 were ¥144.5 billion, adecrease of ¥2.8 billion, or 1.9%, compared to the fiscal year ended March 31, 2012. The decrease wasattributable mainly to a decrease in trading-related income. The decrease was offset in part by an increase inincome from pension and asset management and real estate businesses.
General and administrative expenses for Mizuho Trust & Banking for the fiscal year ended March 31, 2013
decreased by ¥2.2 billion, or 2.4%, compared to the fiscal year ended March 31, 2012 to ¥90.1 billion. The
decrease was due mainly to our group-wide cost reduction efforts, including our cost restructuring measures.
As a result mainly of the foregoing, net business profits for Mizuho Trust & Banking for the fiscal year
ended March 31, 2013 decreased by ¥0.4 billion, or 0.8%, compared to the fiscal year ended March 31, 2012 to¥50.9 billion.
Mizuho Securities
Fiscal year ended March 31, 2014 compared to fiscal year ended March 31, 2013
Gross profits for Mizuho Securities for the fiscal year ended March 31, 2014 were ¥286.8 billion, an
increase of ¥59.6 billion, or 26.2%, compared to the fiscal year ended March 31, 2013. The increase wasattributable mainly to the impact of the merger with Mizuho Investors Securities as well as an increase in equity
brokerage commissions and income related to investment trusts reflecting the recovery in market conditions.
General and administrative expenses for Mizuho Securities for the fiscal year ended March 31, 2014
increased by ¥49.1 billion, or 24.9%, compared to the fiscal year ended March 31, 2013 to ¥246.2 billion. The
increase was due mainly to the impact of the merger with Mizuho Investors Securities in January 2013 as well as
an increase in personnel expenses reflecting the recovery in operating results.
As a result mainly of the foregoing, net business profits for Mizuho Securities for the fiscal year ended
March 31, 2014 increased by ¥10.5 billion, or 34.9%, compared to the fiscal year ended March 31, 2013 to ¥40.6
billion.
Fiscal year ended March 31, 2013 compared to fiscal year ended March 31, 2012
Gross profits for Mizuho Securities for the fiscal year ended March 31, 2013 were ¥227.2 billion, an
increase of ¥83.6 billion, or 58.2%, compared to the fiscal year ended March 31, 2012. The increase wasattributable mainly to an increase in fees and commissions and trading income reflecting the recovery in market
conditions.
General and administrative expenses for Mizuho Securities for the fiscal year ended March 31, 2013
increased by ¥4.2 billion, or 2.2%, compared to the fiscal year ended March 31, 2012 to ¥197.1 billion. The
increase was due mainly to the impact of the merger with Mizuho Investors Securities in January 2013 offset inpart by our group-wide cost reduction efforts.
As a result mainly of the foregoing, net business profits for Mizuho Securities for the fiscal year ended
March 31, 2013 was ¥30.1 billion, an improvement of ¥79.5 billion compared to the fiscal year ended March 31,
2012.

85

Geographical Segment Analysis
The following table presents consolidated income statement and total assets information by major
geographic area. Foreign activities are defined as business transactions that involve customers residing outside ofJapan. However, as our operations are highly integrated globally, we have made estimates and assumptions forthe allocation of assets, liabilities, income and expenses among the geographic areas.

Japan

Fiscal year ended March 31, 2012:
Total revenue(1) . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses(2) . . . . . . . . . . . . . . . . . . . . . . .

¥

1,966
1,561

Income before income tax expense . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . .
Total assets at end of fiscal year . . . . . . . . . . .
Fiscal year ended March 31, 2013:
Total revenue(1) . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses(2) . . . . . . . . . . . . . . . . . . . . . . .

Total assets at end of fiscal year . . . . . . . . . . .
Fiscal year ended March 31, 2014:
Total revenue(1) . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses(2) . . . . . . . . . . . . . . . . . . . . . . .

¥419

Total assets at end of fiscal year . . . . . . . . . . .

¥

251
104
147

¥

131

132
103

¥

29
¥

28

178
96

Total

¥

82
¥

71

2,527
1,864
663

¥

649

¥124,444¥25,369¥ 8,868¥ 7,681¥166,362

¥

¥

¥

¥

¥

2,191
1,669
522

¥

525

384
141
243

¥

252

126
48
78

¥

75

162
120
42

¥

29

2,863
1,978
885

¥

881

¥126,769¥31,169¥10,591¥10,218¥178,747

¥

¥

¥

¥

¥

1,783
1,397

Income before income tax expense . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . .

¥405

Income before income tax expense . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . .

AmericasAsia/Oceania
excluding Japan,
Europeand others(in billions of yen)

386
¥

198

¥124,558

350
145
205

¥

190

¥27,528

153
96
57

¥

54

¥10,784

219
141
78

¥

58

¥12,829

2,505
1,779
726

¥

500

¥175,699

Notes:(1) Total revenue includes interest and dividend income and noninterest income.
(2) Total expenses include interest expense, provision (credit) for loan losses and noninterest expenses.
Fiscal Year Ended March 31, 2014 Compared to Fiscal Year Ended March 31, 2013
In the fiscal year ended March 31, 2014, 39.6% of our net income was derived from Japan, 38.0% from theAmericas, 10.8% from Europe and 11.6% from Asia/Oceania excluding Japan, and others. At March 31, 2014,
70.9% of total assets were allocated to Japan, 15.7% to the Americas, 6.1% to Europe and 7.3% to Asia/Oceania
excluding Japan, and others.
In Japan, total revenue decreased by ¥408 billion from the previous fiscal year due mainly to the change
from trading account gains—net in the previous fiscal year to trading account losses—net in the fiscal year ended
March 31, 2014, offset in part by an increase in investment gains—net. The change in trading account gains(losses)—net was due mainly to an increase in losses related to changes in the fair value of foreign currencydenominated available-for-sale securities for which the fair value option was elected, reflecting a rise in longterm interest rates, and an increase in losses related to changes in the fair value of derivative financial
instruments used to hedge market risks, mainly interest rate risks, that are not eligible for hedge accounting under
U.S. GAAP. The increase in investment gains—net was due mainly to a decrease in impairment losses on equity
securities and an increase in gains on sales of equity securities, both of which were results of an upturn in86domestic stock market conditions during the fiscal year ended March 31, 2014. Total expenses decreased by¥272 billion from the previous fiscal year due to the change from provision for loan losses in the previous fiscal
year to credit for loan losses in the fiscal year ended March 31, 2014. The change in provision (credit) for loan
losses was due primarily to a decrease in allowance for loan losses on impaired loans as a result of upgrades andcollections related to some borrowers and allowance for loan losses on non-impaired loans reflecting upgrades in
the obligor categories of a broad range of borrowers mainly through our credit management activities, including
business revitalization support for borrowers, reflecting the continuing gradual recovery of the Japanese
economy. In addition, we had an income tax expense of ¥188 billion in the fiscal year ended March 31, 2014
compared to an income tax benefit of ¥3 billion in the previous fiscal year. As a result, net income in Japandecreased by ¥327 billion. Total assets in Japan decreased by ¥2,211 billion due primarily to decreases ininvestments and trading account assets, offset in part by an increase in interest-bearing deposits in other banks.
In the Americas, total revenue decreased by ¥34 billion due primarily to decreases in trading accountgains—net and investment gains—net, offset in part by an increase in interest income from loans. The decreasein trading account gains—net was due mainly to a decrease in gains recorded by consolidated VIEs. The decrease
in investment gains was due mainly to a decrease in gains on sales of equity securities which had been held byour consolidated investment company. The increase in interest income from loans was due to increases in the
average balance. Total expenses increased by ¥4 billion due primarily to increases in salaries and employee
benefits, general and administrative expenses and fees and commission expenses, offset in part by a decrease ininterest expense on short-term borrowings. As a result, net income in the Americas decreased by ¥62 billion.
Total assets in the Americas decreased by ¥3,641 billion due primarily to a decrease in trading account assets.
In Europe, total revenue increased by ¥27 billion due primarily to an increase in interest income from loans.
Total expenses increased by ¥48 billion due mainly to a decrease in credit for loan losses. As a result, net income
in Europe decreased by ¥21 billion. Total assets in Europe increased by ¥193 billion due primarily to an increasein trading account assets.
In Asia/Oceania excluding Japan, and others, total revenue increased by ¥57 billion due primarily to anincrease in interest income from loans. The increase in interest income from loans was due to an increase in the
average balance. Total expenses increased by ¥21 billion due mainly to increases in interest expense on interestbearing deposits and salaries and employee benefits. As a result, net income in Asia/Oceania excluding Japan,
and others increased by ¥29 billion. Total assets in Asia/Oceania excluding Japan, and others increased by ¥2,611
billion due primarily to an increase in loans.
Fiscal Year Ended March 31, 2013 Compared to Fiscal Year Ended March 31, 2012
In the fiscal year ended March 31, 2013, 59.6% of our net income was derived from Japan, 28.6% from theAmericas, 8.5% from Europe and 3.3% from Asia/Oceania excluding Japan, and others. At March 31, 2013,
70.9% of total assets were allocated to Japan, 17.5% to the Americas, 5.9% to Europe and 5.7% to Asia/Oceania
excluding Japan, and others.
In Japan, total revenue increased by ¥225 billion from the previous fiscal year due mainly to the change
from investment losses—net in the previous fiscal year to investment gains—net in the fiscal year ended
March 31, 2013 and an increase in trading account gains—net, offset in part by a decrease in interest anddividend income. The change in investment gains (losses)—net was due mainly to investment gains related toequity securities in the fiscal year ended March 31, 2013 compared to investment losses related to equity
securities in the previous fiscal year and an increase in investment gains related to bonds. The change ininvestment gains (losses) related to equity securities was due mainly to an increase in gains on sales of equity
securities as a result of an upturn in domestic stock market conditions. The increase in investment gains related tobonds was due mainly to an increase in gains related to sales of Japanese government bonds as a result of
declining yen interest rates. The increase in trading account gains—net was due mainly to an increase in trading
account gains earned by our securities subsidiary related to bonds reflecting a decline in yen interest rate levels
and related to domestic equity securities reflecting an upturn in domestic market conditions. The decrease in87

interest and dividend income was due mainly to a decrease in interest income from domestic loans, which in turnwas due mainly to a decrease in the average yield, reflecting a decline in yen interest rate levels, and a decreasein the average balance. Total expenses increased by ¥108 billion from the previous fiscal year due to an increasein provision for loan losses, offset in part by a decrease in noninterest expenses. The increase in provision forloan losses was due primarily to an increase in allowance for loan losses on non-impaired loans. The decrease innoninterest expenses was due mainly to decreases in general and administrative expenses and salaries andemployee benefits. The decrease in general and administrative expenses was due mainly to our continuous groupwide cost reduction efforts and the decrease in salaries and employee benefits was due mainly to the effect of
decreased employee retirement benefit expenses. In addition, income tax benefit decreased by ¥11 billion fromthe previous fiscal year due mainly to an increase in current income tax expense. As a result, net income in Japan
increased by ¥106 billion. Total assets in Japan increased by ¥2,325 billion due primarily to an increase ininterest-bearing deposits in other banks, offset in part by decreases in investments and trading account assets.
In the Americas, total revenue increased by ¥133 billion due primarily to increases in trading accountgains—net and interest and dividend income. The increase in trading account gains—net was due mainly to anincrease in gains recorded by consolidated VIEs as a result of an improvement in market conditions and anincrease in gains related to change in the fair value of foreign currency-denominated available-for-sale securities
for which the fair value option was elected. The increase in interest and dividend income was due mainly to anincrease in interest income on receivables under resale agreements of our securities subsidiary in the UnitedStates. Total expenses increased by ¥37 billion due primarily to increases in interest expense on payables under
repurchase agreements of our securities subsidiary in the United States and salaries and employee benefits. As aresult, net income in the Americas increased by ¥121 billion. Total assets in the Americas increased by¥5,800 billion due primarily to increases in trading account assets and loans.
In Europe, total revenue decreased by ¥6 billion due primarily to a decrease in interest income onreceivables under resale agreements. Total expenses decreased by ¥55 billion due mainly to a decrease inprovision for loan losses. As a result, net income in Europe increased by ¥47 billion. Total assets in Europe
increased by ¥1,723 billion due primarily to increases in trading account assets and loans.
In Asia/Oceania excluding Japan, and others, total revenue decreased by ¥16 billion due primarily to adecrease in other noninterest income, offset in part by an increase in interest from loans, which in turn was due
mainly to an increase in the average balance. The decrease in other noninterest income was due mainly to adecrease in foreign exchange gains (losses)—net. Total expenses increased by ¥24 billion due mainly toincreases in provision for loan losses and salaries and employee benefits. As a result, net income in Asia/Oceania
excluding Japan, and others decreased by ¥42 billion. Total assets in Asia/Oceania excluding Japan, and others
increased by ¥2,537 billion due primarily to increases in loans and investments.

88Financial Condition
AssetsOur assets as of March 31, 2013 and 2014 were as follows:
As of March 31,
Increase2013
2014(decrease)(in billions of yen)

Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,268 ¥ 1,697 ¥ 429
Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,216
19,037
7,821
Call loans and funds sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
531
468
(63)
Receivables under resale agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,025
8,349
(676)
Receivables under securities borrowing transactions . . . . . . . . . . . . . . . . . . . . .
5,544
5,011
(533)
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34,067
27,408(6,659)Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43,25235,482(7,770)Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69,83373,485
3,652
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(773)
(626)
147
Loans, net of allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due from customers on acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69,060
1,092
102
276
6
64
642
2,602

72,859
1,357
92
264
12
59
405
3,199

3,799
265
(10)
(12)
6
(5)
(237)
597

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥178,747¥175,699¥(3,048)

Total assets decreased by ¥3,048 billion from March 31, 2013 to ¥175,699 billion as of March 31, 2014.
This decrease was due mainly to a decrease of ¥7,770 billion in investments, primarily Japanese government
bonds, and a decrease of ¥6,659 billion in trading account assets, primarily derivative contracts and U.S.
Treasury bonds, offset in part by an increase of ¥7,821 billion in interest-bearing deposits in other banks,
primarily those in the Bank of Japan, and an increase of ¥3,799 billion in loans, net of allowance.

89LoansLoans Outstanding
The following table shows our loans outstanding as of March 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen, except percentages)

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 8,079
Construction and real estate . . . . . . . . . . . . . . . . . . . . .
7,478
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,972
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,356
Transportation and communications . . . . . . . . . . . . . .
3,147
Banks and other financial institutions . . . . . . . . . . . . .
3,143Government and public institutions . . . . . . . . . . . . . . .
6,907
Other industries(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,522
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,976Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,234
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
742

11.5% ¥ 8,026
10.7
7,205
5.7
3,957
7.6
5,351
4.5
3,247
4.5
3,460
9.9
6,734
6.5
4,983
17.1
11,975
16.1
11,1871.0
788

10.9% ¥ (53) (0.6)%
9.8(273) (0.9)
5.4(15) (0.3)
7.3(5) (0.3)
4.4
100 (0.1)
4.7
317 0.2
9.1(173) (0.8)
6.8
461 0.3
16.2(1) (0.9)
15.2(47) (0.9)
1.0
46 0.0Total domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign:
Commercial and industrial . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . .
Other(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54,58078.054,938

74.6

358

(3.4)

10,481
4,089
596
199

15.0
5.8
0.9
0.3

12,938
4,610
883
255

17.6
6.3
1.2
0.3

2,457
521
287
56

2.6
0.5
0.3
0.0

Total foreign . . . . . . . . . . . . . . . . . . . . . . . . .

15,36522.0

18,686

25.4

3,321

3.4

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . .

69,945100.0% 73,624

100.0% 3,679—

Less: Unearned income and deferred loan fees—net . . . . . .

(112)

(139)

(27)

Total loans before allowance for loan losses . . . . . . . . . . . .

¥69,833¥73,485¥3,652Note:(1) “Other industries” within domestic and “other” within foreign include trade receivables and leasereceivables of consolidated variable interest entities.
Total loans before allowance for loan losses increased by ¥3,652 billion from March 31, 2013 to¥73,485 billion as of March 31, 2014. Loans to domestic borrowers increased by ¥358 billion to ¥54,938 billion
due mainly to increases in loans to other industries, including loans to utility industry and those relating toconsolidated variable interest entities, and banks and other financial institutions. The increases were offset in partby decreases in loans to construction and real estate, and government and public institutions.
Loans to foreign borrowers increased by ¥3,321 billion from March 31, 2013 to ¥18,686 billion as ofMarch 31, 2014. The increase in loans to foreign borrowers was due mainly to increases in loans to commercial
and industrial, mainly in Asia, and a roughly equal effect of the translation impact of the depreciation of the yen
against other major currencies.
Within our loan portfolio, the proportion of loans to domestic borrowers against gross total loans decreased
from 78.0% to 74.6% while that of loans to foreign borrowers against gross total loans increased from 22.0% to25.4%.
90

Impaired Loans
General
In accordance with our group’s credit risk management policies, we use an internal rating system thatconsists of credit ratings and pool allocations as the basis of our risk management infrastructure. Credit ratings
consist of obligor ratings which represent the level of credit risk of the obligor, and transaction ratings which
represent the ultimate possibility of incurring losses on individual loan by taking into consideration various
factors such as collateral or guarantees involved. In principle, obligor ratings are applied to all obligors except
those to which pool allocations are applied, and are subject to regular review at least once a year as well as
special review which is required whenever the obligor’s credit standing changes. Pool allocations are applied tosmall balance loans. We pool loans with similar risk characteristics, and the risk is assessed and managed
according to such pools. We generally review the appropriateness and effectiveness of the approach to obligor
ratings and pool allocations once a year in accordance with predetermined procedures. The table below presents
our definition of obligor ratings used by Mizuho Bank and Mizuho Trust & Banking:Obligor category

Obligor rating

Definition

NormalA

Obligors whose certainty of debt fulfillment is very high, hence their level ofcredit risk is very low.
Obligors whose certainty of debt fulfillment poses no problems for theforeseeable future, and their level of credit risk is low.
Obligors whose certainty of debt fulfillment and their level of credit risk pose
no problems for the foreseeable future.
Obligors whose current certainty of debt fulfillment poses no problems,
however, their resistance to future environmental changes is low.
Obligors that require observation going forward because of either minor
concerns regarding their financial position, or somewhat weak or unstablebusiness conditions.
Obligors that require special observation going forward because of problems
with their borrowings such as reduced or suspended interest payments,
problems with debt fulfillment such as failure of principal or interest
payments, or problems with their financial position as a result of their weak or
unstable business condition.
Obligors that are not yet bankrupt but are in financial difficulties and are
deemed likely to become bankrupt in the future because of insufficient
progress in implementing their management improvement plans or othermeasures (including obligors that are receiving ongoing support from financial
institutions).
Obligors that have not yet become legally or formally bankrupt but aresubstantially insolvent because they are in serious financial difficulties and are
deemed to be incapable of being restructured.
Obligors that have become legally or formally bankrupt.

B
C
D
Watch(1)E1

E2Intensive control

F

Substantiallybankrupt

G

Bankrupt

HNote:(1) Special attention obligors are watch obligors with debt in troubled debt restructuring or 90 days or moredelinquent debt, and we consider all such loans impaired.
We consider loans to be impaired when it is probable that we will be unable to collect all the scheduled
payments of principal and interest when due according to the contractual terms of the loan. We classify loans to
special attention, intensive control, substantially bankrupt and bankrupt obligors as impaired loans, and all of our
impaired loans are designated as nonaccrual loans. We do not have any loans to borrowers that cause
management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment
terms for the periods presented other than those already designated as impaired loans. See “Item 11. Quantitativeand Qualitative Disclosures about Market Risk—Credit Risk Management” for descriptions of our selfassessment procedures and our internal credit rating system.
91

Our credit management activities consist of activities such as efforts to provide management consultation to
support borrowers’ business initiatives, to increase the quantity and enhance the quality of loan collateral, and toadjust loan balances to an appropriate level, when the borrower’s credit quality is showing a decline. These
activities can lead to improvements in obligor classifications through improvements in the business and financial
condition of borrowers and, as a result, a reduction in allowance for loan losses.
We endeavor to remove impaired loans from our balance sheet within three years from the time when they
are categorized through methods such as collection, charge-offs, disposal and improving the borrowers’ credit
rating through restructuring efforts.
Loan modifications
Restructuring efforts are made through our various business revitalization support measures conductedbased on requests from borrowers that are in a weakened state that require some form of support. Whenconfronted with the decision of whether to agree to business revitalization support, which includes forgiveness ofdebt (including debt to equity swaps), reductions in stated interest rates to below market levels and postponementof payment of principal and/or interest (other than insignificant extensions), we carefully consider whether it isbeneficial to our shareholders and depositors based on various factors such as whether (i) a legal reorganization
process would significantly damage the obligor’s business value so that there is a fear that the obligor will not beable to restructure its business, (ii) the restructuring plan is appropriate and is economically rational from theviewpoint of minimizing Mizuho’s losses compared to other processes, (iii) both the management andshareholders of the obligor will clearly bear responsibility, and (iv) the allocation of losses among creditors isrational and highly justifiable. The triggers and factors that we review to identify restructured loans are
modifications imposed by law or a court of law and alterations based on agreement with the borrower such as the
reduction of the stated interest rate and forgiveness of debt (including debt to equity swaps), and we consider
restructured loans, with respect to which concessions that it would not otherwise consider were granted to
obligors in financial difficulty, as “troubled debt restructuring.” We consider the relevant obligor to be infinancial difficulty when its rating based on our internal rating system is E2 or below. The types of concessions
that we would not otherwise consider include the various forms of business revitalization support describedabove. In general, troubled debt restructurings will return to non-impaired loans, as well as accrual status, when
we determine that the borrower poses no problems regarding current certainty of debt fulfillment, i.e., theborrower qualifies for a rating of D or above based on our internal rating system. Based on our historicalexperience, it typically takes approximately 1.5 years for the troubled debt restructuring loans in nonaccrual
status to be returned to accrual status.
We determine whether restructured loans other than troubled debt restructurings are impaired loans based on
the application of our internal rating system as we do generally with respect to all obligors. We determine
whether restructured loans are past due or current by comparing the obligors’ payments with the modified
contract terms. The effect of the restructuring on the obligors is considered in developing the allowance based on
the restructuring’s effect on the estimation of future cash flows of such loans. At March 31, 2014, the balance ofrestructurings that are troubled debt restructurings was ¥631 billion, and the balance of restructurings that are nottroubled debt restructurings was ¥186 billion. Also, the amount of charge-offs recorded as a result of troubled
debt restructurings that were made during the fiscal year ended March 31, 2014 was ¥1 billion.
While we maintain basic guidelines covering restructured loans, we do not have any standardized
modification programs. Instead, we apply various modifications as is appropriate for the specific circumstancesof the obligor in question. We do not have a policy that specifically limits the number of modifications that canbe performed for a specific loan.

92

Balance of impaired loans
The following table shows our impaired loans as of March 31, 2013 and 2014 based on classifications bydomicile and industry segment:
As of March 31,
2013
2014
Increase (decrease)
Ratio to grossRatio to grossRatio to gross
Impaired total loans to Impaired total loans to Impaired total loans toloans
industryloans
industryloans
industry(in billions of yen, except percentages)

Domestic:
Manufacturing . . . . . . . . . . . . . . .
Construction and real estate . . . . .
Services . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . .
Transportation andcommunications . . . . . . . . . . . .
Banks and other financial
institutions . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . .

¥ 336
249
90
173

4.2%
3.3
2.3
3.2

¥ 229
138
79
156

2.9%
1.9
2.0
2.9

¥(107)
(111)
(11)
(17)

(1.3)%
(1.4)
(0.3)
(0.3)

59

1.9

48

1.5

(11)

(0.4)

14
5
235

0.4
0.0
2.0

11
1
195

0.3
0.0
1.6

(3)
(4)
(40)

(0.1)
0.0
(0.4)

Total domestic . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . .

1,161
303

2.1
2.0

857
288

1.6
1.5

(304)
(15)

(0.5)
(0.5)

Total impaired loans . . . . . . . . . . .

¥1,4642.1¥1,1451.6¥(319)(0.5)

Impaired loans decreased by ¥319 billion, or 21.8%, from March 31, 2013 to ¥1,145 billion as of March 31,
2014. Impaired loans to domestic borrowers decreased by ¥304 billion due primarily to decreases inmanufacturing and construction and real estate as a result of upgrades and collections related to some borrowers.
Impaired loans to foreign borrowers decreased by ¥15 billion, attributable to declines in almost all regions.
Reflecting the aforementioned change, the percentage of impaired loans within gross total loans decreased
from 2.1% as of March 31, 2013 to 1.6% as of March 31, 2014. The percentage of impaired loans net ofallowance to gross total loans net of allowance decreased from 1.00% as of March 31, 2013 to 0.71% as ofMarch 31, 2014 due to a decrease in impaired loans net of allowance and an increase in gross total loans net ofallowance.
Allowance for Loan Losses
Calculation of allowance for loan losses
Our self-assessment and credit-rating procedures serve as the basis for determining the amount of theallowance for loan losses. The specific methods of calculating the allowance for each category of obligors are as
follows:
Normal and watch obligors . . . . . . . . . . . A formula allowance is calculated separately for obligors with smallbalance, homogeneous loans and for each credit rating category ofcorporate obligors by multiplying the loan balance with the applicable
default ratio (based on internal historical data as well as data provided
by third-party credit rating agencies) and the applicable average
impairment ratio on defaulted loans (based on internal historicaldata).
Special attention obligors . . . . . . . . . . . . The allowance for special attention obligors is generally calculated
individually based on the present value of expected future cash flows
discounted at the loan’s initial effective interest rate. A formula
93

allowance for certain special attention obligors is calculated bygrouping the loans to such obligors and applying the formula
described above for normal and watch obligors but using the default
ratio and average impairment ratio specific to this category.
Intensive control obligors . . . . . . . . . . . . The allowance for intensive control obligors is generally calculated
individually based on the present value of expected future cash flows
discounted at the loan’s initial effective interest rate, based on the
loan’s observable market price, or based on the fair value of thecollateral if the loan is collateral dependent. The allowance for certain
intensive control obligors is calculated by grouping the loans to suchobligors and multiplying the amount of loans less estimated collateralvalue by the default ratio and average impairment ratio specific to thiscategory.
Substantially bankrupt and bankrupt
obligors . . . . . . . . . . . . . . . . . . . . . . . . The allowance is calculated individually and is equal to loan balance,
less estimated collateral value.
Balance of allowance for loan losses
The following table summarizes the allowance for loan losses by component and as a percentage of thecorresponding loan balance as of March 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen, except percentages)

Allowance for loan losses on impaired loans(1) (A) . . . . . . . . . . . . . . . . . . . . .
Allowance for loan losses on non-impaired loans (B) . . . . . . . . . . . . . . . . . . .

¥

406
367

¥

323
303

¥ (83)(64)

Total allowance for loan losses (C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

773

626

(147)

Impaired loans requiring an allowance for loan losses (D) . . . . . . . . . . . . . . .
Impaired loans not requiring an allowance for loan losses (E) . . . . . . . . . . . .
Non-impaired loans(2) (F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,242
222
68,481

958
187
72,479

(284)
(35)
3,998

Gross total loans (G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥69,945¥73,624¥3,679Percentage of allowance for loan losses on impaired loans against thebalance of impaired loans requiring an allowance (A)/(D)x100 . . . . . . . . .
Percentage of allowance for loan losses on non-impaired loans against thebalance of non-impaired loans (B)/(F)x100 . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage of total allowance for loan losses against gross total loans(C)/(G)x100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32.71%

33.72%

1.01%

0.54

0.42

(0.12)

1.11

0.85(0.26)

Notes:(1) The allowance for loan losses on impaired loans includes those for groups of small balance, homogeneousloans totaling ¥505 billion and ¥425 billion as of March 31, 2013 and 2014 which were collectively
evaluated for impairment, in addition to those that were individually evaluated for impairment.
(2) Non-impaired loans refer to loans categorized as “normal obligors” and “watch obligors (excluding special
attention obligors)” under our internal rating system.
Allowance for loan losses decreased by ¥147 billion from March 31, 2013 to ¥626 billion as of March 31,
2014. This decrease was due to a decrease of ¥83 billion in the allowance for loan losses on impaired loans as aresult of a decrease in domestic impaired loans requiring an allowance for loan losses, and a decrease of94¥64 billion in the allowance for loan losses on non-impaired loans. The allowance for loan losses on nonimpaired loans decreased due primarily to upgrades in the obligor categories of a broad range of borrowers
mainly through our credit management activities, including business revitalization support for borrowers,
reflecting the continuing gradual recovery of the Japanese economy as described in “—Overview—Operating
Environment.” As a result, the percentage of total allowance for loan losses against gross total loans decreased by
0.26% to 0.85%, and the percentage of allowance for loan losses on impaired loans against the balance ofimpaired loans requiring an allowance increased by 1.01% to 33.72%.
The primary factors behind the gap between the 19.0% decrease in allowance for loan losses and the 5.3%
increase in the balance of gross total loans in the fiscal year ended March 31, 2014 compared to the previous
fiscal year consisted mainly of the increase in the balance of non-impaired loans and the decrease in allowance
for loan losses both on impaired loans and non-impaired loans due to improvements in our loan portfolio.
In the fiscal year ended March 31, 2014, impaired loans decreased by 21.8% due mainly to a decrease indomestic impaired loans. Allowance for loan losses on impaired loans decreased by 20.5%.
The coverage ratio for impaired loans increased by 1.9% as of March 31, 2014 compared to the previous
fiscal year. This was due to how the percentage decrease in the amount of impaired loans was greater than thepercentage decrease of allowance for loan losses.

95

Provision (credit) for loan losses
The following table summarizes changes in our allowance for loan losses, including a breakdown of chargeoffs and recoveries by domicile and industry segment, in the fiscal years ended March 31, 2013 and 2014:
Fiscal years ended March 31, Increase
2013
2014
(decrease)(in billions of yen)

Allowance for loan losses at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charge-offs:
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total domestic charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recoveries:
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total domestic recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥683
140

¥ 773
(126)

¥ 90
(266)

25
5
10
11
2
17
70
25
95

20
1
3
13
7
13
57
8
65

(5)
(4)
(7)
2
5
(4)
(13)
(17)
(30)

4
8
3
3
1
1

6
5
3
3
3

2
(3)
—
—
2
(1)
1
(1)
—
(6)
(6)
(24)
5
¥(147)

—
4
24
8
32
63
13
¥773

—
1
3
24
2
26
39
18
¥ 626

Note:
(1) “Others” include primarily foreign exchange translation.
We recorded a credit for loan losses of ¥126 billion in the fiscal year ended March 31, 2014 compared to a
provision for loan losses of ¥140 billion in the fiscal year ended March 31, 2013. The change was due primarily
to a decrease in allowance for loan losses on domestic impaired loans as a result of upgrades and collections
related to some borrowers and allowance for loan losses on non-impaired loans reflecting upgrades in the obligor
categories of a broad range of borrowers mainly through our credit management activities, including business
revitalization support for borrowers, reflecting the continuing gradual recovery of the Japanese economy asdescribed in “—Overview—Operating Environment.”
Charge-offs decreased by ¥30 billion from the previous fiscal year to ¥65 billion for the fiscal year ended
March 31, 2014, reflecting decreases in charge-offs of foreign loans and domestic loans. Recoveries decreased by¥6 billion from the previous fiscal year to ¥26 billion in the fiscal year ended March 31, 2014, reflecting adecrease in recoveries on foreign loans.
96Investments
The majority of our investments are available-for-sale securities, which at March 31, 2013 and 2014 were as
follows:
As of March 31,
2013

2014
Increase (decrease)
Net
Net
Net
unrealized
unrealized
unrealized
Amortized Fair
gains
Amortized Fair
gains
Amortized Fair
gains
cost
value
(losses)cost
value(losses)cost
value(losses)(in billions of yen)
Available-for-sale securities:
Debt securities . . . . . . . . . . . . . . . . .
Japanese government bonds . . . . .
Other than Japanese government
bonds . . . . . . . . . . . . . . . . . . . .
Equity securities (marketable) . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .

¥36,127
30,710¥36,275
30,783¥ 148
73¥27,167
22,040¥27,227
22,056

¥

60
16

5,417
1,699

5,492
3,139

75
1,440

5,127
1,668

5,171
3,422

44
1,754

¥37,826¥39,414¥1,588¥28,835¥30,649¥1,814¥(8,960) ¥(9,048)(8,670) (8,727)
(290)
(31)

¥ (88)
(57)

(321)
283

(31)
314

¥(8,991) ¥(8,765)¥226

Available-for-sale securities decreased by ¥8,765 billion from March 31, 2013 to ¥30,649 billion atMarch 31, 2014. This decrease was due primarily to a decrease in Japanese government bonds due to the sales
and redemptions as a result of risk management of our bond portfolio. See note 3 to our consolidated financial
statements included elsewhere in this annual report for details of other investments included within investments.
Cash and Due from Banks
Cash and due from banks increased by ¥429 billion from March 31, 2013 to ¥1,697 billion at March 31,
2014. The increase was due to net cash provided by operating activities of ¥5,951 billion and net cash provided
by investing activities of ¥417 billion offset in part by net cash used in financing activities of ¥5,972 billion.
Liabilities
The following table shows our liabilities as of March 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen)

Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due to trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call money and funds purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under securities lending transactions . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank acceptances outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥100,222
619
6,127
17,451
11,496
6,724
16,769
102
38
14
159
8,802
4,367

¥102,610
742
7,195
16,7986,266
6,024
14,825
92
57
33
160
9,854
4,422

¥ 2,388
123
1,068
(653)
(5,230)(700)(1,944)
(10)
19
19
1
1,052
55

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥172,890¥169,078¥(3,812)

Total liabilities decreased by ¥3,812 billion from March 31, 2013 to ¥169,078 billion at March 31, 2014.
This decrease was due primarily to a decrease of ¥5,392 billion in short-term borrowings and a decrease of97¥1,944 billion in trading account liabilities, primarily derivative contracts, offset in part by an increase of¥2,388 billion in deposits and an increase of ¥1,052 billion in long-term debt. Short-term borrowings include due
to trust accounts, call money and funds purchased, payables under repurchase agreements, payables under
securities lending transactions and other short-term borrowings.
Deposits
The following table shows a breakdown of our deposits as of March 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen)Domestic:
Noninterest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 12,139
74,218¥ 12,751
73,115

Total domestic deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

86,35785,866(491)

Foreign:
Noninterest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

836
13,0291,115
15,629279
2,600

Total foreign deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,865

16,744

2,879

Total deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥100,222¥102,610¥ 2,388¥612(1,103)

Deposits increased by ¥2,388 billion from March 31, 2013 to ¥102,610 billion at March 31, 2014. Domestic
deposits decreased by ¥491 billion from March 31, 2013 to ¥85,866 billion at March 31, 2014. Domestic
noninterest-bearing deposits, mainly from Japanese companies, increased by ¥612 billion to ¥12,751 billion atMarch 31, 2014, and interest-bearing deposits, mainly from individuals, decreased by ¥1,103 billion fromMarch 31, 2013 to ¥73,115 billion at March 31, 2014. The decrease of domestic interest-bearing deposits wasdue mainly to a decrease in certificates of deposit. Foreign deposits increased by ¥2,879 billion from March 31,
2013 to ¥16,744 billion due mainly to the translation impact of the depreciation of the yen against other major
currencies.
Short-term Borrowings
The following table shows a breakdown of our short-term borrowings as of March 31, 2013 and 2014:
As of March 31,
2013
Domestic Foreign—

2014
Increase (decrease)
Domestic Foreign Total Domestic Foreign Total(in billions of yen)
619 ¥ 742 ¥ — ¥ 742 ¥ 123
¥—
¥ 123

Total

Due to trust accounts . . . . . . . . . . . . . . . . . . . . . . . ¥ 619
Call money and funds purchased, and payables
under repurchase agreements and securities
lending transactions . . . . . . . . . . . . . . . . . . . . . 18,222
Other short-term borrowings . . . . . . . . . . . . . . . . .
6,544

¥

Total short-term borrowings . . . . . . . . . . . . . . . . . ¥25,385¥17,032 ¥42,417 ¥20,179

16,852
180¥

35,074
6,724

13,6805,757

16,579267

30,2596,024(4,542)
(787)

(273)
87

(4,815)(700)¥16,846 ¥37,025¥(5,206)¥(186) ¥(5,392)

Short-term borrowings decreased by ¥5,392 billion from March 31, 2013 to ¥37,025 billion at March 31,
2014. Domestic short-term borrowings decreased by ¥5,206 billion due mainly to a decrease in payables under
securities lending transactions and other short-term borrowings. Foreign short-term borrowings decreased by¥186 billion due mainly to a decrease in payables under repurchase agreements.
98Equity
The following table shows a breakdown of equity as of March 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen)

MHFG shareholders’ equity:
Preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income, net of tax . . . . . . . . . . . . . . . . . . .
Treasury stock, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 377 ¥ 313
5,461
5,489
(883)
(538)
778
1,118
(5)
(4)

¥ (64)
28
345
340
1

Total MHFG shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,728
129

6,378
243

650
114

Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥5,857¥6,621¥764

Equity increased by ¥764 billion from March 31, 2013 to ¥6,621 billion due mainly to a decrease inaccumulated deficit and an increase in accumulated other comprehensive income, net of tax.
Preferred stock decreased by ¥64 billion from March 31, 2013 to ¥313 billion at March 31, 2014 as a resultof the cancellation of the thirteenth series class XIII preferred stock of ¥37 billion and the conversion of preferredstock to common stock of ¥27 billion.
Common stock increased by ¥28 billion from March 31, 2013 to ¥5,489 billion at March 31, 2014 primarily
as a result of the issuance of new shares of common stock related to the conversion of preferred stock to common
stock.
Accumulated deficit decreased by ¥345 billion from March 31, 2013 to ¥538 billion at March 31, 2014. Thisdecrease was due to net income attributable to MHFG shareholders for the fiscal year ended March 31, 2014 of¥498 billion offset in part by dividend payments of ¥152 billion.
Accumulated other comprehensive income, net of tax increased by ¥340 billion from March 31, 2013 to¥1,118 billion at March 31, 2014 due to an improvement in pension liability adjustments of ¥136 billion, an
increase in unrealized net gains on available-for-sale securities of ¥128 billion and an improvement in foreign
currency translation adjustments of ¥76 billion.
Treasury stock, at cost, decreased by ¥1 billion from March 31, 2013 to ¥4 billion at March 31, 2014. Thisdecrease was due to cancellation and disposal of treasury stock, offset in part by purchases of treasury stock.
Noncontrolling interests increased by ¥114 billion from March 31, 2013 to ¥243 billion at March 31, 2014.
Liquidity
We continuously endeavor to enhance the management of our liquidity profile and strengthen our capitalbase to meet our customers’ loan demand and deposit withdrawals and respond to unforeseen situations such as
adverse movements in stock, foreign currencies, interest rates and other markets or changes in general domestic
or international conditions. We manage our liquidity profile through the continuous monitoring of our cash flow
situation, the enforcement of upper limits on funds raised in financial markets and other means as further set
forth in “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Market and Liquidity Risk
Management—Liquidity Risk Management Structure.”99

Deposits, based on our broad customer base and brand recognition in Japan, have been our primary sourceof liquidity. Our total deposits increased by ¥2,388 billion, or 2.4%, from the end of the previous fiscal year to¥102,610 billion as of March 31, 2014. Our average balance of deposits for the fiscal year ended March 31, 2014of ¥101,384 billion exceeded our average balance of loans for the same period by ¥29,734 billion. We invested
the excess portion primarily in marketable securities and other high liquidity assets.
Secondary sources of liquidity include short-term borrowings such as call money and funds purchased andpayables under repurchase agreement. We also issue long-term debt, including both senior and subordinated debt,
as additional sources for liquidity. We utilize short-term borrowings to diversify our funding sources and to
manage our funding costs. We raise subordinated long-term debt for the purpose of improving our capital
adequacy ratios, which also enhances our liquidity profile. We believe we are able to access such sources ofliquidity on a stable and flexible basis based on our current credit ratings. The following table shows credit
ratings assigned to our principal banking subsidiaries by S&P and Moody’s as of June 30, 2014:
As of June 30, 2014
S&P

Mizuho Bank . . . . . . . . . . . . . . . . . . . . . .
Mizuho Trust & Banking . . . . . . . . . . . . .

Moody’s

Long-term

Short-termStand-alone
credit profile

A+(1)
A+(1)

A-1
A-1

a
a

Long-term

Short-term

Financialstrength

A1
A1

P-1
P-1

CC-

Note:
(1) Negative outlook.
We source our funding in foreign currencies primarily from corporate customers, foreign governments,
financial institutions and institutional investors, through short-term and long-term financing, under terms andpricing commensurate with our credit ratings above. In the event of future declines in our credit quality or that ofJapan in general, we expect to be able to purchase foreign currencies in sufficient amounts using the yen funds
raised through our domestic customer base. As further measures to support our foreign currency liquidity, wehold foreign debt securities, maintain credit lines and swap facilities denominated in foreign currencies andpledge collateral to the U.S. Federal Reserve Bank to support future credit extensions.
In order to maintain an appropriate level of liquidity, our principal banking subsidiaries hold highly liquid
investment assets such as Japanese government bonds as liquidity reserve assets. We monitor the amount ofliquidity reserve assets and report such amount to the monthly ALM & market risk management committee.
Minimum regulatory reserve amounts, or the reserve amount deposited with the Bank of Japan pursuant toapplicable regulations that is calculated as a specified percentage of the amount of deposits held by our principal
banking subsidiaries, are excluded in connection with our management of liquidity reserve asset levels. We
established and apply classifications for the cash flow conditions affecting the group, including the amount ofliquidity reserve assets, that range from “normal” to “cause for concern” and “critical” categories, and takeappropriate actions based on such conditions. As of March 31, 2014, the balance of Japanese government bonds
included within our investments was ¥22.1 trillion (excluding held-to-maturity securities), and a majority of thisamount, which has historically not fluctuated significantly over the course of a fiscal year, was classified as theprincipal component of liquidity reserve assets.
Capital Adequacy
All yen figures and percentages in this subsection are truncated. Accordingly, the total of each column offigures may not be equal to the total of the individual items.
Regulatory Capital Requirements
Mizuho Financial Group and its principal banking subsidiaries are subject to regulatory capital requirements
administered by the Financial Services Agency in accordance with the provisions of the Banking Act and related100regulations. Failure to meet minimum capital requirements may initiate certain mandatory actions by regulators
that, if undertaken, could have a direct material effect on our financial condition and results of operations.
The capital adequacy guidelines applicable to Japanese banks and bank holding companies withinternational operations supervised by the Financial Services Agency closely follow the risk-adjusted approach
proposed by the Bank for International Settlements (“BIS”) and are intended to further strengthen the soundness
and stability of Japanese banks. Effective March 31, 2007, guidelines were implemented by the Financial
Services Agency to comply with the capital adequacy requirements set by BIS called Basel II. The framework of
Basel II is based on the following three pillars: minimum capital requirements; supervisory review; and market
discipline.
In May 2011, the capital adequacy guidelines were revised by the Financial Services Agency to comply withthe package of measures to enhance the Basel II framework approved by the Basel Committee on Banking
Supervision in July 2009. The revised guidelines include the strengthening of rules governing trading bookcapital and the strengthening of treatment of certain securitizations under the first pillar. The revised guidelines
have been effective since the end of December 2011.
In December 2010, the Basel Committee on Banking Supervision issued the Basel III rules text (later
revised in June 2011 and January 2013), which presents the details of global regulatory standards on bank capital
adequacy and liquidity agreed by the Governors and Heads of Supervision, which is the oversight body of theBasel Committee on Banking Supervision, and endorsed by the G20 Leaders at the Seoul summit inNovember 2010. The rules text sets out higher and better-quality capital, better risk coverage, the introduction ofa leverage ratio as a backstop to the risk-based requirement, measures to promote the build-up of capital that canbe drawn down in periods of stress, and the introduction of two global liquidity standards. The Financial Services
Agency’s revisions to its capital adequacy guidelines became effective from March 31, 2013, which generally
reflect rules in the Basel III rules text that have been applied from January 1, 2013. While the three-pillar
structure of Basel II has been retained, Basel III includes various changes as described further below.
Under the first pillar, the capital ratio is calculated by dividing regulatory capital, or risk-based capital, by
risk-weighted assets. With respect to the calculation of risk-weighted assets, we adopt the advanced internalratings-based approach. Under such approach, balance sheet assets and off-balance sheet exposures, calculated
under Japanese GAAP, are assessed in terms of credit risk according to risk components such as probability ofdefault and loss given default, which are derived from our own internal credit experience. In addition to credit
risk, banks are required to measure and apply capital charges with respect to their market risks. Market risk isdefined as the risk of losses in on- and off-balance-sheet positions arising from movements in market prices.
Operational risk, which was introduced under Basel II with respect to regulatory capital requirements, is the riskof loss resulting from inadequate or failed internal processes, people and systems, or from external events. We
adopt the advanced measurement approach for the measurement of operational risk equivalent by taking accountof the following four elements: internal loss data; external loss data; scenario analysis; and business environment
and internal control factors. Under Basel III, the calculation method of risk-weighted assets was revised,
including modification to the treatment of counterparty credit risk, such as a capital charge for credit valuation
adjustment risk.
With regard to risk-based capital, the guidelines based on Basel III set out higher and better-quality capital
standards compared to those under Basel II. The guidelines based on Basel III require a target minimum standard
capital adequacy ratio of 8%, Tier 1 capital ratio of 6% (phased in at 4.5% in 2013 and 5.5% in 2014) andCommon Equity Tier 1 capital ratio of 4.5% (phased in at 3.5% in 2013 and 4.0% in 2014), on both aconsolidated and non-consolidated basis for banks with international operations, such as Mizuho Bank andMizuho Trust & Banking, or on a consolidated basis for bank holding companies with international operations,such as Mizuho Financial Group.
Risk-based capital, calculated from financial statements prepared under Japanese GAAP, is classified into
the following two tiers: Tier 1 capital; and Tier 2 capital. Tier 1 capital consists of Common Equity Tier 1 capital101and Additional Tier 1 capital. Common Equity Tier 1 capital generally consists of common stock, capital surplus,
retained earnings, accumulated other comprehensive income and other disclosed reserves and others less any
regulatory adjustments. Additional Tier 1 capital generally consists of instruments issued by a bank or its holding
company that meet the criteria for inclusion in Additional Tier 1 capital and others less any regulatory
adjustments. Tier 2 capital generally consists of instruments issued by a bank or its holding company such as
subordinated debt that meet the criteria for inclusion in Tier 2 capital, general reserve for possible losses on loans(equaling the sum of (i) the excess of the amount of qualified reserves over the amount of expected losses and(ii) the amount of general reserves calculated based on the standardized approach) and others less any regulatory
adjustments.
The minimum requirement for Common Equity Tier 1 capital will be raised in phases from 3.5% of riskweighted assets in March 2013 to 4.5% when fully effective in March 2015. Thereafter, a capital conservationbuffer, to be met with Common Equity Tier 1 capital, is expected to be phased in beginning March 2016 at
0.625% until becoming fully effective in March 2019 at 2.5%, although the capital adequacy guidelines related tothe capital conservation buffer have not yet been published by the Financial Services Agency. Thus the Common
Equity Tier 1 capital requirement, including capital conservation buffer, is expected to be 7.0% beginning March
2019. In addition, subject to national discretion by the respective regulatory authorities, a countercyclical buffer
ranging from 0% to 2.5%, consisting of Common Equity Tier 1 capital or other fully loss absorbing capital,
would also be imposed on banking organizations through an extension of the capital conservation buffer when
the relevant national authority judges a period of excess credit growth to be leading to the build-up of systemwide risk. The countercyclical buffer for internationally active banks will be a weighted average of the buffers
deployed across all the jurisdictions to which it has credit exposures. Moreover, capital instruments that will nolonger qualify as Additional Tier 1 capital or Tier 2 capital under Basel III is being phased out beginning March2013 by increments of 10% until becoming fully effective in March 2022. Our existing preferred stock andpreferred securities (the amounts thereof included within Additional Tier 1 capital as of March 31, 2014 being¥1,666.5 billion) and our existing subordinated debt issued before March 2013 (the amounts thereof included
within Tier 2 capital as of March 31, 2014 being ¥1,349.6 billion) are subject to the phase-out arrangements.
In November 2011, the Financial Stability Board announced policy measures to address systemicallyimportant financial institutions (“SIFIs”), which were endorsed by the G20 Leaders at the Cannes summit. The
policy measures include requirements for globally systemically important banks (“G-SIBs”) to have additionalloss absorption capacity tailored to the impact of their default, ranging from 1% to 2.5% of risk-weighted assets,
to be met with Common Equity Tier 1 capital, which would be in addition to the 7.0% Common Equity Tier 1
capital requirement (including capital conservation buffer). The additional loss absorbency requirements will
initially apply to G-SIBs identified in November 2014. The requirements will be phased in starting in January
2016 with full implementation by January 2019. Also in November 2011, the Financial Stability Board identified
an initial group of G-SIFIs, namely 29 G-SIBs, including us, using a methodology developed by the BaselCommittee on Banking Supervision, and announced that the group of G-SIFIs will be updated annually andpublished by the Financial Stability Board each November. In November 2012 and November 2013, the list of
G-SIBs was updated and it showed the allocation to buckets corresponding to their required level of additionalloss absorbency. We were included in the lists and were allocated to the bucket that would require 1.0% ofadditional loss absorbency.
Regulatory adjustments are to be applied mainly to the calculation of Common Equity Tier 1 capital in theform of the deductions and prudential filters related to the following:•

Goodwill and other intangibles•

Deferred tax assets•

Deferred gains or losses on derivatives under hedge accounting that relates to the hedging of items thatare not fair valued on the balance sheet•

Shortfall of the stock of provisions to expected losses under the internal ratings-based approach
102•

Gain on sale related to securitization transactions•

Cumulative gains and losses due to changes in own credit risk on fair valued financial liabilities•

Defined benefit pension fund assets and liabilities•

Treasury stock•

Reciprocal cross holdings of capital of banking, financial and insurance entities•

Investments in the capital of banking, financial and insurance entities that are outside the scope of
regulatory consolidation

Regulatory adjustments will be fully deducted in the calculation of Common Equity Tier 1 capital by March2018. The regulatory adjustments began at 20% of the required deductions in the calculation of Common Equity
Tier 1 capital in March 2014 and will be increased by 20% increments per year through March 2018 when theregulatory adjustments reach 100%. During this transition period, the remainder not deducted from capital willcontinue to be subject to existing national treatments.
The capital requirements and regulatory adjustments will be phased in over a transitional period as follows(italicized percentages indicate those still in transition periods):
March March March March
2013
2014
2015
2016

March
2017

March
2018

March
2019

March
2020

March
2021

March
2022

Minimum Common Equity Tier 1
capital(1) . . . . . . . . . . . . . . . . . . 3.5% 4.0% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%
Minimum Tier 1 capital(1) . . . . . . 4.5% 5.5% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%
Minimum total capital(1) . . . . . . . . 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
Capital conservation buffer . . . . . 0.0% 0.0% 0.0% 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5%
Phase out of recognition of capital
instruments that no longer
qualify as capital(1) . . . . . . . . . . 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
Phase-in of deductions from
capital(1) . . . . . . . . . . . . . . . . . . 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Additional loss absorbency
requirements for G-SIBs . . . . . ———Additional loss absorption capacity tailored to theimpact of the entity’s default, ranging from 1% to2.5% of risk-weighted assets, to be met with Common
Equity Tier 1 capital
Note:(1) While these measures are included in the revisions to capital adequacy guidelines that have been applied
from March 31, 2013 as published by the Financial Services Agency, capital adequacy guidelines related toother requirements under the Basel III rules, such as the capital conservation buffer, countercyclical buffer
and additional loss absorbency requirements for G-SIBs/G-SIFIs, have not yet been published.
Japanese banks are also required to comply with the supervisory review process (second pillar) anddisclosure requirements for market discipline (third pillar). Under the second pillar, banks are required tomaintain adequate capital to support all of the major risks in their business and are encouraged to develop anduse better risk management techniques in monitoring and managing such risks. Under the third pillar, banks are
required to enhance disclosure, including disclosure of details of the capital adequacy ratio, the amount of eachtype of risk and the method of calculation used so that the market may make more effective evaluations. Further,
the revisions to the Financial Services Agency’s guidelines relating to the third pillar, which reflect the enhanced
disclosure requirements under Basel III and became effective on March 31, 2013, require banks to disclose,
among other things, the components of their regulatory capital and the main features of their regulatory capital
instruments in common templates.
103

If the capital adequacy ratio of a financial institution falls below the required level, the Financial Services
Agency may, depending upon the extent of capital deterioration, take certain corrective action, including
requiring the financial institution to submit an improvement plan to strengthen its capital base, reduce its total
assets, restrict its business operations or other actions that could have a material effect on its financial condition
and results of operations.
Unless otherwise specified, the regulatory capital information set forth in this “—Capital Adequacy” isbased on the current Basel III rules.
Consolidated Capital Adequacy Ratios
Our capital adequacy ratios as of March 31, 2013 and 2014, calculated in accordance with Japanese GAAP
and guidelines established by the Financial Services Agency, were as set forth in the following table:
As of March 31,
Increase2013
2014(decrease)(in billions of yen, except percentages)

Common Equity Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 4,803.8
1,683.6¥ 5,304.4
1,540.3¥ 500.5(143.3)Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 2 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,487.4
1,857.0

6,844.7
1,811.2

357.2(45.8)

Total capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 8,344.5¥ 8,655.9¥ 311.4

Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common Equity Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Required Common Equity Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Required Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Required total capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥58,823.5 ¥60,287.4 ¥1,463.8
8.16%
8.79%
0.63%
3.50
4.00
0.50
11.02
11.35
0.33
4.50
5.50
1.00
14.18
14.35
0.17
8.00
8.00
—

Our total capital ratio as of March 31, 2014 was 14.35%, an increase of 0.17% compared to March 31, 2013.
Our Tier 1 capital ratio as of March 31, 2014 was 11.35%, an increase of 0.33% compared to March 31, 2013.
Our Common Equity Tier 1 capital ratio as of March 31, 2014 was 8.79%, an increase of 0.63% compared toMarch 31, 2013. The increases in each ratio were due mainly to an increase in Common Equity Tier 1 capital,
offset in part by a decrease in Additional Tier 1 capital and by an increase in risk-weighted assets. We believethat we were in compliance with all capital adequacy requirements to which we were subject as of March 31,
2014.

104

Capital
The following table shows a breakdown of our total risk-based capital as of March 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen)

Common Equity Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital and stock surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earnings to be distributed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subscription rights to common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income and other disclosed reserves . .
Common share capital issued by subsidiaries and held by third parties . . . .
Instruments and reserves subject to phase-out arrangements . . . . . . . . . . . .
Regulatory adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Tier 1 capital(1)(2)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Tier 1 instruments issued by subsidiaries and held by third
parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eligible Tier 1 capital instruments subject to phase-out
arrangements(1)(2)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Instruments subject to phase-out arrangements . . . . . . . . . . . . . . . . . . . . . .
Regulatory adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥4,803.8 ¥5,304.4 ¥ 500.5
2,987.1
3,051.8
64.7
1,814.3
2,314.7
500.4
(4.6)
(3.8)
0.7
(76.3)(88.0)(11.6)
2.6
3.1
0.4
—
156.2
156.2
11.0
10.8
(0.1)
69.6
61.5
(8.0)
—
(202.1) (202.1)
1,683.6
1,540.3(143.3)
12.0

25.3

13.3

1,874.8(90.3)(112.9)1,666.5(50.8)(100.7)(208.3)
39.5
12.1

Tier 1 capital(1)(2)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,487.4

6,844.7

357.2

Tier 2 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 2 instruments plus related stock surplus issued by special purpose
vehicles and other equivalent entities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 2 instruments issued by subsidiaries and held by third parties . . . . . . .
Eligible Tier 2 capital instruments subject to phase-out arrangements . . . . .
General allowance for loan losses and eligible provisions included inTier 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Instruments and provisions subject to phase-out arrangements . . . . . . . . . .
Regulatory adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,857.0

1,811.2(45.8)—
3.9
1,518.3

154.3
8.1
1,349.6

154.3
4.2(168.7)5.0
503.1(173.4)7.0
474.0(182.0)1.9(29.1)(8.5)

Total capital(1)(2)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥8,344.5¥8,655.9¥ 311.4

Notes:(1) As of March 31, 2014, the outstanding balance of our eleventh series class XI preferred stock was¥312.6 billion. During the period from April 1, 2014 to June 30, 2014, holders of the preferred stock
converted 1,900,000 shares (or ¥1.9 billion) by requesting us to acquire the preferred stock and issuecommon stock to them.
(2) On July 11, 2013, we acquired and subsequently cancelled all ¥36.9 billion of the thirteenth series class XIII
preferred stock.
(3) In June 2014, we redeemed $850.0 million and ¥139.5 billion of non-dilutive preferred securities. The
redemption itself may not necessarily cause a reduction in Tier 1 capital or total capital due to the effect ofphase-out arrangements.
Our Common Equity Tier 1 capital increased by ¥500.5 billion from ¥4,803.8 billion as of March 31, 2013
to ¥5,304.4 billion as of March 31, 2014. The increase was due mainly to an increase in retained earnings as aresult of recording net income for the fiscal year ended March 31, 2014 and to the recording of accumulated
other comprehensive income as of March 31, 2014, offset in part by the application of regulatory adjustments asof March 31, 2014. Our Additional Tier 1 capital decreased by ¥143.3 billion from ¥1,683.6 billion as of105

March 31, 2013 to ¥1,540.3 billion as of March 31, 2014. The decrease was due mainly to the effect of the phaseout of recognition of eligible Tier 1 capital instruments subject to phase-out arrangements. As a result, our Tier 1
capital increased by ¥357.2 billion from ¥6,487.4 billion as of March 31, 2013 to ¥6,844.7 billion as ofMarch 31, 2014.
Non-dilutive preferred securities issued by our overseas special purpose companies to investors are included
within Additional Tier 1 capital and subject to phase-out arrangements. As of March 31, 2014, the outstandingbalance of these securities was ¥1,718.7 billion. Although such non-dilutive preferred securities are perpetual interm, they are redeemable at our option, subject to prior approval from regulatory authorities, on, and on
specified dates after, the relevant initial optional redemption date. The following table shows the initial optional
redemption dates for the non-dilutive preferred securities included within our Additional Tier 1 capital as ofMarch 31, 2014 and the total outstanding balance of non-dilutive preferred securities with each such initial
optional redemption date. The non-dilutive preferred securities are denominated in yen, unless otherwise noted.

Initial optional redemption date

Outstanding balance of non-dilutive
preferred securities included
within Additional Tier 1 capital(in billions of yen)

June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥226.9(1)452.5
461.7(2)
274.5
303.0

Notes:(1) In June 2014, we redeemed all ¥226.9 billion of such non-dilutive preferred securities, denominated in yen(¥139.5 billion) and dollars ($850.0 million).
(2) Denominated in yen (¥400.0 billion) and dollars ($600.0 million).
Our Tier 2 capital as of March 31, 2014 was ¥1,811.2 billion, a decrease of ¥45.8 billion compared toMarch 31, 2013. The decrease was due mainly to the effect of the phase-out of recognition of eligible Tier 2
capital instruments subject to phase-out arrangements, offset in part by a new issuance of dated subordinatedbonds that are Basel III-eligible Tier 2 capital instruments in March 2014.
As a result of the above, total capital as of March 31, 2014 was ¥8,655.9 billion, an increase of¥311.4 billion compared to March 31, 2013.
Risk-weighted Assets
The following table shows a breakdown of our risk-weighted assets as of March 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen)

Risk-weighted assets:
Credit risk assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market risk equivalent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operational risk equivalent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥53,590.7
2,379.7
2,853.0¥54,082.0
2,919.0
3,286.3¥ 491.3
539.2
433.3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥58,823.5¥60,287.4¥1,463.8

Risk-weighted assets as of March 31, 2014 were ¥60,287.4 billion, an increase of ¥1,463.8 billion comparedto March 31, 2013. Credit risk assets increased by ¥491.3 billion to ¥54,082.0 billion due mainly to a rise in stock106

prices in Japan, offset in part by an improvement in our loan asset portfolio. Market risk equivalent assets
increased by ¥539.2 billion to ¥2,919.0 billion. Operating risk equivalent assets increased by ¥433.3 billion to¥3,286.3 billion.
Principal Banking Subsidiaries
Capital adequacy ratios of our principal banking subsidiaries, on a consolidated basis, as of March 31, 2013
and 2014, calculated in accordance with Japanese GAAP and guidelines established by the Financial Services
Agency, were as set forth in the following table:
As of March 31,
2013
2014

Mizuho Bank(1)Common Equity Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Trust & Banking
Common Equity Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Increase(decrease)— % 10.11%
—
12.25
—
15.36
13.24
13.24
17.21

14.76
14.76
17.80

— %
—
—
1.52
1.52
0.59

Note:
(1) The former Mizuho Bank and the former Mizuho Corporate Bank merged on July 1, 2013 with the former
Mizuho Corporate Bank as the surviving entity, which was renamed Mizuho Bank upon the merger.
Capital adequacy ratios of the former Mizuho Corporate Bank and the former Mizuho Bank as of March 31,
2013 were as set forth in the following table:
As ofMarch 31, 2013

The former Mizuho Corporate Bank(1)Common Equity Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The former Mizuho Bank(2)(3)
Common Equity Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.65%
11.03
13.89
8.90
10.13
14.08

Notes:(1) The distribution of all of the shares of Mizuho Securities to Mizuho Financial Group as a dividend in kind(¥424.4 billion) on April 1, 2013 was deducted from Common Equity Tier 1 capital.
(2) The ratios were calculated in accordance with Basel III and are included for reference purpose only because
the former Mizuho Bank was subject to Basel II requirements as of March 31, 2013 as a financial institution
without overseas operations to which only domestic capital adequacy requirements applied.
(3) The distribution of all of the shares of Mizuho Securities to Mizuho Financial Group as a dividend in kind(¥125.7 billion) on April 1, 2013 was deducted from Common Equity Tier 1 capital.
We believe each of our principal banking subsidiaries was in compliance with all capital adequacy
requirements to which it was subject as of March 31, 2014.
Our securities subsidiaries in Japan are also subject to the capital adequacy requirement under the Financial
Instruments and Exchange Act. Under this requirement, securities firms must maintain a minimum capital
adequacy ratio of 120% calculated as a percentage of capital accounts less certain assets, as determined in107accordance with Japanese GAAP, against amounts equivalent to market, counterparty and basic risks. Specificguidelines are issued as a ministerial ordinance that details the definition of essential components of the capitalratios, including capital, disallowed assets and risks, and related measures. Failure to maintain a minimum capitalratio will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for regulatory reporting
and a capital ratio of less than 100% may lead to a temporary suspension of all or part of the business operations
and further, to the cancellation of the license to act as a securities broker and dealer. We believe, as of March 31,
2014, that our securities subsidiaries in Japan were in compliance with all capital adequacy requirements towhich they were subject.
Off-balance-sheet Arrangements
We engage in various types of off-balance-sheet arrangements in the ordinary course of our business to meetthe financing needs of our customers. These arrangements include various guarantees and commitments. The
following tables show the contractual or notional amounts of our guarantees and undrawn commitments as ofMarch 31, 2013 and 2014:
As of March 31,
Increase2013
2014(decrease)(in billions of yen)

Guarantees:
Performance guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,750 ¥ 1,985
Guarantees on loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
452
399
Guarantees on securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
146
170
Other guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,068
1,249
Guarantees for the repayment of trust principal . . . . . . . . . . . . . . . . . . . . . . .
171
158
Liabilities of trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,606
11,158Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,582
21,422

¥

235
(53)
24
181
(13)
2,552
(2,160)

As of March 31,
Increase2013
2014(decrease)(in billions of yen)

Commitments:
Commitments to extend credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥59,101
608¥59,402
611

¥

301
3

Total commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥59,709¥60,013¥304

See note 23 to our consolidated financial statements included elsewhere in this annual report for a
description of the nature of the various types of guarantees and commitments.
The contractual or notional amounts of these instruments generally represent the maximum potential
amounts of future payments without consideration of possible recoveries under recourse provisions or fromcollateral held. For example, the amount under commitments to extend credit does not necessarily equal theimpact that such commitment will have on our future cash flow, because many of these commitments expire
without our making actual credit extensions up to the full commitment amount or at all. Also, many of theagreements related to the commitments to extend credit include terms that allow us to refuse, or reduce theamount of, credit extensions based on changes in the financial environment, declines in the obligor’s credit
quality and other reasons. Finally, we receive collateral such as real estate and securities at the time of contract as
we deem necessary, and we regularly review the credit quality of the customer based on internal guidelines andrevise the terms of the contract as we deem necessary to manage credit risk.

108

Some of our off-balance-sheet arrangements are related to activities of special purpose entities, most ofwhich are variable interest entities, including those that do not meet the consolidation requirements under
ASC 810, “Consolidation” (“ASC 810”). These off-balance-sheet arrangements include the types of transactions
discussed below.
Asset-backed Commercial Paper/Loan Programs
We manage several asset-backed commercial paper/loan programs that provide our clients’ off-balancesheet and/or cost-effective financing. The variable interest entities used in the programs purchase financial assets,
primarily receivables, from clients participating in the programs and provide liquidity through the issuance ofcommercial paper or borrowings from us backed by the financial assets. While customers normally continue toservice the transferred receivables, we underwrite, distribute, and make a market in commercial paper issued by
the conduits. We typically provide program-wide liquidity and credit support facilities and, in some instances,financing to the variable interest entities. We have the power to determine which assets will be held in thevariable interest entities and have an obligation to monitor these assets. We are also responsible for liability
management. In addition, through the liquidity and credit support facilities with the variable interest entities, wehave the obligation to absorb losses that could potentially be significant to the variable interest entities.
Therefore, we consolidate this type of variable interest entities.
Asset-backed Securitizations
We act as an arranger of various types of structured finance to meet clients’ off-balance-sheet financing
needs. In substantially all of these structured financing transactions, the transfer of the financial asset by theclient is structured to be bankruptcy remote by use of a bankruptcy remote entity, which is deemed to be avariable interest entity because its equity holder does not have decision making rights. We receive fees forstructuring and/or distributing the securities sold to investors. In some cases, we ourselves purchase the securities
issued by the entities and/or provide loans to the variable interest entities.
In addition, we establish several single-issue and multi-issue special purpose entities that issue collateralized
debt obligations or collateralized loan obligations, synthetic collateralized debt obligations or collateralized loan
obligations or other repackaged instruments to meet clients’ and investors’ financial needs. We also arrange
securitization transactions including commercial mortgage-backed securities, residential mortgage-backed
securities and others. In these transactions, we act as an underwriter, placement agent, asset manager, derivatives
counterparty, and/or investor to debt and equity instruments.
In certain variable interest entities, where we provide liquidity and credit support facilities, write credit
protection or invest in debt or equity instruments in our role as an arranger, servicer, administrator or asset
manager, etc., we have the power to determine which assets will be held in the variable interest entities or to
manage and monitor these assets. In addition, through the variable interests above, we have the obligation toabsorb losses and the right to receive benefits that could potentially be significant to the variable interest entities.
Therefore, we consolidate such variable interest entities.
We established certain variable interest entities to securitize our own mortgage loans. We provide servicing
for, hold retained subordinated beneficial interests in, and retain credit exposure in the form of guarantees in themortgage loans. In our role as a servicer, we have the power to direct the entity’s activities that most significantly
impact the entity’s economic performance by managing defaulted mortgage loans. In addition, through theretained interests and the involvement as a guarantor above, we have the obligation to absorb losses and the rightto receive benefits that could potentially be significant to the entity. Therefore, we consolidate such variableinterest entities.
Investments in Securitization Products
We invest in, among other things, various types of collateralized debt obligations and collateralized loan
obligations, synthetic collateralized debt obligations and collateralized loan obligations and repackaged
109

instruments, commercial mortgage-backed securities and residential mortgage-backed securities arranged bythird parties for the purpose of generating current income or capital appreciation, which all utilize entities that are
deemed to be variable interest entities. By design, such investments were investment grade at issuance and heldby a diverse group of investors. The potential loss amount of securities and loans is generally limited to theamount invested because we have no contractual involvement in such variable interest entities beyond ourinvestments. Since we are involved in those variable interest entities only as an investor, we do not ordinarily
have the power to direct the variable interest entities’ activities that most significantly impact the variable interest
entities’ economic performance. However, we consolidate variable interest entities where the transactions are
tailored by the third party arrangers to meet our needs as a main investor who is ultimately deemed to have thepower to determine which assets to be held in the variable interest entities. We also invest in certain beneficial
interests issued by variable interest entities which hold real estate that we utilize. In addition to these variableinterests, when we have the power including the sole unilateral ability to liquidate variable interest entities, weconsolidate such variable interest entities.
Investment Funds
We invest in various investment funds including securities investment trusts, which collectively invest in
equity and debt securities that include listed Japanese securities and investment grade bonds. Investment advisory
companies or fund management companies, including our subsidiaries and affiliates, administer and makeinvestment decisions over such investment funds. We consolidate certain investment funds where we are deemed
to be the primary beneficiary. We have determined that certain investment vehicles managed by us that have all
the attributes of an investment company (or similar entity) qualify for the deferral from certain requirements of
ASC 810 that originated from SFAS No.167, “Amendments to FASB Interpretation No.46(R)” (“SFAS
No.167”). Therefore, for these vehicles, we determine whether we are the primary beneficiary by evaluating
whether we absorb a majority of expected losses, receive a majority of expected residual returns, or both.
Trust Arrangements
We offer a variety of asset management and administration services under trust arrangements including
security investment trusts, pension trusts and trusts used in the securitization of assets originated by andtransferred to third parties. We receive trust fees for providing services as an agent or fiduciary on behalf ofbeneficiaries.
With respect to guaranteed principal money trust products, we assume certain risks by providing guarantees
for the repayment of principal as required by the trust agreements or relevant Japanese legislation. We manage
entrusted funds primarily through the origination of high quality loans and other credit-related products,
investing in investment grade marketable securities such as Japanese government bonds and placing cash with
our subsidiary trust banks. We have the power to determine which assets will be held in the variable interest
entities or to manage these assets. In addition, through the principal guarantee agreement, we have the obligation
to absorb losses that could potentially be significant to the variable interest entities. Therefore, we consolidate
this type of variable interest entities. However, we do not consolidate certain guaranteed principal money trusts,
which invest all the entrusted funds in ourselves, as we have determined that we have no variable interests.

110Significant Unconsolidated Variable interest entities
The tables below summarize our involvement in significant unconsolidated variable interest entities as ofMarch 31, 2013 and 2014:
Significant unconsolidated
variable interest entities
Maximum
Total assets exposure to loss
(in billions of yen)

As of March 31, 2013

Asset-backed commercial paper/loan programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset-backed securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in securitization products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust arrangements and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ —
463
530
2,770
—

¥—
37
206
302
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,763¥545

Significant unconsolidated
variable interest entities
Maximum
Total assets exposure to loss
(in billions of yen)

As of March 31, 2014

Asset-backed commercial paper/loan programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset-backed securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in securitization products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust arrangements and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ —
385
531
2,935
—

¥—
39
200
387
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,851¥626

Asset-backed commercial paper/loan programs include multi-seller programs managed by us, under which
the related variable interest entities purchase various types of assets from our clients, consisting mainly ofaccounts and notes receivables as well as credit card receivables, auto loans, leases and other receivables. Our
involvement with variable interest entities for multi-seller programs is generally more significant than other typesof variable interest entities in terms of liquidity support and credit enhancement obligations. All of the variableinterest entities for our asset-backed commercial paper/loan programs to which we provided liquidity support orcredit enhancements were consolidated variable interest entities as of March 31, 2014.
Other Types of Off-balance-sheet Arrangements
See note 25 to our consolidated financial statements included elsewhere in this annual report for further
descriptions of variable interest entities and securitizations.

111

Tabular Disclosure of Contractual Obligations
In the normal course of business, we enter into contractual obligations that require future cash payments.
The following table sets forth a summary of our contractual cash obligations as of March 31, 2014:
Due in one
year or lessDue from
one year to
two years

Due from
Due from
Due from
two years to three years to four years to
three years
four years
five years(in billions of yen)Time deposits . . . . . . . . . . .
Certificates of deposit . . . .
Long-term debt . . . . . . . . . .
Capitalized leases . . . . . . . .
Operating leases . . . . . . . . .

¥33,606
12,7461,222
6
48¥1,931
10
1,191
6
40

¥1,254
—
1,777
5
36

¥ 344
—
1,025
4
31

Total(1)(2) . . . . . . . . . . .

¥47,628¥3,178¥3,072¥1,404Due after
five years

Total

¥415
—
484
4
29

¥ 134
—
4,155
2
75

¥37,684
12,756
9,854
27
259

¥932

¥4,366¥60,580

Notes:(1) A contribution paid to our pension plans, which is not included in the above table, is expected to beapproximately ¥49 billion in the fiscal year ending March 31, 2015, based on the current funded status andexpected asset return assumptions. For further information, see note 20 to our consolidated financial
statements included elsewhere in this annual report.
(2) The amount of unrecognized tax benefits, which is not included in the above table, was ¥1.7 billion, of
which ¥0.7 billion was interest and penalties, at March 31, 2014. For further information, see note 19 to ourconsolidated financial statements included elsewhere in this annual report.
Recent Accounting Pronouncements
See note 2 to our consolidated financial statements included elsewhere in this annual report.

112

Reconciliation with Japanese GAAP
Our consolidated financial statements are prepared in accordance with accounting principles and policies assummarized in note 1 to our consolidated financial statements included elsewhere in this annual report. These
principles and policies differ in some respects from Japanese GAAP. Under Japanese banking regulations, we are
required to report our annual financial results using financial statements prepared under Japanese GAAP. In
addition, pursuant to the requirements of the Tokyo Stock Exchange, we prepare quarterly financial statements
which are also under Japanese GAAP. To show the major reconciling items between our U.S. GAAP financial
statements and our Japanese GAAP financial statements, we have provided below, with respect to our mostrecent fiscal year, a reconciliation of consolidated net income and shareholders’ equity under U.S. GAAP withthose amounts under Japanese GAAP.
As of and for the fiscal
year ended March 31, 2014
Net income
Total MHFG
attributableshareholders’to MHFGequityshareholders(in billions of yen)

U.S. GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Differences arising from different accounting for:1. Derivative financial instruments and hedging activities . . . . . . . . . . . . . . . . . .
2. Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Allowances for loan losses and off-balance-sheet instruments . . . . . . . . . . . . .
5. Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Real estate sales and leasebacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Land revaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. Business combinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Pension liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Consolidation of variable interest entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11. Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥6,378.4¥498.557.7(40.8)
161.0
70.5(31.4)
4.0
177.5
12.3
(9.8)
(1.7)
(354.3)
37.0

170.3
4.8
12.0
(24.8)
7.1
(6.6)
(4.5)
(13.9)(15.6)
(7.1)
11.2
57.0

Japanese GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥6,460.4¥688.4

The following is a summary of the significant adjustments made to consolidated shareholders’ equity andnet income, as shown in the above table, to reconcile the U.S. GAAP results with the Japanese GAAP results.
The paragraphs below refer to the corresponding items set forth in the table above.
1.

Derivative financial instruments and hedging activities

Under U.S. GAAP, for a derivative to qualify for hedge accounting, it must be highly effective in achieving
offsetting changes in fair values or variable cash flows of the hedged items attributable to the particular risk
being hedged. The hedging relationship must be designated and formally documented at inception. Suchdocumentation must include the particular risk management objective and strategy for the hedge, theidentification of the derivative used as the hedging instrument, the hedged item and the risk exposure being
hedged and the method for assessing the hedge effectiveness. The criteria for designation and measurement ofhedge effectiveness under U.S. GAAP are more rigorous than under Japanese GAAP. As a result, most of theeligible hedge derivatives under Japanese GAAP are accounted for as trading account assets or liabilities under
U.S. GAAP with changes in fair value of the derivatives recognized in earnings.
Requirements for bifurcation of embedded derivatives differ between Japanese GAAP and U.S. GAAP.
Embedded derivatives that are deemed to be clearly and closely related to their host contracts are not bifurcatedunder U.S. GAAP, while Japanese GAAP allows an entity to bifurcate embedded derivatives if the entity113manages the risk of the embedded derivatives and host contracts separately. Bifurcated derivatives are recordedon the balance sheet at fair value with changes in fair value recognized in earnings under both Japanese GAAP
and U.S. GAAP.
2.

Investments

The cost basis of certain investments differs between Japanese GAAP and U.S. GAAP primarily due to thefollowing reasons:Certain sales and subsequent repurchases of available-for-sale securities under Japanese GAAP do not meetsales criteria under U.S. GAAP. These sales and subsequent repurchases resulted in realized gains or losses being
recognized in earnings under Japanese GAAP. Under U.S. GAAP, these gains or losses are recognized as
unrealized gains or losses within accumulated other comprehensive income, net of tax.
Under U.S. GAAP, declines in the fair value of available-for-sale securities below cost that are deemed tobe “other-than-temporary” are recorded in earnings. Both quantitative and qualitative factors are considered todetermine whether the impairment is “other-than-temporary,” including the duration and extent of the decline,
near-term prospects of the issuer, as well as our ability and intent to hold the investments until a forecasted
recovery of fair value or maturity. Regarding debt securities, we consider additional factors such as whether wehave the intent to sell or more likely than not will be required to sell before recovery to determine whether the
impairment is “other-than-temporary.” Under Japanese GAAP, significant declines in the fair value of securities
below cost that are deemed to be “other-than-temporary” are recorded in earnings unless short term recovery isreasonably expected. A decline in the fair value of a security of 50% or more of its cost is a strong indicator of another-than-temporary decline, which requires compelling evidence to prove otherwise. A decline in the fair valueof 30% or more but less than 50% of its cost is an indicator of an other-than-temporary decline in which case theprobability of recovery must be evaluated to determine whether an other-than-temporary decline has occurred.
Generally, if the decline in the fair value is less than 30%, it is not considered to be an other-than-temporary
decline.
Under U.S. GAAP, the election of the fair value option for financial assets and liabilities is permitted
according to ASC 825, while it is not permitted under Japanese GAAP. As we elected the fair value option forforeign currency denominated available-for-sale securities under U.S. GAAP, these securities were reclassified
as trading securities and the entire amount of changes in their fair values are recognized in earnings, while underJapanese GAAP, only the changes attributable to movements in foreign currency exchange rates are recognizedin earnings.
Reconciliation amounts for investments in the above table are presented net of taxes.
3.

Loans

Under U.S. GAAP, loan origination fees, net of certain direct origination costs, are deferred and recognized
in interest income over the contractual life of the relevant loan using the interest method, while certain fees andcosts are recognized in earnings at the time the loan is originated under Japanese GAAP.
In addition, certain loan participations and sales of loans to special purpose vehicles in connection with asset
securitization transactions under Japanese GAAP do not meet sales criteria under U.S. GAAP due to different
applicable criteria, and therefore the relevant loans are recognized on the balance sheet under U.S. GAAP.
4.

Allowances for loan losses and off-balance-sheet instruments

Under both Japanese GAAP and U.S. GAAP, the allowance for loan losses for specifically identified
impaired loans is based on the present value of expected future cash flows discounted at the loan’s initialeffective interest rate or, as a practical expedient, the loan’s observable market price or the fair value of the114

collateral if the loan is collateral dependent. For certain impaired loans that are aggregated for the purpose ofmeasuring impairment, pools of smaller balance homogeneous loans and other non-homogeneous loans that havenot been identified as impaired, the allowance for loan losses is determined based on a formula allowance
utilizing historical loss factors, as adjusted, considering recent trends.
The differences between Japanese GAAP and U.S. GAAP arise from the difference in the scope of the loansthat are subject to the individual and portfolio impairment analysis. In addition to these effects based on
differences between Japanese GAAP and U.S. GAAP, provision (credit) for loan losses may differ between
Japanese GAAP and U.S. GAAP due to the difference in the timing of accounting closings between ourconsolidated financial statements under U.S. GAAP and those under Japanese GAAP.
This reconciling item also includes the differences between U.S. GAAP and Japanese GAAP relating to theallowance for off-balance-sheet instruments. We generally use the same methodology to reserve for losses onthese instruments as we do for loans.
5.

Premises and equipment

Under U.S. GAAP, the fair value of a non-monetary asset acquired in exchange for another non-monetary
asset is generally deemed to be the new cost of the asset acquired in the exchange, and a gain or loss isrecognized on the exchange. Under Japanese GAAP, the cost of the asset surrendered is assigned to the newly
acquired asset in certain types of exchange transactions, resulting in no gains or losses. In addition, the differencein carrying value of assets acquired in a non-monetary exchange results in a difference in the depreciation
schedule between U.S. GAAP and Japanese GAAP.
6.

Real estate sales and leasebacks

Our principal banking subsidiaries entered into sale and leaseback transactions in prior years with respect toland and buildings used as their headquarters. Each sale of such real estate is accounted for as a sale underJapanese GAAP with profits on the sale recorded in earnings. Under U.S. GAAP, the profits are deferred andamortized within the respective lease periods as the subsidiaries continue to occupy the buildings under operatingleases.
7.

Land revaluation

Under Japanese GAAP, we revalued our holdings of land during the fiscal year ended March 31, 1998
pursuant to the Act Concerning Revaluation of Land (Act No. 34 of 1998). The revaluation gains are recorded
directly in equity, and the related deferred tax liabilities are also recognized. Under U.S. GAAP, there is no
applicable provision that allows for the revaluation of land other than for impairments, and accordingly therevaluation gains are reversed.
8.

Business combinations

Under U.S. GAAP, goodwill is not amortized and an impairment loss is recorded to the extent the carrying
amount of the goodwill exceeds its estimated fair value at the measurement date. Under Japanese GAAP,
goodwill is amortized over an appropriate period not to exceed 20 years and an impairment loss is recorded only
if the effects of the goodwill are no longer expected.
Under Japanese GAAP, goodwill is recognized on a step-by-step basis, with the purchase of additional
ownership interests in a subsidiary being accounted for in accordance with the requirements of businesscombination accounting. Under U.S. GAAP, a change in the parent’s ownership interest in a subsidiary where theparent retains a controlling financial interest in the subsidiary is accounted for as an equity transaction.
115

9.

Pension liabilities

Under Japanese GAAP, we adopted as of April 1, 2000 pension accounting that is based on the actuarial
present value of accrued benefit obligations. The cumulative effect of the accounting change was amortized overa specified number of years, and actuarial gains and losses are amortized over a specified number of years. Under
U.S. GAAP, we recalculated the benefit obligation at April 1, 2004 and accounted for the obligation as if we had
adopted the accounting method in accordance with ASC 715, “Compensation—Retirement Benefits,” beginningin the fiscal year ended March 31, 1990, as permitted for a foreign private issuer. The cumulative effect of theaccounting change, as well as actuarial gains and losses since the adoption, had been fully amortized by April 1,
2004.
Under both Japanese GAAP and U.S. GAAP, an employer is required to recognize the overfunded orunderfunded status of a defined benefit plan as an asset or liability in its consolidated balance sheets. Actuarial
gains or losses and prior service costs or benefits that have not yet been recognized through earnings as net
periodic benefit cost are recognized in other comprehensive income, net of tax, until they are amortized as acomponent of net periodic benefit cost. They are amortized based on corridor approach according to ASC715
under U.S. GAAP, while they are amortized over a specified number of years under Japanese GAAP. Due mainly
to the differences in the balances of actuarial gains or losses and prior service costs or benefits and inamortization methods, there are differences in the amounts of shareholders’ equity and net income between U.S.
GAAP and Japanese GAAP. See note 20 to our consolidated financial statements included elsewhere in thisannual report for further discussion.
10.

Consolidation of variable interest entities

Under U.S. GAAP, variable interest entities are to be consolidated if we are deemed to be the primary
beneficiary of the variable interest entity. Under Japanese GAAP, consolidation is not based on variable interests.
We consolidate certain variable interest entities, such as entities related to asset-backed securitizations,investments in securitization products and investment funds. See note 25 to our consolidated financial statements
included elsewhere in this annual report for further discussion.
11.

Deferred taxes

Under U.S. GAAP, all available evidence, both positive and negative, must be considered to determine
whether, based on the weight of that evidence, deferred tax assets are realizable or whether a valuation allowanceis needed. Possible sources of taxable income, which are considered to determine whether deferred tax assets are
realizable, include unrealized gains on available-for-sale securities. The sources also include tax planning
strategies that are prudent and feasible. Under Japanese GAAP, the assessment as to whether deferred tax assets
are realizable is primarily based on estimates of future taxable income.
Additionally, differences in the carrying amount of assets and liabilities between U.S. GAAP and Japanese
GAAP create temporary differences that result in differences in deferred tax assets and liabilities.
12.

Other

This adjustment reflects the effects of miscellaneous items including the effects of foreign exchange rate
fluctuations.

116

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

6.A. Directors and Senior Management
Directors and Corporate Auditors
The following table provides information regarding our directors as of June 30, 2014:
Name(date of birth)

Current positions andprincipal outside positions

Yasuhiro Sato
(Apr. 15, 1952)

Director
President & Group CEO(Representative
Executive Officer)
Director of Mizuho Bank,
Ltd.

Business experience

Mar. 2003 Executive Officer / SeniorCorporate Officer ofInternational Banking Unit of
the former Mizuho Corporate
Bank, Ltd.
Apr. 2004

Expiration ofcurrent term
as director

June 2015

Managing Executive Officer

Director of Mizuho Trust& Banking Co., Ltd.

Mar. 2006 Managing Director / Head ofCorporate Banking Unit

Director of Mizuho
Securities Co., Ltd.

Apr. 2007

Deputy President / Chief Auditor

Apr. 2009

President & CEO (until July 2013)

June 2009

Director of Mizuho Financial
Group, Inc.

June 2011

Director of the former Mizuho
Bank, Ltd.
President & Group CEO of
Mizuho Financial Group, Inc.
(current)

July 2013

President & CEO of Mizuho
Bank, Ltd.

Apr. 2014

Director (current)
Director of Mizuho Trust &Banking Co., Ltd. (current)
Director of Mizuho Securities Co.,
Ltd. (current)

Yasunori Tsujita(June 28, 1956)

Director
Deputy President &Executive Officer(Representative
Executive Officer)
Head of Internal Control(Risk Management,
Human Resources andCompliance)

Apr. 2009

Executive Officer / General
Manager of Personal Marketing
Division of the former Mizuho
Bank, Ltd.

Apr. 2011

Managing Executive Officer /General Manager of PersonalMarketing Division

June 2011

Managing Executive Officer

117

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Head of ComplianceGroup (Group COO)

Business experience

Apr. 2012

Deputy President ofMizuho Bank, Ltd.

Managing Executive Officer / In
charge of Strategic PlanningGroup of Mizuho Financial
Group, Inc.
Managing Executive Officer / In
charge of Strategic PlanningGroup of the former Mizuho
Bank, Ltd.
Managing Executive Officer / In
charge of Strategic PlanningGroup of the former Mizuho
Corporate Bank, Ltd.

Apr. 2013

Deputy President & Executive
Officer / Head of Human
Resources Group and Head ofInternal Audit Group of Mizuho
Financial Group, Inc.
Deputy President & Executive
Officer / Head of Human
Resources Group of the former
Mizuho Bank, Ltd. (until July
2013)
Deputy President & Executive
Officer / Head of Human
Resources Group of the former
Mizuho Corporate Bank, Ltd.
(until July 2013)
Managing Executive Officer / In
charge of Human ResourcesGroup of Mizuho Trust &Banking Co., Ltd. (until Apr.
2014)
Managing Executive Officer / In
charge of Human ResourcesGroup of Mizuho Securities
Co., Ltd. (until Apr. 2014)

June 2013

Deputy President / Head of
Human Resources Group andHead of Internal Audit Group of
Mizuho Financial Group, Inc.
(until Apr. 2014)

July 2013

Deputy President & Executive
Officer / Head of Human
Resources Group of Mizuho
Bank, Ltd.

118

Expiration ofcurrent term
as director

Name(date of birth)

Current positions andprincipal outside positions

Business experience

Sep. 2013

Expiration ofcurrent term
as director

Deputy President & Executive
Officer / Head of Human
Resources Group and Head ofCompliance Group

Nov. 2013 Deputy President / Head of
Human Resources Group andHead of Compliance Group
Apr. 2014

Deputy President / Head ofInternal Control (RiskManagement, Human
Resources and Compliance) andHead of Compliance Group of
Mizuho Financial Group, Inc.
Deputy President / Head ofCompliance Group of Mizuho
Bank, Ltd. (current)

June 2014

Ryusuke Aya(May 20, 1960)

Director, Deputy President &Executive Officer / Head ofInternal Control (RiskManagement, Human
Resources and Compliance) andHead of Compliance Group of
Mizuho Financial Group, Inc.
(current)

Director
Managing Executive
Officer

Nov. 2007 Joint General Manager of Sydney
Branch of the former Mizuho
Corporate Bank, Ltd.

Head of Risk
Management Group(Group CRO)

Apr. 2010

General Manager of Risk
Management Division

Managing Director ofMizuho Bank, Ltd.

Apr. 2012

Executive Officer / General
Manager of Risk Management
Division of Mizuho Financial
Group, Inc. (until Nov. 2013)
Executive Officer / General Manager
of Risk Management Division of
the former Mizuho Bank, Ltd.
Executive Officer / General Manager
of Risk Management Division of
the former Mizuho Corporate
Bank, Ltd.

July 2013

119

Executive Officer / General
Manager of Risk Management
Division of Mizuho Bank, Ltd.

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Business experience

Expiration ofcurrent term
as director

Nov. 2013 Managing Executive Officer /Head of Risk Management
Group of Mizuho Financial
Group, Inc. (until June 2014)
Managing Executive Officer /Head of Risk Management
Group of Mizuho Bank, Ltd.
Managing Executive Officer / In
charge of Risk Management
Group of Mizuho Trust &Banking Co., Ltd.
Managing Executive Officer / In
charge of Risk Management
Group of Mizuho Securities
Co., Ltd.

Junichi Shinbo(May 21, 1961)

Director
Managing Executive
Officer
Head of Financial Control& Accounting Group(Group CFO)

Apr. 2014

Managing Director / Head of Risk
Management Group of Mizuho
Bank, Ltd. (current)

June 2014

Director, Managing Executive
Officer / Head of Risk
Management Group of Mizuho
Financial Group, Inc. (current)

Apr. 2009

General Manager of Global
Alternative Investment Divisionof the former Mizuho Corporate
Bank, Ltd.

Apr. 2010

General Manager of AssetManagement Coordination
Division of the former Mizuho
Corporate Bank, Ltd.

Apr. 2012

Executive Officer / General
Manager of Portfolio
Management Division ofMizuho Financial Group, Inc.
(until Apr. 2014)

Managing Director ofMizuho Bank, Ltd.
President & CEO of
Mizuho Financial
Strategy Co., Ltd.

Executive Officer / General
Manager of Portfolio
Management Division of theformer Mizuho Bank, Ltd.
Executive Officer / General
Manager of Portfolio
Management Division of theformer Mizuho Corporate Bank,
Ltd.

120

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Business experience

July 2013

Executive Officer / General
Manager of Portfolio
Management Division ofMizuho Bank, Ltd.

Apr. 2014

Managing Executive Officer /Head of Financial Control &Accounting Group of Mizuho
Financial Group, Inc.

Expiration ofcurrent term
as director

Managing Director / Head ofFinancial Control & Accounting
Group of Mizuho Bank, Ltd.
(current)
President & CEO of Mizuho
Financial Strategy Co., Ltd.
(current)

Koji Fujiwara(June 29, 1961)

Director
Managing Executive
Officer
Head of Strategic
Planning Group (Group
CSO)

June 2014

Director, Managing Executive
Officer / Head of Financial
Control & Accounting Group of
Mizuho Financial Group, Inc.
(current)

Oct. 2007

Senior Manager of Corporate
Planning Division of the former
Mizuho Bank, Ltd. (General
Manager of Office of Chairman,
Japanese Bankers Association)

July 2009

Senior Manager of Investor
Relations Division of Mizuho
Financial Group, Inc.

Apr. 2010

General Manager of Investor
Relations Division

Apr. 2012

Executive Officer / General
Manager of Investor Relations
Division

Apr. 2014

Managing Executive Officer /Head of Strategic Planning
Group

Managing Director ofMizuho Bank, Ltd.

Managing Director / Head of
Strategic Planning Group of
Mizuho Bank, Ltd. (current)
June 2014121

Director, Managing Executive
Officer / Head of Strategic
Group of Mizuho Financial
Group, Inc. (current)

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Hideyuki Takahashi(Apr. 20, 1957)

Director
Director of Mizuho Bank,
Ltd.

Business experience

Apr. 2007

Executive Officer / SeniorCorporate Officer of Strategic
Planning Group of the former
Mizuho Corporate Bank, Ltd.

Apr. 2009Managing Executive Officer /Head of Global Portfolio
Management Unit, Head ofFinancial Institutions & Public
Sector Business Unit, Head of
Global Alternative Investment
Unit

Apr. 2010

Managing Executive Officer /Chief Financial Officer andChief Portfolio Management
Officer

Apr. 2011

Managing Executive Officer /Chief Financial Officer, Chief
Portfolio Management Officer
and Chief Information Officer

Apr. 2012Managing Executive Officer /Head of Financial Control &Accounting Group of Mizuho
Financial Group, Inc.
Managing Executive Officer /Head of Financial Control &Accounting Group of theformer Mizuho Bank, Ltd.
(until Apr. 2013)
Managing Executive Officer / Headof Financial Control &Accounting Group of the former
Mizuho Corporate Bank, Ltd.
(until Apr. 2013)
Managing Executive Officer / In
charge of Strategic Planning,
Financial Control & Accounting
Group of Mizuho Trust &Banking Co., Ltd. (until Apr.
2014)
President & CEO of Mizuho
Financial Strategy Co., Ltd.
(until Apr. 2014)

June 2012

122

Managing Director / Head ofFinancial Control & Accounting
Group of Mizuho Financial
Group, Inc.

Expiration ofcurrent term
as director

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Business experience

Apr. 2013

Expiration ofcurrent term
as director

Deputy President / Head ofFinancial Control & Accounting
Group (until Apr. 2014)
Deputy President & Executive
Officer / Head of Financial
Control & Accounting Group of
the former Mizuho Bank, Ltd.
Deputy President & Executive
Officer / Head of Financial
Control & Accounting Group of
the former Mizuho Corporate
Bank, Ltd.
Managing Executive Officer / In
charge of Financial Control &Accounting Group of Mizuho
Securities Co., Ltd. (until Apr.
2014)

Nobukatsu Funaki(Mar. 30, 1959)

Director

July 2013

Deputy President & Executive
Officer / Head of Financial
Control & Accounting Group of
Mizuho Bank, Ltd.

Apr. 2014

Director of Mizuho Financial
Group, Inc. (current)

June 2014

Director of Mizuho Bank, Ltd.
(current)

Apr. 2005

General Manager of Accounting
Division of the former Mizuho
Corporate Bank, Ltd.

June 2015

Mar. 2010 Corporate Auditor (until June
2013)

AkihikoNomiyama(1)(2)(June 15, 1934)

Director
Honorary Executive
Consultant of JX
Holdings, Inc.

Apr. 2013

Corporate Auditor of Mizuho
Securities Co., Ltd. (until June
2014)

June 2013

Corporate Auditor of Mizuho
Financial Group, Inc.

June 2014

Director of Mizuho Financial
Group, Inc. (current)

Apr. 1957

Joined Nippon Mining Co., Ltd.

June 1984

Director

June 1989

Managing Director

123

June 2015

Name(date of birth)

Mitsuo Ohashi(1)(Jan. 18, 1936)

Current positions andprincipal outside positions

Business experience

Dec. 1992

Managing Director of Nikko
Kyodo Co., Ltd.

Dec. 1993

Managing Director of Japan
Energy Corporation

June 1994

Senior Managing Director

June 1996

President and CEO(Representative Director)

June 2000

Chairman, President and CEO(Representative Director)

Apr. 2002

Chairman and CEO(Representative Director)

Sep. 2002

President and CEO(Representative Director) of
NIPPON MININGHOLDINGS, INC.

June 2003

Chairman (Representative
Director)

June 2006

Special Advisor (until June 2010)

June 2007

Director of Mizuho Financial
Group, Inc. (current)

July 2010

Honorary Executive Consultant of
JX Holdings, Inc. (current)

Director

Mar. 1959 Joined Mitsui Bank, Ltd.

Senior Counselor ofShowa Denko K.K.

Dec. 1961

Joined Showa Denko K.K.

May 1988

General Manager of Corporate
Planning Division

Outside Director of
Chugai PharmaceuticalCo., Ltd.
External Statutory
Auditor of Fukoku
Mutual Life Insurance
Company

Mar. 1989 Director / General Manager ofCorporate Planning Division
Mar. 1993 Managing Director
Mar. 1995 Senior Managing Director
Mar. 1997 President and Chief Executive
OfficerJan. 2005

Representative Director andChairman of the Board of
Directors

June 2005

Director of Mizuho Financial
Group, Inc. (current)

124

Expiration ofcurrent term
as director

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Business experience

Expiration ofcurrent term
as director

Mar. 2007 Director and Chairman of theBoard of Directors of Showa
Denko K.K.
Mar. 2010 Senior Advisor
Mar. 2014 Senior Counselor (current)
Takashi
Kawamura(1)(2)(Dec. 19, 1939)

Director

Apr. 1962

Joined Hitachi, Ltd.

Advisor of Hitachi, Ltd.

June 1995

Director

June 1997

Executive Managing Director

Apr. 1999

Executive Vice President andRepresentative Director

Apr. 2003

Director (until June 2007)

June 2003

Chairman of the Board andRepresentative Executive
Officer, Hitachi Software
Engineering Co., Ltd.

June 2005

Chairman of the Board, Hitachi
Plant Engineering &Construction Co., Ltd. (until
June 2009)

June 2006

Chairman of the Board, Hitachi
Software Engineering Co., Ltd.
(until June 2007)

June 2007

Chairman of the Board, Hitachi
Maxell, Ltd. (until June 2009)

Apr. 2009

Representative Executive Officer,
Chairman, President and Chief
Executive Officer, Hitachi, Ltd.

June 2009

Representative Executive Officer,
Chairman, President and Chief
Executive Officer and Director

Apr. 2010

Representative Executive Officer,
Chairman and Director

Apr. 2011

Chairman of the Board

Apr. 2014

Director

June 2014

Advisor (current)
Director of Mizuho Financial
Group, Inc. (current)

125

June 2015

Name(date of birth)

Tatsuo Kainaka(1)(2)(Jan. 2, 1940)

Current positions andprincipal outside positions

Business experience

Director

Apr. 1966

Appointed as Public Prosecutor

Attorney-at-law at
Takusyou Sogo Law
OfficeJan. 2002

Superintending Prosecutor of theTokyo High Public Prosecutors
OfficeOct. 2002

Justice of the Supreme Court

President of the Life
Insurance
Policyholders
Protection Corporationof Japan
External Director of Japan
Airlines Co., Ltd.
Corporate Auditor(External) of Oriental
Land Co., Ltd.

Expiration ofcurrent term
as director

June 2015

Mar. 2010 Admitted to the Tokyo Bar
Association
Apr. 2010

Joined Takusyou Sogo Law Office(current)

Jan. 2011

President of the Life Insurance
Policyholders Protection
Corporation of Japan (current)

Nov. 2013 Director of Mizuho Bank, Ltd.
(until June 2014)

Kanemitsu
Anraku(1)(2)(Apr. 21, 1941)

Hiroko Ota(1)(2)(Feb. 2, 1954)

June 2014

Director of Mizuho Financial
Group, Inc. (current)

Director

Apr. 1964

Joined Nissan Motor Co., Ltd.

Outside Director of Sony
Corporation

June 1993

Director

June 1997

Managing Director

May 1999

Executive Vice President(Representative Director)

Apr. 2000

Vice Chairman (Member of theBoard of Directors)

June 2000

Vice Chairman

Apr. 2002

President (Representative
Director) of Nissan Real Estate
Development Corporation

June 2005

Counselor

July 2006

Counselor of Nissan Network
Holdings Co., Ltd.

June 2007

Director of Mizuho Financial
Group, Inc. (current)

Director

Apr. 1996

Professor of National
Graduate Institute for
Policy Studies

Associate Professor, the Graduate
School of Policy Science,
Saitama University

Oct. 1997

Associate Professor, National
Graduate Institute for Policy
Studies

126

June 2015

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Business experience

Outside Director of JX
Holdings, Inc.

Apr. 2001

Professor, National Graduate
Institute for Policy Studies

Outside Director ofPanasonic Corporation

Apr. 2002

Director for Economic Research,
Cabinet Office

Expiration ofcurrent term
as director

Mar. 2003 Deputy Director General for
Economic Research, Cabinet
OfficeApr. 2004

Director General for Economic
Research, Cabinet Office

Aug. 2005 Professor, National Graduate
Institute for Policy Studies
Sep. 2006

Minister of State for Economic
and Fiscal Policy

Aug. 2008 Professor, National Graduate
Institute for Policy Studies(current)
Apr. 2009

Vice-President, National Graduate
Institute for Policy Studies(until Mar. 2011)

June 2014

Director of Mizuho Financial
Group, Inc. (current)

Notes:(1) Mr. Nomiyama, Mr. Ohashi, Mr. Kawamura, Mr. Kainaka, Mr. Anraku and Ms. Ota satisfy therequirements for an “outside director” under the Companies Act.
(2) Mr. Nomiyama, Mr. Kawamura, Mr. Kainaka, Mr. Anraku and Ms. Ota are “independent directors” definedby the Tokyo Stock Exchange, Inc.
(3) The designation of the Chairman and the Deputy Chairman of the Board of Directors, and the designation ofcommittee members and the Chairman of each committee are as follows:
Chairman of the Board of Directors: Hiroko Ota
Deputy Chairman of the Board of Directors: Hideyuki Takahashi
Nominating Committee members:
Mitsuo Ohashi (Chairman), Takashi Kawamura, Tatsuo Kainaka and Hiroko Ota
Compensation Committee members:
Tatsuo Kainaka (Chairman), Akihiko Nomiyama, Takashi Kawamura and Kanemitsu Anraku
Audit Committee members:
Hideyuki Takahashi (Chairman), Akihiko Nomiyama, Tatsuo Kainaka, Kanemitsu Anraku and Nobukatsu
Funaki127

Executive Officers
The following table provides information regarding our executive officers as of June 30, 2014:

Name(date of birth)

Current positions andprincipal outside positions

Business experience

Expiration ofcurrent term
as executive
officer

Yasuhiro Sato
(Apr. 15, 1952)

See “Directors” under this
Item 6.A.

See “Directors” under this Item 6.A.

June 2015

Yasunori Tsujita(June 28, 1956)

See “Directors” under this
Item 6.A.

See “Directors” under this Item 6.A.

June 2015

Toshitsugu Okabe(May 2, 1956)

Deputy President &Executive Officer

Apr. 2008

Executive Officer / General
Manager of Executive
Secretariat of Mizuho Financial
Group, Inc.

June 2015

Apr. 2009Managing Executive Officer ofthe former Mizuho Bank, Ltd.

Apr. 2012Managing Executive Officer /Head of Retail Banking Unit

Head of Strategic
Planning andManagement Control(Personal Banking,Retail Banking andCorporate Banking)

Managing Executive Officer (notfull-time) / In charge of
coordination with Retail
Banking Unit of the former
Mizuho Bank, Ltd. of theformer Mizuho Corporate Bank,
Ltd.
Apr. 2013

Deputy President & Executive
Officer / Deputy President(Personal Banking Unit andRetail Banking Unit) of Mizuho
Financial Group, Inc.
Deputy President / Deputy
President (Personal Banking
Unit and Retail Banking Unit)
and Head of Internal Audit
Group of the former Mizuho
Bank, Ltd. (until July 2013)
Deputy President & Executive
Officer / Deputy President (Incharge of coordination with
Personal Banking Unit andRetail Banking Unit of theformer Mizuho Bank, Ltd.) andHead of Internal Audit Group of
the former Mizuho Corporate
Bank, Ltd. (until July 2013)

128

Name
(date of birth)

Current positions andprincipal outside positions

Business experience

June 2013

Deputy President / Deputy
President (Personal Banking
Unit and Retail Banking Unit)of Mizuho Financial Group,
Inc. (until Sep. 2013)

July 2013

Deputy President / Deputy
President (Personal Banking
Unit and Retail Banking Unit)
and Head of Internal Audit
Group of Mizuho Bank, Ltd.
(until Apr. 2014)

Sep. 2013

Deputy President / Deputy
President (Personal Banking
Unit and Retail Banking Unit)
and Head of Compliance Groupof Mizuho Financial Group,
Inc. (until Apr. 2014)

Nov. 2013

Managing Executive Officer / In
charge of Compliance Group of
Mizuho Trust & Banking Co.,Ltd.

Expiration ofcurrent term
as executive
officerManaging Executive Officer / In
charge of Compliance Group of
Mizuho Securities Co., Ltd.

Daisaku Abe(June 20, 1957)

Deputy President &Executive Officer

Apr. 2014

Deputy President / Deputy
President (Head of Strategic
Planning and Management
Control (Personal Banking,Retail Banking and Corporate
Banking))June 2014

Deputy President & Executive
Officer / Head of Strategic
Planning and Management
Control (Personal Banking,Retail Banking and Corporate
Banking)) (current)

Apr. 2007

Executive Officer / General
Manager of Executive
Secretariat of the former
Mizuho Corporate Bank, Ltd.

Apr. 2009Managing Executive Officer /Head of Strategic PlanningGroup, Head of IT, Systems &Operations Group and General
Manager of Group Strategic
Planning of Mizuho Financial
Group, Inc.

Head of IT & Systems
Group (Group CIO)
Head of Operations
Group (Group COO)
Deputy President &Executive Officer ofMizuho Bank, Ltd.

129

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Business experience

Apr. 2011

Managing Executive Officer /Head of Strategic PlanningGroup and Head of IT, Systems& Operations Group

Apr. 2012Managing Executive Officer /Head of IT & Systems Groupand Head of Operations GroupManaging Executive Officer /Head of IT & Systems Groupand Head of Operations Groupof the former Mizuho Bank,
Ltd. (until Apr. 2013)
Managing Executive Officer /Head of IT & Systems Groupand Head of Operations Groupof the former Mizuho Corporate
Bank, Ltd. (until Apr. 2013)
Managing Executive Officer / In
charge of IT & Systems Groupand Operations Group of
Mizuho Trust & Banking Co.,
Ltd. (until Apr. 2014)

June 2012Managing Director / Head of IT &Systems Group and Head ofOperations Group of Mizuho
Financial Group, Inc.

Apr. 2013

Deputy President / Head of IT &Systems Group and Head ofOperations Group (until June
2014)
Deputy President & Executive
Officer / Head of IT & Systems
Group and Head of Operations
Group of the former Mizuho
Bank, Ltd.
Deputy President & Executive
Officer / Head of IT & Systems
Group and Head of Operations
Group of the former Mizuho
Corporate Bank, Ltd.
Managing Executive Officer / In
charge of IT & Systems Groupand Operations Group of
Mizuho Securities Co., Ltd.
(until Apr. 2014)130

Expiration ofcurrent term
as executive
officerName(date of birth)

Tadashi Kanki(Oct. 9, 1958)

Current positions andprincipal outside positions

Senior Managing
Executive Officer

Business experience

July 2013

Deputy President & Executive
Officer / Head of IT & Systems
Group and Head of Operations
Group of Mizuho Bank, Ltd.
(current)

June 2014

Deputy President & Executive
Officer / Head of IT & Systems
Group and Head of Operations
Group of Mizuho Financial
Group, Inc. (current)

Apr. 2008

Executive Officer / General
Manager of Corporate Banking
Division No.8 of the former
Mizuho Corporate Bank, Ltd.

Apr. 2011

Managing Executive Officer (until
Apr. 2013)

Apr. 2012Managing Executive Officer ofthe former Mizuho Bank, Ltd.

Apr. 2013

Managing Executive Officer /Head of Strategic PlanningGroup of Mizuho Financial
Group, Inc.

Head of Internal Audit
Group (Group CA)

Managing Executive Officer /Head of Strategic PlanningGroup of the former Mizuho
Bank, Ltd. (until July 2013)
Managing Executive Officer /Head of Strategic PlanningGroup of the former Mizuho
Corporate Bank, Ltd. (until
July 2013)
Managing Executive Officer / In
charge of Strategic Planning,
Financial Control & Accounting
Group of Mizuho Trust &Banking Co., Ltd. (until
Apr. 2014)
Managing Executive Officer / In
charge of Strategic PlanningGroup of Mizuho Securities
Co., Ltd. (until Apr. 2014)
June 2013131

Managing Director / Head of
Strategic Planning Group of
Mizuho Financial Group, Inc.
(until Apr. 2014)

Expiration ofcurrent term
as executive
officerJune 2015

Name(date of birth)

Current positions andprincipal outside positions

Business experience

July 2013

Akira Sugano(July 25, 1959)

Managing Executive Officer /Head of Strategic PlanningGroup of Mizuho Bank, Ltd.
(current)
Apr. 2014 Senior Managing Director / Headof Internal Audit Group of
Mizuho Financial Group, Inc.
June 2014 Senior Managing Executive
Officer / Head of Internal Audit
Group (current)
Senior Managing
Apr. 2009 Executive Officer / General
Executive Officer
Manager of International
Coordination Division
Head of Strategic Planningof the former Mizuho
and Management
Corporate Bank, Ltd.
Control (International
Banking, Investment
Apr. 2012 Managing Executive Officer /Banking and Asset
Head of Investment Banking
Management)
Unit, Head of AssetManagement Unit and In chargeof Business Collaboration
Division (Securities & Trust
Services) of the former Mizuho
Bank, Ltd.

Expiration ofcurrent term
as executive
officerManaging Executive Officer /Head of Investment Banking
Unit, Head of AssetManagement Unit and In chargeof Business Collaboration
Division (Securities & Trust
Services) of the former Mizuho
Corporate Bank, Ltd.
Apr. 2013

Managing Executive Officer /Head of International Banking
Unit and Head of AssetManagement Unit of Mizuho
Financial Group, Inc. (until
Apr. 2014)
Managing Executive Officer /Head of Asset Management
Unit and In charge of
coordination with International
Banking Unit of the former
Mizuho Corporate Bank, Ltd. ofthe former Mizuho Bank, Ltd.
Managing Executive Officer /Head of International Banking
Unit and Head of AssetManagement Unit of the former
Mizuho Corporate Bank, Ltd.

132

June 2015

Name(date of birth)

Junichi Kato
(July 30, 1957)

Current positions andprincipal outside positions

Managing Executive
OfficerBusiness experience

July 2013

Managing Executive Officer /Head of International Banking
Unit and Head of AssetManagement Unit of Mizuho
Bank, Ltd.

Apr. 2014

Senior Managing Executive
Officer / Head of Strategic
Planning and Management
Control (International Banking,Investment Banking and AssetManagement) of Mizuho
Financial Group, Inc. (current)

Apr. 2008

Executive Officer of Mizuho
Securities Co., Ltd. / President& CEO of Mizuho Bank
(Switzerland) Ltd

Apr. 2009Managing Executive Officer ofthe former Mizuho Bank, Ltd.

Apr. 2012Managing Executive Officer /Joint Head of Markets Unit of
the former Mizuho Bank, Ltd.

Head of Markets UnitManaging Executive
Officer of Mizuho
Bank, Ltd.

Expiration ofcurrent term
as executive
officerJune 2015

Managing Executive Officer /Joint Head of Markets Unit of
the former Mizuho Corporate
Bank, Ltd.
July 2013

Managing Executive Officer /Joint Head of Markets Unit ofMizuho Bank, Ltd.

Apr. 2014

Managing Executive Officer /Head of Markets Unit ofMizuho Financial Group, Inc.
(current)
Managing Executive Officer /Head of Markets Unit ofMizuho Bank, Ltd. (current)

Masayuki Hoshi(Mar. 9, 1960)

Managing Executive
Officer

Apr. 2009133

Executive Officer / General
Manager of Corporate Banking
Division No.17 of the former
Mizuho Corporate Bank, Ltd.

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Head of Financial
Institutions & Public
Sector Business Unit
and Head ofTransaction Banking
Unit
Managing Executive
Officer of Mizuho
Bank, Ltd.

Business experience

Apr. 2010

Executive Officer / Joint Head ofCorporate Banking Unit
(Financial Institutions & Public
Sector)Apr. 2011

Managing Executive Officer /Head of Global Transaction
Banking Unit and Head of
Global Asset Management Unit

Apr. 2012Managing Executive Officer /Head of Financial Institutions &Public Sector Business Unit andHead of Transaction Banking
Unit of the former Mizuho
Bank, Ltd. (until July 2013)

Expiration ofcurrent term
as executive
officerManaging Executive Officer /Head of Financial Institutions &Public Sector Business Unit andHead of Transaction Banking
Unit of the former Mizuho
Corporate Bank, Ltd. (until July
2013)

Tomoshige Jingu(Feb. 16, 1961)

Managing Executive
Officer
Head of Human
Resources Group(Group CHRO)

Apr. 2013

Managing Executive Officer /Head of Financial Institutions &Public Sector Business Unit andHead of Transaction Banking
Unit of Mizuho Financial
Group, Inc. (current)

July 2013

Managing Executive Officer /Head of Financial Institutions &Public Sector Business Unit andHead of Transaction Banking
Unit of Mizuho Bank, Ltd.
(current)

Apr. 2008

General Manager of Shinjuku
Corporate Banking Division of
the former Mizuho Corporate
Bank, Ltd.

Apr. 2010

General Manager of Nagoya
Corporate Banking Division

Apr. 2011

Executive Officer / General
Manager of Nagoya Corporate
Banking Division

134

June 2015

Name(date of birth)

Current positions andprincipal outside positions

Managing Executive
Officer of Mizuho
Bank, Ltd.

Business experience

Apr. 2012Managing Executive Officer ofthe former Mizuho Bank, Ltd.
(until July 2013)

Apr. 2013

Managing Executive Officer ofthe former Mizuho Corporate
Bank, Ltd.

July 2013

Managing Executive Officer ofMizuho Bank, Ltd.

Apr. 2014

Managing Executive Officer /Head of Human ResourcesGroup of Mizuho Financial
Group, Inc. (current)

Expiration ofcurrent term
as executive
officerManaging Executive Officer /Head of Human ResourcesGroup of Mizuho Bank, Ltd.
(current)
Ryusuke Aya(May 20, 1960)

See “Directors” under this
Item 6.A.

See “Directors” under this
Item 6.A.

June 2015

Junichi Shinbo(May 21, 1961)

See “Directors” under this
Item 6.A.

See “Directors” under this
Item 6.A.

June 2015

Koji Fujiwara(June 29, 1961)

See “Directors” under this
Item 6.A.

See “Directors” under this
Item 6.A.

June 2015

No family relationship exists among any of our directors and executive officers.

6.B. Compensation
Mizuho Financial Group transformed from a Company with Board of Auditors into a Company with
Committees on June 24, 2014. The following contents provide information before the transformation.
In accordance with the Companies Act, as a Company with Board of Auditors, compensation for our
directors and corporate auditors, including bonuses, retirement allowances and incentive stock options, had to beapproved at our general meeting of shareholders, as our articles of incorporation did not specify otherwise. The
shareholders’ approval specified the upper limit of the aggregate amount of compensation, and included thedescription of benefits in kind. Compensation for a director or corporate auditor was fixed by our board of
directors or by consultation among our corporate auditors in accordance with our internal regulations andpractice and, in the case of retirement allowances, generally reflected the position of the director or corporate
auditor at the time of retirement, the length of his service as a director or corporate auditor and his contribution to
our performance.
The aggregate compensation, including bonuses and stock compensation-type stock options (stockacquisition rights) but excluding retirement allowances, paid by Mizuho Financial Group and its subsidiaries tothe directors and corporate auditors of Mizuho Financial Group during the fiscal year ended March 31, 2014 was¥503 million and ¥86 million, respectively.
135

Listed companies in Japan are required under Cabinet Office Ordinance on Disclosure of Corporate Affairs,
etc., to disclose the compensation provided to their directors and corporate auditors for the relevant fiscal year if
the aggregate annual compensation per the director/corporate auditor equals or exceeds ¥100 million (including
any compensation provided by major subsidiaries of such listed company as directors and corporate auditors ofsuch subsidiaries). None of our directors and corporate auditors received compensation that equaled or exceeded
the foregoing amount in the fiscal year ended March 31, 2014.
Mizuho Financial Group and some of its subsidiaries, including the former Mizuho Bank and the former
Mizuho Corporate Bank, abolished their respective retirement allowance programs for directors, corporate
auditors and officers. At the ordinary general meeting of shareholders held in June 2008, Mizuho Financial
Group and such subsidiaries obtained shareholders’ approval for a payment of lump sum retirement allowances
for directors and corporate auditors (other than those elected after such shareholders’ meeting) at the time of theirrespective retirement.
In conjunction with the abolishment of the retirement allowance program, we obtained shareholder’sapproval for the introduction of stock acquisition rights for the directors (excluding outside directors) at theordinary general meeting of shareholders held on June 26, 2008. On January 30, 2009, our board of directors
resolved to issue stock acquisition rights to directors and executive officers and subsequently allotted anaggregate of 5,409 stock acquisition rights on February 16, 2009. As the directors of Mizuho Financial Group,
our directors received 435 stock acquisition rights. Each stock acquisition right represents a right to purchase1,000 shares of our common stock at ¥1 per share of common stock. The period during which the stockacquisition rights may be exercised shall be until February 16, 2029. Their exercise is conditioned on the holder
losing his or her status as director or executive officer. The book value of each stock acquisition right was¥190,910 as of March 31, 2014.
On September 3, 2009, our board of directors resolved to issue stock acquisition rights to directors andexecutive officers and subsequently allotted an aggregate of 5,835 stock acquisition rights on September 25,
2009. As the directors of Mizuho Financial Group, our directors received 500 stock acquisition rights. Each stockacquisition right represents a right to purchase 1,000 shares of our common stock at ¥1 per share of common
stock. The period during which the stock acquisition rights may be exercised shall be until September 25, 2029.
Their exercise is conditioned on the holder losing his or her status as director or executive officer. The bookvalue of each stock acquisition right was ¥168,690 as of March 31, 2014.
On July 30, 2010, our board of directors resolved to issue stock acquisition rights to directors and executive
officers and subsequently allotted an aggregate of 6,808 stock acquisition rights on August 26, 2010. As the
directors of Mizuho Financial Group, our directors received 500 stock acquisition rights. Each stock acquisitionright represents a right to purchase 1,000 shares of our common stock at ¥1 per share of common stock. The
period during which the stock acquisition rights may be exercised shall be until August 26, 2030. Their exercise
is conditioned on the holder losing his or her status as director or executive officer. The book value of each stockacquisition right was ¥119,520 as of March 31, 2014.
On November 18, 2011, our board of directors resolved to issue stock acquisition rights to directors andexecutive officers, and subsequently allotted an aggregate of 12,452 stock acquisition rights on December 8,
2011. As the directors of Mizuho Financial group, our directors received 500 stock acquisition rights. Each stockacquisition right represents a right to purchase 1,000 shares of our common stock at ¥1 per share of common
stock. The period during which the stock acquisition rights may be exercised shall be until December 8, 2031.
Their exercise is conditioned on the holder losing his or her status as director or executive officer. The bookvalue of each stock acquisition right was ¥91,840 as of March 31, 2014.
On July 31, 2012, our board of directors resolved to issue stock acquisition rights to directors and executive
officers, and subsequently allotted an aggregate of 11,776 stock acquisition rights on August 31, 2012. As the
directors of Mizuho Financial group, our directors received 498 stock acquisition rights. Each stock acquisition136

right represents a right to purchase 1,000 shares of our common stock at ¥1 per share of common stock. The
period during which the stock acquisition rights may be exercised shall be until August 31, 2032. Their exercise
is conditioned on the holder losing his or her status as director or executive officer. The book value of each stockacquisition right was ¥113,250 as of March 31, 2014.
On January 31, 2014, our board of directors resolved to issue stock acquisition rights to directors andexecutive officers, and subsequently allotted an aggregate of 7,932 stock acquisition rights on February 17, 2014.
As the directors of Mizuho Financial group, our directors received 184 stock acquisition rights. Each stockacquisition right represents a right to purchase 1,000 shares of our common stock at ¥1 per share of common
stock. The period during which the stock acquisition rights may be exercised shall be until February 17, 2034.
Their exercise is conditioned on the holder losing his or her status as director or executive officer. The bookvalue of each stock acquisition right was ¥192,610 as of March 31, 2014.
6.C. Board Practices
Under the Companies Act, Companies with Committees are required to establish a nominating committee, acompensation committee and an audit committee and the majority of the respective committee members must beoutside directors, as defined under the Companies Act. Such companies are also required to appoint executive
officers under the Companies Act.
Pursuant to the definition prescribed in the Companies Act, our outside directors shall not currently serve as
executive directors (representative directors or directors other than representative directors appointed as directors
executing our business by resolution of the board of directors as well as other directors executing our business),
executive officers or employees of Mizuho Financial Group or its subsidiaries nor shall have previously served as
executive directors, executive officers or employees of Mizuho Financial Group or its subsidiaries.
We have transformed into a Company with Committees from a Company with Board of Corporate Auditorsin June 2014 with the belief that, under the current legal system, a Company with Committees is the mosteffective as a system to realize the basic policy regarding our corporate governance system for the following
reasons:•

To allow executive officers to make swift and flexible decisions on business execution delegated by the
Board of Directors and to implement business execution, and to allow the Board of Directors to focus on
determining matters such as basic management policies and effectively supervising management.

•

To secure to the fullest extent possible a checks and balances function that fully utilizes the viewpointsof outside parties and objectively secure appropriateness and fairness in decision-making throughmembers of the Nominating Committee, the Compensation Committee and the Audit Committee, which
consist mainly of outside directors.

•

To make possible the creation of systems that are necessary to realize the fundamental perspectives
regarding the corporate governance of the Mizuho group in a form that takes into account what ourgroup aims to be and its challenges.

•

To be in line with governance systems that are required globally with a strong recognition that our group
operates globally and is in a position in which it should play a leading role in the industry as a financialgroup that is a Global Systemically Important Financial Institution (G-SIFI); to continue constructing astrong governance system that will agilely respond to domestic and global structural changes andovercome a highly competitive environment; and as a result, to allow our group to fulfill its social roleand mission, which is to realize continuous and stable corporate growth and improved corporate value
and shareholder interests and contribute to domestic and global economic and industrial development
and prosperity of society, in response to the demands of our stakeholders.

Pursuant to our Articles of Incorporation, we have established general meetings of shareholders, individual
directors, Board of Directors, Nominating Committee, Audit Committee, Compensation Committee and an
accounting auditor as the primary components of our corporate governance system.
137

(Board of Directors)
Under the Companies Act, directors are elected by resolution of the general meetings of shareholders, andtheir term of office ends at the close of the ordinary general meeting of shareholders relating to the fiscal year
ending within a year following their appointment.
In addition, under the Companies Act, the duties of the board of directors include making decisions on
business execution and supervision of the execution of duties of directors and executive officers, and by its
resolution, it may delegate making decisions on business execution (excluding certain specified matters) to the
executive officers.
The main roles of our Board of Directors are making decisions on business execution such as basic
management policies, which are legally matters to be determined solely by the Board of Directors, andsupervising the execution of duties by directors and executive officers. The Board of Directors shall, in principle,
delegate to our President & Executive Officer, who is also the Group CEO, decisions on business execution(excluding matters that are legally required to be determined solely by the Board of Directors), for the purpose ofrealizing swift and flexible decision-making and expeditious corporate management and strengthening thesupervision of directors and executive officers by the Board of Directors.
Pursuant to the Articles of Incorporation, we have no more than 15 directors and maintain the following
structure in order to manage the Board of Directors in an effective and stable manner. In light of the role of theBoard of Directors to supervise management, the majority of the members of the Board of Directors consist ofoutside directors and internal directors who do not concurrently serve as persons performing executive roles(“Internal Non-Executive Directors,” and together with outside directors, “Non-Executive Directors”). Currently,
the Board of Directors consists of a total of 13 directors (six outside directors, two Internal Non-Executive
Directors and five directors concurrently serving as executive officers).
The chairman of the Board of Directors shall, in principle, be an outside director (or at least a NonExecutive Director) in light of the role of the Board of Directors to supervise management. Ms. Hiroko Ota
currently serves as the chairman of the Board of Directors.
(Nominating Committee)
Under the Companies Act, the nominating committee is required to consist of at least three directors, andthe majority of its members is required to consist of outside directors. The duties of the nominating committee
include the determination of the contents of proposals regarding the appointment and dismissal of directors to besubmitted to the general meeting of shareholders.
The Nominating Committee of Mizuho Financial Group shall determine the contents of proposals regarding
the appointment and dismissal of directors of Mizuho Financial Group to be submitted to the general meeting ofshareholders and shall exercise the approval rights held by Mizuho Financial Group with respect to theappointment and dismissal of directors of each of Mizuho Bank, Mizuho Trust & Banking and Mizuho Securities(the “Core Subsidiaries”) and exercise the approval rights held by Mizuho Financial Group with respect to theappointment and removal of representative directors and senior directors of the Core Subsidiaries.
The chairman of the Nominating Committee shall be an outside director, and in principle its members shallbe appointed from among outside directors (or at least Non-Executive Directors) in order to ensure objectivity
and transparency in the appointment of directors. All members of the Nominating Committee, including thechairman, are currently outside directors.

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(Compensation Committee)
Under the Companies Act, the compensation committee is required to consist of at least three directors, andthe majority of its members is required to consist of outside directors. The duties of the compensation committee
include the determination of the compensation for each individual director and executive officer.
The Compensation Committee of Mizuho Financial Group shall determine the compensation for eachindividual director and executive officer of Mizuho Financial Group, exercise the approval rights held by Mizuho
Financial Group regarding compensation of each individual director of the Core Subsidiaries, and determine thebasic policies and compensation system for directors, and executive officers and of Mizuho Financial Group andthe Core Subsidiaries.
The chairman of the Compensation Committee shall be an outside director, and in principle its members
shall be appointed from among the outside directors (or at least Non-Executive Directors) in order to ensure
objectivity and transparency in the compensation of directors and executive officer. All members of theCompensation Committee, including the chairman, are currently outside directors.
(Audit Committee)
Under the Companies Act, the audit committee is required to consist of at least three Non-Executive
Directors, and the majority of its members is required to consist of outside directors. The duties of the audit
committee include the audit of the execution of duties by directors and executive officers and preparation of audit
reports.
The Audit Committee of Mizuho Financial Group shall audit the execution of duties by the directors andexecutive officers, monitor and inspect the establishment and management of the internal control system ofMizuho Financial Group and its subsidiaries, monitor and inspect the condition of the execution of duties withrespect to corporate management of subsidiaries and others by executive officers, prepare audit reports anddetermine the contents of proposals regarding the appointment, dismissal and non-reappointment of accounting
auditors to be submitted to the general meeting of shareholders.
Given that it is necessary for the Audit Committee to gather information through internal directors who arefamiliar with the financial business and related regulations, share information among the Audit Committee, andto have sufficient coordination with internal control departments, we shall in principle appoint one or two
Internal Non-Executive Directors as full-time members of the Audit Committee. The majority of its members
shall be outside directors. Currently, among the five members of the Audit Committee, two members areappointed among Internal Non-Executive Directors as full-time members of the Audit Committee, and threemembers are appointed among outside directors.
All members of the Audit Committee shall be independent under the provisions of the United States
Securities and Exchange Commission and the rules of the New York Stock Exchange. Further, at least one
member of the Audit Committee shall be a “financial expert” as defined under U.S. laws and regulations.
We have established committees and other organizations on a voluntary basis in addition to the above
legally-required three committees as set forth below:•

Human Resources Review Meeting
We have established the Human Resources Review Meeting that consists of the President & Executive
Officer and outside directors who serve as members of the Nominating Committee and Compensation
Committee as a deliberative body that mainly conducts the deliberation of proposals to appoint
executive officers, as defined in the Companies Act, and executive officers, as defined in our internal
regulations, with title of Mizuho Financial Group and executive officers as defined in our internal
regulations, with title of Core Subsidiaries and assessment of executive officers.
139

•

Risk Committee
We have established the Risk Committee that in principle fully consists of Non-Executive Directors or
external experts as an advisory body that mainly advises the Board of Directors with respect to thesupervision of the determination and the implementation relating to risk governance.

•

External Director Session
We have established the External Director Session that consists of all outside directors and thePresident & Executive Officer as a forum for free discussions with an aim to deepen outside directors’
understanding of our group and share the top management’s awareness of issues throughcommunication among directors.

(Executive Officers)
Under the Companies Act, Companies with Committees are required to appoint at least one executive
officer by the resolution of the board of directors, and its term of office ends at the close of the meeting of theboard of directors initially convened following the close of the ordinary general meeting of shareholders relating
to the fiscal year ending within a year following appointment. Executive officers shall decide on the businessexecution delegated by a resolution of the board of directors and implement business execution.
Executive officers of Mizuho Financial Group take charge of making decisions on business executiondelegated by a resolution of the Board of Directors and implementing business execution of Mizuho Financial
Group.
We shall appoint the Group CEO and, in principle, the most senior staff who controls units that constituteprofit units under the control of the Group CEO, group heads who control each group that comprises corporate
planning and management units and the Head of Internal Audit Group as executive officers based on the policythat it is necessary to appoint as executive officers people who assume a managing role.
While the President & Executive Officer is responsible for the business operations of Mizuho Financial
Group, from the perspective of providing a checks and balances function and ensuring sufficient consideration inconnection with decision-making, in principle, determination of delegated matters relating to making decisions
on business execution following the transformation into a Company with Committees shall be based on
deliberation of the Executive Management Committee (however, excluding matters ensured to be deliberated anddiscussed under sufficient checks and balances by Non-Executive Directors such as through the Nominating
Committee, Compensation Committee and Human Resources Review Meeting).
(Agreements with Directors, etc.)
None of our directors has service contracts with us providing for benefits upon termination of service.
Our Articles of Incorporation, in accordance with the Companies Act, allow us to enter into an agreementwith outside directors that limits their liabilities incurred in connection with their service. The limitation of
liabilities under such agreement, if the outside director performed his/her duty in good faith without grossnegligence, must be the higher of either (i) a pre-determined amount not less than ¥20 million or (ii) the amountprescribed in laws and regulations, which is currently equivalent to two times the annual compensation suchoutside director. Pursuant to the provisions, we have entered into such agreements with all of our outside
directors that are in office.
Based on the rules of the Tokyo Stock Exchange, listed companies are required to have at least one memberof the board of directors to be “independent.” Currently, five of our outside directors meet such independence
requirements.
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For additional information on our directors and our board practices, see “Item 6.A. Directors and Senior
Management—Directors and Corporate Auditors” and “Item 10.B. Additional Information—Memorandum andArticles of Association” in this annual report.
The rights of holders of American Depositary Receipts, or ADRs, which evidence ADSs, including such
ADR holders’ rights relating to corporate governance practices, are governed by the deposit agreement, which isincluded as Exhibit 2.2 to this annual report.
Corporate Governance Practices
Companies listed on the New York Stock Exchange, or NYSE, must comply with certain standards
regarding corporate governance under Section 303A of the NYSE Listed Company Manual. However, NYSElisted companies that are foreign private issuers meeting certain criteria, such as us, are permitted to follow homecountry practices in lieu of certain provisions of Section 303A, and we are relying on this exemption. See “Item16.G. Corporate Governance” for a summary of significant ways in which our corporate governance practices
differ from those followed by NYSE-listed U.S. companies.
6.D. Employees
As of March 31, 2012, 2013 and 2014, we had 56,109, 55,492 and 54,911 employees, respectively, on aconsolidated basis, including overseas local staff but excluding advisers and temporary employees. We also had
an average of approximately 18,651 temporary employees during the fiscal year ended March 31, 2014.
The following tables show our full-time employees as of March 31, 2014 and the average number of
temporary employees for the fiscal year ended March 31, 2014, each broken down based on business segment
and geographical location:
Number offull-time employees

Average number of
temporary employees

Mizuho Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Trust & Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34,748
4,638
8,910
6,615

15,936
823
1,404
488

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54,911

18,651

Percentage offull-time employees

Average percentage of
temporary employees

Business segment

Location

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia/Oceania (excluding Japan) and others . . . . . . . . . . . . . . . . . . . . . . . .

92.3%
1.9
1.2
4.6

99.8%
0.0
0.1
0.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100.0%

100.0%

Most of our full-time non-management employees in Japan are members of a labor union. Outside Japan,
some of our employees are members of local unions. We consider our labor relations with employees to be good.

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6.E. Share Ownership
The following table shows the number of shares of our common stock owned by our directors and executive
officers as of June 30, 2014:
Directors

Number of shares owned

Yasuhiro Sato . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yasunori Tsujita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ryusuke Aya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Junichi Shinbo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Koji Fujiwara . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hideyuki Takahashi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nobukatsu Funaki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Akihiko Nomiyama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mitsuo Ohashi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Takashi Kawamura . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tatsuo Kainaka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kanemitsu Anraku . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hiroko Ota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive Officers

34,580304,200
89,480118,240
34,000410,860
4,100
27,600—130,000
—
7,000
5,000
Number of shares owned

Yasuhiro Sato . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yasunori Tsujita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toshitsugu Okabe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Daisaku Abe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tadashi Kanki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Akira Sugano . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Junichi Kato . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Masayuki Hoshi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tomoshige Jingu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ryusuke Aya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Junichi Shinbo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Koji Fujiwara . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

See above
See above
556,900
274,080
418,800
330,400
52,8006,300
89,220See above
See above
See above

None of our directors or executive officers is the owner of more than one percent of our common stock, andno director or executive officer has voting rights with respect to our common stock that are different from anyother holder of our common stock.
For information on our stock compensation-type stock options (stock acquisition rights) for directors, see“Item 6.B Compensation”.

142

We maintain an employee stock ownership plan under which participating employees of the companies
listed below is able to purchase our shares with funds deducted from such employee’s salary and bonus
payments. The plan administrator makes open-market purchases of our shares for the account of the plan on amonthly basis. The companies contribute matching funds equivalent to 5% of the amounts contributed. The
following table shows the numbers of shares that this plan held as of March 31, 2014:
As of March 31, 2014
Plan

Employer companies

Number ofshares owned

Mizuho Employee Stock Ownership Plan . . . . . . . . . .

Mizuho Financial Group
Mizuho Bank
Mizuho Trust & Banking
Mizuho Asset Management
Mizuho Research InstituteMizuho Information & Research Institute101,411,849

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

101,411,849

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ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
7.A. Major Shareholders
Common Stock
The following table sets forth information about the ten largest holders of shares of our common stock
appearing on the register of shareholders as of March 31, 2014:
As of March 31, 2014
Number ofPercentage ofshares owned
outstanding shares

Name

Japan Trustee Services Bank, Ltd. (trustee account) . . . . . . . . . . . . . . . . . . . . .
The Master Trust Bank of Japan, Ltd. (trustee account) . . . . . . . . . . . . . . . . . .
The Bank of New York Mellon SA/NV 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JP Morgan Chase Bank 380072 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State Street Bank West Client – Treaty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan Trustee Services Bank, Ltd. (trustee account 6) . . . . . . . . . . . . . . . . . . . .
Japan Trustee Services Bank, Ltd. (trustee account 5) . . . . . . . . . . . . . . . . . . . .
Japan Trustee Services Bank, Ltd. (trustee account 1) . . . . . . . . . . . . . . . . . . . .
Japan Trustee Services Bank, Ltd. (trustee account 3) . . . . . . . . . . . . . . . . . . . .
Japan Trustee Services Bank, Ltd. (trustee account 2) . . . . . . . . . . . . . . . . . . . .

1,058,006,500
935,152,900
699,174,270
452,608,000
271,620,516
266,832,500
266,487,300
265,131,300
262,653,300
262,003,600

4.36%
3.86
2.88
1.87
1.12
1.10
1.10
1.09
1.08
1.08

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,739,670,186

19.54%

As of March 31, 2014, there were 182 record holders of our common stock with addresses in the UnitedStates, whose shareholdings represented approximately 10% of our outstanding common stock on that date.
Because some of these shares were held by brokers or other nominees, the number of record holders withaddresses in the United States might not fully reflect the number of beneficial owners in the United States.
Preferred StockClasses of preferred stock with shares outstanding as of March 31, 2014 consisted of eleventh seriesclass XI preferred stock, which is non-voting. The following tables set forth information about the ownership ofshares of eleventh series class XI preferred stock by our major shareholders of the respective preferred stock asof March 31, 2014, as appearing on the register of preferred shareholders:Eleventh Series Class XI Preferred Stock

Name

As of March 31, 2014
Number ofPercentage ofshares owned outstanding shares

Marubeni Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shimizu Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric Power Development Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ANA Holdings Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JFE Steel Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Daiichi Sankyo Company, Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canon Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kyushu Electric Power Company, Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shiseido Company, Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chubu Electric Power Company, Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . .

14,500,000
10,000,000
10,000,000
6,000,000
6,000,000
6,000,000
5,000,000
5,000,000
5,000,000
5,000,000

4.64%
3.20
3.20
1.92
1.92
1.92
1.60
1.60
1.60
1.60

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

72,500,000

23.19%

144

As of March 31, 2014, there were no holders of our preferred stock with addresses in the United States.
All of the shares of the thirteenth series class XIII preferred stock issued by Mizuho Financial Group(36,690,000 shares) were acquired and cancelled on July 11, 2013.
To our knowledge, we are not directly or indirectly owned or controlled by any other corporation(s), by any
foreign government or by any other natural or legal person(s) severally or jointly. We know of no arrangements
the operation of which may at a later time result in a change of control.
7.B. Related Party Transactions
We and our subsidiary banks had, and expect to have in the future, banking transactions and othertransactions in the ordinary course of business with our related parties. Although, for the fiscal year ended
March 31, 2014, such transactions included, but were not limited to, call money, loans, deposits, guarantees andforeign exchange transactions, those transactions were immaterial and were made on substantially the sameterms, including interest rates and collateral, as those prevailing at the time for comparable transactions withother persons and did not involve more than the normal risk of collectability or present other unfavorable
features.
During the fiscal year ended March 31, 2014, none of our directors or executive officers or corporate
auditors, and none of the close members of their respective families, had any transactions that are material or any
transactions that are unusual in their nature or conditions, involving goods, services or tangible or intangible
assets, to which we were, are or will be a party, and there were no such transactions proposed as of March 31,
2014.
During the fiscal year ended March 31, 2014, no loans were made to our directors or executive officers or
corporate auditors other than loans in the ordinary course of business, on substantially the same terms, includinginterest rates and collateral, as those prevailing at the time for comparable transactions with other persons, andinvolving no more than the normal risk of collectability or presenting other unfavorable features.
7.C. Interests of Experts and Counsel
Not applicable.

145

ITEM 8. FINANCIAL INFORMATION
8.A. Consolidated Statements and Other Financial Information
Financial Statements
Our consolidated financial statements are set forth in this annual report under “Item 18. Financial
Statements.”
Legal Proceedings
We are involved in normal collection proceedings initiated by us and other legal proceedings in the ordinary
course of our business. In addition, we are involved in the following legal proceedings.
An Indonesian subsidiary of ours acts as collateral agent for the trustee of bond issuances made bysubsidiaries of Asia Pulp & Paper Company Ltd. (“APP”). In that role, the subsidiary is involved in a dispute
between the bondholders and such APP subsidiaries in their capacities as the issuers, guarantors and/or pledgorsof security for the bonds relating to foreclosure proceedings on the collateral and has been named as a defendantin a lawsuit brought by the obligors under the bonds in Indonesia. Our consolidated financial statements do notinclude a reserve in relation to this dispute because we do not believe the resolution of this matter will have asignificant impact on our consolidated financial condition or results of operations, although there can be noassurance as to the foregoing.
Dividend Policy
We have been implementing “disciplined capital management” by pursuing the optimal balance between“strengthening of stable capital base” and “steady returns to shareholders.”
Based on the above policy, we paid annual cash dividends for the fiscal year ended March 31, 2014 of¥6.5 per share of common stock (interim cash dividends of ¥3 per share of common stock and cash dividends atthe end of the fiscal year of ¥3.5 per share of common stock). With respect to Eleventh Series Class XI Preferred
Stock, we made dividend payments for the fiscal year ended March 31, 2014 as prescribed.
Our articles of incorporation provide for our ability to distribute an interim dividend to shareholders ofrecord as of September 30 in each year pursuant to Article 454 Paragraph 5 of the Companies Act, and we intend
to distribute dividends twice per year, at the interim period and the end of the period, to return profits toshareholders in a timely way.
The distribution of surplus for the fiscal year end is subject to the authorization by a general meeting ofshareholders, while the distribution of surplus for the interim period is made by resolution of our board of
directors.
With the results of the fiscal year ended March 31, 2014, we believe that we have reached a certain capitallevel that can support our future growth strategy. In and after the fiscal year ending March 31, 2015, we
continuously consider the optimum balance between “strengthening of stable capital base” and “steady returns toshareholders.” We will comprehensively consider the business environment such as the Mizuho group’s businessresults, profit base, capital, and domestic and international regulation trends such as the Basel framework anddetermine cash dividend payments for each term.
8.B. Significant Changes
Except as disclosed in note 34 to our consolidated financial statements, no significant change in our
financial position has occurred since the date of the financial statements included in this annual report.
146

ITEM 9. THE OFFER AND LISTING
9.A. Listing Details
Market Price Information for Our American Depositary Shares
Our ADSs are listed on the New York Stock Exchange.
The following table sets forth, for the periods indicated, the high and low trading prices and average daily
trading volume on the New York Stock Exchange for our ADSs:
Price per ADS
High
Low

Fiscal years ended/ending March 31,

2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014:First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Most recent six months:
January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July (through July 24) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

147

Average daily
trading volume(shares)

$5.70
4.27
3.42
4.68
4.55

$3.33
2.67
2.43
2.80
3.62

520,497
720,409779,986
478,892
556,105

3.35
3.49
3.67
4.68

2.80
3.01
3.01
3.62

452,314360,966
353,956
759,719

4.55
4.51
4.43
4.52

3.62
4.02
4.06
3.87

1,197,898
309,364
338,905
369,508

4.17

3.82

266,474

4.52
4.29
4.21
4.17
3.99
4.14
4.11

4.22
4.01
3.87
3.82
3.82
3.92
3.92

337,560
413,028
362,080
299,132
270,044
230,246
157,730

Market Prices Information for Our Shares
See “Item 9.C. The Offer and Listing—Markets” for information on the stock exchanges on which ourcommon stock is listed.
The following table sets forth, for the periods indicated, the high and low trading prices and average daily
trading volume on the First Section of the Tokyo Stock Exchange for our common stock:
Fiscal years ended/ending March 31,

2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014:First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Most recent six months:
January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July (through July 25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Price per share
High
Low

Average daily
trading volume(shares)

¥274
192
146
221
240

¥146
110
98
110
180

170,679,648
173,457,514
107,266,520
142,901,584
186,546,095

138
137
157
221

110
119
121
158

95,949,077
74,752,544
99,371,152
313,648,683

233
226
229
240

180
200
199
197

327,942,982
134,620,102
123,454,968
159,242,310

213

193

97,798,018

240
221
213
213
205
212
209

215
203
197
196
193
198
198.3

206,459,042
167,863,163
106,196,605
79,218,895
105,714,190
108,837,929
99,247,556

9.B. Plan of Distribution
Not applicable.
9.C. Markets
The principal trading market for our shares of common stock is the First Section of the Tokyo Stock
Exchange. Our shares have been listed on the First Section of the Tokyo Stock Exchange, under the code “8411,”
since our establishment as the holding company of the Mizuho group on March 12, 2003, as the successor to
Mizuho Holdings. Our shares had been listed on the First Section of the Osaka Securities Exchange under thesame code until the integration of the cash equity markets of the Osaka Securities Exchange and the Tokyo Stock
Exchange which occurred on July 16, 2013.
Our ADSs have been listed on the New York Stock Exchange since November 8, 2006 and are quoted under
the ticker symbol “MFG.”
148

9.D. Selling Shareholders
Not applicable.
9.E. Dilution
Not applicable.
9.F. Expenses of the Issue
Not applicable.

149

ITEM 10. ADDITIONAL INFORMATION
10.A. Share Capital
Not applicable.
10.B. Memorandum and Articles of Association
Objects and Purposes in our Articles of Incorporation
Our corporate purpose, as specified in article 2 of our articles of incorporation, which is included in thisannual report as Exhibit 1.1, is to engage in the following businesses as a bank holding company:•

operation and management of bank holding companies, banks, long-term credit banks, specialized
securities companies and other companies which we may own as our subsidiaries under the Banking
Act; and•any other business incidental to the foregoing.

Our Board of Directors
Under the Companies Act, because we have adopted the “Company with Committees” system, our directors
have no power to execute our business except in limited circumstances as permitted by law. If a director also
serves concurrently as an executive officer, then he or she can execute our business in the capacity of executive
officer. There is no provision in our articles of incorporation as to our directors’ power to vote on a proposal,
arrangement or contract in which a director is materially interested. The Companies Act, however, requires suchdirector to refrain from voting on such matters at meetings of the board of directors.
The amount of compensation to each our director is determined by the Compensation Committee, which
consists of our directors, the majority of whom are outside directors (See “Item 6.C. Board Practices”).
The borrowing powers have been delegated to the executive officers by the board of directors in accordancewith the Companies Act.
Neither the Companies Act nor our articles of incorporation set a mandatory retirement age for our
directors.
There is no requirement concerning the number of shares an individual must hold to qualify as a director
under the Companies Act or our articles of incorporation.
Common Stock
GeneralSet forth below is information concerning our shares of common stock, including brief summaries of certain
provisions of our articles of incorporation, our share handling regulations and the Companies Act (Kaisha Hou)
(Act No. 86 of 2005, as amended) relating to joint stock corporations (kabushiki kaisha) and certain related
legislation, all as currently in effect.
Under our articles of incorporation, we are authorized to issue 48,000,000,000 shares of common stock.
As of March 31, 2014, 24,263,885,187 shares of common stock were issued.
Where relevant to the common stock, provisions of our preferred stock are also described below.

150

Distribution of Surplus
GeneralUnder the Companies Act, distribution of cash or other assets by a joint stock corporation to its
shareholders, including dividends, takes the form of distribution of Surplus (as defined in “—Restriction on
Distribution of Surplus”). We are permitted to make distributions of Surplus to our shareholders any number oftimes per fiscal year, subject to certain limitations described in “—Restriction on Distribution of Surplus.” Under
the Companies Act and our articles of incorporation, distributions of Surplus are in principle permitted by aresolution of the board of directors as long as our non-consolidated annual financial statements and certain
documents for the latest fiscal year fairly present our assets and profit and loss, as required by an ordinance of the
Ministry of Justice. Distributions of Surplus are, however, required to be authorized by a resolution of a general
meeting of shareholders if the aforementioned condition is not met.
Distributions of Surplus may be made in cash or in kind in proportion to the number of shares of common
stock held by each shareholder. A resolution of the board of directors or a general meeting of shareholders
authorizing a distribution of Surplus must specify the kind and aggregate book value of the assets to be
distributed, the manner of allocation of such assets to shareholders, and the effective date of the distribution. If a
distribution of Surplus is to be made in kind, we may, pursuant to a resolution of the board of directors or (as thecase may be) a general meeting of shareholders, grant the right to our shareholders to require us to make such
distribution in cash instead of in kind. If no such right is granted to shareholders, the relevant distribution of
Surplus must be approved by a special resolution of a general meeting of shareholders (see “—Voting Rights”
with respect to a “special resolution”).
Under our articles of incorporation, the record date for annual dividends and interim dividends is March 31
and September 30, respectively, in each year. In Japan, the “ex-dividend date” (the date from which purchasers ofshares through Japanese stock exchanges will not be entitled to the dividends to be paid to registeredshareholders as of any record date) and the record date for dividends precede the date of determination of theamount of the dividend to be paid. The ex-dividend date of the shares of common stock is generally the second
business day prior to the record date. Under our articles of incorporation, we are not obligated to pay any
distribution of Surplus to be made in cash which has not been received after the lapse of five years from thecommencement date of such distribution.
Restriction on Distribution of Surplus
Payment of annual dividends on shares of common stock is subject to the prior payment of dividends onshares of preferred stock of ¥20 per share of eleventh series class XI preferred stock. Payment of an interim
dividend on shares of our common stock is also subject to the prior payment of an interim preferred dividend of
one-half the annual preferred dividend amount on the shares of the series of preferred stock.
In making a distribution of Surplus, we must set aside in our additional paid-in capital and/or legal reserve
an amount equal to one-tenth of the amount of Surplus so distributed, until the sum of its additional paid-in
capital and legal reserve reaches one-quarter of its stated capital.
The amount of Surplus at any given time must be calculated in accordance with the following formula:
A + B + C + D - (E + F + G)
In the above formula:“A” = the total amount of other capital surplus and other retained earnings, each such amount being thatappearing on our non-consolidated balance sheet as of the end of the last fiscal year151

“B” = (if we have disposed of our treasury stock after the end of the last fiscal year) the amount of theconsideration for such treasury stock received by us less the book value thereof“C” = (if we have reduced our stated capital after the end of the last fiscal year) the amount of such
reduction less the portion thereof that has been transferred to additional paid-in capital or legal reserve (ifany)“D” = (if we have reduced our additional paid-in capital or legal reserve after the end of the last fiscal year)
the amount of such reduction less the portion thereof that has been transferred to stated capital (if any)“E” = (if we have cancelled our treasury stock after the end of the last fiscal year) the book value of suchtreasury stock“F” = (if we have distributed Surplus to our shareholders after the end of the last fiscal year) the total bookvalue of the Surplus so distributed“G” = certain other amounts set forth in an ordinance of the Ministry of Justice, including:•

if we have reduced Surplus and increased our stated capital, additional paid-in capital or legal reserve
after the end of the last fiscal year, the amount of such reduction; and•if we have distributed Surplus to shareholders after the end of the last fiscal year, the amount set aside in
our additional paid-in capital or legal reserve, if any, as required by ordinances of the Ministry ofJustice.

The aggregate book value of Surplus distributed by us may not exceed a prescribed distributable amount(the “Distributable Amount”), as calculated on the effective date of such distribution. The Distributable Amountat any given time shall be the amount of Surplus less the aggregate of (a) the book value of our treasury stock,(b) the amount of consideration for any of our treasury stock disposed of by us after the end of the last fiscal year
and (c) certain other amounts set forth in an ordinance of the Ministry of Justice, including (if the sum of onehalf of our goodwill and deferred assets exceeds the total of the stated capital, additional paid-in capital and legal
reserve, each such amount being the amount in our non-consolidated balance sheet as of the end of the last fiscal
year) all or certain part of such exceeding amount as calculated in accordance with the ordinances of the Ministryof Justice.
If we have become at our option a company with respect to which its consolidated balance sheet should also
be considered in the calculation of the Distributable Amount (renketsu haito kisei tekiyo kaisha), we shall further
deduct from the amount of Surplus the excess amount, if any, of (x) the total amount of the shareholders’ equity
appearing on our non-consolidated balance sheet as of the end of the last fiscal year and certain other amounts set
forth by an ordinance of the Ministry of Justice over (y) the total amount of the shareholders’ equity and certain
other amounts set forth by an ordinance of the Ministry of Justice appearing on our consolidated balance sheet asof the end of the last fiscal year. We did not opt for becoming such a company with respect to the fiscal year
ended March 31, 2014.
If we have prepared interim financial statements as described below, and if such interim financial statements
have been approved by the board of directors or (if so required by the Companies Act) by a general meeting ofshareholders, then the Distributable Amount must be adjusted to take into account the amount of profit or loss,
and the amount of consideration for any of our treasury stock disposed of by us, during the period in respect ofwhich such interim financial statements have been prepared. We may prepare non-consolidated interim financial
statements consisting of a balance sheet as of any date subsequent to the end of the last fiscal year and an income
statement for the period from the first day of the current fiscal year to the date of such balance sheet. Interim
financial statements so prepared by us must be audited by our corporate auditors and/or outside accounting
auditor, as required by an ordinance of the Ministry of Justice.

152

Capital and Reserves
We may reduce our additional paid-in capital or legal reserve generally by resolution of a general meetingof shareholders and, if so decided by the same resolution, may account for the whole or any part of the amount ofsuch reduction as stated capital. On the other hand, we may reduce our stated capital generally by special
resolution of a general meeting of shareholders and, if so decided by the same resolution, may account for thewhole or any part of the amount of such reduction as additional paid-in capital or legal reserve. In addition, we
may reduce our Surplus and increase either (i) stated capital or (ii) additional paid-in capital and/or legal reserveby the same amount, in either case by resolution of a general meeting of shareholders.
Stock Splits
We may at any time split shares of common stock into a greater number of shares of common stock bydetermination by executive officers under the authority delegated by resolution of the board of directors. When astock split is to be made, so long as our only class of outstanding stock is the common stock, we may increase thenumber of authorized shares in the same ratio as that of such stock split by amending our articles ofincorporation, of which amendment may be effected by resolution of the board of directors without approval byshareholders.
Unit Share System
We have adopted the unit share system under which shareholders will have one voting right for each unit ofshares consisting of 100 shares held by them at general meetings of shareholders or at meetings of holders of aparticular class of shares, and shares constituting less than a full unit will carry no voting rights. See “—Preferred
Stock—Voting Rights” for information on the voting rights that holders of preferred stock may have at general
meetings of shareholders. Our articles of incorporation provide that the holders of shares constituting less than afull unit will not have shareholder rights, except for those specified in an ordinance of the Ministry of Justicewhich include rights (i) to receive dividends, (ii) to receive cash or other assets in case of a consolidation or splitof shares, share exchange or share transfer, or merger or (iii) to be allotted rights to subscribe for free for new
shares and stock acquisition rights when such rights are granted to shareholders. Holders of shares constituting
less than a full unit may at any time request us to purchase such shares constituting less than a full unit (a) at thecurrent market price as determined pursuant to the Companies Act in cases of such shares having a market price(such as our common stock) or (b) at the price as determined through negotiations between the holders of sharesconstituting less than a full unit and us in cases where such shares have no market price (such as our preferredstock), which request may not be withdrawn without our consent. In addition, holders of shares constituting lessthan a full unit may require us to sell them such number of shares, which, when combined with the number ofshares already held by such holder, shall constitute a whole unit of shares; provided that we will be obliged tocomply with such request only when we own a sufficient number of shares to accommodate such request. As
prescribed in our share handling regulations, such requests shall be made through an account managing
institution at which such shareholder has its account and Japan Securities Depository Center, Inc. (“JASDEC”)
pursuant to the rules of JASDEC, without going through the notification procedure required for the exercise ofshareholders’ rights entitled regardless of record dates as described in “—Transfer of Shares.” The executive
officers under the authority delegated by the board of directors may reduce the number of shares constituting one
unit of shares or cease to use the unit share system by amendments to the articles of incorporation without aspecial resolution of the general meeting of shareholders which would otherwise be required.
General Meetings of Shareholders
The ordinary general meeting of shareholders shall be held no later than three months from the last day ofeach business year and is normally held in June of each year. In addition, we may hold an extraordinary general
meeting of shareholders whenever necessary. Notice of a general meeting of shareholders stating the place, thetime and the purpose thereof must be given to each shareholder having voting rights (or, in the case of a
non-resident shareholder, to its standing proxy or mailing address in Japan) at least two weeks prior to the dateset for the meeting. The record date for an ordinary general meeting of shareholders is March 31 of each year.
153Any shareholder holding at least 300 voting rights or 1% of the total number of voting rights for six months
or longer may propose a matter to be considered at a general meeting of shareholders by submitting a request to arepresentative director at least eight weeks prior to the date of such meeting. Any of the minimum percentages,
time periods and number of voting rights necessary for exercising the minority shareholder rights describedabove may be decreased or shortened if our articles of incorporation so provide.
Voting Rights
Our shareholders have one voting right for each unit of shares held by them (regarding the voting rights heldby holders of preferred stock, see “—Preferred Stock—Voting Rights”).
Except as otherwise provided by law or in our articles of incorporation, a resolution shall be adopted at a
general meeting of shareholders by a majority of the voting rights held by the shareholders present at themeeting. Our articles of incorporation provide that the quorum for election of directors is one-third of the total
number of voting rights. Our shareholders are not entitled to cumulative voting in the election of directors. A
shareholder may exercise its voting rights in writing or through a proxy, provided that the proxy shall also be aholder of our shares having voting rights at such meeting.
The Companies Act provides that certain important matters shall be approved by a “special resolution” of ageneral meeting of shareholders. Under our articles of incorporation, the quorum for a special resolution is
one-third of the total number of voting rights, and the approval of not less than two-thirds of the voting rights
held by the shareholders present at the meeting is required for adopting a special resolution. Such importantmatters include:
1.

any amendment to our articles of incorporation (except for such amendments that may be authorized byexecutive officers under the authority delegated by the board of directors under the Companies Act
such as (i) an increase of the number of authorized shares in the same ratio as that of a stock split, (ii) a
reduction of the number of shares per unit of shares and (iii) abolishing the unit share system);2.

our dissolution, merger or consolidation requiring shareholders’ approval;

3.

establishment of a parent and wholly-owned subsidiary relationship by way of a share transfer(kabushiki-iten) or share exchange (kabushiki-kokan) requiring shareholders’ approval;

4.

transfer of the whole or a substantial part of our business;

5.

taking over of the whole of the business of another company requiring shareholders’ approval;

6.

our corporate split requiring shareholders’ approval;

7.

consolidation of shares of common stock;8.

acquisition of shares of common stock by us from a specific shareholder other than our subsidiary;

9.

distribution of Surplus in kind (except when shareholders are granted the right to require to make such
distribution in cash instead of in kind);

10. issuance or transfer of new shares or existing shares held by us as treasury stock to persons other than
the shareholders at a “specially favorable” price; and11. issuance of stock acquisition rights (including those incorporated in bonds with stock acquisitionrights) to persons other than the shareholders at a “specially favorable” price or under “speciallyfavorable” conditions.
Liquidation Rights
In the event of our liquidation, the assets remaining after payment of all debts, liquidation expenses, taxes
and distributions of residual assets relating to the then outstanding preferred stock will be distributed among
holders of common stock in proportion to the respective numbers of shares held by them. See “—Preferred
Stock—Liquidation Rights.”154

Issue of Additional Shares and Pre-emptive Rights
Holders of the common stock have no pre-emptive rights. Authorized but unissued shares of common stock
may be issued at such times and upon such terms as executive officers under the authority delegated by the boardof directors determine, subject to the limitations as to the issuance of new shares of common stock at a “speciallyfavorable” price mentioned in “—Voting Rights.” In the case of an issuance or transfer of shares or stockacquisition rights by way of an allotment to a third party which would dilute the outstanding voting shares by
25% or more or change the controlling shareholder, in addition to a determination by the executive officers, theapproval of the shareholders or an affirmative opinion from a person independent of our management is generally
required pursuant to the regulations of the stock exchanges in Japan. Executive officers under the authority
delegated by the board of directors may, however, determine that shareholders of a particular class of stock shallbe given subscription rights to new shares of the same class, in which case they must be given on uniform terms
to all shareholders of that class as of a record date of which not less than two weeks’ prior public notice must be
given. Each of the shareholders to whom such rights are given must also be given at least two weeks’ prior noticeof the date on which such rights expire (but see “—Preferred Stock—Issue of Additional Shares and Pre-emptive
Rights” regarding our preferred stock).
Stock Acquisition Rights
We may issue stock acquisition rights (shinkabu yoyakuken). Holders of stock acquisition rights are entitledto acquire shares from us, upon payment of the applicable exercise price, and subject to other terms andconditions thereof. We may also issue bonds with stock acquisition rights (shinkabu yoyakuken-tsuki shasai). The
issuance of stock acquisition rights and bonds with stock acquisition rights may be authorized by executive
officers under the authority delegated by the board of directors unless it is made at a “specially favorable” priceor under “specially favorable” conditions, as described in “—Voting Rights.”
Record Date
As mentioned above, March 31 is the record date for the payment of annual dividends and the determinationof shareholders entitled to vote at the ordinary general meeting of shareholders. September 30 is the record date
for the payment of interim dividends. In addition, by a determination by executive officers under the authority
delegated by the board of directors and after giving at least two week’s prior public notice, we may at any time
set a record date in order to determine the shareholders who are entitled to certain rights pertaining to our stock.
JASDEC is required to give us notice of the names and addresses of our shareholders, the numbers of shares
held by them and other relevant information as of such record date promptly after we set each record date.
Acquisition by Us of Common Stock
We may acquire shares of common stock:1.

by way of purchase on any Japanese stock exchange on which the shares of our common stock arelisted or by way of tender offer (in either case pursuant to a resolution of the board of directors as longas our non-consolidated annual financial statements and certain documents for the latest fiscal year
fairly present our assets and profit and loss, as required by an ordinance of the Ministry of Justice);2.

from a specific shareholder other than any of our subsidiaries (pursuant to a special resolution of ageneral meeting of shareholders); or

3.

from any of our subsidiaries (pursuant to a determination by executive officers under the authority
delegated by the board of directors).

In the case of 2. above, any other shareholder may make a request to us to be included as a seller in the
proposed purchase, unless the purchase price or any other consideration to be received by the relevant specific155shareholder will not exceed the last trading price of the shares on the relevant stock exchange on the day
immediately preceding the date on which the resolution mentioned in 2. above was adopted (or, if there is no
trading in the shares on the stock exchange or if the stock exchange is not open on such day, the price at which
the shares are first traded on such stock exchange thereafter).
The total amount of the purchase price of shares of common stock may not exceed the Distributable
Amount, as described in “—Distribution of Surplus—Restriction on Distribution of Surplus.”
We may hold the shares of common stock acquired, and may generally transfer or cancel such shares by adetermination by executive officers under the authority delegated by the board of directors.
Disposal of Shares of Common Stock Held by Shareholders whose Location is Unknown
We are not required to send notices to a shareholder if notices given by us to such shareholder fail to arrive
for five consecutive years or more at its address registered in our register of shareholders or otherwise notified tous.
In the above case, if the relevant shareholder also fails to receive dividends on the shares continuously forfive years or more at its address registered in our register of shareholders or otherwise notified to us, then we
may in general dispose of such shares at their then market price and hold or deposit the proceeds of suchdisposition on behalf of the relevant shareholder.
Reporting of Substantial Shareholders
The Financial Instruments and Exchange Act and its related regulations require any person who has become,beneficially and solely or jointly, a holder of more than 5% of the total issued shares of capital stock of acompany that is listed on any Japanese stock exchange to file a report with the Director of the relevant Local
Finance Bureau of the Ministry of Finance within five business days. With certain exceptions, a similar reportmust also be filed in respect of any subsequent change of 1% or more in the holding or of any change in material
matters set forth in any previously filed reports. For this purpose, shares issuable to such person upon conversionof convertible securities or exercise of share subscription warrants or stock acquisition rights are taken into
account in determining both the number of shares held by the holder and the company’s total issued share capital.
Copies of each report must also be furnished to the company issuing the shares and to all the Japanese stock
exchanges on which the shares are listed.
There are other reporting requirements under the Banking Act. See “Item 4.B. Information on the
Company—Business Overview—Supervision and Regulation—Japan—Examination and Reporting Applicableto Shareholders.”
Holding of Shares of Our Common Stock by Foreign Investors
There are no limitations imposed by the laws of Japan, our articles of incorporation or our other constituent
documents on the rights of non-residents or foreign shareholders to hold or exercise voting rights on our shares ofcommon stock or preferred stock.
Transfer of Shares
At present, JASDEC is the only institution that is designated by the relevant authorities as a clearing house
which is permitted to engage in the clearing operations of listed shares under the Act on Book-Entry Transfer ofCorporate Bonds, Stocks, etc. (Act No. 75 of 2001, including regulations promulgated thereunder; the“Book-entry Act”). Under the clearing system above, in order for any person to hold, sell or otherwise dispose oflisted shares, such person must have an account at an account managing institution unless such person has an156

account at JASDEC. “Account managing institutions” are financial instruments business operators (i.e., securities
companies), banks, trust companies and certain other financial institutions which meet the requirements
prescribed by the Book-entry Act, and only those financial institutions that meet further stringent requirements of
the Book-entry Act can open accounts directly at JASDEC. Under the Book-entry Act, any transfer of shares iseffected through book entry, and title to the shares passes to the transferee at the time when the transferrednumber of the shares is recorded at the transferee’s account at an account managing institution. The holder of an
account at an account managing institution is presumed to be the legal owner of the shares held in such account.
Under the Companies Act and the Book-entry Act, in order to assert shareholders’ rights to which shareholders
as of record dates are entitled (such as the rights to vote at a general meeting of shareholders or receive
dividends) against us, a shareholder must have its name and address registered in our register of shareholders.
Under the clearing system, such registration is made upon our receipt of necessary information from JASDEC.
On the other hand, in order to assert shareholders’ rights to which shareholders are entitled regardless of record
dates such as minority shareholders’ rights including the right to propose a matter to be considered at a general
meeting of shareholders, except for shareholders’ rights to request us to purchase or sell shares constituting lessthan a full unit (as described in “—Unit Share System”), upon the shareholder’s request, JASDEC shall issue a
notice of certain information, including the name and address of such shareholder, to us. Thereafter, suchshareholder is required to present us a receipt of the request of the notice in accordance with our share handlingregulations. Under the Book-entry Act, the shareholder shall exercise such shareholders’ right within four weeks
after the notice above. Non-resident shareholders are required to appoint a standing proxy in Japan or provide a
mailing address in Japan. Each such shareholder must give notice of such standing proxy or mailing address to
the relevant account managing institution. Such notice will be forwarded to us through JASDEC. Japanese
securities companies and commercial banks customarily act as standing proxies and provide related services forstandard fees. Notices from us to non-resident shareholders are delivered to such standing proxies or mailingaddresses.
Under the clearing system, shares constituting less than one unit are transferable. Under the rules of theJapanese stock exchanges, however, shares constituting less than one unit do not comprise a trading unit, except
in limited circumstances, and accordingly may not be sold on Japanese stock exchanges.
Our transfer agent is Mizuho Trust & Banking, located at 2-1, Yaesu 1-chome, Chuo-ku, Tokyo 103-8670,
Japan.
The registered holder of deposited shares underlying the ADSs is the depositary for the ADSs. Accordingly,
holders of ADSs will not be able to directly assert their shareholders’ rights against us.
Preferred Stock
The following is a summary of information concerning the shares of our preferred stock, including briefsummaries of the relevant provisions of our articles of incorporation, our share handling regulations and theCompanies Act and certain related legislation, all as currently in effect. The detailed rights of our preferred stock
are set forth in our articles of incorporation and the resolutions of our board of directors or a determination by
executive officer(s) under the authority delegated by the board of directors relating to the issuance of the relevant
series of preferred stock.
GeneralUnder our articles of incorporation, we are authorized to issue 914,752,000 shares of class XI preferredstock, 900,000,000 shares of each of the first to fourth series of class XIV preferred stock (provided that theaggregate number of shares authorized to be issued with respect to the four series of class XIV preferred stock
may not exceed 900,000,000 shares), 900,000,000 shares of each of the first to fourth series of class XV
preferred stock (provided that the aggregate number of shares authorized to be issued with respect to the four
series of class XV preferred stock may not exceed 900,000,000 shares), 1,500,000,000 shares of each of the first157

to fourth series of class XVI preferred stock (provided that the aggregate number of shares authorized to beissued with respect to the four series of class XVI preferred stock may not exceed 1,500,000,000 shares).
As of March 31, 2014, 914,752,000 shares of eleventh series class XI preferred stock were issued.
Preferred Dividends
Payment of annual dividends on shares of common stock is subject to the prior payment on shares ofpreferred stock. The amount of preferred dividends for each series of the preferred stock is as follows:•

Eleventh series class XI preferred stock bears an annual non-cumulative dividend of ¥20 per share, andin the event we pay an interim dividend, holders are entitled to receive ¥10 per share in preference tocommon stock.

•

Each of the first to fourth series of class XIV preferred stock (currently not in issue) bears an annual
non-cumulative dividend of the amount to be determined by resolution of the board of directors or
determination by executive officer(s) under the authority delegated by the board of directors at the timeof issuance, up to a maximum of ¥100 per share, and in the event we pay an interim dividend, holders
are entitled to receive one half of such amount per share in preference to common stock.

•

Each of the first to fourth series of class XV preferred stock (currently not in issue) bears an annual
non-cumulative dividend of the amount to be determined by resolution of the board of directors or
determination by executive officer(s) under the authority delegated by the board of directors at the timeof issuance, up to a maximum of ¥100 per share, and in the event we pay an interim dividend, holders
are entitled to receive one half of such amount per share in preference to common stock.

•

Each of the first to fourth series of class XVI preferred stock (currently not in issue) bears an annual
non-cumulative dividend of the amount to be determined by resolution of the board of directors or
determination by executive officer(s) under the authority delegated by the board of directors at the timeof issuance, up to a maximum of ¥100 per share, and in the event we pay an interim dividend, holders
are entitled to receive one half of such amount per share in preference to common stock.

The amount of any preferred interim dividend will be deducted from the preferred dividend payable onpreferred stock in respect of the same fiscal year.
No payment of dividends on our preferred stock or any other stock may be made unless we have sufficient
Distributable Amount and a resolution to pay such dividend is obtained at the board of directors or at the relevant
general meeting of shareholders, as the case may be.
Dividends on our preferred stock are non-cumulative. If the full amount of any dividend is not declared on
our preferred stock in respect of any fiscal year, holders of our preferred stock do not have any right to receive
dividends in respect of the deficiency in any subsequent fiscal year, and we will have no obligation to pay the
deficiency or to pay any interest regardless of whether or not dividends are paid in respect of any subsequentfiscal year. The holders of our preferred stock are not entitled to any further dividends or other participation in or
distribution of surplus.
Liquidation Rights
In the event of our voluntary or involuntary liquidation, holders of our preferred stock will be entitled,equally in rank as among themselves and in preference over shares of common stock, to receive a distribution of¥1,000 per share out of our residual assets upon our liquidation.
Holders of our preferred stock are not entitled to any further dividends or other participation in or
distribution of our residual assets upon our liquidation.
158

Voting Rights
No holder of preferred stock has a right to receive notice of, or to vote at, a general meeting of shareholders,
except as otherwise specifically provided under the Companies Act or other applicable law or our articles ofincorporation. Under our articles of incorporation, holders of units of our preferred stock will be entitled toreceive notice of, and to vote at, general meetings of shareholders:•from the commencement of any ordinary general meeting of shareholders if an agenda for approval todeclare a preferred dividend is not submitted to such meeting (except in the case where a resolution of
the board of directors to pay the preferred dividends is made pursuant to our articles of incorporation
between the last day of the business year and the date of such meeting); or•from the close of any ordinary general meeting of shareholders if a proposed resolution to declare apreferred dividend is not approved at such meeting,until such time as a resolution of the board of directors to pay the preferred dividends is made pursuant to ourarticles of incorporation or a resolution of an ordinary general meeting of shareholders declaring a preferred
dividend is approved.
A separate resolution of a meeting of the holders of the preferred stock is required in order to approve thefollowing matters which would prejudice the interests of the holders of the relevant preferred stock:(i)an amendment to the articles of incorporation to add new classes of shares to be issued, alter theterms of the shares or increase the number of authorized number of shares or authorized number ofany class of shares, with certain exceptions;(ii)

consolidation or split of shares;(iii)

pro rated allocation of shares or stock acquisition rights to shareholders without any consideration;(iv)

granting pre-emptive rights for new shares or stock acquisition rights to shareholders;(v)amalgamations or mergers;(vi)

certain corporate splits;(vii)

share exchanges;(viii)

share transfers; and(ix)other matters set forth in the articles of incorporation.

Such separate resolution is not required when the articles of incorporation so provide, except in the case of(i) above.
A separate resolution of a meeting of the holders of the common stock is also required in cases where theabove matters would prejudice the interests of the holders of the common stock.
Under our articles of incorporation, in cases where a matter to be resolved at an ordinary general meeting ofshareholders is required to be approved by such separate resolution, the record date for the relevant meeting of
the holders of the common stock or the preferred stock, as the case may be, is the same date as the record date forthe ordinary general meeting of shareholders, when is March 31 of each year.
Ranking
We will not (unless the requisite sanction has been given by holders of preferred stock) create or issue anyother shares ranking, as regards order of participation in the profits or assets of us on a liquidation or otherwise,159

in priority to the preferred stock in issue, but we may issue, without obtaining the consent of holders of thepreferred stock in issue, other preferred stock ranking pari passu with the preferred stock in issue as regards theorder of such participation in profits or assets of us and carrying such rights as to rates of preferred dividends orterms of conversion as the board of directors may determine, subject to the limitations set forth in our articles ofincorporation and the Companies Act.
Acquisition of Preferred Stock
We may, if required, subject to regulatory approval, acquire any shares of the preferred stock thenoutstanding at any time out of the Distributable Amount (as defined in “—Common Stock—Restriction on
Distribution of Surplus”). On or after the date to be determined by a resolution of the board of directors or adetermination by executive officer(s) under the authority delegated by the board of directors relating to theissuance of the relevant preferred stock, we may also acquire all or a portion of each series of the first to fourth
series of class XV (currently not in issue) or the first to fourth series of class XVI preferred stock (currently notin issue) at the acquisition price to be determined by a resolution of the board of director or a determination by
executive officer(s) under the authority delegated by the board of directors relating to the issuance of the relevant
preferred stock on the date separately determined by a resolution of the board of director or a determination by
executive officer(s) under the authority delegated by the board of directors, without consent of the holders ofsuch preferred stock. When a portion of a certain class of preferred stock is acquired, such acquisition shall bemade from each holder thereof in number of shares determined by way of a lot or pro rata allocation.
Stock Splits
Our articles of incorporation provide that no stock split, stock consolidation or free distribution of stock
shall be made in respect of the preferred stock unless otherwise provided for in any law or regulation.
Issue of Additional Shares and Pre-emptive Rights
Our articles of incorporation provide that no holder of our preferred stock has any pre-emptive right tosubscribe for or purchase shares, stock acquisition rights or bonds with stock acquisition rights in the event of anissuance of additional shares or bonds and that no free distribution of stock acquisition rights may be made to theholders of our preferred stock.
Conversion
Our articles of incorporation provide that holders of class XI, the first to fourth series of class XIV(currently not in issue) or the first to fourth series of class XV (currently not in issue) preferred stock may, attheir option, convert their shares to common stock by requesting us to acquire such shares and issue or transfer
common stock to them. Other classes of our preferred stock are non-convertible.
Our articles of incorporation also provide that class XI, the first to fourth series of class XIV (currently notin issue) or the first to fourth series of class XV (currently not in issue) preferred stock outstanding on the last
day of the acquisition period will be mandatorily acquired by us on the immediately following day (the“mandatory conversion date”) in consideration of shares of common stock of which number shall be calculated at
the then-current market price per share of our common stock (the “mandatory conversion price”).
Eleventh series class XI preferred stock may, at the option of the holder thereof, be acquired at any timefrom July 1, 2008 to June 30, 2016 in consideration of shares of common stock of which number shall becalculated at ¥282.90 per share, subject to anti-dilution adjustments due to, among other things, issuance of newshares of our common stock at issue price below the market price. For the purpose of determining the mandatory
conversion price and the conversion price adjusted pursuant to the anti-dilution clause, the market price shallmean the average price of daily closing prices of our common stock on the Tokyo Stock Exchange for the160

30 consecutive trading days commencing on the 45th trading day prior to the mandatory conversion date or thedate on which the conversion price after the adjustment becomes effective, respectively. Anti-dilution
adjustments are triggered upon an issuance of common stock at prices that are lower than the then current market
price, stock splits and free allotments of common stock, and other similar events, so that the impact of these
events are properly reflected in the conversion price.
The anti-dilution adjustments will generally be made in accordance with the following formula.

Conversion
price after=
adjustment(1)Number ofshares ofConversion
common stock+
price before × already issued
adjustment(1)Number of shares ofcommon stock already +issuedNumber of shares ofSubscription
common stock× money per
to be newly issued
share
Current market price per share
Number of shares ofcommon stock to be newly
issuedNote:(1) Conversion of the preferred stock is conducted through the acquisition of the relevant shares of preferredstock by us followed by the delivery of the applicable number of shares of common stock. As such, the word
“acquisition” is used in lieu of “conversion” in our articles of incorporation.
Acquisition of Preferred Stock without Consideration or in Exchange for Common Stock
In order to enable the relevant preferred stock to meet the criteria for inclusion in Additional Tier 1 capital
under the capital adequacy guidelines which was revised by the Financial Services Agency, with effect as fromMarch 31, 2013, to reflect the Basel III rules, the first to fourth series of class XIV (currently not in issue), thefirst to fourth series of class XV (currently not in issue) and the first to fourth series of class XVI (currently not in
issue) preferred stock have the following feature.
In respect of the first and second series of class XIV(currently not in issue), the first and second series ofclass XV (currently not in issue) and the first and second series of class XVI (currently not in issue) preferredstock, upon the occurrence of an event determined by a resolution of the board of directors or a determination by
executive officer(s) under the authority delegated by the board of directors relating to the issuance of the relevant
preferred stock as an event where a write-off of the relevant preferred stock or a conversion of the relevant
preferred stock into common stock, or financial support or other similar measures taken by a public sector,
without which we would become non-viable, is determined to be necessary, we shall mandatorily acquire therelevant preferred stock, in whole, free of consideration, on a date which falls after the occurrence of such event
as determined by the resolution of the board of directors or a determination by executive officer(s) under theauthority delegated by the board of directors relating to the issuance of the relevant preferred stock and whichdate shall be separately determined by a resolution of the board of directors or a determination by executive
officer(s) under the authority delegated by the board of directors after the issuance of the relevant preferred stock,or a date which falls after the occurrence of the relevant certain event and which date shall be determined by the
resolution of the board of directors or a determination by executive officer(s) under the authority delegated by theboard of directors relating to the issuance of the relevant preferred stock, giving due consideration to the capital
adequacy requirements applicable to us and other factors.
In respect of the third and fourth series of class XIV (currently not in issue), the third and fourth series ofclass XV (currently not in issue) and the third and fourth series of class XVI (currently not in issue) preferredstock, upon the occurrence of an event determined by a resolution of the board of directors or a determination by
executive officer(s) under the authority delegated by the board of directors relating to the issuance of the relevant
preferred stock as an event where a write-off of the relevant preferred stock or a conversion of the relevant161preferred stock into common stock, or financial support or other similar measures taken by a public sector,
without which we would become non-viable, is determined to be necessary, we shall mandatorily acquire therelevant preferred stock, in whole, on a date which falls after the occurrence of such event as determined by the
resolution of the board of directors or a determination by executive officer(s) under the authority delegated by theboard of directors relating to the issuance of the relevant preferred stock and which date shall be separately
determined by a resolution of the board of directors or a determination by executive officer(s) under the authority
delegated by the board of directors after the issuance of the relevant preferred stock, or a date which falls after
the occurrence of the relevant certain event and which date shall be determined by the resolution of the board of
directors or a determination by executive officer(s) under the authority delegated by the board of directors
relating to the issuance of the relevant preferred stock, giving due consideration to the capital adequacy
requirements applicable to us and other factors, and instead, we shall deliver our own common stock to holdersof the relevant preferred stock. In this case, the terms of acquisition, including the number of shares of thecommon stock to be delivered in exchange for the acquisition of one (1) share of the relevant preferred stock,shall be determined by the resolution of the relevant board of directors or the determination by relevant executive
officer(s) under the authority delegated by the board of directors relating to the issuance of the relevant preferredstock, giving due consideration to the market price of common stock, the subscription price of the relevant
preferred stock and other factors.
10.C. Material Contracts
There were no material contracts entered into by us for the two years preceding the filing of this annual
report that were not entered into in the ordinary course of business.
10.D. Exchange Controls
Foreign Exchange and Foreign Trade Act
The Foreign Exchange and Foreign Trade Act of Japan and the cabinet orders and ministerial ordinances
incidental thereto, collectively the Foreign Exchange Act, set forth, among other matters, the regulations relating
to the receipt by non-residents of Japan of payment with respect to shares to be issued by us and the acquisitionand holding of shares by non-residents of Japan and foreign investors, both as defined below. It also applies insome cases to the acquisition and holding of ADSs representing such shares acquired and held by non-residents
of Japan and by foreign investors. Generally, the Foreign Exchange Act currently in effect does not affect theright of a non-resident of Japan to purchase or sell ADSs outside Japan for non-Japanese currency.
“Non-residents of Japan” are defined as individuals who are not resident in Japan and corporations whose
principal offices are located outside Japan. Generally, the branches and offices of non-resident corporations thatare located in Japan are regarded as residents of Japan while the branches and offices of Japanese corporations
located outside Japan are regarded as non-residents of Japan.
“Foreign investors” are defined as:•

individuals not resident in Japan;•

judicial persons or other organizations that are organized under the laws of foreign countries or whose
principal offices are located outside Japan;•

corporations of which 50% or more of the shares are held by individuals not resident of Japan and/or
judicial persons or other organizations that are organized under the laws of foreign countries or whose
principal offices are located outside Japan; and•judicial persons or other organizations, a majority of officers (or a majority of officers having the powerof representation) of which are non-resident individuals.

162

Dividends and Proceeds of Sales
Under the Foreign Exchange Act, dividends paid on, and the proceeds of sales in Japan of, shares held by
non-residents of Japan may in general be converted into any foreign currency and repatriated abroad. The
acquisition of our shares by non-residents of Japan by way of a stock split is not subject to any notification orreporting requirements.
Acquisition of Shares
In general, a non-resident of Japan who acquires shares from a resident of Japan is not subject to any priorfiling requirement, although the Foreign Exchange Act empowers the Minister of Finance of Japan to requireprior approval for any such acquisition in certain limited circumstances. While such prior approval is not
required in general, in the case where a resident of Japan transfers shares of a Japanese company forconsideration exceeding ¥100 million to a non-resident of Japan, the resident of Japan that transfers the shares isrequired to report the transfer to the Minister of Finance of Japan within 20 days from the date of the transfer orthe date of the payment for such transfer, whichever is later, unless the transfer is made through a bank or
financial instruments business operator licensed or registered under Japanese law.
If a foreign investor acquires our shares and, together with parties who have a special relationship with that
foreign investor, holds 10% or more of our issued shares as a result of such acquisition, the foreign investor mustfile a report of such acquisition with the Minister of Finance and any other competent Minister on or before the15th day of the month following the month in which the acquisition was made, in principle. In certain limited
circumstances, however, a prior notification of such acquisition must be filed with the Minister of Finance andany other competent Minister, who may modify or prohibit the proposed acquisition.
Deposit and Withdrawal under American Depositary Facility
The deposit of shares with Mizuho Bank, in its capacity as custodian and agent for the depositary, in Tokyo,
the issuance of ADSs by the depositary to a non-resident of Japan in respect of the deposit and the withdrawal of
the underlying shares upon the surrender of the ADR are not subject to any of the formalities or restrictions
referred to above. However, where as a result of a deposit or withdrawal the aggregate number of shares held by
the depositary, including shares deposited with Mizuho Bank as custodian for the depositary, or the holder
surrendering the ADR, as the case may be, would be 10% or more of the total outstanding shares, a report will be
required, and in specified circumstances, a prior notification may be required, as noted above.
10.E. Taxation
Japanese Taxation
The following is a general summary of major Japanese tax consequences (limited to national tax) to holdersof shares of our common stock or ADSs representing shares of our common stock who are non-residents of Japanor non-Japanese corporations without a permanent establishment in Japan, which we refer to as “non-resident
holders” in this section. The statements regarding Japanese tax laws set forth below are based on the laws andtreaties in force and as interpreted by the Japanese tax authorities as at the date of this Annual Report and are
subject to changes in the applicable Japanese laws or tax treaties, conventions or agreements, or interpretations
thereof, occurring after that date. This summary is not exhaustive of all possible tax considerations that may
apply to a particular investor, and potential investors are advised to satisfy themselves as to the overall tax
consequences of the acquisition, ownership and disposition of shares of our common stock or ADSs, including
specifically the tax consequences under Japanese law, the laws of the jurisdiction of which they are resident, andany tax treaty, convention or agreement between Japan and their country of residence, by consulting their own
tax advisers.
For the purpose of Japanese tax law and the tax treaty between the United States and Japan, a U.S. holder of
ADSs will generally be treated as the owner of the shares underlying the ADSs evidenced by the ADRs.
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Generally, a non-resident holder of shares of our common stock or ADSs is subject to Japanese income tax
collected by way of withholding on dividends paid by us, and such tax will be withheld prior to payment ofdividends. Stock splits are, in general, not a taxable event.
In the absence of any applicable tax treaty, convention or agreement reducing the maximum rate of Japanese
withholding tax or allowing exemption from Japanese withholding tax, the rate of Japanese withholding tax
applicable to dividends paid by Japanese corporations on their shares of stock to non-resident holders is generally
20.42% under Japanese tax law. However, with respect to dividends paid on listed shares issued by a Japanese
corporation (such as shares of our common stock or ADSs) to non-resident holders, other than any individual
shareholder who holds 3% or more of the total number of shares issued by the relevant Japanese corporation, theaforementioned 20.42% withholding tax rate is reduced to 15.315% for dividends due and payable on or before
December 31, 2037. Due to the imposition of a special additional withholding tax (2.1% of the original
withholding tax amount) to secure funds for reconstruction from the Great East Japan Earthquake, the original
withholding tax rate of 15% and 20%, as applicable, has been effectively increased, respectively, to 15.315% and20.42%, during the period beginning on January 1, 2013 and ending on December 31, 2037.
Under the income tax treaty between the United States and Japan, the maximum rate of Japanese
withholding tax which may be imposed on dividends paid to a qualified United States resident eligible to enjoy
treaty benefits that is either a corporation owning, directly or indirectly, less than 10% of the voting stock of aJapanese corporation or an individual is generally reduced to 10% of the gross amount actually distributed,
except where such United States resident conducts business in Japan through a permanent establishment situatedtherein and the holding in respect of which the dividends are paid is effectively connected with such permanentestablishment. Dividends paid to pension funds which are qualified United States residents eligible to enjoy
treaty benefits are exempt from Japanese income taxation by way of withholding or otherwise unless such
dividends are derived from the carrying on of a business, directly or indirectly, by such pension funds. Under
Japanese tax law, any reduced maximum rate applicable under a tax treaty shall be available when suchmaximum rate is below the rate otherwise applicable under the Japanese tax law referred to in the preceding
paragraph with respect to the dividends to be paid by us on shares of our common stock or ADSs. A non-resident
holder of shares of our common stock who is entitled, under any applicable tax treaty, to a reduced rate ofJapanese withholding tax, or exemption therefrom, as the case may be, is required to submit an Application Formfor Income Tax Convention Regarding Relief from Japanese Income Tax and Special Income Tax for
Reconstruction on Dividends (together with any other required forms and documents) in advance, through thewithholding agent, to the relevant tax authority before payment of dividends. A standing proxy for a non-resident
holder may provide such application service. In addition, a certain simplified special filing procedure is available
for non-resident holders to claim treaty benefits of exemption from or reduction of Japanese withholding tax,
with respect to dividends paid on or after January 1, 2014, by submitting a Special Application Form for Income
Tax Convention Regarding Relief from Japanese Income Tax and Special Income Tax for Reconstruction on
Dividends of Listed Stocks (together with any other required forms and documents). With respect to ADSs, thisreduced rate or exemption will be applicable to non-resident holders of ADSs if the depositary or its Agentsubmits two Application Forms (one before payment of dividends and the other within eight months after therecord date concerning such payment of dividends ), together with certain other documents. To claim thisreduced rate or exemption, non-resident holders of ADSs will be required to file a proof of taxpayer status,
residence and beneficial ownership, as applicable, and to provide other information or documents as may berequired by the depositary. Non-resident holders who are entitled, under any applicable tax treaty, to a reduced
rate of Japanese withholding tax below the rate otherwise applicable under Japanese tax law, or exemption
therefrom, as the case may be, but fail to submit the required application in advance may nevertheless be entitled
to claim a refund from the relevant Japanese tax authority of withholding taxes withheld in excess of the rate
under an applicable tax treaty (if such non-resident holders are entitled to a reduced treaty rate under theapplicable tax treaty) or the full amount of tax withheld (if such non-resident holders are entitled to an exemption
under the applicable tax treaty), as the case may be, by complying with a certain subsequent filing procedure.

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We do not assume any responsibility to ensure withholding at the reduced rate, or exemption therefrom, for
non-resident holders who would be so eligible under an applicable tax treaty but where the required proceduresas stated above are not followed.
Gains derived from the sale or other disposition of shares of our common stock or ADSs outside Japan by anon-resident holder, who is a portfolio investor, are not, in general, subject to Japanese income tax or corporationtax.
Any deposits or withdrawals of shares of our common stock by a non-resident holder in exchange for ADSs
are, in general, not subject to Japanese income or corporation tax.
Japanese inheritance and gift taxes, at progressive rates, may be payable by an individual who has acquired
our shares of our common stock or ADSs from an individual, as a legatee, heir or donee, even if none of theacquiring individual, the decedent or the donor is a Japanese resident.
U.S. Taxation
The following sets forth the material United States federal income tax consequences of the ownership ofshares and ADSs as of the date hereof. The discussion set forth below is applicable to U.S. holders (as defined
below) (i) who are residents of the United States for purposes of the current income tax treaty between Japan andthe United States (the “Treaty”), (ii) whose shares or ADSs are, for purposes of the Treaty, neither effectively
connected with nor attributable to a permanent establishment in Japan and (iii) who otherwise qualify for the full
benefits of the Treaty.
The following summary is not a complete analysis or description of all potential U.S. federal income tax
consequences to a particular U.S. holder. It does not address all U.S. federal income tax considerations that may
be relevant to all categories of potential purchasers, certain of which (such as banks or other financial
institutions, insurance companies, dealers in securities or currencies, tax-exempt entities, non-U.S. persons,
persons holding a share or an ADS as part of a “straddle,” “hedge,” conversion or integrated transaction,
partnerships or other pass-through entities for U.S. federal income tax purposes, traders in securities who haveelected the mark-to-market method of accounting for their securities, regulated investment companies, real estate
investment trusts, holders whose “functional currency” is not the U.S. dollar, holders liable for alternative
minimum tax and holders of 10% or more of our voting shares) are subject to special tax treatment. Thissummary does not address any foreign, state, local or other tax consequences of investments in our shares or
ADSs.
This summary addresses only shares or ADSs held as capital assets.
As used herein, a “U.S. holder” is a beneficial owner of shares or ADSs, as the case may be, that is, for U.S.
federal income tax purposes:•

an individual citizen or resident of the United States;•

a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created ororganized in or under the laws of the United States or any political subdivision thereof;•an estate, the income of which is subject to U.S. federal income tax regardless of its source; or•a trust if it (1) is subject to the primary supervision of a court within the United States and the control of
one or more U.S. persons as described in Section 7701(a)(30) of the Code or (2) has a valid election in
effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership holds shares or ADSs, the tax treatment of a partner will generally depend on the status of
the partner and the activities of the partnership. If you are a partner of a partnership holding shares or ADSs, you
should consult your tax advisor.
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The discussion below is based upon the provisions of the Internal Revenue Code of 1986, as amended (the“Code”), and regulations, rulings and judicial decisions thereunder as of the date hereof, and such authorities
may be replaced, revoked or modified so as to result in U.S. federal income tax consequences different fromthose discussed below. In addition, this summary is based, in part, upon representations made by the depositary
to us and assumes that the deposit agreement, and all other related agreements, will be performed in accordancewith their terms.
We urge U.S. holders to consult their own tax advisors concerning the U.S. federal, state and local and othertax consequences to them of the purchase, ownership and disposition of shares or ADSs.
ADSs
If a U.S. holder holds ADSs, for U.S. federal income tax purposes, such holder will generally be treated as
the owner of the underlying shares that are represented by such ADSs. Accordingly, deposits or withdrawals ofshares in exchange for ADSs are not subject to U.S. federal income tax.
Taxation of Dividends
Subject to the discussion under “—U.S. Taxation—Passive Foreign Investment Company Rules” below, thegross amount of any distribution received with respect to our shares or ADSs (including amounts withheld toreflect Japanese withholding taxes), will be taxable as dividends, to the extent paid out of the current oraccumulated earnings and profits (as determined for U.S. federal income tax purposes). The amount of
distribution of property other than cash will be the fair market value of such property on the date of the
distribution. Such cash or non-cash income, including withheld taxes, will be includable in a U.S. holder’s grossincome as ordinary income on the day actually or constructively received by such U.S. holder in the case ofshares, or by the depositary, in the case of ADSs. Such dividends received by a U.S. holder will not be eligible
for the “dividends-received deduction” allowed to U.S. corporations in respect of dividends received from other
U.S. corporations. To the extent that an amount received by a U.S. holder exceeds such holder’s allocable shareof our current and accumulated earnings and profits, such excess will be applied first to reduce such holder’s tax
basis in its shares or ADSs, thereby increasing the amount of gain or decreasing the amount of loss recognized ona subsequent disposition of the shares or ADSs. Then, to the extent such distribution exceeds such U.S. holder’stax basis, such excess will be treated as capital gain. However, we do not expect to keep earnings and profits inaccordance with U.S. federal income tax principles. Therefore, U.S. holders should expect that a distribution will
generally be treated as a dividend.
The amount of the dividend paid in Japanese yen will be the U.S. dollar value of the Japanese yen payments
received. This value will be determined at the spot Japanese yen/U.S. dollar rate on the date the dividend isreceived by the depositary in the case of U.S. holders of ADSs, or by the shareholder in the case of U.S. holdersof shares, regardless of whether the dividend payment is in fact converted into U.S. dollars at that time. If theJapanese yen received as a dividend are not converted into U.S. dollars on the date of receipt, a U.S. holder will
have basis in such Japanese yen equal to their dollar value on the date of receipt, and any foreign currency gains
or losses resulting from the conversion of the Japanese yen will generally be treated as U.S. source ordinary
income or loss.
The maximum rate of withholding tax on dividends paid to you pursuant to the treaty is 10%. As discussed
under “—Taxation” above, if the Japanese statutory rate is lower than the maximum applicable Treaty rate, theJapanese statutory rate will be applicable. If the statutory rate applicable to you is higher than the maximum
Treaty rate, you will be required to properly demonstrate to us and the Japanese tax authorities your entitlement
to the reduced withholding rate under the Treaty. Subject to certain limitations, the Japanese tax withheld may becreditable against the U.S. holder’s U.S. federal income tax liability or may be claimed as a deduction from the
U.S. holder’s federal adjusted gross income provided that the U.S. holder elects to deduct all foreign taxes paidon the same taxable year. For foreign tax credit limitation purposes, the dividend will be income from sources
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outside the United States. The limitation on foreign taxes eligible for credit is calculated separately with respect
to specific classes of income. For this purpose, dividends we pay will generally constitute “passive category
income.” Further, in certain circumstances, if a U.S. holder:•

has held shares or ADSs for less than a specified minimum period during which such U.S. holder is notprotected from the risk of loss; or•is obligated to make payments related to the dividends,

such U.S. holder will not be allowed a foreign tax credit for foreign taxes imposed on dividends paid on shares or
ADSs. The rules governing U.S. foreign tax credits are very complex and U.S. holders should consult their tax
advisors regarding the availability of foreign tax credits under their particular circumstances.
With respect to non-corporate U.S. investors, certain dividends received from a qualified foreign
corporation may be subject to reduced rates of taxation. A qualified foreign corporation includes a corporationthat is eligible for the benefits of a comprehensive income tax treaty with the United States which the U.S.
Treasury Department determines to be satisfactory for these purposes and which includes an exchange of
information provision. The U.S. Treasury Department has determined that the Treaty meets these requirements.
In addition, it is expected that we will be eligible for the benefits of the Treaty. A foreign corporation is also
treated as a qualified foreign corporation with respect to individuals paid by that corporation on shares (or ADSs
backed by such shares) that are readily tradable on an established securities market in the United States. UnitedStates Treasury Department guidance indicates that our ADSs (which are listed on the New York Stock
Exchange), but not the shares, are readily tradable on an established securities market in the United States. Therecan be no assurance that our ADSs will be considered readily tradable on an established securities market in later
years. Non-corporate holders who do not meet a minimum holding period requirement during which they are notprotected from a risk of loss or that elect to treat the dividend income as “investment income” pursuant to
Section 163(d)(4) of the Code will not be eligible for the reduced rates of taxation. In addition, the rate reduction
will not apply to dividends if the recipient of a dividend is obligated to make related payments with respect topositions in substantially similar or related property. This disallowance applies even if the minimum holding
period has been met. U.S. holders should consult their own tax advisors regarding the application of theforegoing rules to their particular circumstances.
Taxation of Capital Gains
Subject to the discussion under “—U.S. Taxation—Passive Foreign Investment Company Rules” below,
upon a sale or other disposition of shares or ADSs, a U.S. holder will recognize gain or loss in an amount equal
to the difference between the U.S. dollar value of the amount realized and the U.S. holder’s tax basis, determinedin U.S. dollars, in such shares or ADSs. Such gain or loss will be capital gain or loss and will be long-term
capital gain or loss if the U.S. holder’s holding period for such shares or ADSs exceeds one year. A U.S. holder’stax basis in its shares or ADSs will generally be the cost to the holder of such shares or ADSs. Any such gain orloss realized by a U.S. holder upon disposal of the shares or ADSs will generally be income or loss from sources
within the United States for foreign tax credit limitation purposes. The deductibility of capital losses is subject tolimitations.
Passive Foreign Investment Company Rules
Based on our projected composition of income and valuation of assets, including goodwill, we do notbelieve that we will be a passive foreign investment company (“PFIC”) for this year and do not expect to become
one in the future, although there can be no assurance in this regard. However, PFIC status is a factual
determination that is made annually. Accordingly, it is possible that we may become a PFIC in the current or any
future taxable year due to changes in valuation or composition of our income or assets. In addition, thisdetermination is based in part upon certain proposed U.S. Treasury regulations that are not yet in effect (the“Proposed Regulations”) and are subject to change in the future. The Proposed Regulations and other167administrative pronouncements from the Internal Revenue Service (the “IRS”) provide special rules fordetermining the character of income and assets derived in the banking business for purposes of the PFIC rules.
Although we believe we have adopted a reasonable interpretation of the Proposed Regulations and administrative
pronouncements, there can be no assurance that the IRS will follow the same interpretation.
In general, a foreign corporation is considered a PFIC for any taxable year if either:•at least 75% of its gross income is passive income; or•at least 50% of the value of its assets is attributable to assets that produce or are held for the productionof passive income.

The 50% of value test is based on the average of the value of our assets for each quarter during the taxable
year. If we own at least 25% by value of another company’s stock, we will be treated, for purposes of the PFIC
rules, as owning the proportionate share of the assets and receiving our proportionate share of the income of thatcompany.
If we are a PFIC for any taxable year during which a U.S. holder holds shares or ADSs, the U.S. holder will
be subject to special tax rules with respect to any “excess distribution” that the U.S. holder receives and any gain
the U.S. holder realizes from the sale or other disposition (including a pledge) of shares or ADSs. Additionally,
non-corporate U.S. holders will not be eligible for reduced rates of taxation on any dividends received from us if
we are a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year.
These special tax rules generally will apply even if we cease to be a PFIC in future years. Distributions
U.S. holders receive in a taxable year that are greater than 125% of the average annual distributions they received
during the shorter of the three preceding taxable years or their holding period for shares or ADSs will be treatedas excess distributions. Under these special tax rules:•

the excess distribution or gain will be allocated ratably over the U.S. holder’s holding period for sharesor ADSs;•

the amount allocated to the current taxable year, and any taxable year prior to the first taxable year inwhich we were a PFIC, will be treated as ordinary income; and•the amount allocated to each other year will be subject to tax at the highest tax rate in effect for thatyear, and the interest charge generally applicable to underpayments of tax will be imposed on the
resulting tax attributable to each such year.

Alternatively, a U.S. holder could make a mark-to-market election provided that shares or ADSs are
regularly traded on a qualified exchange. Under current law, the mark-to-market election may be available to
U.S. holders of ADSs because the ADSs are listed on the New York Stock Exchange which constitutes aqualified exchange, although there can be no assurance that the ADSs will be “regularly traded” for purposes ofthe mark-to-market election. Under current law, the mark-to-market election may be available to U.S. holders ofshares because the shares are listed on the Tokyo Stock Exchange, which constitutes a qualified exchange,
although there can be no assurance that the shares will be “regularly traded” for purposes of the mark-to-market
election. In addition, a U.S. holder of shares in a PFIC can sometimes avoid the rules described above by electing
to treat the company as a “qualified electing fund” under Section 1295 of the Code. This option is not available to
U.S. holders of shares because we do not intend to comply with the requirements necessary to permit
U.S. holders to make this election.
If a U.S. holder holds shares or ADSs in any year in which we are classified as a PFIC, such holder may berequired to file IRS Form 8621.

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U.S. holders should consult their own tax advisors concerning the determination of our PFIC status and the
U.S. federal income tax consequences of holding shares or ADSs if we are considered a PFIC in any taxable
year.
Information Reporting and Backup Withholding
In general, information reporting requirements will apply to dividends in respect of the shares or ADSs or
the proceeds from the sale, exchange or redemption of the shares or ADSs paid within the United States, and, insome cases, outside of the United States, to you, unless you are an exempt recipient. In addition, backup
withholding tax may apply to those amounts if you fail to provide an accurate taxpayer identification number or
fail either to report interest and dividends required to be shown on your U.S. federal income tax returns or makecertain certifications. The amount of any backup withholding from a payment to you will be allowed as a refundor credit against your U.S. federal income tax liability, provided you furnish the required information to the IRS.
Certain U.S. holders are required to report information with respect to their investment in shares or ADSs
not held in an account maintained by certain financial institution to the IRS. Investors who fail to report required
information by attaching a complete IRS Form 8938, Statement of Specified Foreign Financial Assets, on theirtax return for each year in which they hold shares or ADSs could become subject to substantial penalties.
Potential investors are urged to consult with their own tax advisors regarding the possible implications of theserules on their investment in shares or ADSs.
10.F. Dividends and Paying Agents
Not applicable.
10.G. Statement by Experts
Not applicable.
10.H. Documents on Display
We file annual reports on Form 20-F with, and furnish periodic reports on Form 6-K to, the U.S. Securities
and Exchange Commission. These reports, including this annual report on Form 20-F and the exhibits thereto,and other information can be inspected without charge at the Commission’s Public Reference Room at 100 F
Street, N.E., Washington, D.C. 20549. You can also obtain copies of such materials by mail, at prescribed fees,from the Commission’s Public Reference Room or from commercial document retrieval services. You may
obtain information on the operation of the Commission’s Public Reference Room by calling the Securities andExchange Commission in the United States at 1-800-SEC-0330. You can also access to the documents filed via
the Electronic Data Gathering, Analysis, and Retrieval system on the Commission’s website(http://www.sec.gov).
10.I. Subsidiary Information
Not applicable.

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ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Progress in financial deregulation and internationalization has led to growth in the diversity and complexityof banking operations, exposing financial institutions to various risks, including credit, market operations,information technology, legal, settlement and other risks. We recognize the conducting of operations tailored to
the risks and managing such risks as a key issue relating to overall management. In order to implement ourbusiness strategy while maintaining our financial stability, we maintain comprehensive risk management andcontrol measures. We maintain basic policies for risk management established by our board of directors that are
applicable to the entire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth
the organizational structure and provide for the human resources training necessary for appropriate levels of risk
management. The policies also provide for audits to measure the effectiveness and suitability of the risk
management structure. In line with these basic policies, we maintain various measures to strengthen and enhance
the sophistication of our risk management system. All yen figures and percentages in this item are truncated.
Accordingly, the total of each column of figures may not be equal to the total of the individual items.
Approach to the Basel Regulatory Framework
The Basel Regulatory Framework, the regulations for international standards of the health of banks, havebeen revised in light of developments in risk management methods in order to better reflect the actual substanceof the risks. We have been calculating capital adequacy ratios based on these regulations, known as “Basel II,”
from March 31, 2007, when it was implemented in Japan. Basel II requires the observance of three main points.
The first is minimum capital requirements relating to risk which should be maintained by banks. The second
includes a supervisory review process with respect to assessment of risks that cannot be fully addressed throughminimum capital requirements alone. The third is market discipline allowing for assessment by the market
through appropriate disclosure. We have been calculating our capital adequacy ratios by applying the AIRB
approach for the calculation of credit risk from March 31, 2009 and the AMA for the calculation of operationalrisk from September 30, 2009. Due to the strengthening of the Basel II framework, we revised the calculation
methods with regard to our securitization products and trading activities from December 31, 2011, when suchstrengthening was implemented in Japan. In December 2010, the Basel III rules text was issued, pursuant towhich the raising of capital requirement levels and the quality of capital were required and risk coverage wasenhanced. In Japan, from March 31, 2013, the new minimum capital requirements began to be phased in, and wehave been calculating capital adequacy ratios based on the revisions to capital adequacy guidelines published by
the Financial Services Agency. We have been identified as a G-SIB by the Financial Stability Board inNovember 2013. In case we are to be identified as a G-SIB in or after November 2014, the stricter capitalrequirements will be applied. Based on the Basel III framework, liquidity and leverage ratio regulation isscheduled to be implemented in the future. We are currently preparing for such implementation.
Overview of Risk Management
Risk Management Structure
Each of our subsidiaries adopts appropriate risk management measures for its business based on the size andnature of its risk exposures, while Mizuho Financial Group controls risk management for the Mizuho group as awhole. Mizuho Financial Group regularly receives reports and applications concerning the risk management
situation from our principal banking subsidiaries and other core group companies and gives them appropriate
instructions concerning risk management. Our principal banking subsidiaries and other core group companies
each maintains its own system for managing various types of risk, regularly receiving reports on the status of risk
at their respective subsidiaries, and gives them appropriate instructions concerning risk management.
Basic Approach
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk,
liquidity risk and operational risk, and manage each type of risk according to its characteristics. In addition to170managing each type of risk individually, we have established a risk management structure to identify andevaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms. In line with the basic policies relating tooverall risk management laid down by Mizuho Financial Group, companies within the Mizuho group identify
risk broadly and take a proactive and sophisticated approach to risk management, including methodologies for
operations that involve exposures to multiple categories of risk such as settlement and trust businesses.
Risk Capital Allocation
We endeavor to obtain a clear grasp of the group’s overall risk exposure and have implemented measures tokeep such risks within the group’s financial base in accordance with the risk capital allocation framework. Morespecifically, we allocate risk capital to our principal banking subsidiaries, including their respective subsidiaries,
and other core group companies to control risk within the limits set for each company. We also control risk
within managerially acceptable limits by working to ensure that the overall risk we hold on a consolidated basis
does not exceed shareholders’ equity and other measures of financial strength. To ensure the ongoing financial
health of Mizuho Financial Group, our principal banking subsidiaries and other core group companies, weregularly monitor the manner in which risk capital is being used in order to obtain a proper grasp of the risk
profile within this framework. Reports are also submitted to the board of directors and other committees of eachcompany. Risk capital is allocated to Mizuho Bank, Mizuho Trust & Banking and Mizuho Securities by risk
category, and is further allocated within their respective business units based on established frameworks.
Stress Testing
We conduct stress testing based on several scenarios, such as economic recession and turmoil in financial
markets. We have built a framework in which we use the results of stress testing for making business decisions
such as, among other things, the identification of issues for purposes of the managing our business-planning. Our
stress testing scenarios are formulated through discussions regarding historical stress events, underlying
macroeconomic events and economic outlook, taking into account the probability of the event and its impact on
us. We estimate the impact on us by setting parameters such as economic output, stock market and interest ratelevels for each scenario.
Credit Risk Management
We define credit risk as the Mizuho group’s exposure to the risk of losses that may be incurred due to a
decline in, or total loss of, the value of assets (including off-balance-sheet instruments), as a result of
deterioration in obligors’ financial position. We have established the methods and structures necessary forgrasping and managing credit risk, which has become increasingly complex due to financial deregulation,internationalization and the growing sophistication of transactions. Mizuho Financial Group manages credit risk
for the Mizuho group as a whole. More specifically, we have adopted two different but mutually complementary
approaches in credit risk management. The first approach is “credit management,” in which we manage theprocess for each individual transaction and individual obligor from execution until collection, based on ourassessment of the credit quality of the customer. Through this process, we curb losses in the case of a credit
event. The second is “credit portfolio management,” in which we utilize statistical methods to assess the potential
for losses related to credit risk. Through this process, we identify credit risks and respond appropriately.
Credit Risk Management Structure
Credit Risk Management of the Mizuho GroupOur board of directors determines the Mizuho group’s key matters pertaining to credit risk management. In
addition, the portfolio management committee of Mizuho Financial Group discusses and coordinates the basic
policies in connection with credit risk management and matters in connection with overall credit portfolio
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management and credit risk monitoring for the Mizuho group. Under the control of the Chief Risk Officer ofMizuho Financial Group, the Risk Management Division and the Credit Risk Management Division jointly
monitor, analyze and submit suggestions concerning credit risk and formulate and execute plans in connection
with basic matters pertaining to credit risk management.
Credit Risk Management at Our Principal Banking Subsidiaries and Other Core Group Companies
Our principal banking subsidiaries and other core group companies manage their credit risk according to thescale and nature of their exposures in line with basic policies set forth by Mizuho Financial Group. The board of
directors of each company determines key matters pertaining to credit risk management. Their respective
business policy committees are responsible for discussing and coordinating overall management of theirindividual credit portfolios and transaction policies towards obligors. The Chief Risk Officer of each principal
banking subsidiary and core group company is responsible for matters relating to planning and implementing
credit risk management. The credit risk management division of each principal banking subsidiary is responsible
for planning and administering credit risk management and conducting credit risk measuring and monitoring, andsuch division regularly presents reports regarding its risk management situation to Mizuho Financial Group. Eachcredit division determines policies and approves/disapproves individual transactions in terms of credit review,
credit management and collection from customers in accordance with the lines of authority set forth by eachprincipal banking subsidiary. In addition each of our principal banking subsidiaries has established internal audit
divisions that are independent of the business divisions in order to ensure appropriate credit risk management.
Individual Credit Management
Credit Codes
The basic code of conduct for all of our officers and employees engaged in the credit business is set forth inour credit code. Seeking to fulfill the bank’s public and social role, our basic policy for credit business isdetermined in light of fundamental principles focusing on public welfare, safety, growth and profitability.
Internal Rating System
One of the most important elements of the risk management infrastructure of our principal banking
subsidiaries is the use of an internal rating system that consists of credit ratings and pool allocations. Credit
ratings consist of obligor ratings which represent the level of credit risk of the obligor, and transaction ratings
which represent the possibility of ultimately incurring losses related to each individual claim by taking into
consideration the nature of any collateral or guarantee and the seniority of the claim. In principle, obligor ratings
apply to all obligors and are subject to regular reviews at least once a year to reflect promptly the fiscal period
end financial results of the obligors, as well as special reviews as required whenever a obligor’s credit standing
changes. This enables our principal banking subsidiaries to monitor both individual obligors and the status of theoverall portfolio in a timely fashion. Because we consider obligor ratings to be an initial phase of the selfassessment process regarding the quality of our loans and off-balance-sheet instruments, such obligor ratings areclosely linked to the obligor classifications and are an integral part of the process for determining the provision
for loan losses and charge-offs in our self-assessment of loans and off-balance-sheet instruments.
Pool allocations are applied to small claims that are less than a specified amount by pooling customers andclaims with similar risk characteristics and assessing and managing the risk for each such pool. We efficiently
manage credit risk and credit screening by dispersing a sufficient number of small claims within each pool. We
generally review the appropriateness and effectiveness of our approach to obligor ratings and pool allocations
once a year in accordance with predetermined procedures.
Self-assessment, Provision for Loan Losses and Off-Balance-Sheet Instruments and Charge-Offs
We conduct self-assessment of assets to ascertain the status of assets both as an integral part of credit risk
management and in preparation for appropriate accounting treatment, including provision for loan losses and172

off-balance-sheet instruments and charge-offs. During the process of self-assessment, obligors are categorized
into certain groups taking into consideration their financial condition and their ability to make payments, andcredit ratings are assigned to all obligors, in principle, to reflect the extent of their credit risks. The related assets
are then categorized into certain classes based on the risk of impairment. This process allows us to identify andcontrol the actual quality of assets and determine the appropriate accounting treatment, including provision forloan losses and off-balance-sheet instruments and charge-offs. Specifically, the credit risk management divisionof each of our principal subsidiaries is responsible for the overall control of the self-assessment of assets of therespective banking subsidiaries, cooperating with the administrative divisions specified for each type of asset,
including loan portfolios and securities, in executing and managing self-assessments.
Credit Review
Prevention of new impaired loans through routine credit management is important in maintaining the qualityof our overall loan assets. Credit review involves analysis and screening of each potential transaction within therelevant business division. In case the screening exceeds the authority of the division, the credit division at
headquarters carries out the review. The credit division has specialist departments for different industries,
business sizes and regions, carries out timely and specialized examinations based on the characteristics of thecustomer and its market, and provides appropriate advice to the business division. In addition, in the case ofobligors with low credit ratings and high downside risks, the business division and credit division jointly clarify
their credit policy and in appropriate cases assist obligors at an early stage in working towards credit soundness.
Collection and Disposal of Impaired Loans
With respect to collection and disposal of impaired loans, our specialist unit maintains central control andpursues corporate restructuring or collection efforts, as appropriate, toward taking the impaired loans off-balance.
Specifically, we believe that supporting the restructuring efforts of corporations is an important role for financial
institutions, and we support corporations undergoing restructuring by reviewing business plans, advising on
restructuring methods and utilizing corporate restructuring schemes such as divestitures and mergers andacquisitions, taking advantage of our group-wide resources. These efforts have been steadily producing
satisfactory results. In addition, we work on final disposal of impaired loans efficiently and swiftly by conducting
bulk sales and by utilizing Mizuho Servicing Co., Ltd., our subsidiary that specializes in performing debt
collection services for our group companies. In the case of debt forgiveness, we examine the borrower’s
condition carefully and make a determination based on the possible impact on the interests of shareholders anddepositors. We provide debt forgiveness as per industry guidelines that are shared among members of theJapanese Bankers Association.
Portfolio Management
Risk Measurement
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a
one-year risk horizon (“Expected Loss”) and the maximum loss within a certain confidence interval (“credit
VaR”). The difference between expected loss and credit VaR is measured as the credit risk amount (“Unexpected
Loss”).
In establishing transaction spread guidelines for credit transactions, we aim to ensure an appropriate returnfrom the transaction in light of the level of risk by utilizing credit cost data as a reference. Also, we monitor ourcredit portfolio from various perspectives and set guidelines noted below so that losses incurred through ahypothetical realization of the full credit VaR would be within the amount of risk capital and loan loss reserves.
Risk Control Methods
We recognize two types of risk arising from allowing unexpected loss to become too large. One type is“credit concentration risk,” which stems from granting excessive credit to certain individual counterparties or173

corporate groups. The other type is “chain-reaction default risk,” which arises from granting excessive credit tocertain, areas, industrial sectors and other groupings. We make appropriate management to control these risks inline with our specific guidelines for each. The individual risk management divisions of our principal banking
subsidiaries are responsible for monitoring adherence to these guidelines and reporting to their respective
business policy committees.
Market and Liquidity Risk Management
We define market risk as the risk of losses incurred by the group due to fluctuations in interest rates, stock
prices and foreign exchange rates. Our definition includes the risk of losses incurred when it becomes impossible
to execute transactions in the market because of market confusion or losses arising from transactions at pricesthat are significantly less favorable than usual. We define liquidity risk as the risk of losses arising from funding
difficulties due to a deterioration in our financial position that makes it difficult for us to raise necessary funds orthat forces us to raise funds at significantly higher interest rates than usual. Mizuho Financial Group manages
market and liquidity risk for the Mizuho group as a whole.

174

The following diagram shows our risk management structure:

Market Risk Management StructureMarket Risk Management of the Mizuho GroupOur board of directors determines key matters pertaining to market risk management policies. The ALM &market risk management committee of Mizuho Financial Group broadly discusses and coordinates mattersrelating to basic asset and liability management policies, risk planning and market risk management and proposes
responses to emergencies such as sudden market changes. The Chief Risk Officer of Mizuho Financial Group is
responsible for matters relating to market risk management planning and operations.
175

The Risk Management Division of Mizuho Financial Group is responsible for monitoring market risk,
reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans relating tomarket risk management. The Risk Management Division assesses and manages the overall market risk of theMizuho group. It also receives reports from our principal banking subsidiaries and other core group companies
on their market risk management that enable it to obtain a solid grasp of the risk situation, submitting reports tothe chief executive officer on a daily basis and to our board of directors and the executive management
committee of Mizuho Financial Group on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations according to the risk profilesof our principal banking subsidiaries and other core group companies and thereby prevent market risk fromexceeding our ability to withstand losses based on our financial strength represented by capital, etc. The amountof risk capital allocated to market risk corresponds to VaR and additional costs that may arise in order to close
relevant positions. For trading and banking activities, we set limits for VaR and for losses. For banking activities,
we set position limits based on interest rate sensitivity as needed.
These limits are discussed and coordinated by the ALM & market risk management committee, discussed
further by the executive management committee, then determined by the chief executive officer. Various factors
are taken into account including business strategies, historical limit usage ratios, risk-bearing capacity (profits,
total capital and risk management systems), profit targets and the market liquidity of the products involved.
Market Risk Management at Our Principal Banking Subsidiaries and Other Core Group Companies
Our principal banking subsidiaries, which account for most of the Mizuho group’s exposure to market risk,
have formulated their basic policies in line with the basic policies determined by Mizuho Financial Group. Theirboards of directors determine important matters relating to market risk management while their chief executive
officers are responsible for controlling market risk. Their respective business policy committees, including their
ALM & market risk management committees, are responsible for overall discussion and coordination of market
risk management. Specifically, these committees discuss and coordinate matters relating to basic asset andliability management policies, risk planning and market risk management and propose responses to emergencies
such as sudden market changes. The Chief Risk Officer of each subsidiary is responsible for matters pertaining toplanning and implementing market risk management. Based on a common Mizuho group risk capital allocation
framework, the above-mentioned companies manage market risk by setting limits according to the risk capital
allocated to market risk by Mizuho Financial Group.
These companies have established specialized company-wide market risk management divisions to provide
integrated monitoring of market risk, submit reports, analyses and proposals, set limits and formulate andimplement plans relating to market risk management. The risk management divisions of each company submit
reports on the status of market risk management to their respective chief executive officers and top management
on a daily basis, and to their board of directors and executive management committee on a regular basis. They
also provide regular reports to Mizuho Financial Group. To provide a system of mutual checks and balances inmarket operations, they have established middle offices specializing in risk management that are independent of
their front offices, which engage in market transactions, and their back offices, which are responsible for bookentries and settlements. When VaR is not adequate to control risk, the middle offices manage risk using
additional risk indices, carry out stress tests and set stop loss limits as needed. They monitor their market
liquidity risk for individual financial products in the market while taking turnover and other factors into
consideration.
Liquidity Risk Management Structure
Liquidity Risk Management of the Mizuho Group
Our liquidity risk management structure is generally the same as the market risk management structure
described above. However, the head of the Financial Control & Accounting Group of Mizuho Financial Group is176

additionally responsible for matters relating to planning and running cash flow management operations, while the
Financial Planning Division is responsible for monitoring and adjusting the cash flow management situation andfor planning and implementing cash flow management. Reports on the cash flow situation are submitted to the
ALM & market risk management committee, the executive management committee and the chief executive
officer.
We measure liquidity risk using indices pertaining to cash flow, such as limits on funds raised in the market.
Limits on liquidity risk are discussed and coordinated by the ALM & market risk management committee,
discussed further by the executive management committee and determined by the chief executive officer. We
have established classifications for the cash flow conditions affecting the group, ranging from “normal” to “cause
for concern” and “critical,” and have established procedures for dealing with cases which are deemed to fall into
the “cause for concern” or “critical” categories. In addition, we have established a plan of operations so that wemay respond swiftly in emergency situations that affect our cash flow under which we will consider measures
such as a reduction in the amount of investments made, an expansion of funding from financial markets anddeposits, the sale of investment securities and borrowings from the central bank.
Liquidity Risk Management at Our Principal Banking Subsidiaries and Other Core Group Companies
The liquidity risk management structures of Mizuho Bank, Mizuho Trust & Banking and Mizuho Securities
are generally the same as the aforementioned market risk management structures, but the senior executives
responsible for risk management are responsible for matters pertaining to planning and conducting liquidity risk
management, while the senior executives of the asset and liability management and trading units are responsible
for matters pertaining to planning and conducting cash flow management.
The methodologies used for ensuring precise control of liquidity risk include the formulation ofmanagement indices pertaining to cash flow, such as limits on funds raised in the market. As with Mizuho
Financial Group, the above-mentioned companies have established classifications for the cash flow affecting
them, ranging from “normal” to “cause for concern” and “critical,” and have established procedures for cases
which are deemed to fall into the “cause for concern” or “critical” categories.
Each subsidiary has adopted stringent controls that call for the submission of reports on liquidity risk
management and cash flow management to the ALM & market risk management committee and other business
policy committees, the executive management committee and the chief executive officer of each subsidiary.
Value-at-Risk
We use the value-at-risk (the “VaR”) method, supplemented with stress testing, as our principal tool tomeasure market risk. The VaR method measures the maximum possible loss that could be incurred due to market
movements within a certain time period (or holding period) and degree of probability (or confidence interval).
Trading Activities
VaR related to our trading activities is based on the following:•

variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk, which aresimply aggregated to determine total risk;•

confidence interval: one-tailed 99.0%;•

holding period of one day; and•historical observation period of one year.

177

The following tables show the VaR related to our trading activities by risk category for the fiscal years
ended March 31, 2012, 2013 and 2014 and as of March 31, 2012, 2013 and 2014:
Fiscal year ended March 31, 2012
Daily average Maximum Minimum(in billions of yen)

Risk category

As ofMarch 31, 2012

Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1.9
1.9
1.1
0.0

¥2.4
2.8
1.7
0.1

¥1.4
0.7
0.5
0.0

¥1.8
1.8
0.5
0.0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3.8

¥4.8

¥2.8

¥3.0

Fiscal year ended March 31, 2013
Daily average Maximum Minimum(in billions of yen)

Risk category

As ofMarch 31, 2013

Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1.6
2.3
0.5
0.0

¥2.2
3.4
0.9
0.0

¥1.1
1.1
0.1
0.0

¥1.2
2.7
0.4
0.0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3.4

¥4.6

¥2.6

¥3.5

Fiscal year ended March 31, 2014
Daily average Maximum Minimum(in billions of yen)

Risk category

As ofMarch 31, 2014

Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2.0
4.1
1.0
0.0

¥2.7
5.6
3.1
0.0

¥1.5
1.1
0.2
0.0

¥1.6
4.8
0.4
0.0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥5.7

¥7.4

¥3.3

¥5.4

The following graph shows VaR figures of our trading activities for the fiscal year ended March 31, 2014:

178

The following table shows VaR figures of our trading activities for the fiscal years indicated:
Fiscal years ended March 31,
2012
2013
2014
Change(in billions of yen, except number of cases)

As of fiscal year end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The number of cases where profits/losses exceeded VaR . . . . . . . . . . . . .

¥3.0
4.8
2.8
3.8
2

¥3.5
4.6
2.6
3.4
4

¥5.4
7.4
3.3
5.7
1

¥1.8
2.8
0.6
2.3
(3)

Non-trading Activities
The VaR related to our banking activities is based on the same conditions as those of trading activities, but
the holding period is one month.
The graph below shows the VaR related to our banking activities excluding our strategically-held equity
portfolio for the year ended March 31, 2014:

The following table shows the VaR figures relating to our banking activities for the fiscal years indicated:
Fiscal years ended March 31,
2012
2013
2014
Change(in billions of yen)

As of fiscal year end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥263.7
Maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282.5
Minimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
210.3
Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
249.4¥215.9
297.9
213.3
246.3

¥281.7
300.7
186.8
253.5

¥ 65.82.7(26.5)
7.1

VaR is a commonly used market risk management technique. However, VaR models have the following
shortcomings:•

By its nature as a statistical approach, VaR estimates possible losses over a certain period at a particularconfidence level using past market movement data. Past market movement, however, is not necessarily
a good indicator of future events, particularly potential future events that are extreme in nature.
179

•

VaR may underestimate the probability of extreme market movements.

•

The use of a 99.0% confidence level does not take account of, nor makes any statement about, any
losses that might occur beyond this confidence level.

•

VaR does not capture all complex effects of various risk factors on the value of positions and portfolios
and could underestimate potential losses.

We also conduct interest sensitivity analyses of interest risk, our main source of market risk. The following
table shows sensitivity to yen interest risk in our banking activities as of the dates indicated. Interest ratesensitivity (10 BPV) shows how much net present value varies when interest rates rise by 10 basis points (0.1%),
and it explains the impact of interest rate movements on net present value when short- and long-term interest
rates behave differently.
2012

As of March 31,
2013(in billions of yen)

2014

ChangeUp to one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
From one to five years . . . . . . . . . . . . . . . . . . . . . . . . .
Over five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(10)
(54)
(24)

¥ (7)
(56)
(35)

¥ (2)
(47)
(12)

¥ 4
9
22

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(89)

¥(99)

¥(62)

¥36

Stressed Value-at-Risk
The stressed value-at-risk (“stressed VaR”) measurement is based on a continuous 12-month period ofsignificant financial stress.
Stressed VaR related to our trading activities is based on the following:•

variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk, which aresimply aggregated to determine total risk;•

confidence interval: one-tailed 99.0%;•

holding period of one day; and•historical observation period of one year of significant financial stress.

The following table shows stressed VaR figures of our trading activities for the fiscal years indicated:2012

As of fiscal year end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 6.8
10.5
5.0
7.4

Fiscal years ended March 31,
2013
2014
Change(in billions of yen)

¥ 9.2
12.0
5.0
8.0

¥12.6
15.3
8.3
11.6

¥3.4
3.3
3.2
3.6

Note: Maximum, minimum and average figures of 2012 in the above table have been calculated for the period
from October 1, 2011 to March 31, 2012.
Strategically-held Equity Portfolio Management Activities
We take the market risk management approach with use of VaR and risk indices for strategically-held equity
portfolio management activities as well as for trading activities and non-trading activities. The risk index for180strategically-held equity portfolio management for the fiscal year ended March 31, 2014, consisting of thesensitivity of the strategically-held equity portfolio to a 1% change in the equity index of TOPIX, was ¥30.0
billion.
Back Testing and Stress Testing
In order to evaluate the effectiveness of market risk measurements calculated using the value-at-risk
method, we carry out regular back tests to compare value-at-risk with assumptive profits and losses. Assumptive
profits and losses accounts for general market risk. The graph below shows daily value-at-risk of trading
activities for the fiscal year ended March 31, 2014 and the corresponding paired distribution of profits and losses.
We had one case where profits or losses exceeded value-at-risk during the period. In addition, we conduct
evaluations of the assumptions related to the value-at-risk models. Based on the number of times profits or losses
exceeded VaR through back testing and the results of the evaluation of the model assumptions, we will makeadjustments to the models as appropriate. Changes to fundamental portions of the VaR models are subject to theapproval of our Chief Risk Officer.

Note: We conduct our back testing and assess the number of cases where profits/losses exceed VaR based on a
250 business day year. The expected average number of instances where one-day trading profits andlosses exceeded VaR at the 99% confidence level is five.

181

Because the value-at-risk method is based on statistical assumptions, we conduct stress testing to simulate
the levels of losses that could be incurred in cases where the market moves suddenly to levels that exceed theseassumptions. The stress testing methods we use include the calculation of losses on the basis of the largest
fluctuations occurring over a period of more than five years and the calculation of losses based on market
fluctuations occurring during historical market events. In addition, we conduct stress testing based on a sharp
drop in the price of securitization and other products due to diminished market liquidity. The table below shows
the assumed maximum loss results of stress testing in trading activities using the methods described above:
Assumed maximum loss results

As of March 31, 2014
(in billions of yen)

Assumed maximum loss result calculated by stress testing (holding period: one month) . . . .
Assumed maximum loss result calculated by stress testing based on a sharp drop in the priceof securitization and other products due to diminished market liquidity (holding period:
one year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥97.9

10.2

Outlier Criteria
As part of the capital adequacy requirements under BIS Regulations, the losses arising from a banking bookin hypothetical interest rate shock scenarios under certain stress conditions are calculated and compared with
Broadly-defined capital. If the interest rate risk of the banking book leads to an economic value decline of morethan 20% of Broadly-defined capital, we will be deemed an “outlier” and may be required to reduce the banking
book risk or adopt other responses. We measure losses arising from our banking book each month as a part of ourstress tests.
The table below shows the results of calculations of losses in the banking book in cases where interest rate
fluctuations occur under stress conditions. The results of calculations of losses in the banking book show thatthey are 4.4% of broadly-defined capital. Because the amount of risk on the banking book is therefore well underthe 20% threshold and within controllable limits, we do not fall under the “outlier” category. The loss ratio tocapital decreased from the previous fiscal year due mainly to the reduction of interest rate risk.
Results of calculations under the outlier framework

Amount of Broadly-defined Loss ratio tolosscapitalcapital(in billions of yen, except percentages)

As of March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of yen interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of dollar interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of euro interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥483.2
499.1
386.6
78.2
209.3
75.7

¥7,775.0
8,344.5
8,655.9

6.2%
5.9
4.4

Notes:(1) In the above results of calculations of losses, a part of demand deposits without fixed intervals for amending
applicable interest rates is deemed core deposits and is treated accordingly in the calculation.
(2) For the interest rate shock scenario used in connection with the above figures, we generate annual rate
fluctuation data for five years derived from daily raw historical interest rate data of the past six years andthen apply the actual fluctuation data, which show a rise in interest rates, at a 99.0% confidence level to theshock scenario.
Market Risk Equivalent
In order to calculate the amount of capital necessary to meet the capital requirements relating to market risk(the “market risk equivalent”), we apply internal models to calculate general market risk (risks related to factorsthat apply generally to the market, e.g., interest rates, foreign exchange rates) and the standardized measurement
182

method to calculate specific risks (risks other than general market risk, e.g., credit quality and market liquidity of
an individual security or instrument). In addition, our internal models are applied to trading transactions withmarket liquidity based on the relevant holding period.
Under the internal models, the market risk equivalent is expressed as the sum of;•

The higher of (i) VaR on the calculation date and (ii) the average of VaR for the preceding 60 businessdays (including the calculation date) multiplied by a multiplication factor ranging from 3.00 to 4.00 thatis determined based on the number of times VaR is exceeded upon back testing; and•The higher of (i) stressed VaR on the calculation date and (ii) the average of stressed VaR for thepreceding 60 business days (including the calculation date) multiplied by the same multiplication factor
as used in the bullet point above.

The following table shows total market risk equivalent as of the dates indicated calculated using thestandardized measurement method and internal models:
As of March 31,
2013
2014
(in billions of yen)

ChangeCalculated using standardized measurement method . . . . . . . . . . . .
Calculated using internal models . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 74.0116.3¥ 62.8170.6¥(11.1)
54.2

Total market risk equivalent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥190.3¥233.5¥ 43.1Note:
VaR and stressed VaR used to calculate market risk equivalent is based on the following:•

variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk, which aresimply aggregated to determine total risk;•

confidence interval: one-tailed 99.0%;•

holding period of 10 days; and•historical observation period of one year.

Operational Risk Management
We define operational risk as the risk of loss that we may incur resulting from inadequate or failed internal
processes, people and systems or from external events. We recognize that operational risk includes information
technology risk, operations risk, legal risk, human resources risk, tangible asset risk, regulatory change risk andreputational risk. We have determined risk management policies concerning risk management structures andmethods for each kind of risk. Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities and Trust & Custody
Services Bank respectively manage operational risk in an appropriate manner pursuant to risk management
policies determined by Mizuho Financial Group.
Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities and Trust & Custody
Services Bank share common rules for data gathering, and we measure operational risk on a regular basis, taking
into account possible future loss events and the changes in the business environment and internal management.
We have established and are strengthening management methods and systems to appropriately identify,
assess, measure, monitor and control the operational risks which arise from the growing sophistication anddiversification of financial operations and developments relating to information technology by utilizing control
self-assessments and improving measurement methods.
183

Definition of Risks and Risk Management Methods
As shown in the table below, we have defined each component of operational risk and we apply appropriate
risk management methods in accordance with the scale and nature of each risk.
Definition

Information
Technology Risk

Principal Risk Management Methods

Risk that customers may suffer service
disruptions, or that customers or the group
may incur losses arising from system defects
such as failures, faults, or incompleteness incomputer operations, or illegal orunauthorized use of computer systems.

•

•

•
•

Operations Risk

Risk that customers may suffer service
disruptions, as well as the risk that customers
or the group may incur losses because senior
executives or employees fail to fulfill theirtasks properly, cause accidents or otherwise
act improperly.

•
•
•
•

•
Legal Risk

Risk that the group may incur losses due toviolation of laws and regulations, breach ofcontract, entering into improper contracts orother legal factors.

•

•
•
Human
Resources Risk

Risk that the group may incur losses due todrain or loss of personnel, deterioration of
morale, inadequate development of humanresources, inappropriate working schedule,
inappropriate working and safety
environment, inequality or inequity in humanresource management or discriminatory
conduct.

184

•
•
•

Identify and evaluate the risk by setting
specific standards that need to becomplied with and implementing
measures tailored based on evaluation
results to reduce the risk.
Ensure ongoing project management insystems development and quality
control.
Strengthen security to prevent
information leaks.
Improve effectiveness of emergency
responses by improving backup systems
and holding drills.
Establish clearly defined procedures forhandling operations.
Periodically check the status ofoperational processes.
Conduct training and development
programs by headquarters.
Introduce information technology, officeautomation and centralization for
operations.
Improve the effectiveness of emergency
responses by holding drills.
Review and confirm legal issues,
including the legality of material
decisions, agreements and external
documents, etc.
Collect and distribute legal informationand conduct internal training programs.
Analyze and manage issues related tolawsuits.
Conduct employee satisfaction surveys.
Understand the status of vacation days
taken by personnel.
Understand the status of voluntary
resignations.

Definition

Tangible
Asset Risk

Regulatory
ChangeRisk

Principal Risk Management Methods

Risk that the group may incur losses fromdamage to tangible assets or a decline in thequality of working environment as a result of
disasters, criminal actions or defects in asset
maintenance.

•

Risk that the group may incur losses due tochanges in various regulations or systems, suchas those related to law, taxation and accounting.

•

•

•
•

Reputational
Risk

Risk that the group may incur losses due todamage to our credibility or the value of the“Mizuho” brand when market participants orothers learn about, or the media reports on,
various adverse events, including actual
materialization of risks or false rumors.

••

Manage the planning and implementationof construction projects related to therepair and replacement of facilities.
Identify and evaluate the status of damage
to tangible assets caused by natural
disasters, etc., and respond appropriately
to such damage.
Understand important changes inregulations or systems that havesignificant influence on our business
operations or financial condition in atimely and accurate manner.
Analyze degree of influence of regulatorychanges and establish countermeasures.
Continuously monitor our regulatorychange risk management mentioned
above.
Establish framework to identify andmanage, on an integrated basis,
information that may have a serious
impact on group management and respondto such risk in a manner appropriate to its
scale and nature.
Swiftly identify rumors and devise
appropriate responses depending on theurgency and possible impact of thesituation to minimize possible losses.

We also recognize and manage “Information Security Risk” and “Compliance Risk,” which constitute a
combination of more than one of the above components of operational risk, as operational risk.
Measurement of operational risk equivalent
Implementation of the AMA
We have adopted the AMA from September 30, 2009, for the calculation of operational risk equivalent inassociation with capital adequacy ratios based on Basel II. However, we use the Basic Indicator Approach (BIA)
for entities that are deemed to be less important in the measurement of operational risk equivalent and for entities
that are preparing to implement the AMA. The measurement results under the AMA are used not only as theoperational risk equivalent in the calculation of capital adequacy ratios but also as Operational VAR for internalrisk management purposes for implementing action plans to reduce operational risk, etc.
Outline of the AMA•

Outline of measurement system
We have established the model by taking account of four elements: internal loss data; external loss data;
scenario analysis and business environment; and internal control factors (BEICFs). A statistical
approach (one year holding period / one-tailed 99.9 percentile confidence interval) is taken for the
calculation of operational risk equivalent, employing both internal loss data (i.e., actually experienced
operational loss events) and scenario data to reflect unexperienced potential future loss events in themeasurement.
185

In the measurement of operational risk equivalent as of March 31, 2014, we did not exclude expected
losses and also did not recognize the risk mitigating impact of insurance. In addition, we did not take
into account the events related to credit risk in measuring operational risk equivalent.
•

Outline of measurement model
Operational risk equivalent is calculated as a simple sum of those related to the seven loss event types
defined by Basel II, large-scale natural disasters and litigation. In the measurement of operational risk
equivalent as of March 31, 2014, we did not reflect the correlation effects among operational risk related
to each of the seven loss event types.

•

Operational risk by the loss event type
Loss Distribution (Compound Poisson Distribution) Approach (LDA) is adopted for the calculation ofoperational risk. LDA is based on the assumption that Poisson Distribution applies to the occurrence
frequency of operational risk events, and loss severity is expressed through a separate distribution.
Operational risk is calculated for each of the seven loss event types employing both internal loss data,
based on our actual experience as operational loss events and scenario data. Scenario data, expressed as
numerical values of occurrence frequency and loss severity, reflects external loss data and BEICFs, inorder to estimate unexperienced potential future loss events (of low frequency and high severity).
“Frequency Distribution” and “Severity Distribution” are estimated employing the above mentioned
internal loss data and scenario data, and Monte-Carlo simulations are then applied to these distributions
to measure operational risk. The detailed steps of creation of scenario data are explained later in“Scenario Analysis.”•

Estimation of “Frequency Distribution” and “Loss Severity Distribution”“Frequency Distribution” is estimated by applying information on occurrence frequency of both internal
loss data and scenario data to Poisson Distribution. “Loss Severity Distribution” is generated as theresult of combining, through a statistical approach (Extreme Value Theory), of the actual distribution forthe low severity distribution portion created by internal loss data and another loss distribution (Lognormal Distribution or Generalized Pareto Distribution) for the high severity distribution portion createdby scenario data.

•

Operational risk of large-scale natural disasters
Monte-Carlo simulation is applied to the datasets expressed as a combination of the probability ofoccurrence of large-scale natural disasters and the probable loss amount in case of such occurrence, as
opposed to estimating “Frequency Distribution” and “Loss Severity Distribution.”•

Operational risk of litigation
Each litigation is converted into data according to the profile of the individual litigation to which
Monte-Carlo simulation is applied, as opposed to estimating “Frequency Distribution” and “LossSeverity Distribution.” In the measurement process, we assume that final decisions will be made on all
litigation within one year.

•

Verification
We confirm the appropriateness of the measurement model by verifying it, in principle, semi-annually.

Scenario Analysis•

Outline of scenario analysis
In the process of scenario analysis, scenario data is created as numerical values of occurrence frequency
and loss severity reflecting external loss data and BEICFs, in order to estimate unexperienced potential
future operational risk events (of low frequency and high severity).
186

As for external loss data, we refer to data publicly reported by domestic and overseas media, and suchdata are reflected in the estimation of occurrence frequency and loss severity distribution in the processof scenario analysis. In addition, BEICFs are utilized as indices to adjust occurrence frequency and loss
severity distribution in the process of scenario analysis.
We categorize scenario analysis into four approaches in accordance with the characteristics of each loss
event type and risk management structures.
Approach

Loss event type(s) to be applied

A

Internal fraud / External fraud / Clients, products and business practices /Execution, delivery and process management
Employment practices and workplace safety
Damage to physical assets
Business disruption and system failure

BCD

At Mizuho Financial Group, loss event types to which Approach A is applied account for a considerable
amount of operational risk. The detailed process of Approach A is explained below as a typical exampleof scenario analysis.
•

Setting units for scenario analysis
In order to ensure completeness and sufficiency, we set units that are commonly applied across group
entities that adopt AMA (the “Group Entities”) by referencing and categorizing risk scenarios
recognized through control self-assessment, internal loss data of the Group Entities and external loss
data, etc. Then each of the Group Entities selects the unit on which scenario analysis is conducted fromthe units established on a groupwide basis in accordance with its business activities and operational risk
profile.

•Estimation of occurrence frequency
Basic occurrence frequency (once a year) is calculated for each scenario analysis unit. If a certain
scenario analysis unit has relevant internal loss data of a pre-determined threshold amount or above, its
basic occurrence frequency is calculated based on such data, and if not, the basic occurrence frequency(the occurrence frequency per year of losses at or above a pre-determined threshold) is calculated withreference to the situation of occurrence of internal loss data of less than the threshold amount and/or
external loss data. The basic occurrence frequency is then adjusted within a pre-determined range for the
purpose of reflecting the most recent BEICFs to determine the final occurrence frequency.

•

Estimation of loss severity distribution
In order to estimate loss severity distribution, we use a pre-determined series of severity ranges. Basicloss severity distribution is calculated for each scenario analysis unit as an occurrence ratio (inpercentile figures) of loss at each severity range when losses at or above a pre-determined thresholdoccurred, with reference to transaction amount data, external loss data, etc. Then the basic severity
distribution is adjusted, if necessary, from the viewpoint of statistical data processing to determine thefinal loss severity distribution.

•

Creation of scenario data
For each scenario analysis unit, scenario data is generated as a series of combinations of occurrence
frequency per year at each severity range, based on the final occurrence frequency and the final loss
severity distribution.

Compliance
As the leading Japanese financial services group with a global presence and a broad customer base, we
remain conscious of the importance of our social responsibilities and public mission at all times. We definecompliance as “the strict observance of all laws and regulations and the pursuit of fair and honest corporate187

activities that conform to the norms accepted by society” and view ongoing compliance as one of the basic
principles of sound business management. Each of our group companies maintains its own compliance structure
in line with the basic policies established by Mizuho Financial Group.
Compliance Structure
The chief executive officer of Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking and
Mizuho Securities each generally oversees compliance matters of the respective company, and the chief
executive officer, etc., also head their respective compliance committees at which important matters concerningcompliance are discussed. The four companies also have individual compliance divisions under a chiefcompliance officer. These divisions are responsible for compliance planning and implementation and control
overall compliance management at the respective companies. At the level of each organizational unit (such as
branches and divisions) at the four companies, the head of the unit is responsible for guidance andimplementation related to compliance matters within such unit, and the compliance officer or the complianceadministrator at each unit reviews the status of compliance.
Other core group companies have also established compliance structures adapted to the characteristics oftheir respective businesses.
Mizuho Financial Group monitors the status of compliance of the Mizuho group through reports submitted
by our principal banking subsidiaries and other core group companies and adopts appropriate responses whennecessary.
Compliance at subsidiaries of our principal banking subsidiaries and other core group companies ismonitored and managed by their respective parent.
Compliance Activities
We have established the “Mizuho Code of Conduct,” which sets forth clear and concrete standards of ethicalbehavior, and distributed it to all directors, senior management and employees of the Mizuho group so that they
are well aware of its content and act accordingly.
Each of our group companies has also prepared a compliance manual, which serves as a practical guidebook
for rigorous compliance enforcement and clarifies the laws and regulations that the group companies mustobserve in pursuing their business activities and the compliance activities they are required to follow.
We conduct compliance training for directors, senior management and employees so that they are fullyacquainted with the contents of the manual.
We monitor the status of compliance levels through self assessments conducted by individual organizational
units and monitoring conducted by the compliance division of each company.
Every fiscal year, each of our group companies establishes a compliance program, which contains concretemeasures for compliance enforcement such as measures related to the management of the complianceframework, training and assessments. Progress regarding the implementation of the compliance program ismonitored every six months.
Internal Audit
Internal audits are designed as an integrated process, independent from other business operations, forevaluating the extent to which internal control achieves its objectives in key areas, including appropriate risk
management, efficient and effective business operations, reliable financial reporting and compliance with laws,
188regulations and internal rules. We conduct internal audits from an objective and comprehensive standpoint,
independent of operational reporting lines, and offer advice and remedial recommendations in connection withany problems that may be identified. Through this process, internal audits assist the boards of directors of each of
our group companies to fulfill their managerial duties efficiently and effectively.
In line with the Basic Policy for Internal Audit established by Mizuho Financial Group, our principal
banking subsidiaries and other core group companies conduct internal audits, which include the auditing of theirrespective subsidiaries. In addition, with respect to the management of risks applicable across the Mizuho group,
we coordinate internal audits throughout the group to assess the risk management status of the group as a whole.
Internal Audit Management Structure
Mizuho Financial Group
Our internal audit committee determines all important matters concerning internal audits. The committee ischaired by our President & Group CEO and is independent of our other business operations.
Our internal audit committee monitors and manages internal audits at our principal banking subsidiaries andother core group companies through internal audit reports submitted by such subsidiaries. Our internal audit
committee discusses and makes decisions regarding internal audits at our principal banking subsidiaries and othercore group companies and submits the results, together with the results of their examination of the internal audit
reports, to our board of directors.
Mizuho Bank and Mizuho Trust & Banking
Mizuho Bank and Mizuho Trust & Banking have also established internal audit committees that are
independent of their other business operations.
Both banks have established internal audit divisions and credit review divisions (Credit Assessment andAuditing Office at Mizuho Trust & Banking) to conduct internal audits at their respective domestic and overseas
business offices, head office divisions and group companies. Specifically, the internal audit divisions assess thesuitability and effectiveness of business activities associated with compliance and risk management. The credit
review divisions (Credit Assessment and Auditing Office at Mizuho Trust & Banking) audit credit ratings andthe status of credit management in addition to auditing the self-assessment of assets to verify the accuracy andsuitability of matters deemed necessary to assure the soundness of assets.
Other Core Group Companies
Other core group companies have also established effective and efficient internal audit structures adapted tothe characteristics of their respective businesses.

189

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
12.A. Debt Securities
Not applicable.
12.B. Warrants and Rights
Not applicable.
12.C. Other Securities
Not applicable.
12.D. American Depositary Shares
The depositary collects its fees for delivery and surrender of ADSs directly from investors depositing sharesor surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The table below setsout such fees payable to the depositary:
Persons depositing or withdrawing shares must pay:For:

$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)– Execution and delivery of ADRs and the surrenderof ADRs$.02 (or less) per ADS– Any cash distribution to ADS registered holders

A fee equivalent to the fee that would be payable if
securities distributed to you had been shares and theshares had been deposited for issuance of ADSs

– Distribution of securities distributed to holders ofdeposited securities that are distributed by thedepositary to ADS registered holders

Registration or transfer fees

– Transfer and registration of shares on our shareregister to or from the name of the depositary or its
agent when you deposit or withdraw shares

Expenses of the depositary– Cable, telex and facsimile transmissions expenses(as are expressly provided in the deposit agreement)– Converting foreign currency to U.S. dollars

Taxes and other governmental charges– As necessary

Any other charge incurred by the depositary or its agentsin connection with the servicing of the deposited
securities– As necessary

The Bank of New York Mellon (“BNYM”), as depositary, has agreed to reimburse us annually for expenses
related to the administration and maintenance of the depositary receipt facility including, but not limited to,investor relations expenses, legal fees, New York Stock Exchange continue listing fees or any other direct or
non-direct depositary receipt program related expenses. There are limits on the amount of expenses for which thedepositary will reimburse us, and the terms and conditions of the annual reimbursement are subject to bereviewed by us and BNYM on an annual basis. In the fiscal year ended March 31, 2014, the depositary
reimbursed us $75,000 as portion of our investor relations expenses and legal fees.

190

PART IIITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIESNone.
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE
OF PROCEEDS
None.
ITEM 15. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We carried out an evaluation under the supervision and with the participation of our management, including
our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of ourdisclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) asof March 31, 2014. There are inherent limitations to the effectiveness of any system of disclosure controls andprocedures, including the possibility of human error and the circumvention or overriding of the controls andprocedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable, notabsolute, assurance of achieving their control objectives. Also, projections of any evaluation of effectiveness tofuture periods are subject to the risk that controls may become inadequate because of changes in conditions, orthat the degree of compliance with the policies or procedures may deteriorate. Based upon the evaluation referred
to above, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of ourdisclosure controls and procedures as of March 31, 2014 were effective to provide reasonable assurance that
information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Our internal control overfinancial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting andthe preparation of financial statements for external purposes in accordance with applicable generally accepted
accounting principles. Our internal control over financial reporting includes those policies and procedures that:(i)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of our assets;(ii)

provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles, and that ourreceipts and expenditures are being made only in accordance with authorizations of management anddirectors; and(iii)

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.
Our management evaluated the effectiveness of our internal control over financial reporting as of March 31, 2014
based on the criteria established in the original “Internal Control—Integrated Framework” issued by the Committee ofSponsoring Organizations of the Treadway Commission (1992 framework) (COSO). Based on the evaluation,
management has concluded that we maintained effective internal control over financial reporting as of March 31, 2014.
191

Our independent registered public accounting firm, Ernst & Young ShinNihon LLC has issued an attestation
report on our internal control over financial reporting as of March 31, 2014, which appears on page F-3.
Attestation Report of the Registered Public Accounting Firm
See the attestation report of our independent registered public accounting firm, Ernst & Young ShinNihon
LLC, which appears on page F-3.
Changes in Internal Control over Financial Reporting
During the period covered by this annual report, there were no changes in our internal control over financial
reporting that have materially affected, or are reasonably likely to materially affect, our internal control overfinancial reporting.
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERTOur board of directors has determined that Messrs. Kanemitsu Anraku and Hideyuki Takahashi eachqualifies as an “audit committee financial expert” as defined in Item 16A of Form 20-F under the Securities
Exchange Act of 1934, as amended. In addition, both are determined to be independent as defined under the New
York Stock Exchange (“NYSE”) Corporate Governance Standards.
ITEM 16B. CODE OF ETHICS
Mizuho Financial Group has adopted a code of ethics, which is applicable to all directors and executive
officers, as well as all managers and other employees of the Company who engage in financial reporting,accounting or disclosure. The code of ethics is included in this annual report as Exhibit 11.
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Fees for Services provided by Ernst & Young ShinNihon LLC
The aggregate fees billed by Ernst & Young ShinNihon LLC, our independent registered public accounting
firm, and its affiliates, for the fiscal years ended March 31, 2013 and 2014 are presented in the following table:
Fiscal year ended March 31,
2013
2014
(in millions of yen)

Audit fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit-related fees(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax fees(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All other fees(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥4,117463
50
1¥4,364383
76
39

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥4,631¥4,862

Notes:(1) Audit fees include fees related to the audit of U.S. GAAP financial statements as well as Japanese GAAP
financial statements used for home-country reporting purposes.
(2) Audit-related fees include fees for services relating to agreed-upon procedures on internal controls, due
diligence services related to our securitization business and services related to the implementation ofSection 404 of the Sarbanes-Oxley Act.
(3) Tax fees include fees for services relating to the preparation of tax returns and tax advice.
(4) All other fees include fees for services relating to education to improve the financial business knowledge of
our employees.
192Pre-Approval Policies and Procedures
We established the pre-approval policies and procedures required by the Sarbanes-Oxley Act on April 1,
2006. Under the procedures, Mizuho Financial Group and its subsidiaries must apply to our audit committee
members for pre-approval before entering into an agreement regarding audit and permitted non-audit services
with Ernst & Young ShinNihon LLC.
We follow two types of pre-approval policies and procedures:
General pre-approval . . . . . . . . . . . . . . . . . . . . . . . .

General pre-approval is required for services
which are expected to be performed during agiven fiscal year. Our audit committee reviews
the specific maximum fee amount for new
services and the maximum amount of increase/decrease from previous fee amounts for thesame type of services as those performed in thepast and authorizes pre-approval at the
beginning of each fiscal year.

Specific pre-approval . . . . . . . . . . . . . . . . . . . . . . . .

For those services which have not been
approved pursuant to the general pre-approval
procedure, specific pre-approval by our audit
committee members is required prior to eachengagement. With respect to such services, twofull-time audit committee members must
provide pre-approval and report such preapproval at the monthly meeting of the audit
committee.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not applicable193

ITEM 16E. PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS
The following table sets forth purchases of our common stock by us and our affiliated purchasers during the
fiscal year ended March 31, 2014:
Maximum
number of sharesthat may yet bepurchased under
the plansor programs

Total number ofshares purchased

Average pricepaid per share

Total number ofshares purchased
as part of publicly
announced plansor programs

April 1 to April 30, 2013 . . . . . . . . . . . . . . .
May 1 to May 31, 2013 . . . . . . . . . . . . . . . .
June 1 to June 30, 2013 . . . . . . . . . . . . . . . .
July 1 to July 31, 2013 . . . . . . . . . . . . . . . . .
August 1 to August 31, 2013 . . . . . . . . . . . .
September 1 to September 30, 2013 . . . . . .
October 1 to October 31, 2013 . . . . . . . . . . .
November 1 to November 30, 2013 . . . . . . .
December 1 to December 31, 2013 . . . . . . .
January 1 to January 31, 2014 . . . . . . . . . . .
February 1 to February 28, 2014 . . . . . . . . .
March 1 to March 31, 2014 . . . . . . . . . . . . .

4,738
5,008
2,765
9,370
5,046
3,982
5,590
5,089
13,768
7,299
4,739
5,078

¥211
217
193
215
209
214
208
212
213
229
215
207

—
—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

72,472

¥213

—

—

Note:
(1) A total of 72,472 shares were purchased other than through a publicly announced plan or program during
the fiscal year ended March 31, 2014, due to our purchase of shares constituting less than one (1) unit fromregistered holders of shares constituting less than one (1) unit at the current market price of those shares.
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
None.
ITEM 16G. CORPORATE GOVERNANCE
Our corporate governance practices are governed by applicable Japanese law, specifically the Companies
Act and Financial Instruments and Exchange Act of Japan, and our Articles of Incorporation and Corporate
Governance Guidelines. We transformed ourselves from a Company with Board of Auditors to a Company with
Committees as of June 24, 2014.
Because our shares are registered with the U.S. Securities and Exchange Commission and are listed on the
New York Stock Exchange (“NYSE”), we are also subject to corporate governance requirements applicable to
NYSE-listed foreign private issuers. NYSE-listed companies that are foreign private issuers meeting certain
criteria are permitted to follow home country practices in lieu of certain provisions of Section 303A, and we arerelying on this exemption.
A NYSE-listed foreign private issuer is required to provide to its U.S. investors a brief, general summary of
the significant differences of corporate governance practices that differ from U.S. companies under NYSE listing
standards. The following is a summary of the significant ways in which our corporate governance practices differ
from NYSE listing standards followed by U.S. companies:•

A NYSE-listed U.S. company is required to have a majority of directors that meet the independence
requirements under Section 303A of the NYSE’s Listed Company Manual.
194The Companies Act does not require us to have a majority of “independent” directors on our board; rather, it
requires us to have a majority of “outside” directors on each of the Nominating Committee, Compensation
Committee and Audit Committee, each established as a committee, pursuant to the requirements that apply to a
Company with Committees. An outside director is defined under the Companies Act as a director who does not
currently assume, and has never assumed, the position of executive director, executive officer, or employee,
including manager of the company or its subsidiaries. In addition to the requirements under the Companies Act,
our independence standards for outside directors set forth additional independence requirements on a voluntarybasis. Such additional requirements include, but are not limited to, restrictions against persons that are related toa principal business counterparty of ours, entities to which we are a principal business counterparty, entities thatreceive more than a specified amount of donations from us, entities to which directors have been transferred fromus, our accounting auditor, and law firms and consulting firms that receive more than a specified amount of feesfrom us, as well as close relatives of our directors and officers and persons who otherwise are likely to give rise
to consistent substantive conflicts of interest in relation to general shareholders. We may, however, appoint a
person as our outside director who does not satisfy the additional independence requirements but who we believe
to be suitable for the position with sufficient independence in consideration of such person’s character andinsight, provided that we externally provide an explanation as to the reason we believe such person qualifies as
an outside director with sufficient independence.
Currently, we have six outside directors among our thirteen directors.
•

A NYSE-listed U.S. company is required to have an audit committee composed entirely of independent
directors. Currently, our Audit Committee consists of three outside directors and two internal nonexecutive directors in compliance with the requirements under the Companies Act, and all suchcommittee members are independent under Rule 10A-3 under the U.S. Securities Exchange Act of 1934
with two members qualified as audit committee financial expert.

•

A NYSE-listed U.S. company is required to have a nominating/corporate governance committee and acompensation committee, both of which must be composed entirely of independent directors. We have a
Nominating Committee and a Compensation Committee, each currently consisting currently of four
outside directors in compliance with the requirements under the Companies Act.

•A NYSE-listed U.S. company must hold regularly scheduled executive sessions where participants arelimited to non-executive directors. Under the Companies Act, Japanese corporations are not obliged tohold executive sessions where participants are limited to non-executive directors.

•

A NYSE-listed U.S. company must adopt corporate governance guidelines and a code of businessconduct and ethics and must post those on its website. While we are not required to adopt suchguidelines and code under applicable Japanese law or the rules of stock exchanges in Japan on which weare listed, we established our Corporate Governance Guidelines in June 2014 that sets forth our basic
policy, framework, and governing policies regarding our corporate governance system and also maintainthe “Mizuho Code of Conduct” as our standard for corporate conduct to be observed by our directors,
officers and employees.

195PART IIIITEM 17. FINANCIAL STATEMENTS
We have elected to provide the financial statements and related information specified in Item 18.
ITEM 18. FINANCIAL STATEMENTS
The information required by this item is set forth in our consolidated financial statements starting on
page F-1 of this annual report.
ITEM 19. EXHIBITS
Exhibit
NumberDescription of Exhibits

1.1

Articles of Incorporation of Mizuho Financial Group, Inc., dated June 24, 2014 (English
Translation)

1.2

Regulations of the Board of Directors of Mizuho Financial Group, Inc., as amended on June 24,2014 (English Translation)

1.3

Share Handling Regulations of Mizuho Financial Group, Inc., dated January 4, 2013 (English
Translation)*

2.1

Form of American Depositary Receipt**

2.2

Form of Deposit Agreement among the registrant, The Bank of New York Mellon (formerly The
Bank of New York) as Depositary and all owners and holders from time to time of American
Depositary Receipts issued thereunder***8

List of significant subsidiaries of Mizuho Financial Group, Inc.—see “Item 4.C. Information on
the Company—Organizational Structure.”

11

Code of Ethics of Mizuho Financial Group, Inc.****

12.1

CEO Certification required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

12.2

CFO Certification required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

13.1

Certification required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) and Section 1350 of Chapter 63
of Title 18 of the United States Code (18 U.S.C. 1350).

101.INSXBRL Instance Document

101.SCHXBRL Taxonomy Extension Schema

101.CALXBRL Taxonomy Extension Calculation Linkbase

101.DEFXBRL Taxonomy Extension Definition Linkbase

101.LABXBRL Taxonomy Extension Label Linkbase

101.PREXBRL Taxonomy Extension Presentation Linkbase

*
**
***
****

Incorporated by reference to our annual report on Form 20-F (No. 001-33098) filed on July 23, 2013.
Incorporated by reference to our annual report on Form 20-F (No. 001-33098) filed on August 19, 2009.
Incorporated by reference to our registration statement on Form 20-F (No. 001-33098) filed on
October 19, 2006.
Incorporated by reference to our annual report on Form 20-F (No. 001-33098) filed on August 10, 2007.
196

SELECTED STATISTICAL DATA
In preparing the selected statistical data set forth below, foreign activities are defined as business transactions
that involve customers residing outside of Japan. However, as the operations of Mizuho Financial Group, Inc.
and its subsidiaries (“the MHFG Group” or “the Group”) are highly and globally integrated, the MHFG Grouphas made certain estimates and assumptions in allocating assets, liabilities, income and expense between
domestic and foreign operations. The Group considers domestic and foreign activities determined by suchmethods to be representative of the Group’s operations.

A-1

I. Distribution of assets, liabilities and equity; interest rates and interest differential
Average balances of balance sheet items, interest and dividend income, interest expense and average yields andrates
The following tables show the MHFG Group’s average balances of balance sheet items, Interest and dividend
income, Interest expense, average yields on interest-earning assets, and average rates on interest-bearing
liabilities for the fiscal years ended March 31, 2012, 2013 and 2014. Average balances are generally based on adaily average. Month-end or quarter-end averages are used for certain average balances where it is notpracticable to obtain applicable daily averages. The average balances determined by such methods are considered
to be representative of the MHFG Group’s operations.
2012
2013
2014
Interest andInterest andInterest andAverage dividend Average Average dividend Average Average dividend Averagebalance
incomeyield balance
incomeyield balance
incomeyield(in billions of yen, except percentages)
Assets:Interest-earning assets:
Interest-bearing deposits in otherbanks:
Domestic . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

1,822
3,509

2
17

0.13%
0.46%

3,096
3,600

3
15

0.10%
0.42%

10,995
4,878

12
22

0.10%
0.45%

Total . . . . . . . . . . . . . . . . . . . . . . .

5,331

19

0.35%

6,696

18

0.27%

15,87334

0.21%

Call loans and funds sold, andreceivables under resale agreements
and securities borrowing
transactions:
Domestic . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

6,122
9,082

11
35

0.17%
0.39%

6,676
10,226

11
51

0.17%
0.50%

4,048
11,961

8
34

0.21%
0.28%

Total . . . . . . . . . . . . . . . . . . . . . . .

15,20446

0.30%

16,90262

0.37%

16,00942

0.26%

Trading account assets:
Domestic . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

8,884
8,855

25
168

0.28%
1.91%

9,019
11,352

15
154

0.17%
1.36%

6,937
11,780

24
137

0.35%
1.16%

Total . . . . . . . . . . . . . . . . . . . . . . .

17,739193

1.09%

20,371169

0.83%

18,717161

0.86%

Investments:
Domestic . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

39,529
1,639

206
36

0.52%
2.18%

38,974
2,045

191
34

0.49%
1.73%

34,481
1,910

155
48

0.45%
2.52%

Total . . . . . . . . . . . . . . . . . . . . . . .

41,168242

0.59%

41,019225

0.55%

36,391203

0.56%

Loans (1):Domestic . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

53,77011,334

707
230

1.31%
2.03%

53,222
14,289

674
275

1.27%
1.92%

54,23017,420

634
349

1.17%
2.00%

Total . . . . . . . . . . . . . . . . . . . . . . .

65,104937

1.44%

67,511949

1.40%

71,650983

1.37%

Total interest-earning assets:
Domestic . . . . . . . . . . . . . . . . . . . 110,127
Foreign . . . . . . . . . . . . . . . . . . . . . 34,419

951
486

0.86% 110,987
1.41% 41,512

894
529

0.81% 110,691
1.28% 47,949

833
590

0.75%
1.23%

Total . . . . . . . . . . . . . . . . . . . . . . . 144,546

1,437

0.99% 152,499

1,423

0.93% 158,640

1,423

0.90%

Noninterest-earning assets:
Cash and due from banks . . . . . . . . . . .
Other noninterest-earning assets (2) . . .
Allowance for loan losses . . . . . . . . . .

1,877
19,123(846)

2,158
19,109(707)

2,877
18,872(686)

Total noninterest-earning
assets . . . . . . . . . . . . . . . . . . . .

20,154

20,56021,063

Total average assets . . . . . . . . . . . . . . . . . 164,700

173,059

179,703

Notes:(1) Average balances of loans include all nonaccrual loans. The amortized portion of net loan origination fees (costs) is included in interest
income on loans.
(2) The fair value carrying amounts of derivative contracts are reported in Other noninterest-earning assets.

A-2

Within total average assets, the percentage attributable to foreign activities was 25.7%, 29.1% and 31.3%,
respectively, for the fiscal years ended March 31, 2012, 2013 and 2014.
Averagebalance

2012
Interest
expense2013
Average Average Interest Average Averageratebalance expense
ratebalance(in billions of yen, except percentages)

2014Interest
expenseAveragerate

Liabilities and equity:
Interest-bearing liabilities:
Deposits:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

68,474
9,878

64
67

0.09%
0.68%

70,281
11,700

57
67

0.08%
0.58%

73,858
14,695

53
80

0.07%
0.55%

Total . . . . . . . . . . . . . . . . . . . . . . .

78,352131

0.17%

81,981124

0.15%

88,553133

0.15%

Debentures—Domestic . . . . . . . . . . .
Short-term borrowings (1):Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

86

—

0.45%

—

—

—

—

—

—

25,591
13,248

43
34

0.17%
0.25%

26,54016,653

42
49

0.16%
0.29%

20,471
20,598

29
28

0.14%
0.13%

Total . . . . . . . . . . . . . . . . . . . . . . .

38,83977

0.20%

43,19391

0.21%

41,06957

0.14%

Trading account liabilities:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

3,833
892

14
14

0.38%
1.58%

2,986
965

13
11

0.44%
1.09%

2,836
1,319

12
19

0.42%
1.44%

Total . . . . . . . . . . . . . . . . . . . . . . .

4,725

28

0.60%

3,951

24

0.60%

4,155

31

0.74%

Long-term debt:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

8,172
650

175
5

2.13%
0.84%

8,184
733

171
2

2.09%
0.40%

9,046
764

178
3

1.97%
0.39%

Total . . . . . . . . . . . . . . . . . . . . . . .

8,822

180

2.04%

8,917

173

1.95%

9,810

181

1.84%

Total interest-bearing liabilities:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . .

106,156
24,668

296
120

0.28%
0.49%

107,991
30,051

283
129

0.26%
0.43%

106,21137,376

272
130

0.26%
0.35%

Total . . . . . . . . . . . . . . . . . . . . . . .

130,824

416

0.32%

138,042

412

0.30%

143,587

402

0.28%

Noninterest-bearing liabilities (2) . . . . . .

29,477

1,021

0.62%

30,26730,843Equity . . . . . . . . . . . . . . . . . . . . . . . . . .

4,399

4,750

5,273

Total average liabilities and equity . . . .

164,700

173,059

179,703

Net interest income and averageinterest rate spread . . . . . . . . . . . . . .
Net interest income as a percentage of
average total interest-earning
assets . . . . . . . . . . . . . . . . . . . . . . . . .

1,021

0.67%

0.71%

1,011

0.63%

0.66%

0.64%

Notes:(1) Short-term borrowings consist of Due to trust accounts, Call money and funds purchased, Payables under repurchase agreements andsecurities lending transactions, and Other short-term borrowings.
(2) The fair value carrying amounts of derivative contracts are reported in Noninterest-bearing liabilities.

Within total average liabilities, which is the total of interest-bearing liabilities and noninterest-bearing liabilities
shown in the above table, the percentage attributable to foreign activities was 21.5%, 24.3% and 27.2%,
respectively, for the fiscal years ended March 31, 2012, 2013 and 2014.

A-3

Analysis of net interest income
The following tables show changes in the MHFG Group’s Interest and dividend income, Interest expense, andNet interest income based on changes in volume and changes in rate for the fiscal year ended March 31, 2013
compared to the fiscal year ended March 31, 2012 and the fiscal year ended March 31, 2014 compared to thefiscal year ended March 31, 2013. Changes attributable to the combined impact of changes in rate and volume
have been allocated proportionately to the changes due to volume changes and changes due to rate changes.
Fiscal year ended March 31, 2013
Fiscal year ended March 31, 2014
versusversusfiscal year ended March 31, 2012fiscal year ended March 31, 2013
Increase (decrease)
Increase (decrease)
due to changes indue to changes in
Net
Net
VolumeYieldchangeVolumeYieldchange(in billions of yen)Interest and dividend income:Interest-bearing deposits in other banks:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

—

—
(2)

1
(2)

9
6

—
1

9
7

Total . . . . . . . . . . . . . . . . . . . . . . . .

1

(2)

(1)

15

1

16

Call loans and funds sold, andreceivables under resale agreements
and securities borrowing transactions:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

1
5

(1)
11

—
16

(5)
5

2
(22)

(3)
(17)

Total . . . . . . . . . . . . . . . . . . . . . . . .

6

10

16

—

(20)

(20)

Trading account assets:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

—
34

(10)
(48)

(10)
(14)

(3)
5

12
(22)

9
(17)

Total . . . . . . . . . . . . . . . . . . . . . . . .

34

(58)

(24)

2

(10)

(8)

Investments:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

(3)
7

(12)
(9)

(15)
(2)

(22)
(2)

(14)
16

(36)
14

Total . . . . . . . . . . . . . . . . . . . . . . . .

4

(21)

(17)

(24)

2

(22)

Loans:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

(7)
57

(26)
(12)

(33)
45

12
62

(52)
12

(40)
74

Total . . . . . . . . . . . . . . . . . . . . . . . .

50

(38)

12

74

(40)

34

Total interest and dividend income:Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

(8)
103

(49)
(60)

(57)
43

(9)
76

(52)
(15)

(61)
61

Total . . . . . . . . . . . . . . . . . . . . . . . .

95

(109)

(14)

67

(67)

—

1

A-4

Fiscal year ended March 31, 2013
Fiscal year ended March 31, 2014
versusversusfiscal year ended March 31, 2012fiscal year ended March 31, 2013
Increase (decrease)
Increase (decrease)
due to changes indue to changes in
Net
Net
VolumeRatechangeVolumeRatechange(in billions of yen)Interest expense:
Deposits:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

1
10

(8)
(10)

(7)
—

3
16

(7)
(3)

(4)
13

Total . . . . . . . . . . . . . . . . . . . . . . . .

11

(18)

(7)

19

(10)

9

Debentures—Domestic . . . . . . . . . . . . .
Short-term borrowings:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

—

—

—

—

—

—

2
9

(3)
6

(1)
15

(9)
5

(4)
(26)

(13)
(21)

Total . . . . . . . . . . . . . . . . . . . . . . . .

11

3

14

(4)

(30)

(34)

Trading account liabilities:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

(3)
1

2
(4)

(1)
(3)

—
4

(1)
4

(1)
8

Total . . . . . . . . . . . . . . . . . . . . . . . .

(2)

(2)

(4)

4

3

7

Long-term debt:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

—
—

(4)
(3)

(4)
(3)

17
1

(10)
—

7
1

Total . . . . . . . . . . . . . . . . . . . . . . . .

—

(7)

(7)

18

(10)

8

Total interest expense:
Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

—
20

(13)
(11)

(13)
9

11
26

(22)
(25)

(11)
1

Total . . . . . . . . . . . . . . . . . . . . . . . .

20

(24)

(4)

37

(47)

(10)

Net interest income:Domestic . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . .

(8)
83

(36)
(49)

(44)
34

(20)
50

(30)
10

(50)
60

Total . . . . . . . . . . . . . . . . . . . . . . . .

75

(85)

(10)

30

(20)

10

A-5

II. Investment portfolio
The following table shows amortized cost, fair value and net unrealized gains (losses) of available-for-sale andheld-to-maturity securities at March 31, 2012, 2013 and 2014:
2012

2013
2014
Net
Net
Net
unrealized
unrealized
unrealized
Amortized Fairgains Amortized Fairgains Amortized Fair
gains
cost
value (losses)
costvalue (losses)
costvalue (losses)(in billions of yen)
Available-for-sale securities:
Domestic:
Japanese government bonds . . . . . . . . . . . .
Agency mortgage-backed securities (1) . . . .
Corporate bonds and other debt
securities . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities (marketable) . . . . . . . . . . .

32,629824

32,647830

18
630,710842

30,783862

73
20

22,040842

22,056
855

16
13

3,653
1,792

3,670
2,751

17
959

3,054
1,598

3,084
3,036

30
1,438

2,696
1,648

2,717
3,402

21
1,754

38,89839,8981,000

36,20437,765

1,561

27,22629,030

1,804

101
444
148

101
445
150

—
1
2

177
596
145

178
598
144

1
2
(1)

158
719
113

154
721
106

(4)
2
(7)

606
40

624
41

18
1

603
101

626
103

23
2

599
20

618
20

19
—

Total foreign . . . . . . . . . . . . . . . . . . . . . . . .

1,339

1,361

22

1,622

1,649

27

1,609

1,619

10

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40,237

41,2591,022

37,826

39,414

1,588

28,83530,6491,814

Held-to-maturity securities:
Domestic:
Japanese government bonds . . . . . . . . . . . .
Corporate bonds and other debt
securities . . . . . . . . . . . . . . . . . . . . . . . . .

1,801

1,815

14

3,000

3,020

20

4,040

4,058

18

1

1

—

—

—

—

—

—

—

Total domestic . . . . . . . . . . . . . . . . . . . . . . .

1,802

1,816

14

3,000

3,020

20

4,040

4,058

18

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,802

1,816

14

3,000

3,020

20

4,040

4,058

18

Total domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign:
U.S. Treasury bonds and federal agency
securities . . . . . . . . . . . . . . . . . . . . . . . . .
Other foreign government bonds . . . . . . . . .
Agency mortgage-backed securities (2) . . . .
Corporate bonds and other debt
securities . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities (marketable) . . . . . . . . . . .

Notes:(1) All domestic agency mortgage-backed securities are mortgage-backed securities issued by Japan Housing Finance Agency, a Japanese
government-sponsored enterprise.
(2) Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association or Ginnie Mae securities,
which are guaranteed by the United States government.

A-6

The following table shows the book values, contractual maturities and weighted average yields ofavailable-for-sale and held-to-maturity debt securities at March 31, 2014. Fair value and amortized cost are thebasis of the book value for available-for-sale and held-to-maturity debt securities, respectively. Weighted average
yields are calculated based on amortized cost for all debt securities.

One year or less
Amount Yield
Available-for-sale securities:
Domestic:
Japanese government bonds . . . . . .
Agency mortgage-backed
securities . . . . . . . . . . . . . . . . . . .
Corporate bonds and other debt
securities . . . . . . . . . . . . . . . . . . .
Total domestic . . . . . . . . . . . . . . . . .
Foreign:
U.S. Treasury bonds and federal
agency securities . . . . . . . . . . . . .
Other foreign government bonds . . .
Agency mortgage-backed
securities . . . . . . . . . . . . . . . . . . .
Corporate bonds and other debt
securities . . . . . . . . . . . . . . . . . . .

Maturity
After one year
After five years
throughthroughfive years
ten years
After ten years
Amount Yield Amount Yield Amount Yield(in billions of yen, except percentages)

Total
Amount Yield

5,927

0.05%

13,882

0.12%

2,247

0.35%

—

— %

22,056

0.13%

—

— %

—

— %

—

— %

855

1.38%

855

1.38%

404

0.44%

1,390

0.60%

443

0.75%

480

2.36%

2,717

0.91%

6,331

0.08%

15,272

0.16%

2,690

0.42%

1,335

1.73%

25,628

0.25%

44
508

2.70%
2.31%

72
213

0.82%
3.81%

38
—

0.94%
— %

—
—

— %
— %

154
721

1.37%
2.75%

—

— %

—

— %

—

— %

106

2.76%

106

2.76%

222

2.57%

258

2.67%

90

0.83%

48

0.81%

618

2.26%

Total foreign . . . . . . . . . . . . . . . . . .

774

2.41%

543

2.86%

128

0.87%

154

2.27%

1,599

2.43%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,105

0.33%

15,815

0.26%

2,818

0.44%

1,489

1.79%

27,2270.38%

Held-to-maturity securities:
Domestic:
Japanese government bonds . . . . . .

600

0.58%

3,080

0.27%

360

0.73%

—

— %

4,040

0.36%

Total domestic . . . . . . . . . . . . . . . . .

600

0.58%

3,080

0.27%

360

0.73%

—

— %

4,040

0.36%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

600

0.58%

3,080

0.27%

360

0.73%

—

— %

4,040

0.36%

Other than Japanese government bonds and Japanese agency mortgage-backed securities issued by Japan
Housing Finance Agency, the MHFG Group did not have any securities of individual issuers with respect towhich their aggregate book value exceeded 10% of the Group’s shareholders’ equity at March 31, 2014.
In addition to Available-for-sale securities and Held-to-maturity securities, the MHFG Group’s Investments also
include Other investments. See Note 3 “Investments” to the consolidated financial statements included elsewherein this annual report for information regarding Other investments.

A-7

III. Loan portfolio
Types of loans
The following table shows loans outstanding by domicile and industry of borrower at March 31, 2010, 2011,2012, 2013 and 2014:
2010

2011
2012
2013
(in billions of yen)

2014

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . . . . . . . .
Other industries (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals:
Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,065
7,854
5,153
5,306
3,237
4,290
5,459
3,332

7,617
7,308
4,287
5,314
3,228
3,908
7,154
3,759

7,587
7,271
3,981
5,295
3,201
3,501
6,912
4,319

8,079
7,478
3,972
5,356
3,147
3,143
6,907
4,522

8,026
7,205
3,957
5,351
3,247
3,460
6,734
4,983

11,093789

11,436745

11,191
719

11,234742

11,187788

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54,57854,75653,97754,58054,938Foreign:
Commercial and industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . . . . . . . .
Other (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,237
1,722
292
32

6,965
2,588
453
9

8,146
3,343
522
91

10,481
4,089
596
199

12,938
4,610
883
255

Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,283

10,015

12,102

15,365

18,686

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unearned income and deferred loan fees—net . . . . . . . . . . . .

63,86178

64,771
81

66,07990

69,945
112

73,624139

Total loans before allowance for loan losses . . . . . . . . . . . . . . . . . .

63,78364,69065,98969,83373,485

Note: Other industries of domestic and Other of foreign include trade receivables and lease receivables of
consolidated variable interest entities.
There were no concentrations of loans exceeding 10% of total loans which are not disclosed as a category ofloans in the table above.

A-8

Maturities and sensitivities of loans to changes in interest rates
The following table shows the maturities of loan portfolio by domicile and industry of borrower at March 31,
2014:

One yearor less

Maturity
After one year
throughAfterfive years
five years(in billions of yen)

Total

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,381
2,037
1,798
3,505
1,041
1,941
5,705
2,637
1,447

2,992
3,294
1,662
1,600
1,464
1,149
492
1,309
2,537

653
1,874
497
246
742
370
537
1,037
7,991

8,026
7,205
3,957
5,351
3,247
3,460
6,734
4,983
11,975

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24,492

16,49913,94754,938

Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,384

8,213

2,089

18,686

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32,876

24,712

16,03673,624Foreign:

Of the above loans due after one year, loans which had floating rates and fixed rates at March 31, 2014 were as
follows:(in billions of yen)

Floating rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31,568
9,180

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40,748A-9

Impaired loans
The MHFG Group considers loans to be impaired when it is probable that the Group will be unable to collect all
the scheduled payments of principal and interest when due according to the contractual terms of the loan. The
Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as
impaired loans. Impaired loans include loans past due for 90 days or more and restructured loans that meet thedefinition of troubled debt restructuring in accordance with ASC 310 “Receivables”. All of the Group’s impairedloans are designated as nonaccrual loans. The Group does not have any loans to borrowers that cause
management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment
terms for the periods presented other than those already designated as impaired loans. The following table shows
the distribution of impaired loans at March 31, 2010, 2011, 2012, 2013 and 2014 by domicile and industry ofborrower.
2010

2011
2012
2013
(in billions of yen)

2014

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

270
302
181
159
139
21
1
201

309
265
108
177
54
3
1
290

297
205
119
201
53
12
4
264

336
249
90
173
59
14
5
235

229
138
79
156
48
11
1
195

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,274

1,207

1,155

1,161

857

Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

130

116

155

303

288

Total impaired loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,404

1,323

1,310

1,464

1,145

Foreign:

Had interest on nonaccrual loans been accrued at the original contractual terms, gross interest income on
domestic and foreign nonaccrual loans outstanding during the fiscal year ended March 31, 2014 would have been
¥18 billion and ¥7 billion, respectively. The MHFG group recognized interest income on those domestic andforeign loans of ¥15 billion and ¥5 billion, respectively, in the consolidated statements of income for the fiscal
year ended March 31, 2014.

A-10

Cross-border outstandings
Cross-border outstandings are defined as loans (including accrued interest), acceptances, interest-bearing
deposits with other banks, other interest-bearing investments and any other monetary assets denominated inJapanese yen or other non-local currencies. This cross-border disclosure is based on the reports to the Bank ofJapan required under Japanese foreign exchange-related law. Local currency outstandings are netted out fromcross-border outstandings.
The following table sets forth the cross-border outstandings to borrowers in countries with respect to which thetotal of such outstandings exceeded 0.75% of consolidated total assets at March 31, 2012, 2013 and 2014:
Publicinstitutions% of total
Undrawn
Banks Others
Total
assetscommitments(in billions of yen, except percentages)

2012
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,075
1,669

291
146

3,229
137

7,595
1,952

4.57%
1.17%

2,265
177

2013
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,248
2,078

374
223

3,441
158

9,063
2,459

5.07%
1.38%

2,914
258

2014
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,425
1,447
1,376
107
93

344
283
97
740
406

3,400
166
240
631
911

7,169
1,896
1,713
1,478
1,410

4.08%
1.08%
0.98%
0.84%
0.80%

3,682
549
330
55
48

A-11

IV. Summary of loan loss experience
The following table shows an analysis of loan loss experience by domicile and industry of borrower for the fiscal
years ended March 31, 2010, 2011, 2012, 2013 and 2014:
2010

2011
2012
2013
(in billions of yen, except percentages)

2014

Allowance for loan losses at beginning of fiscal year . . . . . . .
Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . .

870
222

880
1

735
(23)

683
140

773
(126)

Charge-offs:
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17
56
17
48
26
1
2
27

20
20
20
28
59
1
1
17

18
7
7
14
2
1
2
19

25
5
10
11
2
—
—
17

20
1
3
13
7
—
—
13

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

194
66

166
19

70
10

70
25

57
8

Total charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

260

185

80

95

65

Recoveries:
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7
25
3
5
1
4
—
3

7
14
5
5
1
1
—
2

12
12
4
9
2
1
—
3

4
8
3
3
1
1

6
5
3
3
3

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48
6

35
13

Total recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54

Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

—
1
3

43
9

24
8

24
2

48

52

32

26

206

137

28

63

39

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)
880

(9)
735

(1)
683

13
773

18
626

Ratio of net charge-offs to average loans outstanding . . . . . .

0.31%

0.22%

0.04%

0.09%

0.05%

Note: Others include primarily foreign exchange translation.

A-12

—

The following table shows an allocation of the MHFG Group’s allowance for loan losses by domicile andindustry of borrower at March 31, 2010, 2011, 2012, 2013 and 2014:
2010
2011
2012
2013
2014
% of
% of
% of
% of
% of
loans inloans inloans inloans inloans in
each
each
each
each
each
category
category
category
category
category
to total
to total
to total
to total
to total
Amount loans Amount loans Amount loans Amount loans Amount loans(in billions of yen, except percentages)

Domestic:
Manufacturing . . . . . . . . . . . .
Construction and real estate . .
Services . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . .
Transportation andcommunications . . . . . . . . .
Banks and other financial
institutions . . . . . . . . . . . . .
Other industries (Note) . . . . . . . .
Individuals . . . . . . . . . . . . . . .
Mortgage loans . . . . . . . .
Other . . . . . . . . . . . . . . . .

165
128
96
102

12.63% 155
12.29% 104
8.07% 55
8.31% 103

11.76% 132
11.28% 83
6.62% 51
8.20% 101

11.48% 210
11.00% 79
6.03% 35
8.01% 84

11.55% 177
10.69% 51
5.68% 30
7.66% 65

10.90%
9.79%
5.37%
7.27%

95

5.07%

4.98%

4.84%

26

4.50%

22

4.41%

29
8
128
101
27

6.72% 15
13.77% 12
18.60% 150
17.37% 120
1.23% 30

6.03% 20
16.86% 12
18.81% 127
17.66% 102
1.15% 25

5.30% 28
17.00% 12
18.03% 109
16.94% 86
1.09% 23

4.49%
16.34%
17.12%
16.06%
1.06%

21
5
95
74
21

4.70%
15.92%
16.26%
15.19%
1.07%

Total domestic . . . . . . . . . . . . . . . .
Total foreign . . . . . . . . . . . . . . . . . .

751
129

85.46% 628
14.54% 107

84.54% 553
15.46% 130

81.69% 583
18.31% 190

78.03% 466
21.97% 160

74.62%
25.38%

Total allowance for loan losses . . .

880

100.00% 735

100.00% 683

100.00% 773

100.00% 626

100.00%Note:

34

Other industries include government and public institutions.

A-13

27

V. Deposits
The following table shows the average amount of, and the average rate on, the following deposit categories forthe fiscal years ended March 31, 2012, 2013 and 2014:
2012
2013
2014
Average Average Average Average
Average
Averageamountrate
amountrate
amountrate(in billions of yen, except percentages)

Domestic offices:
Noninterest-bearing demand deposits . . . . . . . . . .
Interest-bearing demand deposits . . . . . . . . . . . . .
Deposits at notice (Note) . . . . . . . . . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . . . . . . . . . . . . . .

10,30729,876637
28,154
9,807

— %
0.02%
0.02%
0.16%
0.11%

10,47031,088652
28,173
10,368

— %
0.02%
0.02%
0.14%
0.11%

11,83633,399668
28,751
11,040

— %
0.02%
0.02%
0.13%
0.09%

Foreign offices:
Noninterest-bearing demand deposits . . . . . . . . . .
Interest-bearing deposits, principally time
deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . . . . . . . . . . . . . .

606

— %

787

— %

995

— %

7,783
2,095

0.66%
0.75%

8,255
3,445

0.59%
0.54%

10,496
4,199

0.60%
0.41%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

89,265

0.15% 93,238

0.13% 101,384

0.13%

Note: Deposits at notice represent interest-bearing demand deposits which require the depositor to give two or
more days notice in advance of withdrawal.
The amounts of total deposits by foreign depositors in domestic offices at March 31, 2012, 2013 and 2014 were¥504 billion, ¥741 billion and ¥ 726 billion, respectively.
At March 31, 2014, the balance and remaining maturities of time deposits and certificates of deposit issued bydomestic offices in amounts of ¥10 million (approximately US$97 thousand at the Federal Reserve Bank of New
York’s noon buying rate on March 31, 2014) or more and the balances of those deposits issued by foreign offices
in amounts of US$100,000 or more are shown in the following table:Timedeposits

Certificates ofdeposit(in billions of yen)

Total

Domestic offices:
Due in three months or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after three months through six months . . . . . . . . . . . . . . . . . . . . . . . . .
Due after six months through twelve months . . . . . . . . . . . . . . . . . . . . . . . .
Due after twelve months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,979
3,716
3,425
1,231

7,419
484
213
2

17,398
4,200
3,638
1,233

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18,351
9,556

8,118
4,638

26,46914,194

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27,907

12,756

40,663

A-14

VI. Short-term borrowings
The following table shows certain additional information with respect to the MHFG Group’s short-termborrowings for the fiscal years ended March 31, 2012, 2013 and 2014:
2012
2013
2014
(in billions of yen, except percentages)

Due to trust accounts:
Average balance outstanding during the fiscal year . . . . . . . . . . . . . . .
Maximum balance outstanding at any month-end during the fiscal
year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average interest rate during the fiscal year . . . . . . . . . . . . . .
Weighted average interest rate on balance at end of fiscal year . . . . . .
Call money and funds purchased, and payables under repurchaseagreements and securities lending transactions:Average balance outstanding during the fiscal year . . . . . . . . . . . . . . .
Maximum balance outstanding at any month-end during the fiscal
year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average interest rate during the fiscal year . . . . . . . . . . . . . .
Weighted average interest rate on balance at end of fiscal year . . . . . .
Other short-term borrowings:
Average balance outstanding during the fiscal year . . . . . . . . . . . . . . .
Maximum balance outstanding at any month-end during the fiscal
year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average interest rate during the fiscal year . . . . . . . . . . . . . .
Weighted average interest rate on balance at end of fiscal year . . . . . .

A-15

610

618

742

651
560
0.25%
0.16%

668
619
0.23%
0.23%

840
742
0.19%
0.20%

26,06630,99032,33528,846
25,6830.21%
0.18%

35,50835,0740.24%
0.19%

40,34730,2590.14%
0.11%

12,163

11,585

7,992

13,95013,9500.16%
0.14%

15,093
6,724
0.13%
0.12%

9,790
6,024
0.13%
0.13%

MIZUHO FINANCIAL GROUP, INC.
Index to Consolidated Financial Statements
Page

Consolidated Financial Statements of Mizuho Financial Group, Inc. and Subsidiaries
Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-2
Consolidated Balance Sheets as of March 31, 2013 and 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-4
Consolidated Statements of Income for the fiscal years ended March 31, 2012, 2013 and 2014 . . . . . .
F-6
Consolidated Statements of Comprehensive Income for the fiscal years ended March 31, 2012, 2013
and 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-7
Consolidated Statements of Equity for the fiscal years ended March 31, 2012, 2013 and 2014 . . . . . .
F-8
Consolidated Statements of Cash Flows for the fiscal years ended March 31, 2012, 2013 and 2014 . . F-9
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-11

F-1

Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
of Mizuho Financial Group, Inc.
We have audited the accompanying consolidated balance sheets of Mizuho Financial Group, Inc. and subsidiaries(the “Company”) as of March 31, 2014 and 2013, and the related consolidated statements of income,comprehensive income, equity and cash flows for each of the three years in the period ended March 31, 2014.
These financial statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Mizuho Financial Group, Inc. and subsidiaries at March 31, 2014 and 2013, and theconsolidated results of their operations and their cash flows for each of the three years in the period ended
March 31, 2014, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board(United States), Mizuho Financial Group, Inc. and subsidiaries’ internal control over financial reporting as ofMarch 31, 2014, based on criteria established in Internal Control-Integrated Framework issued by the Committeeof Sponsoring Organizations of the Treadway Commission (1992 framework) and our report dated July 25, 2014expressed an unqualified opinion thereon.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
July 25, 2014

F-2

Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
of Mizuho Financial Group, Inc.
We have audited Mizuho Financial Group, Inc. and subsidiaries’ (the “Company”) internal control over financial
reporting as of March 31, 2014, based on criteria established in Internal Control—Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework) (the “COSO
criteria”). The Mizuho Financial Group, Inc. and subsidiaries’ management is responsible for maintaining
effective internal control over financial reporting, and for its assessment of the effectiveness of internal control
over financial reporting included in the accompanying Management’s Annual Report on Internal Control overFinancial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial
reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was maintained in all material respects. Our audit
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on theassessed risk, and performing such other procedures as we considered necessary in the circumstances. We believethat our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financial statements in accordancewith generally accepted accounting principles, and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of thecompany’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion, Mizuho Financial Group, Inc. and subsidiaries maintained, in all material respects, effective
internal control over financial reporting as of March 31, 2014, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board(United States), the consolidated balance sheets of Mizuho Financial Group, Inc. and subsidiaries as ofMarch 31, 2014 and 2013, and the related consolidated statements of income, comprehensive income, equity andcash flows for each of the three years in the period ended March 31, 2014 and our report dated July 25, 2014expressed an unqualified opinion thereon.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
July 25, 2014
F-3

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMARCH 31, 2013 AND 2014
2013
2014
(in millions of yen)
Assets:Cash and due from banks (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits in other banks (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call loans and funds sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under resale agreements (Note 29) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under securities borrowing transactions (Note 29) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets (including assets pledged that secured parties are permitted to sell or repledge of¥12,090,161 million in 2013 and ¥9,445,432 million in 2014) (Notes 8, 28 and 29) . . . . . . . . . . . . . . . .
Investments (Notes 3, 8 and 28):
Available-for-sale securities (including assets pledged that secured parties are permitted to sell or
repledge of ¥6,549,038 million in 2013 and ¥3,422,827 million in 2014) . . . . . . . . . . . . . . . . . . . . .
Held-to-maturity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans (Notes 4, 5, 8 and 28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,268,442
11,215,597
530,542
9,024,808
5,543,914

1,696,879
19,037,527
468,283
8,349,365
5,010,740

34,066,555

27,408,259

39,413,951
3,000,403
838,135
69,833,483(772,957)

30,648,761
4,040,083
792,689
73,484,954(626,177)

Loans, net of allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment—net (Note 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due from customers on acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill (Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets (Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets (Note 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets (Notes 4, 8, 12, 20, 22 and 28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69,060,526
1,091,989
101,590
276,193
6,147
64,474
641,777
2,601,951

72,858,777
1,356,594
92,398264,380
11,54958,947405,120
3,198,995

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

178,746,994

175,699,346

The following table presents certain assets of consolidated variable interest entities (“VIE”s), which are includedin the consolidated balance sheets above. The assets in the table below include only those assets that can be used
to settle obligations of consolidated VIEs on the following page, and are in excess of those obligations.
2013
2014
(in millions of yen)
Assets of consolidated VIEs:
Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans, net of allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15,0783,216
936,800
83,762
2,428,898
343,522

25,762
10,306
1,383,280
72,6262,639,153
421,585

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,811,276

4,552,712

See the accompanying Notes to the Consolidated Financial Statements.
F-4

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS—(Continued)
MARCH 31, 2013 AND 2014
2013
2014
(in millions of yen)
Liabilities and equity:
Deposits (Notes 8 and 9):
Domestic:
Noninterest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign:
Noninterest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due to trust accounts (Note 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call money and funds purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under repurchase agreements (Note 29) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under securities lending transactions (Note 29) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings (Note 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account liabilities (Notes 28 and 29) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank acceptances outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities (Note 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (including liabilities accounted for at fair value of ¥552,354 million in 2013, and¥657,626 million in 2014) (Notes 11 and 28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities (Notes 12, 20, 22, 23 and 28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12,138,640
74,218,101

12,751,194
73,114,857

836,177
13,028,638
619,271
6,126,425
17,451,080
11,496,178
6,724,100
16,768,830
101,590
37,555
14,301
158,664

1,114,729
15,629,374
742,036
7,194,433
16,797,809
6,265,875
6,023,972
14,824,922
92,39857,12433,181
160,1078,802,223
4,368,126

9,853,941
4,422,023

172,889,899

169,077,975

377,354

312,651

5,460,821(883,390)
777,997

5,489,295(537,479)
1,117,877

Commitments and contingencies (Note 23)
Equity:MHFG shareholders’ equity:
Preferred stock (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock (Note 14)—no par value, authorized 48,000,000,000 shares in 2013 and 2014,
and issued 24,164,864,477 shares in 2013, and 24,263,885,187 shares in 2014 . . . . . . . . . . . .
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income, net of tax (Note 16) . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Treasury stock, at cost—Common stock 22,128,230 shares in 2013, and 13,817,747
shares in 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total MHFG shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests (Note 24) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4,662)(3,874)

5,728,120
128,975

6,378,470
242,901

Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,857,095

6,621,371

Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

178,746,994

175,699,346

The following table presents certain liabilities of consolidated VIEs, which are included in the consolidatedbalance sheets above. The creditors or investors of the consolidated VIEs have no recourse to the MHFG Group,
except where the Group provides credit enhancement through guarantees or other means.
2013
2014
(in millions of yen)
Liabilities of consolidated VIEs:
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

253,311
10,585144,055
978,685

287,910
7,355
173,870929,990

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,386,636

1,399,125

See the accompanying Notes to the Consolidated Financial Statements.
F-5

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
FOR THE FISCAL YEARS ENDED MARCH 31, 2012, 2013 AND 2014
2012
Interest and dividend income:Loans, including fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call loans and funds sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under resale agreements and securities borrowing transactions . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2013
2014
(in millions of yen)

936,574

947,983

982,402

170,651
71,579193,288
6,601
39,68418,709162,451
63,329169,216
4,947
57,22018,229131,295
72,052
161,212
5,949
36,28133,608

Total interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,437,086

1,423,375

1,422,799

Interest expense:
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call money and funds purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under repurchase agreements and securities lending transactions . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

131,140
385
28,436
8,604
47,114
20,481
179,799

124,053—
23,688
7,686
66,995
16,490173,939

133,140—
30,746
7,664
36,906
12,120180,989

415,959

412,851

401,565

Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for loan losses (Notes 4 and 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,021,127 1,010,524(23,044)
139,947

1,021,234(126,230)

Net interest income after provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,044,171

870,577

1,147,464

Noninterest income:Fees and commissions (Note 26) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange gains (losses)—net (Note 27) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account gains (losses)—net (Note 27) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment gains (losses)—net (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains on disposal of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other noninterest income (Note 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

575,413
98,054
333,315(32,991)
19,92496,420612,808
20,514534,100
121,159
12,411
138,427

675,763
25,631(59,687)
265,531
10,460165,136

Total noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,090,135

1,439,419

1,082,834

Noninterest expenses:
Salaries and employee benefits (Note 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of goodwill (Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and commission expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for losses on off-balance-sheet instruments (Note 23) . . . . . . . . . . . . . . . . .
Other noninterest expenses (Notes 4 and 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

587,332
477,512
5,637
174,788
107,898(1,203)
119,507572,301
439,708—
171,697
109,018
4,584
127,508

586,737
486,772
3,792
172,566
122,419
12,095
119,574

Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,471,471

1,424,816

1,503,955

Income before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense (Note 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

662,835
13,878885,180
4,024

726,343
226,108

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Net income (loss) attributable to noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . .

648,957(7,432)881,156
5,744

500,235
1,751

Net income attributable to MHFG shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

656,389875,412498,484

Earnings per common share (Note 18):
Basic net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28.07(in yen)
36.05

20.33

Diluted net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26.78

34.47

19.64

See the accompanying Notes to the Consolidated Financial Statements.
F-6

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED MARCH 31, 2012, 2013 AND 20142012

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2013
2014
(in millions of yen)

648,957

Other comprehensive income (loss), net of tax:
Unrealized net gains (losses) on available-for-sale securities, net of tax(Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,285
Foreign currency translation adjustments, net of tax . . . . . . . . . . . . . . . . . .
(7,814)
Pension liability adjustments, net of tax (Note 20) . . . . . . . . . . . . . . . . . . . .
39,687881,156

500,235

368,896 137,128
87,651
76,10478,676 136,942

Total other comprehensive income (loss), net of tax . . . . . . . . . . . . . . . . . .

137,158

535,223

350,174

Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Total comprehensive income (loss) attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

786,115

1,416,379

850,409(10,570)

8,558

12,045

Total comprehensive income attributable to MHFG shareholders . . . . . . . . . . . .

796,685

1,407,821

838,364

Note: The amounts that have been reclassified out of Accumulated other comprehensive income into net income
are presented in Note 16 “Accumulated other comprehensive income (loss)”.

See the accompanying Notes to the Consolidated Financial Statements.
F-7

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EQUITY
FOR THE FISCAL YEARS ENDED MARCH 31, 2012, 2013 AND 20142012

Preferred stock (Note 13):
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conversion to common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation of preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock (Note 14):
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuance of new shares of common stock for stock exchanges (Note 14) . .
Issuance of new shares of common stock by conversion of preferredstock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains (losses) on disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation (Note 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in ownership interest in consolidated subsidiaries . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated deficit:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation of preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income, net of tax (Note 16):
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock, at cost:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of stock exchanges (Note 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total MHFG shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of stock exchanges (Note 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of other increase/decrease in consolidated subsidiaries . . . . . . . . . . .
Dividends paid to noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to noncontrolling interests . . . . . . . . . . . . . .
Unrealized net gains (losses) on available-for-sale securities attributable tononcontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustments attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension liability adjustments attributable to noncontrolling interests . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2013(in millions of yen)

2014

453,576(43,208)—410,368

410,368(33,014)—377,354377,354(28,013)(36,690)
312,651

5,164,160
244,100

5,427,992—

5,460,821—

43,208(48)
106(23,534)
5,427,992

33,01428,013
(631)
(31)
529
492
(83)
—
5,460,821 5,489,295(2,046,024) (1,606,108)
656,389875,412(216,473) (152,694)——(1,606,108) (883,390)
104,972
140,616
245,588(3,197)(2,560)12,001(13,318)—(7,074)4,470,766

245,588532,409
777,997(883,390)
498,484(152,265)(308)(537,479)
777,997339,880
1,117,877(7,074)(4,662)(395)(37,387)
2,807
1,177
—
—
—
36,998(4,662)(3,874)
5,728,120 6,378,470

361,869(216,558)
65,183(23,666)(7,432)

176,258—(36,457)(19,384)
5,744

128,975—
113,887(12,006)
1,751(2,044)

2,408

8,980

(1,353)
259
176,258
4,647,024

190
216
128,975
5,857,095

118
1,196
242,901
6,621,371

Note: The amounts that have been reclassified out of Accumulated other comprehensive income into net income arepresented in Note 16 “Accumulated other comprehensive income (loss)”.

See the accompanying Notes to the Consolidated Financial Statements.
F-8

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE FISCAL YEARS ENDED MARCH 31, 2012, 2013 AND 2014
2012
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Net income (loss) attributable to noncontrolling interests . . . . . . . . . . . . . . . . . . .

2013(in millions of yen)

2014

648,957(7,432)881,156
5,744

500,235
1,751

Net income attributable to MHFG shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment losses (gains)—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange losses (gains)—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in trading account liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

656,389875,412498,484

165,721(23,044)
32,991(5,747)(40,939)(2,953,353)
329,761
3,860(9,321)
15,28638,965

157,165
139,947(121,159)
160,588(43,831)(2,336,912)(536,213)
4,571(22,386)(20,215)445,045

161,258(126,230)(265,531)
127,254
90,375
7,205,841(2,359,775)(53,291)
21,735
12,262638,926

Net cash provided by (used in) operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,789,431)(1,297,988)

5,951,308

Cash flows from investing activities:
Proceeds from sales of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from maturities of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in call loans and funds sold, and receivables under resale agreements andsecurities borrowing transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69,659,407
75,617,212
64,003,905
15,079,088
14,578,614
9,862,926(87,496,663) (89,109,906) (65,822,738)
224,957
144,244
215,419(1,703,880) (2,501,863) (2,313,291)
2,074,843(4,638,673) (7,417,572)
480,641
13,231(174,517)(268,103)
18,002(161,359)

2,306,310
39,324(456,980)(1,842,893)(6,321,832)

417,303

Cash flows from financing activities:
Net change in deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in call money and funds purchased, and payables under repurchase agreements
and securities lending transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in due to trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayment of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payment to noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid to noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,109,866(740,933)

7,417,964—

657,308—3,594,469(69,662)(1,261,955)
1,052,849(1,479,148)
627
(107)
5
1,961
(2,560)(215,902)(23,666)

7,468,344
59,537(7,251,033)
1,602,983(1,488,151)
1,057
(11)
—
1,074
(7)
(152,514)(19,384)(6,771,338)
122,765(724,788)
1,999,764(1,097,627)
43,083(1)—
11(37,013)(152,163)(12,006)

Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,965,844

7,639,859(5,972,005)

Effect of exchange rate changes on cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,424)

31,776

31,831

Net increase (decrease) in cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and due from banks at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(667,904)
1,884,531

51,815
1,216,627

428,437
1,268,442

Cash and due from banks at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,216,627

1,268,442

1,696,879

See the accompanying Notes to the Consolidated Financial Statements.
F-9

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS—(Continued)
FOR THE FISCAL YEARS ENDED MARCH 31, 2012, 2013 AND 2014

Supplemental disclosure of cash flow information:
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes paid (refunded), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncash investing activities:
Transfer from loans into other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment in capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncash acquisition of noncontrolling interests in stock exchanges (Note 14) . . . . . . . . . . . . . . .

2012

2013
(in millions of yen)

2014

427,104
40,211

447,766
92,547

408,803
122,619

1,351
2,985
216,558

—
8,547
—

—
7,901
—

Note: Certain cash flows for the fiscal year ended March 31, 2012 have been aggregated to conform to the current year’s presentation.

See the accompanying Notes to the Consolidated Financial Statements.
F-10

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of presentation and summary of significant accounting policies
Basis of presentation
Mizuho Financial Group, Inc. (“MHFG”) is a joint stock corporation with limited liability under the laws ofJapan. MHFG, through its subsidiaries (“the MHFG Group”, or “the Group”), provides domestic andinternational financial services in Japan and other countries. MHFG’s subsidiaries are segmented on the basis of
the nature of the financial products and services. Mizuho Bank, Ltd. (“MHBK”) is a banking subsidiary andoffers a wide range of financial products and services mainly in relation to deposits, lending and exchange
settlement to individuals, small and medium enterprises (“SMEs”), large corporations, financial institutions,public sector entities and foreign corporations, including foreign subsidiaries of Japanese corporations. Mizuho
Trust & Banking Co., Ltd. (“MHTB”) is a trust bank subsidiary and offers mainly trust-related products andconsulting services. Mizuho Securities Co., Ltd. (“MHSC”) is a securities and investment banking subsidiary andoffers full-line securities services to corporations, financial institutions, public sector entities and individuals.
Other major subsidiaries include Trust & Custody Services Bank, Ltd. (“TCSB”), Mizuho Capital Co., Ltd., andMizuho Business Financial Center Co., Ltd. See Note 31 “Business segment information” for further discussionof the Group’s segment information.
The accompanying consolidated financial statements have been prepared in accordance with the accounting
principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial
statements are stated in Japanese yen, the currency of the country in which MHFG is incorporated and principally
operates.
The accompanying consolidated financial statements include the accounts of MHFG and its subsidiaries.
MHFG’s fiscal year ends on March 31 and fiscal year of certain subsidiaries ends on December 31. The
necessary adjustments have been made to the consolidated financial statements if significant intercompany
transactions took place during the three-months periods. When determining whether to consolidate investee
entities, we performed a careful analysis of the facts and circumstances of a particular relationship among entities
as well as ownership of voting shares. The consolidated financial statements also include the accounts of the
VIEs for which MHFG or its subsidiaries have been determined to be the primary beneficiary under the Financial
Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation”(“ASC 810”). All significant intercompany transactions and balances have been eliminated in consolidation. The
MHFG Group accounts for investments in entities over which it has significant influence using the equity methodof accounting. These investments are included in Other investments and the Group’s proportionate share ofincome or loss is included in Investment gains (losses)—net.
Use of estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management tomake estimates and assumptions that affect reported amounts and related disclosures. Specific areas, among
others, requiring the application of management’s estimates and judgment include assumptions pertaining to theallowance for loan losses, allowance for losses on off-balance-sheet instruments, deferred tax assets, derivative
financial instruments, investments and pension and other employee benefits. Actual results could differ fromestimates and assumptions made.
Definition of cash and due from banks
For purposes of the consolidated statements of cash flows, Cash and due from banks include cash on hand, cash
items in the process of collection and noninterest-bearing deposits with banks.
F-11

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Translation of foreign currency financial statements and foreign currency transactions
Financial statements of overseas entities are prepared using the functional currency of each entity and translated
into Japanese yen for consolidation purposes. Assets and liabilities are translated using the fiscal-year-end
exchange rate of each functional currency, and income and expense using the average rate of each functional
currency for the period.
Foreign currency translation gains and losses related to the financial statements of overseas entities of the MHFG
Group, net of related income tax effects, are credited or charged directly to Foreign currency translation
adjustments, a component of Accumulated other comprehensive income (loss), net of tax (“AOCI”). The tax
effects of gains and losses related to the foreign currency translation of financial statements of overseas entities
are not recognized unless it is apparent that the temporary differences will reverse in the foreseeable future.
Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the fiscal-year-end
foreign exchange rates, and gains and losses resulting from such translation are included in Foreign exchange
gains (losses)—net, as appropriate. Foreign currency denominated income and expenses are translated using the
average exchange rates for the period.
Call loans and call money
Call loans and call money represent lending/borrowing through the Japanese short-term money market to/fromother financial institutions such as banks, insurance companies, and securities brokerage houses.
Repurchase and resale agreements, securities lending and borrowing and other secured financing transactions
Securities sold under agreements to repurchase (“repurchase agreements”), securities purchased underagreements to resell (“resale agreements”) and securities lending and borrowing transactions are accounted for as
secured financing or lending transactions when control over the underlying securities is not deemed to be
surrendered by the transferor. Otherwise, they are recorded as sales of securities with related forward repurchasecommitments or purchases of securities with related forward resale commitments in accordance with ASC 860,
“Transfers and Servicing” (“ASC 860”).
Repurchase transactions where the maturity of the security transferred as collateral matches the maturity of the
repurchase agreements (“repo-to-maturity transactions”) are accounted for as sales rather than collateralized
financings where the criteria for derecognition of the securities transferred under ASC 860 are met. There wereno such transactions accounted for as sales as of March 31, 2013 and 2014.
Under resale agreements, securities borrowing and certain derivatives transactions, the MHFG Group receives
collateral in the form of securities. In many cases, the MHFG Group is permitted to sell or repledge the securities
obtained as collateral. Disclosures of such collateral are presented in Note 8 “Pledged assets and collateral”. With
respect to repurchase agreements, securities lending, and certain derivative transactions, counterparties may havethe right to sell or repledge securities that the MHFG Group has pledged as collateral. The MHFG Groupseparately discloses these pledged securities in the consolidated balance sheets.
The MHFG Group monitors credit exposure arising from resale agreements, repurchase agreements, securities
borrowing and securities lending transactions on a daily basis, and additional collateral is obtained from orreturned to counterparties, as appropriate.

F-12

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Trading securities and trading securities sold, not yet purchased
Trading securities consist of securities and money market instruments that are bought and held principally for the
purpose of reselling in the near term with the objective of generating profits on short-term fluctuations in price.
Trading securities sold, not yet purchased, are securities and money market instruments sold to third parties that
the MHFG Group does not own and is obligated to purchase at a later date to cover the short position. Trading
securities and trading securities sold, not yet purchased, are recorded on the trade date. Trading securities andtrading securities sold, not yet purchased, are recorded at fair value in the consolidated balance sheets in Trading
account assets and Trading account liabilities with realized and unrealized gains and losses recorded on a tradedate basis in Trading account gains (losses)—net in the consolidated statements of income. Interest and dividends
on trading securities, including securities sold, not yet purchased, are recorded in Interest and dividend income orInterest expense on an accrual basis.
Investments
Debt securities that the MHFG Group has both the positive intent and ability to hold to maturity are classified as
Held-to-maturity securities and carried at amortized cost. Debt securities that the MHFG Group may not hold tomaturity and any marketable equity securities, other than those classified as trading securities, are classified as
Available-for-sale securities, and are carried at fair value, with unrealized gains and losses reported in AOCI.
The credit component of an other-than-temporary impairment of a debt security is reported in Investment gains(losses)—net and the noncredit component is reported in Other comprehensive income (loss). See Note 3“Investments” for further discussion of impairment. Interest and dividends, as well as amortization of premiums
and accretion of discounts, are reported in Interest and dividend income. Amortization of premiums and accretionof discounts on debt securities are recognized over the remaining maturity under the interest method. Gains andlosses on disposition of investments are computed using the first-in first-out method for debt securities and theaverage method for equity securities, and are recorded on the trade date.
Other investments include marketable and non-marketable equity securities accounted for using the equity
method, marketable and non-marketable investments held by consolidated investment companies carried at fairvalue under specialized industry accounting principles for investment companies, and other non-marketable
equity securities carried at cost, less other-than-temporary impairment, if any.
Derivative financial instruments
Derivative financial instruments are bought and held principally for the purpose of market making for customers,
proprietary trading in order to generate trading revenues and fee income, and also to manage the MHFG Group’s
exposure to interest rate, credit and market risks related to asset and liability management. Such derivative
financial instruments include interest rate, foreign currency, equity, commodity and credit default swap
agreements, options, caps and floors, and financial futures and forward contracts.
Derivatives bought and held for trading purposes are recorded in the consolidated balance sheets at fair value inTrading account assets and Trading account liabilities. The fair value of derivatives in a gain position and a loss
position are reported as Trading account assets and Trading account liabilities, respectively.
Derivatives used for asset and liability management include contracts that qualify for hedge accounting under
ASC 815, “Derivatives and Hedging” (“ASC 815”). To be eligible for hedge accounting, derivative instruments
must be highly effective in achieving offsetting changes in fair values or variable cash flows of the hedged items
attributable to the particular risk being hedged. All qualifying hedging derivatives are valued at fair value and
F-13

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
included in Trading account assets or Trading account liabilities. Derivatives that do not qualify for hedge
accounting under ASC 815 are treated as trading positions and are accounted for as such. The fair value amounts
recognized for such derivatives are not offset against the amounts recognized for the right to reclaim cash
collateral or the obligation to return cash collateral under master netting agreement with the same counterparty.
The fair value of derivative financial instruments is determined based on quoted market prices or broker-dealer
quotes, if available. If not, the fair value is estimated using quoted market prices for similar instruments, option
or binomial pricing models or a present value cash flow analysis, utilizing current observable market
information, where available. In determining the fair value, the Group considers various factors such as exchange
or over-the-counter market quotes, time value of money and volatility factors for options and warrants, observed
prices for similar or synthetic instruments, and counterparty credit quality including potential exposure.
Changes in the fair value of all derivatives are recorded in earnings, except for derivatives qualifying as net
investment hedges under ASC 815 which are recorded in AOCI. The changes in the fair values of all derivatives
relating to foreign currency exchange rates are included in Foreign exchange gains (losses)—net and Trading
account gains (losses)—net. Other elements of the changes in the fair values, including interest rate, equity andcredit related components except that of certain credit derivatives hedging the credit risk in the corporate loan
portfolio, are recognized in Trading account gains (losses)—net. The net gain (loss) resulting from changes in thefair values of certain credit derivatives where the Group purchases protection to mitigate its credit risk exposure
related to its corporate loan portfolio is recorded in Other noninterest income (expenses).
Certain financial and hybrid instruments often contain embedded derivative instruments that possess implicit or
explicit contract terms similar to those of a derivative instrument. Such derivative instruments are required to befair-valued separately from the host contracts if they meet the bifurcation criteria of an embedded derivative.
Such criteria include whether the entire instrument is not marked to market through earnings, the economic
characteristics and risks of the embedded contract terms are not clearly and closely related to those of the hostcontract and the embedded contract terms would meet the definition of a derivative on a stand-alone basis.
Loans
Loans are generally carried at the principal amount adjusted for unearned income and deferred net nonrefundable
loan fees and costs. Loan origination fees, net of certain direct origination costs are deferred and recognized overthe contractual life of the loan as an adjustment of yield using a method that approximates the interest method.
Interest income on performing loans is accrued and credited to income as it is earned. Unearned income anddiscounts or premiums on purchased loans are deferred and recognized over the life of the loan using a methodthat approximates the interest method.
Loans are considered impaired when, based on current information and events, it is probable that the MHFG
Group will be unable to collect all the scheduled payments of principal and interest when due according to thecontractual terms of the loan. Factors considered by management in determining if a loan is impaired include
delinquency status and the ability of the debtor to make payment of the principal and interest when due. Impairedloans include loans past due for 90 days or more and restructured loans that meet the definition of troubled debt
restructuring (“TDR”) in accordance with ASC 310 “Receivables” (“ASC 310”).
All of the MHFG Group’s impaired loans are designated as nonaccrual loans and thus interest accrual andamortization of net origination fees are suspended and capitalized interest is written off. Cash received on
nonaccrual loans is accounted for as reduction of the loan principal if the ultimate collectibility of the principal
amount is uncertain, otherwise, as interest income. Loans are not restored to accrual status until interest and
F-14

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
principal payments are current and future payments are reasonably assured. Impaired loans return to
non-impaired loans and accrual status, when the MHFG Group determines that the borrower poses no problems
regarding current certainty of debt fulfillment. In general, such determination is made if the borrower qualifies
for an obligor rating of E2 or above and is not classified as a special attention obligor. With respect to loans
restructured in TDR, in general, such loans return to non-impaired loans, and accrual status, when the borrower
qualifies for an obligor rating of D or above. See Note 4 “Loans” for the definitions of obligor ratings.
Loans that have been identified to be sold are classified as loans held for sale within Other assets and areaccounted for at the lower of cost or fair value on an individual loan basis. If management decides to retain
certain loans held for sale for the foreseeable future or until maturity or payoff, such items are transferred toLoans at the lower of cost or fair value.
Securitization
The MHFG Group engages in securitization activities related to mortgage loans and other loans in the normal
course of business. The MHFG Group records a loan securitization as a sale when the transferred loans arelegally isolated from the Group’s creditors and the accounting criteria for a sale are met in accordance with
ASC 860. Otherwise, the transfer is accounted for as a collateralized borrowing.
Allowance and provision (credit) for loan losses
The MHFG Group maintains an appropriate amount of allowance for loan losses to absorb probable losses
inherent in the loan portfolio and makes adjustments to such allowance through the Provision (credit) for loan
losses in the consolidated statements of income. Loan principal that management judges to be uncollectible,
based on detailed loan reviews and a credit quality assessment, is charged off against the allowance for loan
losses. In general, the MHFG Group charges off loans when the Group determines that the debtor should beclassified as substantially bankrupt or bankrupt. See Note 4 “Loans” for the definitions of obligor categories.
Obligors classified in the retail portfolio segment are generally determined to be substantially bankrupt when
they are past due for more than six months, and as for other obligors, the Group separately monitors the credit
quality of each obligor without using time-based triggers. Subsequent recoveries of previously charged-off loanbalances are recorded as an increase to the allowance for loan losses as the recoveries are received.
The credit quality review process and the credit rating process serve as the basis for determining the allowance
for loan losses. Through such processes loans are categorized into groups to reflect the probability of default,
whereby the MHFG Group’s management assesses the ability of borrowers to service their debt, taking into
consideration current financial information, ability to generate cash, historical payment experience, analysis of
relevant industry segments and current trends. In determining the appropriate level of the allowance, the MHFG
Group evaluates the probable loss by category of loan based on its risk type and characteristics.
The allowance for loan losses is determined in accordance with ASC 310 and ASC 450, “Contingencies”(“ASC 450”). The MHFG Group measures the impairment of a loan when it is probable that the Group will be
unable to collect all amounts due according to the contractual terms of the loan agreement, based on (1) the
present value of expected future cash flows, after considering the restructuring effect and subsequent payment
default with respect to TDRs, discounted at the loan’s initial effective interest rate, (2) the loan’s observable
market price, or (3) the fair value of the collateral if the loan is collateral dependent. The collateral that the Groupobtains for loans consists primarily of real estate or listed securities. In obtaining the collateral, the Groupevaluates the fair value of the collateral and its legal enforceability. The Group also conducts subsequent reevaluations at least once a year. As it pertains to real estate, valuation is generally conducted by an appraisingsubsidiary which is independent from the Group’s loan origination sections by using generally accepted valuation
F-15

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
techniques such as (1) the replacement cost approach, (2) the sales comparison approach or (3) the income
approach. In the case of large real estate collateral, the Group generally retains third-party appraisers to conduct
the valuation. As to listed securities, observable market prices are used for valuation.
The formula allowance is applied to groups of small balance, homogeneous loans that are collectively evaluatedfor impairment and for non-homogeneous loans that have not been identified as impaired. The evaluation of
inherent loss in respect of these loans involves a high degree of uncertainty, subjectivity and judgment because
probable loan losses are not easily identifiable or measurable. In determining the formula allowance, the MHFG
Group relies on a statistical analysis that incorporates loss rates based on its own historical loss experience andthird party data such as the number of corporate default cases which is updated once a year. In determining theallowance amount, the Group analyzes (1) the probability of default: (a) through the most recently available data
for the past six years, in the case of normal obligors; and (b) through the most recently available data sinceApril 2002, in the case of watch obligors; and (2) the loss given default through the most recently available data
for the past six years. As it pertains to TDR loans in the retail portfolio segment, which are subject to collective
evaluation for impairment, the restructuring itself, as well as subsequent payment default, if any, are considered
in determining obligor ratings.
The historical loss rate is adjusted, where appropriate, to reflect current factors, such as general economic andbusiness conditions affecting the key lending areas of the MHFG Group, credit quality trends, specific industry
conditions within portfolio segments, and recent loss experience in particular segments of the portfolio. The
estimation of the formula allowance is back-tested on a periodic basis by comparing the allowance with theactual results subsequent to the balance sheet date.
Allowance and provision (credit) for losses on off-balance-sheet instruments
The MHFG Group maintains an allowance for losses on off-balance-sheet credit instruments, such as guarantees,
standby letters of credit, commitments to invest in securities and commitments to extend credit, in the samemanner as the allowance for loan losses. The allowance is recorded in Other liabilities. Net changes in theallowance for losses on off-balance-sheet instruments are accounted for in the Provision (credit) for losses on
off-balance-sheet instruments in the consolidated statements of income.
Premises and equipment
Premises and equipment are stated at historical cost, and depreciation and amortization are recorded over theestimated useful lives of the assets, except for leasehold improvements, which are amortized over the shorter ofthe estimated useful lives of the assets or the lease term. Depreciation and amortization are principally computedin accordance with the straight-line method with respect to buildings and leasehold improvements and inaccordance with the declining-balance method with respect to other premises and equipment.
The useful lives of premises and equipment are as follows:
Years

Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment and furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 to 50
2 to 20
2 to 50

Regular repairs and maintenance costs that do not extend the estimated useful life of an asset are charged to
expense as incurred. Upon sale or disposition of premises and equipment, the cost and related accumulated
depreciation or amortization are removed from the accounts, and any gains or losses on disposal are included in
Gains on disposal of premises and equipment or Occupancy expenses.
F-16

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Impairment of long-lived assets
The MHFG Group’s long-lived assets that are held for use are reviewed periodically for events or changes incircumstances that indicate possible impairment. The Group’s impairment review is based on an undiscounted
cash flow analysis of a group of assets, combined with associated liabilities, at the lowest level for which
identifiable cash flows exist. Impairment occurs when the carrying value of the asset group exceeds the future
undiscounted cash flows that the asset group is expected to generate. When impairment is identified, the future
cash flows are then discounted to determine the estimated fair value of the asset group and an impairment charge
is recorded for the difference between the carrying value and the estimated fair value of the asset group. The
long-lived assets to be disposed of by sale are carried at the lower of the carrying amount or fair value, lessestimated cost to sell.
Software
Internal and external costs incurred in connection with developing and obtaining software for internal use that
occur during the application development stage are capitalized. Such costs include salaries and benefits for
employees directly involved with and who devote time to the project, to the extent such time is incurred directlyon the internal use software project. The capitalization of software ceases when the software project has been
substantially completed. The capitalized software is amortized on a straight-line basis over the estimated usefullife, generally 5 to 10 years. Internal use software is reviewed for impairment when triggering events occur.
Goodwill
Goodwill represents the excess of the total fair value of the acquired company, which consists of theconsideration transferred, the fair value of any interest in the acquiree already held by the acquirer and the fairvalue of any noncontrolling interest in the acquiree over the fair value of net identifiable assets acquired at thedate of acquisition in a business combination. The MHFG Group accounts for goodwill in accordance withASC 350, “Intangibles—Goodwill and Other” (“ASC 350”). Goodwill is recorded at a designated reporting unit
level for the purpose of assessing impairment. An impairment loss is recorded to the extent the carrying amountof goodwill exceeds its estimated fair value.
Intangible assets
Intangible assets having definite useful lives are amortized over their estimated useful lives on either a straightline basis or the method that reflects the pattern in which the economic benefits of the intangible assets are
consumed. Intangible assets acquired by the merger of MHSC and Shinko Securities Co., Ltd. (“Shinko”) consist
primarily of customer relationship intangibles, and are amortized over a weighted-average amortization period of
16 years. Intangible assets having indefinite useful lives are not amortized and are subject to impairment tests.
An impairment loss is recorded to the extent the carrying amount of indefinite-lived intangible asset exceeds its
estimated fair value. For intangible assets subject to amortization, an impairment loss is recorded if the carrying
amount is not recoverable and exceeds its estimated fair value.
Pension and other employee benefits
MHFG and certain subsidiaries sponsor severance indemnities and pension plans, which provide defined benefits
to retired employees. Periodic expense and accrued liabilities are computed based on the actuarial present valueof benefits, net of investment returns expected from plan assets and their fair values at the balance sheet date. Net
periodic expense is charged to Salaries and employee benefits.

F-17

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Stock-based compensation
The compensation cost associated with stock compensation-type stock options is measured at fair value using theBlack-Scholes option pricing model.
Long-term debt
Premiums, discounts and issuance costs of long-term debt are amortized based on a method that approximates theinterest method over the respective terms of the long-term debt.
Obligations under guarantees
The MHFG Group provides customers with a variety of guarantees and similar arrangements, including standby
letters of credit, financial and performance guarantees, credit protections, and liquidity facilities. The MHFG
Group recognizes guarantee fee income over the guarantee period. The MHFG Group receives such a guarantee
fee at the inception of the guarantee or in installments and, in either case, the present value of the total fees
approximates the fair value of the guarantee.
Fair Value Measurements
The MHFG Group carries certain of its financial assets and liabilities at fair value on a recurring basis. These
financial assets and liabilities are primarily composed of trading account assets, trading account liabilities andavailable-for-sale securities. In addition, the Group measures certain financial assets and liabilities, at fair value
on a non-recurring basis. Those assets and liabilities primarily include items that are measured at the lower ofcost or fair value such as loans held for sale, and items that were initially measured at cost and have been written
down to fair value due to impairments, such as loans and other investments.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. In accordance with ASC 820, “Fair Value
Measurement” (“ASC 820”), the Group classifies its financial assets and liabilities into the fair value hierarchy(Level 1, 2, and 3). See Note 28 “Fair value” for the detailed definition of each level.
When determining fair value, the MHFG Group considers the principal or most advantageous market in which
the Group would transact and considers assumptions that market participants would use when pricing the asset or
liability. The Group maximizes the use of observable inputs and minimizes the use of unobservable inputs whenmeasuring fair value. See Note 28 “Fair value” for descriptions of valuation methodologies used for its assets andliabilities by product.
Fees and commissions
Fee revenue is recognized when all of the following criteria have been met: persuasive evidence of an agreement
exists, services have been rendered, the price is fixed or determinable, and collectibility is reasonably assured.
Fees on securities-related business and fees on funds transfer and collection services are generally recognized asrevenue when the related services are performed. Fees on credit-related business, excluding loan origination feesto be deferred and recognized over the loan period as an adjustment of yield, are generally recognized either at
one time when the service is rendered or over the related transaction period. Fees and commissions are presented
on a gross basis and exclusive of consumption taxes.

F-18

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Income taxes
Income taxes are accounted for in accordance with ASC 740, “Income Taxes” (“ASC 740”). Deferred income
taxes reflect the net tax effects of (1) temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the corresponding amounts used for income tax purposes, and (2) operating
loss and tax credit carryforwards. A valuation allowance is recorded for any portion of the deferred tax assets
unless it is more likely than not that the deferred tax assets will be realized. Deferred income tax benefit or
expense is recognized for the changes in the net deferred tax asset or liability between periods.
Earnings per common share
Basic earnings per common share are computed by dividing net income attributable to MHFG commonshareholders by the weighted average number of common shares outstanding during the fiscal year. Diluted
earnings per common share reflect the possible exercise of all convertible securities, such as convertible
preferred stock to the extent they are not anti-dilutive. See Note 18 “Earnings per common share” for thecomputation of basic and diluted earnings per common share.
2. Recently issued accounting pronouncements
Recently adopted accounting pronouncements
On July 1, 2009, the ASC was officially launched. The ASC, which reorganized the thousands of U.S. GAAP
pronouncements into roughly 90 accounting topics, is the single source of authoritative U.S. GAAP for
nongovernmental entities.
In January 2010, the FASB issued Accounting Standards Update (“ASU”) No.2010-06, “Fair Value
Measurements and Disclosures (Topic 820)—Improving Disclosures about Fair Value Measurements”(“ASU No.2010-06”). The ASU provides amendments to ASC 820 that require new disclosures regarding(1) transfers in and out of Levels 1 and 2 and (2) more detailed activity in Level 3. The ASU also provides
amendments to ASC 820 that clarify existing disclosures regarding (1) level of disaggregation and (2) inputs andvaluation techniques. The ASU is effective for interim and annual reporting periods beginning after
December 15, 2009, except for the new disclosures related to the activity in Level 3, which do not become
effective until fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years.
ASU No.2010-06 is an accounting principle which expands disclosure requirements, and had no impact on the
MHFG Group’s consolidated results of operations or financial condition.
In July 2010, the FASB issued ASU No.2010-20, “Receivables (Topic 310)—Disclosures about the Credit
Quality of Financing Receivables and the Allowance for Credit Losses” (“ASU No.2010-20”). The ASU requires
disclosures that facilitate financial statement users’ evaluation of (1) the nature of credit risk inherent in theentity’s portfolio of financing receivables, (2) how that risk is analyzed and assessed in arriving at the allowancefor credit losses and (3) the changes and reasons for those changes in the allowance for credit losses. The new
disclosures required include (1) aging of past due receivables, (2) credit quality indicators, and (3) modificationsof financing receivables. It is also required that certain existing disclosures should be provided on adisaggregated basis. The disclosures as of the end of a reporting period are effective for interim and annual
reporting periods ending on or after December 15, 2010, whereas the disclosures about activity that occurs during
a reporting period are effective for interim and annual reporting periods beginning on or after December 15,
2010. In January 2011, the FASB issued ASU No.2011-01, “Receivables (Topic310)—Deferral of the Effective
Date of Disclosures about Troubled Debt Restructurings in Update No.2010-20” (“ASU No.2011-01”) to delay
the effective date of the disclosures about troubled debt restructurings for public entities, and in April 2011, it
F-19

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
was provided that such disclosure requirements would be effective for interim and annual periods beginning on
or after June 15, 2011 in ASU No.2011-02, “Receivables (Topic310)—A Creditor’s Determination of Whether a
Restructuring Is a Troubled Debt Restructuring” (“ASU No.2011-02”). ASU No.2011-02 also clarifies theguidance on a creditor’s evaluation for troubled debt restructurings of whether it has granted a concession andwhether a debtor is experiencing financial difficulties. ASU No.2010-20 is an accounting principle which
expands disclosure requirements, and had no impact on the MHFG Group’s consolidated results of operations or
financial condition.
In December 2010, the FASB issued ASU No.2010-28, “Intangibles—Goodwill and Other (Topic 350)—Whento Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying
Amounts” (“ASU No.2010-28”). The ASU requires that Step 2 of the impairment test should be performed incircumstances where the carrying amount of a reporting unit is zero or negative and there are qualitative factorsthat indicate it is more likely than not that a goodwill impairment exists. The ASU is effective for fiscal years,
and interim periods within those years, beginning after December 15, 2010. The adoption of ASU No.2010-28
did not have a material impact on the MHFG Group’s consolidated results of operations or financial condition.
In December 2010, the FASB issued ASU No.2010-29, “Business Combinations (Topic 805)—Disclosure of
Supplementary Pro Forma Information for Business Combinations” (“ASU No.2010-29”). The ASU clarifies
that, if a reporting entity presents comparative financial statements, the pro forma revenue and earnings of the
combined entity should be reported as though the business combinations that occurred during the current year
had occurred as of the beginning of the comparable prior annual reporting period only. The ASU is effective
prospectively for business combinations for which the acquisition date is on or after the beginning of the firstannual reporting period beginning on or after December 15, 2010. ASU No.2010-29 is an accounting principle
which clarifies disclosure requirements, and had no impact on the MHFG Group’s consolidated results ofoperations or financial condition.
In April 2011, the FASB issued ASU No.2011-03, “Transfers and Servicing (Topic 860)—Reconsideration of
Effective Control for Repurchase Agreements” (“ASU No.2011-03”). The ASU amends the conditions todetermine whether a transferor in repurchase agreements (repos) and other similar agreements maintains
effective control over the financial assets transferred by removing from the assessment of effective control (1) the
criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantiallythe agreed terms, even in the event of default by the transferee, and (2) the collateral maintenanceimplementation guidance related to that criterion. The ASU is effective for the first interim or annual period
beginning on or after December 15, 2011, and should be applied prospectively to transactions or modifications ofexisting transactions that occur on or after the effective date. The adoption of ASU No.2011-03 did not have amaterial impact on the MHFG Group’s consolidated results of operations or financial condition.
In May 2011, the FASB issued ASU No. 2011-04, “Fair Value Measurement (Topic 820)—Amendments toAchieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”(“ASU No.2011-04”) in order to improve comparability of fair value measurements presented and disclosed infinancial statements prepared in accordance with U.S. GAAP and International Financial Reporting Standards(“IFRS”). The amendments in ASU No. 2011-04 change the wording to describe the requirements in U.S. GAAP
for measuring fair value and for disclosing information about fair value measurements to align with IFRS. The
amendments also clarify the existing fair value measurement and disclosure requirements, which include(1) application of the highest and best use and valuation premise concepts, (2) measuring the fair value of an
instrument classified in a reporting entity’s shareholders’ equity and (3) disclosing quantitative information about
the unobservable inputs used for Level 3 items. The amendments also change a particular principle or
requirement for measuring fair value or for disclosing information about fair value measurements, which include
F-20

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(1) measuring the fair value of financial instruments that are managed within a portfolio, (2) application ofpremiums and discounts in a fair value measurement and (3) additional disclosures about fair value
measurements. The ASU is effective for interim and annual periods beginning after December 15, 2011. The
adoption of ASU No.2011-04 did not have a material impact on the MHFG Group’s consolidated results ofoperations or financial condition.
In June 2011, the FASB issued ASU No.2011-05, “Comprehensive Income (Topic 220)—Presentation ofComprehensive Income” (“ASU No.2011-05”). The ASU eliminates the option to present components of othercomprehensive income as part of the statement of changes in stockholders’ equity, and requires that all nonownerchanges in stockholders’ equity be presented either in a single continuous statement of comprehensive income orin two separate but consecutive statements. The ASU also requires reclassification adjustments from othercomprehensive income to net income be presented on the face of financial statements. The ASU is effective forfiscal years, and interim periods within those years, beginning after December 15, 2011, and should be applied
retrospectively. In December 2011, the FASB issued ASU No.2011-12, “Comprehensive Income (Topic220)—Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of
Accumulated Other Comprehensive Income in Accounting Standards Update No.2011-05” (“ASU No.2011-12”)
to indefinitely defer only those changes in ASU No.2011-05 that relate to the presentation of reclassification
adjustments. All other requirements in ASU No.2011-05 are not affected, and entities should continue to reportreclassifications out of accumulated other comprehensive income consistent with the presentation requirementsin effect before ASU No.2011-05. ASU No.2011-05 is an accounting principle which alters disclosure
requirements, and had no impact on the MHFG Group’s consolidated results of operations or financial condition.
In September 2011, the FASB issued ASU No.2011-08, “Intangibles—Goodwill and Other (Topic 350)—Testing
Goodwill for Impairment” (“ASU No.2011-08”). The ASU permits an entity the option to first assess qualitative
factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its
carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment
test. Under this ASU, an entity is not required to calculate the fair value of a reporting unit unless the entity
determines that it is more likely than not that its fair value is less than its carrying amount. The ASU is effective
for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.
The adoption of ASU No.2011-08 did not have a material impact on the MHFG Group’s consolidated results ofoperations or financial condition.
In December 2011, the FASB issued ASU No.2011-10, “Property, Plant, and Equipment (Topic360)—Derecognition of in Substance Real Estate—a Scope Clarification” (“ASU No.2011-10”). The ASU
clarifies that, even when a reporting entity ceases to have a controlling financial interest in a subsidiary that is in
substance real estate as a result of default on the subsidiary’s nonrecourse debt, the reporting entity would
continue to include the real estate, debt, and the results of the subsidiary’s operations in its consolidated financial
statements until legal title to the real estate is transferred to legally satisfy the debt. The ASU is effective forfiscal years and interim periods within those years, beginning on or after June 15, 2012. The adoption of ASU
No.2011-10 did not have a material impact on the MHFG Group’s consolidated results of operations or financial
condition.
In December 2011, the FASB issued ASU No.2011-11, “Balance Sheet (Topic 210)—Disclosures about
Offsetting Assets and Liabilities” (“ASU No.2011-11”). The ASU enhances disclosures by requiring improved
information about financial instruments and derivative instruments that are either (1) offset on the statement offinancial position or (2) subject to an enforceable master netting arrangement or similar agreement, irrespectiveof whether they are offset on the statement of financial position. Under the ASU, entities are required to provide
both net and gross information for these financial instruments and derivative instruments in order to enhance
F-21

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
comparability between those entities that prepare their financial statements on the basis of U.S. GAAP and thoseentities that prepare their financial statements on the basis of IFRS. The ASU is effective for annual reporting
periods beginning on or after January 1, 2013 and interim periods within those annual periods. An entity should
provide the disclosures required retrospectively for all comparative periods presented. In January 2013, the
FASB issued ASU No.2013-01, “Balance Sheet (Topic 210)—Clarifying the Scope of Disclosures about
Offsetting Assets and Liabilities” (“ASU No.2013-01”). ASU No.2013-01 clarifies that the scope of ASU
No.2011-11 applies to derivatives including bifurcated embedded derivatives, repurchase agreements and reverse
repurchase agreements, and securities borrowing and securities lending transactions. ASU No.2011-11 is anaccounting principle which expands disclosure requirements, and had no impact on the MHFG Group’s
consolidated results of operations or financial condition.
In July 2012, the FASB issued ASU No.2012-02, “Intangibles—Goodwill and Other (Topic 350)—TestingIndefinite-Lived Intangible Assets for Impairment” (“ASU No.2012-02”). The ASU permits an entity first toassess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset isimpaired as a basis for determining whether it is necessary to perform the quantitative impairment test. Under
this ASU, an entity has an option not to calculate annually the fair value of an indefinite-lived intangible asset if
the entity determines that it is not more likely than not that its fair value is less than its carrying amount. The
ASU is effective for annual and interim impairment tests performed for fiscal years beginning after
September 15, 2012. The adoption of ASU No.2012-02 did not have a material impact on the MHFG Group’s
consolidated results of operations or financial condition.
In February 2013, the FASB issued ASU No.2013-02, “Comprehensive Income (Topic 220)—Reporting ofAmounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU No.2013-02”). The ASU
requires an entity to present, either on the face of the statement where net income is presented or in the notes,
significant amounts reclassified out of accumulated other comprehensive income by the respective line items of
net income. The ASU also requires an entity to provide information about the amounts reclassified out ofaccumulated other comprehensive income by component. The ASU is effective for reporting periods beginning
after December 15, 2012. ASU No.2013-02 is an accounting principle which expands disclosure requirements,and had no impact on the MHFG Group’s consolidated results of operations or financial condition.
Accounting pronouncements issued but not yet effective
In June 2013, the FASB issued ASU No.2013-08, “Financial Services—Investment Companies (Topic 946)—
Amendments to the Scope, Measurement, and Disclosure Requirements” (“ASU No.2013-08”). The ASU
changes the approach to the investment company assessment and requires an investment company to measurenoncontrolling ownership interests in other investment companies at fair value. The ASU also requires additional
disclosures of (a) the fact that the entity is an investment company and is applying the guidance in ASC 946,
“Financial Services—Investment Companies”, (b) information about changes, if any, in an entity’s status as aninvestment company, and (c) information about financial support provided or contractually required to beprovided by an investment company to any of its investees. The ASU is effective for an entity’s interim andannual reporting periods in fiscal years that begin after December 15, 2013. Early adoption is prohibited. The
MHFG Group does not expect that the adoption of ASU No.2013-08 will have a material impact on its
consolidated results of operations and financial condition.
In May 2014, the FASB issued ASU No.2014-09, “Revenue from Contracts with Customers (Topic 606)”(“ASU No.2014-09”). The ASU provides a comprehensive guidance of revenue recognition, in convergence with
IFRS, to improve financial reporting in U.S. GAAP by replacing the current complex guidance for recognizing
revenue. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of
F-22

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
promised goods or services to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply thefollowing five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in thecontract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in
the contract, and (5) recognize revenue when ( or as) the entity satisfies a performance obligation. In order toenable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue andcash flows arising from contracts with customers, an entity should disclose the following quantitative andqualitative information: (1) contracts with customers—including revenue and impairments recognized,
disaggregation of revenue, and information about contract balances and performance obligations, (2) significant
judgments and changes in judgments—determining the timing of satisfaction of performance obligations, anddetermining the transaction price and amounts allocated to performance obligations, and (3) assets recognizedfrom the costs to obtain or fulfill a contract. The ASU is effective for annual reporting periods beginning after
December 15, 2016, including interim periods within that reporting period. Early application is not permitted.
The MHFG Group is currently evaluating the potential impact that the adoption of ASU No.2014-09 will have on
its consolidated results of operations and financial condition.
In June 2014, the FASB issued ASU No.2014-11, “Transfers and Servicing (Topic 860)—Repurchase-toMaturity Transactions, Repurchase Financings, and Disclosures” (“ASU No.2014-11”). The ASU changes theaccounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing
arrangements, the ASU requires separate accounting for a transfer of a financial asset executed
contemporaneously with a repurchase agreement with the same counterparty, which will result in secured
borrowing accounting for the repurchase agreement. The ASU requires disclosures for certain transactions
comprising (1) a transfer of a financial asset accounted for as a sale and (2) an agreement with the sametransferee entered into in contemplation of the initial transfer that results in the transferor retaining substantiallyall of the exposure to the economic return on the transferred financial asset throughout the term of thetransaction. The ASU also requires an entity to disclose certain information, including risks related to collateralpledged, for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions thatare accounted for as secured borrowings. The ASU is effective for the first interim or annual period beginning
after December 15, 2014, except for interim disclosure requirements related to secured borrowings, which are
effective for interim periods beginning after March 15, 2015. Earlier application is prohibited. The MHFG Group
does not expect that the adoption of ASU No.2014-11 will have a material impact on its consolidated results ofoperations and financial condition.

F-23

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
3. Investments
The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity
securities at March 31, 2013 and 2014 are as follows:
Amortized cost

Gross unrealized Gross unrealized
gains
losses(in millions of yen)

Fair value

2013
Available-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . .
Japanese local government bonds . . . . . . . . . . . . . . . . . .
U.S. Treasury bonds and federal agency securities . . . . .
Other foreign government bonds . . . . . . . . . . . . . . . . . . .
Agency mortgage-backed securities (1) . . . . . . . . . . . . . .
Residential mortgage-backed securities . . . . . . . . . . . . .
Commercial mortgage-backed securities . . . . . . . . . . . .
Japanese corporate bonds and other debt securities (2) . .
Foreign corporate bonds and other debt securities (3) . . .
Equity securities (marketable) . . . . . . . . . . . . . . . . . . . . . . . . .

30,709,499
239,695
177,438
596,305
986,646
430,325
246,169
2,197,270
542,958
1,699,475

79,378
4,109
623
1,914
20,496
13,8897,487
22,582
17,7681,440,102

5,677
47
36
94
1,429
2,131
3,528
5,288
1,803
144

30,783,200
243,757
178,025
598,125
1,005,713
442,083
250,1282,214,564
558,923
3,139,433

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

37,825,780

1,608,348

20,17739,413,951

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . .

3,000,403

20,02382

3,020,344

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,000,403

20,02382

3,020,344

F-24

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Amortized cost

Gross unrealized Gross unrealized
gains
losses(in millions of yen)

Fair value

2014
Available-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . .
Japanese local government bonds . . . . . . . . . . . . . . . . . .
U.S. Treasury bonds and federal agency securities . . . . .
Other foreign government bonds . . . . . . . . . . . . . . . . . . .
Agency mortgage-backed securities (1) . . . . . . . . . . . . . .
Residential mortgage-backed securities . . . . . . . . . . . . .
Commercial mortgage-backed securities . . . . . . . . . . . .
Japanese corporate bonds and other debt securities (2) . .
Foreign corporate bonds and other debt securities (3) . . .
Equity securities (marketable) . . . . . . . . . . . . . . . . . . . . . . . . .

22,039,640
241,985
158,344719,281955,291
318,955
159,289
2,015,045
559,947
1,667,669

20,063
2,783
434
2,356
13,28814,757
3,032
16,316
10,755
1,761,025

3,727
106
4,297
455
7,705
1,707
1,417
3,284
2,193
6,603

22,055,976
244,662
154,481
721,182
960,874
332,005
160,904
2,028,077
568,5093,422,091

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,835,446

1,844,809

31,49430,648,761

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . .

4,040,083

17,954220

4,057,817

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,040,083

17,954220

4,057,817

Notes :
(1) Agency mortgage-backed securities presented in the above table consist of U.S. agency securities and Japanese agency securities, ofwhich the fair values were ¥143,954 million and ¥861,759 million, respectively, at March 31, 2013, and ¥105,553 million and¥855,321 million, respectively, at March 31, 2014. U.S. agency securities primarily consist of Government National Mortgage
Association or Ginnie Mae securities, which are guaranteed by the United States government. All Japanese agency securities aremortgage-backed securities issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise.
(2) Other debt securities presented in the above table primarily consist of certificates of deposit (“CDs”) and asset-backed securities(“ABS”), of which the total fair values were ¥185,497 million at March 31,2013, and ¥214,488 million at March 31, 2014.
(3) Other debt securities presented in the above table primarily consist of CDs, ABS, and collateral loan obligations (“CLO”), of which thetotal fair values were ¥243,633 million at March 31,2013, and ¥178,055 million at March 31, 2014.

F-25

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The amortized cost and fair value of available-for-sale and held-to-maturity debt securities at March 31, 2014 bycontractual maturity are shown in the table below. Expected maturities may differ from contractual maturities
because borrowers may have the right to call or prepay obligations with or without penalties. Securities not due
at a single maturity date and securities embedded with call or prepayment options, such as mortgage-backed
securities, are included in the table below based on their contractual maturities.
Due after one Due after fiveDue in one year through years through Due after
year or less five years
ten yearsten years(in millions of yen)Amortized cost

Total

Available-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,926,354
Japanese local government bonds . . . . . . . . . . . . . . . . . . . . . . .
30,346
U.S. Treasury bonds and federal agency securities . . . . . . . . . .
43,475
Other foreign government bonds . . . . . . . . . . . . . . . . . . . . . . . .
507,140
Agency mortgage-backed securities . . . . . . . . . . . . . . . . . . . . .
—Residential mortgage-backed securities . . . . . . . . . . . . . . . . . .
—Commercial mortgage-backed securities . . . . . . . . . . . . . . . . . .
4,085
Japanese corporate bonds and other debt securities . . . . . . . . .
369,682
Foreign corporate bonds and other debt securities . . . . . . . . . .
221,916

13,876,023
130,751
75,005211,949——
123,455
1,131,664
251,536

2,237,263
80,10839,864———
31,749326,861
83,865— 22,039,640
780
241,985—
158,344192
719,281955,291955,291
318,955
318,955—
159,289
186,838 2,015,045
2,630
559,947

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,102,998

15,800,383

2,799,710

1,464,686 27,167,777

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . .

600,047

3,080,346

359,690—

4,040,083

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

600,047

3,080,346

359,690—

4,040,083

Due after one Due after fiveDue in one year through years through Due after
year or less five years
ten yearsten years(in millions of yen)

Fair value

Total

Available-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,926,642
Japanese local government bonds . . . . . . . . . . . . . . . . . . . . . . . .
30,384
U.S. Treasury bonds and federal agency securities . . . . . . . . . .
43,907
Other foreign government bonds . . . . . . . . . . . . . . . . . . . . . . . .
507,577
Agency mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . .
—Residential mortgage-backed securities . . . . . . . . . . . . . . . . . . .
—Commercial mortgage-backed securities . . . . . . . . . . . . . . . . . .
4,087
Japanese corporate bonds and other debt securities . . . . . . . . . .
370,157
Foreign corporate bonds and other debt securities . . . . . . . . . . .
222,527

13,882,371
131,438
72,142
213,355——
124,981
1,137,145
253,1422,246,963
81,95238,432———
31,836
329,033
89,625— 22,055,976
888
244,662—
154,481250
721,182
960,874
960,874
332,005
332,005—
160,904
191,742 2,028,077
3,215
568,509

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,105,281

15,814,574

2,817,841

1,488,974 27,226,670

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . .

601,750

3,091,769

364,298—

4,057,817

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

601,750

3,091,769

364,298—

4,057,817

F-26

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In accordance with ASC 320, “Investments—Debt and Equity Securities” (“ASC 320”), for debt securities, if anentity has the intent to sell a debt security or more likely than not will be required to sell a debt security before
recovery of its amortized cost basis, the full amount of an other-than-temporary impairment loss shall berecognized immediately through earnings. Other than either case described above, an entity must evaluate
expected cash flows to be received and determine if a credit loss exists, and if so, the amount of an other-thantemporary impairment related to the credit loss shall be recognized in earnings, while the remaining decline infair value shall be recognized in other comprehensive income, net of applicable taxes. For equity securities, if anequity security is deemed other-than-temporarily impaired, it shall be written down to fair value, with the fulldecline recognized in earnings.
The MHFG Group performs periodic reviews to identify impaired securities. Impairment is evaluatedconsidering the length of time and extent to which the fair value has been below cost, the financial condition andnear-term prospects of the issuer, as well as the MHFG Group’s ability and intent to hold the investments for areasonable period of time until a forecasted recovery of fair value or maturity.
For the fiscal years ended March 31, 2012, 2013 and 2014, the MHFG Group recognized in earnings the otherthan-temporary impairment on available-for-sale securities of ¥117,029 million, ¥76,393 million and¥5,344 million, respectively, of which ¥7,238 million, ¥4,085 million and ¥1,151 million, respectively, were on
debt securities and ¥109,791 million, ¥72,308 million and ¥4,193 million, respectively, were on equity securities.
No impairment losses were recognized on held-to-maturity securities for the periods.
The other-than-temporary impairment losses for debt securities were mainly attributable to the decline in the fairvalue of commercial mortgage-backed securities (“CMBS”) that the MHFG Group had the intent to sell. In
accordance with ASC 320-10-35-33A and ASC 320-10-35-34B, the other-than-temporary impairment of thesesecurities was recognized in earnings. There has never been any instance related to credit losses recognized inearnings on debt securities where a portion of an other-than-temporary impairment was recognized in othercomprehensive income.
The other-than-temporary impairment losses for equity securities were mainly attributable to the decline in thefair value of Japanese equity securities. Certain equity securities were determined not to be other-thantemporarily impaired based on the evaluation of the following factors: (1) the severity and duration of theimpairments, (2) the financial condition and near-term prospects of the issuers, and (3) the MHFG Group’s
ability and intent to hold those investments for a reasonable period of time sufficient for a forecasted recovery offair value.

F-27

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables show the gross unrealized losses and fair value of available-for-sale and held-to-maturity
securities, aggregated by the length of time that individual securities have been in a continuous unrealized loss
position, at March 31, 2013 and 2014:
Less than 12 months 12 months or more
Gross
Gross
Fair
unrealized
Fair
unrealized
value
lossesvalue
losses(in millions of yen)

Total
Fair
value

Gross
unrealized
losses2013
Available-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . .
Japanese local government bonds . . . . . . . . . . . . . . . . . . . .
U.S. Treasury bonds and federal agency securities . . . . . .
Other foreign government bonds . . . . . . . . . . . . . . . . . . . .
Agency mortgage-backed securities (1) . . . . . . . . . . . . . . . .
Residential mortgage-backed securities . . . . . . . . . . . . . . .
Commercial mortgage-backed securities . . . . . . . . . . . . . .
Japanese corporate bonds and other debt securities . . . . . .
Foreign corporate bonds and other debt securities . . . . . . .
Equity securities (marketable) . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,059,495
27,243
69,168207,942
90,832
12,7787,159
88,14654,599
8,488

1,520
47
36
94
1,429
9
111
333
114
128

406,684————
122,363
122,588
222,516
65,417
699

4,157
—
—
—
—
2,122
3,417
4,955
1,689
16

5,466,179
27,243
69,168207,942
90,832
135,141
129,747
310,662
120,016
9,187

5,677
47
36
94
1,429
2,131
3,528
5,288
1,803
144

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,625,850

3,821

940,267

16,3566,566,117

20,177

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . .

199,73082——

199,73082

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

199,73082——

199,730

82

2014
Available-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . 10,526,182
Japanese local government bonds . . . . . . . . . . . . . . . . . . . .
48,471
U.S. Treasury bonds and federal agency securities . . . . . .
66,865
Other foreign government bonds . . . . . . . . . . . . . . . . . . . .
203,026
Agency mortgage-backed securities (2) . . . . . . . . . . . . . . . .
102,904
Residential mortgage-backed securities . . . . . . . . . . . . . . .
9,771
Commercial mortgage-backed securities . . . . . . . . . . . . . .
11,133
Japanese corporate bonds and other debt securities . . . . . .
130,020
Foreign corporate bonds and other debt securities . . . . . . .
122,563
Equity securities (marketable) . . . . . . . . . . . . . . . . . . . . . . . . . . .
132,590

2,871
90
2,865
275
2,348
137
117
359
1,846
6,603

880,520
12,73038,432
7,654
76,36978,93843,17060,23033,960
10

856
16
1,432
180
5,357
1,570
1,300
2,925
347
—

11,406,702
61,201
105,297
210,680
179,273
88,70954,303
190,250
156,523
132,600

3,727
106
4,297
455
7,705
1,707
1,417
3,284
2,193
6,603

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,353,525

17,511

1,232,013

13,983

12,585,538

31,494

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . .

9,962

40

199,670180

209,632

220

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,962

40

199,670180

209,632

220

Notes :
(1) Agency mortgage-backed securities presented in the above table represent U.S. agency securities. U.S. agency securities primarily
consist of Government National Mortgage Association or Ginnie Mae securities, which are guaranteed by the United States
government.
(2) Agency mortgage-backed securities presented in the above table consist of U.S. agency securities and Japanese agency securities, ofwhich the fair values were ¥105,208 million and ¥74,065 million, respectively, at March 31, 2014. All Japanese agency securities aremortgage-backed securities issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise.

F-28

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The unrealized losses on investments in a continuous loss position for 12 months or more at March 31, 2014
were attributed mainly to Agency mortgage-backed securities and Japanese corporate bonds and other debt
securities. The MHFG Group did not intend to sell those securities and it was not more likely than not that theGroup would be required to sell them before recovery of their amortized cost basis. Those securities were notconsidered other-than-temporarily impaired. As to CMBS and Japanese corporate bonds and other debt securities
with similar credit risks as the other-than-temporarily impaired securities, and Agency mortgage-backed
securities and Residential mortgage-backed securities (“RMBS”), the Group determined that it was expected torecover their entire amortized cost basis, after considering various factors such as the extent to which their fairvalues were below their amortized costs, the external and/or internal ratings and the present values of cash flows
expected to be collected. As to Japanese government bonds, since the unrealized losses had not resulted fromcredit deterioration, but primarily from changes in interest rates, their entire amortized cost basis was expected tobe collected.
For the fiscal years ended March 31, 2012, 2013 and 2014, the gross realized gains on sales of available-for-salesecurities were ¥100,371 million, ¥193,298 million and ¥231,955 million, respectively, and the gross realized
losses on those sales were ¥28,840 million, ¥21,422 million and ¥29,387 million, respectively.
Other investments
The following table summarizes the composition of Other investments:
2013
2014
(in millions of yen)

Equity method investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments held by consolidated investment companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other equity interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

225,696
75,780536,659

196,015
70,599526,075

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

838,135

792,689

Equity method investments
Investments in investees over which the MHFG Group has the ability to exert significant influence are accounted
for using the equity method of accounting. For the fiscal years ended March 31, 2012, 2013 and 2014, theearnings (losses) from equity method investments were ¥10,807 million, (¥2,192) million and ¥27,975 million,
respectively. Such investments included marketable equity securities carried at ¥68,289 million and¥78,458 million, at March 31, 2013 and 2014, respectively. The aggregate market values of these marketable
equity securities were ¥111,543 million and ¥96,471 million, respectively.
The MHFG Group’s proportionate share of the total outstanding common shares in Orient Corporation (“Orico”)
as of March 31, 2014 was 22.2% and the Group and a certain third party still hold convertible preferred shares ofOrico, and if fully converted, the Group’s proportionate share of the total outstanding common shares in Oricowould increase to 58.0%.
Investments held by consolidated investment companies
The MHFG Group consolidates certain investment companies over which it has control through either ownershipor other means. Investment companies are subject to specialized industry accounting which requires investments
to be carried at fair value, with changes in fair value recorded in earnings. The MHFG Group maintains thisspecialized industry accounting for investments held by consolidated investment companies, which consist of
marketable and non-marketable investments.
F-29

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other equity interests
Other equity interests consist primarily of non-marketable equity securities outside the scope of ASC 320, of
which the fair values are not readily determinable. The MHFG Group has neither significant influence nor
control over the investees. Each of these securities is stated at acquisition cost, with an other-than-temporary
impairment, if any, included in earnings. The MHFG Group monitors the status of each investee, including its
credit rating, to determine whether impairment losses should be recognized.
4. Loans
The table below presents loans outstanding by domicile and industry of borrower at March 31, 2013 and 2014:
2013
2014
(in millions of yen)Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other industries (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals:
Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,078,871
7,477,853
3,972,011
5,355,974
3,147,106
3,142,998
6,907,426
4,521,994

8,025,932
7,204,594
3,956,742
5,350,707
3,247,394
3,460,147
6,734,451
4,983,821

11,234,561
741,519

11,187,206
787,313

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54,580,313

54,938,307

Foreign:
Commercial and industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,481,071
4,088,651
595,911
199,518

12,937,005
4,610,141
883,004
255,083

Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15,365,151

18,685,233

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unearned income and deferred loan fees—net . . . . . . . . . . . . . . . . . . . . . . . . . . .

69,945,464
111,981

73,623,540
138,586

Total loans before allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69,833,483

73,484,954

Note: Other industries of domestic and Other of foreign include trade receivables and lease receivables of
consolidated VIEs.
Net losses on sales of loans were ¥4,576 million, ¥853 million and ¥2,041 million, of which valuation losses
related to loans held for sale accounted for at the lower of cost or fair value were ¥3,435 million, ¥54 million and¥1,510 million for the fiscal years ended March 31, 2012, 2013 and 2014, respectively.
Credit quality information
In accordance with the MHFG Group’s credit risk management policies, the Group uses an internal rating systemthat consists of credit ratings and pool allocations as the basis of its risk management infrastructure. Credit
F-30

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
ratings consist of obligor ratings which represent the level of credit risk of the obligor, and transaction ratings
which represent the ultimate possibility of incurring losses on individual loan by taking into consideration
various factors such as collateral or guarantees involved. In principle, obligor ratings are applied to all obligors
except those to which pool allocations are applied, and are subject to regular review at least once a year as well
as special review which is required whenever the obligor’s credit standing changes. Pool allocations are applied
to small balance loans. The Group pools loans with similar risk characteristics, and the risk is assessed andmanaged according to such pools. The Group generally reviews the appropriateness and effectiveness of theapproach to obligor ratings and pool allocations once a year in accordance with predetermined procedures.
The table below presents the MHFG Group’s definition of obligor ratings used by MHBK and MHTB:
Obligor category

Obligor rating

Definition

NormalA

Obligors whose certainty of debt fulfillment is very high, hence theirlevel of credit risk is very low.

B

Obligors whose certainty of debt fulfillment poses no problems for theforeseeable future, and their level of credit risk is low.

C

Obligors whose certainty of debt fulfillment and their level of credit
risk pose no problems for the foreseeable future.

D

Obligors whose current certainty of debt fulfillment poses noproblems, however, their resistance to future environmental changes is
low.

E1

Obligors that require observation going forward because of either
minor concerns regarding their financial position, or somewhat weakor unstable business conditions.

E2

Obligors that require special observation going forward because ofproblems with their borrowings such as reduced or suspended interest
payments, problems with debt fulfillment such as failure of principal
or interest payments, or problems with their financial position as aresult of their weak or unstable business condition.

Intensive control

F

Obligors that are not yet bankrupt but are in financial difficulties andare deemed likely to become bankrupt in the future because of
insufficient progress in implementing their management improvement
plans or other measures (including obligors that are receiving ongoingsupport from financial institutions).

Substantially bankrupt

G

Obligors that have not yet become legally or formally bankrupt but aresubstantially insolvent because they are in serious financial difficulties
and are deemed to be incapable of being restructured.

Bankrupt

H

Obligors that have become legally or formally bankrupt.

Watch

F-31

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below presents credit quality information of loans based on the MHFG Group’s internal rating system
at March 31, 2013 and 2014:

A-B

Normal obligors
C-D
Retail (2)Watch obligors excluding
special attention obligors (1) Impaired
Other (3) E1-E2 Retail (2) Other (3) loans(in millions of yen)

Total

2013
Domestic:
Manufacturing . . . . . . . . . . . . . .
Construction and real estate . . . .
Services . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . .
Transportation andcommunications . . . . . . . . . . .
Banks and other financial
institutions . . . . . . . . . . . . . . .
Government and public
institutions . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . .

4,171,212 2,615,406
2,524,644 3,486,850
1,736,931 1,734,482
1,853,573 2,699,053

119,183
659,844
219,089
261,322

307,946
148,893
4,035
83,065

498,638
387,254
160,754
236,545

22,56920,671
26,621
49,710

8,013
664
—
11

2,236,404

685,237

94,233350

59,573

12,274—59,035

3,147,106

2,246,804

666,197

2,172

5,311

208,510221—

13,783

3,142,998

6,797,133
1,620,061—

11,729—98,564743,214
3,341 2,058,974
191,360 11,219,209 170,768——
13,044448
33,618 121,468—
77,548
4,032

Total domestic . . . . . . . . . . 23,186,762 12,833,528 12,578,393 2,877,906 1,597,936 253,982

335,904 8,078,871
249,033 7,477,853
90,099 3,972,011
172,695 5,355,974—
6,907,426
5,364 4,521,994
235,625 11,976,080

90,268 1,161,538 54,580,313

Foreign:
Total foreign . . . . . . . . . . . .

8,293,654

3,650,488

4,881 2,021,284

980,343

137 111,684

302,680 15,365,151

Total . . . . . . . . . . . . . . . . . . . . . . . . . . 31,480,416 16,484,016 12,583,274 4,899,190 2,578,279 254,119 201,952 1,464,218 69,945,464
2014
Domestic:
Manufacturing . . . . . . . . . . . . . .
Construction and real estate . . . .
Services . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . .
Transportation andcommunications . . . . . . . . . . .
Banks and other financial
institutions . . . . . . . . . . . . . . .
Government and public
institutions . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . .

4,248,490 2,467,326
2,890,563 3,066,852
1,946,764 1,558,609
2,029,723 2,632,048

109,258
623,385
205,939
249,304

310,703
161,177
6,998
63,116636,348
303,746
135,030
178,520

21,117
20,577
24,95842,086

3,820
381
—
10

228,870 8,025,932
137,913 7,204,594
78,444 3,956,742
155,900 5,350,707

2,388,541

658,680

88,911

1,348

50,667

11,159—48,0883,247,394

2,602,545

664,843

2,030

4,780

174,328165—

11,4563,460,147

6,678,104
1,907,714
—

8,347
—
48,000754,137
3,383 2,240,879
197,725 11,266,620 169,655

—
—
7,804
401
40,606 101,718—
68,642
2,823—
6,734,451
861 4,983,821
195,372 11,974,519

Total domestic . . . . . . . . . . 24,692,444 12,008,567 12,548,830 3,006,656 1,527,049 222,181

75,676

856,904 54,938,307

14 144,238

288,156 18,685,233

Foreign:
Total foreign . . . . . . . . . . . . 10,600,531

4,349,587

6,621 2,782,476

513,610

Total . . . . . . . . . . . . . . . . . . . . . . . . . . 35,292,975 16,358,154 12,555,451 5,789,132 2,040,659 222,195 219,914 1,145,060 73,623,540
Notes:(1) Special attention obligors are watch obligors with debt in TDR or 90 days or more delinquent debt. Loans to such obligors are considered
impaired.
(2) Amounts represent small balance, homogeneous loans which are subject to pool allocations.
(3) The former MHBK and the former Mizuho Corporate Bank, Ltd. (“MHCB”) merged on July 1, 2013 and the former MHCB, thesurviving company, changed its trade name to MHBK. As of March 31, 2013, non-impaired loans held by subsidiaries other than theformer MHBK, the former MHCB and MHTB constitute Other, since their portfolio segments are not identical to those used by theformer MHBK, the former MHCB and MHTB. As of March 31, 2014, non-impaired loans held by subsidiaries other than MHBK and
MHTB constitute Other, since their portfolio segments are not identical to those used by MHBK and MHTB.

F-32

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Impaired loans
The MHFG Group considers loans to be impaired when it is probable that the Group will be unable to collect all
the scheduled payments of principal and interest when due according to the contractual terms of the loan. The
Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as
impaired loans, and all of the Group’s impaired loans are designated as nonaccrual loans. The Group does nothave any loans to borrowers that cause management to have serious doubts as to the ability of such borrowers tocomply with the present loan repayment terms for the periods presented other than those already designated as
impaired loans. The table below presents impaired loans information at March 31, 2013 and 2014.
Recorded investment (1)Notrequiring an
Requiring an allowance
UnpaidAverage
Interest
allowance for for loan
principal Related
recordedincomeloan losses
losses (2)Totalbalance allowance (3) investment recognized (4)(in millions of yen)
2013
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . .
Banks and other financial institutions . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . .

325,727
189,060
77,982
160,477
55,202
13,727
5,224
116,875

10,17759,973
12,117
12,2183,833
56
140
118,750

Total domestic . . . . . . . . . . . . . . . . . . .

944,274

217,264

335,904
249,033
90,099172,695
59,035
13,783
5,364
235,625

365,049
269,770
106,397
189,23161,554
13,821
5,484
252,182

118,475
46,574
22,15362,962
18,870
5,007
3,818
9,429

299,978
227,920
103,113
186,594
54,633
11,9504,791
250,718

5,297
2,824
1,949
3,076
1,220
227
73
4,343

1,161,538 1,263,488

287,288

1,139,697

19,009Foreign:
Total foreign . . . . . . . . . . . . . . . . . . . .

297,859

4,821

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,242,133

222,085

305,801

119,053

220,561

5,321

1,464,218 1,569,289

302,680

406,341

1,360,258

24,330

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . .
Banks and other financial institutions . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . .

216,579
107,932
66,651
142,886
44,237
11,390781
91,715

12,291
29,981
11,79313,0143,851
66
80
103,657

228,870
137,91378,444
155,900
48,08811,456861
195,372

240,660
163,81388,537
172,641
54,14911,4802,020
206,341

74,36730,724
20,19951,274
14,691
4,049
108
9,391

259,889
183,437
83,754
161,288
50,387
12,474
3,486
215,422

4,086
2,213
1,671
2,795
939
163
19
3,714

Total domestic . . . . . . . . . . . . . . . . . . .

682,171

174,733

856,904

939,641

204,803

970,137

15,600288,156

290,161

118,360

291,981

4,750

1,145,060 1,229,802

323,163

1,262,118

20,3502014

Foreign:
Total foreign . . . . . . . . . . . . . . . . . . . .

276,292

11,864

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

958,463

186,597

Notes:(1) Amounts represent the outstanding balances of nonaccrual loans. The MHFG Group’s policy for placing loans in nonaccrual statuscompletely corresponds to the Group’s definition of impaired loans.
(2) These impaired loans do not require an allowance for loan losses because the MHFG Group has sufficient collateral to cover probableloan losses.
(3) The allowance for loan losses on impaired loans includes those for groups of small balance, homogeneous loans totaling¥504,750 million and ¥425,391 million as of March 31, 2013 and 2014 which were collectively evaluated for impairment, in addition to
those that were individually evaluated for impairment.
(4) Amounts represent gross interest income on impaired loans which were included in Interest income on loans in the consolidated
statements of income.

F-33

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The remaining balance of impaired loans which had been partially charged off were ¥51,720 million and¥24,957 million as of March 31, 2013 and 2014, respectively.
Troubled debt restructurings
The MHFG Group considers restructurings, with respect to which concessions that it would not otherwise
consider were granted to obligors in financial difficulty, as TDRs. The Group considers the relevant obligor to bein financial difficulty when its obligor rating is E2 or below. The following table presents TDRs that were madeduring the fiscal years ended March 31, 2013 and 2014.
Loan forgiveness or debt toequity swaps
Recorded
investment (1)Charge-offs (2)(in millions of yen)

2013
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign:
Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign:
Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest rate
reduction and/or
Postponement ofprincipal and/orinterest

—
—
—
—
—
—
—
—
—

—
—
—
1,243
—
—
—
—
1,243

277,957
129,908
68,930218,497
52,206
34,468
1,809
62,160845,935

1,062
1,062

3,750
4,993

140,064
985,999

235
2,528
310
5
—
—
—
—
3,078

481
136
555
149
—
—
—
—
1,321

196,705
44,57357,945170,217
34,59831,901
1,998
47,822585,759

—
3,078

—
1,321

60,348646,107

Notes:(1) Amounts represent the book values of loans immediately after the restructurings.
(2) Charge-offs represent the loss impact on the consolidated statements of income for the fiscal year that
resulted from the restructurings.
F-34

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Payment default is deemed to occur when the loan becomes three months past due or the obligor is downgradedto the category of substantially bankrupt or bankrupt. The following table presents payment defaults which
occurred during the fiscal years ended March 31, 2013 and 2014 with respect to the loans modified as TDRs
within the previous twelve months.
Recorded investment
2013
2014
(in millions of yen)Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign:
Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-35

18,74018,751
5,976
19,920
4,386
—
—
5,517
73,29021,144
3,500
3,707
21,916
14,069—107
6,283
70,726

6,374
79,664115
70,841MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Age analysis of past due loans
The table below presents an analysis of the age of the recorded investment in loans that are past due at March 31,
2013 and 2014:30-59 days
past due60-89 days
past due

90 days or
Total past
more past duedue(in millions of yen)Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . .
Banks and other financial institutions . . . . . . .
Government and public institutions . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,788
11,815
3,385
2,771
711
—
—
—
41,987

1,911
4,038
1,916
2,851
558
—
—
18
24,114

32,83069,333
13,82916,483
3,687
6
—
122
69,774

Total domestic . . . . . . . . . . . . . . . . . . . . .

64,45735,406

206,064

Current

Total

38,52985,186
19,13022,105
4,956
6
—
140
135,875

8,040,342
7,392,667
3,952,881
5,333,869
3,142,150
3,142,992
6,907,426
4,521,854
11,840,205

8,078,871
7,477,853
3,972,011
5,355,974
3,147,106
3,142,998
6,907,426
4,521,994
11,976,080

305,927

54,274,386

54,580,313

2013

Foreign:
Total foreign . . . . . . . . . . . . . . . . . . . . . . .

127

885

11,132

12,144

15,353,007

15,365,151

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

64,58436,291

217,196

318,071

69,627,393

69,945,464

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and real estate . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . . .
Banks and other financial institutions . . . . . . .
Government and public institutions . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,834
5,412
2,185
3,205
832
—
—
9
38,466

2,193
3,440
1,235
4,561
573
1
—
29
18,48814,45244,852
10,304
12,1803,265
5—
3456,605

19,47953,704
13,724
19,9464,670
6—
72
113,559

8,006,453
7,150,890
3,943,018
5,330,761
3,242,724
3,460,141
6,734,451
4,983,749
11,860,960

8,025,932
7,204,594
3,956,742
5,350,707
3,247,394
3,460,147
6,734,451
4,983,821
11,974,519

Total domestic . . . . . . . . . . . . . . . . . . . . .

52,94330,520141,697

225,160

54,713,147

54,938,307

Total foreign . . . . . . . . . . . . . . . . . . . . . . .

87

23

10,935

11,045

18,674,188

18,685,233

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

53,03030,543

152,632

236,205

73,387,335

73,623,540

2014

Foreign:

5. Allowance for loan losses
In accordance with ASC 450, a formula-based allowance utilizing historical loss factors, after adjusted forexisting economic conditions where appropriate, is applied to groups of non-homogeneous loans and smallbalance, homogeneous loans which have not been identified as impaired. In MHBK and MHTB, whenmanagement estimates probable credit losses to determine the allowance for loan losses, small balance,
homogeneous loans are classified in the retail portfolio segment to which pool allocations apply, and loans otherthan these classified in the retail portfolio segment are classified in the corporate portfolio segment. The
corporate portfolio segment consists of loans originated by MHBK and MHTB, and includes mainly businessloans such as those used for working capital and capital expenditure, as well as loans for which the primarysource of repayment of the obligation is income generated by the relevant assets such as project finance, asset
finance and real estate finance. The retail portfolio segment consists mainly of residential mortgage loans,
F-36

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
originated by MHBK. The other portfolio segment consists of loans of subsidiaries other than MHBK and
MHTB, such as consolidated VIEs and overseas subsidiaries. See Note 1 “Basis of presentation and summary ofsignificant accounting policies” for further detail of the methodology used to determine the allowance for loan
losses and Note 4 “Loans” for further details of obligor ratings and pool allocations.
Changes in the Allowance for loan losses by portfolio segment for the fiscal years ended March 31, 2012, 2013
and 2014 are shown below:
Corporate

RetailOther(in millions of yen)

Total

2012
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

563,116

151,342

20,072734,530

Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(19,433) (21,375) 17,764(23,044)

Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54,59948,354

5,133
1,442

20,4102,460

80,142
52,256

Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,245

3,691

17,95027,886

Others (Note)...............................................

(1,963)

—

1,055

(908)

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

535,475

126,276

20,941

682,6922013
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

535,475

126,276

20,941

682,692

Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

137,549(14,180) 16,578

139,947

Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69,84527,447

4,249
1,342

20,503
2,911

94,59731,700Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42,3982,907

17,59262,897

Others (Note)...............................................

11,269—1,946

13,215

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

641,895

109,189

21,873772,957

2014
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

641,895

109,189

21,873772,957

Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(128,368) (12,712) 14,850(126,230)

Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47,927
21,423

3,935
3,000

13,2862,112

65,14826,535

Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,504935

11,174

38,613

Others (Note)...............................................

14,326—

3,737

18,063

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

501,349

95,542

29,286626,177

Note: Others include primarily foreign exchange translation.

F-37

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below presents the Allowance for loan losses and loans outstanding by portfolio segment disaggregatedon the basis of impairment method at March 31, 2013 and 2014:
Corporate

RetailOther(in millions of yen)

Total

2013
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . .

641,895

109,189

21,873772,957

of which individually evaluated for impairment . . . . . .
of which collectively evaluated for impairment . . . . . .

398,622
243,273

14,81594,374

9,247
12,626422,684
350,273

Loans (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51,801,814

13,007,792

5,135,858

69,945,464

of which individually evaluated for impairment . . . . . .
of which collectively evaluated for impairment . . . . . .

1,160,489
50,641,325

45,961
12,961,831

59,974
5,075,884

1,266,424
68,679,040

2014
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . .

501,349

95,542

29,286626,177of which individually evaluated for impairment . . . . . .
of which collectively evaluated for impairment . . . . . .

327,011
174,338

11,73583,807

10,562
18,724349,308
276,869

Loans (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54,651,867

12,922,564

6,049,109

73,623,540

of which individually evaluated for impairment . . . . . .
of which collectively evaluated for impairment . . . . . .

1,100,938
53,550,929

39,25012,883,314

54,127
5,994,982

1,194,315
72,429,225

Note: Amounts represent loan balances before deducting unearned income and deferred loan fees.
In the fiscal year ended March 31, 2012, the Provision for loan losses decreased by ¥23,691 million from theprevious fiscal year. The decrease was due primarily to upgrades in the obligor categories of a broad range ofborrowers as a result of the effectiveness of the MHFG Group’s credit management activities which wasenhanced against the backdrop of the improving domestic economic environment, reflecting the continuing
gradual recovery of the Japanese economy.
In the fiscal year ended March 31, 2013, the Provision for loan losses increased by ¥162,991 million from theprevious fiscal year. The increase was due primarily to an increase in allowance for loan losses as a result of anincrease in foreign impaired loans that required an allowance for loan losses and increased estimated losses
reflecting changes in the business environment surrounding some domestic obligors, offset in part by the effectsof the continuing gradual recovery of the Japanese economy.
In the fiscal year ended March 31, 2014, the Provision for loan losses decreased by ¥266,177 million from theprevious fiscal year. The decrease was due primarily to a decrease in allowance for loan losses on domestic
impaired loans as a result of upgrades and collections related to some borrowers and non-impaired loans
reflecting upgrades in the obligor categories of a broad range of borrowers mainly through our credit
management activities, including business revitalization support for borrowers, reflecting the continuing gradual
recovery of the Japanese economy.

F-38

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. Premises and equipment
Premises and equipment at March 31, 2013 and 2014 consist of the following:
2013
2014
(in millions of yen)

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment and furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

268,948
743,473418,647
90,30623,875
657,702410,739
800,680435,655
92,05235,789725,287

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,202,951
1,110,962

2,500,202
1,143,608

Premises and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,091,989

1,356,594

Depreciation and amortization expense for premises and equipment for the fiscal years ended March 31, 2012,2013 and 2014 was ¥160,231 million, ¥151,550 million and ¥155,549 million, respectively.
Premises and equipment under capital leases, which is primarily comprised of data processing equipment,
amounted to ¥49,727 million and ¥51,681 million at March 31, 2013 and 2014, respectively. Accumulated
depreciation and amortization on such premises and equipment at March 31, 2013 and 2014 amounted to¥27,830 million and ¥28,209 million, respectively.

F-39

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
7. Goodwill and intangible assets
Goodwill
The changes in Goodwill during the fiscal years ended March 31, 2012, 2013 and 2014 were as follows:
MHBK
Total
(in millions of yen)

2012
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill acquired (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment losses recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,610
3,776
5,637
(114)
5,635

7,610
3,776
5,637
(114)
5,635

Gross amount of goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70,90965,27470,90965,2742013
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment losses recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,635
—
—
512
6,147

5,635
—
—
512
6,147

Gross amount of goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

71,421
65,27471,421
65,2742014
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill acquired (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment losses recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,147
7,719
3,792
1,475
11,549

6,147
7,719
3,792
1,475
11,549Gross amount of goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

80,61569,06680,61569,066

Notes:(1) Goodwill acquired is entirely related to the acquisition of PT. Mizuho Balimor Finance.
(2) Goodwill acquired is entirely related to the acquisition of Banco Mizuho do Brasil S.A.
Due to the prolonged severe business environment for the former Mizuho Investors Securities Co., Ltd.
(“MHIS”) and PT. Mizuho Balimor Finance, it was determined that the carrying amounts of the former MHIS
reporting unit and PT. Mizuho Balimor Finance reporting unit exceeded their fair values, and therefore, goodwill
impairment losses of ¥5,637 million and ¥3,792 million related to the former MHIS and PT. Mizuho Balimor
Finance were recognized during the fiscal years ended March 31, 2012 and 2014, respectively.

F-40

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Intangible assets
The table below presents the gross carrying amount, accumulated amortization and net carrying amount ofintangible assets, at March 31, 2013 and 2014.
2013
2014
Gross
Net
Gross
Net
carrying Accumulated carrying carrying Accumulated carrying
amount amortization amount amount amortization amount(in millions of yen)

Intangible assets subject to amortization:
Customer relationships (Note) . . . . . . . . . . . . . 73,949
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,363

19,2382,050

54,711 73,949
313 2,808

24,8652,152

49,084656

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,312

21,28855,024 76,757

27,01749,740

9,207

—

9,207

64,474 85,964

27,01758,947

Intangible assets not subject to amortization:
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,450

—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,762

21,2889,450

Note: Customer relationships were acquired by the merger of MHSC and Shinko on May 7, 2009. See Note 1“Basis of presentation and summary of significant accounting policies” for further information.
For the fiscal years ended March 31, 2012, 2013, and 2014, the MHFG Group recognized ¥5,490 million,¥5,615 million, and ¥5,709 million, respectively, of amortization expenses for intangible assets.
The table below presents the estimated aggregate amortization expenses for intangible assets for the next five
years:(in millions of yen)

Fiscal year ending March 31:
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,349
5,058
4,780
4,502
4,264

8. Pledged assets and collateral
The following amounts, by balance sheet classification, have been pledged as collateral for borrowings and forother purposes at March 31, 2013 and 2014:
2013
2014
(in billions of yen)Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28
13,752
15,939
8,860
900

38
10,271
13,353
8,796
677

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39,47933,135F-41

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The associated liabilities collateralized by the above assets at March 31, 2013 and 2014 are summarized below:
2013
2014
(in billions of yen)

Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call money and funds purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under securities lending transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

259
1,580
7,726
11,092
5,626
321

878
1,708
6,884
6,237
405
5,632

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,604

21,744The Bank of Japan (“the BOJ”) requires private depository institutions to maintain a certain amount of funds as
reserves in current accounts with the BOJ, based on average deposit balances and certain other factors. There aresimilar reserve deposit requirements for foreign branches and subsidiaries engaged in banking businesses inforeign countries. At March 31, 2013 and 2014, the deposit amounts maintained with the BOJ and foreign central
banks, which were included in Cash and due from banks and Interest-bearing deposits in other banks, were
¥10,507 billion and ¥18,084 billion, respectively. Those balances included the reserve funds required to be
maintained by the MHFG Group, which amounted to ¥1,099 billion and ¥1,184 billion at March 31, 2013 and2014, respectively.
At March 31, 2013 and 2014, the MHFG Group had received collateral that can be sold or repledged, with a fairvalue of ¥15,501 billion and ¥13,817 billion, respectively, of which ¥13,834 billion and ¥12,508 billion,
respectively, were sold or repledged. Such collateral was primarily obtained under resale or securities borrowing
agreements, and was used generally as collateral under repurchase or securities lending agreements, or to covershort sales.
9. Deposits
The balances of time deposits and certificates of deposit issued by domestic offices in amounts of ¥10 million(approximately US$97 thousand at the Federal Reserve Bank of New York’s noon buying rate on March 31,2014) or more and the balances of those deposits issued by foreign offices in amounts of US$100,000 or more atMarch 31, 2013 and 2014 are as follows:
2013
2014
(in millions of yen)Domestic offices:Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18,302,196
11,393,094

18,351,826
8,117,512

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29,695,290

26,469,338

Foreign offices:Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,209,016
3,933,688

9,555,568
4,638,265

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12,142,704

14,193,833

The aggregate amount of demand deposits in overdraft status that have been reclassified as loan balances at
March 31, 2013 and 2014 was ¥543 billion and ¥597 billion, respectively.
F-42

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The balance and remaining maturities of time deposits and certificates of deposit issued by domestic and foreign
offices at March 31, 2014 are shown in the following table:Timedeposits

Certificates ofdeposit(in millions of yen)

Total

Domestic offices:
Due in one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after one year through two years . . . . . . . . . . . . . . . . . . . . . . .
Due after two years through three years . . . . . . . . . . . . . . . . . . . . .
Due after three years through four years . . . . . . . . . . . . . . . . . . . . .
Due after four years through five years . . . . . . . . . . . . . . . . . . . . . .
Due after five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24,079,640
1,910,790
1,243,980
342,948412,261
133,735

8,115,532
1,980
—
—
—
—

32,195,172
1,912,770
1,243,980
342,948412,261
133,735

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,123,354

8,117,512

36,240,866

Foreign offices:
Due in one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after one year through two years . . . . . . . . . . . . . . . . . . . . . . .
Due after two years through three years . . . . . . . . . . . . . . . . . . . . .
Due after three years through four years . . . . . . . . . . . . . . . . . . . . .
Due after four years through five years . . . . . . . . . . . . . . . . . . . . . .
Due after five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,526,641
20,176
9,528
1,102
3,240
392

4,630,546
7,719
—
—
—
—

14,157,187
27,895
9,528
1,102
3,240
392

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,561,079

4,638,265

14,199,344

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

37,684,433

12,755,777

50,440,210

10. Due to trust accounts
MHTB and TCSB, which are MHFG’s trust bank subsidiaries, hold assets on behalf of their customers in an
agent, fiduciary or trust capacity. Such trust account assets are not the MHFG Group’s proprietary assets and aremanaged and accounted for separately. However, the cash in individual trust accounts is often placed withMHTB and TCSB for the customers’ short-term investment needs. These amounts which MHTB and TCSB owe
to the trust accounts are recorded as Due to trust accounts.
The MHFG Group consolidates certain guaranteed principal money trusts. See Note 25 “Variable interest entities
and securitizations” for further discussion of the guaranteed principal money trust.
11. Short-term borrowings and long-term debt
Short-term borrowings
Short-term borrowings consist of Due to trust accounts, Call money and funds purchased, Payables under
repurchase agreements and securities lending transactions, and Other short-term borrowings.

F-43

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Details of Other short-term borrowings at March 31, 2013 and 2014 are as follows:
2013
2014
(in millions of yen)

Commercial paper and short-term notes issued by consolidated VIEs of asset-backed
commercial paper programs (1) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
252,277
286,968
Short-term notes issued by MHFG and its subsidiaries (1) . . . . . . . . . . . . . . . . . . . . . . . . .
477,400
497,100
Borrowings from the Bank of Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,884,304 5,138,003
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110,119
101,901
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,724,100 6,023,972
Notes:(1) Short-term notes are issued under laws of Japan in the form of dematerialized commercial paper, whosecharacteristics are economically the same as commercial paper.
(2) Commercial paper and short-term notes issued by consolidated VIEs of asset-backed commercial paper
programs in the above table consist of commercial paper and short-term notes, of which amounts were
¥164,194 million and ¥88,083 million, respectively, at March 31, 2013, and ¥199,500 million and¥87,468 million, respectively, at March 31, 2014.
Long-term debt
Long-term debt with original maturities of more than one year at March 31, 2013 and 2014 is comprised of thefollowing:
2013
2014
(in millions of yen)

Obligations under capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan participation borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior borrowings and bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subordinated borrowings and bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24,40662,332
4,784,010
3,931,475

26,68079,014
5,805,634
3,942,613

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,802,223

9,853,941

F-44

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the interest rates and maturities of senior borrowings and bonds, and subordinatedborrowings and bonds:
Interest rates (1)(%)

Senior borrowings and bonds:
fixed rate denominated in Japanese yen . . .
fixed rate denominated in U.S. dollars . . . .
fixed rate denominated in othercurrencies . . . . . . . . . . . . . . . . . . . . . . . . .
floating rate denominated in Japanese
yen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
floating rate denominated in U.S. dollars . .
floating rate denominated in othercurrencies . . . . . . . . . . . . . . . . . . . . . . . . .

Maturities (2)0.00-10.00
0.00-7.49

Apr. 2014-Mar. 2044 2,741,475 3,557,508
Apr. 2014-Jul. 2043
520,714604,2810.02-5.40

Jan. 2015-Mar. 2029

683

25,6870.00-18.10
0.00-15.60

Apr. 2014-Mar. 2044
Apr. 2014-Mar. 2028

1,065,708
426,515

1,063,111
532,199

0.05-0.58

Apr. 2014-Jan. 2015

28,91522,8484,784,010

5,805,634

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subordinated borrowings and bonds:
fixed rate denominated in Japanese yen . . .
fixed rate denominated in U.S. dollars . . . .
floating rate denominated in Japanese
yen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2013
2014
(in millions of yen)

1.09-4.74
4.30-14.91

Apr. 2014-Perpetual
Apr. 2014-Perpetual0.98-2.61

Jun. 2019-Perpetual

3,393,092 3,249,999
419,383
613,609
119,000

79,005

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,931,475

3,942,613

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,715,485

9,748,247

Notes:(1) The interest rates disclosed reflect the range of contractual rates in effect at March 31, 2014.
(2) Maturity information disclosed is the range of maturities at March 31, 2014.
(3) None of the long-term debt issuances above are convertible to common stock.
(4) Certain debt agreements permit the MHFG Group to redeem the related debt, in whole or in part, prior tomaturity at the MHFG Group’s option on terms specified in the respective agreements.
The following is a summary of the contractual maturities of long-term debt subsequent to March 31, 2014:(in millions of yen)

Fiscal year ending March 31:
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,222,317
1,190,985
1,776,546
1,025,441
483,888
4,154,764

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,853,941

F-45

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
12. Other assets and liabilities
The following table sets forth the details of other assets and liabilities at March 31, 2013 and 2014:
2013
2014
(in millions of yen)

Other assets:
Accounts receivable from brokers, dealers and customers for securities
transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateral provided for derivative transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Margins provided for futures contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

907,671 1,122,247
742,307466,420
153,414403,654
120,322315,037
99,844
147,376
102,031
121,675
9,820
58,745466,542
563,841
2,601,951

3,198,995

Other liabilities:
Accounts payable to brokers, dealers and customers for securities transactions . . . . 1,560,345 1,325,455
Guaranteed trust principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
535,720591,647
Miscellaneous payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
260,665
473,028
Collateral accepted for derivative transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
503,101
432,820
Factoring amounts owed to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
375,933
382,189
Margins accepted for futures contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
199,930
289,381
Unearned income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
141,189
141,735
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
791,243785,768
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,368,126

4,422,023

Unearned income
Unearned income is primarily comprised of refundable fees received from consumer loan customers at the time
the loan was made, which is being deferred and recognized in earnings as earned.
Guaranteed trust principal
Guaranteed trust principal is the liability of certain consolidated trust arrangements, which the MHFG Group
provides guarantees for the repayment of principal. See Note 25 “Variable interest entities and securitizations”
for further discussion of the guaranteed principal money trust.

F-46

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
13. Preferred stock
The composition of preferred stock at March 31, 2012, 2013 and 2014 is as follows:
2012
Class of stock

Eleventh series class XI
preferred stock (1) . . . . . . .
Class XII preferred stock . . .
Thirteenth series class XIII
preferred stock . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

Aggregate amount(in millions of yen)

Authorized

Eleventh series class XI
preferred stock (1) . . . . . . .
Class XII preferred stock . . .
Thirteenth series class XIII
preferred stock . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

In treasury

Liquidation Convertible
value per shareor not(in yen)914,752—

1,369,512,000 914,752,000 541,073,800
1,500,000,000
—
—

1,000
—

Yes
—

36,6901,500,000,000

1,000

No

951,442

4,369,512,000 951,442,000 541,073,800

2013
Class of stock

Number of shares
IssuedAggregate amount(in millions of yen)

Authorized

36,690,000

Number of shares
Issued—In treasury

Liquidation Convertible
value per shareor not(in yen)914,752—

1,369,512,000 914,752,000 574,087,800
1,500,000,000
—
—

1,000
—

Yes
—

36,6901,500,000,000

1,000

No

951,442

4,369,512,000 951,442,000 574,087,800

F-47

36,690,000—

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2014
Class of stock

Eleventh series class XI
preferred stock (1) . . . . . . .
Thirteenth series class XIII
preferred stock . . . . . . . . .
First series class XIV
preferred stock (2) . . . . . . .
Second series class XIV
preferred stock (2) . . . . . . .
Third series class XIV
preferred stock (2) . . . . . . .
Fourth series class XIV
preferred stock (2) . . . . . . .
First series class XV
preferred stock (3) . . . . . . .
Second series class XV
preferred stock (3) . . . . . . .
Third series class XV
preferred stock (3) . . . . . . .
Fourth series class XV
preferred stock (3) . . . . . . .
First series class XVI
preferred stock (4) . . . . . . .
Second series class XVI
preferred stock (4) . . . . . . .
Third series class XVI
preferred stock (4) . . . . . . .
Fourth series class XVI
preferred stock (4) . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

Aggregate amount(in millions of yen)

914,752

Authorized

Number of shares
IssuedIn treasury

914,752,000 914,752,000 602,100,700

Liquidation Convertible
value per shareor not(in yen)

1,000

Yes

—

36,690,000

—

—

—

—

—

900,000,000

—

—

—

—

—

900,000,000

—

—

—

—

—

900,000,000

—

—

—

—

—

900,000,000

—

—

—

—

—

900,000,000

—

—

—

—

—

900,000,000

—

—

—

—

—

900,000,000

—

—

—

—

—

900,000,000

—

—

—

—

—

1,500,000,000

—

—

—

—

—

1,500,000,000

—

—

—

—

—

1,500,000,000

—

—

—

—

1,500,000,000——
4,251,442,000 914,752,000 602,100,700———
914,752

Notes:(1) The aggregate amount and number of issued shares include the preferred stock in treasury which has been
converted to common stock but not yet cancelled.
(2) The total number of authorized shares from first to fourth series class XIV preferred stock shall not exceed
900,000,000.
(3) The total number of authorized shares from first to fourth series class XV preferred stock shall not exceed
900,000,000.
(4) The total number of authorized shares from first to fourth series class XVI preferred stock shall not exceed
1,500,000,000.
Holders or registered pledgees of preferred stock are entitled to receive annual dividends, and distribution ofresidual assets of MHFG as set out above at the liquidation value per share, prior to holders of common stock but
pari passu among themselves. MHFG may pay up to one-half of the annual dividend payable on each class ofpreferred stock as an interim dividend. Dividends on preferred stock are not cumulative. Holders of preferredstock are not entitled to vote at a general meeting of shareholders except where the articles of incorporation
entitle holders of preferred stock to vote.

F-48

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In June 2013, MHFG newly authorized class XIV preferred stock, class XV preferred stock and class XVI
preferred stock in relation to meet the requirements of Basel III. Under Basel III, in order for preferred stock
issued by a bank holding company to be included as its regulatory capital under the capital adequacy
requirements, the terms and conditions of the preferred stock are required to include a provision that in the casewhere the bank holding company is recognized as non-viable, (1) a write-off of the relevant preferred stock or(2) a conversion of the relevant preferred stock into common stock shall be effected (a loss-absorption clause). In
respect of class XI preferred stock, class XII preferred stock and class XIII preferred stock, which wereauthorized for since before the implementation of Basel III in the articles of incorporation of MHFG, it is notpossible to include the foregoing loss-absorption clause in the terms and conditions of those preferred stock
under the current provisions of the articles of incorporation. Therefore, class XIV preferred stock, class XV
preferred stock and class XVI preferred stock were newly authorized so that the foregoing loss-absorption clausecan be included in the terms and conditions of class XIV preferred stock, class XV preferred stock and class XVI
preferred stock by a resolution of the board of directors relating to the issuance of the relevant preferred stock.
Besides the foregoing loss-absorption clause, provisions regarding the preferred stock dividends, distribution ofresidual assets, acquisition clause and rights to request acquisition in respect of class XIV preferred stock,class XV preferred stock and class XVI preferred stock were newly established. In addition, each of class XIV
preferred stock, class XV preferred stock and class XVI preferred stock was established in multiple series as aseparate class of shares in order to enable MHFG to issue those preferred stock in multiple series.
Eleventh series class XI preferred stock is convertible into common stock at the option of the holder. The
material terms and conditions of conversion are as follows.

Eleventh series class XI
preferred stock

Conversion period

Conversion ratio (Note)

July 1, 2008 toJune 30, 2016

¥1,000/(conversion price), where the conversion price after
adjustment is ¥282.90 on or after August 30, 2011; to be reset on
July 1, 2014 and 2015 (each, a “Reset Date”) as ¥1,000/(conversion
price), where the conversion price is the lower of (x) the average
price of daily closing prices (including closing bid or offered price)of common stock as reported by the Tokyo Stock Exchange (“TSE”)
for the 30 consecutive trading days (excluding trading days on
which no closing price, closing bid or offered price is reported)commencing on the 45th trading day prior to the Reset Date and (y)the conversion price after adjustment effective as of the day before
the relevant Reset Date, provided that the conversion price shall not
be less than ¥282.90.

Note: Subject to adjustment, where issuance or disposal by MHFG of common stock for a price below the“current market price”, a stock split, issuance of securities convertible into common stock at a price below
the “current market price” at the time of issuance thereof or determination of the conversion price thereof,
merger or amalgamation, or a capital decrease or stock consolidation occurs and in certain othercircumstances.

F-49

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Each share of preferred stock which has not been converted as described above by the end of the relevant
conversion period will be converted into common stock on the day following the end of the conversion period on
the following terms:
Conversion dateConversion ratio

July 1, 2016

¥1,000/(current market price), where the current market price is theaverage price of daily closing prices (including closing bid or offeredprice) of common stock as reported by the TSE for the 30 consecutive
trading days (excluding trading days on which no closing price,closing bid or offered price is reported) commencing on the 45th
trading day prior to July 1, 2016, provided that the current market
price shall not be less than ¥282.90.

Eleventh series class XI
preferred stock

The changes in the number of shares and the aggregate amount of preferred stock during the fiscal years ended
March 31, 2012, 2013 and 2014 were as follows:

Eleventh series class XI preferred stock (Note) . . . . . . . 914,752,000
Thirteenth series class XIII preferred stock . . . . . . . . 36,690,000——

Issued at
Issued at
Issued atMarch 31,
Net
March 31,
Net
March 31,2012change2013change2014(number of shares)
914,752,000—
914,752,000— 914,752,000
36,690,000—
36,690,000 (36,690,000)—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951,442,000—

951,442,000Class of stock

Class of stock

Issued atMarch 31,2011

Aggregate
amount at
March 31,2011

NetchangeNetchangeEleventh series class XI preferred stock (Note) . . . . . . .
Thirteenth series class XIII preferred stock . . . . . . . .

914,752
36,690——Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

951,442——

951,442,000 (36,690,000) 914,752,000

Aggregate
Aggregate
amount at
amount at
March 31,
Net
March 31,2012change2013(in millions of yen)
914,752—
914,752
36,690—36,690951,442—

951,442NetchangeAggregate
amount at
March 31,2014—
(36,690)914,752—(36,690)914,752

Note: The aggregate amount and number of issued shares include the preferred stock in treasury which has been
converted to common stock but not yet cancelled.
14. Common stock
On September 1, 2011, MHFG exchanged 824,271,984 shares of its common stock for 30.15 percent of thevoting equity interests in MHTB, in order to turn MHTB into MHFG’s wholly-owned subsidiary. Thistransaction was accounted for as an equity transaction. The consideration through issuance of common stock was¥95,828 million and the MHFG Group recognized a decrease of ¥65,494 million in additional paid-in capitalwhich reflects the adjustment to the carrying amount of Noncontrolling interests. In addition, the carrying
amount of Accumulated other comprehensive income of ¥958 million was adjusted to reflect the change in theownership interest in MHTB through a corresponding increase in additional paid-in capital.
On September 1, 2011, the former MHCB exchanged 951,166,005 shares of MHFG’s common stock for40.80 percent of the voting equity interests in the former MHSC, in order to turn the former MHSC into theformer MHCB’s wholly-owned subsidiary. This transaction was accounted for as an equity transaction. The
consideration through issuance of common stock was ¥110,379 million and the Group recognized increase of¥38,423 million in additional paid-in capital which reflects the adjustment to the carrying amount of
F-50

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Noncontrolling interests. In addition, the carrying amount of Accumulated other comprehensive income of¥2,178 million was adjusted to reflect the change in the ownership interest in the former MHSC through acorresponding decrease in additional paid-in capital.
On September 1, 2011, the former MHBK exchanged 322,928,897 shares of MHFG’s common stock for
46.02 percent of the voting equity interests in the former MHIS, in order to turn the former MHIS into the former
MHBK’s wholly-owned subsidiary. This transaction was accounted for as an equity transaction. The
consideration through issuance of common stock was ¥37,497 million and the Group recognized increase of¥11,599 million in additional paid-in capital which reflects the adjustment to the carrying amount of
Noncontrolling interests. In addition, the carrying amount of Accumulated other comprehensive income of¥744 million was adjusted to reflect the change in the ownership interest in the former MHIS through acorresponding increase in additional paid-in capital.
The changes in the number of issued shares of common stock during the fiscal years ended March 31, 2012,2013 and 2014 were as follows:
2012

2013
(shares)

2014

Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . .
Issuance of new shares of common stock by conversion of
Eleventh series class XI preferred stock . . . . . . . . . . . . .
Issuance of new shares of common stock by exercise ofstock acquisition rights . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuance of new shares of common stock for stock
exchanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21,782,185,320

24,048,165,727

24,164,864,477

151,921,540

116,698,750

99,020,710

4,748,000——

2,109,310,867——

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . .

24,048,165,727

24,164,864,477

24,263,885,187

15. Dividends
The amount available for dividends under the Companies Act is based on the amount recorded in MHFG’s
non-consolidated general books of account, maintained in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”) and adjusted by post period-end changes. Therefore, the consolidated
shareholders’ equity under U.S. GAAP has no effect on the determination of the amount available for dividends.
On March 31, 2014, MHFG’s capital stock, capital surplus and retained earnings were ¥2,254,973 million,¥1,194,865 million and ¥1,419,866 million, respectively, under Japanese GAAP.
In making a distribution of retained earnings, an entity must set aside in its legal reserve an amount equal to
one-tenth of the amount of retained earnings so distributed, until its legal reserve reaches to one-quarter of its
capital stock. MHFG’s legal reserve at March 31, 2014 was ¥1,199,215 million, of which ¥1,194,865 million was
included in capital surplus and ¥4,350 million in retained earnings.
In addition to the provision that requires an appropriation for the legal reserve, the Companies Act and the
Banking Act impose certain limitations on the amount available for dividends. Under the Companies Act,
MHFG’s maximum amount available for dividends, at March 31, 2014, was ¥1,412,282 million, based on theamount recorded in MHFG’s general books of account under Japanese GAAP. Under the Banking Act andrelated regulations, MHFG has to meet the minimum capital adequacy requirements. Distributions of retained
earnings, which are otherwise distributable to shareholders, are restricted in order to maintain the minimum
Common Equity Tier 1 capital ratio of 4.5% (3.5% in 2013 and 4.0% in 2014) for capital adequacy purposes
under the rules in Basel III. See Note 17 “Regulatory matters” for further discussion of regulatory capitalrequirements.
F-51

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Payment of dividends on shares of common stock is also subject to the prior payment of dividends on shares ofpreferred stock.
Dividends on preferred stock and common stock during the fiscal years ended March 31, 2012, 2013 and2014 were as follows:
Cash dividends (1)2012Class of stock

Eleventh series class XI preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thirteenth series class XIII preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Per share(in yen)In aggregate (2)(in millions of yen)

30
45
9

12,173
1,651
202,684

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

216,5082013

Cash dividends

Class of stock

Eleventh series class XI preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thirteenth series class XIII preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Per share(in yen)In aggregate (2)(in millions of yen)

20
30
6

7,451
1,101
144,170

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

152,7222014

Cash dividends

Class of stock

Eleventh series class XI preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thirteenth series class XIII preferred stock (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Per share(in yen)In aggregate (2)(in millions of yen)

20
15
6

6,717
550
144,998
152,265

Notes:(1) As MHFG commenced distributing an interim dividend from the fiscal year ended March 31, 2012, theamounts for the fiscal year include such interim dividends.
(2) Dividends paid on treasury stock are excluded.
(3) On July 11, 2013, MHFG acquired and cancelled all of the shares of the thirteenth series class XIII preferredstock. Consequently, the amount for the fiscal year does not include interim dividends.

F-52

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
16. Accumulated other comprehensive income (loss)
Changes in each component of AOCI for the fiscal years ended March 31, 2012, 2013 and 2014 are as follows:
2012

2013
2014
(in millions of yen)

AOCI, balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized net gains (losses) on available-for-sale securities:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized holding gains (losses) during year . . . . . . . . . . . . . .
Less: reclassification adjustments for losses (gains) included in
net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

104,972

245,588

777,997

514,128
87,215

628,636
427,913995,124
255,140

27,293(61,425)(126,992)

Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

114,508

366,488

128,148

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustments:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustments during year . . . . . . . .
Less: reclassification adjustments for losses (gains) included in
net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

628,636

995,124

1,123,272(165,028) (169,881)(6,779)87,460(82,420)75,986

1,926

1

—

(4,853)87,461

75,986

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (169,881) (82,420)
Pension liability adjustments:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . (244,128) (213,167)
Unrealized gains (losses) during year . . . . . . . . . . . . . . . . . . . . .
14,711
67,795
Less: reclassification adjustments for losses (gains) included in
net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16,250
10,665(6,434)

Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other comprehensive income (loss), net of tax attributable to
MHFG shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AOCI, balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-53

30,961(134,707)
131,360
4,386

78,460135,746(213,167) (134,707)

1,039

140,616

532,409339,880

245,588

777,997

1,117,877

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows the amounts reclassified out of AOCI into net income during the fiscal year ended
March 31, 2014.

Beforetax (1)Taxeffect (2)Amounts reclassified out
of AOCI into net
income:Unrealized net gains(losses) on
available-for-salesecurities . . . . . . . . 197,224 (70,228)
Foreign currencytranslation
adjustments . . . . . .
——Pension liability
adjustments . . . . . . (6,877) 2,442
Total . . . . . . . . . . . . . . . . . 190,347 (67,786)

Net of tax
beforeNet of tax
Net of tax
allocation to attributable to attributable tononcontrolling noncontrolling
MHFG
interests
interests (2)shareholders(in millions of yen)Affected line items in the
consolidated
statements of income:

126,9964

126,992———(4,435)(49)(4,386)

122,561(45)

122,606

Investment gains(losses)—net

Salaries and employee
benefits

Notes:(1) The amounts in the Before tax column are recorded in each account presented as “Affected line items in
the consolidated statements of income”.
(2) The amounts in the Tax effect column and Net of tax attributable to noncontrolling interests column arerecorded in Income tax expense and Net income attributable to noncontrolling interests in the consolidated
statements of income respectively.
17. Regulatory matters
Regulatory capital requirements
MHFG, MHBK, and MHTB are subject to regulatory capital requirements administered by the Financial
Services Agency in accordance with the provisions of the Banking Act and related regulations. Failure to meet
minimum capital requirements may initiate certain mandatory actions by regulators that, if undertaken, could
have a direct material effect on the MHFG Group’s consolidated financial condition and results of operations.
The capital adequacy guidelines applicable to Japanese banks and bank holding companies with international
operations supervised by the Financial Services Agency closely follow the risk-adjusted approach proposed by
the Bank for International Settlements (“BIS”) and are intended to further strengthen the soundness and stabilityof Japanese banks. Effective March 31, 2007, guidelines were implemented by the Financial Services Agency tocomply with the capital adequacy requirements set by BIS called Basel II. The framework of Basel II is based on
the following three pillars: minimum capital requirements; supervisory review; and market discipline.
In May 2011, the capital adequacy guidelines were revised by the Financial Services Agency to comply with the
package of measures to enhance the Basel II framework approved by the Basel Committee on Banking
Supervision in July 2009. The revised guidelines include the strengthening of rules governing trading bookcapital and the strengthening of treatment of certain securitizations under the first pillar. The revised guidelines
have been effective since the end of December 2011.
F-54

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In December 2010, the Basel Committee on Banking Supervision issued the Basel III rules text (later revised inJune 2011 and January 2013), which presents the details of global regulatory standards on bank capital adequacy
and liquidity agreed by the Governors and Heads of Supervision, which is the oversight body of the BaselCommittee on Banking Supervision, and endorsed by the G20 Leaders at the Seoul summit in November 2010.
The rules text sets out higher and better-quality capital, better risk coverage, the introduction of a leverage ratio
as a backstop to the risk-based requirement, measures to promote the build-up of capital that can be drawn downin periods of stress, and the introduction of two global liquidity standards. The Financial Services Agency’s
revisions to its capital adequacy guidelines became effective from March 31, 2013, which generally reflect rulesin the Basel III rules text that have been applied from January 1, 2013. While the three-pillar structure of Basel II
has been retained, Basel III includes various changes as described further below.
Under the first pillar, the capital ratio is calculated by dividing regulatory capital, or risk-based capital, by riskweighted assets. With respect to the calculation of risk-weighted assets, the MHFG Group adopts the advanced
internal ratings-based approach. Under such approach, balance sheet assets and off-balance sheet exposures,
calculated under Japanese GAAP, are assessed in terms of credit risk according to risk components such asprobability of default and loss given default, which are derived from the Group’s own internal credit experience.
In addition to credit risk, banks are required to measure and apply capital charges with respect to their market
risks. Market risk is defined as the risk of losses in on- and off-balance-sheet positions arising from movements
in market prices. Operational risk, which was introduced under Basel II with respect to regulatory capitalrequirements, is the risk of loss resulting from inadequate or failed internal processes, people and systems, orfrom external events. The Group adopts the advanced measurement approach for the measurement of operationalrisk equivalent by taking account of the following four elements: internal loss data; external loss data; scenario
analysis; and business environment and internal control factors. Under Basel III, the calculation method of riskweighted assets was revised, including modification to the treatment of counterparty credit risk, such as a capitalcharge for credit valuation adjustment risk.
With regard to risk-based capital, the guidelines based on Basel III set out higher and better-quality capital
standards compared to those under Basel II. The guidelines based on Basel III require a target minimum standard
capital adequacy ratio of 8%, Tier 1 capital ratio of 6% (phased in at 4.5% in 2013 and 5.5% in 2014) andCommon Equity Tier 1 capital ratio of 4.5% (phased in at 3.5% in 2013 and 4.0% in 2014), on both aconsolidated and non-consolidated basis for banks with international operations, such as MHBK and MHTB, oron a consolidated basis for bank holding companies with international operations, such as MHFG.
Risk-based capital, calculated from financial statements prepared under Japanese GAAP, is classified into thefollowing two tiers: Tier 1 capital; and Tier 2 capital. Tier 1 capital consists of Common Equity Tier 1 capitaland Additional Tier 1 capital. Common Equity Tier 1 capital generally consists of common stock, capital surplus,
retained earnings, accumulated other comprehensive income and other disclosed reserves and others less any
regulatory adjustments. Additional Tier 1 capital generally consists of instruments issued by a bank or its holding
company that meet the criteria for inclusion in Additional Tier 1 capital and others less any regulatory
adjustments. Tier 2 capital generally consists of instruments issued by a bank or its holding company such as
subordinated debt that meet the criteria for inclusion in Tier 2 capital, general reserve for possible losses onloans, equaling the sum of (i) the excess of the amount of qualified reserves over the amount of expected lossesand (ii) the amount of general reserves calculated based on the standardized approach, and others less any
regulatory adjustments.
The minimum requirement for Common Equity Tier 1 capital will be raised in phases from 3.5% of riskweighted assets in March 2013 to 4.5% when fully effective in March 2015. Thereafter, a capital conservationbuffer, to be met with Common Equity Tier 1 capital, is expected to be phased in beginning March 2016 at
0.625% until becoming fully effective in March 2019 at 2.5%, although the capital adequacy guidelines related to
F-55

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
the capital conservation buffer have not yet been published by the Financial Services Agency. Thus the Common
Equity Tier 1 capital requirement, including capital conservation buffer, is expected to be 7.0% beginning March
2019. In addition, subject to national discretion by the respective regulatory authorities, a countercyclical buffer
ranging from 0% to 2.5%, consisting of Common Equity Tier 1 capital or other fully loss absorbing capital,
would also be imposed on banking organizations through an extension of the capital conservation buffer when
the relevant national authority judges a period of excess credit growth to be leading to the build-up of systemwide risk. The countercyclical buffer for internationally active banks will be a weighted average of the buffers
deployed across all the jurisdictions to which it has credit exposures. Moreover, capital instruments that will nolonger qualify as Additional Tier 1 capital or Tier 2 capital under Basel III is being phased out beginning March2013 by increments of 10% until becoming fully effective in March 2022. The MHFG Group’s existing preferredstock and preferred securities (the amounts thereof included within Additional Tier 1 capital as of March 31,
2014 being ¥1,666.5 billion) and the Group’s existing subordinated debt issued before March 2013 (the amounts
thereof included within Tier 2 capital as of March 31, 2014 being ¥1,349.6 billion) are subject to the phase-out
arrangements.
In November 2011, the Financial Stability Board announced policy measures to address systemically importantfinancial institutions (“SIFIs”), which were endorsed by the G20 Leaders at the Cannes summit. The policy
measures include requirements for globally systemically important banks (“G-SIBs”) to have additional loss
absorption capacity tailored to the impact of their default, ranging from 1% to 2.5% of risk-weighted assets, to be
met with Common Equity Tier 1 capital, which would be in addition to the 7.0% Common Equity Tier 1 capitalrequirement (including capital conservation buffer). The additional loss absorbency requirements will initiallyapply to G-SIBs identified in November 2014. The requirements will be phased in starting in January 2016 withfull implementation by January 2019. Also in November 2011, the Financial Stability Board identified an initialgroup of G-SIFIs, namely 29 G-SIBs, including the MHFG Group, using a methodology developed by the BaselCommittee on Banking Supervision, and announced that the group of G-SIFIs will be updated annually andpublished by the Financial Stability Board each November. In November 2012 and November 2013, the list of
G-SIBs was updated and it showed the allocation to buckets corresponding to their required level of additionalloss absorbency. The Group was included in the lists and was allocated to the bucket that would require 1.0% ofadditional loss absorbency.
Regulatory adjustments are to be applied mainly to the calculation of Common Equity Tier 1 capital in the formof the deductions and prudential filters related to the following:•

Goodwill and other intangibles•

Deferred tax assets•

Deferred gains or losses on derivatives under hedge accounting that relates to the hedging of items thatare not fair valued on the balance sheet•

Shortfall of the stock of provisions to expected losses under the internal ratings-based approach•

Gain on sale related to securitization transactions•

Cumulative gains and losses due to changes in own credit risk on fair valued financial liabilities•

Defined benefit pension fund assets and liabilities•

Treasury stock•

Reciprocal cross holdings of capital of banking, financial and insurance entities•

Investments in the capital of banking, financial and insurance entities that are outside the scope of
regulatory consolidation
F-56

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Regulatory adjustments will be fully deducted in the calculation of Common Equity Tier 1 capital by March2018. The regulatory adjustments began at 20% of the required deductions in the calculation of Common Equity
Tier 1 capital in March 2014 and will be increased by 20% increments per year through March 2018 when theregulatory adjustments reach 100%. During this transition period, the remainder not deducted from capital willcontinue to be subject to existing national treatments.
The capital requirements and regulatory adjustments will be phased in over a transitional period as follows(italicized percentages indicate those still in transition periods):
March March March March March March March March March March
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

Minimum Common Equity
Tier 1 capital (Note) . . . . . . . . . . . .
Minimum Tier 1 capital (Note) . . . . . .
Minimum total capital (Note) . . . . . . .
Capital conservation buffer . . . . . . .
Phase out of recognition of capital
instruments that no longer
qualify as capital (Note) . . . . . . . . .
Phase-in of deductions from
capital (Note) . . . . . . . . . . . . . . . . .
Additional loss absorbency
requirements for G-SIBs . . . . . . .

3.5%
4.5%
8.0%
0.0%

4.0%
5.5%
8.0%
0.0%

4.5% 4.5% 4.5% 4.5%
6.0% 6.0% 6.0% 6.0%
8.0% 8.0% 8.0% 8.0%
0.0% 0.625% 1.25% 1.875%

4.5%
6.0%
8.0%
2.5%

4.5%
6.0%
8.0%
2.5%

4.5%
6.0%
8.0%
2.5%

4.5%
6.0%
8.0%
2.5%

90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0%

0.0%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%100.0%100.0%100.0%100.0%———

Additional loss absorption capacity tailored to theimpact of the entity’s default, ranging from 1% to2.5% of risk-weighted assets, to be met with
Common Equity Tier 1 capital

Note: While these measures are included in the revisions to capital adequacy guidelines that have been applied
from March 31, 2013 as published by the Financial Services Agency, capital adequacy guidelines related toother requirements under the Basel III rules, such as the capital conservation buffer, countercyclical buffer
and additional loss absorbency requirements for G-SIBs/G-SIFIs, have not yet been published.
Japanese banks are also required to comply with the supervisory review process (second pillar) and disclosure
requirements for market discipline (third pillar). Under the second pillar, banks are required to maintain adequate
capital to support all of the major risks in their business and are encouraged to develop and use better risk
management techniques in monitoring and managing such risks. Under the third pillar, banks are required toenhance disclosure, including disclosure of details of the capital adequacy ratio, the amount of each type of risk
and the method of calculation used so that the market may make more effective evaluations. Further, therevisions to the Financial Services Agency’s guidelines relating to the third pillar, which reflect the enhanced
disclosure requirements under Basel III and became effective on March 31, 2013, require banks to disclose,
among other things, the components of their regulatory capital and the main features of their regulatory capital
instruments in common templates.
If the capital adequacy ratio of a financial institution falls below the required level, the Financial Services
Agency may, depending upon the extent of capital deterioration, take certain corrective action, including
requiring the financial institution to submit an improvement plan to strengthen its capital base, reduce its total
assets, restrict its business operations or other actions that could have a material effect on its financial condition
and results of operations.

F-57

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital adequacy ratios of MHFG, MHBK, and MHTB as of March 31, 2013 and 2014 calculated in accordancewith Japanese GAAP and guidelines established by the Financial Services Agency are set forth in the following
table:
2013
2014
AmountRatio Amount Ratio(in billions of yen, except percentages)
Consolidated:
MHFG:
Common Equity Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHBK (Note):
Common Equity Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHTB:Common Equity Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-consolidated:
MHBK (Note):
Common Equity Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHTB:Common Equity Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,059
4,804

3.50
8.16

2,411
5,304

4.00
8.79

2,647
6,487

4.50
11.02

3,316
6,845

5.50
11.35

4,706
8,345

8.00
14.18

4,823
8,656

8.00
14.35

—
—

—
—

2,130
5,387

4.00
10.11

—
—

—
—

2,928
6,525

5.50
12.25

—
—

—
—

4,259
8,180

8.00
15.36

91
344

3.50
13.24

103
379

4.00
14.76

117
344

4.50
13.24

141
379

5.50
14.76

208
448

8.00
17.21

205
457

8.00
17.80

—
—

—
—

2,072
5,260

4.00
10.15

—
—

—
—

2,849
6,370

5.50
12.29

—
—

—
—

4,144
8,072

8.00
15.58

90
345

3.50
13.45

101
375

4.00
14.76

115
345

4.50
13.45

139
375

5.50
14.76

205
446

8.00
17.43

203
451

8.00
17.79

Note: The former MHBK and the former MHCB merged on July 1, 2013 and the former MHCB, the surviving company, changed its tradename to MHBK.

F-58

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital adequacy ratios of the former MHCB and the former MHBK as of March 31, 2013 are set forth in thefollowing table:
March 31, 2013
Consolidated
Non-consolidated
AmountRatio
AmountRatio(in billions of yen, except percentages)

The former MHCB (1):Common Equity Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The former MHBK (2) (3):Common Equity Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,292
3,195

3.50
8.65

1,143
2,993

3.50
9.16

1,661
4,071

4.50
11.03

1,470
3,980

4.50
12.18

2,953
5,130

8.00
13.89

2,613
5,008

8.00
15.33

810
2,061

3.50
8.90

793
2,009

3.50
8.86

1,041
2,344

4.50
10.13

1,020
2,252

4.50
9.93

1,850
3,259

8.00
14.08

1,813
3,163

8.00
13.95

Notes:(1) The distribution of all of the shares of MHSC to MHFG as a dividend in kind (¥424.4 billion) on April 1,2013 was deducted from Common Equity Tier 1 capital.
(2) The amounts and ratios were calculated in accordance with Basel III and are included for reference purpose
only because the former MHBK was subject to Basel II requirements as of March 31, 2013 as a financial
institution without overseas operations to which only domestic capital adequacy requirements applied.
(3) The distribution of all of the shares of MHSC to MHFG as a dividend in kind (¥125.7 billion) on April 1,2013 was deducted from Common Equity Tier 1 capital.
MHFG’s securities subsidiaries in Japan are also subject to the capital adequacy requirement under the Financial
Instruments and Exchange Act. Under this requirement, securities firms must maintain a minimum capital
adequacy ratio of 120% calculated as a percentage of capital accounts less certain assets, as determined inaccordance with Japanese GAAP, against amounts equivalent to market, counterparty, and basic risks. Specificguidelines are issued as a ministerial ordinance that details the definition of essential components of the capitalratios, including capital, disallowed assets and risks, and related measures. Failure to maintain a minimum capitalratio will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for regulatory reporting
and a capital ratio of less than 100% may lead to a temporary suspension of all or part of the business operations
and further, to the cancellation of the license to act as a securities broker and dealer.
Management believes, as of March 31, 2014, that MHFG, MHBK, MHTB, and their securities subsidiaries inJapan were in compliance with all capital adequacy requirements to which they were subject.
F-59

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Business improvement orders
In September 2013, the Financial Services Agency issued a business improvement order to MHBK in connection
with the transactions with anti-social elements in relation to a portion of certain joint loans. The business
improvement order requires it to carry out promptly the measures to review, improve and reinforce the current
structure of compliance and business administration thoroughly.
In December 2013, the Financial Services Agency issued business improvement orders to MHFG and MHBK
with regard to the above mentioned transactions. The order to MHFG requires it to implement measures
including clarification of where management responsibility lies based on the order and strengthening of its
management control system. The order to MHBK requires it to cease new credit transactions under the four-party
captive loan scheme for one month from January 20, 2014, as well as to implement the same measures as theorder to MHFG.
The MHFG Group has been and will be rigidly implementing its improvement plans in relation to this problem
and also work with utmost effort towards further improvement and reinforcement of its internal control systems.
18. Earnings per common share
Basic earnings per common share are computed by dividing net income by the weighted average number ofcommon shares outstanding during the fiscal year. Diluted earnings per common share reflect the assumed
conversion to common shares of all convertible securities such as convertible preferred stock.
The following table sets forth the computation of basic and diluted earnings per common share for the fiscal
years ended March 31, 2012, 2013 and 2014:
2012

2013
(in millions of yen)

2014

Net income:Net income attributable to MHFG shareholders . . . . . . . . . .
Less: Net income attributable to preferred shareholders . . . .

656,389
8,672

875,4128,221

498,484
6,745

Net income attributable to common shareholders . . . . . . . . .

647,717867,191

491,739

Effect of dilutive securities:
Convertible preferred stock . . . . . . . . . . . . . . . . . . . . . .

7,571

7,121

6,437

Net income attributable to common shareholders after
assumed conversions . . . . . . . . . . . . . . . . . . . . . . . . .

655,288874,312498,176

2012

2013(thousands of shares)

2014

Shares:
Weighted average common shares outstanding . . . . . . . . . .

23,073,544

24,053,282

24,189,670

Effect of dilutive securities:
Convertible preferred stock (Note) . . . . . . . . . . . . . . . . . .
Stock compensation-type stock options . . . . . . . . . . . .

1,384,367
11,628

1,291,854
20,093

1,164,941
16,641

Weighted average common shares after assumed
conversions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24,469,539

25,365,229

25,371,252

F-60

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2012

2013
(in yen)2014

Amounts per common share:
Basic net income per common share . . . . . . . . . . . . . . . . . . .

28.07

36.05

20.33

Diluted net income per common share . . . . . . . . . . . . . . . . .

26.78

34.47

19.64

Note: The number of the dilutive common shares is based on the applicable conversion prices.
19. Income taxes
The following table presents the components of Income tax expense for the fiscal years ended March 31, 2012,2013 and 2014:
2012

2013
2014
(in millions of yen)

Current:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22,10332,714

37,101
10,754

92,81442,919Total current tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54,81747,855

135,733

Deferred:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(36,777) (40,021)(4,162) (3,810)

94,911(4,536)

Total deferred tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(40,939) (43,831)

90,375

13,878226,108

Total income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,024

The preceding table does not reflect the tax effects of items recorded directly in Equity for the fiscal years ended
March 31, 2012, 2013 and 2014. The detailed amounts recorded directly in Equity are as follows:
2012

2013
2014
(in millions of yen)

Unrealized net gains (losses) on available-for-sale securities:
Unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,925 235,274 161,269
Less: reclassification adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,249 (33,988) (70,228)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48,174201,286

91,041

Pension liability adjustments:
Unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: reclassification adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,367
8,992

34,171
5,913

71,646
2,442

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,35940,08474,088

Total tax effect before allocation to noncontrolling interests . . . . . . . . . . . . . . . . . .

59,533

241,370

165,129

F-61

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows a reconciliation of Income tax expense at the effective statutory tax rate to the actual
income tax expense for the fiscal years ended March 31, 2012, 2013 and 2014:
2012
2013
2014
(in millions of yen, except tax rates)

Income before income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

662,835
40.69%

885,180 726,343
38.01% 38.01%

Income tax calculated at the statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . 269,708
336,457 276,083
Income not subject to tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(18,295)(18,320) (22,354)
Expenses not deductible for tax purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,469
1,348
1,550
Tax rate differentials of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4,142)(10,535) (1,611)
Change in valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (371,271) (1,352,597) (50,933)
Change in undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . .
(7,118)
12,233932
Change in net operating loss carryforwards resulting from intercompany
capital transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
162
227
235
Expiration of net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . .
33,576 1,026,439
6,313
Effect of enacted change in tax rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,011(1)—15,786(2)Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,778
8,772
107
Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,8784,024

226,108

Notes:(1) On November 30, 2011, the National Diet of Japan approved two bills affecting the statutory tax rates of
MHFG and its domestic subsidiaries. As a result, the statutory tax rate concerning MHFG’s tax returns forthe fiscal years ended March 31, 2013 and 2014 has been reduced to 38.01% from the previous rate of
40.69%. Also, the rates for the fiscal year ending March 31, 2015 and for the fiscal years ending March 31,
2016 and thereafter will be 38.01% and 35.64%, respectively. The decrease of the Group’s balance of net
deferred tax assets, reflecting such tax rate reductions, was recognized in Income tax expense in the fiscal
year ended March 31, 2012.
(2) On March 20, 2014, the National Diet of Japan approved a bill affecting the statutory tax rates of MHFG
and its domestic subsidiaries. As a result, the statutory tax rate concerning MHFG’s tax returns for the
fiscal year ending March 31, 2015 will be reduced to 35.64% from the previous rate of 38.01%. The
decrease of the Group’s balance of net deferred tax assets, reflecting such tax rate reductions, wasrecognized in Income tax expense in the fiscal year ended March 31, 2014.

F-62

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The components of net deferred tax assets at March 31, 2013 and 2014 are as follows:
2013
2014
(in millions of yen)

Deferred tax assets:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

889,305
337,453——
450,016
264,661

724,038
266,595
29,002
19,842448,926
204,304

Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,941,435 1,692,707(584,665) (443,847)

Deferred tax assets, net of valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,356,770

1,248,860

Deferred tax liabilities:
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid pension cost and accrued pension liabilities . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

567,608
39,937
11,04012,30435,391
11,101
51,913

659,448
132,738
11,972
11,263——61,500

Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

729,294

876,921

Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

627,476

371,939

Deferred tax assets and deferred tax liabilities within the same tax jurisdiction have been netted for presentation
purposes in the consolidated balance sheets.
In assessing the realizability of deferred tax assets, management considered whether it was more likely than notthat some portion or all of the deferred tax assets would not be realized. The ultimate realization of deferred tax
assets is dependent upon the generation of future taxable income during the periods in which those temporary
differences become deductible. Management considered the scheduled reversal of deferred tax liabilities,
projected future taxable income, and tax planning strategies available in making this assessment. Based upon thelevel of historical taxable income and projections for future taxable income over the periods in which thedeferred tax assets would be deductible, management believed it was more likely than not that the MHFG Groupwould realize the benefits of these deductible differences, net of the existing valuation allowances at March 31,
2013 and 2014.

F-63

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At March 31, 2014, the MHFG Group had net operating loss carryforwards totaling ¥1,414 billion. These
carryforwards are scheduled to expire as follows:
Net operating loss
carryforwards(in billions of yen)

Fiscal year ending March 31:
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—
—
—
865
8
541

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,414

Included in net operating loss carryforwards in the above table are MHFG’s carryforwards of ¥868 billion
resulting mainly from intercompany capital transactions. The tax effect of these carryforwards is offset by a fullvaluation allowance.
The total amount of unrecognized tax benefits including ¥802 million, ¥563 million and ¥699 million of interest
and penalties was ¥2,160 million, ¥1,454 million and ¥1,691 million at March 31, 2012, 2013 and 2014,
respectively, which would, if recognized, affect the Group’s effective tax rate. The Group classifies interest andpenalties accrued relating to unrecognized tax benefits as Income tax expense.
The following table is a roll-forward of unrecognized tax benefits for the fiscal years ended March 31, 2012,2013 and 2014:
2012
2013
2014
(in millions of yen)

Total unrecognized tax benefits at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . .

1,829

2,160

1,454

Gross amount of increases (decreases) related to positions taken during prioryears . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross amount of increases related to positions taken during the current year . . . . . . .
Amount of decreases related to settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

362
244
(227)
(48)

(471)
29
(559)
295

(6)
100
—
143

Total unrecognized tax benefits at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,160

1,454

1,691

The MHFG Group is currently subject to ongoing tax audits in some jurisdictions. The oldest years open to tax
audits in Japan, the United States and the United Kingdom are 2006, 2002 and 2002, respectively. The MHFG
Group does not anticipate that increases or decreases of unrecognized tax benefits within the next twelve months
would have a material effect on its consolidated results of operations or financial condition.
20. Pension and other employee benefit plans
Severance indemnities and pension plans
MHFG and certain subsidiaries sponsor and offer their employees other than directors and corporate auditors,
contributory and non-contributory defined benefit plans. Under these plans, employees are provided with lumpF-64

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
sum cash payments upon leaving the company. The amount of benefits under each plan is principally determinedbased on the position, the length of service and the reason for retirement. When employees meet certain
conditions including the length of service, they may opt to receive annuity payments instead of lump-sum
payments at retirement. MHFG and certain subsidiaries also offer special termination benefits to former
employees whose contributions during their careers were deemed meritorious and to those with particular
circumstances.
Certain foreign offices and subsidiaries have defined contribution plans and/or defined benefit plans, of which
disclosures are combined with those for domestic benefit plans, as they are not significant.
MHFG and certain subsidiaries have several defined contribution plans. The costs recognized in respect ofcontributions to the plans for the fiscal years ended March 31, 2012, 2013 and 2014 were ¥2,129 million,¥1,968 million and ¥2,487 million, respectively.
Pension plans are not fully integrated among subsidiaries of MHFG and plan assets are managed separately byeach plan.
Net periodic benefit cost and funded status
Net periodic benefit cost of the severance indemnities and pension plans for the fiscal years ended March 31,
2012, 2013 and 2014 includes the following components:
2012

2013
2014
(in millions of yen)

Service cost-benefits earned during the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . 27,734 30,422 33,429
Interest costs on projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,267 23,186 20,341
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,234) (32,237) (37,047)
Amortization of prior service benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(318)
(319)
(195)
Amortization of net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,595 16,936
7,039
Special termination benefits (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,115
5,454
5,429
Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

63,15943,442

28,996

Note: The amount for the fiscal year ended March 31, 2012 includes special termination benefits of¥9,828 million pertaining to MHSC’s voluntary retirement scheme.
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) before-tax
for the fiscal years ended March 31, 2013 and 2014 were summarized as follows:
2013
2014
(in millions of yen)

Net actuarial gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior service benefit (cost) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

103,683 204,506
16,936
7,039(1,782)
—
(319)
(195)

Total recognized in other comprehensive income (loss) before-tax . . . . . . . . . . . . . . . . . . . . .

118,518

F-65

211,350MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of March 31, 2014, the amounts in Accumulated other comprehensive income (loss), which will be amortizedas prior service benefit and actuarial loss over the next fiscal year, are estimated to be ¥195 million and¥137 million, respectively.
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost are as follows:
2012

2013

2014

Weighted-average assumptions used to determine benefit obligations at
fiscal year end:
Discount rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.73%
1.44%
0.96%
Rates of increase in future compensation levels . . . . . . . . . . . . . . . . . . . 2.33-6.46% 2.31-6.57% 2.00-4.80%
Weighted-average assumptions used to determine net periodic benefit cost
during the year:
Discount rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.83%
1.73%
1.44%
Rates of increase in future compensation levels . . . . . . . . . . . . . . . . . . . 2.28-6.15% 2.33-6.46% 2.31-6.57%
Expected rates of return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . .
2.27%
2.40%
2.42%
In estimating the discount rates, the MHFG Group uses interest rates on high-quality fixed-income governmentand corporate bonds that received a rating of AA(Aa) or higher from rating agencies. The durations of suchbonds closely match those of the benefit obligations. During the fiscal year ended March 31, 2014, the Group haschanged the calculation method of the discount rates and has revised the benefit formula for some major plans torefine the estimate of benefit obligations. As a result of these refinements, total benefit obligations of the Group,at March 31, 2014, decreased by ¥110,744 million. Assumed discount rates are reevaluated at each measurement
date. The expected rate of return for each asset category is based primarily on various aspects of the long-term
prospects for the economy that include historical performance and the market environment.

F-66

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table sets forth the combined funded status and amounts recognized in the accompanying
consolidated balance sheets at March 31, 2013 and 2014 for the plans of MHFG and its subsidiaries:
2013
2014
(in millions of yen)

Change in benefit obligation:
Benefit obligation at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,343,714 1,399,123
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30,42233,429Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,186
20,341
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,184
1,181
Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,782—
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63,140(70,214)
Foreign exchange translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,209
4,854
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(49,593)(49,905)
Lump-sum payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(16,921)(18,119)
Benefit obligation at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,399,123

1,320,690

Change in plan assets:
Fair value of plan assets at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . 1,323,163 1,527,744
Actual return (negative return) on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
199,341
171,970
Foreign exchange translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,783
4,128
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51,86650,936
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,184
1,181
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(49,593)(49,905)
Fair value of plan assets at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,527,744

1,706,054

Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

128,621385,364

Amounts recognized in the consolidated balance sheets consist of:Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

153,414(24,793)403,654(18,290)

Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

128,621385,364

Amounts recognized in Accumulated other comprehensive income (loss) before-tax
consist of:Prior service benefit (cost) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net actuarial gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(440)(236,359)(635)(24,814)

Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(236,799)(25,449)

Note: The aggregated accumulated benefit obligations of these plans were ¥1,364,786 million and¥1,319,771 million, respectively, as of March 31, 2013 and 2014. The defined benefit plans generally
employ a multi-variable and non-linear formula based upon rank and years of service. Employees withservice in excess of one year are qualified to receive lump-sum severance indemnities.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows the projected benefit obligations and the fair value of plan assets for the plans of
MHFG and its subsidiaries with projected benefit obligations in excess of plan assets, and the accumulated
benefit obligations and the fair value of plan assets for the plans with accumulated benefit obligations in excess
of plan assets at March 31, 2013 and 2014:
2013
2014
(in millions of yen)Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

95,78970,69040,50921,89891,21070,69039,59021,898

Note: The plans with projected benefit obligations in excess of plan assets include those with accumulated
benefit obligations in excess of plan assets.
Investment policies and asset allocation
In managing plan assets, the MHFG Group determines the appropriate levels of risk that the Group can assume
under the given circumstances to maximize the investment returns from a long-term perspective while ensuringthat the sufficient funds will be available to plan participants and beneficiaries. Generally, the investment returns
are relative to the risks involved. In considering the maximum levels of risk that the MHFG Group can assume, it
primarily considers the following factors; the employers’ burden of maintaining the benefit plans based on thedesign of the plans and future plan contributions, the age distribution of the plan participants and beneficiaries,
the financial conditions of the employers, and the employers’ ability to absorb future variability in plan
premiums. The long-term asset allocation to each asset category such as Japanese equity securities, Japanese debt
securities, foreign equity securities and foreign debt securities is determined based upon the optimal portfolio,
which is estimated to yield the maximum return within the range of acceptable level of risk. Additionally, theasset allocation is reviewed whenever there are large fluctuations in pension plan liabilities caused bymodifications of pension plans, or there are changes in the market environment. When selecting an investment ineach asset category, the MHFG Group takes into consideration credit standing of an investee, concentration of
credit risk to a certain investee, liquidity of a financial instrument, etc. The investments in each asset category arefurther diversified across funds, strategies, sectors, etc. There is no significant investment in a single investee
except Japanese government bonds.
Certain subsidiaries of MHFG established employee retirement benefit trusts and transferred their assets to thetrusts as plan assets. These assets are separated from the employer’s proprietary assets for the payment to theplan beneficiaries. The assets held in these trusts are primarily Japanese equity securities and have been entrusted
directly to qualified trustees including trust banks.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
MHFG and certain subsidiaries’ target allocation for the plan assets excluding those of the employee retirement
benefit trusts at March 31, 2014 is as follows:
Asset category

Asset ratio

Japanese equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japanese debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General account of life insurance companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.00%
44.00%
26.00%
10.00%
14.00%
1.00%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100.00%Note: General account of life insurance companies is a contract with life insurance companies which guarantees
payments of principal and predetermined interest rate.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair value of plan assets
The following table presents the fair value of plan assets of MHFG and its subsidiaries at March 31, 2013 and2014, by asset class. For the detailed information on fair value measurements, including descriptions of Level 1,
2 and 3 of the fair value hierarchy and the valuation methodologies, see Note 28 “Fair value”.
Level 1

Japanese equity securities:
Common stocks (1) . . . . . . . . . . . . . . . . .
Pooled funds (2) . . . . . . . . . . . . . . . . . . . .
Japanese debt securities:
Government bonds . . . . . . . . . . . . . . . . .
Pooled funds (2) . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign equity securities:
Common stocks . . . . . . . . . . . . . . . . . . .
Pooled funds (2) . . . . . . . . . . . . . . . . . . . .
Foreign debt securities:
Government bonds . . . . . . . . . . . . . . . . .
Pooled funds (2) . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General account of life insurancecompanies (3) . . . . . . . . . . . . . . . . . . . . . . . .
Hedge funds . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets at fair value . . . . . . . . . . . . . . . . .

2013
Level 2 Level 3

Total
Level 1(in billions of yen)

2014
Level 2 Level 3

Total

716
—

—
86

—
—

716
86

782
5

—
51

—
—

782
56

179
—
—

—
46
7

—
—
—

179
46
7

229
—
—

—
68
24

—
—
—

229
68
24

54
—

2
92

—
—

56
92

96
15

3
139

—
—

99
154

71
—
—

4
46
23

—
—
—

75
46
23

63
—
—

6
9
15

—
—
—

69
9
15

—
111
—
—
—
1
92(4) (2)(5) —

111
1
90

—
111
—
—
—
2
91(4) (3) (5) —

111
2
88

1,112

415

1

1,528

1,281

423

2

1,706

Notes:(1) This class includes equity securities held in the employee retirement benefit trusts of ¥681 billion and ¥782
billion at March 31, 2013 and 2014, respectively, which are well-diversified across industries.
(2) These classes primarily include pension investment fund trusts. Investments in these classes are generally
measured at their net asset values per share and can be redeemable within a short-term period upon request.
(3) Investments in this class are measured at conversion value.
(4) Amounts primarily include cash and short-term assets carried at fair value.
(5) Amounts primarily include foreign exchange contracts carried at fair value.
Amounts of actual returns on and purchases and sales of Level 3 assets during the fiscal years ended March 31,
2013 and 2014 were not significant.
Contributions
A contribution of approximately ¥49 billion is expected to be paid to the pension plans in the fiscal year ending
March 31, 2015, based on the current funded status and expected asset return assumptions.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Estimated future benefit payments
The following table presents forecasted benefit payments including the effect of expected future service for the
fiscal years indicated:(in millions of yen)

Fiscal year ending March 31:
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020-2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

65,57068,18370,08371,55872,543355,295

21. Stock-based compensation
Concurrently with the abolishment of, and as an alternative to the retirement allowances program for directors
and executive officers of MHFG, the former MHBK, the former MHCB, and MHTB, the MHFG Group
introduced stock compensation-type stock options, in the form of stock acquisition rights, for directors(excluding the outside directors) and executive officers of the respective companies (hereinafter referred tocollectively as the “Directors”) in June 2008. The Group also introduced similar stock compensation-type stock
options for MHSC’s Directors in June 2009. The Group maintained three types of stock-based compensationplans for Directors of MHFG, the former MHBK and the former MHCB (“MHFG Stock Plan”), for those of
MHTB, and for those of MHSC. These three plans were integrated into MHFG Stock Plan during the fiscal year
ended March 31, 2012, as MHTB and MHSC became MHFG’s wholly-owned subsidiaries and the stocks ofthese entities were delisted.
MHFG Stock Plan
In this plan, 1,000 shares of MHFG common stock shall be issued or transferred upon exercise of each of thestock acquisition rights. The amount to be paid upon exercise shall be 1 yen per share. The contractual term of
the stock acquisition rights is 20 years. A holder may exercise the stock acquisition rights only after the date on
which such holder loses the status as a Director of MHFG, MHBK, MHTB or MHSC.
The following is a roll-forward of MHFG Stock Plan for the fiscal year ended March 31, 2014:
Weighted-averageremaining
contractual term(in years)

Aggregate
intrinsic value(in millions of yen)

1

18.47

4,576

1

16.31

128

Number ofshares

Weighted-average
exercise price(in yen)

Outstanding at beginning of fiscal year . . . . .
Granted during fiscal year . . . . . . . . . . . . . . .
Exercised during fiscal year . . . . . . . . . . . . . .

23,863,000
7,932,000
9,252,000

1
1
1Outstanding at end of fiscal year . . . . . . . . . .

22,543,000

Exercisable at end of fiscal year . . . . . . . . . .

630,000

There were no non-vested stock options remaining as of March 31, 2014.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the assumptions used in the Black-Scholes option pricing model to estimate the fairvalue of stock acquisition rights on the date of grant. The risk-free interest rate is based on the Japanese
government bonds yield curve for the expected remaining term in effect at the date of grant. The expectedvolatility is based on the historical trading data of MHFG common stock. The expected remaining term is basedon the average service period of Directors of MHFG, MHBK, MHTB and MHSC, which represents the period oftime that stock acquisition rights granted are expected to be outstanding. The expected dividend yield is based on
the dividend rate of MHFG common stock at the date of grant.
For the stock acquisition rights granted
during the fiscal years ended March 31,
2013
2014

Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected remaining term (in years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.10%
29.30%
2.42
4.69%

0.08%
28.16%
2.46
3.11%

The weighted-average grant-date fair value of stock acquisition rights granted during the fiscal years ended
March 31, 2012, 2013 and 2014 was ¥91,840, ¥113,250 and ¥192,610, respectively.
The compensation cost related to this plan recognized in income was ¥788 million, ¥1,333 million and¥1,527 million during the fiscal years ended March 31, 2012, 2013 and 2014, respectively.
22. Derivative financial instruments
The MHFG Group enter into derivative financial instruments in response to the diverse needs of customers, tocontrol the risk related to the assets and liabilities of the MHFG Group, as part of its asset and liability
management, and for proprietary trading purposes. The MHFG Group is exposed primarily to market risk
associated with interest rate, commodity, foreign currency, and equity products. Market risk arises from changes
in market prices or indices, interest rates and foreign exchange rates that may result in an adverse change in themarket value of the financial instrument or an increase in its funding costs. Exposure to market risk is managed
by imposing position limits and monitoring procedures and by initiating hedging transactions. In addition tomarket risk, the MHFG Group is exposed to credit risk associated with counterparty default or nonperformancein respect of transactions. Credit risk arises when a counterparty fails to perform according to the terms andconditions of the contract and the value of the underlying collateral held, if applicable, is not sufficient to recover
resulting losses. The exposure to credit risk is measured by the fair value of all derivatives in a gain position andits potential increase at the balance sheet dates. The exposure to credit risk is managed by entering into legally
enforceable master netting agreements to mitigate the overall counterparty credit risk, requiring underlying
collateral and guarantees based on an individual credit analysis of each obligor and evaluating the credit featuresof each instrument. In addition, credit approvals, limits and monitoring procedures are also imposed.

F-72

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Notional amount and fair value of derivative contracts
The following table summarizes the notional and fair value amounts of derivative instruments outstanding as ofMarch 31, 2013 and 2014. The fair values of derivatives are presented on a gross basis and not offset against theright to reclaim cash collateral or the obligation to return cash collateral under master netting agreements in the
consolidated balance sheets, or the table below.

2013

Notional amount (1)Fair value
Derivative receivables (2)Derivative payables (2)Designated Not designated Designated Not designatedas hedges
as hedges
as hedges
as hedges(in billions of yen)Interest rate contracts . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . .
Credit-related contracts . . . . . . . . . . . . .
Other contracts . . . . . . . . . . . . . . . . . . . .

854,698
118,708
3,419
5,266
522

—
—
—
—
—

10,350
3,099
182
59
38

—
10
—
—
—

10,018
2,973
177
44
27

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

982,613—

13,72810

13,2392014

Notional amount (1)Fair value
Derivative receivables (2)Derivative payables (2)Designated Not designated Designated Not designatedas hedges
as hedges
as hedges
as hedges(in billions of yen)Interest rate contracts . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . .
Credit-related contracts . . . . . . . . . . . . .
Other contracts . . . . . . . . . . . . . . . . . . . .

971,939
119,864
2,979
4,662
463

—
—
1
—
—

8,064
2,354
196
49
23

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,099,907

1

10,686

—
2
—
—
—
2

7,895
2,349
178
34
17
10,473

Notes:(1) Notional amount represents the sum of gross long and gross short third-party contracts.
(2) Derivative receivables and payables are recorded in Trading account assets and Trading account liabilities,
respectively.
The MHFG Group provided and/or accepted cash collateral for derivative transactions under master netting
agreements. The cash collateral, not offset against derivative positions, was included in Other assets and Otherliabilities, respectively, of which the amounts were ¥742 billion and ¥503 billion at March 31, 2013, and ¥466
billion and ¥433 billion at March 31, 2014, respectively.
Hedging activities
In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk
associated with the exposure being hedged. Each derivative must be designated as a hedge, with documentationof the risk management objective and strategy, including identification of the hedging instrument, the hedged
item and the risk exposure, and how effectiveness is to be assessed prospectively and retrospectively. The extent
to which a hedging instrument is effective at achieving offsetting changes in fair value or cash flows must be
assessed at least quarterly. Any ineffectiveness must be reported immediately in earnings. The MHFG Group’s
hedging activities include fair value and net investment hedges.
F-73

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair value hedges
The MHFG Group primarily uses option and forward contracts to modify exposure to changes in fair value ofavailable-for-sale securities. For qualifying fair value hedges, all changes in the fair value of the derivative andthe corresponding hedged item relating to the risk being hedged are recognized in earnings in Investment gains(losses)—net. The change in fair value of the portion of the hedging instruments excluded from the assessment ofhedge effectiveness is recorded in Trading account gains (losses)—net. No ineffectiveness exists because the
MHFG Group chooses to exclude changes in the option’s time value and differences between the spot and theforward prices from the effectiveness test. If the hedge relationship is terminated, the fair value adjustment to thehedged item continues to be reported as part of the basis of the item and is amortized to earnings as a yield
adjustment.
The following table summarizes gains and losses information related to fair value hedges for the fiscal years
ended March 31, 2012, 2013 and 2014:2012

Derivatives

Gains (losses) recorded in income
Net gain (loss) excluded
HedgedHedge
from assessment of
items
ineffectivenesseffectiveness(in millions of yen)Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . .

(214)
(285)

150
278

—
—

(64)
(7)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(499)

428

—

(71)

2013

Derivatives

Gains (losses) recorded in income
Net gain (loss) excluded
HedgedHedge
from assessment of
items
ineffectivenesseffectiveness(in millions of yen)Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . .

44
352

(81)
(394)

—
—

(37)
(42)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

396

(475)

—

(79)

2014

Derivatives

Gains (losses) recorded in income
Net gain (loss) excluded
HedgedHedge
from assessment of
items
ineffectivenesseffectiveness(in millions of yen)

Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . .

801(1,112)—(311)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

801(1,112)—(311)

Net investment hedges
The MHFG Group uses forward foreign exchange contracts and foreign currency-denominated debt instruments toprotect the value of net investments in non-Japanese subsidiaries from foreign currency exposure. Under net
investment hedges, both derivatives and nonderivative financial instruments qualify as hedging instruments. The
foreign currency-denominated debt instruments qualifying as hedging instruments include deposits and long-term
debt, of which the carrying amounts of the portion designated as net investment hedges are included within therespective items in the consolidated balance sheets as well as relevant accompanying notes. For net investment
hedges, the changes in the fair value of a hedging derivative instrument or nonderivative hedging financial
F-74

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
instrument is recorded in Foreign currency translation adjustments within Accumulated other comprehensive
income (loss), provided that the hedging instrument is designated and is effective as a hedge of the net investment.
The change in fair value of the ineffective portion is recorded in Foreign exchange gains (losses)—net in earnings.
No amount is excluded from the assessment of hedge effectiveness of net investment hedges.
The following table summarizes gains and losses information related to net investment hedges for the fiscal years
ended March 31, 2012, 2013 and 2014:
Gains (losses) recorded in income and other comprehensive income (“OCI”)
2012
2013
2014
Ineffective portion
Ineffective portion
Ineffective portion
Effective portion
recorded in
Effective portion
recorded in
Effective portion
recorded inrecorded in OCI
incomerecorded in OCI
incomerecorded in OCI
income(in millions of yen)

Financial instruments
hedging foreignexchange risk . . . .

8,024

1,666

(65,851)(2,908)(102,150)(7,316)

Total . . . . . . . . . . . . .

8,024

1,666

(65,851)(2,908)(102,150)(7,316)

Note: Related to the effective portion of net investment hedges, Accumulated other comprehensive income of¥1,893 million and ¥13,858 million were reclassified to earnings for the fiscal years ended March 31, 2012
and 2013 respectively. No amount related to the effective portion of net investment hedges was reclassified
from Accumulated other comprehensive income (loss) to earnings for the fiscal year ended March 31,
2014.
Derivative instruments not designated or qualifying as hedges
The MHFG Group enters into the following derivative transactions that do not qualify for hedge accounting witha view to implementing risk management hedging strategies: (1) interest-rate swap transactions for the purposeof hedging interest-rate risks in deposits, loans etc., (2) currency swap transactions for the purpose of hedging theforeign exchange risk of these assets, and (3) credit derivatives for the purpose of hedging the credit risk in loans,
RMBS, CMBS, CLO and other similar assets. Such derivatives are accounted for as trading positions. Thechanges in fair value of these instruments are primarily recorded in Trading account gains (losses)—net, eventhough they are used to mitigate or transform the risk of exposures arising from banking activities. The net gain
(loss) resulting from changes in the fair value of certain credit derivatives where the Group purchases protection
to mitigate its credit risk exposure, related to its corporate loan portfolio, is recorded in Other noninterest income(expenses).

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes gains and losses on derivatives not designated or qualifying as hedges during the
fiscal years ended March 31, 2012, 2013 and 2014:
Gains (losses) recorded in income
2012
2013
2014
(in millions of yen)Interest rate contracts (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261,632 219,422
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (146,258) (91,300)
Equity-related contracts (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7,143) (59,421)
Credit-related contracts (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5,575) (6,877)
Other contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
283(2,378)(79,562)(13,167)(41,296)(7,761)(6,857)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(148,643)

102,939

59,446

Notes:(1) The net gain (loss) excluded from the assessment of the effectiveness of fair value hedges is not included in
the above table.
(2) Amounts include the net loss of ¥3,391 million, ¥6,703 million and ¥8,660 million on the credit derivatives
hedging the credit risk of loans during the fiscal years ended March 31, 2012, 2013 and 2014, respectively.
Credit derivatives
A credit derivative is a bilateral contract between a seller and a buyer of protection against the credit risk of aparticular entity. Credit derivatives generally require that the seller of credit protection make payments to thebuyer upon the occurrence of predefined credit events, which include bankruptcy, dissolution or insolvency of
the referenced entity. The MHFG Group either purchases or writes protection on either a single name or aportfolio of reference credits. The Group enters into credit derivatives to help mitigate credit risk in its corporateloan portfolio and other cash positions, to take proprietary trading positions, and to facilitate client transactions.
The notional amount of credit derivatives represents the maximum potential amount of future payments the seller
could be required to make. If the predefined credit event occurs, the seller will generally have a right to collect on
the underlying reference credit and any related cash flows, while being liable for the full notional amount ofcredit protection to the buyer. The Group manages credit risk associated with written protection by purchasingprotection with identical or similar underlying reference credits, which substantially offsets its exposure. Thus,
the notional amount is not necessarily a reliable indicator of the Group’s actual loss exposure.
The following table summarizes the notional and fair value amounts of credit derivatives at March 31, 2013 and 2014:
2013
Notional amount2014
Fair value Notional amount(in billions of yen)

Fair value

Credit protection written:
Investment grade . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-investment grade . . . . . . . . . . . . . . . . . . . . . . . .

1,810
652

1
1

1,723
479

21
3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,462

2

2,202

24

Credit protection purchased . . . . . . . . . . . . . . . . . . . . . . . .

2,870

13

2,548

(9)

Note: The rating scale is based upon either the external ratings or the internal ratings of the underlying reference
credit. The lowest investment grade rating is considered to be BBB- or the corresponding internal rating,while anything below or unrated is considered to be non-investment grade. Non-investment grade credit
derivatives primarily consist of unrated credit default swap indices such as CDX and iTraxx.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows the maximum potential amount of future payments for credit protection written by
expiration period at March 31, 2013 and 2014:
Maximum payout/Notional amount
2013
2014
(in billions of yen)

One year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After one year through five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

620
1,720
122

325
1,791
86

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,462

2,202

Note: The maximum potential amount of future payments is the aggregate notional amount of the credit
derivatives where the Group wrote the credit protection, and it has not been reduced by the Group’s rightof collection over the underlying assets and the related cash flows, nor netted against that of credit
protection purchased.
Credit-related contingent features
Certain of the MHFG Group’s derivative instruments contain provisions that require the Group’s debt tomaintain an investment grade credit rating from the major credit rating agencies. If the Group’s debt credit ratingwere to fall below investment grade, the counterparties to the derivative instruments could request immediatepayment or demand immediate and ongoing full overnight collateralization on derivative instruments which are
in net liability positions for the Group. The aggregate fair value of all derivative instruments with such creditrisk-related contingent features in net liability positions on March 31, 2013 and 2014 was ¥1,022 billion and¥687 billion, respectively. As the Group has provided ¥1,029 billion and ¥614 billion as collateral to thecounterparties in the normal course of its business on March 31, 2013 and 2014, respectively, if the contingent
features described above were triggered on March 31, 2013 and 2014, there was no amount that the Group would
be required to post as collateral or settle immediately on March 31, 2013, while the amount required to be posted
as collateral or settled immediately would be ¥73 billion on March 31, 2014.
23. Commitments and contingencies
Obligations under guarantees
The MHFG Group provides guarantees or indemnifications to counterparties to enhance their credit standing andenable them to complete a variety of business transactions. A guarantee represents an obligation to makepayments to third parties if the counterparty fails to fulfill its obligation under a borrowing arrangement or othercontractual obligation.
The types of guarantees under ASC 460, “Guarantees” (“ASC 460”) provided by the MHFG Group are described
below.
Performance guarantees
Performance guarantees are issued to guarantee customers’ performance under contractual arrangements such asa tender bid on a construction project or the completion of a construction project.
Guarantees on loans
Guarantees on loans include obligations to guarantee the customers’ borrowing contracts. The MHFG Group isrequired to make payments to the guaranteed parties in the event that customers fail to fulfill obligations under
the contracts.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Guarantees on securities
Guarantees on securities include obligations to guarantee securities, such as bonds issued by customers.
Other guarantees
Other guarantees include obligations to guarantee customers’ payments, such as tax payments.
Guarantees for the repayment of trust principal
The MHFG Group provides certain trust products with guarantees for the repayment of trust principal, e.g., loan
trusts and certain jointly operated designated money trusts. Pursuant to Japanese trust-related laws, trustees areprohibited from compensating beneficiaries for any loss in the beneficial interests in each trust. However, under aspecial condition of the Japanese trust-related laws, trust banks as trustees are allowed to enter into an agreement
to provide compensation for any loss in the principal of the trust. The MHFG Group manages and administers thetrust assets to minimize exposures against losses from the guarantees for the repayment of trust principal,
including writing-off impaired loans and charging it to the trust account profits. In performing its fiduciary
duties, the MHFG Group also manages the trust assets separately from its own proprietary assets on behalf ofcustomers and keeps separate records for the trust activities. The MHFG Group consolidates certain guaranteed
principal money trusts. See Note 25 “Variable interest entities and securitizations” for further discussion of theguaranteed principal money trust. The contract amounts of guarantees for repayment of unconsolidated trust
principal are presented in the tables below.
Part of the trust account profits is set aside as a reserve in trust accounts to absorb losses in the trust asset
portfolios in accordance with relevant Japanese laws concerning the trust business and/or trust agreements.
Statutory reserves for loan trusts and reserves for jointly operated designated money trusts are calculated basedon the trust principal or the balance of loans and other assets in the trust accounts. Since the probability ofprincipal indemnification is judged to be remote, the MHFG Group had no related reserve for credit losses
recorded in its consolidated financial statements.
Liabilities of trust accounts
The MHFG Group, as trustee, may enter into an agreement with a third party who is not the party to the relevant
trust agreement to the extent necessary to handle the trust affairs for the purpose of fulfilling the objectives of thetrust and, as such, the trustee shall be allowed to assume certain liabilities. Pursuant to Japanese trust-relatedlaws, the trustee is ultimately liable to pay those liabilities out of its proprietary assets in the event that the trust
assets are insufficient to cover those liabilities. The amount of trust liabilities rarely exceeds the amount of trust
assets and, therefore, those liabilities are generally covered by the corresponding trust assets. To avoid thedemand for payment out of the proprietary assets, the trustee can enter into a special covenant of limited liability
under which the trust creditors agree to limit the trustee’s liability to the value of the trust assets and to waive theright for compulsory execution against the trustee’s proprietary assets. The MHFG Group regularly monitors thecondition of trust accounts to minimize exposures against making payment.
The amounts of such liabilities in the trust accounts, excluding those with the special covenant of limited
liability, are presented in the tables below. Liabilities of trust accounts principally include obligations to returncollateral under security lending transactions and other transactions.
Derivative financial instruments
Certain written options and credit default swaps are deemed guarantees pursuant to the definition of guarantees in
ASC 460 if these contracts require the MHFG Group to make payments to counterparties based on changes in an
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
underlying instrument or index that is related to an asset, a liability, or an equity security of the counterparties.
The MHFG Group’s payments could involve a gross settlement or a net settlement. Because it is difficult inpractice to determine whether the counterparty has the asset, the liability or the equity security relating to theunderlying, the MHFG Group has decided to include all credit default swaps and written options, excluding
written options outside the scope of ASC 460, in the guarantee disclosures.
Carrying amountThe MHFG Group records all guarantees and similar obligations subject to ASC 460 at fair value on the
consolidated balance sheets at the inception of the guarantee. The total carrying amount of guarantees and similar
obligations at March 31, 2013 and 2014 was ¥512 billion and ¥ 422 billion, respectively, and was included in
Other liabilities and Trading account liabilities. The total includes the carrying amounts of derivatives that are
deemed to be guarantees, which amounted to ¥493 billion and ¥404 billion at March 31, 2013 and 2014,
respectively.
Maximum exposure under guarantee contracts
The table below summarizes the remaining term and maximum potential amount of future payments by type ofguarantee at March 31, 2013 and 2014. The maximum potential amount of future payments disclosed below
represents the contractual amounts that could be repaid in the event of the guarantees being executed, without
consideration of possible recoveries under recourse provisions or from collateral held. With respect to written
options included in derivative financial instruments in the table below, in theory, the MHFG Group is exposed tounlimited losses; therefore, the table shows the notional amounts of the contracts as a substitute for the maximum
exposure.
The MHFG Group, when necessary, requires collateral such as cash, investment securities and real estate or
third-party guarantees depending on the amount of credit risk involved, and employs means such as subparticipation to reduce the credit risk associated with guarantees. The maximum exposure or notional amount
below does not represent the expected losses from the execution of the guarantees.

2013

Performance guarantees . . . . . . . . . . . . . . . . .
Guarantees on loans . . . . . . . . . . . . . . . . . . . .
Guarantees on securities . . . . . . . . . . . . . . . . .
Other guarantees . . . . . . . . . . . . . . . . . . . . . . .
Guarantees for the repayment of trust
principal . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities of trust accounts . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . .

Maximum
potential/Contractualor Notional amountAmount by expiration period
After one year
through
One year or lessfive years
After five years(in billions of yen)

1,750
452
146
1,068

935
159
19
826

619
51
127
217

196
242
—
25

171
8,606
23,582—
8,428
10,185133
72
11,837

38
106
1,560

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Maximum
potential/Contractualor Notional amount2014

Performance guarantees . . . . . . . . . . . . . . . . .
Guarantees on loans . . . . . . . . . . . . . . . . . . . .
Guarantees on securities . . . . . . . . . . . . . . . . .
Other guarantees . . . . . . . . . . . . . . . . . . . . . . .
Guarantees for the repayment of trust
principal . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities of trust accounts . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . .

Amount by expiration period
After one year
through
One year or lessfive years
After five years(in billions of yen)

1,985
399
170
1,249

1,125
173
42
991

708
21
128
220

152
205
—
38

158
11,15821,422—
10,962
8,643

125
78
11,391

33
118
1,388

The table below presents the maximum potential amount of future payments of performance guarantees,
guarantees on loans, guarantees on securities and other guarantees classified based on internal ratings at
March 31, 2013 and 2014:
2013
2014
(in billions of yen)

Investment grade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-investment grade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,387
1,029

2,673
1,130

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,416

3,803

Note: Investment grade in the internal rating scale generally corresponds to BBB- or above in external rating
scale.
Other off-balance-sheet instruments
In addition to guarantees, the MHFG Group issues other off-balance-sheet instruments to its customers, such as
lending-related commitments and commercial letters of credit. Under the terms of these arrangements, theMHFG Group is required to extend credit or make certain payments upon the customers’ request.
Commitments to extend credit
Commitments to extend credit are legally binding agreements to lend to customers on demand. They usually
have set maturity dates. These agreements differ from guarantees in that they are generally revocable or containprovisions that enable the MHFG Group to avoid payment or reduce the amount of credit extended under certain
conditions, such as the deterioration of the borrower’s financial condition or other reasonable conditions. The
MHFG Group monitors the financial condition of the potential borrowers throughout the commitment period todetermine whether additional collateral or changes in the terms of the commitment are necessary. Since many ofthese commitments to extend credit expire without being drawn upon, the total commitment amounts do notnecessarily represent future cash requirements.
Commitments to invest in securities
Commitments to invest in securities include legally binding contracts to make additional contributions toinvestment funds, such as venture capital funds or corporate recovery funds in accordance with the terms ofinvestment agreements.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Commercial letters of credit
Commercial letters of credit are issued in connection with customers’ trade transactions. Normally, the customers
cannot receive the goods until they make payment to a bank, and therefore these commercial letters of credit arecollateralized by the underlying goods. Upon issuance of commercial letters of credit, the MHFG Group monitors
the credit risk associated with these transactions to determine if additional collateral is required.
The table below summarizes the contractual amounts with regard to these undrawn commitments at March 31,
2013 and 2014:
2013
2014
(in billions of yen)

Commitments to extend credit (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

59,101
608

59,402
611

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

59,70960,013

Note: Commitments to extend credit include commitments to invest in securities.
Allowance for losses on off-balance-sheet instruments
The amounts of an allowance for losses on off-balance-sheet instruments at March 31, 2013 and 2014 were ¥102
billion and ¥121 billion, respectively.
LeasesThe MHFG Group leases certain office space and equipment under noncancelable agreements. The lease periods
for these leases range from less than 1 year to around 30 years. These leases include cancellation clauses withpenalties of a maximum of approximately 5 years-worth of rentals and/or periodic adjustment clauses of rentals.
Future minimum lease payments for capitalized leases and future minimum rental payments for operating leases
at March 31, 2014 were as follows:
Capitalized leases Operating leases(in millions of yen)

Fiscal year ending March 31:
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,479
5,929
5,186
4,547
3,820
2,068

48,23340,19535,58431,55629,23774,596

Total minimum lease/rental payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,029259,401

Amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,349

Present value of minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . .

26,680Total rental expense for the fiscal years ended March 31, 2012, 2013 and 2014 was ¥101,003 million,¥98,459 million and ¥95,941 million, respectively.
During prior years, the MHFG Group’s major banking subsidiaries sold their head offices (including land,buildings, facilities and equipment) to third parties. Concurrent with the sales, these subsidiaries leased theproperties back for periods of 5 and 10 years for total rental payments for these periods of ¥214,690 million. The
terms of certain lease agreements were changed during the fiscal years ended March 31, 2009, 2011, 2012
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
and 2014, and the total rental payments for these periods increased to ¥282,832 million, consequently. The
MHFG Group accounted for the transactions as operating leases. The future minimum rental payments under theterms of the related lease agreements were ¥29,879 million, ¥15,907 million and ¥69,556 million at March 31,
2012, 2013 and 2014, respectively.
During the fiscal year ended March 31, 2014, MHFG began to lease its head office from a third party andaccounted for the lease arrangement as operating lease.
Legal proceedings
The MHFG Group is involved in normal collection proceedings initiated by the Group and other legal
proceedings in the ordinary course of business.
The Group’s Indonesian subsidiary acts as collateral agent for the trustee of bond issuances made by subsidiaries
of Asia Pulp & Paper Company Ltd. (“APP”). In that role, the subsidiary is involved in a dispute between thebondholders and such APP subsidiaries in their capacities as the issuers, guarantors and/or pledgors of security
for the bonds relating to foreclosure proceedings on the collateral and has been named as a defendant in a lawsuitbrought by the obligors under the bonds in Indonesia. The Group’s consolidated financial statements do notinclude a reserve in relation to this dispute because the Group does not believe that the resolution of this matter
will have a significant impact on the consolidated financial condition or results of operations of the Group,
although there can be no assurance as to the foregoing.
24. Noncontrolling interests in consolidated subsidiaries
Noncontrolling interests represent the equity of the remaining outstanding voting stock of subsidiaries not ownedby the MHFG Group. The changes in the noncontrolling interests in fiscal years ended March 31, 2012, 2013 and2014 consisted of noncontrolling interests in the net income or loss of subsidiaries, noncontrolling interests inchanges in other comprehensive income of subsidiaries and changes in the ownership percentage of the Group in
respect of certain subsidiaries.
During the fiscal year ended March 31, 2012, the MHFG Group exchanged certain MHFG’s common stock for
30.15, 40.80 and 46.02 percent of the voting equity interests in MHTB, the former MHSC and the former MHIS,
respectively, in order for those subsidiaries to become MHFG’s wholly-owned subsidiaries. See Note 14“Common stock” for further details of these transactions. Subsequently, the Group transferred 5.34 percent of thevoting equity interests in the former MHSC to The Norinchukin Bank.
25. Variable interest entities and securitizations
Variable interest entities
In the normal course of business, the MHFG Group is involved with VIEs primarily through the following typesof transactions: asset-backed commercial paper/loan programs, asset-backed securitizations, investments insecuritization products, investment funds, trust arrangements, and structured finance. The Group consolidates
certain of these VIEs, where the Group is deemed to be the primary beneficiary because it has both (1) the power
to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the
obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The
MHFG Group reassesses whether it is primary beneficiary on an ongoing basis as long as the Group has any
continuing involvement with the VIE. There are also other VIEs, where the Group determines that it is not the
primary beneficiary but has significant variable interests. In evaluating the significance of the variable interests,
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
the Group comprehensively takes into consideration the extent of its involvement with each VIE, such as theseniority of its investments, the share of its holding in each tranche and the variability it expects to absorb, as
well as other relevant facts and circumstances. The likelihood of loss is not necessarily relevant to thedetermination of significance, and therefore, “significant” does not imply that there is high likelihood of loss.
The maximum exposure to loss that is discussed in this section refers to the maximum loss that the Group could
be required to record in its consolidated statements of income as a result of its involvement with the VIE. This
represents exposures associated with both on-balance-sheet assets and off-balance-sheet liabilities related to the
VIE. Further, this maximum potential loss is disclosed regardless of the probability of such losses and, therefore,
it is not indicative of the ongoing exposure which is managed within the Group’s risk management framework.
The tables below show consolidated assets of the Group’s consolidated VIEs as well as total assets and maximum
exposure to loss for its significant unconsolidated VIEs, as of March 31, 2013 and 2014:
Significant
unconsolidated VIEs

Consolidated VIEs

Maximum
Consolidated assets Total assets exposure to loss
(in billions of yen)

2013

Asset-backed commercial paper/loan programs . . . . . . . . . . . . . . .
Asset-backed securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in securitization products . . . . . . . . . . . . . . . . . . . . . .
Investment funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust arrangements and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,212
385
—
1,175
39

—
463
530
2,770
—

—
37
206
302
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,811

3,763

545

Significant
unconsolidated VIEs
Maximum
Consolidated assets Total assets exposure to loss
(in billions of yen)
Consolidated VIEs

2014

Asset-backed commercial paper/loan programs . . . . . . . . . . . . . . .
Asset-backed securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in securitization products . . . . . . . . . . . . . . . . . . . . . .
Investment funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust arrangements and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,403
423
181
1,508
38

—
385
531
2,935
—

—
39
200
387
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,553

3,851

626

The Group has not provided financial or other support to consolidated or unconsolidated VIEs that the Group was
not previously contractually required to provide.
The tables below present the carrying amounts and classification of assets and liabilities on the MHFG Group’sbalance sheets that relate to its variable interests in the significant unconsolidated VIEs, as of March 31, 2013
and 2014:
Assets on balance sheets related to unconsolidated VIEs:

2013
2014
(in billions of yen)

Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46
206
308

29
222
316

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

560

567

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Liabilities on balance sheets and maximum exposure to loss related to unconsolidated VIEs:

2013
2014
(in billions of yen)

Payables under securities lending transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

4

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

4

Maximum exposure to loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

545

626

Asset-backed commercial paper/loan programs
The MHFG Group manages several asset-backed commercial paper/loan programs that provide its clients’
off-balance-sheet and/or cost-effective financing. The VIEs used in the programs purchase financial assets,
primarily receivables, from clients participating in the programs and provide liquidity through the issuance ofcommercial paper or borrowings from the MHFG Group backed by the financial assets. While customers
normally continue to service the transferred receivables, the MHFG Group underwrites, distributes, and makes amarket in commercial paper issued by the conduits. The MHFG Group typically provides program-wide liquidity
and credit support facilities and, in some instances, financing to the VIEs. The MHFG Group has the power todetermine which assets will be held in the VIEs and has an obligation to monitor these assets. The Group is also
responsible for liability management. In addition, through the liquidity and credit support facilities with the VIEs,
the Group has the obligation to absorb losses that could potentially be significant to the VIEs. Therefore, theGroup consolidates this type of VIEs.
Asset-backed securitizations
The MHFG Group acts as an arranger of various types of structured finance to meet clients’ off-balance-sheet
financing needs. In substantially all of these structured financing transactions, the transfer of the financial asset
by the client is structured to be bankruptcy remote by use of a bankruptcy remote entity, which is deemed to be a
VIE because its equity holder does not have decision making rights. The MHFG Group receives fees forstructuring and/or distributing the securities sold to investors. In some cases, the MHFG Group itself purchases
the securities issued by the entities and/or provides loans to the VIEs.
In addition, the MHFG Group establishes several single-issue and multi-issue special purpose entities that issue
collateralized debt obligations (“CDO”) or CLO, synthetic CDO/CLO or other repackaged instruments to meetclients’ and investors’ financial needs. The MHFG Group also arranges securitization transactions including
CMBS, RMBS and others. In these transactions, the MHFG Group acts as an underwriter, placement agent, asset
manager, derivatives counterparty, and/or investor to debt and equity instruments.
In certain VIEs, where the MHFG Group provides liquidity and credit support facilities, writes credit protection or
invests in debt or equity instruments in its role as an arranger, servicer, administrator or asset manager, etc., theGroup has the power to determine which assets will be held in the VIEs or to manage and monitor these assets. In
addition, through the variable interests above, the Group has the obligation to absorb losses and the right to receive
benefits that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs.
The MHFG Group established certain VIEs to securitize its own mortgage loans. The Group provides servicing
for, holds retained subordinated beneficial interests in, and retains credit exposure in the form of guarantees in
the mortgage loans. In its role as a servicer, the Group has the power to direct the entity’s activities that mostsignificantly impact the entity’s economic performance by managing defaulted mortgage loans. In addition,
through the retained interests and the involvement as a guarantor above, the Group has the obligation to absorb
losses and the right to receive benefits that could potentially be significant to the entity. Therefore, the Group
consolidates such VIEs.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Investments in securitization products
The MHFG Group invests in, among other things, various types of CDO/CLO, synthetic CDO/CLO andrepackaged instruments, CMBS and RMBS arranged by third parties for the purpose of generating current
income or capital appreciation, which all utilize entities that are deemed to be VIEs. By design, such investments
were investment grade at issuance and held by a diverse group of investors. The potential loss amount of
securities and loans is generally limited to the amount invested because the Group has no contractual
involvement in such VIEs beyond its investments. Since the Group is involved in those VIEs only as an investor,
the Group does not ordinarily have the power to direct the VIEs’ activities that most significantly impact the
VIEs’ economic performance. However, the Group consolidates VIEs, where the transactions are tailored by thethird party arrangers to meet the Group’s needs as a main investor, who is ultimately deemed to have the power
to determine which assets to be held in the VIEs. The Group also invests in certain beneficial interests issued by
VIEs which hold real estate that the Group utilizes. In addition to these variable interests, when the Group has thepower including the sole unilateral ability to liquidate VIEs, the Group consolidates such VIEs.
Investment funds
The MHFG Group invests in various investment funds including securities investment trusts, which collectively
invest in equity and debt securities that include listed Japanese securities and investment grade bonds. Investment
advisory companies or fund management companies, including the Group’s subsidiaries and affiliates, administerand make investment decisions over such investment funds. The Group consolidates certain investment funds
where it is deemed to be the primary beneficiary. The Group has determined that certain investment vehicles
managed by the Group that have all the attributes of an investment company (or similar entity) qualify for thedeferral from certain requirements of ASC 810 that originated from SFAS No.167 “Amendments to FASBInterpretation No. 46(R)” (“SFAS No. 167”). Therefore, for these vehicles, the Group determines whether it is
the primary beneficiary by evaluating whether it absorbs a majority of expected losses, receives a majority of
expected residual returns, or both.
Trust arrangements
The MHFG Group offers a variety of asset management and administration services under trust arrangements
including security investment trusts, pension trusts and trusts used in the securitization of assets originated byand transferred to third parties. The Group receives trust fees for providing services as an agent or fiduciary on
behalf of beneficiaries.
With respect to guaranteed principal money trust products, the MHFG Group assumes certain risks by providing
guarantees for the repayment of principal as required by the trust agreements or relevant Japanese legislation. The
MHFG Group manages entrusted funds primarily through the origination of high quality loans and other creditrelated products, investing in investment grade marketable securities such as Japanese government bonds andplacing cash with the MHFG Group’s subsidiary trust banks. The Group has the power to determine which assets
will be held in the VIEs or to manage these assets. In addition, through the principal guarantee agreement, theGroup has the obligation to absorb losses that could potentially be significant to the VIEs. Therefore, the Group
consolidates this type of VIEs. However, the MHFG Group does not consolidate certain guaranteed principal money
trusts, which invest all the entrusted funds in the MHFG Group itself, as the Group has determined that it has novariable interests (Refer to Note 10 “Due to trust accounts”). See Note 23 “Commitments and contingencies” for thebalances of guaranteed trust principal unconsolidated at March 31, 2013 and 2014.
With respect to non-guaranteed trust arrangements, the MHFG Group manages and administers assets on behalfof its customers (trust beneficiaries) in the capacity of a trustee and fiduciary. For substantially all nonguaranteed trust arrangements, the Group generally does not have the power to direct the activities of the VIEs
that most significantly impact the VIEs’ economic performance or has neither the obligation to absorb losses nor
the right to receive benefits that could potentially be significant to the VIEs. Therefore, such trust accounts are
not included in the consolidated financial statements of the MHFG Group.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Group has determined that, in certain trust arrangements that have all the attributes of an investmentcompany (or similar entity), certain requirements of ASC 810 that originated from SFAS No.167 are deferred.
Therefore, for these trust arrangements, the Group determines whether it is the primary beneficiary by evaluating
whether it absorbs a majority of expected losses, receives a majority of expected residual returns, or both.
Special purpose entities created for structured finance
The MHFG Group is involved in real estate, commercial aircraft and other vessel and machinery and equipment
financing to VIEs. As the Group typically only provides senior financing with credit enhanced by subordinatedinterests and sometimes may act as an interest rate swap counterparty, the Group determines that, in this type of
VIEs, it does not have the power to direct the activities of the VIEs that most significantly impact the VIEs’
economic performance, or even the significant variable interests.
Securitization
The MHFG Group has had no significant transfers of financial assets, recognized no significant gains or losses
and retained no significant interests in securitization transactions accounted for as sales.
There are certain transactions where transfers of financial assets do not qualify for sale treatment but are
accounted for as secured borrowings. These transferred assets continue to be carried on the consolidated balance
sheets of the MHFG Group. Such assets are associated with securitization transactions and loan participationtransactions, which amounted to ¥174 billion and ¥62 billion as of March 31, 2013, and ¥181 billion and ¥79
billion as of March 31, 2014, respectively. Liabilities associated with securitization and loan participationtransactions are presented as Payables under securities lending transactions and Other short-term borrowings orLong-term debt, respectively, on the consolidated balance sheets.
26. Fees and commissions income
Details of Fees and commissions income for the fiscal years ended March 31, 2012, 2013 and 2014 are as
follows:
2012

2013
2014
(in millions of yen)

Securities-related business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,567 132,787 170,311
Deposits, debentures and lending business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97,509 113,989 114,073
Remittance business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,015 104,574 108,534
Trust fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45,99045,621
48,914
Fees for other customer services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,332 215,837 233,931
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

575,413612,808

675,763

Securities-related business fees consist of broker’s fees and markups on securities underwriting and othersecurities related activities. Remittance business fees consist of service charges for funds transfer and collections.
Trust fees are earned primarily by fiduciary asset management and administration service for corporate pension
plans, investment funds, and other. Fees for other customer services include fees related to the MHFG Group’s
agency business, guarantee related business, and other.

F-86

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
27. Trading account gains and losses
The MHFG Group performs trading activities through market making, sales, and arbitrage. Accordingly, Trading
account gains (losses)—net include gains and losses from transactions undertaken for trading purposes, including
both market making for customers and proprietary trading, or transactions through which the Group seeks tocapture gains arising from short-term changes in market value. Trading account gains (losses)—net also include
gains and losses related to changes in the fair value of derivatives and other financial instruments not eligible forhedge accounting under U.S. GAAP that are utilized to offset mainly interest rate risk related to the Group’s
various assets and liabilities, as well as gains and losses related to changes in the fair value of foreign currencydenominated available-for-sale securities for which the fair value option is elected in accordance with ASC 825,
“Financial Instruments” (“ASC 825”). Net trading gains (losses) for the fiscal years ended March 31, 2012, 2013
and 2014 are comprised of the following:
2012

2013
2014
(in millions of yen)

Trading account gains (losses)—net:
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,056 468,029 80,606
Derivative contracts:
Interest rate contracts (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261,568 219,385 (79,562)
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (146,258) (91,300) (13,167)
Equity-related contracts (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7,150) (59,462) (41,607)
Credit-related contracts (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,184)(174)
899
Other contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
283(2,378) (6,856)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange gains (losses)—net (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

333,315
98,054534,100
20,514(59,687)
25,631

Net trading gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

431,369

554,614(34,056)

Notes:(1) The net gain (loss) excluded from the assessment of the effectiveness of fair value hedges is included in theabove table.
(2) Amounts do not include the net loss of ¥3,391 million, ¥6,703 million and ¥8,660 million on the credit
derivatives hedging the credit risk of loans during the fiscal years ended March 31, 2012, 2013 and 2014,
respectively. The net loss is recorded in Other noninterest expenses.
(3) Amounts include realized and unrealized gains and losses on both derivative instruments and nonderivative
instruments, such as translation gains and losses related to foreign currency-denominated available-for-salesecurities for which the fair value option is elected in accordance with ASC 825.
28. Fair value
Fair value measurements
ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability(an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which
requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs whenmeasuring fair value. In addition, ASC 820 precludes (1) the deferral of gains and losses at inception of certain
derivative contracts whose fair value was not evidenced by market-observable data, and (2) the use of block
discounts when measuring the fair value of instruments traded in an active market, which were previously
applied to large holdings of publicly traded financial instruments.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair value hierarchy
ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques
are observable or unobservable. The standard describes three levels of inputs that may be used to measure fairvalue:
Level 1

Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include
debt and equity securities and derivative contracts that are traded in an active exchange market.

Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data for substantially the full term of the assets or liabilities. Level 2 assets andliabilities include debt securities with quoted prices that are traded less frequently than exchange-traded
instruments. If no quoted market prices are available, the fair values of debt securities and over-thecounter derivative contracts in this category are determined using a pricing model with inputs that are
observable in the market or can be derived principally from or corroborated by observable market data.

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fairvalue of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose
values are determined using pricing models, discounted cash flow methodologies, or similar
techniques, as well as instruments for which the determination of fair value requires significant
management judgment or estimation.

Valuation process
The MHFG Group has established clear valuation policies which govern the principles of fair value
measurements and the authority and duty of each department. The Group has also established well-documented
procedure manuals which describe valuation techniques and related inputs for determining the fair values ofvarious financial instruments. The policies require that the measurement of fair values be carried out inaccordance with the procedures by the risk management departments or the back offices which are independent
from the front offices. The policies also require the risk management departments to check and verify whether
the valuation methodologies defined in the procedure manuals are fair and proper and the internal audit
departments to periodically review the compliance with the procedures throughout the Group. Although thevaluation methodologies and related inputs are consistently used from period to period, a change in the market
environment sometimes leads to a change in the valuation methodologies and the inputs. For instance, a change
in market liquidity due to a delisting or a new listing is one of the key drivers of revisions to the valuation
methodologies and the inputs. The key drivers also include the availability or the lack of market observable
inputs and the development of new valuation methodologies. The price verification through the Group’s internalvaluation process has an important role in identifying whether the valuation methodologies and the inputs need to
be changed. The internal valuation process over the prices broker-dealers provide, primarily for Japanese
securitization products, is described in more detail below in “Investments”. A change in the valuation
methodologies and/or the inputs requires the revision of the valuation policies and procedure manuals, which is
required to be approved by the appropriate authority, either the CEO, the head of risk management, and/or
accounting, depending on the nature and characteristics of the change.
The following is a description of valuation methodologies and inputs used for assets and liabilities measured atfair value on a recurring basis, including the general classification of such instruments pursuant to the fair value
hierarchy and the MHFG Group’s valuation techniques used to measure fair values. During the fiscal year ended
March 31, 2014, there were no significant changes made to the Group’s valuation techniques and related inputs.

F-88

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Trading securities and trading securities sold, not yet purchased
When quoted prices for identical securities are available in an active market, the Group uses the quoted prices tomeasure the fair values of securities and such securities are classified in Level 1 of the fair value hierarchy. Level
1 securities include highly liquid government bonds and Ginnie Mae securities. When quoted prices for identicalsecurities are available, but not actively traded, such securities are classified in Level 2 of the fair value
hierarchy. When no quoted market prices are available, the Group estimates fair values by using a pricing modelwith inputs that are observable in the market and such securities are classified in Level 2 of the fair value
hierarchy. Level 2 securities include Japanese local government bonds, corporate bonds, and commercial paper.
When less liquid market conditions exist for securities, the quoted prices are stale or the prices from independentsources vary significantly, such securities are generally classified in Level 3 of the fair value hierarchy. The fairvalues of foreign currency denominated securitization products such as RMBS, CMBS, and ABS are determinedprimarily by using a discounted cash flow model. The key inputs used for the model include default rates,
recovery rates, prepayment rates, and discount rates. In the event that certain key inputs are unobservable orcannot be corroborated by observable market data, these financial instruments are classified in Level 3.
The investment funds are classified in either Level 1, Level 2, or Level 3 of the fair value hierarchy. ExchangeTraded Funds (“ETF”) are generally classified in Level 1, while the others are classified in Level 2 or Level 3.
Investment trusts and hedge funds are generally classified in Level 2, since those funds are measured at the net
asset value (“NAV”) per share and the Group has the ability to redeem its investment with the investees at theNAV per share at the measurement date or within the near term. In contrast, private equity funds and real estate
funds measured at the NAV per share are generally classified in Level 3, since the Group does not have theability to redeem its investment with the investees at the NAV per share, and it cannot redeem its investment with
the investees at the NAV per share at the measurement date or within the near term.
Derivative financial instruments
Exchange-traded derivatives are valued using quoted market prices and consequently are classified in Level 1 of
the fair value hierarchy. However, the majority of derivatives entered into by the Group are executed over-thecounter and are valued using internal valuation techniques as no quoted market prices are available for such
instruments. The valuation techniques depend on the type of derivatives. The principal techniques used to value
these instruments are discounted cash flow models and the Black-Scholes option pricing model, which are widely
accepted in the financial services industry. The key inputs vary with the type of derivatives and the nature of theunderlying instruments and include interest rate yield curves, foreign exchange rates, the spot price of theunderlying, volatility and correlation. Each item is classified in either Level 2 or Level 3 depending on theobservability of the significant inputs to the model. Level 2 derivatives include plain vanilla interest rate andcurrency swaps and option contracts. Derivative contracts valued using significant unobservable correlation orvolatility are classified in Level 3 of the fair value hierarchy.
Investments
The fair values of available-for-sale securities are determined primarily using the same procedures described for
trading securities above. Since private placement bonds have no quoted market prices, the fair values of suchbonds are estimated based on a discounted cash flow model using interest rates approximating the current rates
for instruments with similar maturities and credit risk. Private placement bonds are classified in either Level 2 orLevel 3 depending on the observability of the significant inputs to the model, such as credit risk. The fair valuesof Japanese securitization products such as RMBS, CMBS, CDO, ABS, and CLO are generally based upon single
non-binding quoted prices from broker-dealers. Such quotes are validated through the Group’s internal processes
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
and controls. In the rare case where the Group finds the quoted prices to be invalid through its internal valuation
process, it adjusts those prices or alternatively estimates their fair values by using a discounted cash flow model
to incorporate the Group’s estimates of key inputs such as the most recent value of each underlying asset, cash
flows of the underlying assets, and discount margin. The validation of such prices varies depending on the natureand type of the products. For the majority of RMBS, CDO, ABS and CLO products, broker quotes are validated
by investigating significant unusual monthly valuation fluctuations and comparing to prices internally computed
through discounted cash flow models using assumptions and parameters provided by brokers such as the cash
flows of underlying assets, yield curve, prepayment speed and credit spread. For the majority of CMBS, theGroup validates broker quotes through a review process that includes the investigation of significant unusual
monthly valuation fluctuations and/or a review of underlying assets with significant differences between thevaluations of the Group and the broker-dealers being identified. Though most Japanese securitization products
are classified in Level 3, certain securitization products such as Japanese RMBS are classified in Level 2, if thequoted prices are verified through either recent market transactions or a pricing model that can be corroborated
by observable market data.
Other investments, except investments held by consolidated investment companies, have not been measured atfair value on a recurring basis. Investments held by consolidated investment companies mainly consist of
marketable and non-marketable equity securities and debt securities. The fair value of the marketable equity
securities is based upon quoted market prices. The fair value of the non-marketable equity securities is based
upon significant management judgment, as very limited quoted prices exist. When evaluating such securities, theGroup firstly considers recent market transactions of identical securities, if applicable. Subsequently, the Group
uses commonly accepted valuation techniques such as earnings multiples based on comparable public securities.
Non-marketable equity securities are generally classified in Level 3 of the fair value hierarchy. The fair value ofthe debt securities is estimated using a discounted cash flow model, since they have no quoted market prices.
Those debt securities are classified in Level 3, because the credit risk is unobservable.
Long-term debt
Where fair value accounting has been elected for structured notes, the fair values are determined by incorporating
the fair values of embedded derivatives that are primarily derived by using the same procedures described forderivative financial instruments above. Such instruments are classified in Level 2 or Level 3 depending on theobservability of significant inputs to the model of the embedded derivatives.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Items measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis at March 31, 2013 and 2014, including those forwhich the MHFG Group has elected the fair value option, are summarized below:

2013

Level 1

Level 2 Level 3(in billions of yen)

Assets:Trading securities (1):Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,651
49Japanese local government bonds . . . . . . . . . . . . . . . . . . . . . . . .
—125
U.S. Treasury bonds and federal agency securities . . . . . . . . . .
5,777
306
Other foreign government bonds . . . . . . . . . . . . . . . . . . . . . . . . 2,235
194
Agency mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . .
2,055
596
Residential mortgage-backed securities . . . . . . . . . . . . . . . . . . .
——Commercial mortgage-backed securities . . . . . . . . . . . . . . . . . .
—3
Certificates of deposit and commercial paper . . . . . . . . . . . . . . .
—1,318
Corporate bonds and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
1,176
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
622
503
Derivatives:
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 10,319
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53,066
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
114
Credit-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—30
Other contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—18
Available-for-sale securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,198
1,585Japanese local government bonds . . . . . . . . . . . . . . . . . . . . . . . .
—244
U.S. Treasury bonds and federal agency securities . . . . . . . . . .
178—
Other foreign government bonds . . . . . . . . . . . . . . . . . . . . . . . .
334
264
Agency mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . .
144
862
Residential mortgage-backed securities . . . . . . . . . . . . . . . . . . .
—150
Commercial mortgage-backed securities . . . . . . . . . . . . . . . . . .
——Japanese corporate bonds and other debt securities . . . . . . . . . .
—2,000
Foreign corporate bonds and other debt securities . . . . . . . . . . .
12345
Equity securities (marketable) . . . . . . . . . . . . . . . . . . . . . . . . . .
2,975
164
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1—
Total assets measured at fair value on a recurring basis (2) . . . . . . . . . . . . .
Liabilities:
Trading securities sold, not yet purchased . . . . . . . . . . . . . . . . . . . . .
Derivatives:
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities measured at fair value on a recurring basis . . . . . . . . . . . .
F-91

Assets/Liabilities
measured
at fair value

—
—
—
—
—
100
91
—
417
71

4,700
125
6,083
2,429
2,651
100
94
1,318
1,643
1,196

24
28
23
29
20

10,350
3,099
182
59
38

—
—
—
—
—
292
250
215
202
—
75

30,783
244
178
598
1,006
442
250
2,215
559
3,139
76

48,28923,431

1,837

73,557

3,338

182

—

3,520

8
4
51
—
—
—

9,997
2,968
110
35
8
171

13
11
16
9
19
381

10,018
2,983
177
44
27
552

3,401

13,471449

17,321MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

2014

Assets/Liabilities
measured
at fair value

Level 1

Level 2 Level 3(in billions of yen)

3,360
—
3,541
2,567
1,390
—
—
—
38
714

50
74
486
274
364
—
2
969
1,671
579

—
—
—
—
—
78
91
—
413
60

3,410
74
4,027
2,841
1,754
78
93
969
2,122
1,353

Assets:Trading securities (1):Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japanese local government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. Treasury bonds and federal agency securities . . . . . . . . . . . . . . . . . .
Other foreign government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Agency mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Residential mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificates of deposit and commercial paper . . . . . . . . . . . . . . . . . . . . . .
Corporate bonds and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivatives:
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available-for-sale securities:
Japanese government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japanese local government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. Treasury bonds and federal agency securities . . . . . . . . . . . . . . . . . .
Other foreign government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Agency mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Residential mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Japanese corporate bonds and other debt securities . . . . . . . . . . . . . . . . . .
Foreign corporate bonds and other debt securities . . . . . . . . . . . . . . . . . . .
Equity securities (marketable) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43
6
60
—
1

7,997
2,331
124
28
18

24
17
13
21
4

8,064
2,354
197
49
23

20,912
—
154
280
105
—
—
—
1
3,348
2

1,144
245
—
441
856
112
—
1,858
427
74
—

—
—
—
—
—
220
161
170
141
—
69

22,056
245
154
721
961
332
161
2,028
569
3,422
71

Total assets measured at fair value on a recurring basis (2) . . . . . . . . . . . . . . . . . . . .

36,522

20,124

1,482

58,128

3,862

488

—

4,350

42
5
58
—
1
—

7,846
2,340
108
30
12
157

7
6
12
4
4
501

7,895
2,351
178
34
17
658

3,968

10,981534

15,483Liabilities:
Trading securities sold, not yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivatives:
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities measured at fair value on a recurring basis . . . . . . . . . . . . . . . . . . . .

Notes:(1) Trading securities include foreign currency denominated securities for which the MHFG Group elected the fair value
option.
(2) Amounts include the investments measured at the NAV per share at March 31, 2013 and 2014, of ¥715 billion and ¥649
billion, respectively, of which ¥667 billion and ¥612 billion, respectively, are classified in Level 2, and ¥48 billion and¥37 billion, respectively, are classified in Level 3. The amounts of unfunded commitments related to these investments at
March 31, 2013 and 2014 were ¥24 billion and ¥23 billion, respectively.
(3) Amounts represent items for which the Group elected the fair value option.

F-92

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Items measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
The following table presents a reconciliation for all assets and liabilities measured at fair value on a recurring
basis using significant unobservable inputs (Level 3) for the fiscal years ended March 31, 2013 and 2014:

2013

Change inunrealized
Gains
Gains Transfers Transfers
gains
April 1, (losses) in (losses)
into
out ofMarch 31, (losses)
2012 Earnings in OCI Level 3
Level 3 Purchases Sales Issuances Settlements
2013
still held (6)(in billions of yen)

Assets:Trading securities:
Residential mortgagebacked securities . . . .
Commercial mortgagebacked securities . . . .
Corporate bonds andother . . . . . . . . . . . . . .
Equity securities . . . . . . .
Derivatives, net (1):Interest rate contracts . . .
Foreign exchange
contracts . . . . . . . . . . .
Equity-related
contracts . . . . . . . . . . .
Credit-related
contracts . . . . . . . . . . .
Other contracts . . . . . . . .
Available-for-sale securities:
Residential mortgagebacked securities . . . .
Commercial mortgagebacked securities . . . .
Japanese corporate
bonds and other debt
securities . . . . . . . . . . .
Foreign corporate bonds
and other debt
securities . . . . . . . . . . .
Other investments . . . . . . . . . .
Liabilities:
Trading securities sold, not yetpurchased . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . .

159

17(2)

—

—

—

2

(7)

—

(71)

100

6

26

1(2)

—

—

—

72

(1)

—

(7)

91

—

355
82

72(2)
4(2)

—
—

14
3

(8)
(3)

609
10

(544)
(25)

—
—

(81)
—

417
71

42
(1)

(10)

16(2)

—

—

—

—

—

—

5

11

16

37

(18)(2)

—

—

(8)

—

—

—

6

17

(21)

22

(10)(2)

—

—

—

—

—

—

(5)

7

(10)

23
15

(6)(2)
— (2)

—
—

(1)
—

1
(14)

—
—

—
—

—
—

3
—

20
1

(5)
—

348

— (3)

6(4)

—

—

29

(1)

—

(90)

292

—

330

2(3)

12(4)

—

—

31

(16)

—

(109)

250

(5)

226

— (3)

1(4)

—

—

95

—

—

(107)

215

—

236
189

4(3)
12(3)

6(4)
—

—
—

—
—

28
6

(4)
(49)

—
—

(68)
(83)

202
75

—
—

—
460

— (2)
(26)(5)

—
—

—

(1)
(175)

(41)
—

42
—

—
142

—
(76)

—
381

—
(24)

4

F-93

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

2014

Change inunrealized
Gains
Gains Transfers Transfers
gains
April 1, (losses) in (losses)
into
out ofMarch 31, (losses)
2013 Earnings in OCI Level 3
Level 3 Purchases Sales Issuances Settlements
2014
still held (6)(in billions of yen)

Assets:Trading securities:
Residential mortgagebacked securities . . . .
Commercial mortgagebacked securities . . . .
Corporate bonds andother . . . . . . . . . . . . . .
Equity securities . . . . . . .
Derivatives, net (1):Interest rate contracts . . .
Foreign exchange
contracts . . . . . . . . . . .
Equity-related
contracts . . . . . . . . . . .
Credit-related
contracts . . . . . . . . . . .
Other contracts . . . . . . . .
Available-for-sale securities:
Residential mortgagebacked securities . . . .
Commercial mortgagebacked securities . . . .
Japanese corporate
bonds and other debt
securities . . . . . . . . . . .
Foreign corporate bonds
and other debt
securities . . . . . . . . . . .
Other investments . . . . . . . . . .
Liabilities:
Long-term debt . . . . . . . . . . . .

100

10(2)

—

—

—

—

(4)

—

(28)

78

7

91

5(2)

—

—

—

—

—

—

(5)

91

4

417
71

55(2)
6(2)

—
—

—

(12)
—

503
8

(442)
(24)

—
—

(112)
(1)

413
60

35
—

11

6(2)

—

(1)

—

—

—

—

1

17

11

17

(3)(2)

—

—

—

—

—

—

(3)

11

5

7

(6)(2)

—

—

—

—

—

—

—

1

(7)

20
1

(6)(2)
— (2)

—
—

—
—

1
—

—
—

—
—

—
—

2
(1)

17
—

(6)
—

292

(1)(3)

5(4)

—

—

5

(9)

—

(72)

220

—

250

5(3)

(2)(4)

—

—

36

(18)

—

(110)

161

(1)

215

— (3)

— (4)

—

(30)

60

(1)

—

(74)

170

—

202
75

8(3)
(2)(3)(1)(4)
—

7

—
(2)

—

—

—
(2)

—
—

(75)
(7)

141
69

—
(2)

381

4(5)

—

1

(1)

—

—

197

(73)

501

5

4

7

Notes:(1) Total Level 3 derivative exposures have been netted on the table for presentation purposes only.
(2) Gains (losses) in Earnings are reported in Trading account gains (losses)—net, Foreign exchange gains (losses)—net or Other noninterest
income (expenses).
(3) Gains (losses) in Earnings are reported in Investment gains (losses)—net.
(4) Gains (losses) in OCI are reported in Accumulated other comprehensive income (loss).
(5) Gains (losses) in Earnings are reported in Other noninterest income (expenses).
(6) Amounts represent total gains or losses recognized in earnings during the period. These gains or losses are attributable to the change infair value relating to assets and liabilities classified as Level 3 that are still held at March 31, 2013 and 2014.

Transfers between levels
Transfers of assets or liabilities between levels of the fair value hierarchy are assumed to occur at the beginningof the period.
During the fiscal year ended March 31, 2013, ¥37 billion of Trading securities were transferred from Level 1 toLevel 2. Transfers of Trading securities were primarily due to certain Japanese government bonds and foreign
corporate bonds which were traded with less frequency.
During the fiscal year ended March 31, 2013, ¥17 billion of Trading securities and ¥1 billion of net Derivative
liabilities were transferred into Level 3. Transfers of Trading securities were primarily due to decreased liquidity
for certain foreign corporate bonds and equity securities. Transfers of net Derivative liabilities were primarily
F-94

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
due to decreased price observability for certain credit derivatives. During the fiscal year ended March 31, 2013,¥11 billion of Trading securities, ¥1 billion of Trading securities sold, not yet purchased and ¥21 billion of net
Derivative assets were transferred out of Level 3. Transfers of Trading securities and Trading securities sold, notyet purchased were primarily due to increased liquidity for certain Japanese and foreign corporate bonds andequity securities. Transfers of net Derivative assets were primarily due to increased price observability for certain
commodity derivatives and foreign exchange derivatives. During the fiscal year ended March 31, 2013, ¥4 billionof transfers into Level 3 and ¥175 billion of transfers out of Level 3 for Long-term debt were primarily due tochanges in the impact of unobservable inputs on the value of certain structured notes.
During the fiscal year ended March 31, 2014, the transfers into Level 3 included ¥4 billion of Trading securities,¥1 billion of net Derivative liabilities, ¥7 billion of Available-for-sale securities and ¥1 billion of Long-term debt.
Transfers into Level 3 for Trading securities and Available-for-sale securities were primarily due to decreased
liquidity for certain foreign corporate bonds. Transfers into Level 3 for net Derivative liabilities were primarily
due to decreased price observability for certain interest rate derivatives. Transfers into Level 3 for Long-term
debt were primarily due to changes in the impact of unobservable inputs on the value of certain structured notes.
During the fiscal year ended March 31, 2014, the transfers out of Level 3 included ¥12 billion of Trading
securities, ¥1 billion of net Derivative liabilities, ¥30 billion of Available-for-sale securities, ¥2 billion of Other
investments and ¥1 billion of Long-term debt. Transfers out of Level 3 for Trading securities were primarily due
to increased liquidity for certain foreign corporate bonds. Transfers out of Level 3 for net Derivative liabilities
were primarily due to increased price observability for certain credit derivatives. Transfers out of Level 3 for
Available-for-sale securities were primarily due to increased liquidity for certain Japanese corporate bonds andother debt securities. Transfers out of Level 3 for Other investments were caused by a new listing of certain nonmarketable equity securities. Transfers out of Level 3 for Long-term debt were primarily due to changes in theimpact of unobservable inputs on the value of certain structured loans.

F-95

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Quantitative information about Level 3 fair value measurements
The following table presents information about significant unobservable inputs related to the MHFG Group’smaterial classes of Level 3 assets and liabilities at March 31, 2013 and 2014:
2013
Products/Instruments
Trading securities and Available-for-salesecurities:
Residential mortgage-backed
securities

Fair value Principal valuation technique
Unobservable inputs(in billions of yen, except for ratios and basis points)

Range of input values

392

Discounted cash flow
Price-based

Prepayment rate
Default rate
Recovery rate
Discount margin

0%–24%
0%–5%
70%–100%
7bps–2,616bps

Commercial mortgage-backed
securities

341

Discounted cash flow
Price-based

Discount margin9bps–3,929bps

Corporate bonds and other debt
securities

834

Discounted cash flow
Price-based

Prepayment rate (1)Default rate (1)Recovery rate (1)Discount margin (1)0%–43%
0%–8%
15%–85%0bps–4,918bps

Discount margin (2)0bps–1,232bps

Derivatives, net:
Interest rate contracts

11Internal valuation model (3)IR – IR correlation
Default rate (4)42%–100%
0%–63%

Foreign exchange contracts

17Internal valuation model (3)FX – IR correlation
FX – FX correlation
FX volatility
Default rate (4)36%–55%55%–55%16%–26%0%–63%

Equity-related contracts

7

Internal valuation model(3)Equity – IR correlation
Equity – FX correlation
Equity volatility

0%–60%
0%–70%
14%–48%Credit-related contracts (5)20Internal valuation model (3)Default rate
Credit correlation

0%–67%
2%–100%381

Internal valuation model (3)IR – IR correlation
FX – IR correlation
FX – FX correlation
Equity – IR correlation
Equity volatility
Default rate
Credit correlation

42%–100%
36%–55%55%–55%0%–60%
18%–48%0%–10%
2%–100%Long-term debt

F-96

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2014
Products/Instruments
Trading securities and Available-for-salesecurities:
Residential mortgage-backed
securities

Fair value Principal valuation technique
Unobservable inputs(in billions of yen, except for ratios and basis points)

Range of input values

298

Discounted cash flow
Price-based

Prepayment rate
Default rate
Recovery rate
Discount margin

1%–24%
0%–4%
70%–100%
8bps–2,002bps

Commercial mortgage-backed
securities

252

Discounted cash flow
Price-based

Discount margin

17bps – 3,441bps

Corporate bonds and other debt
securities

724

Discounted cash flow
Price-based

Prepayment rate (1)Default rate (1)Recovery rate (1)Discount margin (1)0%–42%
0%–9%
15%–75%12bps–1,725bps

Discount margin (2)-122bps–1,303bps

Derivatives, net:
Interest rate contracts

17Internal valuation model (3)IR – IR correlation
Default rate (4)23%–100%
0%–63%

Foreign exchange contracts

11Internal valuation model (3)FX – IR correlation
FX – FX correlation
FX volatility
Default rate (4)28%–52%55%–55%14%–25%0%–63%

Equity-related contracts

1

Internal valuation model (3)Equity – IR correlation
Equity – FX correlation
Equity volatility

0%–60%
0%–70%
18%–35%Credit-related contracts (5)17Internal valuation model (3)Default rate
Credit correlation

0%–47%
1%–100%501

Internal valuation model (3)IR – IR correlation
FX – IR correlation
FX – FX correlation
Equity – IR correlation
Equity – FX correlation
Equity volatility
Default rate
Credit correlation

23%–100%
28%–52%55%–55%0%–60%
0%–70%
13%–37%0%–5%19%–100%

Long-term debt

Notes:(1) These inputs are mainly used for determining the fair values of securitization products such as CDO, CLO and ABS, other than RMBS
and CMBS.
(2) This input is mainly used for determining the fair values of Japanese corporate bonds and foreign corporate bonds.
(3) Internal valuation model includes discounted cash flow models and the Black-Scholes option pricing model.
(4) This input represents the counterparty default rate derived from the MHFG Group’s own internal credit analysis.
(5) The majority of the fair value of credit derivatives in Level 3 relates to credit derivatives economically hedging the credit risk in certain
securitization products. The unobservable inputs of these credit derivatives have already been included in the unobservable inputs related
to Trading securities and Available-for-sale securities disclosed above.
IR = Interest rate
FX = Foreign exchange

F-97

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Sensitivity to unobservable inputs and interrelationship between unobservable inputs
The following is a description of the sensitivities and interrelationships of the significant unobservable inputs
used to measure the fair values of Level 3 assets and liabilities.
(1) Prepayment rate
The prepayment rate is the estimated rate at which voluntary unscheduled repayments of the principal of theunderlying assets are expected to occur. The movement of the prepayment rate is generally negatively correlatedwith borrower delinquency. A change in prepayment rate would impact the valuation of the fair values offinancial instruments either positively or negatively, depending on the structure of financial instruments.
(2) Default rate
The default rate is an estimate of the likelihood of not collecting contractual payments. An increase in the default
rate would generally be accompanied by a decrease in the recovery rate and an increase in the discount margin. It
would also generally impact the valuation of the fair values of financial instruments negatively.
(3) Recovery rate
The recovery rate is an estimate of the percentage of contractual payments that would be collected in the event ofa default. An increase in recovery rate would generally be accompanied by a decrease in the default rate. It would
also generally impact the valuation of the fair values of financial instruments positively.
(4) Discount margin
The discount margin is the portion of the interest rate over a benchmark market interest rate such as LIBOR or
swap rates. It primarily consists of a risk premium component which is the amount of compensation that market
participants require due to the uncertainty inherent in the financial instruments’ cash flows resulting from credit
risk. An increase in discount margin would generally impact the valuation of the fair values of financial
instruments negatively.
(5) Correlation
Correlation is the likelihood of the movement of one input relative to another based on an establishedrelationship. The change in correlation would impact the valuation of derivatives either positively or negatively,
depending on the nature of the underlying assets.
(6) Volatility
Volatility is a measure of the expected change in variables over a fixed period of time. Some financial
instruments benefit from an increase in volatility and others benefit from a decrease in volatility. Generally, for along position in an option, an increase in volatility would result in an increase in the fair values of financial
instruments.
Items measured at fair value on a nonrecurring basis
Certain assets and liabilities are measured at fair value on a nonrecurring basis and are not included in the tables
above. These assets and liabilities primarily include items that are measured at the lower of cost or fair value, and
F-98

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
items that were initially measured at cost and have been written down to fair value as a result of impairment. The
following table shows the fair value hierarchy for these items as of March 31, 2013 and 2014.
2013

Total

Level 1

Level 2 Level 3(in billions of yen)

Assets:Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans held-for-sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . .

222
5
11
1

—
—
—
—

—

Total assets at fair value on a nonrecurring basis . . . . . . . . . . . . .

239

—

2014

Total

Level 1Aggregate cost

—
—

222
—
11
1

343
5
16
5

5

234

369

Level 2

Level 3Aggregate cost5(in billions of yen)

Assets:Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans held-for-sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124
33
5
1
—

—
—
—
—
—

—
—
—
—
—

124
33
5
1
—

208
34
6
2
4

Total assets at fair value on a nonrecurring basis . . . . . . . . . . . . .

163

—

—

163

254

Loans in the table above have been impaired and measured based upon the fair value of the underlying collateral.
Loans held-for-sale in the table above are accounted for at the lower of cost or fair value at the end of the period.
The items for which fair values are determined by using actual or contractually determined selling price data areclassified as Level 2. Due to the lack of current observable market information, the determination of the fairvalues for items other than the aforementioned requires significant adjustment based upon management judgment
and estimation, which results in such items being classified in Level 3 of the hierarchy.
Other investments in the table above, which consist of certain equity method investments and non-marketable
equity securities, have been impaired and written down to fair value. The fair values of the impaired marketable
equity method investments are determined by their quoted market prices. As the securities are traded on an active
exchange market, they are classified as Level 1. The fair values of the impaired non-marketable equity securities,
which include non-marketable equity method investments, are determined primarily by using a liquidation value
technique. As significant management judgment or estimation is required in the determination of the fair valuesof non-marketable equity securities, they are classified as Level 3.
Premises and equipment—net in the table above have been impaired and written down to fair value.
Goodwill in the table above is entirely related to PT. Mizuho Balimor Finance reporting unit. Due to the declineof the fair value of the reporting unit, the carrying amount of the goodwill was reduced to its fair value and an
impairment loss was recognized. As the determination of fair value of the goodwill required significant
management judgment and estimation, the item is classified as Level 3.

F-99

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair value option
The MHFG Group elected the fair value option for certain eligible financial instruments described below.
Foreign currency denominated available-for-sale securities
Prior to the adoption of the fair value option in accordance with ASC 825, the changes in fair value of foreign
currency denominated available-for-sale securities had been accounted for in AOCI, while the changes in fairvalue caused by foreign exchange fluctuation of foreign currency denominated financial liabilities had beenaccounted for in earnings. The MHFG Group elected the fair value option for those securities to mitigate thevolatility in earnings due to the difference in the recognition of foreign exchange risk between available-for-salesecurities and financial liabilities. Following the election of the fair value option, these securities have beenreported as trading securities in Trading account assets.
Certain hybrid financial instruments
The MHFG Group issues structured notes as part of its client-driven activities. Structured notes are debt
instruments that contain embedded derivatives. The Group elected the fair value option for certain structured
notes to mitigate accounting mismatches and to achieve operational simplifications. Following the election of thefair value option, these structured notes continue to be reported in Long-term debt and interest on these structured
notes continues to be reported in Interest expense on long-term debt based on the contractual rates. The
differences between the aggregate fair value of these structured notes for which the fair value option has been
elected and the aggregate unpaid principal balance of such instruments were ¥9 billion and ¥14 billion atMarch 31, 2013 and 2014, respectively. The net unrealized gains (losses) resulting from changes in fair values ofthese structured notes of ¥(30) billion and ¥4 billion, which included the fair value changes attributable tochanges in the Group’s own credit risk, were recorded in Other noninterest income (expenses) for the fiscal years
ended March 31, 2013 and 2014, respectively.
Fair value of financial instruments
ASC 825 requires the disclosure of the estimated fair value of financial instruments. The fair value of financial
instruments is the amount that would be exchanged between willing parties, other than in a forced sale or
liquidation. Quoted market prices, if available, are best utilized as estimates of the fair values of financial
instruments. However, since no quoted market prices are available for certain financial instruments, fair values
for such financial instruments have been estimated based on management’s assumptions, discounted cash flow
models or other valuation techniques. Such estimation methods are described in more detail below. Theseestimates could be significantly affected by different sets of assumptions. There are certain limitations tomanagement’s best judgment in estimating fair values of financial instruments and inherent subjectivity involvedin estimation methodologies and assumptions used to estimate fair value. Accordingly, the net realizable or
liquidation values could be materially different from the estimates presented below.
ASC 825 does not require the disclosure of the fair value of nonfinancial instruments.
The following is a description of the valuation methodologies used for estimating the fair value for financial
assets and liabilities not carried at fair value on the MHFG Group’s consolidated balance sheets.

F-100

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Cash and due from banks, call loans and funds sold, and receivables under resale agreements and securities
borrowing transactions
The carrying value of short-term financial assets, such as cash and due from banks, interest-bearing deposits inother banks, call loans and funds sold, and receivables under resale agreements and securities borrowing
transactions approximates the fair value of these assets since they generally involve limited losses from credit
risk or have short-term maturities with interest rates that approximate market rates.
Investments
The fair value of held-to-maturity securities is determined primarily by using the same procedures, andtechniques described for trading securities and available-for-sale securities aforementioned in this section. The
fair value of other equity interests, which primarily comprise non-marketable equity securities, is not readily
determinable, and their carrying amounts of ¥537 billion and ¥526 billion at March 31, 2013 and 2014,
respectively, were not included in the disclosure.
Loans
Performing loans have been fair valued as groups of similar loans based on the type of loan, credit quality,
prepayment assumptions and remaining maturity. The fair value of performing loans is determined based on
discounted cash flows using interest rates approximating the MHFG Group’s current rates for similar loans. The
fair value of impaired loans is determined based on either discounted cash flows incorporating the Group’s best
estimate of the expected future cash flows or the fair value of the underlying collateral, if impaired loans arecollateral dependent.
Other financial assets
The carrying value of other financial assets, which primarily consist of accounts receivable from brokers, dealers,and customers for securities transactions, accrued income and collateral provided for derivative transactions,approximates the fair value of these assets since they generally involve limited losses from credit risk or haveshort-term maturities with interest rates that approximate market rates. The majority of other financial assets isclassified as Level 2, and included in the table of Note 12 “Other assets and liabilities”.
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements andsecurities lending transactions
The carrying value of short-term financial liabilities, such as noninterest-bearing deposits, call money and funds
purchased, and payables under repurchase agreements and securities lending transactions approximates the fairvalue of these liabilities since they generally have short-term maturities with interest rates that approximate
market rates.
Interest-bearing deposits
The carrying value of demand deposits approximates the fair value since it represents the amount payable on
demand at the balance sheet date. The fair value of time deposits and certificates of deposit is primarily estimatedbased on discounted cash flow analysis using current interest rates for instruments with similar maturities. The
carrying value of short-term certificates of deposit approximates the fair value.
F-101

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Due to trust accounts
The carrying value of due to trust accounts approximates the fair value since they generally have short-term
maturities with interest rates that approximate market rates.
Other short-term borrowings
The carrying value of the majority of short-term borrowings approximates the fair value since they generally
have short-term maturities with interest rates that approximate market rates. The fair value of certain borrowings
is estimated based on discounted cash flow analysis using interest rates approximating the MHFG Group’s
incremental borrowing rates for instruments with similar maturities.
Long-term debt
Long-term debt is fair valued using quoted market prices, if available. Otherwise, the fair value of long-term debt
is estimated based on discounted cash flow analysis using interest rates approximating the MHFG Group’s
incremental borrowing rates for instruments with similar maturities.
Other financial liabilities
The carrying value of other financial liabilities, which primarily consist of accounts payable to brokers, dealers,and customers for securities transactions, accrued expenses and collateral accepted for derivative transactions,approximates the fair value since they generally have short-term maturities with interest rates that approximate
market rates. The majority of other financial liabilities is classified as Level 2, and included in the table of Note
12 “Other assets and liabilities”.
The fair value of certain off-balance-sheet financial instruments, such as commitments to extend credit andcommercial letters of credit, is not considered material to the consolidated balance sheets at March 31, 2013 and
2014.

F-102

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows the carrying amounts and fair values at March 31, 2013 and 2014, of certain financial
instruments, excluding financial instruments which are carried at fair value on a recurring basis and those outside
the scope of ASC 825 such as the equity method investments and lease contracts as defined in ASC 840,
“Leases” (“ASC 840”) :Carrying
amount2013
Estimated fair value
Total
Level 1
Level 2(in billions of yen)

Financial assets:
Cash and due from banks, call loans and funds sold, andreceivables under resale agreements and securities
borrowing transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans, net of allowance for loan losses (Note) . . . . . . . . . . . . .

27,5833,000
69,02827,5833,020
70,261

903
3,020
—

26,680————70,261

Financial liabilities:
Noninterest-bearing deposits, call money and funds
purchased, and payables under repurchase agreements andsecurities lending transactions . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due to trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48,04887,247
619
6,724
8,235

48,04887,210
619
6,723
8,598

12,796
34,596———35,252
52,614
619
6,723
7,967

—
—
—
—
631

Carrying
amount2014
Estimated fair value
Total
Level 1
Level 2(in billions of yen)

Financial assets:
Cash and due from banks, call loans and funds sold, andreceivables under resale agreements and securities
borrowing transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans, net of allowance for loan losses (Note) . . . . . . . . . . . . .

34,5634,040
72,801

34,563
4,058
73,975

1,437
4,058
—

33,126————
73,975

Financial liabilities:
Noninterest-bearing deposits, call money and funds
purchased, and payables under repurchase agreements andsecurities lending transactions . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due to trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44,12488,744
742
6,024
9,176

44,12488,705
742
6,024
9,441

13,54337,394———30,581
51,311
742
6,024
8,600

—
—
—
—
841

Note: Loans, net of allowance for loan losses include items measured at fair value on a nonrecurring basis.

F-103

Level 3

Level 3

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
29. Offsetting of financial assets and financial liabilities
Derivatives
The MHFG Group enters into master netting arrangements such as International Swaps and Derivatives
Association, Inc. (“ISDA”) or similar agreements with counterparties to manage mainly credit risks associatedwith counterparty default. If the predetermined events including counterparty default occur, these enforceable
master netting arrangements or similar agreements give the Group the right to offset derivative receivables andderivative payables and related financial collateral such as cash and securities with the same counterparty.
Repurchase and resale agreements and securities lending and borrowing transactions
Repurchase and resale agreements and securities lending and borrowing transactions are generally covered byindustry standard master repurchase agreements and industry standard master securities lending agreements withnetting terms to manage mainly credit risks associated with counterparty default. In the event of default by thecounterparty, these agreements with netting terms provide the Group with the right to offset receivables andpayables related to such transactions with the same counterparty, and to liquidate the collateral held.

F-104

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables provide information about the offsetting of financial assets and financial liabilities at
March 31, 2013 and 2014. The tables include derivatives, repurchase and resale agreements, and securities
lending and borrowing transactions that are subject to enforceable master netting arrangements or similar
agreements irrespective of whether or not they are offset on the Group’s consolidated balance sheets.
Amounts not offset on
the balance sheet(3)Gross amounts
recognized

Gross amounts
Net amounts
offset on the presented on the
Financial
CashNetbalance sheet balance sheet(2) instruments(4) collateral amounts(in billions of yen)
2013
Assets (1):
Derivatives . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under resale agreements . . . .
Receivables under securities borrowing
transactions . . . . . . . . . . . . . . . . . . . . . .

13,0198,869——

13,0198,869

11,289
8,812

446
—

1,284
57

5,544

—

5,544

5,534

—

10

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27,432—

27,432

25,635446

1,351

Derivatives . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under repurchase agreements . . .
Payables under securities lendingtransactions . . . . . . . . . . . . . . . . . . . . . .

12,712
17,397——

12,712
17,397

11,234
17,280

653
—

825
117

11,326—

11,326

11,320—6

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41,435—41,43539,834

653

948

2014
Assets (1):
Derivatives . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under resale agreements . . . .
Receivables under securities borrowing
transactions . . . . . . . . . . . . . . . . . . . . . .

9,880
8,236

—
—

9,880
8,236

8,702
8,200

406
—

772
36

4,990

—

4,990

4,978

—

12

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23,106—

23,106

21,880406820

Derivatives . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under repurchase agreements . . .
Payables under securities lendingtransactions . . . . . . . . . . . . . . . . . . . . . .

9,648
16,690——9,648
16,6908,621
16,667

431
—

596
23

6,085

—

6,085

6,082

—

3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32,423—32,42331,370431

622

Liabilities (1):Liabilities (1):Notes:(1) Amounts relating to master netting arrangements or similar agreements where the Group does not have thelegal right of set-off or where uncertainty exists as to the enforceability of these agreements are excluded.
For derivatives, the table includes amounts relating to over-the-counter (“OTC”) and OTC-cleared
derivatives that are subject to enforceable master netting arrangements or similar agreements.
(2) Derivative assets and liabilities are recorded in Trading account assets and Trading account liabilities,
respectively.
(3) Amounts do not exceed the net amounts presented on the balance sheet and do not include the effect ofovercollateralization, where it exists.
(4) For derivatives, amounts include derivative assets or liabilities and securities collateral that are eligible foroffsetting under enforceable master netting arrangements or similar agreements.
F-105

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
30. Related party transactions
Transactions with directors, executive officers, and their associates
The banking subsidiaries of MHFG make loans to the MHFG Group’s directors, executive officers, and theirassociates in their ordinary course of business. At March 31, 2013 and 2014, outstanding loans to such relatedparties were not considered significant. These related party loans were made on substantially the same terms,
including interest rate and collateral, as those prevailing at the same time for comparable transactions withunrelated parties. At March 31, 2013 and 2014, there were no loans to these related parties that were considered
impaired.
Other transactions, such as deposits, were entered into between MHFG’s subsidiaries and the MHFG Group’s
directors, executive officers, and their associates during the fiscal years ended March 31, 2012, 2013 and 2014.
The outstanding amounts of these transactions, which were made in the ordinary course of business with terms
equivalent to those with unrelated parties, were not considered significant.
Transactions with other related parties
A number of transactions were entered into with other related parties, such as MHFG’s employees and affiliates
accounted for under the equity method. These transactions included loans, deposits, and other banking services.
They were not significant in amount and were conducted with substantially the same terms as those forcomparable transactions with unrelated parties.
31. Business segment information
Under U.S. GAAP, companies report segment information based on the way management disaggregates thecompany for making operating decisions. The MHFG Group’s operating segments are based on the nature of the
products and services provided, the type of customer and the Group’s management organization. The businesssegment information set forth below is derived from the internal management reporting systems used bymanagement to measure the performance of the Group’s business segments. The management measures theperformance of each of the operating segments primarily in terms of “net business profits” in accordance withinternal managerial accounting rules and practices. Net business profits is used in Japan as a measure of the
profitability of core banking operations, and is defined as gross profits (or the sum of net interest income,fiduciary income, net fee and commission income, net trading income and net other operating income) lessgeneral and administrative expenses. Measurement by net business profits is required for regulatory reporting to
the Financial Services Agency. Therefore, the format and information are presented primarily on the basis ofJapanese GAAP and are not consistent with the consolidated financial statements prepared in accordance with
U.S. GAAP. A reconciliation is provided for the segments’ total net business profits with Income before income
tax expense under U.S. GAAP.
Beginning on April 1, 2013, the MHFG Group moved to a new group operational structure and established ten
business units such as Personal Banking, Retail Banking, Corporate Banking (Large Corporations), etc., andhead-office coordination divisions to determine strategies and initiatives across the group-wide banking, trust
banking, securities, and other business areas, based on the ten business units across MHBK (the former MHBK
and the former MHCB merged on July 1, 2013), MHTB, MHSC, etc. The MHFG Group realigned the reportablesegments to reflect the new organizational structure.
The MHFG Group engages in banking, trust banking, securities, and other businesses through its subsidiaries andaffiliates. As these subsidiaries and affiliates are in different industries and regulatory environments, MHFG
F-106

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
discloses business segment information based on the relevant principal consolidated subsidiaries such as MHBK
(the former MHBK and the former MHCB), MHTB, and MHSC for investors to measure the present and future
cash flows properly.
Operating segments of MHBK are aggregated based on the type of customer characteristics, and are aggregatedinto the following seven reportable segments: Personal Banking; Retail Banking; Corporate Banking (Large
Corporations); Corporate Banking; Financial Institutions & Public Sector Business; International Banking; andTrading and others.
MHBK
Personal Banking
This segment provides financial products and services, such as housing loans, deposits, investment trusts, andindividual insurance to individual customers through MHBK’s nationwide branches and ATM network as well as
telephone and the internet banking services. In addition, this segment handles trust products as an agent of
MHTB.
Retail Banking
This segment provides financial products and services, such as comprehensive consulting services of businesssuccession and asset inheritance and asset management for business owners and high-net-worth customers. This
segment also provides overall banking services for SMEs.
Corporate Banking (Large Corporations)This segment provides a full range of financial solutions on a global basis to Japanese large corporations andtheir affiliates by integrating the Group’s specialty functions including banking, trust, and securities, based onsolid relationships with MHBK’s domestic customers, and by utilizing its global industry knowledge.
Corporate Banking
This segment provides, to larger SMEs, financial products and services including a range of solution businesses
in accordance with the growth strategy of MHBK’s corporate customers. This segment provides solutions forstable fund-raising, mergers and acquisitions, and initial public offerings for customers in their start-up or growthstages, and management buy-out, business succession, entry to new business, and business restructuring forcustomers in mature or transition stages.
Financial Institutions & Public Sector BusinessThis segment provides advisory services and solutions such as advice on financial strategy and risk management
to financial institutions and provides comprehensive financial products and services that include funding support
via the subscription and underwriting of bonds etc., to public sector entities.
International Banking
This segment provides unified support both in Japan and overseas for MHBK’s Japanese corporate customers to
expand their overseas operations, and also promotes business with non-Japanese corporate customers in various
countries through its global network. Further, this segment offers products such as project finance and tradefinance for overseas customers.
F-107

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Trading and others
This segment provides derivatives and other risk hedging products to satisfy MHBK’s customers’ financial andbusiness risk control requirements. It is also engaged in MHBK’s proprietary trading, such as foreign exchange
and bond trading, and asset and liability management. This segment also includes costs incurred by the head
office functions of MHBK.
MHTBMHTB provides products and services related to trust, real estate, securitization and structured finance, pension
and asset management, and stock transfers.
MHSC
MHSC provides full-line securities services to corporations, financial institutions, public sector entities, andindividuals.
OthersThis segment consists of MHFG, its subsidiaries other than MHBK, MHTB, and MHSC, and its equity-method
affiliates. They provide a wide range of customers with their various products and services such as those related
to trust and custody, asset management, and private banking through companies such as TCSB, Mizuho AssetManagement Co., Ltd., DIAM Co., Ltd. (an equity-method affiliate), and Mizuho Private Wealth Management
Co., Ltd. This segment also provides non-banking services, including research and consulting services throughMizuho Research Institute Ltd., information technology-related services through Mizuho Information &Research Institute, Inc., and advisory services to financial institutions through Mizuho Financial Strategy Co.,Ltd.
The information below for reportable segments is derived from the internal management reporting systems.
Management does not use information on segments’ assets to allocate resources and assess performance and has
not prepared information on segment assets. Accordingly, information on segment assets is not available.
The former MHBK (Consolidated)
The former
MHIS(Consolidated) Others

The former MHBK (Non-consolidated)

2012(1)

Total

Financial
Corporate
Institution
Banking& Public Trading
Personal Retail(LargeCorporate Sector
andBanking Banking Corporations) Banking Business others
Total
(a)
(b)
(c)
(d)
(e)
(f)

(g)

(h)

(in billions of yen)
Gross profits:
Net interest income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583.9
Net noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305.8

545.4
253.3

224.3
32.1

95.1
41.0

17.8
19.0

118.6
68.2

22.2
8.6

67.4
84.4

0.7
43.9

37.8
8.6

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889.7 798.7
General and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 608.5 556.4
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.0)
—

256.4

136.1

36.8

186.8

30.8

151.8

44.6

46.4

218.6
—

108.2
—

18.5
—

86.4
—

14.5
—

110.2
—

40.9
—

11.2
(14.0)

37.8

27.9

18.3

100.4

16.3

41.6

3.7

21.2

Net business profits (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267.2

242.3

F-108

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
MHTB
MHFG
(Consolidated) Others (Consolidated)

The former MHCB (Consolidated)
The former
MHSC(Consolidated) Others

The former MHCB (Non-consolidated)

2012(1)

Total

Financial
Corporate
Institution
Banking& Public
Inter- Trading(LargeCorporate Sector national andCorporations) Banking Business Banking others
Total
(i)
(j)
(k)
(l)
(m)

(n)

(o)

(p)

(q)

Total

(in billions of yen)
Gross profits:
Net interest income (expense) . . . . . . 468.3
Net noninterest income . . . . . . . . . . . 449.4

395.0
286.8

150.6
114.4

2.7
1.1

18.1
15.8

90.3
86.9

133.3
68.6

(8.1)
151.7

81.4
10.9

42.5
104.8

(6.4)
54.8

1,088.3
914.8

Total . . . . . . . . . . . . . . . . . . . . . . 917.7 681.8
General and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . . . 465.4 244.9
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52.1)
—

265.0

3.8

33.9

177.2

201.9

143.6

92.3

147.3

48.4

2,003.1

75.6
—

1.3
—

11.6
—

60.3
—

96.1
—

192.9
(0.1)

27.6
(52.0)

92.3
(3.7)

40.1
(7.9)

1,206.3(77.7)

189.4

2.5

22.3

116.9

105.8

(49.4)

12.7

51.3

0.4

719.1

Net business profits (losses) . . . . . . . . 400.2

436.9

The former MHBK (Consolidated)
The former MHBK (Non-consolidated)

2013(1)(2)(4)

Personal
RetailBanking Banking
Total Total(a)(b)

Corporate
Banking(LargeCorporations)(c)OthersFinancial
Institution& Public
Corporate
SectorBanking
Business(d)(e)

Tradingandothers(f)(g)(in billions of yen)
Gross profits:
Net interest income (expense) . . . . . .
Net noninterest income . . . . . . . . . . .

550.6
360.3

513.8
313.7

219.2
33.9

83.3
42.3

14.9
19.3

106.1
70.7

19.9
11.0

70.4
136.5

36.8
46.6

Total . . . . . . . . . . . . . . . . . . . . .
General and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . .

910.9

827.5

253.1

125.6

34.2

176.8

30.9

206.9

83.4

568.2 524.4(7.4) —

218.6
—

113.7
—

11.6
—

73.2
—

14.3
—

93.0
—

43.8
(7.4)

Net business profits (losses) . . . . . . .

335.3

34.5

11.9

22.6

103.6

16.6

113.9

32.2

303.1

MHTB
MHFG
(Consolidated) Others (Consolidated)

The former MHCB (Consolidated)
MHSC(Consolidated) Others

The former MHCB (Non-consolidated)

2013(1)(2)(4)

Total

Financial
Corporate
Institution
Banking& Public
Inter- Trading(LargeCorporate Sector national andCorporations) Banking Business Banking others
Total
(h)
(i)
(j)
(k)
(l)

(m)

(n)

(o)

(p)

Total

(in billions of yen)
Gross profits:
Net interest income (expense) . . . . .
Net noninterest income . . . . . . . . . .

401.7
333.4

140.9
103.3

0.5
0.2

16.3
13.2

108.2
104.7

135.8
112.0

(1.8)
229.0

86.2
10.4

39.5
105.0

(0.3)
57.7

1,075.9
1,095.8

Total . . . . . . . . . . . . . . . . . . . . . . . . 1,058.9 735.1
General and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . 471.9 241.1
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . (50.0)
—

244.2

0.7

29.5

212.9

247.8

227.2

96.6

144.5

57.4

2,171.7

76.8
—

1.3
—

12.2
—

66.6
—

84.2
—

197.1
—

33.7
(50.0)

90.1
(3.5)

40.8
(27.6)

1,171.0(88.5)

167.4

(0.6)

17.3

146.3

163.6

30.1

12.9

50.9

(11.0)

912.2

Net business profits (losses) . . . . . .

486.1
572.8

537.0

494.0

F-109

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
MHTB
MHSC
MHFG
(Consolidated) (Consolidated) Others (Consolidated)

MHBK (Consolidated)

2014(1)(2)(3)(4)

Total

MHBK (Non-consolidated)

OthersFinancial
Corporate
Institution
Banking& Public Inter- Trading
Personal Retail(LargeCorporate Sector national andBanking Banking Corporations) Banking Business Banking others
Total
(a)
(b)
(c)
(d)
(e)
(f)
(g)

(h)

(i)

(j)

(k)

Total

1,108.3(in billions of yen)
Gross profits:
Net interest income . . . . . . . . . . . . . .
Net noninterest income(expenses) . . . . . . . . . . . . . . . . . . .

933.8

800.1

165.0

59.8

170.2

77.9

30.7

128.9

167.6

133.7

40.2

2.9

131.4

407.4

398.2

32.9

34.8

126.7

51.8

20.1

139.8

(7.9)

9.2

108.1

283.9

127.6

927.0

Total . . . . . . . . . . . . . . . . . . . . . 1,341.2 1,198.3
General and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . . 711.3
659.0
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . (56.1)
—

197.9

94.6

296.9

129.7

50.8

268.7

159.7

142.9

148.3

286.8

259.0

2,035.3

171.3
—

87.8
—

83.8
—

58.8
—

25.1
—

82.5
—

149.7
—

52.3
(56.1)

90.9
(2.9)

246.2
—

180.9
(2.7)

1,229.3(61.7)

26.6

6.8

213.1

70.9

25.7

186.2

10.0

34.5

54.5

40.6

75.4

744.3

Net business profits . . . . . . . . . . . . . .

573.8

539.3

Notes:(1) As for the fiscal year ended March 31, 2012, “Others (h)”, “Others (o)”, and “Others (q)” include elimination of transactions between consolidated subsidiaries. As for the
fiscal year ended March 31, 2013, “Others (g)”, “Others (n)”, and “Others (p)” include elimination of transactions between consolidated subsidiaries. As for the fiscal year
ended March 31, 2014, “Others (h)” and “Others (k)” include elimination of transactions between consolidated subsidiaries.
(2) Beginning on April 1, 2013, the MHFG Group moved to a new group operational structure and realigned the reportable segments to reflect the new organizational structure.
In addition, new allocation methods have been applied to the calculation of “Gross profits” and “General and administrative expenses”. Figures for the fiscal year ended
March 31, 2013 have been reclassified under the new allocation methods. The effect of the change of allocation methods is not significant.
(3) As for the fiscal year ended March 31, 2014, “MHBK (Non-consolidated)” represents the sum of the performance of the former MHCB for the first quarter and the new
MHBK for the second, third, and fourth quarters, while “Others (h)” includes the performance of the former MHBK for the first quarter, in light of the merger of the former
MHBK and the former MHCB conducted in July 2013.
(4) Beginning on April 1, 2013, MHSC was turned into a directly-held subsidiary of MHFG. As for the fiscal year ended March 31, 2013, “MHSC (Consolidated) (m)”represents the performance of the former MHSC for the first three quarters and the new MHSC for the fourth quarter, while “Others (g)” includes the performance of theformer MHIS for the first three quarters. As for the fiscal year ended March 31, 2014, “MHSC (Consolidated) (j)” represents the performance of the new MHSC, in light ofthe merger of the former MHSC and the former MHIS conducted in January 2013.

Aggregation of MHBK and MHCBMHBK and MHCB

2012

Personal
RetailBanking Banking(a)(b)

Corporate
Banking(LargeCorporations)(c)Financial
Institution& Public
Corporate
SectorBanking
Business(d)(e)

International
Banking(f)

Tradingandothers(g)

Total(in billions of yen)
Gross profits:
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

224.3
32.1

95.1
41.0

168.4
133.4

121.3
69.3

40.3
24.4

90.3
86.9

200.7
153.0

940.4
540.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

256.4
218.6
—

136.1
108.2
—

301.8
94.1
—

190.6
87.7
—

64.7
26.1
—

177.2
60.3
—

353.7
206.3
—

1,480.5
801.3—

Net business profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

37.8

27.9

207.7

102.9

38.6

116.9

147.4

679.2

F-110

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
MHBK and MHCB

2013

Personal
RetailBanking Banking(a)(b)

Corporate
Banking(LargeCorporations)(c)Financial
Institution& Public
Corporate
SectorBanking
Business(d)(e)

International
Banking(f)

Tradingandothers(g)

Total(in billions of yen)
Gross profits:
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

219.2
33.9

83.3
42.3

155.8
122.6

106.6
70.9

36.2
24.2

108.2
104.7

206.2
248.5

915.5
647.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

253.1
218.6
—

125.6
113.7
—

278.4
88.4
—

177.5
74.5
—

60.4
26.5
—

212.9
66.6
—

454.7
177.2
—

1,562.6
765.5—

Net business profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34.5

11.9

190.0

103.0

33.9

146.3

277.5

797.1

International
Banking(f)

Tradingandothers(g)

Total

MHBK and MHCB

2014

Personal
RetailBanking Banking(a)(b)

Corporate
Banking(LargeCorporations)(c)Financial
Institution& Public
Corporate
SectorBanking
Business(d)(e)(in billions of yen)

Gross profits:
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

218.5
41.6

80.0
45.3

172.7
131.4

103.3
64.7

35.4
22.3

128.9
139.8

185.0
15.2

923.8
460.3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

260.1
226.4
—

125.3
116.7
—

304.1
87.2
—

168.0
77.7
—

57.7
29.0
—

268.7
82.5
—

200.2
171.6
—

1,384.1
791.1—

Net business profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33.7

8.6

216.9

90.3

28.7

186.2

28.6

593.0

Note: The former MHBK and the former MHCB merged on July 1, 2013. Figures for the fiscal years ended March 31, 2012 and 2013 represent thesimple aggregation of the performance of the former MHBK and the former MHCB, and figures for the fiscal year ended March 31, 2014
represent the simple aggregation of the performance of the former MHBK and the former MHCB for the first quarter, and the new MHBK forthe second, third, and fourth quarters. Beginning on April 1, 2013, the MHFG Group moved to a new group operational structure and realigned
the reportable segments to reflect the new organizational structure. In addition, new allocation methods have been applied to the calculation of“Gross profits” and “General and administrative expenses”. Figures for the fiscal year ended March 31, 2013 have been reclassified under the
new allocation methods.

F-111

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Reconciliation
As explained above, the measurement base for the internal management reporting system and the income andexpenses items covered are different from the accompanying consolidated statements of income. Therefore, it isimpracticable to present reconciliations of all the business segments’ information, other than net business profits,
to corresponding items in the accompanying consolidated statements of income. A reconciliation of total net
business profits under the internal management reporting system for the fiscal years ended March 31, 2012,2013, and 2014 presented above to Income before income tax expense shown on the consolidated statements ofincome is as follows:
2012
2013
2014
(in billions of yen)

Net business profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

719.1

U.S. GAAP adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Provision) credit for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gains (losses) related to equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-recurring personnel expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains on disposal of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Provision) credit for losses on off-balance-sheet instruments . . . . . . . . . . . . . . . . . . . . .
Others—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

87.2 129.2 (325.4)
23.0 (139.9) 126.2(90.5)
28.2 178.7(39.3) (23.5) (14.8)
19.9
12.4
10.5
1.2
(4.6) (12.1)(57.8) (28.8)
18.9

Income before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

662.8

F-112

912.2

885.2

744.3

726.3

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
32. Foreign activities
The following table presents consolidated income statement and total assets information by major geographic
area. Foreign activities are defined as business transactions that involve customers residing outside of Japan.
However, as the MHFG Group’s operations are highly integrated globally, estimates and assumptions have been
made for an allocation among the geographic areas.

Japan

Asia/Oceania
excludingJapan,
Americas
Europeand others(in billions of yen)

Total

Fiscal year ended March 31, 2012:
Total revenue (1) . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses (2) . . . . . . . . . . . . . . . . . . . . . . . .

1,965.7
1,561.2

251.3
104.0

132.0
102.9

178.2
96.3

2,527.2
1,864.4

Income before income tax expense . . . . . . . . . .

404.5

147.3

29.1

81.9

662.8

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .

419.2

131.2

28.1

70.5

649.0

Total assets at end of fiscal year . . . . . . . . . . . .

124,443.6

25,368.9

8,868.5

7,680.6

166,361.6

Fiscal year ended March 31, 2013:
Total revenue (1) . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses (2) . . . . . . . . . . . . . . . . . . . . . . . .

2,190.7
1,668.9

383.7
140.5

125.8
48.4

162.6
119.8

2,862.8
1,977.6

Income before income tax expense . . . . . . . . . .

521.8

243.2

77.4

42.8

885.2

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .

524.7

252.3

75.0

29.2

881.2

Total assets at end of fiscal year . . . . . . . . . . . .

126,768.8

31,168.8

10,591.2

10,218.2

178,747.0

Fiscal year ended March 31, 2014:
Total revenue (1) . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses (2) . . . . . . . . . . . . . . . . . . . . . . . .

1,783.9
1,397.3

349.9
144.6

152.9
96.3

218.9
141.1

2,505.6
1,779.3

Income before income tax expense . . . . . . . . . .

386.6

205.3

56.6

77.8

726.3

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .

198.9

189.7

54.0

57.6

500.2

Total assets at end of fiscal year . . . . . . . . . . . .

124,557.7

27,527.8

10,784.5

12,829.3

175,699.3

Notes:(1) Total revenue is comprised of Interest and dividend income and Noninterest income.
(2) Total expenses are comprised of Interest expense, Provision (credit) for loan losses and Noninterest
expenses.

F-113

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
33. Mizuho Financial Group, Inc., parent company
The following tables present the parent company only financial information of MHFG:
Condensed balance sheets
2013
2014
(in millions of yen)

Assets:Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in subsidiaries and affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

200
26,165
6,962,630
152,351

167
17,1037,501,486
210,622

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,141,346

7,729,378

Liabilities and shareholders’ equity:
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,146,995 1,061,460
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
240,000
240,000
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,23149,448
Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,728,120 6,378,470
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,141,346

7,729,378

Condensed statements of income
2012

Income:Dividends from subsidiaries and affiliated companies . . . . . . . . . . . . . . . . . .
Management fees from subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2013
2014
(in millions of yen)

7,955 233,056 285,130
29,747
28,83531,146
12,643
34,66833,894

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50,345296,559

350,170

Expenses:
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21,26016,383
1,431

21,075
15,8701,207

22,592
14,608
5,724

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39,074

38,152

42,924Equity in undistributed net income of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . .

645,308

617,565

191,865

Income before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 656,579 875,972 499,111
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
190
560
627
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-114

656,389875,412498,484

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Condensed statements of cash flows
2012

Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2013
2014
(in millions of yen)

656,389 875,412 498,484(644,977) (685,149) (222,940)

Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . .

11,412

190,263

275,544

Cash flows from investing activities:
Payments for purchases of securities of subsidiaries . . . . . . . . . . . . . . . . . .
Net change in other investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(212)
80

—
1,570

—
2,631

Net cash provided by (used in) investing activities . . . . . . . . . . . . . . .

(132)

1,570

2,631

Cash flows from financing activities:
Net change in short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60,000(40,000) (90,000)
Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . 146,499——
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,560)(7) (37,013)
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (215,937) (152,542) (152,163)
Net change in other financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
730
749
968
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . .

(11,268) (191,800) (278,208)

Net increase (decrease) in cash and due from banks . . . . . . . . . . . . . . . . . . . . . .
Cash and due from banks at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . .

12
155

33
167

(33)
200

Cash and due from banks at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . .

167

200

167

34. Subsequent events
Redemption of preferred securities
On June 30, 2014, preferred securities, issued by the MHFG Group’s overseas special purpose companies, wereredeemed in full. These special purpose companies are not consolidated in accordance with ASC 810 since theGroup is not the primary beneficiary. Thus, the redemption of preferred securities did not reduce Noncontrollinginterests in consolidated subsidiaries, but reduced Long-term debt in the Group’s consolidated balance sheets.
The following table describes the details of the redeemed preferred securities.
IssuerAggregate
redemption amount(in millions)Reason for the redemption

Mizuho Capital Investment (USD) 2 Limited . . . . . . .
Mizuho Capital Investment (JPY) 5 Limited . . . . . . . .

$850
Series A ¥139,500

Arrival of optional redemption date
Arrival of optional redemption date

F-115

Signature
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has
duly caused and authorized the undersigned to sign this annual report on its behalf.
MIZUHO FINANCIAL GROUP, INC.
By: /s/ Yasuhiro Sato
Name: Yasuhiro Sato
Title: President & CEO
July 25, 2014

EXHIBIT INDEXExhibit
NumberDescription of Exhibits

1.1

Articles of Incorporation of Mizuho Financial Group, Inc., dated June 24, 2014 (English
Translation)

1.2

Regulations of the Board of Directors of Mizuho Financial Group, Inc., as amended on June 24,2014 (English Translation)

1.3

Share Handling Regulations of Mizuho Financial Group, Inc., dated January 4, 2013 (English
Translation)*

2.1

Form of American Depositary Receipt**

2.2

Form of Deposit Agreement among the registrant, The Bank of New York Mellon (formerly The
Bank of New York) as Depositary and all owners and holders from time to time of American
Depositary Receipts issued thereunder***8

List of significant subsidiaries of Mizuho Financial Group, Inc.—see “Item 4.C. Information on
the Company—Organizational Structure.”

11

Code of Ethics of Mizuho Financial Group, Inc.****

12.1

CEO Certification required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

12.2

CFO Certification required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

13.1

Certification required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) and Section 1350 of Chapter 63
of Title 18 of the United States Code (18 U.S.C. 1350).

101.INSXBRL Instance Document

101.SCHXBRL Taxonomy Extension Schema

101.CALXBRL Taxonomy Extension Calculation Linkbase

101.DEFXBRL Taxonomy Extension Definition Linkbase

101.LABXBRL Taxonomy Extension Label Linkbase

101.PREXBRL Taxonomy Extension Presentation Linkbase

*
**
***
****

Incorporated by reference to our annual report on Form 20-F (No. 001-33098) filed on July 23, 2013.
Incorporated by reference to our annual report on Form 20-F (No. 001-33098) filed on August 19, 2009.
Incorporated by reference to our registration statement on Form 20-F (No. 001-33098) filed on
October 19, 2006.
Incorporated by reference to our annual report on Form 20-F (No. 001-33098) filed on August 10, 2007.

Exhibit 1.1

ARTICLES OF INCORPORATIONOFMIZUHO FINANCIAL GROUP, INC.
June 24, 2014

[Translation]
ARTICLES OF INCORPORATIONOFMIZUHO FINANCIAL GROUP, INC.
CHAPTER I
GENERAL PROVISIONS
Article 1.

(Trade Name)

The company shall be called “Kabushiki Kaisha Mizuho Financial Group” and in English, “Mizuho
Financial Group, Inc.”(hereinafter referred to as the “Company”).
Article 2.

(Purpose)

The purpose of the Company shall be to engage in the following businesses as a bank holding company:(1) Operation and management of bank holding companies, banks, long-term credit banks, specialized
securities companies and other companies which may be owned by the Company as its subsidiaries
under the Banking Act; and(2) Any other business incidental to the foregoing.
Article 3.

(Head Office)

The Company shall have its head office in Chiyoda-ku, Tokyo.
Article 4.

(Organizations)

The Company shall establish the following organizations, in addition to the general meeting of shareholders
and Directors.
(1) Board of Directors;(2) Nominating Committee, Audit Committee, and Compensation Committee; and(3) Accounting Auditors.
Article 5.

(Method of Public Notices)

Public notices by the Company shall be given by electronic public notices; provided, however, that in thecase where an electronic public notice is impracticable due to an accident or any other unavoidable reason, thesame public notice of the Company may be given in the Nikkei.

1

CHAPTER IISHARES
Article 6.

(Total Number of Authorized Shares)

The total number of shares which the Company is authorized to issue shall be 52,214,752,000 shares, andeach total number of the classes of shares which the Company is authorized to issue shall be as set forth below;
provided, however, that the total number of the classes of shares which the Company is authorized to issue inrespect of the First to Fourth Series of Class XIV preferred stock shall not exceed nine hundred million(900,000,000) in total, the total number of the classes of shares which the Company is authorized to issue inrespect of the First to Fourth Series of Class XV preferred stock shall not exceed nine hundred million(900,000,000) in total, and the total number of the classes of shares which the Company is authorized to issue inrespect of the First to Fourth Series of Class XVI preferred stock shall not exceed fifteen hundred million(1,500,000,000) in total:
Common stock:
Class XI preferred stock:
First Series of Class XIV preferred stock:
Second Series of Class XIV preferred stock:
Third Series of Class XIV preferred stock:
Fourth Series of Class XIV preferred stock:
First Series of Class XV preferred stock:
Second Series of Class XV preferred stock:
Third Series of Class XV preferred stock:
Fourth Series of Class XV preferred stock:
First Series of Class XVI preferred stock:
Second Series of Class XVI preferred stock:
Third Series of Class XVI preferred stock:
Fourth Series of Class XVI preferred stock:
Article 7.

48,000,000,000 shares
914,752,000 shares
900,000,000 shares
900,000,000 shares
900,000,000 shares
900,000,000 shares
900,000,000 shares
900,000,000 shares
900,000,000 shares
900,000,000 shares
1,500,000,000 shares
1,500,000,000 shares
1,500,000,000 shares
1,500,000,000 shares(Number of Shares Constituting One (1) Unit of Shares)

The number of shares constituting one (1) unit of shares of the Company shall be one hundred (100) withrespect to the common stock and each class of preferred stock, respectively.
Article 8.

(Rights Pertaining to Shares Constituting Less Than One (1) Unit)

A shareholder of the Company may not exercise any rights, except for the rights set forth below (excluding
the rights which may not be exercised as the rights pertaining to shares constituting one (1) unit of shares), withrespect to shares constituting less than one (1) unit held by such shareholder:(1) The rights provided for in each item of Article 189, Paragraph 2 of the Companies Act of Japan (the“Act”);(2) The right to make a request pursuant to Article 166, Paragraph 1 of the Act;
(3) The right to receive an allotment of offered shares and offered stock acquisition rights in proportion to
the number of shares held by such shareholder; and(4) The right to make a request provided for in the following Article.

2Article 9.

(Additional Purchase of Shares Constituting Less Than One (1) Unit)

A shareholder of the Company may request the Company to sell to such shareholder a number of shares
which will, when combined with the shares constituting less than one (1) unit already held by such shareholder,
constitute one (1) unit of shares pursuant to the Share Handling Regulations.
Article 10.

(Record Date)

1.

The Company shall deem shareholders having voting rights appearing in writing or electronically in theregister of shareholders as of the end of March 31 of each year as the shareholders who are entitled toexercise their rights at the ordinary general meeting of shareholders for the relevant business year.

2.

The provisions of the preceding paragraph shall apply mutatis mutandis to the record date for voting
rights at the general meetings of holders of classes of stock, where there is a matter to be resolved at an
ordinary general meeting of shareholders that requires, in addition to such resolution, a resolution by
the relevant general meeting of holders of class of stock.

3.

In addition to the preceding two paragraphs, the Company may set an extraordinary record date, whennecessary, by a determination by Executive Officer(s) under the authority delegated by the Board of
Directors and upon giving a prior public notice thereof.

Article 11.

(Shareholder Register Manager, Etc.)

1.

The Company shall appoint a shareholder register manager.

2.

The shareholder register manager and its handling office shall be determined by a determination by
Executive Officer(s) under the authority delegated by the Board of Directors, and a public notice shallbe given with respect thereto.

3.

The preparation and keeping of, and other operations relating to, the register of shareholders and theregister of stock acquisition rights of the Company shall be entrusted to the shareholder registermanager and shall not be handled by the Company.

Article 12.

(Share Handling Regulations)

An entry, whether written or electronic, in the register of shareholders, a repurchase by the Company and an
additional purchase by a shareholder of shares constituting less than one (1) unit, and other operations relating toshares and handling fees therefor and the method of request or notice by shareholders with respect to general
meetings of shareholders shall be governed by the Share Handling Regulations prescribed by Executive
Officer(s) under the authority delegated by the Board of Directors, in addition to laws and regulations and these
Articles of Incorporation.
CHAPTER III
PREFERRED STOCK
Article 13.
1.

(Preferred Stock Dividends)

In respect of dividends from its surplus provided for in Article 48 (except for interim dividends provided forin the same Article), the Company shall distribute dividends from its surplus by cash on preferred stock(hereinafter referred to as the “Preferred Stock Dividends”) in such amount as provided for below toshareholders of preferred stock (hereinafter referred to as the “Shareholders of Preferred Stock”) or
registered stock pledgees in respect of preferred stock (hereinafter referred to as the “Registered Preferred
Stock Pledgees”) in priority to holders of common stock (hereinafter referred to as the “Shareholders of3

Common Stock”), registered stock pledgees in respect of common stock (hereinafter referred to as the“Registered Common Stock Pledgees”); provided, however, that in the case where all or a part of thePreferred Stock Interim Dividends provided for in Article 14 have been paid in the relevant business year,
the amount so paid shall be reduced accordingly:
Class XI preferred stock:

Amount decided by the resolution of theBoard of Directors on the issuance of suchstock, which amount shall not exceed 50 yen
per share per year

First to Fourth Series of Class XIV preferredstock:

Amount decided by the resolution of theBoard of Directors or the determination by
Executive Officer(s) under the authority
delegated by the Board of Directors on theissuance of such stock, which amount shall not
exceed 100 yen per share per year

First to Fourth Series of Class XV preferredstock:

Amount decided by the resolution of theBoard of Directors or the determination by
Executive Officer(s) under the authority
delegated by the Board of Directors on theissuance of such stock, which amount shall not
exceed 100 yen per share per year

First to Fourth Series of Class XVI preferredstock:

Amount decided by the resolution of theBoard of Directors or the determination by
Executive Officer(s) under the authority
delegated by the Board of Directors on theissuance of such stock, which amount shall not
exceed 100 yen per share per year2.

In a given business year, if all or a part of the Preferred Stock Dividends have not been paid to the
Shareholders of Preferred Stock or Registered Preferred Stock Pledgees, the unpaid amount shall not be
accumulated for the subsequent business years.

3.

The Company shall not distribute dividends from its surplus to any Shareholder of Preferred Stock orRegistered Preferred Stock Pledgee, any amount in excess of the amount of the relevant Preferred Stock
Dividends.

Article 14.

(Preferred Stock Interim Dividends)

In respect of interim dividends provided for in Article 48, the Company shall distribute dividends from its
surplus by cash in one half (1/2) of the amount of the Preferred Stock Dividends provided for in the main clauseof Paragraph 1 of the preceding Article (referred to as the “Preferred Stock Interim Dividends” in these Articles
of Incorporation) to the Shareholders of Preferred Stock or Registered Preferred Stock Pledgees in priority to the
Shareholders of Common Stock or Registered Common Stock Pledgees.
Article 15.
1.

(Distribution of Residual Assets)

In respect of distribution of residual assets, the Company shall pay to the Shareholders of Preferred Stock orRegistered Preferred Stock Pledgees in priority to the Shareholders of Common Stock or Registered
Common Stock Pledgees in such amount as provided for below:
Classes XI through the Fourth Series of ClassXVI preferred stock:4

1,000 yen per share2.

No distribution of residual assets other than those provided for in the preceding paragraph shall be made to
any Shareholder of Preferred Stock or Registered Preferred Stock Pledgee.

Article 16.

(Voting Rights)

The Shareholders of Preferred Stock shall not have voting rights at a general meeting of shareholders;provided, however, that the Shareholders of Preferred Stock may have voting rights from the date of an ordinary
general meeting of shareholders, in the case where a proposal on the Preferred Stock Dividends is not submitted
to such ordinary general meeting of shareholders (except in the case where a resolution of the Board of Directors
to pay the Preferred Stock Dividends is made pursuant to the provisions of Article 47 between the last day of thebusiness year and the date of such ordinary general meeting of shareholders), or immediately after the closing ofan ordinary general meeting of shareholders, in the case where a proposal on the Preferred Stock Dividends isrejected at such ordinary general meeting of shareholders, until such time as a resolution of the Board of
Directors to pay the Preferred Stock Dividends is made pursuant to the provisions of Article 47 or a resolution ofan ordinary general meeting of shareholders is passed to grant the Preferred Stock Dividends.
Article 17. (Consolidation or Split of Preferred Stock, Free Allotment of Stock and Rights to Receive Allotmentof Offered Stock, Etc.)
1.

The Company shall not consolidate or split any preferred stock, and shall not make any free allotment of any
stock for the Shareholders of Preferred Stock.

2.

The Company shall not grant the Shareholders of Preferred Stock any rights to receive allotment of offeredstock, offered stock acquisition rights, bonds with stock acquisition rights, or offered stock acquisition rights
and bonds, either of which are capable of being transferred separately from the others and shall not makeany free allotment of any stock acquisition rights for the Shareholder of Preferred Stock.

Article 18.

(Acquisition of Preferred Stock)1.

In respect of the First Series of Class XV through the Fourth Series of Class XVI preferred stock, theCompany may acquire each such class of preferred stock, in whole or in part, on the date separately
determined by a resolution of the Board of Directors or a determination by Executive Officer(s) under theauthority delegated by the Board of Directors, after such time and at such acquisition price as respectively
determined by a resolution of the Board of Directors or a determination by Executive Officer(s) under theauthority delegated by the Board of Directors relating to the issuance of the relevant preferred stock.

2.

In the case of a partial acquisition pursuant to the preceding paragraph, such redemption shall be made by
way of lot or pro rata allocation.

Article 19.

(Request for Acquisition of Preferred Stock)1.

Any holder of Class XI preferred stock may request to the Company to acquire the relevant preferred stock
held by such Shareholder of Preferred Stock during the period in which such Shareholder of Preferred Stockis entitled to request such acquisition as determined by a resolution of the Board of Directors relating to theissuance of the relevant preferred stock. The Company shall deliver its own common stock to such
Shareholder of Preferred Stock, in exchange for the Company’s acquisition of the relevant preferred stock.
The terms of acquisition, including the number of the common stock to be delivered per one (1) share of therelevant preferred stock upon such request for acquisition, shall be determined by the relevant resolution of
the Board of Directors.

2.

Any holder of the First to Fourth Series of Class XIV and the First to Fourth Series of Class XV preferredstock may request to the Company to acquire the relevant preferred stock held by such Shareholder ofPreferred Stock during the period in which such Shareholder of Preferred Stock is entitled to request such5acquisition as determined by a resolution of the Board of Directors or a determination by Executive
Officer(s) under the authority delegated by the Board of Directors relating to the issuance of the relevant
preferred stock (hereinafter, together with the period provided for in the preceding paragraph, referred to as
the “Period for Acquisition Request”). The Company shall deliver its own common stock to such
Shareholder of Preferred Stock, in exchange for the Company’s acquisition of the relevant preferred stock.
The terms of acquisition, including the number of the common stock to be delivered per one (1) share of therelevant preferred stock upon such request for acquisition, shall be determined by the relevant resolution of
the Board of Directors or the relevant determination by Executive Officer(s) under the authority delegatedby the Board of Directors.
Article 20.

(Mandatory Acquisition of Preferred Stock)

1.

The Company may acquire any of Classes XI, the First to Fourth Series of Class XIV and the First to Fourth
Series of Class XV preferred stock, in respect of which a request for acquisition has not been made during
the Period for Acquisition Request, on the day immediately following the last day of such period(hereinafter referred to as the “Mandatory Acquisition Date”) and instead, the Company shall deliver its
own common stock to holders of the relevant preferred stock. In this case, the number of shares of thecommon stock to be delivered in exchange for the acquisition of one (1) share of the relevant preferred stock
shall be obtained by dividing the amount equivalent to the subscription money per one (1) share of therelevant preferred stock by the current market price of a share of the common stock of the Company (withrespect to the Eleventh Series of Class XI Preferred Stock, 1,000 yen; the same shall apply hereinafter);provided, however, that such current market price of a share of the common stock shall be the daily average
price of closing prices (including the closing bid or offered price) of the common stock of the Company (inregular trading) as reported by the Tokyo Stock Exchange for the 30 consecutive trading days (excluding
any trading day or days on which no closing prices or closing bids or offered prices are reported)commencing on the 45th trading day prior to the Mandatory Acquisition Date, and such calculation shall bemade to units of 0.01 yen, and by rounding up to the nearest 0.1 yen when equal to or more than 0.05 yen
and disregarding amounts less than 0.05 yen.

2.

In respect of Class XI preferred stock, the number of common stock referred to in the preceding paragraphshall not exceed the number of shares obtained by dividing the amount equivalent to the subscription money
per one (1) share of the relevant preferred stock by the minimum acquisition price determined by aresolution of the Board of Directors relating to the issuance of the relevant preferred stock. In respect of theFirst to Fourth Series of Class XIV and the First to Fourth Series of Class XV preferred stock, the number ofcommon stock referred to in the preceding paragraph shall not exceed the number of shares obtained by
dividing the amount equivalent to the subscription money per one (1) share of each such class of preferredstock by the minimum acquisition price determined by a resolution of the Board of Directors or adetermination by Executive Officer(s) under the authority delegated by the Board of Directors relating to theissuance of the relevant preferred stock.

3.

In respect of the First and Second Series of Class XIV, the First and Second Series of Class XV and the Firstand Second Series of Class XVI preferred stock, upon the occurrence of an event determined by a resolutionof the Board of Directors or a determination by Executive Officer(s) under the authority delegated by the
Board of Directors relating to the issuance of the relevant preferred stock as an event where a write-off ofthe relevant preferred stock or a conversion of the relevant preferred stock into common stock, or financial
support or other similar measures taken by a public sector, without which the Company would become nonviable, is determined to be necessary, the Company shall mandatorily acquire the relevant preferred stock, inwhole, free of consideration, on a date which falls after the occurrence of such event as determined by the
resolution of the Board of Directors or the determination by Executive Officer(s) under the authority
delegated by the Board of Directors relating to the issuance of the relevant preferred stock and which dateshall be separately determined by a resolution of the Board of Directors or a determination by Executive
Officer(s) under the authority delegated by the Board of Directors after the issuance of the relevant preferredstock, or a date which falls after the occurrence of the relevant certain event and which date shall be
6determined by the resolution of the Board of Directors or the determination by Executive Officer(s) under
the authority delegated by the Board of Directors relating to the issuance of the relevant preferred stock,giving due consideration to the capital adequacy requirements applicable to the Company and other factors.
4.

In respect of the Third and Fourth Series of Class XIV, the Third and Fourth Series of Class XV and theThird and Fourth Series of Class XVI preferred stock, upon the occurrence of an event determined by aresolution of the Board of Directors or a determination by Executive Officer(s) under the authority
delegated by the Board of Directors relating to the issuance of the relevant preferred stock as an event wherea write-off of the relevant preferred stock or a conversion of the relevant preferred stock into common stock,or financial support or other similar measures taken by a public sector, without which the Company would
become non-viable, is determined to be necessary, the Company shall mandatorily acquire the relevant
preferred stock, in whole, on a date which falls after the occurrence of such event as determined by the
resolution of the Board of Directors or the determination by Executive Officer(s) under the authority
delegated by the Board of Directors relating to the issuance of the relevant preferred stock and which dateshall be separately determined by a resolution of the Board of Directors or a determination by Executive
Officer(s) under the authority delegated by the Board of Directors after the issuance of the relevant preferredstock, or a date which falls after the occurrence of the relevant certain event and which date shall be
determined by the resolution of the Board of Directors or the determination by Executive Officer(s) under
the authority delegated by the Board of Directors relating to the issuance of the relevant preferred stock,giving due consideration to the capital adequacy requirements applicable to the Company and other factors,
and instead, the Company shall deliver its own common stock to holders of the relevant preferred stock. In
this case, the terms of acquisition, including the number of shares of the common stock to be delivered in
exchange for the acquisition of one (1) share of the relevant preferred stock, shall be determined by therelevant resolution of the Board of Directors or the relevant determination by Executive Officer(s) under theauthority delegated by the Board of Directors relating to the issuance of the relevant preferred stock, giving
due consideration to the market price of common stock, the subscription price of the relevant preferred stockand other factors.

5.

In the calculation of the number of common stock provided for in Paragraphs 1, 2 and 4, any number lessthan one (1) share shall be treated pursuant to the provisions provided for in Article 234 of the Act.

Article 21.

(Order of Priority)

All classes of preferred stock authorized to be issued by the Company shall rank pari passu with each otherin respect of the payment of the Preferred Stock Dividends and the Preferred Stock Interim Dividends, and the
distribution of residual assets.
CHAPTER IV
GENERAL MEETINGS OF SHAREHOLDERS
Article 22.

(Convocation of General Meetings of Shareholders)

An ordinary general meeting of shareholders of the Company shall be convened no later than 3 months fromthe last day of each business year and an extraordinary general meeting of shareholders shall be convened
whenever necessary.
Article 23.
Meeting)
1.

(Person Authorized to Convene General Meetings of Shareholders and the Chairman of the

The Director concurrently serving as President and Executive Officer shall convene and chair the general
meeting of shareholders.

72.

In the case where the Director concurrently serving as President and Executive Officer is unable to so act,
one of the other Director(s) in the order previously determined by the Board of Directors shall take such
person’s place.

Article 24.

(Disclosure of Reference Materials, Etc. for General Meetings of Shareholders via Internet)

The Company may, at the time of convocation of a general meeting of shareholders, deem to have provided
shareholders with information with respect to matters which shall be stated or indicated in the reference materials
for a general meeting of shareholders, business reports, non-consolidated financial documents and consolidated
financial documents by disclosing those by way of using the Internet as provided for in the ordinances of the
Ministry of Justice.
Article 25.

(Method of Adopting Resolutions)

1.

Unless otherwise provided for by laws or regulations or these Articles of Incorporation, resolutions of ageneral meeting of shareholders shall be adopted by an affirmative vote of a majority of the voting rights
held by the shareholders present at the meeting who are entitled to exercise their voting rights.

2.

Resolutions of a meeting of shareholders governed by Article 309, Paragraph 2 of the Act shall be adopted
by an affirmative vote of not less than two-thirds (2/3) of the voting rights held by the shareholders present
at the relevant meeting who shall hold in aggregate not less than one-third (1/3) of the voting rights of theshareholders entitled to exercise their voting rights.

Article 26.

(Voting by Proxy)1.

Shareholders may exercise their voting rights at the relevant general meeting of shareholders by a proxy
who shall also be a shareholder of the Company holding voting rights at such meeting.

2.

The shareholder or his/her proxy shall submit to the Company a document evidencing the authority of suchproxy to act as such at each general meeting of shareholders.

Article 27.

(Minutes of General Meetings)

The minutes of general meetings of shareholders shall be prepared in writing or by electromagnetic file asprovided for in laws and regulations.
Article 28.

(General Meetings of Holders of Classes of Stock)

1.

Unless otherwise provided for by laws or regulations or these Articles of Incorporation, resolutions of ageneral meeting of holders of classes of stock shall be adopted by an affirmative vote of a majority of thevoting rights held by the holders present at the meeting who are entitled to exercise their voting rights.

2.

Resolutions provided for in Article 324, Paragraph 2 of the Act shall be adopted by an affirmative vote of
not less than two-thirds (2/3) of the voting rights held by the holders present at the relevant meeting who
shall hold in aggregate not less than one-third (1/3) of the voting rights of the holders entitled to exercise
their voting rights.

3.

The provisions of Articles 23, 24 and 26 and the preceding Article shall apply mutatis mutandis to thegeneral meetings of holders of classes of stock.

8

CHAPTER V
DIRECTORS AND BOARD OF DIRECTORS
Article 29.

(Number)

The Company shall have not more than fifteen (15) Directors.
Article 30.

(Method of Appointment)

1.

The Director(s) shall be appointed at a general meeting of shareholders.

2.

A resolution for the appointment of Director(s) shall be adopted by an affirmative vote of a majority of thevoting rights held by the shareholders present at the relevant meeting who shall hold in aggregate not lessthan one-third (1/3) of the voting rights of the shareholders entitled to exercise their voting rights.

3.

Cumulative voting shall not be used for the appointment of Director(s).

Article 31.

(Method of Dismissal)

A resolution for the dismissal of Director(s) shall be adopted by an affirmative vote of a majority of thevoting rights held by the shareholders present at the relevant general meeting of shareholders who shall hold in
aggregate not less than one-third (1/3) of the voting rights of the shareholders entitled to exercise their voting
rights.
Article 32.

(Term of Office)The term of office of Director(s) shall expire at the closing of the ordinary general meeting of shareholders
concerning the last business year ending within one (1) year after their appointment.
Article 33.

(Chairman and Deputy Chairman)

The Board of Directors may, by its resolutions, appoint Chairman and Deputy Chairman.
Article 34.

(Person Authorized to Convene Meetings of the Board of Directors and Chairman of the Meeting)1.

Unless otherwise provided for by laws or regulations, a Director previously appointed by the Board of
Directors shall convene and chair the meeting of the Board of Directors.

2.

In the case where the Director appointed pursuant to the preceding paragraph is unable to so act, one of theother Director(s) in the order previously determined by the Board of Directors shall take such person’splace.

Article 35.

(Notice to Convene Meetings of the Board of Directors)

1.

Notice to convene a meeting of the Board of Directors shall be given to each Director not less than three(3) days prior to the date set for such meeting; provided, however, that in case of emergency, such period
may be shortened.

2.

A meeting of the Board of Directors may be held without taking the procedures of convocation with theconsent of all the Directors.

Article 36.
1.

(Method of Adopting Resolutions of the Board of Directors)

Resolutions of a meeting of the Board of Directors shall be adopted by an affirmative vote of a majority of
the Directors present at the relevant meeting who shall constitute a majority in number of all the Directors
entitled to take part in the vote.
92.

Notwithstanding the provisions of the preceding paragraph, in cases where Director(s) submit a proposal
with respect to a matter which is the purpose of the resolution of the Board of Directors, if all Directors whoare entitled to vote agree in writing or by means of electromagnetic file to such proposal, it shall be deemedthat the resolution to approve such proposal at a meeting of the Board of Directors has been made.

Article 37.

(Minutes of Meetings of the Board of Directors)

The minutes of the meetings of the Board of Directors shall be prepared in writing or by electromagnetic file
as provided for in laws and regulations, and the Director(s) present thereat shall affix their names and seals
thereon, or electronic signatures thereto.
Article 38.

(Regulations of the Board of Directors)

Matters concerning the Board of Directors shall be governed by the Regulations of the Board of Directors
prescribed by the Board of Directors, in addition to laws and regulations and these Articles of Incorporation.
Article 39.

(Liability Limitation Agreements with Outside Director(s))

Pursuant to the provisions provided for in Article 427, Paragraph 1 of the Act, the Company may enter into
liability limitation agreements with any Outside Director which limit the liability provided for in Article 423,
Paragraph 1 of the Act to the higher of either (i) the pre-determined amount not less than twenty million(20,000,000) yen or (ii) the amount prescribed in laws and regulations, provided that such Outside Director isbona fide and without gross negligence in performing his/her duty.
CHAPTER VINOMINATING COMMITTEE, AUDIT COMMITTEE, AND COMPENSATION COMMITTEE
Article 40.

(Method of Designation)

1.

Committee members who shall constitute the Nominating Committee, the Audit Committee, and theCompensation Committee shall be designated by the Board of Directors.

2.

The chairman of each committee shall be designated by the Board of Directors.

Article 41.

(Regulations of Each Committee)

Matters concerning each committee shall be governed by the Regulations of each committee prescribed by
the Board of Directors, in addition to laws and regulations and these Articles of Incorporation.
CHAPTER VII
EXECUTIVE OFFICERS
Article 42.

(Number)

The Company shall have no less than one (1) Executive Officer.
Article 43.

(Method of Appointment)

Executive Officers shall be appointed by the Board of Directors.

10Article 44.

(Term of Office)The term of office of Executive Officers shall expire at the closing of the first meeting of the Board of
Directors convened after the closing of the ordinary general meeting of shareholders concerning the last businessyear ending within one (1) year after their appointment.
Article 45.

(Representative Executive Officer(s) and Executive Officer(s) with Tittles)

1.

The Representative Executive Officer(s) shall be designated by the Board of Directors.

2.

The Board of Directors shall, by its resolutions, appoint the President and Executive Officer.

3.

The Board of Directors may, by its resolutions, appoint Deputy President and Executive Officer(s), Senior
Managing Executive Officer(s), and Managing Executive Officer(s).
CHAPTER VIIIACCOUNTING

Article 46.

(Business Year)The business year of the Company shall be the one-year period from April 1 of each year through March 31of the following year.
Article 47.

(Organizations that Decide Dividends from Surplus, Etc.)

The Company shall decide distribution of dividends from surplus and other matters provided for in each
item of Article 459, Paragraph 1 of the Act, not by a resolution of a general meeting of shareholders, but by aresolution of the Board of Directors, unless otherwise provided for in laws or regulations.
Article 48.

(Record Date for Distribution of Dividends from Surplus)

The record dates for distribution of dividends from surplus of the Company shall be March 31 and
September 30 of each year (in these Articles of Incorporation, distribution of dividends from surplus made withthe record date of September 30 of each year shall be referred to as “interim dividends”).
Article 49.

(Prescription for Payment of Dividends)

In the case where the dividends from its surplus are distributed by cash, the Company shall be released fromthe obligation to pay such dividends from the surplus which have not been received after the lapse of five(5) years from the date of commencement of payment thereof.

11

Exhibit 1.2[Translation]
Effective from January 8, 2003
As amended on June 24, 2014
REGULATIONS OF THE BOARD OF DIRECTORSCHAPTER IPURPOSE
Article 1.

(Purpose)

These Regulations provide for matters concerning the Board of Directors pursuant to laws and regulations,
the Articles of Incorporation, and the Corporate Governance Guidelines.
CHAPTER IIORGANIZATION
Article 2.

(Function)

The Board of Directors shall conduct the following matters.
(1) Determine the matters provided for in Article 10 of these Regulations(2) Supervise the execution of duties by Directors, Executive Officers, as defined in the Companies
Act, and Executive Officers, as provided under the Internal regulations
Article 3.

(Constitution)

The Board of Directors shall consist of all the Directors.
CHAPTER III
HOLDING, CONVOCATION AND CHAIRMAN OF MEETINGS
Article 4.

(Holding of Meetings)

1.

Meetings of the Board of Directors shall be held ordinarily and extraordinarily.

2.

Ordinary meetings of the Board of Directors shall be held at least once every three (3) months.

3.

Extraordinary meetings of the Board of Directors shall be held whenever necessary.

4.

Meetings of the Board of Directors shall be held at the head office of the Company; provided, however,that when necessary, a meeting of the Board of Directors may be held at another location or at multiple
locations by a method such as teleconference.

Article 5.
1.

(Person Authorized to Convene Meetings and Chairman of Meetings)
Unless otherwise provided for in laws and regulations, each meeting of the Board of Directors will be
convened and chaired by a Director who does not concurrently serve as an Executive Officer, as1

defined in the Companies Act, Executive Officer, as defined in our internal regulations, or Employee of
the Company or a subsidiary of the Company (“Non-Executive Director”) as previously appointed by
the Board of Directors.
2.

In the case where the Director appointed pursuant to the preceding paragraph is unable to so act, one ofthe other Non-Executive Director(s) in the order previously determined by the Board of Directors shalltake such person’s place.

3.

The Board of Directors may, by its resolution, appoint a Non-Executive Director as a deputy chairman
to assist the chairman.

4.

Any Director who is not a Director provided for under the provisions of paragraph 1 or paragraph 2 orany Executive Officer, as defined in the Companies Act, may demand the convocation of a meeting of
the Board of Directors in accordance with the provisions of laws and regulations.

5.

Any person appointed by the Nominating Committee, the Compensation Committee, or the Audit
Committee from among their members may convene a meeting of the Board of Directors in accordancewith the provisions of laws and regulations.

Article 6.

(Convocation and Reduction of Convocation Period)

Notices to convene a meeting of the Board of Directors shall be issued to each Director not less than three(3) days prior to the date of that meeting; provided, however, that in case of emergency, such period may be
shortened.
Article 7.

(Omission of Convocation Notice)

A meeting of the Board of Directors may be held without taking the procedures for convocation provided
for in the preceding Article with the consent of all of the Directors.
CHAPTER IVQUORUM AND METHOD OF ADOPTING RESOLUTIONSArticle 8.

(Quorum and Method of Adopting Resolutions)

1.

Resolutions of meetings of the Board of Directors shall be adopted by an affirmative vote of a majorityof the Directors present at the relevant meeting who shall constitute a majority in number of all the
Directors entitled to take part in the vote.

2.

Notwithstanding the provisions of the preceding paragraph, in the case where Director(s) submit a
proposal with respect to a matter which is the purpose of the resolution of the Board of Directors, if all
Directors who are entitled to vote agree in writing or by means of electromagnetic file to such proposal,
it shall be deemed that the resolution to approve such proposal at a meeting of the Board of Directors
has been made.

Article 9.

(Person Who Has Special Interests)

Any person who has special interests with respect to a matter to be resolved at a meeting of the Board of
Directors may not participate in voting for resolution thereof.

2

CHAPTER V
MATTERS TO BE RESOLVED
Article 10.
1.

(Matters to be Resolved)

The following matters shall be resolved at a meeting of the Board of Directors.
(1) Important matters concerning the management policy of the Company and its subsidiaries andother entities administered by the Company (collectively, the “Mizuho Group”)(i)Basic policy concerning the management of the Mizuho Group(ii)

Basic matters concerning annual business plans and mid- and long-term business plans of
the Mizuho Group;(iii)

Basic matters concerning the capital policy of the Mizuho Group;(iv)“System to ensure the properness of operations” of the Mizuho Group (the “Internal Control
System”);(v)

Matters concerning changes of particularly important companies of the Mizuho Group; and(vi)

Basic matters concerning risk governance, risk management, compliance, and internal
auditing of the Mizuho Group.

(2) Important matters concerning the Company(i)

Determination of convocation of general meetings of shareholders and agenda thereof;(ii)

Determination of person authorized to convene general meetings of shareholders and thechairman thereof (including the order in which substitutes are to be determined);(iii)

Appointment and removal of Directors with Titles;(iv)

Appointment and dismissal of Executive Officers, as defined in the Companies Act;(v)

Appointment and removal of Representative Executive Officers, as defined in the
Companies Act, and Executive Officers, as defined in the Companies Act, with Titles;(vi)

Matters concerning the interrelationship between Executive Officers, as defined in the
Companies Act, including the division of duties between Executive Officers, as defined in
the Companies Act, and hierarchy of commands of Executive Officers, as defined in the
Companies Act;(vii) Selection and appointment, dismissal and removal, and division of duties of Executive
Officers, as defined in our internal regulations, with Titles;(viii) Approval of competitive transactions and conflicting interest transactions by Directors andExecutive Officers, as defined in the Companies Act;
(ix)

Determination of person authorized to convene meetings of the Board of Directors and thechairman thereof (including the order in which substitutes are to be determined);(x)

Determination of Director to receive demands for convocation of meetings of the Board of
Directors from Executive Officers, as defined in the Companies Act;(xi)

Appointment and removal of members who constitute the Nominating Committee, theCompensation Committee, and the Audit Committee;(xii) Appointment and removal of the Chairman of each of the Nominating Committee, theCompensation Committee, and the Audit Committee;
3

(xiii) Determination of a person to represent the Company in any action between the Company
and a member of the Audit Committee;(xiv) Matters concerning business transfers, etc., mergers, absorption-type company splits,
incorporation-type company splits, share exchanges, and share transfers of the Company
which require the approval of a general meeting of shareholders;(xv) Approval of financial statements, business reports and supplementary schedules, temporary
financial statements, and consolidated financial statements;(xvi) Distribution of surplus and other matters the Board of Directors is authorized to determine
pursuant to the provisions of the Articles of Incorporation;(xvii) Determination of approval of transfers of share options with restriction on transfers; and(xviii) Establishment of, revisions to, and abolition of particularly important internal regulations.
(3) Important matters concerning the management of subsidiaries, etc.
(i)

Matters concerning transfer of particularly important subsidiaries and other entities
administered by the Company(ii)

Basic matters concerning risk governance, risk management, compliance, and internal
auditing of Major Group Companies (meaning “Major Group Companies” as provided in
the Group Management Administration Regulations)(iii)

Selection and appointment, dismissal and removal, and division of duties of Executive
Officers, as defined in our internal regulations, with Titles of Management Classification A
Companies (companies with respect to which “Management Classification A” under theGroup Business Management Regulations have been established)(4) Other matters provided for in laws and regulations or the Articles of Incorporation, or resolved ata general meeting of shareholders(5) Any other matter that a Director believes should be proposed at a meeting of the Board of
Directors
2.

The Supplementary Provisions of the Regulations of the Board of Directors shall apply as the operating
standards with respect to the matters to be resolved in the preceding paragraph.
CHAPTER VIREPORTS, ETC. TO THE BOARD OF DIRECTORS

Article 11.

(Business Performance Reports)

1.

Executive Officer(s), as defined in the Companies Act, shall report to the Board of Directors at least
once every three (3) months on the status of the performance of his or her duties.

2.

Each person appointed by the Nominating Committee, the Compensation Committee, or the Audit
Committee from among their members shall report without delay to the Board of Directors on thestatus of the performance of the duties of that committee.

3.

The Supplementary Provisions of the Regulations of the Board of Directors shall apply as the operating
standards with respect to the matters to be reported to the Board of Directors.

4

Article 12.

(Other Reports, Etc.)

1.

The Board of Directors may, when necessary, have Executive Officers, as defined in the Companies
Act, Executive Officers, as defined in our internal regulations, and Employees of the Company,
Directors, Executive Officers, as defined in our internal regulations, and Employees of subsidiaries,
etc., of the Company, and outside experts, etc., attend meetings of the Board of Directors and seek theirreports and opinions.

2.

If an Executive Officer, as defined in the Companies Act, Executive Officer, as defined in our internal
regulations, or Employee of the Company or a Director, Executive Officer, as defined in our internal
regulations, or Employee of subsidiaries, etc. of the Company receives a request from the Board of
Directors, that person shall attend a meeting of the Board of Directors and explain matters requested by
the Board of Directors.
CHAPTER VII
EXECUTIVE OFFICERS, AS DEFINED IN THE COMPANIES ACT, WITH TITLES ANDEXECUTIVE OFFICERS, AS DEFINED IN OUR INTERNAL REGULATIONS, WITH
TITLES

Article 13.

(Executive Officers, as defined in the Companies Act, with Titles)

1.

The Board of Directors shall, by its resolution, appoint a President & Executive Officer from among
the Executive Officers, as defined in the Companies Act.

2.

The Board of Directors may, by its resolution, appoint one or more Deputy President & Executive
Officer, Senior Managing Executive Officer, and Managing Executive Officer from among the
Executive Officers, as defined in the Companies Act.

Article 14.

(Executive Officers, as defined in our internal regulations, with Titles)

The Board of Directors may, by its resolution, appoint one or more Deputy President & Executive Officer,
Senior Managing Executive Officer, and Managing Executive Officer from among the Executive Officers,
as defined in our internal regulations.
CHAPTER VIIIPRESIDENT & EXECUTIVE OFFICER
Article 15.

(Duties of the President & Executive Officer)

The President & Executive Officer shall oversee the business of the Company as the chief executive officerof the Mizuho Group (Group CEO).
Article 16.

(Delegation to the President & Executive Officer)

The determination of businesses other than the matters provided for in Article 10 of these Regulations shallbe delegated to the President & Executive Officer.
CHAPTER IXDIRECTORS WITH TITLES
Article 17.

(Directors with Titles)

The Board of Directors may, by its resolution, appoint a Chairman, Deputy Chairman, and other Directors
with Titles from among the Non-Executive Directors.
5

CHAPTER XMINUTES
Article 18.

(Minutes)

The minutes of meetings of the Board of Directors shall be prepared in writing or by electromagnetic file asprovided for in laws and regulations, and the Directors present thereat shall affix their names and seals
thereon or electronic signatures thereto.
CHAPTER XIOTHER MATTERS
Article 19.

(Revision and Abolition)

These Regulations and the Supplementary Provisions of the Regulations of the Board of Directors may berevised or abolished by resolution of the Board of Directors.
Article 20.

(Relevant Department)

The relevant department for administering these Regulations is the Corporate Secretariat.

6

Exhibit 12.1
CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Yasuhiro Sato, certify that:1.

I have reviewed this annual report on Form 20-F of Mizuho Financial Group, Inc. (the “company”);

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to statea material fact necessary to make the statements made, in light of the circumstances under which suchstatements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of thecompany as of, and for, the periods presented in this report;

4.

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company andhave:(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures tobe designed under our supervision, to ensure that material information relating to the company,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in thisreport our conclusions about the effectiveness of the disclosure controls and procedures, as of the endof the period covered by this report based on such evaluation; and(d) Disclosed in this report any change in the company’s internal control over financial reporting that
occurred during the period covered by the annual report that has materially affected, or is reasonably
likely to materially affect, the company’s internal control over financial reporting; and5.

The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the company’s auditors and the audit committee of the company’s boardof directors (or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control overfinancial reporting which are reasonably likely to adversely affect the company’s ability to record,
process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the company’s internal control over financial reporting.

Date: July 25, 2014
By: /s/ Yasuhiro Sato
Name: Yasuhiro Sato
Title: Chief Executive Officer

Exhibit 12.2
CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Junichi Shinbo, certify that:1.

I have reviewed this annual report on Form 20-F of Mizuho Financial Group, Inc. (the “company”);

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to statea material fact necessary to make the statements made, in light of the circumstances under which suchstatements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of thecompany as of, and for, the periods presented in this report;

4.

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company andhave:(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures tobe designed under our supervision, to ensure that material information relating to the company,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in thisreport our conclusions about the effectiveness of the disclosure controls and procedures, as of the endof the period covered by this report based on such evaluation; and(d) Disclosed in this report any change in the company’s internal control over financial reporting that
occurred during the period covered by the annual report that has materially affected, or is reasonably
likely to materially affect, the company’s internal control over financial reporting; and5.

The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the company’s auditors and the audit committee of the company’s boardof directors (or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control overfinancial reporting which are reasonably likely to adversely affect the company’s ability to record,
process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the company’s internal control over financial reporting.

Date: July 25, 2014
By: /s/ Junichi Shinbo
Name: Junichi Shinbo
Title: Chief Financial Officer

Exhibit 13.1
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The certification set forth below is being submitted in connection with the annual report of Mizuho
Financial Group, Inc. on Form 20-F for the year ended March 31, 2014 as filed with the U.S. Securities andExchange Commission on the date hereof (the “Report”) for the purpose of complying with Rule 13a-14(b) or
Rule 15d-14(b) of the United States Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 ofChapter 63 of Title 18 of the United States Code.
Yasuhiro Sato, Chief Executive Officer, and Junichi Shinbo, Chief Financial Officer of Mizuho Financial
Group, Inc., each certifies that, to the best of his knowledge:
1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and2.

The information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of Mizuho Financial Group, Inc.

Date: July 25, 2014
By: /s/ Yasuhiro Sato
Name: Yasuhiro Sato
Title: Chief Executive Officer
By: /s/ Junichi Shinbo
Name: Junichi Shinbo
Title: Chief Financial Officer