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

FORM 20-F(Mark One)‘REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGEACT OF 1934È

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934‘

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGEACT OF 1934OR
For the fiscal year ended March 31, 2007
OR
For the transition period from

to
OR

‘

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934
Date of event requiring this shell company report
Commission 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)
5-5, Otemachi 1-chome
Chiyoda-ku, Tokyo 100-0004
Japan(Address of Principal Executive Offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of Each Class

Name of Each Exchange on which Registered

Common Stock, without par value
American depositary shares, each of which represents 1/500th of
one share of common 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, 2007, the following shares of capital stock were outstanding: (1) 11,872,195 shares of common stock (including 265,040
shares of common stock held by the registrant and its consolidated subsidiaries and equity-method affiliates as treasury stock),(2) 943,740 shares of eleventh series class XI preferred stock, and (3) 36,690 shares of thirteenth series class XIII preferred stock.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ‘ No È
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 is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of“accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ‘
Accelerated filer ‘
Non-accelerated filer È
Indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 ‘ Item 18 È
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 Act of 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 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
11
11
12
19
19
20
38
40
41
105
105
114
114
121
122
123
123
125
125
126
126
126
127
127
128
128
128
128
128
129
129
129
138
139
140
145
145
145
145

Page

ITEM 11.
Quantitative and Qualitative Disclosures about Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 12.
Description of Securities Other than Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 17.
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 18.
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 19.
Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selected Statistical Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Index to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

146
161
162
162
162
162
162
163
164
165
166
166
166
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.
In this annual report, “our principal banking subsidiaries” refer to Mizuho Corporate Bank, Ltd., Mizuho
Bank, Ltd. and Mizuho Trust & Banking Co., Ltd. (or with respect to references as of a date, or fiscal year
ending, before April 1, 2002, to The Dai-Ichi Kangyo Bank, Limited, The Fuji Bank, Limited, The Industrial
Bank of Japan, Limited, Mizuho Trust & Banking and The Yasuda Trust and Banking Co., Ltd.).
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, all yen figures and percentages have been rounded to the figures shown, except for
those yen figures and percentages in “Item 3.A. Key Information—Selected Financial Data—Japanese GAAP
Selected Consolidated Financial Information,” which have been truncated to the figures shown, and unlessotherwise specified. Accordingly, the total of each column of figures may not be equal to the total of theindividual items.
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 or current expectationsof our management with respect to our financial condition and future results of operations. In many cases, but notall, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,”“plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to
us or our management to identify forward-looking statements. You can also identify forward-looking statements
by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future
events and are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, our actual results may vary materially from those
we currently anticipate. Potential risks and uncertainties include, without limitation, the following:•

incurrence of significant credit-related costs;
3•declines in the value of our securities portfolio;•changes in interest rates;•

foreign exchange rate fluctuations;•revised assumptions or other changes related to our pension plans;•

failure to maintain required capital adequacy ratio levels;•

downgrades in our credit ratings;•

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

our ability to avoid reputational harm; and•the effect of changes in general economic conditions in Japan.

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, 2005, 2006 and 2007 which have been derived from the audited consolidated
financial statements of Mizuho Financial Group prepared in accordance with U.S. GAAP included in 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, 2003, 2004, 2005, 2006 and 2007 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, 2005, 2006 and 2007 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,
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,
2005
2006
2007
(in millions of yen, except per share data andpercentages)

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

¥1,615,428
578,573¥1,957,907
944,895¥2,639,307
1,571,389

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

1,036,855
55,035

1,013,012(157,666)

1,067,918
182,115

Net interest income after provision (credit) for loan
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income tax expense (benefit) . . . . . . . . . . . .
Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . .

981,820
1,599,673
1,379,053
1,202,440
124,379

1,170,678
995,156
1,454,304
711,530(374,142)

885,803
1,195,948
1,294,648
787,103
163,221

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,078,061¥1,085,672¥ 623,882

Net income attributable to common shareholders . . . . . . . .
Amounts per share:
Basic earnings per common share—net income attributable
to common shareholders . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted earnings per common share—net income
attributable to common shareholders . . . . . . . . . . . . . . . .
Number of shares used to calculate basic earnings percommon share (in thousands) . . . . . . . . . . . . . . . . . . . . .
Number of shares used to calculate diluted earnings percommon share (in thousands) . . . . . . . . . . . . . . . . . . . . .
Cash dividends per share declared during the fiscal year:
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,020,997¥1,047,719¥ 600,408¥94,616.09¥93,778.71¥51,725.68

70,005.52

82,748.82¥48,709.38

10,791

11,172

11,608

14,944

12,88912,714First series class I preferred stock . . . . . . . . . . . . . . . .
Second series class II preferred stock . . . . . . . . . . . . .
Third series class III preferred stock . . . . . . . . . . . . . .
Fourth series class IV preferred stock . . . . . . . . . . . . .
Sixth series class VI preferred stock . . . . . . . . . . . . . .
Seventh series class VII preferred stock . . . . . . . . . . .
Eighth series class VIII preferred stock . . . . . . . . . . . .
Ninth series class IX preferred stock . . . . . . . . . . . . . .
Tenth series class X preferred stock . . . . . . . . . . . . . .
Eleventh series class XI preferred stock . . . . . . . . . . .

6

¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$

3,000
27.98
22,500209.85
8,200
76.48
14,000130.5747,600443.9542,000391.72
11,000102.598,000
74.61
17,500163.22
5,380
50.18
20,000186.53

¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$

3,500
29.79
—
—
8,200
69.80
14,000119.1747,600405.1842,000357.51
11,000
93.63
8,000
68.10
—
—
5,380
45.80
20,000170.24

¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$
¥
$

4,000
34.03
—
—
—
—
—
—
47,600404.9042,000357.26
—
—
—
—
—
—
—
—
20,000170.13

As of and for the fiscal years ended March 31,
2005
2006
2007
(in millions of yen, except per share data andpercentages)

Twelfth series class XII preferred stock . . . . . . . . . . .
Thirteenth series class XIII preferred stock . . . . . . . . .
Balance sheet data:
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans, net of allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial data:
Return on equity and assets:
Net income attributable to common shareholders as apercentage of total average assets . . . . . . . . . . . . . . . . . .
Net income attributable to common shareholders as apercentage of average shareholders’ equity . . . . . . . . . . .
Dividends per common share as a percentage of basic
earnings per common share . . . . . . . . . . . . . . . . . . . . . . .
Average shareholders’ equity as a percentage of total
average assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income as a percentage of total averageinterest-earning assets . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥
$
¥
$

2,500
23.32
30,000279.80¥139,608,540
64,362,181
136,537,265
80,518,714
4,788,775
3,105,754
2,869,528

¥
$
¥
$

—
—
30,000255.36¥145,522,392
67,898,640
140,880,392
82,703,690
5,384,991
3,547,726
4,345,714

¥
$
¥
$

—
—
30,000255.19¥147,381,279
68,236,720
142,376,976
83,751,304
7,073,936
3,532,492
4,662,700

0.77%

0.74%

0.42%

24.85%

27.40%

14.69%

3.70%

4.27%

13.53%

3.09%

2.71%

2.87%

0.83%

0.77%

0.79%

Note: Yen amounts for cash dividends per share for the fiscal years ended March 31, 2005, 2006 and 2007 areexpressed in U.S. dollars at the rate of ¥107.22 = $1.00, ¥117.48 = $1.00 and ¥117.56 = $1.00,
respectively. These rates are the noon buying rates on March 31, 2005, 2006 and 2007 in New York City
for cable transfers in yen as certified for customs purposes by the Federal Reserve Bank of New York.

7

Japanese GAAP Selected Consolidated Financial Information
2003

Statement of income data:
Interest income . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . .
Net interest income . . . . . . . . . . . . . .
Fiduciary income . . . . . . . . . . . . . . . .
Net fee and commission income . . . .
Net trading income . . . . . . . . . . . . . . .
Net other operating income . . . . . . . .
General and administrative
expenses . . . . . . . . . . . . . . . . . . . . .
Other income . . . . . . . . . . . . . . . . . . .
Other expenses(1) . . . . . . . . . . . . . . . .
Income (loss) before income taxes
and minority interests . . . . . . . . . . .
Income taxes:
Current . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . .
Minority interests in net income(loss) . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . .

As of and for the fiscal years ended March 31,
2004
2005
2006
2007
(in millions of yen, except per share data and percentages)¥ 1,991,236
734,859¥1,622,704
437,703¥1,584,415
477,983¥1,935,048
872,403¥2,562,642
1,472,378

1,256,377
55,460410,534
244,524
266,754

1,185,001
62,064
426,614
231,804
206,861

1,106,432
63,253472,628
165,059
185,724

1,062,645
78,843555,935
204,941
100,073

1,090,264
66,958551,124
261,544
147,507

1,237,641
243,434
3,501,617

1,125,905
503,872
609,073

1,091,348
735,297
693,989

1,095,243
502,212429,265

1,091,602
522,816
573,714(2,262,172)

881,240

943,059

980,142974,898

22,28830,50528,055
387,855

19,817235,227

64,038185,035

43,267
223,699

62,20558,34760,63081,16486,965¥ (2,377,172) ¥ 406,982¥ 627,383¥ 649,903¥ 620,965

Net income (loss) per share:
Basic . . . . . . . . . . . . . . . . . . . . . . ¥(254,524.65) ¥36,153.27
Diluted . . . . . . . . . . . . . . . . . . . .
—18,754.94
Cash dividends per share declared
during the fiscal year(2):Common stock . . . . . . . . . . . . . . ¥3,500 ¥—$
29.64 $—First series class I preferredstock . . . . . . . . . . . . . . . . . . . . ¥22,500 ¥ 22,500$
190.56 $ 215.97
Second series class II preferredstock . . . . . . . . . . . . . . . . . . . . ¥8,200 ¥
8,200$
69.45 $
78.71
Third series class III preferredstock . . . . . . . . . . . . . . . . . . . . ¥14,000 ¥ 14,000$
118.57 $ 134.38
Fourth series class IV preferredstock . . . . . . . . . . . . . . . . . . . . ¥47,600 ¥ 47,600$
403.15 $ 456.90
Fifth series class V preferredstock . . . . . . . . . . . . . . . . . . . .
————Sixth series class VI preferredstock . . . . . . . . . . . . . . . . . . . . ¥42,000 ¥ 42,0008¥54,625.61 ¥55,157.14 ¥51,474.49
37,719.13
46,234.51
48,803.07¥$

3,000 ¥
27.98 $

3,500 ¥
29.79 $

4,000
34.03

¥
$

22,500209.85

—
—

—
—

¥
$

8,200 ¥
76.48 $

8,200
69.80

—
—

¥
$

14,000 ¥130.57 $14,000119.17——¥$47,600 ¥443.95 $47,600 ¥405.18 $47,600404.90

—
—

—
—

—
—

¥

42,000¥42,000¥42,000As of and for the fiscal years ended March 31,
2004
2005
2006
(in millions of yen, except per share data and percentages)

2003

Seventh series class
VII preferredstock . . . . . . . . . . .
Eighth series class
VIII preferredstock . . . . . . . . . . .
Ninth series class IX
preferred stock . . . .
Tenth series class X
preferred stock . . . .
Eleventh series class
XI preferredstock . . . . . . . . . . .
Twelfth series class
XII preferredstock . . . . . . . . . . .
Thirteenth series classXIII preferredstock . . . . . . . . . . .

2007

$

355.72$403.15$391.72$357.51$¥$

11,00093.17¥$

11,000105.59¥$11,000102.59¥$11,000
93.63

—
—

¥
$

8,000
67.76

¥
$

8,000
76.79

¥
$

8,000
74.61

¥
$

8,000
68.10

—
—

¥
$

17,500148.22¥$

17,500167.98¥$17,500163.22

¥
$

—
—

—
—

¥
$

5,380
45.57

¥
$

5,380
51.64

¥
$

5,380
50.18

¥
$

5,380
45.80

—
—

—
—

¥
$

165
1.58

¥
$

20,000186.53¥$20,000170.24

—
—

¥
$

21
0.20

¥
$

2,500
23.32

¥
$

—
—

—
—

¥
$

247
2.37

¥
$

30,000279.80¥$30,000255.36¥$357.2620,000170.13——¥$30,000255.19Balance sheet data:
Total assets . . . . . . . . . . . . ¥134,032,747 ¥137,750,091 ¥143,076,236 ¥149,612,794 ¥149,880,031
Loans and bills
discounted(3) . . . . . . . . . .
69,210,035
66,205,868
62,917,336
65,408,672
65,964,301
Securities . . . . . . . . . . . . . .
23,816,574
32,071,624
36,047,035
37,702,957
36,049,983
Deposits . . . . . . . . . . . . . . .
72,222,642
77,487,475
80,368,058
82,367,125
83,608,304
Shareholders’ equity . . . . .
2,861,066
3,644,396
3,905,726
4,804,993—
Net assets(4) . . . . . . . . . . . .
————6,724,408
Risk-adjusted capital data(5):Tier 1 capital . . . . . . . . . . . ¥ 3,495,431 ¥ 3,941,146 ¥ 4,172,047 ¥ 4,555,947 ¥ 4,933,561
Total qualifying capital . . .
6,847,417
7,770,077
8,020,233
8,993,255
8,841,383
Total risk adjusted
assets . . . . . . . . . . . . . . .
71,823,565
68,424,191
67,324,998
77,534,548
70,795,493
Tier 1 capital ratio . . . . . . .
4.86%
5.75%
6.19%
5.87%
6.96%
Capital adequacy ratio . . . .
9.53%
11.35%
11.91%
11.59%
12.48%

9Notes:(1) The following table shows the amount of provision for reserves for possible losses on loans and write-offs
on loans, both of which are components of other expenses:
2003(1)

Provision for reserves for possible
losses on loans . . . . . . . . . . . . . . . . . .
Write-offs of loans . . . . . . . . . . . . . . . . .

¥932,421
735,111

As of and for the fiscal years ended March 31,
2004
2005
2006
(in millions of yen)

¥ 65,424
209,509¥2007— (2) ¥ — (2) ¥69,775
161,461
37,187
67,141

Notes:(1) Other expenses for the fiscal year ended March 31, 2003 were significantly higher compared to subsequent fiscal years due mainly
to the significant amount of costs related to the resolution of problem loan issues, including provision for reserves for possible
losses on loans and write-offs of loans, which reflects heightened efforts to accelerate problem loan dispositions and increase
reserve ratios. In addition, losses related to our portfolio of equity securities due to significant declines in Japanese stock markets
also contributed to the large amount of other expenses in these two fiscal years. The combined amount of losses on devaluation ofstocks and other securities and losses on sales of stocks and other securities for the fiscal year ended March 31, 2003 was ¥996.9
billion.
(2) In the fiscal years ended March 31, 2005 and 2006, we recorded reversal of reserves for possible losses on loans of¥143,215 million and ¥142,249 million, respectively. Such reversal is included in other income.

(2) Yen amounts are expressed in U.S. dollars at the rate of ¥118.07 = $1.00, ¥104.18 = $1.00, ¥107.22 = $1.00,¥117.48 = $1.00 and ¥117.56 = $1.00 for the fiscal years ended March 31, 2003, 2004, 2005, 2006 and2007, 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.
(3) Bills discounted refers 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.
(4) On December 9, 2005, the Accounting Standards Board of Japan issued a new accounting standard forpresentation of net assets in the balance sheet, which is effective for fiscal years ending on or after May 1,
2006. Under the new accounting standard, the line item previously presented as “shareholders’ equity” is
now presented as “net assets”, and the line items “minority interests” and “net deferred gains or losses onhedges (after tax)” are now presented as components of net assets. Accordingly, the presentation of net
assets in the balance sheet as of March 31, 2007 is not directly comparable to shareholders’ equity for priorperiods.
(5) Risk-adjusted capital data for the fiscal year ended March 31, 2007 are calculated under Basel II basis while
those through the fiscal year ended March 31, 2006 are calculated under Basel I basis. 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,
Financial Stabilization Funds, pension liabilities, consolidation of variable interest entities and deferred taxes.
See “Item 5. Operating and Financial Review and Prospects—Reconciliation with Japanese GAAP.” In addition,
under Japanese GAAP, a restatement of prior year financial statements reflecting the effect of a change inaccounting principles is not permitted, unlike under U.S. GAAP, which generally requires a restatement upon a
voluntary change in accounting principles.

10

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 March 31,

High2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2008 (through August 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Low
Average(1)(yen per dollar)

Periodend¥133.46120.55114.30120.93121.81124.09¥115.71
104.18102.26104.41110.07117.69¥121.08112.75107.28113.67116.55120.48¥118.07104.18107.22117.48117.56118.69118.15119.84121.79124.09123.34119.76116.01117.69119.77121.08118.41118.04

—
—
—
—
—
—

—
—
—
—
—
—

Calendar year 2007

March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August (through August 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 August 9, 2007 was ¥118.69 = $1.00.
3.B. Capitalization and Indebtedness
Not applicable.
3.C. Reasons for the Offer and Use of Proceeds
Not applicable.

11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.”
Risks relating to our businessWe may incur significant credit-related 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 loan portfolio by regularly monitoring the credit profile of each of our customers, theprogress made on restructuring plans and loan concentrations in particular industries or corporate groups, and we
also regularly assess the value of collateral and guarantees. However, depending on future trends in the domestic
and global economic environment, the business environment in particular industries and other factors, the amountof our problem loans could increase significantly, including as a result of the deterioration in the credit profile ofcustomers for which we are the primary bank lender, other major customers or customers belonging to industries
to which we have significant credit exposure, and the value of collateral and guarantees could decline. In somecases, we may decide to subscribe to new equity issuances by customers if we deem it economically prudent. For
example, in the fiscal year ended March 31, 2007, in connection with the worsening financial condition of a
non-bank financial company customer due to changes in the regulatory environment of its industry, we incurredsignificant credit-related costs and impairment losses on preferred stock. We also subscribed to a new equity
issuance by such customer in May 2007. Including with respect to such cases, there can be no assurance thatcredit-related and other costs will not increase in the future.
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 recent years, we sold a portion of such investments, and we may make further sales in the future.
However, significant declines in Japanese 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, 45% of unrealized gains on such investments, based on Japanese
GAAP, is included within capital for purposes of the calculation of our capital adequacy ratios, and as a result, adecline in the value of such investments would negatively affect such ratios.
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, 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, mainly due to differences inmaturities between financial assets and liabilities, changes in interest rates could have an adverse affect on our
average interest rate spread. We manage interest rate risk under our risk management policies, which provide foradjustments in the composition of our bond portfolio and the utilization of derivatives and other hedging methods
12to reduce our exposure to interest rate risk. However, in the event of a significant increase in interest rates,
including as a result of a change in Japanese monetary policy and market trends, our financial condition andresults of operations 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 currencytranslation 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 bematerially and adversely affected if future foreign exchange rate fluctuations significantly exceed our expectations.
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 interest rateenvironment 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 and projected
benefit obligations.
Failure to maintain capital adequacy ratios above minimum required levels could result in restrictions on
our business activities.
We endeavor to maintain sufficient levels of capital adequacy ratios taking into account our plans forinvestments in risk assets, the efficiency of our capital structure and other factors. However, our capital adequacy
ratios could decline in the future if our financial condition deteriorates significantly, as a result of thematerialization of any of the risks enumerated in these “Risk Factors” or other factors. If the capital adequacy
ratios of us and our banking subsidiaries, which are calculated pursuant to standards set forth by Japan’s
Financial Services Agency and based on Japanese GAAP, 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 a suspension of a
portion of our business operations.
Our capital adequacy ratios could decline due to regulatory changes.
The Financial Services Agency’s rules concerning banks’ capital adequacy ratios are based upon theframework set by the Basel Committee on Banking Supervision. Pursuant to a recent revision to the frameworkby the Basel Committee the Financial Services Agency implemented new rules in March 2007 that reflect such
revision. As a result of the new rules, our capital adequacy ratios could become subject to more volatility fromyear to year due for example to the requirement to apply variable risk weights according to the internal credit
rating that we assign to each obligor.
In addition, beginning March 2006, the Financial Services Agency began to apply upper limits to the amountof net deferred tax assets for purposes of calculating capital adequacy ratios. Under the new regulation, themaximum amount of net deferred tax assets under Japanese GAAP that major Japanese banks, including bankholding companies, can record without diminishing the amount of Tier 1 capital for purposes of calculating capital
adequacy ratios was reduced to 40% and 30% of Tier 1 capital as of March 31, 2006 and 2007, respectively, andwill be further reduced to 20% as of March 31, 2008. As of March 31, 2007, our net deferred tax assets underJapanese GAAP on a consolidated basis were ¥170.8 billion, which was equivalent to 3.4% of Tier 1 capital.
The implementation of these and other new rules relating to capital adequacy ratios could have an adverse
effect on our capital adequacy ratios and those of our banking subsidiaries.
13

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.

Our business will be adversely affected if we encounter difficulties in raising funds.
We rely principally on deposits and debentures as our funding sources. In addition, we also raise funds inthe financial 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 a decline in the Japanese
economy or concerns regarding the Japanese financial system.

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, securities, trust 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 throughbusiness alliances, which expose us to new risks. In addition, risks related to our existing businesses could
increase as in the case of the recent increase in Japan of ATM card-related fraud. While we have developed andintend to maintain risk management policies that we believe are appropriate to address such risks, if a riskmaterializes in a manner or to a degree outside of our expectations, our business, financial condition and resultsof operations could be materially 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 and regulations, but they may not be effective in preventing all future violations. For
example, in August 2006, Mizuho Bank received a warning from the Japan Fair Trade Commission that thecontent relating to applicable interest rates on an advertisement for mortgage loans could be misleading andtherefore could be in violation of a related law. In addition, there have recently been some cases in which otherJapanese financial institutions have been the subject of regulatory actions in areas such as financial products sales
and anti-money laundering practices. Future violations of laws and regulations could result in regulatory action
and harm our reputation, and our business, financial condition and results of operations could be materially andadversely affected.
14

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 reduce
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. For example, Mizuho Securities Co., Ltd. incurred a loss of ¥40.7 billion andreceived a business improvement order from the Financial Services Agency as a result of an erroneous stock
brokerage order by an employee in December 2005. Significant operational errors and misconduct in the future
could result in losses, regulatory action or harm to our reputation.
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 and development and renewal ofcomputer systems. In the event of any such disruption, our business, financial condition and results of operations
could be materially and adversely affected due to disruptions in our business operations, liability to customers
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 which became fully effective in April 2005,
may not be effective in preventing all such problems. For example, a former employee of Mizuho Bank wasarrested in February 2006 for allegedly leaking customer information, and Mizuho Bank received a business
improvement order from the Financial Services Agency in connection with the leakage. Leakage of important
information in the future could result in liabilities and regulatory actions and may also lead to significant harm to
our reputation.
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.
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
We engage in operations with entities in Iran and maintain a representative office in Iran. Such operations
consist primarily of project financing as well as trade financing for general corporate purposes. The U.S.
Department of State has designated Iran as a state sponsor of terrorism, and U.S. law generally prohibits U.S.
persons from doing business with Iran. We do not believe our operations relating to Iran are material to ourbusiness, financial condition or results of operations. We maintain policies and procedures to ensure compliancewith applicable Japanese and U.S. regulations.
15

We are aware of initiatives by U.S. governmental entities and U.S. institutional investors, such as pension
funds, to adopt laws, regulations or policies prohibiting transactions with or investment in, or requiring
divestment from, entities doing business with Iran and other countries identified as state sponsors of terrorism. It
is possible that such initiatives may result in our being unable to retain or acquire entities that are subject to suchprohibitions as customers or investors in our securities. In addition, depending on socio-political developments,
our reputation may suffer due to our association with these countries. The above circumstances could have asignificant adverse effect on our business or the price of our securities.
Our risk management policies and procedures may not adequately address unidentified or unanticipatedrisks.
We have devoted significant resources to strengthening our risk management policies and procedures andexpect to continue to do so in the future. Despite this, and particularly in light of the rapid evolution of ouroperations, 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 our use of observed historical market behavior.
As a result, these methods may not accurately predict future risk exposures, which could be significantly greaterthan the historical measures indicate.
We may be adversely affected if economic 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, we could experience weakness
in our business, as well as deterioration in the credit quality of our loan portfolios, which could adversely affectour 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 various laws and regulations in and outside of Japan, including those applicable tofinancial institutions as well as general laws applicable to our business activities. If the laws and regulations thatare applicable to us are amended or otherwise changed, for example 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.
The market for financial services in Japan is increasingly competitive.
Ongoing deregulation in Japan has significantly lowered the barriers to entry with respect to the provision ofbanking, securities, trust and other financial services. While such deregulation has the effect of increasing ourown business opportunities, it also allows other major financial groups, foreign financial institutions, non-bankfinance companies, government-affiliated entities such as Japan Post and other financial services providers toenter into new business areas or expand existing businesses. As a result, competition in the financial services
industry has been intensifying in recent years and could intensify further in the future. If we are unable torespond effectively to current or future competition, our business, financial condition and results of operations
could be adversely affected.
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. Japan has historically been prone to major earthquakes. Our
business, financial condition and results of operations could be adversely affected if our recovery efforts,
including our implementation of contingency plans that we have developed, are not effective in preventing
significant disruptions to our business operations caused by natural disasters and criminal acts.
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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, we could lose new and existing customers in which case our business, financial condition
and results of operations could be materially and adversely affected.
Our failure to establish, maintain and apply adequate internal control over financial reporting in a timely
manner could negatively impact the price of our securities.
We are evaluating our internal controls over financial reporting to allow management to report on, and our
independent registered public accounting firm to attest to, the effectiveness of our internal controls over financial
reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002 and rules and regulations of the SEC
promulgated pursuant thereto. These requirements will first apply to our annual report on Form 20-F for the fiscal
year ending March 31, 2008. We are currently performing the system and process evaluation and testing in an effort
to comply with the requirements. Although we plan to design enhanced processes and controls to address any issue
that might be identified through our evaluation and testing, we cannot assure that we will be able to do so in a timely
manner. If we fail to do so, our management may not be able to conclude that we have effective internal controls.
Furthermore, even if our management concludes that our internal controls are effective, our independent registeredpublic accounting firm may still be unable to issue a report that concludes that our internal controls over financial
reporting are effective. In either case, we may lose investor confidence in the reliability of our financial statements,
which in turn could negatively impact the price of our securities.
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 Company Law 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 Company Law, 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, senior management or corporate auditors, 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, senior
management and corporate auditors reside outside the United States. Many of the assets of us and these persons
are located in Japan and elsewhere outside the United States. It may not be possible, therefore, for U.S. investors
to effect 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.

17

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.
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.

18

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, and the respective trust bank subsidiaries merged on the same date to form
Mizuho Trust & Banking.
A further major step in the Mizuho group’s development occurred in April 2002 when the operations of our threepredecessor banks were realigned through a corporate split and merger process under Japanese law into a wholesalebanking subsidiary, Mizuho Corporate Bank, and a banking subsidiary serving primarily retail and small and mediumsized enterprise customers, 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 group through a stock-for-stock exchange with Mizuho Holdings,
which became an intermediate holding company focused on management of the Mizuho group’s banking andsecurities businesses. The legal and commercial name 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, Mizuho Corporate Bank, 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 call the “revitalization
subsidiaries,” we deemed the corporate revitalization project to be complete, and each of the revitalization
subsidiaries was merged into its respective banking subsidiary parent.
As part of our “Channel to Discovery” strategic plan, we realigned our entire business operations into a
Global Corporate Group, Global Retail Group and Global Asset and Wealth Management Group in the fiscal
year ended March 31, 2006. 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 thatprovides advisory services to financial institutions.
In March 2007, Mizuho Securities and Shinko Securities Co., Ltd. entered into a merger agreement. The
merger is subject to approval from the relevant authorities, and the expected merger date is January 1, 2008. We
determined it necessary to restructure our securities business to enable us to offer competitive cutting-edge
financial services on a global basis and believe that the merger will integrate the strengths of the two companies.
Principal Capital Expenditures and Divestitures
In May 2005, Mizuho Financial Group established a trust, with our subsidiary, Trust & Custody Services
Bank, Ltd., as trustee, to sell gradually 250 million shares of common stock it held in Mizuho Trust & Banking,equaling 4.98% of the then-outstanding shares of common stock of Mizuho Trust & Banking, at prevailing pricesof such shares on the Tokyo Stock Exchange. The trust was terminated in September 2005 after completing thesale of all such shares.
In October 2005, UC Card Co., Ltd., our credit card subsidiary, conducted a corporate split to separate its
credit card issuance business from its merchant acquisition and processing businesses. Following the corporate split,
we sold the credit card issuance business to Credit Saison Co., Ltd. for ¥27.5 billion in connection with our alliancewith Credit Saison relating to the credit card business. In January 2007, Mizuho Bank purchased 4,683,700 sharesof common stock of Credit Saison, resulting in Mizuho Bank owning 2.81% of the total outstanding shares ofcommon stock of Credit Saison as of March 31, 2007 in furtherance of our aim to promote our alliance with Credit
Saison.
19

Other Information
Our registered address is 5-5, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-0004, Japan, and our telephone
number is 81-3-5224-1111.
4.B. Business Overview
GeneralWe offer a variety of financial services, including banking, securities, trust and asset management services.
Mizuho Bank, our retail banking subsidiary, as of March 31, 2007 had approximately 25 million individual
deposit accounts and made loans to approximately 100,000 small and medium-sized enterprises, or SMEs, andmiddle-market corporations. Customers of Mizuho Corporate Bank, our wholesale banking subsidiary, include
large Japanese corporations such as corporations listed on Japanese stock exchanges, financial institutions, public
sector entities and foreign corporations, including foreign subsidiaries of Japanese corporations. Our large
Japanese corporate customers include approximately 70% of all companies listed on the Tokyo, Osaka andNagoya stock exchanges. In our business model, we have established a group structure based on customer
segmentation and business function to enhance our ability to respond to our customers’ various needs.
Channel to Discovery Plan
In April 2005, we launched our new business strategy called the “Channel to Discovery” Plan. We continue
to implement our Business Portfolio Strategy and Corporate Management Strategy developed under this plan toenhance our position as a global financial group.
Our Business Portfolio Strategy
We realigned our businesses into the following three Global Groups based on our customers’ needs: the
Global Corporate Group; the Global Retail Group; and the Global Asset & Wealth Management Group. We
strive to continue enhancing our profitability by leveraging the respective strengths of our Global Groups. The
following summarizes the business activities of each of our three Global Groups:•

The Global Corporate Group provides sophisticated banking and securities products and services thatmeet the various needs of large corporations and other customers in and outside of Japan, utilizing ourcomprehensive financial expertise.

•

The Global Retail Group provides a wide range of financial products and services, including those
provided through collaborations with leading domestic and international companies, that meet thediverse needs of individuals, SMEs, and middle-market corporations in Japan.

•

The Global Asset & Wealth Management Group provides trust, custody and private banking products
and services that meet the diversified and sophisticated needs of our customers.

Specific initiatives that we implemented in pursuing our Business Portfolio Strategy include the following:•

We established Mizuho Private Wealth Management, a private banking subsidiary, in October 2005.

•

We reorganized our business structure in October 2005 to make each of our two strategic retailsubsidiaries, UC Card, our credit card subsidiary, and Mizuho Capital Co., Ltd., our venture capitalsubsidiary, a direct subsidiary of Mizuho Bank.

•

Mizuho Bank began collaborating with Wachovia Bank N.A. and Wells Fargo Bank N.A. in April 2005
in areas such as mutual referral of customers, cash management products, trade finance and sales ofinvestment trust products in Japan. Mizuho Bank and Wachovia also maintain mutual links to eachother’s website.
20

•Mizuho Trust & Banking and Mizuho Bank began collaborating with The Bank of New York in April
2005 in areas including offering investment strategies to customers, such as Japanese corporate pension
funds, utilizing The Bank of New York group’s alternative investment capabilities, sales of aninvestment trust that utilizes the Bank of New York group’s asset management capabilities and therespective global custody businesses of the parties.

•

We reorganized Mizuho Holdings in October 2005 into a new advisory company, Mizuho Financial
Strategy, which provides advisory services to financial institutions.

•

In October 2005, we merged our four consolidated subsidiaries that specialized in borrower
revitalization, or our revitalization subsidiaries, into their respective principal banking subsidiary parent,with the completion of their assigned roles.

Our Corporate Management Strategy
We are implementing the following measures in connection with our Corporate Management Strategy:•

List on the New York Stock Exchange. In November 2006, we listed American Depository Receipts
representing interests in our shares on the New York Stock Exchange with an aim to enhance investor
confidence through improved transparency with respect to our corporate disclosure and corporate
governance.

•

Corporate social responsibility or CSR activities. We are enhancing our CSR activities on a group-widebasis with an emphasis on promotion of environmental conservation and support of financial education.
We established a CSR committee in May 2005 to enhance our CSR activities on a group-wide basis. We
also began publishing an annual CSR report in February 2006 to promote communication with our
stakeholders. In addition, to support financial education, we sponsor academic courses in someuniversities at which our employees offer lectures. We also began a joint research program in April
2006 with Tokyo Gakugei University regarding financial education in schools. Furthermore, at Mizuho
Corporate Bank we recently re-adopted a stricter, revised version of the Equator Principles, which arevoluntary international self-regulatory guidelines relating to the financing of large-scale development
projects. These guidelines will help us better assess and evaluate social and environmental impacts ofproject finance in which we are involved.

•

Brand Strategy. We are pursuing our corporate branding strategy based on the slogan “Channel toDiscovery.” We are determined to be “a financial partner that helps customers shape their future andachieve their dreams” by sharing within the Mizuho group three key concepts, “enterprising,” “open”
and “leading-edge,” that we believe reflect our strengths and challenges.

Group Operations
The Global Corporate Group
Mizuho Corporate Bank
Mizuho Corporate Bank provides various sophisticated financial services to large Japanese corporations
such as corporations listed on Japanese stock exchanges and their affiliates, financial institutions, public sector
entities and foreign corporations, including foreign subsidiaries of Japanese corporations. We meet the needs ofour customers by utilizing our strengths such as our broad customer base, comprehensive financial expertise andinternational office network which covers major cities in and outside Japan.
Mizuho Corporate Bank engages in customer relationship management through its Global RM Group, while
individual financial products and services are developed and provided by the Global Investment Banking Group,
the Global Transaction Banking Unit and the Global Markets Unit and the Global Alternative Investment Unit.
We offer innovative financial products and services to our customers by integrating these two functions. In
addition, the Global Portfolio Management Unit actively manages credit risk.
21

Global RM GroupThe Global RM group is divided into the following three business units based on customer segment:•

the Corporate Banking Unit;•

the Financial Institutions & Public Sector Business Unit; and•the International Banking Unit.

The units serve as our contact point with our customers such as large corporations, financial institutions andpublic sector entities in and outside Japan.
Corporate Banking Unit
The Corporate Banking Unit engages in relationship management for large Japanese corporations and theiraffiliates.
In this area, we offer financial products and services on a global basis by utilizing the expertise of our groupcompanies to meet the increasingly diverse and sophisticated needs of our customers. For example, we makeproposals related to mergers and acquisitions and business restructuring of our customers in cooperation withsections specializing in those businesses. We also offer suitable financing and optimal solutions for ourcustomers by enhancing cooperation with our group companies including Mizuho Bank, Mizuho Securities andMizuho Trust & Banking.
Financial Institutions & Public Sector Business Unit
The Financial Institutions & Public Sector Business Unit engages in relationship management for Japanesefinancial institutions and public sector entities. The unit also engages in businesses related to bonds issued bycorporations, financial institutions and public sector entities.
For financial institution customers, we offer various products and services that enhance their investment
capabilities, facilitate the restructuring of their loan portfolio and address the managerial and strategic issues thatthey face by utilizing our expertise.
We provide Japanese public sector entities with various financing alternatives such as syndicated loans andsecuritization transactions as well as advisory services related to managerial issues arising from, among others,
reforms related to public sector entities and government investment and loan programs.
Regarding our bond-related businesses, we support our customers’ financing needs by underwriting bonds
issued by pubic sector entities and working as the commissioned bank or fiscal agent for bonds issued bycorporations, financial institutions and public sector entities.
International Banking Unit
The International Banking Unit engages in relationship management for foreign corporations, including
foreign subsidiaries of Japanese corporations.
We support our Japanese customers to expand their foreign operations, utilizing our financial expertise as
well as alliances with foreign financial institutions. In particular, we are promoting the support of our Japanese
corporate customers in connection with their entry into the Chinese market by offering advisory and otherservices. We also actively provide financial services to foreign corporations that are not affiliated with Japanese
corporations through our global network.
In addition, we endeavor to meet the diverse needs of our overseas customers with respect to, among others,
management buy-outs, project finance and trade finance. We also promote our asset management businesses,
including the establishment of investment funds and management of collateralized debt obligations.
22

We are currently strengthening our international network by establishing new branches and offices or
through the utilization of alliances with or investments in foreign financial institutions mainly to help enhance
our medium-term profitability and strengthen our capability to support Japanese customers. For example, we
opened branches in New Delhi, India in May 2006, Wuxi, China in June 2006. Mizuho Corporate Bank
Nederland N.V., a subsidiary of Mizuho Corporate Bank, opened a branch in Brussels, Belgium in July 2006. In
addition, we opened a branch in Ho Chi Minh City, Vietnam in October 2006, representative office of our New
York Branch in Sao Paulo, Brazil in February 2007, a representative office in Moscow, Russia in March 2007, a
branch in Milan, Italy in April 2007, a representative office of our New York Branch in Mexico in May 2007 anda branch in Dubai in June 2007. Also, in October 2006, we agreed with The Michinoku Bank, Ltd. to acquire allof the outstanding shares of its Russian subsidiary, The Michinoku Bank (Moscow) Ltd. We established Mizuho
Corporate Bank (China), Ltd. in June 2007, and we transferred the businesses of our branches in Shanghai,
Shenzhen, Dalian, Beijing and Wuxi to the new company. In addition, we opened a branch in Tianjin, China inJuly 2007 as a branch of Mizuho Corporate Bank (China).
In December 2006, Mizuho Financial Group and Mizuho Corporate Bank obtained Financial Holding
Company status from the U.S. regulatory authorities, thereby enabling our securities company subsidiary in the
United States to engage in comprehensive investment banking businesses, such as the underwriting and dealingof corporate bonds, equities and other types of securities. Going forward, we plan to promote our full line offinancial services through a collaboration between our banking and securities operations of U.S. subsidiaries.
Global Investment Banking GroupThe Global Investment Banking Group consists of two units, the Global Syndicated Finance Unit and the
Global Financial Products Unit. We provide our customers with sophisticated financial solutions by integrating
the functions of the two units.
Global Syndicated Finance Unit
The Global Syndicated Finance Unit engages in the loan syndication business.
We offer syndicated loan services to meet the various financing needs of our customers, and we aim to help
grow the Japanese syndicated loan market as a leader in this market. During the fiscal year ended March 31,
2007, our group arranged, based on amount of principal, approximately 33% of all syndicated loans arranged inJapan. Mizuho Corporate Bank is arranging new types of syndicated loans such as those related to mergers andacquisitions and corporate reorganizations.
Geographically, we maintain staff at branches and offices in Asia, the United States and Europe to promote
our syndicated loan business on a global basis. For example, we arrange syndicated loans in Japan for foreign
corporations and sell syndicated loans arranged in overseas markets to Japanese investors.
We also conduct activities to help grow the Japanese secondary loan market, including by exchanging ourloan portfolio with those of other financial institutions, broadening the investor base and enhancing our
relationships with regional financial institutions. In the fiscal year ended March 31, 2007, Mizuho Corporate
Bank engaged in loan trading of more than ¥1 trillion.
Global Financial Products Unit
The Global Financial Products Unit engages in structured finance, leveraged finance, real estate finance andproject finance businesses.
We are strengthening our origination functions and expanding our range of products and services throughcooperation with the Global Syndicated Finance Unit and our group companies, including Mizuho Securities,
Mizuho Corporate Advisory Co., Ltd. and Mizuho Capital Partners Co., Ltd.
23

Global Transaction Banking Unit
The Global Transaction Banking Unit engages in businesses related to cash management, custody, foreignexchange, trade finance and pension-related services. With respect to Internet-related services, we provide online
solutions such as domestic and global cash management services to our customers.
We also promote yen settlement and clearing services, continuous linked settlement services, custody
services and outsourced securities settlement services.
We offer foreign exchange and trade finance products and services in cooperation with our overseas
branches and offices.
We provide customers of our pension-related services with pension plan proposals relating mainly todefined contribution plans by cooperating with Mizuho Trust & Banking and other group companies. Mizuho
Corporate Bank also sells trust products as an agent of Mizuho Trust & Banking.
Global Markets Unit
The Global Markets Unit engages in the business of providing investments in, and sales and trading of,financial products related to, among others, interest rates, foreign exchange, credit, equity and commodities.
We continue to enhance the sophistication of our portfolio management methods and diversify ourinvestments by investing in alternative funds and credit-related products such as corporate bonds and credit
derivatives.
Global Alternative Investment Unit
The Global Alternative Investment Unit engages in the alternative asset management business, including
offering structured credit products, such as collateralized debt obligations and sophisticated investment products
such as hedge funds, to institutional investors.
In April 2007, we established an alternative investment management company in the United States. Goingforward, we plan to continue to strengthen our network of operations in America, Europe and Asia, including
through the establishment of an alternative investment management company in Tokyo, in order to enhanceaccess to global money flows and offer more sophisticated investing opportunities.
Global Portfolio Management Unit
The Global Portfolio Management Unit manages our various portfolios, mainly our loan portfolio. We
actively manage credit and other risks through diversification and enhancement of our operations, including useof credit derivatives that can contribute to the reduction of credit risk concentration and enhancement of portfolio
value and strengthen our strategic risk-taking capabilities.
Mizuho Securities
Mizuho Securities provides securities services mainly to Japanese and foreign institutional investors,
corporations, financial institutions and public sector entities. Our goal is to become a market leader in theJapanese investment banking industry by providing products and services that best satisfy the diverse needs ofour customers. Mizuho Securities pursues group synergies by cooperating with other group companies such as
Mizuho Corporate Bank.
We maintain securities subsidiaries in major international financial centers such as London, New York,
Hong Kong and Zurich to satisfy the needs of global institutional investors.
24

Mizuho Securities and Shinko Securities Co., Ltd. are planning to merge in January 2008, subject toregulatory approval. The merged entity will aim to offer competitive cutting-edge financial services on a global
basis through the combining of Mizuho Securities’ global investment banking business platform and Shinko
Securities’ client base and business network as a full-service securities company covering all of Japan. Whencalculated based on the share ownership of the related entities as of March 31, 2007, and including treasury stockin the denominator only, our expected ownership percentage of the merged entity would be approximately 58%.
Equity Underwriting and Trading BusinessWe are endeavoring to strengthen our equity underwriting business by making proposals related to, among
other things, new issuance of stock or convertible bonds. We are also strengthening our capability to meet theinvestment needs of global institutional investors through our equity trading business.
Bond Underwriting and Trading BusinessWe provide bond underwriting services to issuers, including Japanese corporations and public sector
entities, as a leading underwriter in the Japanese market. We also endeavor to maintain our leading position in
the secondary bond market by expanding our customer base and enhancing our ability to manage bond trading
positions.
Investment Banking BusinessIn this business, we actively provide proposals regarding mergers and acquisitions or structured financetransactions by anticipating the financial needs of our customers.
Global Retail Group
Mizuho Bank
Mizuho Bank provides financial services mainly to individual customers, SMEs, middle-market
corporations and local governmental entities in Japan. In addition to our broad customer base, we maintain one of
the largest branch and ATM networks in Japan and a broad range of Internet banking services.
Mizuho Bank has the following five principal business groups:•

the Consumer and Private Banking Group;•

the Corporate Banking Group;•

the Public Sector Banking Group;•

the Trading and ALM Group; and•the Business Development Group.

Consumer and Private Banking GroupThe Consumer and Private Banking Group offers a broad range of financial products and services toindividual customers, including various types of loans and deposits as well as consulting and credit card services.
We are enhancing our relationship marketing efforts by offering products and services that meet the diverse
needs of our customers, establishing convenient access points for customers and providing specialized consulting
services by utilizing the comprehensive expertise of our group companies.
We provide specialized consulting services mainly to targeted customers who have financial assets of morethan ¥10 million with us, of which there were approximately 900,000 as of March 31, 2007. For example, wehave increased the number of financial consultants to approximately 2,300, as of March 31, 2007, that makeproposals regarding investments such as investment trusts, foreign currency deposits, individual annuities and25

Japanese government bonds sold to individual customers. Our goal is to increase the number of our financial
consultants to 3,000 over time. We have expanded “Premium Salons,” a designated space for private
consultations with customers, at 250 branches, as of March 31, 2007. We have also developed a database of ourindividual customers, which we call “Relationship Marketing Database,” to assist our consulting staff inmarketing financial products that are most suitable for the specific customer. For customers with financial assets
of more than ¥100 million with us, we offer private banking services by specialized private bankers. In addition,
we also meet our customers’ one-stop shopping needs for banking, trust and securities services by operating
securities consulting booths, which we call “Planet Booths,” to offer the services of Mizuho Investors Securities
Co., Ltd. in the lobbies of 100 branches and offices as of March 31, 2007 and by selling trust products at all
Mizuho Bank branches as agents of Mizuho Trust & Banking. We began offering separately managed accounts,
also called wrap accounts, under which customers’ financial assets are managed on a discretionary basis, of
Shinko Securities Co., Ltd., in May 2006 and of Mizuho Investors Securities in October 2006 as their sales agent.
In our housing loan business, we have reconfigured our credit screening process to reduce our response time
to our potential customers. We also offer various products, such as “Flat 35,” a housing loan product with a 35
year fixed rated offered in cooperation with and securitized by the Japan Housing Finance Agency. In addition,
we have expanded the number of our housing loan centers which promote our housing loans through ties withreal estate developers and brokers.
With respect to unsecured loan products, we cooperate with Orient Corporation to develop unsecured loan
products such as “Captive Loans,” installment loans for shopping guaranteed by Orient Corporation, and cardloans. We also endeavor to enhance our retail loan business through our corporate customer base by, forexample, offering our products and services to employees of our corporate customers, including those of Mizuho
Corporate Bank.
We offer Mizuho Mileage Club, a membership service through which members can receive benefits
depending on the level of business relationship with Mizuho Bank and accumulate points when they use credit
cards and conduct other transactions with Mizuho Bank. As of March 31, 2007, we had approximately
3.27 million members. We issue to Mizuho Mileage Club members ATM cards with credit card functions called
the Mizuho Mileage Club Card, which we issue under the UC (MasterCard) brand and Saison (VISA, JCB or
AMEX) brand. In October 2005, we also consolidated the credit card issuance business of UC Card into Credit
Saison in order to strengthen our credit card business. We plan to conduct a full-scale integration and realignmentof our credit card operations, including the establishment of a third-party credit card processing company. In
furtherance of our aim to promote our alliance with Credit Saison, in January 2007, Mizuho Bank purchased
4,683,700 shares of common stock of Credit Saison, resulting in Mizuho Bank and Mizuho Corporate Bank
together owning 5.3% of the total outstanding shares of Credit Saison’s common stock as of January 31, 2007. In
addition, we offer the Mizuho Suica Card, an ATM card with credit card, train ticket and electronic money
functions in alliance with East Japan Railway Company.
As of March 31, 2007, we had 378 staffed branches throughout Japan, including 42 “Mizuho Personal
Squares” which are branches that are designed to focus on serving individual customers. We will continue toexpand our convenient and efficient points of contact for individual customers by enhancing our Mizuho Personal
Square network. We also plan to establish 100 new retail-only branches, including through the conversion of
sub-branches into branches, and we plan to promote the cooperation between full-service branches and retail-only
branches through a framework we call the “Area Branch System.” In addition, we will expand our ATM networkand enhance our Internet banking, telephone banking and mobile-phone banking systems, introduce a credit card
settlement service that utilizes mobile phones, introduce a finger vein pattern authentication system to improve thesecurity of ATM transactions and strengthen marketing through call centers.
Corporate Banking GroupThe Corporate Banking Group provides products and services mainly to SMEs and middle-market
corporations.
26

We provide our customers with suitable financing arrangements together with sophisticated advisory andother services to meet customer needs.
Our marketing efforts for loans products include the allocation of dedicated staff at branches to engage infinding new customers, applying different marketing strategies for different customer segments based on the sizeof the customers’ annual sales, developing new strategic loan products and establishing approximately 100“Mizuho Business Financial Centers” which primarily engage in loans to smaller enterprises based on interest
rates commensurate with each borrower’s risk profile.
We offer our SME and middle-market corporation customers syndicated loans, advisory services related tooverseas expansions, mergers and acquisitions-related services, trade finance, securities products acting as sales
agent for securities companies, services related to defined contribution pension plans and support for start-up
companies in cooperation with Mizuho Capital. We call our provision of these services our “solutions business.”
Public Sector Banking Group
The Public Sector Banking Group provides comprehensive financial services to meet the various needs of
local governmental entities and other public sector entities, including services related to bank and capital markets
financing to diversify their funding sources and various investment products and advisory services related toorganizational restructuring and streamlining. We will continue to promote business with local governmental
entities through our network of branches and offices.
Trading and ALM GroupThe Trading and ALM Group engages in investing in, and sales and trading of, financial instruments related
to, among others, interest rates, foreign exchange and securities, including derivative instruments. We are
increasing and diversifying our various investing activities, including investments in corporate bonds andsecuritized products, while strengthening our risk management capabilities.
Business Development Group
Securities and Trust Division
The Securities and Trust Division offers services related to capital markets financing such as the issuance ofcorporate bonds and markets its services by anticipating the financial needs of our customers. In cooperation withgroup securities companies, including Mizuho Investors Securities, we endeavor to satisfy the investment andfinancing needs of SMEs and middle-market corporations and the investment needs of individuals. As the sales
agent of Mizuho Trust & Banking, we also satisfy various needs of our corporate and individual customers
through providing a variety of trust products.
e-business Development Division
The e-business Development Division provides products and services related to information technology
such as offering cash management services and developing IC cards.
“Takarakuji” Lottery Division
The Takarakuji Lottery Division engages in the business of acting as an administrative bank for the
Takarakuji lottery, the principal public lottery program in Japan.
Mizuho Investors Securities
Mizuho Investors Securities is our securities company subsidiary that focuses on the needs of mainly
individual customers, SMEs and middle-market corporations. We offer securities services that meet the diverse
needs of our customers through a network of Planet Booths in 100 Mizuho Bank branches as of March 31, 2007,27

and we aim to expand coordinated sales channels going forward. Some of the services and products of Mizuho
Investors Securities are offered through Mizuho Bank as sales agent. In addition, we continue to enhancecooperation with other group companies. For example, we provide underwriting and other services in connection
with initial public offerings by Mizuho Bank’s customers, while Mizuho Trust & Banking may act as stocktransfer agent for issuers.
Global Asset and Wealth Management Group
Mizuho Trust & Banking
Mizuho Trust & Banking is a trust bank that provides customers with various financial services, including
mainly trust services such as money trusts and pension trusts. We offer these trust-related products andconsulting services in cooperation with our group companies. For example, Mizuho Bank and Mizuho Corporate
Bank act as sales agents with respect to the products and services of Mizuho Trust & Banking.
Trust and Asset Management BusinessIn this area, we provide services related to money trusts, pension trusts, investment management, real estatetransactions, securitization, stock transfer agent business, testamentary trusts and others.
We have been introducing various new types of trust products and services by anticipating customers’ needs
and based on the deregulation of the Japanese trust industry. We aim to continue strengthening businesscollaborations with group companies to pursue synergies and enhancing consulting services to our customers.
Banking BusinessWe provide financing such as non-recourse real estate loans and loans to finance the construction ofapartment buildings.
Mizuho Private Wealth Management
Mizuho Private Wealth Management offers comprehensive and integrated private banking services to meetthe various financial and non-financial needs of our customers.
Trust & Custody Services Bank
Trust & Custody Services Bank provides financial institutions and institutional investors with trust andcustody services and outsourcing services for securities custody. In addition, we offer account management
services developed in response to reforms in the Japanese securities settlement systems and securities lending
services to meet customer needs.
Asset Management Companies
In July 2007, Dai-Ichi Kangyo Asset Management Co., Ltd. and Fuji Investment Management Co., Ltd.
merged to form Mizuho Asset Management Co., Ltd. to consolidate their respective business platforms andaccumulated know-how.
Our asset management companies, Mizuho Asset Management and DLIBJ Asset Management Co., Ltd. (anequity-method affiliate of ours), provide investment management services for our group companies andcustomers. Each company offers a variety of investment trust products that meet the increasingly sophisticatedand diverse needs of our customers.

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Others
Mizuho Information & Research Institute Inc.
Mizuho Information & Research Institute mainly provides our corporate customers with the following threeservices:•

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 are able to provide customers with a combination of the above services to meet their respective needs.
Mizuho Research Institute Ltd.
Mizuho Research Institute offers information and services mainly to corporations, financial institutions andpublic 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 andeconomic issues.
Mizuho Financial Strategy
Mizuho Financial Strategy engages in advisory services for financial institutions regarding their
management and revitalization of their borrowers.
Competition
During the past several years, competition in the Japanese financial market has increased as the Japanese
government has enhanced deregulation, such as reducing the separation of banking, securities and insurance
businesses and promoting new entry into the financial businesses.
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 Post and the Development Bank of Japan.

•

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 of investors.

In global markets, we face competition with other commercial banks and other financial institutions,particularly major global banks and the leading domestic banks in those financial markets outside Japan in which
we conduct business.
Japanese Banking Industry
Private banking institutions in Japan are normally classified into two categories: (i) ordinary banks, of which
there were 126 as of April 2, 2007, not including foreign commercial banks with banking operations in Japan;and (ii) trust banks, of which there were 21 as of April 2, 2007, including Japanese subsidiaries of foreign
financial institutions and subsidiaries of Japanese financial institutions.
29Ordinary banks consist mainly of city banks and regional banks. City banks and regional banks are
distinguished on the basis of the location of their head office as well as the size and scope of their operations. The
term “city bank” is usually used to refer to five such ordinary banks, including Mizuho Corporate Bank andMizuho Bank. As of April 2, 2007, there were 111 regional banks, including member banks of the Second
Association of Regional Banks that were formerly counted among the mutual loan and savings banks.
The city banks are generally considered to be the largest and most influential group of banks in Japan.
Generally, these banks are based in large cities, such as Tokyo, Osaka and Nagoya, and operate domestically on anation-wide scale through networks of branch offices. City banks have strong links with large corporate customers,
including the major industrial companies in Japan. In light of deregulation and other competitive factors, however,many of these banks have placed increasing emphasis on other markets, including small and medium-sizedenterprise and retail banking, international operations and, more recently, investment banking and related services.
The regional banks tend to be much smaller in terms of total assets than the city banks. Most of the regionalbanks are based in one of the prefectures of Japan and may extend their operations to neighboring prefectures.
Their customers are mostly regional enterprises and local public utilities, although the regional banks also lend tolarge corporations.
As of April 2, 2007, there are 65 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.
New retail-oriented banks have emerged in recent years, including Internet banks and banks specializing inplacing 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.
A number of government financial institutions have been organized in order to supplement the activities ofthe private banking institutions. These corporations are government-owned and operate under its supervision
through senior officials appointed by the government. Their funds are provided mainly by government sources.
Among them are: The Development Bank of Japan, The Japan Bank for International Cooperation, Japan FinanceCorporation for Small and Medium Enterprise, and the Agriculture, Forestry and Fisheries Finance Corporation.
The Development Bank of Japan will be privatized, and other institutions, including Japan Bank for International
Corporation, Japan Finance Corporation for Small and Medium Enterprise and Agriculture, Forestry and
Fisheries Finance Corporation, will be consolidated. Japan Housing Finance Agency supports housing loans ofprivate institutions through the securitization of such loans.
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 post offices scattered throughout Japan operated by Japan
Post, a Japanese government entity. The system offers various types of deposits, at interest rates that are set inaccordance with a policy approved by the Minister of Internal Affairs and Communications with some reference
to the market-based interest rates of private-sector banks. As of March 31, 2007, the balance of deposits withJapan Post was approximately ¥186 trillion. Based on legislation enacted in October 2005, Japan Post isscheduled to be transformed into a joint stock corporation holding four operating companies in October 2007
with privatization of banking and insurance subsidiaries to be completed within a ten-year transitional period.
Supervision and Regulation
Japan
Pursuant to the Banking Law (Ginko Hou) (Law 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.
30

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 Law, 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 rediscounting 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 Law authorizes the Prime Minister to inspect banks and bank holding companies in Japan at
any time. The Financial Services Agency normally conducts annual inspections and follow-up reviews. By
evaluating banks’ systems of self-assessment, auditing their accounts and reviewing their 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 toa Financial Inspection Manual published by the Financial Services Agency. In July 2005, the Financial Services
Agency implemented a change to its approach in inspections and shifted its emphasis from normalizing theimpaired loan problem to the protection of customers’ interests and the strengthening of the Japanese financial
system through the initiative of the private sector. Under this framework, inspections by the Financial Services
Agency emphasize dialogue between inspectors and financial institutions and enhance process checking focusedon risk management and compliance with financial regulations. This framework also introduced a financial
inspection ratings system that came into force in April 2007, which provides inspection results in the form ofgraded evaluations intended to offer an incentive for management action as well as links to subsequent selective
regulatory measures in terms, among others, of frequency and scope of inspections. The Financial Services
Agency also issued Guidelines for Financial Conglomerate Supervision in June 2005 to address the risks inherent
in conglomerates, such as inefficiency of management due to complicated organization, conflict of interests andtransmission or concentration of risks within the conglomerates. The Guidelines for Financial Conglomerate
Supervision focus on items relating to the supervision of financial conglomerates, financial soundness, risk
31management and operations from the perspective of risks inherent to the conglomerates. Under the definition of
conglomerates as stipulated in the policy, Mizuho Financial Group is subject to this supervisory policy. In April
2007, the Financial Services Agency amended the Financial Inspection Manual in response to the need for further
protection of financial services customers, diversification of risks associated with new products and services andvarious legal reforms related to financial services.
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 theirsecurities business activities in accordance with the Securities and Exchange Law of Japan (Shouken Torihiki
Hou) (Law No. 25 of 1948, as amended).
Examination and Reporting Applicable to Shareholders
Under the Banking Law, 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 advance 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 Law, 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
subsequent change of 1% or more in any previously reported holding or any change in material matters set forthin reports previously filed, with some exceptions.
Deposit Insurance System
In 1971, the Deposit Insurance Law (Yokin Hoken Hou) (Law No. 34 of 1971, as amended) was enacted inorder to protect depositors in cases where financial institutions fail to meet their obligations. The Deposit
Insurance Corporation was established to implement the Deposit Insurance Law in the same year. 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, as
stipulated by a cabinet order.
The Deposit Insurance Corporation receives annual insurance premiums from insured banks, the amount of
which is, from April 2006, equivalent to 0.110% of the deposits that bear no interest, which are redeemable upon
demand and are used by depositors primarily for payment and settlement purposes, and 0.080% of other deposits.
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 of principal
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 are protected in full.
Participation in the deposit insurance system is compulsory for city banks (including Mizuho Corporate
Bank and Mizuho Bank), regional banks, long-term credit banks, trust banks (including Mizuho Trust &Banking), credit associations and co-operatives, labor banks and other financial institutions.
Governmental Measures to Treat Troubled Institutions
The Deposit Insurance Law was amended with effect from April 1, 2001 to construct a permanent systemfor dealing with failed financial institutions in Japan. This system superseded the framework for injecting public
32

funds into financial institutions provided under the Law Concerning Emergency Measures for Early Stabilizationof Financial Functions (Kinyu Kinou no Souki Kenzenka no tame no Kinkyu Sochi ni kansuru Houritsu) (Law
No. 143 of 1998, as amended), except for cases in which application was made prior to March 31, 2001, as wellas the framework for treating failed financial institutions under the Financial Reconstruction Law (Kinyu Kinou
no Saisei no tame no Kinkyu Sochi ni kansuru Houritsu) (Law No. 132 of 1998, as amended).
Under the Deposit Insurance Law, 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 may take the form of a monetary grant, loan or deposit of funds, purchase of
assets, guarantee or assumption of debts, subscription of preferred stock, or loss sharing. Where it is anticipatedthat the failure of a bank may cause an extremely grave problem in maintaining the financial order in Japan or thearea where such bank is operating, the following measures may be taken: (i) the Deposit Insurance Corporation
may subscribe for the shares or other instruments of the relevant bank in order to enhance capital adequacy of thebank; (ii) if the bank fails or suffers a capital deficit, financial aid exceeding the pay-off cost may be available tosuch bank; and (iii) in the case where the systematic risk cannot be avoided by the measure mentioned in(ii) above, the Deposit Insurance Corporation may acquire the bank’s shares.
The Strengthening Financial Functions Law
On June 14, 2004, the Strengthening Financial Functions Law (Kinyu Kinou no Kyouka no tame no
Tokubetsu Sochi ni kansuru Houritsu) (Law No. 128 of 2004) was enacted in order to establish a new scheme of
public money injection into financial institutions and thereby enhance the soundness of such financial institutions
and revitalize economic activities in the regions where they do business. The Strengthening Financial Functions
Law broadens the range of financial institutions to which public money is available and facilitates preventive
injection of public money into troubled financial institutions or financial institutions that are not yet troubled inorder to avert the possibility of a financial crisis. Applications for public money injection under theStrengthening Financial Functions Law need to be made by March 31, 2008.
Bank Holding Companies
Under the Banking Law, 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 Law (Shiteki Dokusen no Kinshi oyobi Kousei Torihiki no Kakuho ni kansuru Houritsu)(Law 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 Law. The Banking Law does, however, prohibit a bankholding company and its subsidiaries, on an aggregate basis, from holding more than 15% (in contrast to 5% in
the case of a bank and its subsidiaries) of the voting rights of certain types of companies not permitted to become
subsidiaries of bank holding companies.
Securities and Exchange Law
The Securities and Exchange Law permits financial institutions to compete in each other’s business areas
through subsidiaries. Banks and other depositary institutions are allowed to set up securities subsidiaries andcompete in the securities industry. The Securities and Exchange Law presently allows banks, subject toregistration with, and in some cases obtaining the approval of, the Prime Minister, among other things, tounderwrite and deal in Japanese government bonds, sell beneficiary certificates of investment trusts and33

securities issued by an investment company and engage in the securities intermediary business. Mizuho Financial
Group is required 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 by semi-annual and extraordinary reports pursuant to the Securities and Exchange Law.
On June 14, 2006, several amendments to the Securities and Exchange Law and other financial laws were
promulgated, including the introduction of the Financial Instruments and Exchange Law (Kinyu Shohin Torihiki
Hou) (FIEL) which will replace the Securities and Exchange Law. These laws will amend, with respect tovarious financial instruments, a number of laws to (1) enhance investor protections and (2) enhance investors’
convenience, promote financial innovation and facilitate finance. The FIEL is expected to become effective in
September 2007, and in any case within 18 months of its promulgation. Certain amendments to the Securities andExchange Law, including those relating to tender offers and large shareholding reports, have already become
effective. The new regime under the FIEL, among others, (i) establishes a cross-sectional framework of a wide
range of financial instruments and services, (ii) enhances disclosure such as requiring listed companies to filequarterly reports and enhancing internal control over financial reporting and (iii) relaxes regulations throughflexible application based on the nature of investors (professional or general public). The details of the new
regime are to be stipulated by a cabinet order or a ministerial ordinance prior to the implementation of the FIEL.
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 Law of Sales of Financial
Products (Kinyu Shouhin no Hanbai tou ni kansuru Houritsu) (Law No. 101 of 2000, as amended), effective from
April 2001, introduced measures to protect financial service customers by: requiring financial service providers
to provide customers with information concerning risks with respect to deficit of principal associated with thefinancial products they offer and any restrictions on the period for exercising rights or the period for rescission,
unless the customers fall within the ambit of financial service providers or express their intent to the contrary;and holding financial service providers liable for damages caused by a failure to follow those requirements. The
amount of loss of principal is refutably presumed to be the amount of damages. Additionally, the law requires
financial service providers to endeavor to solicit customers in an appropriate manner and formulate and publicize
a solicitation policy. The law amending the Law of Sales of Financial Products, together with other related laws
to become effective upon the amendments to the Securities and Exchange Law, was promulgated on June 14,
2006. The amended law will enlarge the scope of duty of financial services providers to inform customers ofcertain important matters related to the financial products they solicit.
Self-Assessment and Reserves
The prompt corrective action system requires financial institutions to establish a self-assessment program
which complies with the Inspection Manual issued by the Financial Services Agency and related laws such as the
Financial Reconstruction Law. Financial institutions are required to analyze their assets, giving due considerationto accounting principles and other applicable rules and to classify their assets into four categories according toasset 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 accountthe likelihood 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.
34

Credit Limits
The Banking Law 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 Law. The current
limits are 25% of the total qualifying capital of the bank holding company or bank and its subsidiaries andaffiliates with respect to a single customer and 40% of the total qualifying capital of the bank holding company
or bank and its subsidiaries and affiliates with respect to a customer group.
Restriction on Share Holdings
The Law Concerning Restriction on Shareholdings by Banks (Ginko tou no Kabushiki tou no Hoyu no
Seigen tou ni kansuru Houritsu) (Law No. 131 of 2001, as amended), effective from January 4, 2002, requires
Japanese banks (including bank holding 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 from September 30, 2006 in order to reduce exposure to stock price fluctuations.
Deferred Tax Assets
On December 5, 2005, the Financial Services Agency promulgated the new regulation which became
effective on March 31, 2006. Under the new regulation, the maximum amount of net deferred tax assets underJapanese GAAP that major Japanese banks, including bank holding companies, can record without diminishing
the amount of Tier 1 capital for purposes of calculating capital adequacy ratios was reduced to 40% and 30% ofTier 1 capital as of March 31, 2006 and 2007, respectively and will be reduced to 20% as of March 31, 2008 andwill remain at 20% thereafter.
Revaluations of Land
Under the Law Concerning Revaluation of Land (Tochi no Saihyoka ni kansuru Houritsu) (Law No. 34 of1998, as amended), banks, other financial institutions and large corporations were permitted to revalue their land
once during the period ended on March 31, 2002. Under this law, the unrealized appreciation of the land net oftaxes could be added to a company’s capital base and 45% of the gross unrealized appreciation of a bank’s land
could be included in its qualified supplementary capital.
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.
With regard to capital, these guidelines are in accordance with the standards of the Bank for International
Settlements for a target minimum standard capital adequacy ratio of 8% (at least half of which must consist ofCore Capital (Tier 1), a Core Capital ratio of 4%) on both a consolidated and non-consolidated basis for bankswith international operations, such as Mizuho Corporate Bank, or on a consolidated basis for bank holding
companies with international operations, such as Mizuho Financial Group. These guidelines place considerable
emphasis on tangible common shareholders’ equity as the core element of the capital base, with appropriate
recognition of other components of capital.
Banks and bank holding companies are required to measure and apply capital charges with respect to theirmarket risks in addition to their credit risks. Market risk is defined as the risk of losses in on- and off-balancesheet positions arising from movements in market prices such as the risks pertaining to interest rate related
instruments and equities.
35

Japanese banks with only domestic operations and bank holding companies the subsidiaries of which
operate only within Japan are subject to Japanese capital adequacy requirements that are similar to those
discussed above, except that those banks and holding companies are required to have a minimum capital
adequacy ratio of 4%, at least half of which must consist of Tier 1 capital and are not required to apply capitalcharges to their market risks.
In June 2004, the Basel Committee announced amended rules with respect to minimum capitalrequirements, which include amended risk weight calculations that introduce an internal ratings-based approachand the inclusion of operational risk in the calculations, as well as an emphasis on supervisory review and market
discipline through effective disclosure. The amendments adopt variable risk weights according to the credit
rating given to the obligor of the risk assets. The better the credit rating of an obligor is, the lower the risk weight
applicable to the risk assets owed by it. Also, the new rules require financial institutions to establish an internalrisk management system, to make thorough disclosure of relevant information and to set an appropriate reserveagainst the operational risk based upon fair evaluation thereof. Although these amendments do not change theminimum capital adequacy ratio of 8% applicable to banks with international operations, the same 8% ratio is
applicable to banks that adopt an internal ratings-based approach regardless of whether such bank has operations
outside of Japan. The new Financial Services Agency guidelines, which follow the amended rules, were
promulgated on March 27, 2006 and became effective on March 31, 2007, except for certain provisions
scheduled to take effect on March 31, 2008. Under the new guidelines, banks have several choices for the
methodologies to calculate 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.
Protection of Personal Information
The Personal Information Protection Law (Kojin Jouhou no Hogo ni kansuru Houritsu) (Law No. 57 of2003, as amended) became fully effective in April 2005. The law 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 theorder issued by the Financial Services Agency to take necessary measures to comply with the law subjects us tocriminal and/or administrative sanctions.
Prevention of Money Laundering
To address money laundering and terrorism concerns, the Law on Customer Identification and Retention ofRecords of Transactions by Financial Institutions (Kinyu Kikan tou ni yoru Kokyaku tou no Honnin Kakunin tou
ni kansuru Houritsu) (Law No. 32 of 2002, as amended) went into effect in January 2003. Under this law,financial institutions are required to perform customer identification procedures and keep records of theirtransactions as prescribed by ministerial order. In March 2007, the Law Preventing Transfer of Profits Generated
from Crime (Hanzai ni yoru Syueki no Iten Boushi ni kansuru Houritsu) (Law No. 22 of 2007) was promulgated.
This law, which replaces the Law on Customer Identification and Retention of Records of Transactions by
Financial Institutions and extends the duty to perform customer identification and other procedures to entities
other than financial institutions, such as credit card companies, will come into force by March 2008.
Law Concerning Protection of Depositors from Illegal Withdrawals Made by Forged or Stolen Cards
The Law 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) (Law No. 94 of 2005), which became
effective in February 2006, requires financial institutions to establish internal systems to prevent illegal
withdrawals of deposits made using forged or stolen bank cards. The law 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 grossnegligence on the part of the relevant account holder.
36

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 Corporate Bank’s New Yorkand Chicago branches, Los Angeles agency and Houston and Atlanta representative offices. We also own twobanks in the US, Mizuho Corporate Bank (USA) and Mizuho Corporate Bank of California, as well as
controlling interests in several other subsidiaries, including Mizuho Trust & Banking Co. (USA), which isengaged primarily in the trust and custody business, and Mizuho Securities USA Inc., a U.S. broker dealer
engaged in the securities business.
The USA PATRIOT Act of 2001 (the “PATRIOT Act”) contains measures to prevent, detect and prosecute
terrorism and international money laundering by imposing significant new compliance and due diligenceobligations, creating new crimes and penalties and expanding the extraterritorial jurisdiction of the United States.
Many of the new anti-money laundering compliance requirements are consistent with the anti-money laundering
compliance obligations previously imposed on U.S. financial institutions, including the U.S. offices of foreignbanks, under the Bank Secrecy Act. The passage of the PATRIOT Act and other recent events have resulted inheightened scrutiny of compliance with the Bank Secrecy Act and anti-money laundering rules by federal andstate regulatory and law enforcement authorities.
Mizuho Financial Group and Mizuho Corporate Bank are financial holding companies (“FHCs”), andMizuho 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 ofGovernors of the Federal Reserve System (the “Federal Reserve Board”). Under current Federal Reserve Board
policy, these three companies are expected to act as a source of financial strength to Mizuho Corporate Bank
(USA), Mizuho Corporate Bank of California, 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 ofvoting shares of any company engaged in the United States in activities other than banking or activities that are
financial in nature. This general prohibition is subject to certain exceptions, including an exception that permits
us to acquire up to 100% of the voting interests in any company engaged in nonfinancial activities under ourmerchant banking authority. In addition, U.S. regulatory approval is generally required for us to acquire morethan 5% of any class of voting shares of a U.S. bank or savings association.
Mizuho Financial Group and Mizuho Corporate Bank became FHCs in December 2006. FHC status underthe BHCA permits banking groups in the United States to engage in comprehensive investment banking
businesses, such as the underwriting and dealing of corporate bonds, equities and other types of securities. FHC
status will enable our group to promote our investment banking business on a broader basis in the United States.
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, agency and representative office in the United States of Mizuho Corporate Bankis state-licensed. Under U.S. federal banking laws, state-licensed branches and agencies of foreign banks may
engage only in activities 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 and agencies, which generally are the same as the lending limits applicable to national banks, but are
based on the capital of the entire foreign bank.
Our New York branch is subject to supervision, examination and regulation by the New York State Banking
Department as well as by the Federal Reserve Board. Except for the prohibition on such branch accepting retaildeposits, a state-licensed branch generally has the same powers as a state-chartered bank in such state. New YorkState has an asset pledge requirement for branches equal to 1% of third party liabilities with a cap of $400
million, provided that an institution designated as a “well-rated foreign banking corporation” is permitted tomaintain a reduced asset pledge with a cap of $100 million. The New York State Banking Department may
37require higher amounts for supervisory reasons. Each U.S. branch, agency and representative office of Mizuho
Corporate Bank is subject to regulation and examination by the state banking authority of the state in which it islocated.
The deposits of Mizuho Corporate 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
Corporate Bank (USA) is subject to regulation, supervision and examination by the Federal Reserve Board andthe New York State Banking Department, as well as to relevant FDIC regulation. The deposits of Mizuho
Corporate Bank of California are FDIC-insured, and it is a state-chartered bank that is not a member of theFederal Reserve System. As such, Mizuho Corporate Bank of California is subject to regulation, supervision andexamination by the FDIC and the California Department of Financial Institutions. The deposits of Mizuho
Trust & Banking Co. (USA) are also FDIC-insured, and it is a state-chartered bank and trust company that is nota 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 Banking Department.
In the United States, U.S.-registered broker-dealers are regulated by the Securities and Exchange
Commission. As a U.S.-registered broker-dealer, Mizuho Securities USA Inc. is subject to regulations that cover
all aspects of the securities business, including sales methods, trade practices among broker-dealers, use andsafekeeping of customers’ funds and securities, capital structure, recordkeeping, the financing of customers’purchases and the conduct of directors, officers and employees.
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, 2007:
Mizuho Financial Group, Inc.

Global Corporate Group

Global Retail Group

Mizuho Corporate
Bank, Ltd.

Mizuho Bank, Ltd.

Mizuho Securities
Co., Ltd.

Global Asset and WealthManagement Group
Mizuho Trust & Banking(1)Co., Ltd.
Mizuho Private WealthManagement Co., Ltd.

Mizuho Investors
Securities Co.,
(1)Ltd.
UC Card Co., Ltd.

Trust & Custody
Services Bank, Ltd.
(2)

Other subsidiaries

Mizuho Financial
Strategy Co., Ltd.
Mizuho ResearchInstitute Ltd.
Mizuho Information& Research Institute,Inc.

Three asset management(3)companies

Notes:(1) Mizuho Investors Securities and Mizuho Trust & Banking are listed on the Tokyo Stock Exchange.
(2) UC Card, formerly a consolidated subsidiary of ours, became an equity method affiliate in June 2007.
(3) Three asset management companies consist of Dai-Ichi Kangyo Asset Management, Fuji Investment
Management and DLIBJ Asset Management. DLIBJ Asset Management, in which we have a 50.0% equity
38

interest, is an equity-method affiliate of ours. On July 1, 2007, Dai-Ichi Kangyo Asset Management and Fuji
Investment Management merged to form Mizuho Asset Management.
(4) In addition to the principal subsidiaries shown in the above diagram, as of March 31, 2007 we owned 27.4%of the outstanding shares of Shinko Securities Co., Ltd., an equity-method affiliate of ours listed on theTokyo Stock Exchange which engages in wholesale and retail securities businesses. In March 2007, Mizuho
Securities and Shinko Securities signed a merger agreement pursuant to which a merger of the twocompanies is expected to be consummated in January 2008.
The following table sets forth information with respect to our principal consolidated subsidiaries as ofMarch 31, 2007:

Name

Domestic
Mizuho Bank, Ltd. . . . . . . . . . . . . . . . . . . . . . .
Mizuho Corporate Bank, Ltd. . . . . . . . . . . . . .
Mizuho Securities Co., Ltd. . . . . . . . . . . . . . . .
Mizuho Trust & Banking Co., Ltd.(1) . . . . . . . .
Mizuho Investors Securities Co., Ltd.(1) . . . . .
Trust & Custody Services Bank, Ltd. . . . . . . .
Dai-Ichi Kangyo Asset Management Co.,
Ltd.(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Country oforganization

Japan
Japan
Japan
Japan
Japan
Japan

Banking
Banking
Securities
Trust and banking
Securities
Trust and banking

100.0%
100.0%
81.5%
75.2%
66.5%
54.0%

100.0%
100.0%
81.5%
70.0%
66.8%
54.0%

Japan

Investment
management
Investment
management
Research andconsulting

100.0%

100.0%

94.3%

94.3%

98.4%

98.6%

91.5%

91.5%

Japan

Information
technology
Consulting

100.0%

100.0%

Japan
Japan
Japan
Japan
Japan

Consulting
Factoring
Credit guarantee
Venture capital
Credit card

100.0%
100.0%
100.0%
50.0%
51.0%

100.0%
100.0%
100.0%
50.0%
51.0%

Japan

Pension plan-related
business

60.0%

60.0%

100.0%
100.0%
100.0%

100.0%
100.0%
100.0%

83.3%

83.3%

100.0%
100.0%

100.0%
100.0%

100.0%

100.0%

100.0%

100.0%

100.0%
100.0%
99.0%

100.0%
100.0%
99.0%

Fuji Investment Management Co., Ltd.(2) . . . .

JapanMizuho Research Institute Ltd. . . . . . . . . . . . .

JapanMizuho Information & Research InstituteInc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

JapanMizuho Financial Strategy Co., Ltd. . . . . . . . .
Mizuho Private Wealth Management Co.,
Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Factors, Limited . . . . . . . . . . . . . . . . .
Mizuho Credit Guarantee Co., Ltd. . . . . . . . . .
Mizuho Capital Co., Ltd. . . . . . . . . . . . . . . . . .
UC Card Co., Ltd.(3) . . . . . . . . . . . . . . . . . . . . .
Defined Contribution Plan Services Co.,
Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Main business

Proportion of Proportion ofownershipvotinginterest
interest(%)(%)

Overseas
Mizuho Bank (Switzerland) Ltd. . . . . . . . . . . . Switzerland Trust and banking
Mizuho Capital Markets Corporation . . . . . . .
U.S.A.
Derivatives
Mizuho Corporate Bank (Canada) . . . . . . . . . .
CanadaBankingMizuho Corporate Bank (Germany)
Aktiengesellschaft . . . . . . . . . . . . . . . . . . . . Germany Banking andsecurities
Mizuho Corporate Bank (USA) . . . . . . . . . . . .
U.S.A.
BankingMizuho Corporate Bank Nederland N.V. . . . . Netherlands Banking andsecurities
Mizuho International plc . . . . . . . . . . . . . . . . .
U.K.
Securities andbankingMizuho Securities USA Inc. . . . . . . . . . . . . . .
U.S.A.
Securities
Mizuho Trust & Banking (Luxembourg)
S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Trust and banking
Mizuho Trust & Banking Co. (USA) . . . . . . .
U.S.A.
Trust and banking
PT. Bank Mizuho Indonesia . . . . . . . . . . . . . . Indonesia Banking
39

Notes:(1) Mizuho Investors Securities and Mizuho Trust & Banking are listed on the Tokyo Stock Exchange.
(2) On July 1, 2007, Dai-Ichi Kangyo Asset Management and Fuji Investment Management merged to form
Mizuho Asset Management.
(3) UC Card, formerly a consolidated subsidiary of ours, became an equity method affiliate in June 2007.
4.D. Property, Plant and Equipment
The following table shows the breakdown of our premises and equipment at cost as of March 31, 2006 and2007:
At March 31,
2006
2007
(in millions of yen)

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 167,002 ¥ 164,247
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
565,459
605,680
Equipment and furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
190,113
197,489
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
125,046
125,754
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27,605
3,010
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
463,415
524,463
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,538,640
698,746

1,620,643
773,120

Premises and equipment–net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 839,894¥ 847,523

Our head office is located at 5-5, Otemachi 1-chome, Chiyoda-ku, Tokyo, Japan and has 11,126 square
meters of office space. The headquarter buildings of Mizuho Financial Group, Mizuho Corporate Bank andMizuho Bank are each leased from third parties.
As our lease for the headquarter building of Mizuho Financial Group will expire in February 2009, we are
currently planning to enter into a lease with a third party and move to a new headquarter building prior to such
expiration.
The total area of land related to our material office and other properties at March 31, 2007 wasapproximately 803,000 m2 for owned land and approximately 23,000 m2 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
Not applicable.

40

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41
52
54
69
78
80
89
90
97
99
99
100

Overview
The Mizuho GroupWe provide a broad range of financial services in domestic and overseas markets through three Global
Groups: the Global Corporate Group; the Global Retail Group; and the Global Asset & Wealth Management
Group. The principal activities and subsidiaries of the three Global Groups are the following:•

The Global Corporate Group provides wholesale and international banking and securities services,principally through Mizuho Corporate Bank and Mizuho Securities;•

The Global Retail Group provides retail and SME and middle-market corporation banking and securities
services, principally through Mizuho Bank and Mizuho Investors Securities; and•The Global Asset & Wealth Management Group provides trust and asset management services,principally through Mizuho Trust & Banking, Trust & Custody Services Bank and our two asset
management companies, namely Mizuho Asset Management and DLIBJ Asset Management (an equitymethod affiliate of ours).

We also provide other services such as research services through Mizuho Research Institute, information
technology-related services through Mizuho Information & Research Institute, and advisory services for financial
institutions through Mizuho Financial Strategy.
For a further discussion of our business and group organization, see Item 4B “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;41•

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 debentures.
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 “Item 5. Operating and
Financial Review and Prospects—Financial Condition—Loans—Allowance for loan losses.”Noninterest Income
Noninterest income consists mainly of fees and commissions, investment gains (losses)–net, trading accountgains–net and foreign exchange gains (losses)–net.
Fees and commissions include the following:•

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;•

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

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 credit card
processing fees earned by UC Card and administration fees related to Japan’s principal public lottery
program, as well as guarantee fees and others. The credit card processing fees earned by UC Card will
no longer be included in fees and commissions beginning the fiscal year ending March 31, 2008 due to
UC Card becoming an equity-method affiliate as a result of a consolidation and reorganization of ourcredit card operations.

Investment gains (losses)–net include primarily net gains on sales of marketable securities, such as equity
and bond investments. In addition, impairment losses are recognized when management concludes that declines
in fair value of investments are other than temporary.
Trading account gains–net include gains and losses from transactions undertaken for trading purposes,
including both market making for customers and proprietary trading, or transactions through which we seek tocapture gains arising from short-term changes in market value. Trading account gains–net also include gains andlosses 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 our various assets andliabilities.
42

Foreign exchange gains (losses)–net include mainly 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. Included within the translation gains and losses
are those related to a portion of our foreign currency denominated liabilities, the amount of which generally
corresponds to the amount of foreign currency-denominated available-for-sale securities, that hedge foreignexchange risk in accordance with our foreign exchange risk management policies but which are not eligible forhedge accounting under U.S. GAAP. Translation gains (losses) related to such available-for-sale securities arerecognized directly in foreign currency translation adjustments, a component of accumulated othercomprehensive income, net of tax within shareholders’ equity.
Noninterest Expenses
Noninterest expenses include primarily salaries and employee benefits, general and administrative expenses,
occupancy expenses, fees and commission expenses and minority interest in consolidated subsidiaries.
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 include mainly commission expenses paid in connection with remittance transactions
and securities-related businesses, which include mainly transactions costs such as brokerage fees paid.

43

Operating Environment
We operate principally in Japan. After years of persistent weakness, the Japanese economy has gradually
improved over the past several years. Key indicators of economic conditions in recent periods include thefollowing:•

Japan’s real gross domestic product continued to increase by 1.1%, 2.1%, 2.0%, 2.4% and 2.1% (basedon the second preliminary estimate announced by the Japanese government on June 11, 2007) in thefiscal years ended March 31, 2003, 2004, 2005, 2006 and 2007, respectively. Japan’s core nationwide
consumer price index decreased by 0.8%, 0.2% and 0.2% in the fiscal years ended March 31, 2003,
2004 and 2005, respectively, and increased 0.1% each in the fiscal year ended March 31, 2006 and2007. The following chart shows the growth rates of Japan’s gross domestic product and Japan’s core
nationwide consumer price indices from the first quarter of 2002 through the fourth quarter of 2006:

(%)

(%)

GDP and Consumer Price Index

5.0

0.4

4.0

0.2

3.0

0.0

2.0
-0.2
1.0
-0.4
0.0
-0.6

-1.0

GDP growth rate (left)-2.0Core consumer price index growth rate (right)

-3.0

-0.8
-1.0

1Q

2Q

3Q

4Q

Calendar 2002

1Q

2Q

3Q

4Q

Calendar 2003

1Q

2Q

3Q

4Q

Calendar 2004

44

1Q

2Q

3Q

4Q

Calendar 2005

1Q

2Q

3Q

4Q

Calendar 2006

•The Bank of Japan, following its announcement on March 9, 2006 to end its “quantitative easing”
monetary policy that it had maintained since March 2001, announced on July 14, 2006 and on February 21,
2007 that it raised its target for the uncollateralized overnight call rate from 0% to 0.25% and from 0.25%
to 0.5%, respectively. The following charts show movements in long-term rates from January 2004
through July 2007, represented by the yield on newly issued 10-year Japanese government bonds, and in
short-term interest rates from January 2004 through May 2007, 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%
2.5

Newly issued 10-year Japanese government bonds
2.0

1.5

1.0

0.5

0.0
Jan '04 Apr '04

Jul '04

Oct '04

Jan '05 Apr '05

Jul '05

Oct '05

Jan '06 Apr '06

Jul '06

Oct '06

Jan '07 Apr '07 Jul '07

Short-term Interest Rates
0.80
0.75
0.70
0.65
0.60
0.55
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10

Three-month TIBOR

0.05
Uncollateralized overnight call rate

0.00
-0.05
Jan '04

Apr '04

Jul '04

Oct '04

Jan '05

Apr '05

Jul '05

Oct '05

45

Jan '06

Apr '06

Jul '06

Oct '06

Jan '07

Apr '07•

According to the Bank of Japan, after a prolonged period of generally declining demand for bank loans
in Japan, the aggregate monthly average balance of bank loans compared with that of the previous year
has continued to increase since August 2005.

•

According to Teikoku Databank, a Japanese research institution, there were approximately 5,900
corporate bankruptcies in Japan in the fiscal year ended March 31, 2005, involving approximately ¥5.8
trillion in total liabilities, approximately 8,800 corporate bankruptcies in Japan in the fiscal year ended
March 31, 2006, involving approximately ¥5.7 trillion in total liabilities, and approximately 9,600
bankruptcies involving approximately ¥5.3 trillion in total liabilities in the fiscal year ended March 31,
2007.

•

According to the Tokyo Stock Exchange, or the TSE, the aggregate ordinary profits and net income of
all companies listed on the TSE, excluding financial institutions and companies newly listed during therelevant fiscal year, increased from ¥27.2 trillion and ¥13.1 trillion, respectively, for the fiscal year
ended March 31, 2005 to ¥30.1 trillion and ¥16.7 trillion, respectively, for the fiscal year ended
March 31, 2006 and ¥33.7 trillion and ¥19.4 trillion, respectively, for the fiscal year ended March 31,
2007.

•

According to the Bank of Japan, total financial assets of households increased from ¥1,429.5 trillion asof March 31, 2005 to ¥1,520.5 trillion as of March 31, 2006 and ¥1,536.2 trillion as of March 31, 2007,
with most of the growth being in investments in stocks and investment trusts. The following chart shows
the amount of total financial assets of households and breakdown based on type of financial asset as ofthe ends of the first quarter of 2003 through the first quarter of 2007:

Financial Assets of Households(Trillions of yen)
1,600

1,400

69

69

71

71

70

71

71

72

1,200

377

376

377

378

378

380

381

381

64

383

65

384

72
800

28

35

100

30

32

33

32

101

116

119

113

32

34

35

35

32

32

33

34

132

130

151

36

38

41

45

37

39

69

69

388

392

394

397

73

65

399

402
Others

385

116
36

67

67

1,000

86

72

40

191

196

179

178

51

55

56

60

41

40

41

42

Insurance andpension reserves

183

187

65

68

43

43

Shares and other
equity investments

Investment trust
beneficiary
certificates600

Bonds (excluding
investment trusts)
400

775

783

777

788

780

786

777

788

775

780

773

783

770

774

767

779

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

770

200

0
Calendar 2003

Calendar 2004

Calendar 2005

46

Calendar 2006

1Q
Calendar2007

Currency andDeposits•

The Nikkei Stock Average, which is an average of the price of 225 stocks listed on the Tokyo Stock
Exchange, decreased by 0.4% to ¥11,668.95 during the fiscal year ended March 31, 2005, followed by a
46.2% increase to ¥17,059.66 during the fiscal year ended March 31, 2006 and a 1.3% increase to¥17,287.65 during the fiscal year ended March 31, 2007. The following chart shows the daily closing
price of the Nikkei Stock Average from January 2004 through July 2007:(Yen)

Nikkei Stock Average

20,00018,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
Jan '04 Apr '04 Jul '04•

Oct '04 Jan '05 Apr '05 Jul '05

Oct '05 Jan '06 Apr '06 Jul '06

Oct '06 Jan '07 Apr '07 Jul '07

The Japanese yen to U.S. dollar spot exchange rate, according to the Bank of Japan, was ¥106.97 to$1.00 as of March 31, 2005, ¥117.47 to $1.00 as of March 31, 2006 and ¥118.05 to $1.00 as ofMarch 31, 2007. The following chart shows the yen/dollar spot rate of 5 p.m. Tokyo time published by
the Bank of Japan from January 2004 through June 2007:

Yen/Dollar Spot Rate
(Yen per dollar)
125
120
115
110
105
100
95
90
Jan '04 Apr '04 Jul '04 Oct '04 Jan '05 Apr '05 Jul '05 Oct '05 Jan '06 Apr '06 Jul '06 Oct '06 Jan '07 Apr '07

47

•

According to the Ministry of Land, Infrastructure and Transport of Japan housing starts in Japan
increased consecutively by 2.5% in the fiscal year ended March 31, 2004, 1.7% in the fiscal year ended
March 31, 2005, 4.7% in the fiscal year ended March 31, 2006 and 2.9% in the fiscal year ended
March 31, 2007.

•

According to the Ministry of Land, Infrastructure and Transport, the average published land prices inJapan rose 0.1% during calendar year 2006, the first increase in 16 years.

Capital Improvements
In recent years, we pursued, and intend to continue to pursue, consistent and disciplined capital managementthat balances our capital needs related to the enhancement of our overall profitability with the improvement of
capital quality through the following measures:
Repayment of public funds
We received an aggregate of ¥2,949.0 billion in public funds in March 1998 and March 1999, including¥1,949.0 billion in return for the issuance of preferred stock and ¥1,000.0 billion in return for the issuance ofsubordinated bonds. Thereafter, we strived to make early repayment of the public funds while reinforcing ourcapital base, and in July 2006 we repurchased the remaining preferred stock with an aggregate original issue
price of ¥600.0 billion for ¥603.5 billion, including accrued dividends, and cancelled such preferred stock on thesame day, thereby completing the repayment of all public funds.
Capital raising
In January 2007, we issued ¥400.0 billion of non-dilutive preferred securities through a Cayman Islands
special purpose company to enhance the Tier 1 capital of Mizuho Financial Group as well as Mizuho Corporate
Bank and Mizuho Bank and improve the flexibility of our future capital strategy.
In June 2007, we redeemed ¥185.5 billion of non-dilutive preferred securities that were issued by ouroffshore special purpose companies in February 2002.
Repurchase and cancellation of treasury stock held by our subsidiary
In July 2006, we repurchased and cancelled 131,800 shares of our common stock held by our wholly-owned
subsidiary, Mizuho Financial Strategy.
In addition, in May 2007, we repurchased and cancelled the remaining 261,040 shares of common stock
held by Mizuho Financial Strategy.
Repurchase and cancellation of own shares
In May 2007, we announced a plan to repurchase our common stock, up to an aggregate number of 250,000
shares and up to an aggregate amount of ¥150.0 billion, for the purpose of offsetting the potential dilutive effectof the conversion of our Eleventh Series Class XI preferred stock issued to the private sector after thecommencement of the conversion period on July 1, 2008. We plan to repurchase our common stock during theperiod from June 1 to November 30, 2007, and we plan to cancel all of the common stock repurchased.

48

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 continued to increase on a year-on-year basis in the fiscal year ended March 31, 2007
supported by loan demand from individuals, and while loan demand from corporations leveled out, foreign loans
showed a steady increase due to strong loan demand among our foreign corporate customers. We believe loan
growth in the domestic market will depend mainly on loan demand from individuals, and we expect loan demand
from corporations, especially large corporations, will continue to be weak due to lack of bank loan needs bycorporate borrowers. We also aim to continue increasing our foreign loans by responding primarily to loan
demand from our corporate customers.
Margins between Loans and Deposits
The Bank of Japan, following its announcement on March 9, 2006 to end its “quantitative easing” monetary
policy that it had maintained since March 2001, announced on July 14, 2006 and on February 21, 2007 that itraised its target for the uncollateralized overnight call rate from 0% to 0.25% and from 0.25% to 0.5%,
respectively. Reflecting these raises, the average yield on domestic loans increased from 1.43% in the fiscal year
ended March 31, 2006 to 1.54% in the fiscal year ended March 31, 2007, and the average rate on domestic
interest-bearing deposits increased from 0.20% to 0.38%.
The applicable spreads on domestic loans, or the difference between the applicable interest rate on the loan
and its relevant reference rate such as TIBOR, narrowed in the fiscal year ended March 31, 2007 due mainly tothe effect of the time lag between increases in market interest rates and the application of a higher interest rates at
the repricing of the loan, as well as intense competition among banks as they endeavored to increase theirbalances of loans, which was caused by subdued loan demand in the domestic corporate loan market andexacerbated by how the total balance of bank deposits and debentures significantly exceed the total balance ofbank loans in Japan.
The difference between market interest rates and interest rates applicable to domestic interest-bearing
deposits widened in the fiscal year ended March 31, 2007 due mainly to the general insensitivity of yen demand
deposits to changes in market interest rate levels and the time lag between increases of market interest rates andthe application of higher interest rates at the repricing of time deposits.
Although the increase of 0.11% in average yield on domestic loans in the fiscal year ended March 31, 2007
compared to the previous fiscal year was smaller than the increase of 0.18% in the average rate on domestic
interest-bearing deposits over the same period, after taking into account the effects of domestic
non-interest-bearing deposits and domestic debentures and excluding the effects of non-yen-denominateddomestic interest-bearing deposits and non-yen-denominated domestic loans, the increase in the average yield on
yen-denominated domestic loans in the fiscal year ended March 31, 2007 compared to the previous fiscal year
slightly exceeded the increase in the average rate on yen-denominated domestic deposits and debentures over thesame period, thus showing a widening of the difference between such average yield and average rate. On thesame basis, in the fiscal year ended March 31, 2006, the decrease in the average yield on yen-denominateddomestic loans compared to the previous fiscal year was larger than the decrease in the average rate on
yen-denominated domestic deposits and debentures over the same period, thus showing a narrowing of thedifference between such average yield and average rate.

49

While we believe the foregoing trends that apply negative competitive pressure on our loan spreads will
generally continue for the near to medium term, we believe the foregoing trends that widen the difference
between market interest rates and rates on yen deposits will generally continue to the extent market interest ratelevels continue to increase.
Provision (credit) for loan losses
Total impaired loans as of March 31, 2007 were ¥1,528.9 billion, or 2.2% of total loans, compared to¥1,229.4 billion, or 1.8% of total loans, as of March 31, 2006. The increase in impaired loans was due mainly tothe downgrade in credit rating of a large non-bank financial company customer and another large borrower andits subsidiaries offset in part by improvements in the credit quality of our previously troubled borrowers andgeneral improvements in the Japanese economy, which led to a provision for loan losses of ¥182.1 billion in thefiscal year ended March 31, 2007 compared to a credit of ¥157.7 billion in the previous fiscal year. As of
March 31, 2007, our percentage of allowance for loan losses on impaired loans against the balance of impairedloans requiring an allowance increased to 42.9% compared with 32.3% as of March 31, 2006. The amount ofprovision 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 the domestic and global economic environment and other factors, and changes
in the value of collateral on our loans as well as the effectiveness of our credit screening policy and credit
management.
Fees and Commissions
Fees and commissions decreased by ¥5.7 billion, or 0.8%, from the end of the previous fiscal year to ¥683.0
billion as of March 31, 2007. Primary drivers for the decrease in fees and commissions were the following:•

fees and commissions from securities-related business: stock brokerage fees and underwriting
commissions related to private offerings of debt securities; and•trust fees: fees related to fiduciary asset management and administration service for corporate pension
plan.

Components within fees and commissions that increased, which partially offset the decreasing components,
were fees and commissions from other customer services, including trust business-related fees other than trust
fees, fees from agency businesses such as credit card processing fees earned by UC Card and commissions suchas sales agency fees related to insurance products.
The above decreases were due primarily to the decline of our businesses with corporate customers in theareas of “solutions business” and the fees and commissions recorded in the fiscal year ended March 31, 2006 due
to a one-time sale of loan assets related to loan trusts in connection with our cessation of sales activities for loan
trust products. We use the term “solutions business” to mean our provision to corporate customers of syndicatedloans and other forms of financing arrangements such as issuance of debt securities, securitization and advisory
services. Fees and commissions from retail customers increased due to growth in sales commissions related toinvestment products such as investment trusts and individual annuities. In recent years, Japanese individuals havegenerally been increasing the proportion of investments other than deposits within their total financial assets. If
we are successful in our efforts to take advantage of this increasing demand, we believe we will be able toincrease our fees and commissions income in the future.
Debt and Equity Securities Portfolio
The amount of our funding through deposits and debentures significantly exceeds our total loans. As aresult, we allocate a significant portion of such excess among investments in debt securities, including Japanese
government bonds and credit and alternative investments, which we promote to diversify our risks and to expand
our income sources and we also hold investments in equity securities consisting mainly of common stock ofJapanese listed company customers.
50Increases in long-term interest rates generally lead to a decline in the fair value of our portfolio of debt
securities, approximately half of which is Japanese government bonds. As of March 31, 2007, we had a total of¥29,606.7 billion of available-for-sale debt securities within our investments, of which ¥14,516.0 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 shareholders’ equity or, in the case of other-thantemporary impairments to fair value, charged to income as an impairment loss. We have been endeavoring inrecent years to reduce the risk of declines in the value of our portfolio of Japanese government bonds. We had¥179.6 billion and ¥121.6 billion of investment losses related to bonds in the fiscal years ended March 31, 2006
and 2007, respectively. These losses were due mainly to the realization of unrealized losses and the impairment
losses recorded in the fiscal year ended March 31, 2006 related to the sales of bonds in connection with therestructuring of our bond portfolio and impairment losses on bonds recorded in the fiscal year ended March 31,
2007. We had ¥30,124.2 billion and ¥29,606.7 billion of available-for-sale debt securities as of March 31, 2006
and 2007, respectively, and unrealized losses of ¥196.1 billion and unrealized gains of ¥139.6 billion werereflected in accumulated other comprehensive income, net of tax as of such dates, respectively.
The fair value of available-for-sale marketable equity securities within our investments was ¥6,264.0 billion,or ¥2,591.1 billion based on cost, as of March 31, 2007. 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 andlosses related to changes in the fair value of available-for-sale marketable equity securities are reflected inaccumulated other comprehensive income, net of tax in shareholders’ equity or, in the case of other-thantemporary impairments to fair value, charged to income as an impairment loss. We expect the size of ourportfolio of marketable equity securities to continue to be significant. Because the fair values of debt securities
and equity securities generally have a tendency to fluctuate in opposing directions based on changes in theeconomic environment and interest rate levels, we believe that holding them together has the effect of offsettinginterest rate and equity market risk to some degree.
Costs and Expenses
We have been endeavoring to reduce our salaries and employee benefits expenses, general andadministrative expenses and occupancy expenses in line with various management reform programs. Salaries andemployee benefits expenses and occupancy expenses declined by ¥24.2 billion in aggregate, while general andadministrative expenses increased by ¥25.3 billion in the fiscal year ended March 31, 2007 compared to theprevious fiscal year. Although we plan to continue our efforts to enhance our cost efficiency, we expect that any
resulting cost reduction will be more than offset by increased costs related to the implementation of initiatives toincrease profitability, such as further enhancements to our infrastructure to promote our consulting activities withindividuals and expansion of our international office network.
Other Business Events
Financial support for Orient Corporation
As a result of legal and regulatory changes, including amendments to Japan’s Law Concerning theRegulation of Acceptance of Contributions, Money Deposits and Interest, which will reduce the maximum
interest rates that can be charged by non-bank financial companies, the financial condition and results ofoperations of many non-bank financial companies, including our customer Orient Corporation, have deteriorated
significantly. Orient Corporation announced in March 2007 a plan to reinforce its capital base in connection withwhich it requested certain financial support from several financial institutions and other investors, including
Mizuho Corporate Bank and Mizuho Bank. In response to this request, Mizuho Corporate Bank and Mizuho
Bank agreed on March 28, 2007 to the following:•a debt-for-equity swap by Mizuho Corporate Bank that exchanges a portion (¥140.0 billion) of its loans
outstanding to Orient Corporation for ¥140.0 billion in convertible preferred stock of Orient
Corporation; and51

•a one-for-ten reverse stock split of all ¥320.0 billion in convertible preferred stock of Orient Corporation
then held by Mizuho Corporate Bank and Mizuho Bank, resulting in a waiver of rights with respect to¥288.0 billion of such preferred stock.

In addition, in May 2007, Mizuho Corporate Bank and Mizuho Bank purchased ¥45.0 billion in shares of a
new class of convertible preferred stock issued by Orient Corporation in connection with a third-party shareallotment in which four other investors also participated. The aggregate amount of convertible preferred stock
sold by Orient Corporation in such allotment was ¥150.0 billion.
Critical Accounting Estimates
Note 1 to our consolidated financial statements contains a summary of our significant accounting policies.
These accounting policies are essential to understanding our financial condition and results of operations. Certainof these accounting policies require management to make critical accounting estimates that involve complex andsubjective 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 thedate of the financial statements and could change from period to period. 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 andresults of operations. The following is a discussion of significant accounting policies for which criticalaccounting 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 SFAS No.114. In accordance with SFAS No.114, “Accounting by Creditors for
Impairment of a Loan” (“SFAS No.114”), we measure the value of specifically identified impairedloans based on the expected cash flows discounted at the loans’ initial effective interest rates, or as apractical expedient, using the observable market prices or the fair value of collateral if the loan iscollateral dependent, when it is probable that we will be unable to collect all amounts due according to
the contractual terms of the loan agreement. 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 of the impaired loan and its principal amount is the amount of theimpairment which is recorded in the allowance for loan losses. Estimation of future cash flows is basedon a comprehensive analysis of the borrower’s ability to service the debt, any progress made on the
borrower’s rehabilitation program and the assumptions used therein.

•

Allowance based on SFAS No.5. In accordance with SFAS No.5, “Accounting for Contingencies”(“SFAS No.5”), a formula-based allowance utilizing historical loss factors is applied to certain impairedloans which are aggregated for purposes of measuring impairment, groups of small balance,
homogeneous loans and other non-homogenous 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 ona periodic basis by comparing the allowance with the actual results subsequent to the balance sheet date.

•

Adjustment of SFAS No.5 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 not52deemed to be impaired under SFAS No.114 but to which special isolated risks apply, management
assesses each loan individually to determine appropriate allowance amounts in lieu of mechanically
applying the SFAS No.5 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 differ 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
We hold various debt and equity securities and derivatives in our trading account. We also hold various
available-for-sale securities and other investments in our investments account. We generally value all suchinvestments and derivatives based on their fair value. For investments and derivatives for which an active market,
including dealers’ quotes, exists, we determine fair value based on their market price. Dealers’ quotes are used
for determining fair value only if the financial instrument is not listed on any exchange or otherwise does nothave an exchange quotation and an active dealers’ market exists for the instrument. However, if no such market
exists, fair value is determined as follows:•with respect to certain debt securities (which comprise approximately 8.3% and 12.6% of total trading
securities and investments carried at fair value as of March 31, 2006 and 2007, respectively), we
estimate fair value based on the market value of similar securities with an active market, taking into
consideration the time to maturity and the credit rating of the issuer;•

with respect to certain derivatives (which comprise approximately 99.3% and 99.6% of total derivative
assets and 99.1% and 99.2% of total derivative liabilities as of March 31, 2006 and 2007, respectively), we
estimate fair value by assessing future cash flows and discounting such cash flows based on appropriate
market interest rates. Such estimation involves the application of forward curves and valuation models tomarket-based parameters, with adjustments made as necessary based on credit risk and liquidity risk.
Furthermore, in the limited cases where the valuation cannot be made based on market-based parameters(which comprise approximately 0.2% and 0.1% of derivative assets as of March 31, 2006 and 2007,
respectively), management makes its best estimate of the fair value. In such cases, profits related to thetransaction are deferred and amortized over the term of the derivative contract; and•with respect to certain non-marketable equity securities (which comprise approximately 0.2% and 0.2%
of total trading securities and investments carried at fair value as of March 31, 2006 and 2007,
respectively), we estimate fair value by various modeling techniques, referring to the price or net assets
of benchmark securities or employing EBITDA multiple analysis as management deems appropriate
based on the circumstances and market participants’ practice.

The above determinations involve subjective judgments with respect to the method of valuation used and theparameters used in the valuation. If these subjective judgments prove to be inaccurate, our financial condition
and results of operations could be materially and adversely affected.
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, and53

(2) operating loss and tax credit carryforwards. Pursuant to SFAS No.109, “Accounting for Income Taxes,” asamended (“SFAS No.109”), a valuation allowance is recognized for any portion of the deferred tax assets where
it is considered more likely than not that 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 SFAS No.109. 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 such determination is made, and this could materially andadversely 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
and pension plans, which provide defined benefits to retired employees. Periodic expense and accrued liabilities
are computed based on a number of actuarial assumptions, including mortality, withdrawals, discount rates,
expected long-term rates of return on our plan assets and rates of increase in future compensation levels.
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 governmental andcorporate bonds that received a rating of AA or higher from rating agencies. The durations of such bonds closely
match that of the pension benefit obligation. Assumed discount rates were reevaluated at each measurement date.
The expected rate of return for each asset class 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 benefits, see note 21 to the consolidated financial statements
included elsewhere in this annual report.
Operating Results
The following table shows certain information as to our income, expenses and net income for the fiscal
years ended March 31, 2005, 2006 and 2007:
2005

Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income after provision (credit) for loan losses . . . . . . . . .
Noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . .
Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54

Fiscal years ended March 31,
2006
2007
(in billions of yen)

¥1,615.4
578.6
1,036.8
55.0
981.8
1,599.7
1,379.0
1,202.5
124.4¥1,078.1¥1,957.9
944.9
1,013.0(157.7)
1,170.7995.1
1,454.3
711.5(374.2)¥1,085.7¥2,639.3
1,571.4
1,067.9
182.1
885.8
1,195.9
1,294.6
787.1
163.2¥ 623.9

Executive Summary
Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006
Net interest income increased by ¥54.9 billion, or 5.4%, from the previous fiscal year to ¥1,067.9 billion in
the fiscal year ended March 31, 2007 due to the increase in net domestic interest and dividend income of ¥7.2
billion and the increase in net foreign interest and dividend income of ¥47.7 billion. The increase in net domestic
interest and dividend income was due mainly to an increase in interest and dividend income on loans andinvestments, reflecting a rise in the average loan yield as a result of rising yen interest rate levels, offset in partby an increase in domestic interest expense, such as interest expense on deposits, reflecting an increase in yen
interest rate levels. The increase in net foreign interest and dividend income was due mainly to the effects of anincrease in the average balance of foreign investments and loans as a result of our efforts to increase such assets
which more than offset the effects of increases in average interest rates on foreign short-term borrowings andforeign deposits, reflecting a general increase in U.S. dollar and euro interest rate levels, and the increase in theiraverage balances as we sought to increase funding from these sources for our investments in foreign securities
and loans. We had a provision for loan losses of ¥182.1 billion compared to a credit of ¥157.7 billion in theprevious fiscal year due to a significant provision for loan losses with respect to loans to a large non-bankfinancial company and another large borrower and its subsidiaries, offset in part by the effect of the
improvements in the credit quality of our previously troubled borrowers and general improvements in theJapanese economy.
Noninterest income increased by ¥200.8 billion, or 20.2%, from the previous fiscal year to ¥1,195.9 billion
in the fiscal year ended March 31, 2007 due mainly to an increase in trading account gains–net and othernoninterest income offset in part by an incurrence of investment losses–net. The increase in trading accountgains–net was due mainly to the gain related to changes in the fair value of derivatives and other financial
instruments used for hedging purpose that were not eligible for hedge accounting under U.S. GAAP. The
increase in other noninterest income was due mainly to the subsidy received from the Japanese government inconnection with the completion of the transfer of the obligations and assets relating to the substitutional portionof the employees’ pension funds to the government. These increases were offset in part by investment losses–net
due mainly to impairment losses on equity securities, relating primarily to preferred stock issued by a large
non-bank financial company.
Noninterest expenses decreased by ¥159.7 billion, or 11.0%, from the previous fiscal year to ¥1,294.6
billion in the fiscal year ended March 31, 2007 due mainly to a credit for losses on off-balance-sheet instruments
compared to a provision in the previous fiscal year, reflecting the sale of commitment lines for certain large
obligors, and a decrease in other noninterest expenses, reflecting mainly the losses recorded in the fiscal year
ended March 31, 2006 due to the erroneous order to the Tokyo Stock Exchange by Mizuho Securities.
As a result of the foregoing, income before income tax expense (benefit) increased by ¥75.6 billion to¥787.1 billion. We recorded an income tax expense of ¥163.2 billion in the fiscal year ended March 31, 2007,
compared to an income tax benefit of ¥374.2 billion in the previous fiscal year due mainly to the deferred income
tax expense of ¥112.9 billion compared to a benefit of ¥444.6 billion. The deferred income tax expense was dueto the decrease in deferred tax assets, net of valuation allowance, as a result of the decrease in valuation
allowance being smaller than the decrease in gross deferred tax assets resulting from of the utilization of net
operating loss carryforwards. As a result, net income in the fiscal year ended March 31, 2007 was ¥623.9 billion,a decrease of ¥461.8 billion from the previous fiscal year.
Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
Net interest income decreased by ¥23.8 billion, or 2.3%, from the previous fiscal year to ¥1,013.0 billion in
the fiscal year ended March 31, 2006 due to the decrease in net domestic interest and dividend income of ¥103.5
billion offset in part by the increase in net foreign interest and dividend income of ¥79.7 billion. The decrease in
net domestic interest and dividend income was due mainly to a decrease in interest income on loans, reflecting a55

decrease in average loan balance and a decrease in loan spreads as a result of increased competition in thedomestic loan market, and an increase in domestic interest expense, reflecting an increase in yen interest ratelevels. The increase in net foreign interest and dividend income was due mainly to the effects of an increase in
the average balance of foreign investments and loans as a result of our efforts to increase such assets and theeffect of the depreciation of the yen against other major currencies offset in part by the effects of increased
competition regarding loans to foreign affiliates of Japanese corporations. We had a reversal of provision for loan
losses, or a credit, of ¥157.7 billion compared to a provision of ¥55.0 billion in the previous fiscal year due toimprovements in the quality of our loan portfolio.
Noninterest income decreased by ¥604.6 billion, or 37.8%, from the previous fiscal year to ¥995.1 billion in
the fiscal year ended March 31, 2006 due mainly to declines in investment gains–net, trading account gains–net
and foreign exchange gains (losses)–net. The decline in investment gains–net was due mainly to the recognitionof losses on sales related to our bond portfolio. The decline in foreign exchange gains (losses)–net was due
mainly to translation losses with respect to foreign currency-denominated liabilities that were incurred to offset
foreign exchange risk related to foreign currency-denominated available-for-sale securities. The decline intrading account gains–net was due mainly to losses related to changes in the fair value of derivatives and otherfinancial instruments used for hedging purpose that were not eligible for hedge accounting under U.S. GAAP.
These effects were offset in part by an increase in fees and commissions income.
Noninterest expenses increased by ¥75.3 billion, or 5.5%, from the previous fiscal year to ¥1,454.3 billion in
the fiscal year ended March 31, 2006 due mainly to an increase in provision for losses on off-balance-sheet
instruments, reflecting downgrades in credit ratings of certain commitment line customers, and other noninterest
expenses, reflecting mainly the losses incurred due to the erroneous order to the Tokyo Stock Exchange by
Mizuho Securities.
As a result of the foregoing, income before income tax expense (benefit) decreased by ¥491.0 billion to¥711.5 billion. We recorded an income tax benefit of ¥374.2 billion, compared with an income tax expense of¥124.4 billion in the previous fiscal year due mainly to the decrease of deferred income tax expense, resulting in
net income in the fiscal year ended March 31, 2006 of ¥1,085.7 billion, an increase of ¥7.6 billion, or 0.7%, fromthe previous fiscal year.

56

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,
2005, 2006 and 2007:
Fiscal years ended March 31,
Averagebalance2005
2006
Interest Interest Average
Interest Interest Averageamountratebalanceamountratebalance(in billions of yen, except percentages)

Domestic:
Interest-bearing deposits inother banks . . . . . . . . . . . . ¥ 1,185.7 ¥ 16.8
Call loans and funds sold,
and receivables underresale agreements andsecurities borrowing
transactions . . . . . . . . . . . .
8,270.8
4.4
Trading account assets . . . . .
6,470.2
28.3
Investments . . . . . . . . . . . . .
27,369.5
116.2
Loans . . . . . . . . . . . . . . . . . .
60,500.8
935.9
Total interest-earning
assets . . . . . . . . . . . . . . 103.797.0 1,101.6
Deposits . . . . . . . . . . . . . . . .
67,999.1
73.6
Debentures . . . . . . . . . . . . . .
8,580.0
68.7
19,536.0
23.6
Short-term borrowings(1) . . .
Trading account liabilities . .
4,091.0
32.3
Long-term debt . . . . . . . . . . .
5,945.7
124.2
Total interest-bearing
liabilities . . . . . . . . . . . . 106,151.8
322.4
Net . . . . . . . . . . . . . .
(2,354.8) 779.2
Foreign:Interest-bearing deposits inother banks . . . . . . . . . . . .
562.2
13.2
Call loans and funds sold,
and receivables underresale agreements andsecurities borrowing
transactions . . . . . . . . . . . .
5,873.2
113.1
Trading account assets . . . . .
3,981.7
45.1
Investments . . . . . . . . . . . . .
4,653.6
167.4
Loans . . . . . . . . . . . . . . . . . .
5,759.5
175.0
Total interest-earning
assets . . . . . . . . . . . . . .
20,830.2
513.8
Deposits . . . . . . . . . . . . . . . .
2,988.8
58.0
8,385.7
158.9
Short-term borrowings(1) . . .
Trading account liabilities . .
3,110.6
22.4
Long-term debt . . . . . . . . . . .
818.9
16.9
Total interest-bearing
liabilities . . . . . . . . . . . .
15,304.0
256.2
Net . . . . . . . . . . . . . .
5,526.2
257.6
Total:
Total interest-earning
assets . . . . . . . . . . . . . . . . 124,627.2 1,615.4
Total interest-bearing
liabilities . . . . . . . . . . . . . . 121,455.8
578.6
Net . . . . . . . . . . . . . . ¥ 3,171.4 ¥1,036.8

1.41% ¥

876.7 ¥

25.3

2.88% ¥

2007
Interest Interest
amountrate

585.7 ¥

29.7

5.08%

0.05
0.44
0.42
1.55

7,695.1
7,832.030,404.6
58,348.1

5.1
20.5
155.3
836.5

0.07
0.26
0.51
1.43

7,965.5
6,695.1
28,106.5
58,401.0

25.4
19.9
234.1
899.1

0.32
0.30
0.83
1.54

1.06
0.11
0.80
0.12
0.79
2.09

105,156.5
60,742.0
7,256.5
21,047.8
5,145.9
6,430.6

1,042.7
121.6
48.2
37.4
33.7
126.1

0.99
0.20
0.66
0.18
0.66
1.96

101,753.8
62,072.8
5,629.2
19,220.3
4,658.2
5,796.7

1,208.2
234.5
34.1
81.7
13.7
161.3

1.19
0.38
0.61
0.43
0.29
2.78

0.30
0.76

100,622.8
4,533.7

367.0
675.7

0.36
0.63

97,377.2
4,376.6

525.3
682.9

0.54
0.65

2.36

623.8

25.8

4.13

1,231.1

46.9

3.81

1.93
1.13
3.60
3.04

7,284.5
3,906.5
7,567.0
7,269.2

262.2
40.8
295.1
291.3

3.60
1.04
3.90
4.01

9,574.9
3,865.7
8,882.6
9,641.9

477.8
49.6
378.8
478.0

4.99
1.28
4.26
4.96

2.47
1.94
1.90
0.72
2.06

26,651.0
5,490.0
11,007.9
3,254.5
734.5

915.2
154.5
388.8
19.1
15.5

3.43
2.81
3.53
0.59
2.11

33,196.2
8,675.0
12,651.4
3,597.2455.9

1,431.1
349.1
620.5
58.0
18.5

4.31
4.02
4.90
1.61
4.06

1.67
0.80

20,486.9
6,164.1

577.9
337.3

2.82
0.61

25,379.5
7,816.7

1,046.1
385.0

4.12
0.19

1.30

131,807.5

1,957.9

1.49

134,950.0

2,639.3

1.96

0.48
0.82

121,109.7
944.9¥ 10,697.8 ¥1,013.0

0.78
0.71

122,756.7 1,571.4¥ 12,193.3 ¥1,067.9

1.28
0.68

57

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

Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006
Interest and dividend income increased by ¥681.4 billion, or 34.8%, from the previous fiscal year to¥2,639.3 billion yen in the fiscal year ended March 31, 2007. Domestic interest and dividend income accountedfor ¥1,208.2 billion of the total amount, an increase of ¥165.5 billion from the previous fiscal year, and foreigninterest and dividend income accounted for ¥1,431.1 billion, an increase of ¥515.8 billion from the previous
fiscal year.
The increase in domestic interest and dividend income was due mainly to the increase in interest anddividend income from domestic loans and domestic investments. The increase in interest income from domesticloans was due to a rise in the average yield on domestic loans. The average yield on domestic loans rose by
0.11% reflecting an increase in yen interest rate level. The increase in interest and dividend income frominvestments was due mainly to the increase of 0.32% in average yield reflecting an increase in yen interest ratelevels, offset in part by the effect of a decrease in the average balance of domestic investments of ¥2,298.1 billion
resulting from the sales of bonds with relatively low yields in connection with the restructuring of our bondportfolio. The changes in the average yields on domestic interest-earning assets contributed to an overall increase
in interest and dividend income of ¥187.3 billion, and the changes in average balances of domestic interestearning assets contributed to an overall decrease in interest and dividend income of ¥21.7 billion, the latter due
mainly to the decrease in average balance of domestic investments and trading account assets, resulting in the¥165.6 billion decrease in domestic interest and dividend income.
The significant increase in foreign interest and dividend income was due mainly to increases in interest anddividend income from foreign call loans and funds sold, and receivables under resale agreements and securities
borrowing transactions as well as foreign loans. These increases were, in turn, due to an increase in average
yield, reflecting a general increase in U.S. dollar and euro interest rate levels, and an increase in averagebalances, reflecting the increases in our foreign investment and lending as a result of our efforts to increase suchforeign assets. The changes in average yields on foreign interest-earning assets contributed to an overall increase
in interest and dividend income of ¥234.0 billion, and the changes in average balances of foreign interest-earning
assets contributed to an overall increase in interest and dividend income of ¥281.8 billion, resulting in the ¥515.8
billion increase in foreign interest and dividend income.
Interest expense increased by ¥626.5 billion, or 66.3%, from the previous fiscal year to ¥1,571.4 billion in
the fiscal year ended March 31, 2007. Domestic interest expense accounted for ¥525.3 billion of the total amount,an increase of ¥158.3 billion from the previous fiscal year, and foreign interest expense accounted for ¥1,046.1
billion of the total amount, an increase of ¥468.2 billion from the previous fiscal year.
The increase in domestic interest expense was due mainly to an increase in interest expense on domestic
deposits and short-term borrowings. The increase in interest expense on domestic interest-bearing deposits wasdue to an increase of 0.18% in the average interest rate, reflecting an increase in yen interest rate levels. The
increase in interest expense on short-term borrowings also reflects the increase in yen interest rate levels. Thechanges in average interest rates on domestic interest-bearing liabilities contributed to an overall increase ininterest expense of ¥182.4 billion, offset in part by a decrease in interest expense of ¥24.1 billion due to thechanges in average balances of domestic interest-bearing liabilities, resulting in the ¥158.3 billion increase indomestic interest expense. Although the increase of 0.11% in average yield on domestic loans in the fiscal year
ended March 31, 2007 compared to the previous fiscal year was smaller than the increase of 0.18% in the averagerate on domestic interest-bearing deposits over the same period, after taking into account the effects of domestic
58

non-interest-bearing deposits and domestic debentures and excluding the effects of non-yen-denominateddomestic interest-bearing deposits and non-yen-denominated domestic loans, the increase in the average yield on
yen-denominated domestic loans in the fiscal year ended March 31, 2007 compared to the previous fiscal year
slightly exceeded the increase in the average rate on yen-denominated domestic deposits and debentures over thesame period, thus showing a widening of the difference between such average yield and average rate.
The increase in foreign interest expense was due mainly to increases in interest expense on foreign shortterm borrowings and foreign deposits. These increases were due mainly to the increase in average interest rates
on these liabilities, reflecting a general increase in U.S. dollar and euro interest rate levels, and the increase in
their average balances as we sought to increase funding from these sources for our investments in foreign
securities and loans. The changes in average interest rates on foreign interest-bearing liabilities contributed to an
overall increase in interest expense of ¥292.0 billion, and the changes in average balances of foreign interestbearing liabilities contributed to an overall increase in interest expense of ¥176.2 billion, resulting in the ¥468.2
billion increase in foreign interest expense.
As a result of the foregoing, net interest income increased by ¥54.9 billion, or 5.4%, from the previous fiscal
year to ¥1,067.9 billion. Average interest rate spread declined by 0.03% to 0.68%, with domestic average interest
rate spread rising by 0.02%, due mainly to a rise in average yield on investments and loans, which more thanoffset the effect of a rise in average interest rate on deposits, both of which reflects rising yen interest rate levels.
Foreign average interest rate spread declined by 0.42% due mainly to the effect of the rise in average interest rateon short-term borrowings exceeding the effect of the rise in average yield on loans.
Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
Interest and dividend income increased by ¥342.5 billion, or 21.2%, from the previous fiscal year to¥1,957.9 billion yen in the fiscal year ended March 31, 2006. Domestic interest and dividend income accountedfor ¥1,042.7 billion of the total amount, a decrease of ¥58.9 billion from the previous fiscal year, and foreigninterest and dividend income accounted for ¥915.2 billion, an increase of ¥401.4 billion.
The decrease in domestic interest and dividend income was due mainly to the decrease in interest anddividend income from domestic loans and domestic trading account assets. The decrease in interest income fromdomestic loans was due to a decline in the average yield on, and average balance of, domestic loans. The average
yield on domestic loans declined by 0.12% due mainly to increased competition among lenders. The average loanbalance of domestic loans declined by ¥2,152.7 billion, reflecting our efforts to reduce impaired loans andreduced corporate loan demand, although the balance of domestic loans as of March 31, 2006 increased
compared to March 31, 2005 as the balance of domestic loans bottomed out and began to increase in the second
half of the fiscal year ended March 31, 2006, reflecting a recovery in corporate loan demand as the Japanese
economy continued to improve. These decreases in income were offset in part by an increase in interest anddividend income from investments due mainly to the increase in average yield on domestic investments,
reflecting the increase in yen interest rate levels, and the increase in the average balance of investments,
reflecting primarily an increase in Japanese government bonds due to an increase in short-term bonds and bonds
with variable interest rates which more than offset the effect of the sales of long-term bonds in connection withthe restructuring of our bond portfolio. The changes in the average yields on domestic interest-earning assets
contributed to an overall decrease in interest and dividend income of ¥45.7 billion, and the changes in averagebalances of domestic interest-earning assets contributed to an overall decrease in interest and dividend income of¥13.2 billion, the latter due mainly to the decrease in average balance of domestic loans, resulting in the ¥58.9
billion decrease in domestic interest and dividend income.
The significant increase in foreign interest and dividend income was due mainly to increases in interest anddividend income from foreign call loans and funds sold, and receivables under resale agreements and securities
borrowing transactions, foreign loans and foreign investments. These increases were, in turn, due to an increasein average yield, reflecting a general increase in U.S. dollar and euro interest rate levels, and an increase in59

average balances, reflecting mainly increases in foreign investments such as bonds and foreign loans as we
increased our investment and lending activities and due to the depreciation of the yen against other major
currencies. However, the increase in the average yield on foreign interest-earning assets, including loans, wassmaller than the increase in the interest rate on foreign interest-bearing liabilities due mainly to the increase incompetition in loans to foreign affiliates of Japanese corporations, reflecting the increase in competition in thedomestic loan market. The changes in average yields on foreign interest-earning assets contributed to an overall
increase in interest and dividend income of ¥203.3 billion, and the changes in average balances of foreigninterest-earning assets contributed to an overall increase in interest and dividend income of ¥198.1 billion,
resulting in the ¥401.4 billion increase in foreign interest and dividend income.
Interest expense increased by ¥366.3 billion, or 63.3%, from the previous fiscal year to ¥944.9 billion in thefiscal year ended March 31, 2006. Domestic interest expense accounted for ¥367.0 billion of the total amount, an
increase of ¥44.6 billion from the previous fiscal year, and foreign interest expense accounted for ¥577.9 billionof the total amount, an increase of ¥321.7 billion from the previous fiscal year.
The increase in domestic interest expense was due mainly to an increase in interest expense on domestic
deposits and domestic short-term borrowings offset in part by a decrease in interest expense on debentures. The
increase in interest expense on domestic deposits was due to an increase of 0.09% in the average interest rate,
reflecting an increase in yen interest rate levels which affected mainly the applicable interest rates on time
deposits, offset in part by the decrease of ¥7,257.1 billion in the average balance of domestic deposits, reflecting
mainly a decrease in interest-bearing demand deposits and deposits at notice which are not covered by deposit
insurance offset in part by an increase in non-interest-bearing demand deposits. The decrease in interest expense
on debentures was due to decreases in both the average interest rate and average balance, and the increase ininterest expense on domestic short-term borrowings was due mainly to an increase in the average interest rate.
The changes in average interest rates on domestic interest-bearing liabilities contributed to an overall increase ininterest expense of ¥47.5 billion, offset in part by a decrease in interest expense of ¥2.9 billion due to the changes
in average balances of domestic interest-bearing liabilities, resulting in the ¥44.6 billion increase in domestic
interest expense.
The increase in foreign interest expense was due mainly to increases in interest expense on foreign shortterm borrowings and foreign deposits. These increases were due mainly to the increase in average interest rates
on these liabilities, reflecting a general increase in U.S. dollar and euro interest rate levels, and the increase in
their average balance as we sought to increase funding from these sources for our investments in foreign
securities and loans. The changes in average interest rates on foreign interest-bearing liabilities contributed to an
overall increase in interest expense of ¥198.5 billion, and the changes in average balances of foreign interestbearing liabilities contributed to an overall increase in interest expense of ¥123.2, resulting in the ¥321.7 billion
increase in foreign interest expense.
As a result of the foregoing, net interest income decreased by ¥23.8 billion, or 2.3%, from the previous
fiscal year to ¥1,013.0 billion. Average interest rate spread declined by 0.11% to 0.71%, with domestic averageinterest rate spread declining by 0.13%, due mainly to a decrease in loan spreads, reflecting increased
competition in the domestic loan market, and foreign average interest rate spread declining by 0.19%, due mainly
to a decrease in loan spreads to foreign affiliates of Japanese corporations, reflecting the increased competition in
the domestic loan market.
Provision (Credit) for Loan Losses
Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006
We had a provision for loan losses of ¥182.1 billion in the fiscal year ended March 31, 2007 compared to acredit for loan losses of ¥157.7 billion in the previous fiscal year. The provision in the fiscal year ended
March 31, 2007 was due mainly to an increase in allowance for loan losses reflecting mainly the downgrade incredit rating of a large non-bank financial company and another large borrower and its subsidiaries, which was60

offset by the effect of improvements in the credit quality of our previously troubled borrowers and general
improvements in the Japanese economy. See “—Financial Condition—Loans—Provision (credit) for loan
losses.”Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
Improvements in the credit quality of many of our previously troubled borrowers and general improvementsin the Japanese economy enabled us to reverse a portion of the allowance for loan losses and record a credit of¥157.7 billion in the fiscal year ended March 31, 2006 compared to a provision for loan losses of ¥55.0 billion in
the previous fiscal year.
Noninterest Income
The following table shows a breakdown of noninterest income for the fiscal years ended March 31, 2005,
2006 and 2007:
Fiscal years ended March 31,
2005

2006
(in billions of yen)

2007

Fees and commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and commissions from deposits, debentures and lending
business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and commissions from remittance business . . . . . . . . . . . . .
Fees and commissions from securities-related business . . . . . . . .
Trust fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees for other customer services . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange gains (losses)–net . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account gains–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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 602.1¥ 688.7¥ 683.0

103.0
113.8
103.0
63.0
219.3
(0.3)
190.0
471.9
46.4
418.6
6.9
80.6
255.4

113.9
116.0
133.2
75.8
249.8
(110.7)20.3
143.5(179.6)
289.0
34.1
65.5
187.8

116.3
116.0
101.9
66.3
282.5
(51.3)
389.9(186.0)(121.6)(43.0)(21.4)
64.6
295.7

Total noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,599.7¥ 995.1¥1,195.9

Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006
Noninterest income increased by ¥200.8 billion, or 20.2%, from the previous fiscal year to ¥1,195.9 billion
in the fiscal year ended March 31, 2007. The increase was due mainly to an increase in trading account gains–netof ¥369.6 billion and an increase in other noninterest income of ¥107.9 billion offset in part by an incurrence ofinvestment losses–net of ¥186.0 billion compared to investment gains–net of ¥143.5 billion in the previous fiscal
year.
Fees and commissions
Fees and commissions income decreased by ¥5.7 billion, or 0.8%, from the previous fiscal year to ¥683.0
billion in the fiscal year ended March 31, 2007. The decrease was due mainly to a decrease of ¥31.3 billion infees and commissions from securities-related business and a decrease of ¥9.5 billion in trust fees, offset in part by
an increase of ¥32.7 billion in fees for other customer services. The decrease in fees and commissions fromsecurities-related business was due mainly to decreases in stock brokerage fees and underwriting commissions
related to private offerings of debt securities, offset in part by an increase in sales commissions related to61

investment trusts. Trust fees decreased due mainly to fees recorded in the fiscal year ended March 31, 2006 in
connection with a one-time sale of loan assets related to loan trusts in connection with our cessation of sales
activities for loan trust products. The increase in fees for other customer services was due mainly to increases intrust business–related fees other than those included in trust fees such as brokerage fees related to real estatetransactions, fees from agency businesses such as credit card processing fees earned by UC Card and other fees
and commissions such as sales agency fees related to insurance products. UC Card, a former consolidated
subsidiary of ours, became an equity-method affiliate of ours in June 2007 in connection with the consolidation
and reorganization of our credit card business. Accordingly, fees from agency business of UC Card will not berecorded under fees and commissions beginning the fiscal year ending March 31, 2008, and our share of income
or loss of UC Card will instead be included within investment gains-net.
Foreign exchange losses–net
Foreign exchange losses–net decreased by ¥59.4 billion, or 53.7%, from the previous fiscal year to ¥51.3
billion in the fiscal year ended March 31, 2007. The decrease was due mainly to a decrease of ¥129.6 billion
from ¥246.9 billion in the fiscal year ended March 31, 2006 to ¥117.3 billion in the fiscal year ended March 31,
2007 in translation losses with respect to foreign currency-denominated liabilities that were funded and incurred
to offset foreign exchange risk related to foreign currency-denominated available-for-sale securities.
Trading account gains–net
Trading account gains–net increased by ¥369.6 billion from ¥20.3 billion in the previous fiscal year to¥389.9 billion in the fiscal year ended March 31, 2007. The increase was due to the gain of ¥70.6 billion in thefiscal year ended March 31, 2007 related to changes in the fair value of instruments used to hedge market risks,
mainly interest rate risk, that are not eligible for hedge accounting under U.S. GAAP, which was a loss of ¥282.7
billion in the previous fiscal year.
Investment gains (losses)–net
Investment gains (losses)–net were losses of ¥186.0 billion in the fiscal year ended March 31, 2007
compared to gains of ¥143.5 billion in the previous fiscal year. The change was due mainly to the investment
losses related to equity securities of ¥43.0 billion incurred in the fiscal year ended March 31, 2007, compared toinvestment gains related to equity securities of ¥289.0 billion, due mainly to impairment losses on preferred stock
issued by a large non-bank financial company. Investment losses related to bonds decreased by ¥58.0 billion to¥121.6 billion in the fiscal year ended March 31, 2007 due mainly to ¥148.5 billion in losses realized on the saleof Japanese government bonds in connection with the restructuring of our bond portfolio and ¥75.4 billion in
impairment losses on Japanese government bonds in the fiscal year ended March 31, 2006. The effect was offset
in part by ¥160.2 billion in impairment losses on Japanese government bonds in the fiscal year ended March 31,
2007 reflecting rising interest rates.
Gains on disposal of premises and equipment
Gains on disposal of premises and equipment decreased by ¥0.9 billion, or 1.4%, from the previous fiscal
year to ¥64.6 billion in the fiscal year ended March 31, 2007 due mainly to lower gains on the sale of real estate
related to closed branches.
Other noninterest income
Other noninterest income increased by ¥107.9 billion, or 57.5%, from the previous fiscal year to ¥295.7
billion in the fiscal year ended March 31, 2007. The increase was due mainly to the subsidy of ¥177.4 billion
received from the Japanese government after the completion of the transfer of the obligations and assets relating
to the substitutional portion of the employees’ pension funds to the government in the fiscal year ended
March 31, 2007. The increase was offset in part by a decrease in gains on the sales of stock of subsidiary62

companies reflecting mainly the sale of a portion of our shares of Mizuho Trust & Banking in the fiscal year
ended March 31, 2006 in order to maintain the subsidiary’s status as a listed company in compliance with thechange in delisting rules of the Tokyo Stock Exchange. Additional information regarding the transfer of theobligation and assets relating to the employees’ pension funds to the government is included in note 21 to ourconsolidated financial statements included elsewhere in this annual report.
Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
Noninterest income decreased by ¥604.6 billion, or 37.8%, from the previous fiscal year to ¥995.1 billion in
the fiscal year ended March 31, 2006. The decrease was due mainly to a decrease in investment gains(losses)–net of ¥328.4 billion, a decrease in trading account gains–net of ¥169.7 billion and an increase in foreignexchange losses–net of ¥110.4 billion offset in part by an increase in fees and commissions of ¥86.6 billion.
Fees and commissions
Fees and commissions income increased by ¥86.6 billion, or 14.4%, from the previous fiscal year to ¥688.7
billion in the fiscal year ended March 31, 2006. Each category into which we divide fees and commissions
income increased, with the increases in fees for other customer services and fees and commissions fromsecurities-related business being the most significant. Fees for other customer services increased by ¥30.5 billion
to ¥249.8 billion due mainly to an increase in trust business-related fees other than those included in trust fees
and in fees from agency businesses such as credit card processing fees earned by UC Card. Fees andcommissions from securities-related business increased by ¥30.2 billion to ¥133.2 billion due mainly to increases
in stock brokerage fees and sales commissions related to investment trusts. Trust fees increased by ¥12.8 billion
to ¥75.8 billion due mainly to an increase in fees related to trust and asset management services and an increasein fees attributed to a one-time sale of all the loan assets held in loan trust accounts. During the fiscal year ended
March 31, 2006, we decided to end the sale of loan trust products in light of these products being superseded byother investment products. In anticipation of the need to repay each trust beneficiaries’ principal upon maturity,
as the trust beneficiary could no longer reinvest funds in loan trust products, we sold all of the loan assets held on
behalf of the trust beneficiaries. Because the master agreement for the loan trust provides that the trust
beneficiaries generally receive a pre-determined dividend rate, with the trust fees paid to us generally equal to theamount of trust profits after deducting dividends paid to the trust beneficiaries, the excess of income earned andgains on sale of the loan assets over the pre-determined dividend rate is recognized by us as trust fees in ourconsolidated statements of income.
Foreign exchange losses–net
Foreign exchange losses–net increased by ¥110.4 billion from the previous fiscal year to ¥110.7 billion in
the fiscal year ended March 31, 2006. The increase was due mainly to an increase of ¥110.3 billion from ¥136.6
billion in the fiscal year ended March 31, 2005 to ¥246.9 billion in the fiscal year ended March 31, 2006 in
translation losses with respect to foreign currency-denominated liabilities that were funded and incurred to offset
foreign exchange risk related to foreign currency-denominated available-for-sale securities.
Trading account gains–net
Trading account gains–net decreased by ¥169.7 billion, or 89.3%, from the previous fiscal year to ¥20.3
billion in the fiscal year ended March 31, 2006. The decrease was due to the loss related to changes in the fairvalue of instruments used to hedge market risks, mainly interest rate risk, that are not eligible for hedge
accounting under U.S. GAAP, which increased ¥206.3 billion from the previous fiscal year to ¥282.7 billion in
the fiscal year ended March 31, 2006.
Investment gains–net
Investment gains–net decreased by ¥328.4 billion, or 69.6%, from the previous fiscal year to ¥143.5 billion
in the fiscal year ended March 31, 2006. Investment gains (losses) related to bonds were losses of ¥179.6 billion
63compared to gains of ¥46.4 billion in the previous fiscal year. The losses in the fiscal year ended March 31, 2006
were due mainly to ¥148.5 billion in losses realized on the sale of Japanese government bonds in connection withthe restructuring of our bond portfolio and ¥75.4 billion in impairment losses on Japanese government bonds
offset in part by gains from sales of bonds. Investment gains related to equity securities decreased by ¥129.6
billion to ¥289.0 billion due to a slowdown in our sales of equity securities compared to the previous fiscal year
offset in part by a decrease in impairment losses on equity securities from ¥57.6 billion in the fiscal year ended
March 31, 2005 to ¥38.3 billion in the fiscal year ended March 31, 2006 due to strong Japanese equity markets.
Gains on disposal of premises and equipment
Gains on disposal of premises and equipment decreased by ¥15.1 billion, or 18.8%, from the previous fiscal
year to ¥65.5 billion in the fiscal year ended March 31, 2006 due mainly to lower gains on the sale of real estate
related to closed branches.
Other noninterest income
Other noninterest income decreased by ¥67.6 billion, or 26.5%, from the previous fiscal year to ¥187.8
billion in the fiscal year ended March 31, 2006. The decrease was due mainly to the inclusion for the fiscal year
ended March 31, 2005 of interest on the refund of provisional tax payments in the amount of ¥102.1 billion as aresult of the favorable decision by the Supreme Court of Japan related to a write-off of loans to Japan Housing
Loan, Inc. offset in part by an increase in gains on the sales of stock of subsidiary companies by ¥29.7 billion due
mainly to the sale of a portion of our shares of Mizuho Trust & Banking in order to maintain the subsidiary’s
status as a listed company in compliance with the change in delisting rules of the Tokyo Stock Exchange.
Noninterest Expenses
The following table shows a breakdown of noninterest expenses for the fiscal years ended March 31, 2005,
2006 and 2007:
2005

Fiscal years ended March 31,
2006
2007
(in billions of yen)

Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and commission expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for losses on off-balance-sheet instruments . . . . . . .
Minority interest in consolidated subsidiaries . . . . . . . . . . . . . . . . . . . .
Other noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 451.5
462.1
227.3
86.2
(25.8)
30.9
146.8¥ 435.2
455.7
178.2
96.1
34.0
69.0
186.1

¥ 416.7
481.0
172.5
111.6
(37.8)
27.7
122.9

Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,379.0¥1,454.3¥1,294.6

Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006
Noninterest expenses decreased by ¥159.7 billion, or 11.0%, from the previous fiscal year to ¥1,294.6
billion in the fiscal year ended March 31, 2007. The decrease was due mainly to a credit for losses on
off-balance-sheet instruments of ¥37.8 billion, compared to a provision of ¥34.0 billion in the previous fiscal
year, a decrease in other noninterest expenses of ¥63.2 billion and a decrease in minority interest in consolidated
subsidiaries of ¥41.3 billion offset in part by an increase in general and administrative expenses of ¥25.3 billion.
Salaries and employee benefits
Salaries and employee benefits decreased by ¥18.5 billion, or 4.3%, from the previous fiscal year to ¥416.7
billion in the fiscal year ended March 31, 2007 due mainly to a decrease in employee retirement benefit
64expenses, resulting from an increase in the expected return on the retirement plan assets, from ¥62.9 billion in theprevious fiscal year to ¥77.3 billion in the fiscal year ended March 31, 2007. The decrease was offset in part by
an increase in personnel costs related to an increase in business promotion staff engaged in strategic businessareas.
General and administrative expenses
General and administrative expenses increased by ¥25.3 billion, or 5.6%, from the previous fiscal year to¥481.0 billion in the fiscal year ended March 31, 2007. The increase was due mainly to a ¥16.6 billion increase inother general and administrative expenses related to the enhancements to our infrastructure to promote ourconsulting activities with individuals and the expansion of our international office network.
Occupancy expenses
Occupancy expenses decreased by ¥5.7 billion, or 3.2%, from the previous fiscal year to ¥172.5 billion in
the fiscal year ended March 31, 2007. The decrease was due mainly to a decrease of ¥4.2 billion in depreciation
expenses as a result of a reduction in related assets due to the consolidation of branches.
Fees and commission expenses
Fees and commission expenses increased by ¥15.5 billion, or 16.1%, from the previous fiscal year to ¥111.6
billion in the fiscal year ended March 31, 2007. Of this increase, ¥3.2 billion was due to an increase in fees andcommission expenses for remittance service as a result of the increase in commission expenses paid inconnection with international remittance transactions.
Provision (credit) for losses on off-balance-sheet instruments
Provision (credit) for losses on off-balance-sheet instruments was a credit of ¥37.8 billion in the fiscal year
ended March 31, 2007 compared to a provision of ¥34.0 billion in the previous fiscal year. The credit was due
mainly to a reversal of allowance for losses on off-balance-sheet transactions as a result mainly of the sale ofcommitment lines for certain large obligors, which decreased the balance of allowance for losses on off-balancesheet transactions to ¥43.9 billion as of March 31, 2007 from ¥86.0 billion as of March 31, 2006.
Minority interest in consolidated subsidiaries
Minority interest in consolidated subsidiaries decreased by ¥41.3 billion, or 59.9%, from the previous fiscal
year to ¥27.7 billion in the fiscal year ended March 31, 2007 due mainly to decreases in minority interests in our
subsidiaries, Mizuho Trust & Banking and UC Card, which accounted for decreases of ¥15.2 billion and ¥10.1
billion, respectively.
Other noninterest expenses
Other noninterest expenses decreased by ¥63.2 billion, or 34.0%, from the previous fiscal year to ¥122.9
billion in the fiscal year ended March 31, 2007 due mainly to ¥40.7 billion in losses incurred in the previous
fiscal year related to the erroneous order placed with the Tokyo Stock Exchange by Mizuho Securities in
December 2005.
Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
Noninterest expenses increased by ¥75.3 billion, or 5.5%, from the previous fiscal year to ¥1,454.3 billion in
the fiscal year ended March 31, 2006. The increase was due mainly to a provision for losses on off-balance-sheet
instruments of ¥34.0 billion, compared to a credit of ¥25.8 billion in the previous fiscal year, an increase in othernoninterest expenses of ¥39.3 billion and an increase in minority interest in consolidated subsidiaries of ¥38.1
billion offset in part by a decrease in occupancy expenses of ¥49.1 billion.
65

Salaries and employee benefits
Salaries and employee benefits decreased by ¥16.3 billion, or 3.6%, from the previous fiscal year to ¥435.2
billion in the fiscal year ended March 31, 2006 due mainly to a decrease in special retirement payments, which
are retirement payments to former employees whose contributions during their career were deemed meritorious
and to those with particular circumstances. These decreases were offset in part by an increase in personnel costs
related to an increase in business promotion staff engaged in strategic business areas.
General and administrative expenses
General and administrative expenses decreased by ¥6.4 billion, or 1.4%, from the previous fiscal year to¥455.7 billion in the fiscal year ended March 31, 2006. The decrease was due to a ¥16.9 billion decrease inimpairment losses as we incurred significant impairments related to software in the fiscal year ended March 31,
2005 in connection with system integration activities at Mizuho Bank. Tax expenses such as consumption tax andproperty tax decreased by ¥4.9 billion due mainly to a decrease in property tax attributable to sales of real estate
related to closed branches. Amortization expenses decreased by ¥1.8 billion as a result mainly of the effects ofthe completion of systems integration at Mizuho Bank. These decreases were offset in part by an increase inother general and administrative expenses of ¥17.0 billion to ¥330.6 billion due mainly to an increase in expenses
related to the expansion of our international office network and advertising.
Occupancy expenses
Occupancy expenses decreased by ¥49.1 billion, or 21.6%, from the previous fiscal year to ¥178.2 billion in
the fiscal year ended March 31, 2006. The decrease was due mainly to a decrease in losses from disposal ofpremises and equipment of ¥38.0 billion to ¥19.7 billion due mainly to lower losses on the sale of real estate
related primarily to closed branches compared to the previous fiscal year. Depreciation decreased by ¥9.8 billion
to ¥65.8 billion, as a result primarily of a reduction in related assets due to the consolidation of branches.
Fees and commission expenses
Fees and commission expenses increased by ¥9.9 billion, or 11.5%, from the previous fiscal year to ¥96.1
billion in the fiscal year ended March 31, 2006. Fees and commission expenses for remittance service increasedby ¥1.6 billion to ¥30.5 billion as a result of the increase in commission expenses paid in connection withinternational remittance transactions. Fees and commission expenses for securities-related business increased by¥3.7 billion to ¥15.0 billion due primarily to the increase in transaction costs such as brokerage fees paid by our
securities subsidiary as our securities business grew.
Provision (credit) for losses on off-balance-sheet instruments
Provision for losses on off-balance-sheet instruments was ¥34.0 billion compared to a credit of ¥25.8 billion
in the previous fiscal year. The provision was due primarily to an increase in allowance for losses on off-balancesheet transactions as a result mainly of downgrades in credit ratings of certain large obligors to which we
provided commitment lines and an increase in allowances for probable losses regarding trust transactions, which
increased the balance of allowance for losses on off-balance-sheet transactions to ¥86.0 billion as of March 31,
2006 from ¥52.0 billion as of March 31, 2005.
Minority interest in consolidated subsidiaries
Minority interest in consolidated subsidiaries increased by ¥38.1 billion, or 123.2%, from the previous fiscal
year to ¥69.0 billion in the fiscal year ended March 31, 2006 due mainly to increases in income before income
taxes of our subsidiaries, Mizuho Trust & Banking, UC Card and Mizuho Investors Securities, which accounted
for increases of ¥16.8 billion, ¥9.3 billion and ¥4.7 billion, respectively.
66

Other noninterest expenses
Other noninterest expenses increased by ¥39.3 billion, or 26.7%, from the previous fiscal year to ¥186.1
billion in the fiscal year ended March 31, 2006 due mainly to ¥40.7 billion in losses related to the erroneousorder placed with the Tokyo Stock Exchange by Mizuho Securities in December 2005.
Income Tax Expense (Benefit)
The following table shows the components of income tax expense (benefit) for the fiscal years ended
March 31, 2005, 2006 and 2007:2005

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

Fiscal years ended March 31,
2006
2007
(in billions of yen)¥(125.2)
20.0¥ 43.726.7¥ 27.922.4

Total current tax expense (benefit) . . . . . . . . . . . . . . . . . . . .
Deferred:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(105.2)

70.4

50.3

230.0
(0.4)

(445.6)
1.0

112.4
0.5

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

229.6(444.6)

112.9

Total income tax expense (benefit) . . . . . . . . . . . . . . . .

¥ 124.4¥(374.2)¥163.2

Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006
Income tax expense (benefit) in the fiscal year ended March 31, 2007 was an expense of ¥163.2 billion
compared to a benefit of ¥374.2 billion in the previous fiscal year. Current income tax expense in the fiscal year
ended March 31, 2006 decreased by ¥20.1 billion to ¥50.3 billion from the previous fiscal year.
Deferred income tax expense (benefit) in the fiscal year ended March 31, 2007 was an expense of ¥112.9
billion compared to a benefit of ¥444.6 billion in the previous year. Gross deferred tax assets decreased by¥278.7 billion in the fiscal year ended March 31, 2007 due mainly to a decrease of net operating loss
carryforwards resulting from its utilization. The decrease in valuation allowance was smaller than the decrease ingross deferred tax assets due mainly to changes in our estimation of future taxable income. As a result deferred
tax assets, net of valuation allowance decreased by ¥99.9 billion from the end of the previous fiscal year to¥2,445.2 billion at March 31, 2007.
Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
Income tax expense (benefit) in the fiscal year ended March 31, 2006 was a benefit of ¥374.2 billion
compared to an expense of ¥124.4 billion in the previous fiscal year. Current income tax expense (benefit) in thefiscal year ended March 31, 2006 was an expense of ¥70.4 billion compared to a benefit of ¥105.2 billion in theprevious fiscal year. This change was due mainly to a one-time tax benefit of ¥152.4 billion in the fiscal year
ended March 31, 2005 related to the favorable decision by the Supreme Court of Japan related to a write-off ofloans to Japan Housing Loan, Inc.
Deferred income tax expense (benefit) in the fiscal year ended March 31, 2006 was a benefit of ¥444.6
billion compared to an expense of ¥229.6 billion in the previous year. Gross deferred tax assets increased by¥1,029.6 billion due mainly to an increase of net operating loss carryforwards of Mizuho Financial Group and a
subsidiary (as the Mizuho group does not prepare consolidated corporate tax returns in Japan) resulting from the67

sale of shares of subsidiaries within the Mizuho group. This increase was offset in part by an increase in thevaluation allowance by ¥639.4 billion due mainly to an allowance recorded in connection with the recognition of
the net operating loss carryforwards arising from the sale of subsidiary shares reflecting our belief that it was not
likely that the net operating loss carryforwards would be utilized prior to expiration. Excluding the effect of thisincrease resulting from the increase in net operating loss carryforwards arising from the sale of subsidiary shares,
the valuation allowance decreased as a result of improved realizability of future tax benefits based mainly on
increased expected future taxable income. As a result, deferred tax assets, net of valuation allowance increasedby ¥390.2 billion from the end of the previous fiscal year to ¥2,545.1 billion at March 31, 2006.
The following table shows components of deferred tax assets as of March 31, 2005, 2006 and 2007:2005

Deferred tax assets:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Stabilization Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥Fiscal years ended March 31,
2006
2007
(in billions of yen)

968.4
626.6
41.4
75.7
38.5
1,935.9
213.0¥ 1,030.6
424.4
137.2
53.3
34.5
2,989.9259.2¥ 1,142.9
456.8
91.6
41.9
30.3
2,677.0
209.9

Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,899.5

4,929.1

4,650.4

Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,744.6)(2,384.0)(2,205.2)

Deferred tax assets, net of valuation allowance . . . . . . . . . .
Deferred tax liabilities:
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . .
Prepaid pension cost and accrued pension liabilities . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,154.9

2,545.1

2,445.2

793.8
154.5
18.9
39.6

1,399.9
75.1
45.7
50.6

1,552.8
36.9
130.7
122.5

Gross deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . .

1,006.8

1,571.3

1,842.9

Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,148.1

¥

973.8

¥

602.3

The following table shows deferred tax assets and deferred tax liabilities, which are netted within the same
tax jurisdiction for presentation in the balance sheets, as of March 31, 2005, 2006 and 2007:2005

As of March 31,
2006(in billions of yen)

2007

Deferred tax assets on the balance sheet . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities on the balance sheet . . . . . . . . . . . . . . . . . . . .

¥1,175.2
27.1¥996.522.7¥618.7
16.4

Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,148.1¥973.8¥602.3Net Income
Fiscal Year Ended March 31, 2007 Compared to Fiscal Year Ended March 31, 2006
As a result of the foregoing, net income decreased by ¥461.8 billion from the previous fiscal year to ¥623.9
billion in the fiscal year ended March 31, 2007.
68

Fiscal Year Ended March 31, 2006 Compared to Fiscal Year Ended March 31, 2005
As a result of the foregoing, net income increased by ¥7.6 billion from the previous fiscal year to ¥1,085.7
billion in the fiscal year ended March 31, 2006.
Business Segments Analysis
The business segment information set forth below is derived from the internal management reporting
systems used by management to measure the performance of our business segments. We measure theperformance of each of our operating segments primarily in terms of “net business profits” in accordance withJapanese GAAP following internal managerial accounting rules and practices. Net business profits is used as ameasure of the profitability of core banking operations in Japan 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 (excluding non-recurring expenses). Measurement by net
business profits is required for regulatory reporting to the Financial Services Agency. Therefore, the format andinformation is presented primarily on the basis of Japanese GAAP and is not consistent with the consolidated
financial statements prepared in accordance with U.S. GAAP. A reconciliation of total net business profits withincome before income tax expense (benefit) under U.S. GAAP is provided in note 30 of our consolidated
financial statements.
During the fiscal year ended March 31, 2006, we reorganized our business portfolio into three Global
Groups: the Global Corporate Group, the Global Retail Group and the Global Asset & Wealth Management
Group. The Global Corporate Group consists primarily of Mizuho Corporate Bank and Mizuho Securities, theGlobal Retail Group consists primarily of Mizuho Bank and Mizuho Investors Securities, and the Global Asset &Wealth Management Group consists primarily of Mizuho Trust & Banking. We divide the businesses of each ofMizuho Corporate Bank and Mizuho Bank into three reportable segments based on customer characteristics andfunctions. Reportable segments of Mizuho Corporate Bank are: domestic; international; and trading and others.
Reportable segments of Mizuho Bank are: retail banking; corporate banking; and trading and others. In addition
to the three Global Groups, subsidiaries which provide services to a wide range of customers and which do notbelong to a specific Global Group are aggregated as Others.
The Global Corporate Group
Mizuho Corporate Bank
Mizuho Corporate Bank is the main operating company of the Global Corporate Group and provides
banking and other financial services to large corporations, financial institutions, public sector entities, foreign
corporations, including foreign subsidiaries of Japanese corporations, and foreign governmental entities.
Domestic
This segment provides a variety of financial products and services to large corporations, financial
institutions and public sector entities in Japan. The products and services it offers include commercial banking,advisory services, syndicated loan arrangements, leveraged finance and structured finance.
International
This segment mainly offers commercial banking and foreign exchange transaction services to foreign
corporations, including foreign subsidiaries of Japanese corporations, through Mizuho Corporate Bank’s overseas
network.
Trading and others
This segment supports the domestic and international segments in offering derivatives and other risk
hedging products to satisfy Mizuho Corporate Bank’s customers’ financial and business risk control
69requirements. It is also engaged in Mizuho Corporate Bank’s proprietary trading, such as foreign exchange andbond trading, and asset and liability management. This segment also includes costs incurred by headquartersfunctions of Mizuho Corporate Bank.
Mizuho Securities
Mizuho Securities is the primary investment banking arm in the Global Corporate Group and offers
wholesale securities and investment banking services, such as underwriting and trading of bonds and equities,
advisory services and structured finance, to large and international corporations, financial institutions and public
entities.
OthersThis segment consists of Mizuho Corporate Bank’s subsidiaries other than Mizuho Securities. Thesesubsidiaries offer financial products and services in specific areas of business or countries mainly to customers of
the Global Corporate Group. This segment also includes elimination of transactions between companies within
the Global Corporate Group.
The Global Retail Group
Mizuho Bank
Mizuho Bank is the main operating company of the Global Retail Group. Mizuho Bank provides banking
and other financial services mainly to individuals, SMEs and middle-market corporations through its domestic
branch and ATM network.
Retail banking
This segment offers banking products and services, including housing and other personal loans, credit cards,
deposits, investment products and consulting services, to Mizuho Bank’s individual customers through its
nationwide branch and ATM network, as well as telephone and Internet banking services.
Corporate banking
This segment provides loans, syndicated loan arrangements, structured finance, advisory services, otherbanking services and capital markets financing to SMEs, middle-market corporations, local governmental entities
and other public sector entities in Japan.
Trading and others
This segment supports the retail banking and corporate banking segments in offering derivatives and otherrisk hedging products to satisfy Mizuho Bank’s customers’ financial and business risk control requirements. It isalso engaged in Mizuho Bank’s proprietary trading, such as foreign exchange and bond trading, and asset andliability management. This segment also includes costs incurred by headquarters functions of Mizuho Bank.
Mizuho Investors Securities
Mizuho Investors Securities offers securities services to individuals and corporate customers of the Global
Retail Group and provides with those corporate customers with support in procuring funds through capital
markets.
OthersThis segment consists of Mizuho Bank’s subsidiaries other than Mizuho Investors Securities. Thesesubsidiaries, such as Mizuho Capital, UC Card (a former consolidated subsidiary of ours which became an70

equity-method affiliate of ours in June 2007) and Mizuho Business Financial Center Co., Ltd., offer non-banking
financial products and services in specific areas of business to customers of the Global Retail Group. This
segment also includes elimination of transactions between companies within the Global Retail Group.
The Global Asset & Wealth Management Group
Mizuho Trust & Banking
Mizuho Trust & Banking is the main operating company of the Global Asset & Wealth Management Groupand offers products and services related to trust, real estate, securitization and structured finance, pension andasset management and stock transfers.
OthersThis segment includes companies other than Mizuho Trust & Banking which are a part of the Global
Asset & Wealth Management Group. These companies include Mizuho Private Wealth Management, Trust &Custody Services Bank, Mizuho Asset Management and DLIBJ Asset Management, which is an equity-method
affiliate. They offer products and services related to private banking, trust and custody, and asset management.
This segment also includes elimination of transactions between companies within the Global Asset & WealthManagement Group.
OthersThis segment consists of Mizuho Financial Group and its subsidiaries that do not belong to a specific Global
Group but provide their services to a wide range of customers. Under this segment, we offer services including
research and consulting services through Mizuho Research Institute, information technology-related services
through Mizuho Information & Research Institute and advisory services to financial institutions through Mizuho
Financial Strategy. This segment also includes elimination of transactions between the Global Groups.
The information below for reportable segments for the fiscal year ended March 31, 2007 is derived from ourinternal management reporting system. Information for the fiscal years ended March 31, 2005 and 2006 is also
derived from our internal management reporting system reclassified to conform to the presentation for thefollowing fiscal year.

71Results of Operations by Business Segment
Consolidated Results of Operations
Consolidated gross profits for the fiscal year ended March 31, 2007 were ¥2,117.4 billion, an increase of¥113.6 billion compared to the previous fiscal year. Consolidated general and administrative expenses (excluding
non-recurring expenses) for the fiscal year ended March 31, 2007 were ¥1,075.9 billion, an increase of ¥34.6
billion compared to the previous fiscal year. Consolidated net business profits for the fiscal year ended March 31,
2007 were ¥991.6 billion, an increase of ¥69.1 billion compared to the previous fiscal year. The following
diagram shows the relative contributions to consolidated net business profits of each of our Global Groups for the
fiscal year ended March 31, 2007:

Global Asset& Wealth Others
Management
2%
Group
10%

GlobalCorporate
Group
37%

Global Retail
Group
51%

72

Global Corporate Group Financial Results
The following table shows gross profits, general and administrative expenses (excluding non-recurring
expenses) and net business profits for the Global Corporate Group for the fiscal years ended March 31, 2005,
2006 and 2007:

OthersTotal
GlobalCorporate
Group

0.2
84.9

¥ 12.657.9¥400.0336.4

Mizuho Corporate Bank(1)TradingMizuhoDomestic International and others Subtotal Securities(in billions of yen)

Fiscal year ended March 31, 2005:
Gross profits:
Net interest income . . . . . . . . ¥235.0
Net noninterest income . . . . . 107.9¥ 43.442.6¥108.843.1¥387.2
193.6

342.9

86.0

151.9

580.8

85.1

70.5

736.4

80.7
—

46.2
—

81.7
—

208.6
—

45.4
—

52.1
(38.5)

306.1(38.5)Net business profits (loss) . . . ¥262.2¥ 39.8¥ 70.2¥372.2¥ 39.7¥ (20.1)¥391.8¥ 56.6¥108.8(2) ¥376.6¥

1.0¥ 25.0¥402.6

Total gross profits . . . . .
General and administrative
expenses . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . .

Fiscal year ended March 31, 2006:
Gross profits:
Net interest income(expense) . . . . . . . . . . . . . . ¥211.2
Net noninterest income(expenses) . . . . . . . . . . . . . 107.5

¥

55.4

(8.5)

154.4

117.7

62.8

334.9

318.7

112.0

100.3

531.0

118.7

87.8

737.5

82.0
—

51.7
—

82.1
—

215.8
—

55.2
—

63.1
(36.9)

334.1(36.9)Net business profits (loss) . . . ¥236.7¥ 60.3¥ 18.2¥315.2¥ 63.5¥ (12.2)¥366.5

Fiscal year ended March 31, 2007:
Gross profits:
Net interest income(expense) . . . . . . . . . . . . . . ¥202.4
Net noninterest income . . . . . 108.2¥ 73.459.6¥ 30.773.6¥306.5241.4¥ (0.2) ¥101.4
105.9
30.3

¥407.7
377.6

310.6

133.0

104.3

547.9

105.7

131.7

785.3

88.3
—

61.5
—

91.2
—

241.0
—

61.1
—

74.9
(44.3)

377.0(44.3)Net business profits . . . . . . . . ¥222.3¥ 71.5¥ 13.1¥306.9¥ 44.6¥ 12.5¥364.0Total gross profits . . . . .
General and administrative
expenses . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . .

Total gross profits . . . . .
General and administrative
expenses . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . .

Notes:(1) Figures for Mizuho Corporate Bank include those of its revitalization subsidiaries before such subsidiaries
were merged with Mizuho Corporate Bank in October 2005.
(2) Dividends of ¥120.0 billion received by Mizuho Corporate Bank from its revitalization subsidiaries are
excluded from “trading and others” for the fiscal year ended March 31, 2006.

73

Fiscal Year Ended March 31, 2007 Compared with Fiscal Year Ended March 31, 2006
Gross profits for Mizuho Corporate Bank for the fiscal year ended March 31, 2007 increased by ¥16.9
billion, or 3.2%, from the previous fiscal year to ¥547.9 billion. This increase was due mainly to gross profits
from international operations increasing by ¥21.0 billion, reflecting continuing robustness with respect totransactions with both foreign subsidiaries of Japanese corporations and foreign corporations. The increase wasalso due to an increase in gross profits from trading and others of ¥4.0 billion helped by the realization of
unrealized losses on our bond portfolio of ¥58.4 billion in the fiscal year ended March 31, 2006 in connection
with the restructuring of our overall bond portfolio. These increases were offset in part by a decrease in grossprofits from domestic operations of ¥8.1 billion, reflecting a decrease in net interest income due to lower demand
for loans and a decline in the domestic average loan interest rate spread and only a slight increase in domestic net
noninterest income.
General and administrative expenses of Mizuho Corporate Bank for the fiscal year ended March 31, 2007
increased by ¥25.2 billion, or 11.7%, from the previous fiscal year to ¥241.0 billion due mainly to expenses
incurred in connection with our efforts to grow future gross profits, such as the expansion of our international
office network and increases in personnel.
Net business profits of Mizuho Securities decreased by ¥18.9 billion, or 29.8%, from the previous fiscal
year to ¥44.6 billion due mainly to decreased income from its equity business, offset in part by increased income
from its investment banking business such as M&A advisory.
As a result mainly of the foregoing, net business profits for the Global Corporate Group for the fiscal year
ended March 31, 2007 decreased by ¥2.5 billion from the previous fiscal year to ¥364.0 billion.
Fiscal Year Ended March 31, 2006 Compared with Fiscal Year Ended March 31, 2005
Gross profits for Mizuho Corporate Bank for the fiscal year ended March 31, 2006, excluding the effect ofdividends totaling ¥120.0 billion received in the fiscal year ended March 31, 2006 from revitalization
subsidiaries, decreased by ¥49.8 billion, or 8.6%, from the previous fiscal year to ¥531.0 billion. This decrease
was due mainly to the realization of ¥58.4 billion in unrealized losses upon sales of bonds in such fiscal year inconnection with the restructuring of our overall bond portfolio that we implemented in light of rising interest
rates, which led to net noninterest expenses of ¥8.5 billion in trading and others compared to net noninterest
income of ¥43.1 billion in the previous fiscal year. The decline in gross profits was also due to a decrease in net
interest income in domestic operations of ¥23.8 billion, reflecting mainly a decline in domestic average interest
rate spread. These effects were offset in part by increases in net interest income and net noninterest income forinternational operations of ¥13.2 billion and ¥12.8 billion, respectively, reflecting mainly increased income fromloans and other transactions involving foreign operations of our Japanese customers and increased fee income
from management buy-out transactions in Europe. The dividends from revitalization subsidiaries were based on
an increase in their retained earnings as a result of reversals of their provisions for loan losses due to progress inborrower revitalization, which is subtracted in “others” and thus does not affect total gross profits for the Global
Corporate Group.
General and administrative expenses of Mizuho Corporate Bank for the fiscal year ended March 31, 2006
increased by ¥7.2 billion, or 3.4%, from the previous fiscal year to ¥215.8 billion due mainly to expenses
incurred in connection with our efforts to grow future gross profits, such as the expansion of our international
office network and increases in personnel, offset in part by our ongoing efforts to enhance cost efficiency.
Net business profits of Mizuho Securities increased by ¥23.8 billion, or 59.9%, from the previous fiscal yearto ¥63.5 billion, due mainly to growth in its equity business, reflecting enhanced business collaboration with
Mizuho Corporate Bank.
As a result mainly of the foregoing, net business profits for the Global Corporate Group for the fiscal year
ended March 31, 2006 decreased by ¥25.3 billion from the previous fiscal year to ¥366.5 billion.
74

Global Retail Group Financial Results
The following table shows gross profits, general and administrative expenses (excluding non-recurring
expenses) and net business profits for the Global Retail Group for the fiscal years ended March 31, 2005, 2006
and 2007:
Mizuho Bank(1)MizuhoRetail Corporate Trading andInvestorsbanking banking
othersSubtotal Securities Others(in billions of yen)

Fiscal year ended March 31, 2005:
Gross profits:
Net interest income . . . . . . . . . . . . . . ¥239.4 ¥338.7
Net noninterest income . . . . . . . . . . .
49.7 187.1
Total gross profits . . . . . . . . . . .
General and administrative expenses . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . .

289.1
206.5
—

Fiscal year ended March 31, 2006:
Gross profits:
Net interest income . . . . . . . . . . . . . . ¥240.2(2) ¥319.0
Net noninterest income . . . . . . . . . . .
45.8(2) 233.2
Total gross profits . . . . . . . . . . .
General and administrative expenses . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 21.264.0¥599.3
300.8

¥ 0.2
43.4

¥ 63.0 ¥ 662.5
30.2
374.4

85.2
78.7
—

900.1
549.2
—

43.6
35.2
—

93.2 1,036.9
27.1
611.5
(8.4)
(8.4)

6.5

¥350.9¥ 8.4¥ 57.7 ¥ 417.0¥ 10.5(2) ¥569.7
34.3(2) 313.3

¥ 0.6
72.5

¥ 49.6 ¥ 619.9
31.4
417.2

883.0
517.3
—

73.1
40.0
—

81.0 1,037.1
25.7
583.0
(7.8)
(7.8)

¥ (17.4)(2) ¥365.7¥33.1¥ 47.5 ¥ 446.3

¥

525.8
264.0
—

Net business profits . . . . . . . . . . . . . . ¥ 82.6 ¥261.8¥

286.0(2) 552.2
201.4 253.7——

Net business profits (losses) . . . . . . . ¥ 84.6(2) ¥298.5
Fiscal year ended March 31, 2007:
Gross profits:
Net interest income . . . . . . . . . . . . . . ¥262.6 ¥326.6
Net noninterest income . . . . . . . . . . .
53.4 233.3

Total
GlobalRetailGroup44.8(2)
62.2
—

4.6
98.0

¥593.8
384.7

¥ 1.2
61.0

¥ 45.6 ¥ 640.6
19.1
464.8

559.9
245.2
—

102.6
82.5
—

978.5
527.0
—

62.2
43.4
—

64.7 1,105.4
18.1
588.5
(11.5)(11.5)Net business profits . . . . . . . . . . . . . . ¥116.7 ¥314.7¥ 20.1¥451.5¥18.8¥ 35.1 ¥ 505.4

Total gross profits . . . . . . . . . . .
General and administrative expenses . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . .

316.0
199.3
—

Notes:(1) Figures for Mizuho Bank include those of its revitalization subsidiary before such subsidiary was mergedwith Mizuho Bank in October 2005.
(2) Figures for the fiscal year ended March 31, 2006 were revised from those in our registration statement on
Form 20-F filed on October 19, 2006 due to a change in our gross profit allocation rule which we began to
apply from the fiscal year ended March 31, 2007.
Fiscal Year Ended March 31, 2007 Compared with Fiscal Year Ended March 31, 2006
Gross profits for Mizuho Bank increased by ¥95.5 billion, or 10.8%, from the previous fiscal year to ¥978.5billion in the fiscal year ended March 31, 2007. This increase was due to increases in gross profits of ¥30.0
billion from retail banking and ¥7.7 billion from corporate banking, which reflect an improvement in the
profitability of deposits, increased fees from sales of investment trusts and individual annuities and increased
income related to foreign exchange and derivatives products, in addition to an increase of ¥57.8 billion fromtrading and others which was due mainly to the realization of ¥75.4 billion in unrealized losses upon sales ofbonds in the fiscal year ended March 31, 2006 in connection with the restructuring of our overall bond portfolio.
75General and administrative expenses for Mizuho Bank increased by ¥9.7 billion, or 1.9%, from the previous
fiscal year to ¥527.0 billion due mainly to increased expenses incurred in connection with our efforts to growfuture gross profits relating to the retail banking business through refurbishment of branches, increases inpersonnel and other strategic expenses.
Net business profits for Mizuho Investors Securities decreased by ¥14.3 billion, or 43.2%, from the previous
fiscal year to ¥18.8 billion due mainly to a significant decrease in fee income from its stock brokerage business,due primarily to a relatively stagnant stock trading environment compared to the previous fiscal year, and anincrease in administrative expenses.
As a result mainly of the foregoing, net business profits for the Global Retail Group for the fiscal year ended
March 31, 2007 increased by ¥59.1 billion from the previous fiscal year to ¥505.4 billion.
Fiscal Year Ended March 31, 2006 Compared with Fiscal Year Ended March 31, 2005
Gross profits for Mizuho Bank decreased by ¥17.1 billion, or 1.8%, from the previous fiscal year to ¥883.0
billion in the fiscal year ended March 31, 2006. The decrease was due to a ¥29.7 billion decline in net noninterest
income from trading and others as a result of the realization of ¥75.4 billion in unrealized losses upon sales ofbonds in the fiscal year ended March 31, 2006 in connection with the restructuring of our overall bond portfoliothat we implemented in light of rising interest rates offset in part by an increase in income from sales ofderivatives and other financial instruments to corporate customers. In addition, gross profits from retail banking
declined by ¥3.1 billion. This was due to the effect of a gain of ¥15.9 billion recorded in net noninterest incomein the fiscal year ended March 31, 2005 related to the securitization of a portion of our mortgage loan portfolio
offset in part by an increase in net noninterest income as a result of increased sales of investment trusts, annuities
and other financial products. These effects were offset in part by an increase in gross profits of ¥26.4 billion from
corporate banking, which reflects an increase in net noninterest income of ¥46.1 billion due mainly to significant
increases in fees received in connection with our syndicated loan arrangements and structured finance andadvisory service businesses and the sale of foreign exchange and derivatives products offset in part by a decline
in net interest income of ¥19.7 billion due mainly to a decline in domestic average loan interest rate spread.
General and administrative expenses for Mizuho Bank decreased by ¥31.9 billion, or 5.8%, from theprevious fiscal year to ¥517.3 billion due mainly to our ongoing efforts to enhance cost efficiency offset in partby increased expenses incurred in connection with our efforts to grow future gross profits, particularly thoserelating to the retail banking business.
Net business profits for Mizuho Investors Securities increased by ¥24.7 billion, or 294.0%, from theprevious fiscal year to ¥33.1 billion due mainly to an increase in sales of structured debt products and an increase
in income from its underwriting business, both reflecting enhanced business collaboration with Mizuho Bank.

76

Global Asset & Wealth Management Group Financial Results
The following table shows gross profits, general and administrative expenses (excluding non-recurring
expenses) and net business profits for the Global Asset & Wealth Management Group for the fiscal years ended
March 31, 2005, 2006 and 2007:
Mizuho Trust &Banking(1)Others(in billions of yen)

Total Global
Asset & WealthManagement
Group

Fiscal year ended March 31, 2005:
Gross profits:
Net interest income (expense) . . . . . . . . . . . . . . . . . . . .
Net noninterest income . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 41.6106.7¥ (0.0)38.0¥ 41.6
144.7

Total gross profits . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

148.3
71.4
—

38.0
28.8
(3.7)

186.3
100.2
(3.7)

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

¥ 76.9¥5.5¥ 82.4

Fiscal year ended March 31, 2006:
Gross profits:
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net noninterest income . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 45.7
120.6

¥

0.4
42.0

¥ 46.1
162.6

Total gross profits . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

166.3
77.9
—

42.4
32.5
(1.2)

208.7
110.4
(1.2)

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

¥ 88.4¥

8.7¥ 97.1

Fiscal year ended March 31, 2007:
Gross profits:
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net noninterest income . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 52.2
121.7

¥

1.6
48.1

¥ 53.8
169.8

Total gross profits . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173.9
87.8
—

49.7
38.4
(1.2)

223.6
126.2
(1.2)

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

¥ 86.1¥ 10.1¥ 96.2Note:(1) Figures for Mizuho Trust & Banking include those of its revitalization subsidiary before such subsidiary
was merged with Mizuho Trust & Banking in October 2005.
Fiscal Year Ended March 31, 2007 Compared with Fiscal Year Ended March 31, 2006
Gross profits of Mizuho Trust & Banking for the fiscal year ended March 31, 2007 increased by ¥7.6
billion, or 4.6%, from the previous fiscal year to ¥173.9 billion. The increase was due mainly to the steady
growth in income from trust and asset management businesses, including real estate and asset finance businesses.
General and administrative expenses increased by ¥9.9 billion, or 12.7%, from the previous fiscal year to¥87.8 billion due mainly to a temporary increase in amortization expenses related to the purchase of computer
software by Mizuho Trust & Banking at the end of the previous fiscal year.
As a result mainly of the foregoing, net business profits for the Global Asset & Wealth Management Groupdecreased by ¥0.9 billion compared to the previous fiscal year to ¥96.2 billion.
77

Fiscal Year Ended March 31, 2006 Compared with Fiscal Year Ended March 31, 2005
Net business profits of Mizuho Trust & Banking for the fiscal year ended March 31, 2006 increased by¥18.0 billion, or 12.1%, from the previous fiscal year to ¥166.3 billion. After excluding the effects of a one-time
gain of ¥11.5 billion from the sale of all loan assets related to loan trusts in connection with the cessation of sales
activities for loan trust products and the one-time gain of ¥2.1 billion from the change in accounting standard
related to the recording of accrued but uncollected trust fees under Japanese GAAP, the remaining increase of¥4.4 billion was due mainly to an increase in net noninterest income as a result of growth in our real estate,
pension and asset management businesses offset in part by the realization of ¥4.6 billion in unrealized losses
upon sales of bonds in connection with the restructuring of our overall bond portfolio that we implemented inlight of rising interest rates.
General and administrative expenses increased by ¥6.5 billion, or 9.1%, compared to the previous fiscal yearto ¥77.9 billion as a result mainly of an increase in strategic expenses, such as increases in personnel in strategic
business areas and the promotion of business alliances with third parties.
As a result of the foregoing, net business profits for Mizuho Trust & Banking increased by ¥11.5 billion, or
14.9%, compared to the previous fiscal year to ¥88.4 billion. After excluding the effects of the one-time gains
described above, net business profits declined by ¥2.1 billion.
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

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

Total

Fiscal year ended March 31, 2005:
Total revenue(1) . . . . . . . . . . . . . . . . . . .
Total expenses(2) . . . . . . . . . . . . . . . . . .

¥2,616.6
1,667.7

¥

323.0
155.7

¥

188.5
149.9

¥

87.0
39.4

¥

3,215.1
2,012.7

Income before income tax expense . . .

¥

948.9

¥

167.3

¥

38.6

¥

47.6

¥

1,202.4

Net income . . . . . . . . . . . . . . . . . .

¥

844.1

¥

157.4

¥

34.8

¥

41.8

¥

1,078.1

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

¥118,471.3¥11,221.0¥ 6,386.2¥3,530.0¥139,608.5

Fiscal year ended March 31, 2006:
Total revenue(1) . . . . . . . . . . . . . . . . . . .
Total expenses(2) . . . . . . . . . . . . . . . . . .

¥1,881.4
1,474.7

¥

631.6
369.8

¥

327.8
296.9

¥ 112.2
100.1¥

2,953.0
2,241.5

Income before income tax expense . . .

¥

406.7

¥

261.8

¥

30.9

¥

12.1

¥

711.5

Net income . . . . . . . . . . . . . . . . . .

¥

808.5

¥

247.7

¥

26.0

¥

3.5

¥

1,085.7

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

¥119,543.4¥12,504.9¥ 9,175.9¥4,298.2¥145,522.4

Fiscal year ended March 31, 2007:
Total revenue(1) . . . . . . . . . . . . . . . . . . .
Total expenses(2) . . . . . . . . . . . . . . . . . .

¥2,249.5
1,854.9

¥

843.0
641.5

¥

495.4
387.5

¥ 247.4
164.3¥

3,835.3
3,048.2

Income before income tax expense . . .

¥

394.6

¥

201.5

¥

107.9

¥

83.1

¥

787.1

Net income . . . . . . . . . . . . . . . . . .

¥

254.3

¥

192.6

¥

104.8

¥

72.2

¥

623.9

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

¥111,842.6
78¥17,390.3¥13,003.3¥5,145.1¥147,381.3

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.
Fiscal year ended March 31, 2007 compared to fiscal year ended March 31, 2006
In the fiscal year ended March 31, 2007, 40.7% of our net income was derived from Japan, 30.9% from theAmericas, 16.8% from Europe and 11.6% from Asia/Oceania, excluding Japan, and others. At March 31, 2007,
75.9% of total assets were allocated to Japan, 11.8% to the Americas, 8.8% to Europe and 3.5% from Asia/
Oceania, excluding Japan, and others.
Total revenue in Japan increased by ¥368.1 billion from the previous fiscal year due primarily to theincrease in trading account gains–net, as a result of the gain related to changes in the fair value of instruments
used to hedge market risks, mainly interest rate risk, that are not eligible for hedge accounting under U.S. GAAP,and the increase in interest income, due mainly to a rise in average yield on domestic interest earning assets,
partially offset by the decrease in investment gains–net, due mainly to impairment losses on preferred stock
issued by a large non-bank financial company. Total expenses increased by ¥380.2 billion due primarily to theincrease in provision for loan losses, reflecting the downgrade in credit rating of borrowers including the samenon-bank financial company. Income tax expense in the fiscal year ended March 31, 2007 was ¥140.3 billion
compared to a benefit of ¥401.8 billion in the previous fiscal year. As a result, net income in Japan decreased by¥554.2 billion. Total assets in Japan decreased by ¥7,700.8 billion due primarily to decreases in investments,
mainly Japanese government bonds, and loans.
In the Americas, total revenue increased by ¥211.4 billion due primarily to an increase in interest income, as aresult of an increase in average yield reflecting a general increase in U.S. dollar interest rate levels, and an increasein average balances of interest-earning assets, partially offset by a decrease in trading accounting gains–net. Total
expenses increased by ¥271.7 billion due primarily to an increase in interest expense, due mainly to a rise in averageinterest rate reflecting a general increase in U.S. dollar interest rate levels, and an increase in average balances ofinterest-bearing liabilities. As a result, net income in the Americas decreased by ¥55.1 billion. Total assets in theAmericas increased by ¥4,885.4 billion due primarily to an increase in receivables under resale agreements, and anincrease in investments resulting from our efforts to increase foreign assets.
In Europe, total revenue increased by ¥167.6 billion due primarily to an increase in interest income, andtotal expenses increased by ¥90.6 billion due primarily to an increase in interest expenses, partially offset by adecrease in provision for loan losses. As a result, net income in Europe increased by ¥78.8 billion. Total assets in
Europe increased by ¥3,827.4 billion due primarily to an increase in investments, as a result of our efforts toincrease foreign assets, and receivables under resale agreements.
Total revenue in Asia/Oceania excluding Japan, and others increased by ¥135.2 billion due primarily toincreases in interest income and trading account gains–net. Total expenses increased by ¥64.2 billion due mainly
to an increase in interest expenses. As a result, net income in Asia/Oceania excluding Japan, and others increasedby ¥68.7 billion. Total assets in Asia/Oceania excluding Japan, and others increased by ¥846.9 billion due
primarily to an increase in loans and investments, as a result of our efforts to increase foreign assets.
Fiscal year ended March 31, 2006 compared to fiscal year ended March 31, 2005
In the fiscal year ended March 31, 2006, 74.5% of our net income was derived from Japan, 22.8% from theAmericas, 2.4% from Europe and 0.3% from Asia/Oceania, excluding Japan, and others. At March 31, 2006,
82.1% of total assets were allocated to Japan, 8.6% to the Americas, 6.3% to Europe and 3.0% from Asia/
Oceania, excluding Japan, and others.
Total revenue in Japan decreased by ¥735.2 billion from the previous fiscal year due primarily to thedecrease in investment gains–net, as a result of the realization of unrealized losses upon sales of bonds in79

connection with the restructuring of our bond portfolio in light of rising interest rates, and the decrease in trading
account gains–net, as a result of the losses related to changes in the fair value of derivative instruments used tohedge market risks that are not eligible for hedge accounting under U.S. GAAP. Total expenses decreased by¥193.0 billion as a result mainly of a significant improvement in provision for loan losses. Income tax in thefiscal year ended March 31, 2006 was a benefit of ¥401.8 billion compared to an expense of ¥104.8 billion in theprevious fiscal year. As a result, net income in Japan decreased by ¥35.6 billion. Total assets in Japan increasedby ¥1,072.1 billion due primarily to increases in investments and loans (net of allowance) offset in part by adecrease in cash and due from banks.
In the Americas, total revenue increased by ¥308.6 billion due primarily to an increase in interest income, asa result of an increase in average yield, reflecting a general increase in U.S. dollar interest rate levels, and anincrease in average balances of interest-earning assets. Total expenses increased by ¥214.1 billion due primarily
to an increase in interest expense. As a result, net income in the Americas increased by ¥90.3 billion. Total assets
in the Americas increased by ¥1,283.9 billion due primarily to an increase in loans, resulting from our efforts toincrease foreign loan assets and the depreciation of the yen against the U.S. dollar, and an increase in receivables
under resale agreements.
In Europe, total revenue increased by ¥139.3 billion due primarily to an increase in interest income, andtotal expenses increased by ¥147.0 billion due primarily to increases in interest expenses and provision for loan
losses, reflecting mainly the increase in loan balance. As a result, net income in Europe decreased by ¥8.8 billion.
Total assets in Europe increased by ¥2,789.7 billion due primarily to increases in investments and loans, as aresult of our efforts to increase foreign assets, and receivables under resale agreements.
Total revenue in Asia/Oceania excluding Japan, and others increased by ¥25.2 billion due primarily to anincrease in interest income offset in part by a decrease in foreign exchange gains. Total expenses increased by¥60.7 billion, due mainly to increases in interest expenses and provision for loans losses, primarily as a result of
the increase in loan balance. As a result, net income in Asia/Oceania excluding Japan, and others decreased by¥38.3 billion. Total assets in Asia/Oceania excluding Japan, and others increased by ¥768.2 billion due primarily
to an increase in loans, as a result of our efforts to increase foreign loan assets and the depreciation of the yen
mainly against the U.S. dollar.
Financial Condition
AssetsOur assets as of March 31, 2006 and 2007 were as follows:
Fiscal years ended March 31,
2006
2007
(in billions of yen)

Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . .
Call loans and funds sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under resale agreements . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under securities borrowing transactions . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans, net of allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due from customers on acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80¥

3,459.7 ¥ 3,075.9 ¥1,666.5
1,052.3
701.8
309.7
5,979.7
9,430.4
8,643.6
8,624.2
12,392.2
13,950.3
38,840.8
38,001.7
68,710.9
69,182.9(812.3)(946.2)
67,898.6
68,236.7
839.9
847.5
42.7
57.7
335.9
440.5
39.6
39.6
996.5
618.7
3,684.9
2,696.1¥145,522.4 ¥147,381.3 ¥Increase(decrease)(383.8)(614.2)(392.1)3,450.7(19.4)
1,558.1(839.1)472.0(133.9)
338.1
7.6
15.0
104.6
—
(377.8)(988.8)1,858.9

Total assets increased by ¥1,858.9 billion from the end of the previous fiscal year to ¥147,381.3 billion as ofMarch 31, 2007. This increase was due primarily to an increase of ¥3,450.7 billion in receivables under resaleagreements and an increase of ¥1,558.1 billion in trading account assets offset in part by a decrease of ¥988.8
billion in other assets, due mainly to a decrease in accounts receivable from brokers, dealers and customers forsecurities transactions.
Loans
Loans Outstanding
The following table shows our loans outstanding as of March 31, 2006 and 2007 based on the loanclassifications designated by the Bank of Japan for regulatory reporting purposes:
As of March 31,
2006

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . .
Construction . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . .
Services (1) . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . .
Government and public institutions (1) . . . .
Other industries (1) . . . . . . . . . . . . . . . . . . .
Individuals: . . . . . . . . . . . . . . . . . . . . . . . .
Mortgage loans . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . .

2007
Increase (decrease)(in billions of yen, except percentages)¥ 7,792.7
1,563.5
7,046.7
6,308.2
6,930.0
2,789.5
6,540.9
4,574.1
5,184.3
11,972.2
10,655.1
1,317.1

11.33% ¥ 7,662.0
2.27
1,502.4
10.24
6,647.1
9.17
6,120.1
10.08
6,356.6
4.06
2,594.6
9.51
4,286.6
6.65
6,099.4
7.54
5,451.8
17.41
12,363.6
15.49
11,025.1
1.92
1,338.5

11.06% ¥ (130.7) (0.27)%
2.17(61.1) (0.10)
9.60(399.6) (0.64)
8.83(188.1) (0.34)
9.18(573.4) (0.90)
3.75(194.9) (0.31)
6.19(2,254.3) (3.32)
8.80
1,525.3 2.15
7.86
267.5 0.32
17.85
391.4 0.44
15.92
370.0 0.43
1.93
21.4 0.01

Total domestic . . . . . . . . . . . . . .
Foreign:
Commercial and industrial . . . . . . . . . . . .
Banks and other financial institutions . . . .
Government and public institutions . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60,702.1

88.26

59,084.2

85.29(1,617.9) (2.97)

6,104.6
1,437.2
331.0
205.4

8.87
2.09
0.48
0.30

7,963.6
1,675.5
366.3
184.9

11.50
2.42
0.53
0.26

1,859.0 2.63
238.3 0.33
35.3 0.05(20.5) (0.04)

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

8,078.2

11.74

10,190.3

14.71

2,112.1

2.97

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

68,780.3

100.00%69,274.5

100.00%494.2—(69.4)(91.6)

Total loans before allowance for loan losses . . .

¥68,710.9¥69,182.9(22.2)
¥

472.0

Note:
(1) Figures for the three loan classifications as of March 31, 2006 were reclassified to conform to thepresentation of the fiscal year ended March 31, 2007.
Total loans before allowance for loan losses increased by ¥472.0 billion from the end of the previous fiscal
year to ¥69,182.9 billion as of March 31, 2007. Domestic loans decreased by ¥1,617.9 billion to ¥59,084.2 billion
due mainly to a decrease in loans to banks and other financial institutions attributable mainly to decreased fiscalyear-end funding needs of borrowers offset in part by an increase in loans to government and public institutions
attributable mainly to loans to the Japanese government. Domestic loans decreased in many of the industries due
primarily to lack of funding needs by corporate borrowers. Loans to individuals increased due primarily to ourstrategic effort to increase such loans.
81Loans to foreign borrowers increased by ¥2,112.1 billion from the end of the previous fiscal year to¥10,190.3 billion at March 31, 2007. The increase in foreign loans was due to an increase in loans to commercial
and industrial borrowers, especially loans to non-Japanese borrowers, as a result of our effort to increase foreign
loan assets.
Within our loan portfolio, loans to domestic borrowers decreased from 88.26% to 85.29% while loans toforeign borrowers increased from 11.74% to 14.71%.
Impaired Loans
Japanese banks are required to categorize obligors into the groups listed below based on their financial
condition and other factors and then to classify loans and off-balance-sheet instruments against obligors, taking
into consideration the risk of collection and risk of impairment. We refer to this categorization and classification
process as the self-assessment procedures which are conducted in conjunction with our credit rating system.
Through the self-assessment procedures, we categorize obligors into the following categories:•

normal: Obligors for which business conditions are favorable and are deemed not to have any particular
problems in terms of their financial position.

•

watch: Obligors that require observation going forward because of either concerns regarding theirfinancial position or weak or unstable business conditions.

•special attention: Among watch obligors, those having difficulty meeting loan conditions, such as
reduced or suspended interest payments, or those in default of payment obligations such as failure to
make principal or interest payments beyond a specified period.

•

intensive control: Obligors that are not yet bankrupt but are in financial difficulties and are deemed
likely to become bankrupt in the future because of failure to make progress in implementing their
management improvement plans or other measures (including obligors that are receiving ongoingsupport from financial institutions).

•

substantially bankrupt: Obligors that have not yet become legally or formally bankrupt but are
effectively insolvent because they are in serious financial difficulties and are deemed to be not capableof restructuring.

•bankrupt: Obligors that have become legally or formally bankrupt.

We consider both loans that are subject to SFAS No.114, “Accounting by Creditors for Impairment of a
Loan—an amendment of FASB statement No.5 and 15” and small balance, homogeneous 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. Among other things, restructured loans under SFAS No.15,“Accounting by Debtors and Creditors for Troubled Debt Restructuring” (“SFAS No.15”) and loans that are 90
days or more delinquent are generally considered to be impaired. We determine loans to special attention,
intensive control, substantially bankrupt and bankrupt obligors as impaired loans in connection with ourconsideration of collectibility mentioned above. All of our impaired loans are designated as nonaccrual loans.
See “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Credit Risk Management” fordescriptions of our self-assessment procedures and our internal credit rating system.
We endeavor to remove impaired loans from our balance sheet within three years of their being so
categorized through methods such as collection, charge-offs, disposal and improving the borrowers’ credit rating
through restructuring efforts.

82

The following table shows our impaired loans as of March 31, 2006 and 2007 based on classifications bydomicile and industry segment:
As of March 31,
2006

Impairedloans

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

¥ 106.1
53.2
188.5
140.0
202.8
315.8

2007
Increase (decrease)(in billions of yen, except percentages)
Ratio to grossRatio to grossRatio to grosstotal loans to
Impaired
total loans to
Impaired total loans toindustryloans
industryloans
industry

1.36% ¥ 96.8
3.40
71.6
2.67
119.0
2.22
167.6
2.93
216.7
11.32
371.3

1.26%
4.76
1.79
2.74
3.41
14.31

4.9
8.6
139.7

0.07
0.09
1.17

292.8
8.6
137.2

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

1,159.6
69.8

1.91
0.86

1,481.6
47.3

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

¥1,229.4

1.79% ¥1,528.9

¥

(9.3)
18.4
(69.5)
27.6
13.9
55.5

(0.10)%
1.36(0.88)
0.52
0.48
2.99

6.83
0.07
1.11

287.9
(0.0)
(2.5)

6.76
(0.02)(0.06)

2.51
0.46

322.0
(22.5)

0.60(0.40)

2.21%¥ 299.5

0.42%

Impaired loans increased by ¥299.5 billion, or 24.4%, from the end of the previous fiscal year to ¥1,528.9
billion as of March 31, 2007 due primarily to an increase in banks and other financial institutions, as a result of
the downgrade in the credit rating of a large non-bank financial company borrower, and an increase intransportation and services, as a result of the downgrade in the credit rating of another large borrower and its
subsidiaries, offset in part by a decrease in real estate due primarily to improvements in the business performanceof obligors in the real estate industry and a decrease in the overall balance of loans to this industry.
The percentage of impaired loans within gross total loans increased from 1.79% as of March 31, 2006 to
2.21% as of March 31, 2007. The percentage of impaired loans net of allowance to gross total loans net ofallowance also increased from 0.61% as of March 31, 2006 to 0.85% as of March 31, 2007.
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, homogenous 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).

83

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
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, 2006 and 2007:
As of March 31,
Increase
2006
2007(decrease)(in billions of yen, except percentages)

Allowance for loan losses on impaired loans (A) . . . . . . . . . . . . . . . . . . .
Allowance for loan losses on other loans (B) . . . . . . . . . . . . . . . . . . . . . .
Total allowance for loan losses (C) . . . . . . . . . . . . . . . . . . . . . . . . . .

¥Impaired loans requiring an allowance for loan losses (D) . . . . . . . . . . . .
Impaired loans not requiring an allowance for loan losses (E) . . . . . . . . .
Other loans (F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross total loans (G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage 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 other loans against thebalance of other loans (B)/(F)x100 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage of total allowance for loan losses against gross total loans(C)/(G)x100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

331.5
480.8
812.3

¥

602.1
344.0
946.1

¥ 270.6(136.8)133.8

1,024.9204.5
67,550.9

1,403.8
125.1
67,745.6

378.9(79.4)
194.7

68,780.3

69,274.5

494.2

32.34%

42.89%

10.55%

0.71

0.51(0.20)

1.18

1.37

0.19

Allowance for loan losses increased by ¥133.8 billion from the end of the previous fiscal year to ¥946.1
billion as of March 31, 2007. Allowance for loan losses on impaired loans increased by ¥270.6 billion due
primarily to the downgrade in the credit rating of a large non-bank financial company and a large borrower andits subsidiaries. This increase was offset in part by a decrease in allowance for loan losses on other loans of¥136.8 billion, which was due mainly to the loans to the large borrower and its subsidiaries becoming impairedloans. The percentage of total allowance for loan losses against gross total loans increased by 0.19% to 1.37%,
and the percentage of allowance for loan losses on impaired loans against the balance of impaired loans requiring
84

an allowance increased by 10.55% to 42.89% due mainly to the downgrade of the non-bank financial company
and, to a lesser extent, the above large borrower and its subsidiaries. The percentage of allowance for loan losses
on other loans against the balance of other loans decreased by 0.20% to 0.51% due to improvements in the credit
ratings of borrowers as general economic conditions in Japan improved.
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, 2006 and 2007:
Fiscal years ended March 31,
2006
2007
(in billions of yen)

Increase(decrease)

Allowance for loan losses as beginning of fiscal year . . . . . . . . . . . . . . . .
Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charge-offs:
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,207.1(157.7)¥812.3182.1¥(394.8)
339.8

38.3
11.1
85.2
28.6
44.7
5.5
0.6
12.3
63.7

11.1
2.7
4.7
18.0
25.7
0.3
6.0
5.5
18.0

(27.2)(8.4)(80.5)(10.6)(19.0)
(5.2)
5.4
(6.8)
(45.7)

Total domestic charge-offs . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

290.0
15.7

92.0
18.6

(198.0)2.9

Total charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

305.7

110.6

(195.1)

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

3.6
6.5
21.0
10.2
10.6
0.0
1.0
1.9
6.4

3.3
2.4
3.2
12.4
4.7
0.2
0.2
2.4
3.4

(0.3)
(4.1)
(17.8)
2.2
(5.9)
0.2
(0.8)
0.5
(3.0)

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

61.2
12.7

32.2
25.8

(29.0)
13.1

Total recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

73.9

58.0

(15.9)Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231.8
(5.3)

52.6
4.3

(179.2)
9.6

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 812.3¥946.1¥ 133.8

Note:(1) Others include primarily foreign exchange translation.
We recorded a provision for loan losses of ¥182.1 billion in the fiscal year ended March 31, 2007 compared
to a credit for loan losses of ¥157.7 billion in the fiscal year ended March 31, 2006. The provision in the fiscal
85

year ended March 31, 2007 was due mainly to the downgrade in the credit rating of a large non-bank financial
company and another large borrower and its subsidiaries.
Charge-offs decreased by ¥195.1 billion from the previous fiscal year to ¥110.6 billion for the fiscal year
ended March 31, 2007 due to the improvement in general economic conditions in Japan. Charge-offs of domesticloans decreased by ¥198.0 billion compared to the previous fiscal year to ¥92.0 billion in the fiscal year ended
March 31, 2007. Charge-offs of foreign loans increased by ¥2.9 billion compared to the previous fiscal year to¥18.6 billion in the fiscal year ended March 31, 2007.
Recoveries decreased by ¥15.9 billion from the previous fiscal year to ¥58.0 billion in the fiscal year ended
March 31, 2007, reflecting a decrease in recoveries with respect to domestic loans offset partially by an increase
with respect to foreign loans. In general, recoveries with respect to loans to the industries in which we hadsignificant amounts of impaired loans in recent years accounted for most of the recoveries during the fiscal years
ended March 31, 2006 and 2007.
Investments
The majority of our investments are available-for-sale securities and held-to-maturity securities which at
March 31, 2006 and 2007 were as follows:
As of March 31,
2006

Amortized
cost

Fair
value

Available-for-sale securities:
Debt securities: . . . . . . . . . . ¥30,320.3 ¥30,124.2
Japanese government
bonds . . . . . . . . . . . . . . 19,522.1 19,291.5
Other than Japanese
government bonds . . . . 10,798.2 10,832.7
Equity securities(marketable) . . . . . . . . . .
2,428.8
6,068.6
Total . . . . . . . . . . . . . . . . ¥32,749.1 ¥36,192.8
Held-to-maturity securities:
Debt securities: . . . . . . . . . . ¥ 1,536.2 ¥ 1,520.5
Japanese government
bonds . . . . . . . . . . . . . .
1,168.2
1,163.8
Other than Japanese
government bonds . . . .
368.0
356.7
Total . . . . . . . . . . . . . . . . ¥ 1,536.2 ¥ 1,520.5

2007(in billions of yen)Net
unrealized
gains
Amortized(losses)cost¥ (196.1)

Fair
value

¥29,467.1 ¥29,606.7

Increase (decrease)Netunrealized
gains
Amortized(losses)cost¥ 139.6

Fair
value

Net
unrealized
gains(losses)¥ (853.2) ¥ (517.5)¥335.7(230.6)

14,524.9

14,516.0(8.9)(4,997.2)(4,775.5)

221.7

34.5

14,942.2

15,090.7

148.5

4,144.0

4,258.0

114.0

2,591.1

162.3

6,264.0

3,672.9

195.4

33.1

¥3,443.7

3,639.8¥32,058.2 ¥35,870.7¥3,812.5¥ (690.9) ¥ (322.1)¥368.8¥ (15.7)¥ 1,337.6 ¥ 1,329.4¥¥ (198.6) ¥ (191.1)

¥ 7.5

(4.4)
(11.3)¥ (15.7)

969.1

967.2

368.5

362.2

¥ 1,337.6 ¥ 1,329.4

(8.2)
(1.9)
(6.3)

¥

(8.2)

(199.1)(196.6)

2.5

0.5

5.5

5.0

¥ (198.6) ¥ (191.1)¥ 7.5

Available-for-sale securities decreased by ¥322.1 billion from the end of the previous fiscal year to¥35,870.7 billion at March 31, 2007. This decrease was due primarily to a decrease in Japanese government
bonds, which was a result of the disposition and impairment of these bonds, offset in part by an increase in debt
securities other than Japanese government bonds, primarily foreign government bonds and credit and alternative
investments, reflecting our efforts to diversify risks and expand income sources. Equity securities increased by¥195.4 billion from the end of the previous fiscal year to ¥6,264.0 billion at March 31, 2007 due mainly to thewithdrawal of assets from employee retirement benefit trusts offset in part by a decrease in investment trusts
held. Held-to-maturity securities decreased by ¥198.6 billion from the end of the previous fiscal year to ¥1,337.6
billion at March 31, 2007. This decrease was due primarily to a decrease in Japanese government bonds as thebonds matured during the previous fiscal year. See note 4 to our consolidated financial statements for details ofother investments included within investments.
86

Cash and Due from Banks
Cash and due from banks decreased by ¥383.8 billion from the end of the previous fiscal year to ¥3,075.9
billion at March 31, 2007. The decrease was due to net cash provided by operating activities of ¥310.8 billion
and net cash provided by investing activities of ¥312.2 billion being more than offset by net cash used infinancing activities of ¥1,015.1 billion.
Liabilities
The following table shows our liabilities as of March 31, 2006 and 2007:
As of March 31,
Increase
2006
2007(decrease)(in billions of yen)

Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 82,703.7
Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,586.5
Due to trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,354.9
Call money and funds purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,192.1
Payables under repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,079.6
Payables under securities lending transactions . . . . . . . . . . . . . . . . . . . . . .
7,347.9
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
966.0
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,293.1
Trading account liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,445.2
Bank acceptances outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42.7
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
52.5
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22.7
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
246.8
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,385.0
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,161.7
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥140,880.4¥ 83,751.3
4,723.8
1,135.4
6,924.1
12,821.8
6,100.8933.6
4,283.5
11,310.0
57.7
28.6
16.4
312.7
7,073.9
2,903.4¥ 1,047.6(1,862.7)(219.5)732.0
2,742.2(1,247.1)(32.4)(2,009.6)
864.8
15.0
(23.9)(6.3)
65.9
1,688.9(258.3)¥142,377.0¥ 1,496.6

Total liabilities increased by ¥1,496.6 billion from the end of the previous fiscal year to ¥142,377.0 billion
at March 31, 2007. This increase was due primarily to an increase of ¥1,688.9 billion in long-term debt and anincrease of ¥1,047.6 billion in deposits offset in part by a decrease of ¥1,862.7 billion in debentures. Short-termborrowings, which includes due to trust accounts, call money and funds purchased, payables under repurchaseagreements, payables under securities lending transactions, commercial paper and other short-term borrowings,
decreased by ¥34.4 billion.
Deposits
The following table shows a breakdown of our deposits as of March 31, 2006 and 2007:
As of March 31,
Increase
2006
2007(decrease)(in billions of yen)Domestic:
Non-interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥14,590.7
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,910.0¥13,166.6
61,012.8¥(1,424.1)
102.8

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

75,500.7

74,179.4(1,321.3)

Foreign:
Non-interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

341.2
6,861.8350.6
9,221.3

9.4
2,359.5

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

7,203.0

9,571.9

2,368.9

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

¥82,703.7¥83,751.3¥ 1,047.6

87Deposits increased by ¥1,047.6 billion from the end of the previous fiscal year to ¥83,751.3 billion atMarch 31, 2007. Domestic deposits decreased by ¥1,321.3 billion to ¥74,179.4 billion due to a decline in noninterest-bearing deposits by ¥1,424.1 billion, reflecting increased demand for cash as a result of the general
improvement in business performance of Japanese companies. Foreign deposits increased by ¥2,368.9 billion
from the end of the previous fiscal year to ¥9,571.9 billion due mainly to a significant increase in interest-bearing
deposits as we increased our fund-raising efforts in connection with the increase in foreign investments andloans.
Debentures
Debentures decreased by ¥1,862.7 billion from the end of the previous fiscal year to ¥4,723.8 billion atMarch 31, 2007. In Japan, certain banks are entitled to issue discount and coupon debentures in the domestic
market under applicable banking laws. Mizuho Corporate Bank and Mizuho Bank benefit from such entitlement
originally held by The Industrial Bank of Japan, one of our predecessor banks. While the two bank subsidiaries
have this entitlement through March 2012, we have been reducing our reliance on debentures in recent years andare shifting to other sources of financing, including mainly bonds. See “—Liquidity.”
Long-term Debt
The following table shows a breakdown of long-term debt as of March 31, 2006 and 2007:
As of March 31,
Increase
2006
2007(decrease)(in billions of yen)

Obligations under capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 30.1
Loan participation borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
139.5
Senior borrowings and bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
796.1
Subordinated borrowings and bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,129.1
Borrowings and bonds of variable interest entities . . . . . . . . . . . . . . . . . . . . . . . .
290.2
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥5,385.0

¥

27.3
686.3
1,658.1
4,471.6
230.6

¥

(2.8)
546.8
862.0
342.5
(59.6)¥7,073.9¥1,688.9

Long-term debt increased by ¥1,688.9 billion from the end of the previous fiscal year to ¥7,073.9 billion atMarch 31, 2007. The increase was due mainly to an increase in senior borrowings and bonds, of which we
increased the issue amount to replace debentures as described above, and an increase in loan participation
borrowings as a result of our effort to expand our market-oriented indirect financing model.
Short-term Borrowings
The following table shows a breakdown of our short-term borrowings as of March 31, 2006 and 2007:
As of March 31,
2006
Domestic Foreign
Due to trust accounts . . . . . . . . . . . . . . . . ¥ 1,354.9
Call money and funds purchased, andpayables under repurchase agreements
and securities lending transactions . . . 14,688.0
Commercial paper . . . . . . . . . . . . . . . . . .
799.6
Other short-term borrowings . . . . . . . . . .
6,249.9—
8,931.5
166.4
43.2

Total

2007
(in billions of yen)Domestic Foreign
Total¥ 1,354.9 ¥ 1,135.4
23,619.5
966.0
6,293.1

13,196.0
658.1
4,080.3—
12,650.7
275.5
203.2

Increase (decrease)
Domestic Foreign¥ 1,135.4 ¥ (219.5)
25,846.7933.6
4,283.5

Total—¥ (219.5)(1,492.0) 3,719.2(141.5)109.1(2,169.6)
160.0

2,227.2(32.4)(2,009.6)

Total short-term borrowings . . . . . . . . . . ¥23,092.4 ¥9,141.1 ¥32,233.5 ¥19,069.8 ¥13,129.4 ¥32,199.2 ¥(4,022.6) ¥3,988.3 ¥(34.3)

Short-term borrowings decreased by ¥34.3 billion from the end of the previous fiscal year to ¥32,199.2
billion at March 31, 2007. Domestic short-term borrowings decreased by ¥4,022.6 billion as domestic assets such
as Japanese government bonds decreased, while foreign short-term borrowings, especially payables under
repurchase agreements, increased by ¥3,988.3 billion due mainly to increased overseas funding corresponding
with increases in overseas investments and loans.
88Shareholders’ Equity
The following table shows a breakdown of shareholders’ equity as of March 31, 2006 and 2007:
As of March 31,
Increase
2006
2007(decrease)(in billions of yen)Preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income, net of tax . . . . . . . . . . . . . . . . . . . .
Treasury stock, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,580.4 ¥ 980.4 ¥(600.0)
3,547.7
3,532.5(15.2)(2,647.8) (2,105.7)
542.1
1,912.2
2,287.8
375.6(46.8)(32.3)
14.5¥ 4,345.7¥ 4,662.7¥ 317.0

Shareholders’ equity increased by ¥317.0 billion from the end of the previous fiscal year to ¥4,662.7 billion.
Preferred stock decreased by ¥600.0 billion from the end of the previous fiscal year to ¥980.4 billion atMarch 31, 2006 due to the cancellation of preferred stock repurchased from the Resolution and Collection
Corporation in July 2006. As a result of this repurchase, we completed the repayment of public funds received
through the Resolution and Collection Corporation’s purchases of our preferred stock.
Common stock decreased by ¥15.2 billion from the end of the previous fiscal year to ¥3,532.5 billion atMarch 31, 2007 primarily as a result of the cancellation of common stock which was repurchased from oursubsidiary, Mizuho Financial Strategy, in July 2006. See “—Overview—Capital Improvements.”
Accumulated deficit decreased by ¥542.1 billion from the end of the previous fiscal year to ¥2,105.7 billion.
This decrease was due primarily to net income of ¥623.9 billion for the fiscal year ended March 31, 2007 offset
in part by dividend payments of ¥79.8 billion.
Accumulated other comprehensive income, net of tax, increased by ¥375.6 billion from the end of theprevious fiscal year to ¥2,287.8 billion at March 31, 2007 due primarily to an increase in unrealized net gains onavailable-for-sale securities of ¥218.2 billion as well as adjustments of ¥130.9 billion related to the initial
application of SFAS 158 to pension liabilities.
Treasury stock decreased by ¥14.5 billion from ¥46.8 billion at the end of the previous fiscal year to ¥32.3
billion at March 31, 2007 due primarily to the cancellation of common stock which was held by our subsidiary as
mentioned above.
Liquidity
We continuously endeavor to enhance the management of our liquidity profile and strengthen our capitalbase to meet our customers’ loan requirements and deposit withdrawals and respond to unforeseen situations
such as adverse movements in stock, foreign currency, interest rate and other markets or changes in generaldomestic or international conditions.
Deposits and the issuance of debentures, based on our broad customer base and brand recognition in Japan,
have been our primary sources of liquidity. Our total deposits and debentures decreased by ¥815.1 billion, or
0.9%, from the end of the previous fiscal year to ¥88,475.1 billion as of March 31, 2007. As shown in thefollowing table, our average balance of deposits and debentures combined for the fiscal year ended March 31,
2007 exceeded our average balance of loans for the same period by ¥20,259.5 billion. We invested the excess
portion primarily in marketable securities and other high-liquidity assets.
89

Average balance for the fiscal year ended March 31, 2007
(in billions of yen)

Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥68,042.9

Deposits . . . . . . . . . . . . . . . . . . . . . . . . . .
Debentures . . . . . . . . . . . . . . . . . . . . . . . .

¥82,673.2
5,629.2

We will no longer be able to issue debentures beginning April 2012 due to applicable regulations. Mizuho
Corporate Bank ceased issuing debentures to institutional investors in April 2006 and started to issue ¥150.0
billion in straight bonds each quarter, or ¥600.0 billion each year as a replacement for such debentures. We alsoceased all new issuances of debentures by Mizuho Bank through its retail branch network in March 2007. We
believe the balance of our debentures will decrease significantly in the following years as a result.
Secondary sources of liquidity include short-term borrowings such as call money and funds purchased andcommercial paper. We also issue long-term debt, including both senior and subordinated debt, as additionalsources for liquidity. We utilize short-term borrowings to diversify our funding sources and to manage ourfunding costs. We raise long-term debt mainly for purposes of enhancing our capital adequacy ratios. We believe
we are able to access such sources of liquidity 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 asof July 31, 2007:

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

LongTerm

As of July 31, 2007
S&P
Short- Fundamental LongTermstrength
Term

Moody’s
Short- Financial
Term
strength

A+
A+
A+

A-1
A-1
A-1

P-1
P-1
P-1

B
B
B

Aa2
Aa2
Aa2

C
C
C

We source our funding in foreign currencies primarily from foreign governments, financial institutions, andinstitutional investors, through short-term and long-term financing, under terms and pricing commensurate withour credit ratings above. In the event of future declines in our credit quality or that of Japan 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, we hold foreign debt securities,
maintain credit lines and swap facilities denominated in foreign currencies and pledge collateral to the U.S.
Federal Reserve Bank to support future credit extensions.
We maintain management and control systems to support our ability to access liquidity on a stable and costeffective basis. For a description of our management of liquidity risk, see “Item 11.Quantitative and Qualitative
Disclosures about Market Risk—Market and Liquidity Risk Management.”
Capital Adequacy
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 Law 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 our consolidated financial statements.
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, new guidelines were implemented by the Financial
Services Agency to comply with the new 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.
90Under the first pillar, the capital ratio is calculated by dividing regulatory capital by risk-weighted assets.
With respect to the calculation of risk-weighted assets, Mizuho Financial Group adopted the foundation internalratings-based approach (“FIRB approach”). Under the FIRB 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 of default and loss given default. Probability of default is derived by Mizuho Financial
Group’s own internal credit experience. In addition to credit risk, banks are required to measure and apply capitalcharges 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 withrespect to regulatory capital requirements, is the risk of loss resulting from inadequate or failed internal
processes, people and systems or from external events. Mizuho Financial Group selected the standardized
approach for the calculation of operational risk capital charge, which calculates operational risk by dividing its
activities into eight business lines and multiplying gross income of each of those business lines by the applicablefactor assigned to each of the business lines.
With regard to risk-based capital, these guidelines are consistent with the original BIS framework, orBasel I, in requiring a target minimum standard capital adequacy ratio of 8%, at least half of which must consistof core capital, on both a consolidated and non-consolidated basis for banks with international operations, such as
Mizuho Corporate Bank and Mizuho 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 three tiers: core capital (Tier 1 capital); supplementary capital (Tier 2 capital); and juniorsupplementary capital (Tier 3 capital). Tier 1 capital generally consists of shareholders’ equity less any recorded
goodwill and consolidation adjustment accounts. Tier 2 capital generally consists of the following components:•

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;•

45% of each of the unrealized gains on valuation of certain securities classified as “other securities”
under Japanese GAAP which is similar to available-for-sale securities under U.S. GAAP, and theunrealized appreciation in the value of land;•

the balance of subordinated perpetual debt; and•the balance of subordinated term debt with an original maturity of over five years and preferred termshares up to 50% of Tier 1 capital.

Tier 2 capital may be included in a bank’s risk-based capital up to the amount equivalent to Tier 1 capital,
less Tier 3 capital if market risk is taken into account in the capital adequacy ratio calculation. Tier 3 capitalconsists of the balance of subordinated term debt with original maturity of at least two years. Tier 3 capital may
be included in total risk-based capital subject to certain conditions, depending on the measure for market risk andthe amount of Tier 1 capital.
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.
Japanese banks with only domestic operations, such as Mizuho Bank, are subject to Japanese capital
adequacy requirements that are similar to those discussed above, except that domestic banks are required tomaintain a minimum capital adequacy ratio of 4%, at least half of which must consist of Tier 1 capital, on both aconsolidated and non-consolidated basis.
91

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 our financial
statements.
Consolidated Capital Adequacy Ratios
Our capital adequacy ratios as of March 31, 2006 and 2007 calculated in accordance with Japanese GAAP
and guidelines established by the Ministry of Finance and the Financial Services Agency are as set forth in thefollowing table:
Basel I basis
Basel II basis
As of March 31,
As
of March 31,
Increase
2006
2007(decrease)2007(in billions of yen, except percentages)

Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 2 capital included as qualifying capital . . . . . . . . . . .
Deductions for total risk-based capital . . . . . . . . . . . . . . .

¥ 4,555.9
4,554.1(116.7)¥ 4,945.7
4,461.9(122.0)¥ 389.8(92.2)(5.3)¥ 4,933.6
4,092.6(184.8)

Total risk-based capital . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 8,993.3¥ 9,285.6¥ 292.3¥ 8,841.4

Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥77,534.5¥80,118.4¥2,583.9
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.87%
6.17%
0.30%
Required Tier 1 ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.00
4.00
—
Capital adequacy ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11.59
11.58
(0.01)
Required capital adequacy ratio . . . . . . . . . . . . . . . . . . . .
8.00
8.00
—

¥70,795.5
6.96%
4.00
12.48
8.00

Note: Percentages in the above table are truncated.
Our capital adequacy ratio and our Tier 1 capital ratio calculated on a Basel II basis as of March 31, 2007
were 12.48% and 6.96%, respectively. We believe that we were in compliance with all capital adequacy
requirements to which we were subject as of March 31, 2007.
On a Basel I basis, our capital adequacy ratio as of March 31, 2007 was 11.58%, a decline of 0.01%
compared to March 31, 2006, and our Tier 1 capital ratio as of March 31, 2007 was 6.17%, a rise of 0.30%
compared to March 31, 2006. The rise of our Tier 1 capital ratio during the fiscal year ended March 31, 2007 wasa result of the increase in Tier 1 capital outweighing the increase in risk-weighted assets. The increase in the total
risk-based capital was not as large as the increase in risk weighted assets, which resulted in the decline of ourcapital adequacy ratio.

92Capital
The following table shows a breakdown of our total risk-based capital as of March 31, 2006 and 2007:
Basel I Basis
As of March 31,
Increase
2006
2007(decrease)(in billions of yen)

Tier 1 capital:
Common stock and preferred stock . . . . . . . . . . . . . . . . . . . ¥1,541.0 ¥1,541.0
0.0Capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
411.1
411.1
0.0
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,417.5
1,338.7 ¥ (78.8)
Minority interest in consolidated subsidiaries . . . . . . . . . . .
1,280.6
1,726.2
445.6
Treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(46.8)(32.3)
14.5
Expected outflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
n.a.
n.a.
n.a.
Foreign currency translation adjustments . . . . . . . . . . . . . .
(47.5)(39.0)
8.5
Goodwill equivalent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(0.0)
0.0
0.0
Capital increase due to securitization transactions . . . . . . .
n.a.
n.a.
n.a.

Basel II Basis
As of March 31,
2007¥ 1,541.0
411.1
1,439.9
1,726.2(32.3)(101.2)(39.0)
0.0(12.1)

Total Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,555.9

4,945.7389.8

4,933.6

Tier 2 capital:
45% of unrealized gains on other securities . . . . . . . . . . . .
45% of revaluation reserve for land . . . . . . . . . . . . . . . . . .
General reserve for possible losses on loans . . . . . . . . . . . .
Debt capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

994.6
131.1
615.8
2,812.6

1,100.8116.0
500.9
2,744.2

106.2(15.1)(114.9)(68.4)

1,100.8116.0
131.6
2,744.2

Total Tier 2 capital . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,554.1

4,461.9(92.2)

4,092.6

Deductions for total risk-based capital . . . . . . . . . . . . . . . . . .

(116.7)(122.0)(5.3)(184.8)

Total risk-based capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥8,993.3¥9,285.6¥ 292.3¥ 8,841.4

Our Tier 1 capital calculated on a Basel I basis increased by ¥389.8 billion from the end of the previous
fiscal year to ¥4,945.7 billion as of March 31, 2007. Of this increase, ¥621.0 billion was due to our net income in
the fiscal year ended March 31, 2007 and ¥400.0 billion was due to the issuance of non-dilutive preferred
securities during the fiscal year. These effects were offset in part by a decrease of ¥603.5 billion due to our
repurchases and cancellation of our preferred stock held by the Resolution and Collection Corporation in July
2006, through which we completed the repayment of all public funds during the fiscal year.
Within Tier 1 capital, retained earnings decreased by ¥78.8 billion due mainly to a decrease of ¥603.5
billion as a result of our repurchases of preferred stock held by the Resolution and Collection Corporation and adecrease of ¥101.2 billion as a result of the payment of dividends for the fiscal year. These effects were offset inpart by a ¥621.0 billion increase due to our net income in the fiscal year. The increase in minority interest inconsolidated subsidiaries of ¥445.6 billion was due mainly to an increase of ¥400.0 billion as a result of theissuance of non-dilutive preferred securities in the fiscal year.
Minority interest in consolidated subsidiaries included within our Tier 1 capital includes non-dilutive
preferred securities issued by our offshore special purpose companies to investors. As of March 31, 2007, theamount of minority interest in consolidated subsidiaries within our Tier 1 capital that was attributable to suchpreferred securities was ¥1,505.0 billion. Although such preferred securities are perpetual in term, they are
redeemable at our option on, and on specified dates after, the relevant initial optional redemption date. The
following table shows the initial optional redemption dates for the preferred securities included within our Tier 1
capital as of March 31, 2007 and the total amount of preferred securities with each such initial optional
redemption date. The preferred securities are denominated in yen, unless otherwise noted.
93

Amount ofpreferred securities
included within
Tier 1 capital(in billions of yen)

Initial optional redemption dateJune 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 185.5(1)422.9(2)176.0
78.7(3)171.0
470.9(4)Notes:(1) Entire amount was redeemed in June 2007.
(2) Denominated in dollars ($2.6 billion) and yen (¥118.5 billion).
(3) Denominated in euros (€500.0 million).
(4) Denominated in yen (¥400.0 billion) and dollars ($600.0 million).
Our Tier 2 capital included as qualifying capital calculated on a Basel I basis as of March 31, 2007 was¥4,461.9 billion, a decrease of ¥92.2 billion compared to March 31, 2006. The decrease was due mainly to adecrease in general reserve for possible losses as a result of improvements in the credit quality of many of ourpreviously troubled borrowers and general improvements in the Japanese economy.
As a result of the above, together with deductions of ¥122.0 billion, total risk-based capital calculated on a
Basel I basis as of March 31, 2007 was ¥9,285.6 billion, an increase of ¥292.3 billion compared to March 31,
2006.
Risk-weighted Assets
The following table shows a breakdown of our risk-weighted assets in terms of on-balance-sheet and offbalance-sheet items as well as the type of risk as of March 31, 2006 and 2007:
Basel IAs of March 31,
Increase
2006
2007(decrease)(in billions of yen)

Basel II
As of March 31,
2007

Risk-weighted assets:
On-balance-sheet items . . . . . . . . . . . . . . . . . . . . . . . . . .
Off-balance-sheet items . . . . . . . . . . . . . . . . . . . . . . . . . .

¥67,910.1
7,613.4¥69,686.1
8,001.1¥1,776.0
387.7¥48,718.6
11,036.5

Credit risk assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market risk equivalent assets . . . . . . . . . . . . . . . . . . . . .
Operational risk equivalent assets . . . . . . . . . . . . . . . . . .
Adjusted floor amount . . . . . . . . . . . . . . . . . . . . . . . . . . .

75,523.5
2,011.0n.a.
n.a.

77,687.2
2,431.2n.a.
n.a.

2,163.7
420.2
n.a.
n.a.

59,755.1
2,186.5
3,877.5
4,976.4

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥77,534.5¥80,118.4¥2,583.9¥70,795.5

Risk-weighted assets as of March 31, 2007 calculated on a Basel I basis was ¥80,118.4 billion, representing
an increase of ¥2,583.9 billion compared to March 31, 2006. On-balance-sheet items increased by ¥1,776.0
billion to ¥69,686.1 billion due mainly to an increase in loans to corporate customers outside of Japan and anincrease in credit and alternative investments to promote the diversification of risks and to expand our income
sources. Off-balance-sheet items increased by ¥387.7 billion to ¥8,001.1 billion due mainly to an increase incommitment lines to customers outside of Japan. Market risk equivalent assets increased by ¥420.2 billion to¥2,431.2 billion due mainly to an increase in securities trading activities.
94

The following table shows required capital by portfolio classification as of March 31, 2007 calculated on a
Basel II basis:
Fiscal year ended March 31, 2007
Exposure at default Required capital(1)(in billions of yen)

Credit risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal ratings-based approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Residential mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualifying revolving loans . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equities, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Probability of default/Loss given default approach . . . . . . . .
Market-based approach (simple risk weight method) . . . . . . .
Market-based approach (internal models approach) . . . . . . . .
Transitional measure applied . . . . . . . . . . . . . . . . . . . . . . . . .
Regarded-method exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standardized approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sovereign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Residential mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standardized approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equities risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodities risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal models approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operational risk (standardized approach) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total required capital(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥147,489.3
140,350.2
59,960.1
43,361.8
7,699.1
13,016.0
10,260.7345.0
2,410.2
6,550.1
910.9
147.0
—
5,492.0
1,097.2
6,394.6
2,271.0
7,139.0
2,633.8
1,731.4
2,474.5
0.0
17.4
281.7
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

¥6,067.2
5,809.9
3,678.3
102.5
185.1
543.3
370.9
22.0
150.4
619.9
110.9
51.3
—
457.6
310.9
159.1
210.4
257.2
2.2
30.0
192.7
0.0
15.4
16.7
174.9
138.2
84.5
40.1
7.8
5.6
36.7
310.2
5,663.6

Notes:(1) For credit risk, required capital is the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and(iii) deductions from capital. For market risk, required capital is the market risk equivalent amount. For
operational risk, required capital is the operational risk equivalent amount.
(2) Total required capital (consolidated) is equal to 8% of the denominator used for purposes of calculating
capital adequacy ratios.
(3) Figures in the above table are truncated.

95Principal Banking Subsidiaries
Capital adequacy ratios of our principal banking subsidiaries, on a consolidated basis, as of March 31, 2006
and 2007, calculated in accordance with Japanese GAAP and guidelines established by the Ministry of Financeand the Financial Services Agency, were as set forth in the following table:
Basel IAs of March 31,
2006
2007

Mizuho Corporate Bank
BIS standard:
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital adequacy ratio . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Bank(1)Domestic standard:
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital adequacy ratio . . . . . . . . . . . . . . . . . . . . . . . . .
BIS standard:
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital adequacy ratio . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Trust & Banking
BIS standard:
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital adequacy ratio . . . . . . . . . . . . . . . . . . . . . . . . .

Basel II
Increase(decrease)

As of March 31,
2007

6.89%
12.81

7.66%
12.99

0.77%
0.18

8.56%
14.01

5.76
10.28

5.97
10.31

0.21
0.03

7.11
11.74

5.69
10.90

5.94
11.03

0.25
0.13

6.85
11.92

7.56
14.42

8.04
14.44

0.48
0.02

8.96
15.69

Notes:(1) The Bank for International Settlements standards apply only to banks with international operations. Because
Mizuho Bank does not operate overseas, it is subject solely to domestic capital adequacy requirements. As
such, information based on the Bank for International Settlements standards is included for reference
purpose only.
(2) Percentages in the above table are truncated.
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, 2007.
Our securities subsidiaries in Japan are also subject to the capital adequacy rules of the Financial Services
Agency under the Securities and Exchange Law. This rule requires securities firms to 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 100% or less may lead to a temporary suspension of all or part of the business operations
and cancellation of the license to act as a securities broker and dealer. We believe, as of March 31, 2007, that our
securities subsidiaries in Japan are in compliance with all capital adequacy requirements to which they are
subject.

96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, 2006 and 2007:
As of March 31,
2006
2007
(in billions of yen)

Guarantees:
Performance guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guarantees on loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guarantees on securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guarantees for the repayment of trust principal . . . . . . . . . . . . . . .
Liabilities of trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,327.6
1,247.1
47.5
1,056.3
1,349.6
6,716.3
45,862.2¥

1,678.7
1,127.0
24.0
1,057.4
1,160.0
6,073.7
120,008.4

Increase(decrease)

¥

351.1
(120.1)(23.5)
1.1(189.6)(642.6)
74,146.2

As of March 31,
Increase
2006
2007(decrease)(in billions of yen)

Commitments:
Commitments to extend credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitments to invest in securities . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥44,478.6
132.7
462.8

¥47,904.6
136.5
535.9

¥ 3,426.0
3.8
73.1

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

¥45,074.1¥48,577.0¥ 3,502.9

See note 23 to our consolidated financial statements for a description of the nature of the various types ofguarantees 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.
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
Financial Accounting Standards Board Interpretation No.46 (revised December 2003) “Consolidation of Variable
Interest Entities, an interpretation of ARB No.51.” These off-balance-sheet arrangements include the types oftransactions discussed below.
Asset-backed Commercial Paper/Loan Programs
We manage several asset-backed commercial paper/loan programs that provide our clients’ off-balancesheet and cost-effective financing. The variable interest entities used in the programs purchase assets, primarily
receivables, from clients participating in the programs and provide liquidity through the issuance of commercial
97

paper or borrowings from us backed by the assets. While customers normally continue to service the transferred
receivables, we underwrite, distribute and make a market in commercial paper issued by the variable interest
entities. We also provide liquidity support and credit enhancement to the variable interest entities.
Asset-backed Securitizations
We act as an arranger of various types of structured finance to meet clients’ various off-balance-sheet
financing needs. In substantially all of these structured financing transactions, the transfer of the 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, from time to time we establish single-issue and multi-issue special purpose entities that issue
collateralized debt obligations or collateralized loan obligations, synthetic collateralized debt obligations orcollateralized loan obligations or other repackaged instruments to meet clients’ and investors’ needs. We also
arrange securitization transactions including commercial mortgage-backed securities, residential mortgagebacked securities and others. In these transactions, we act as an underwriter, placement agent, asset manager,
derivatives counter party and/or investor for debt and equity instruments.
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
instruments, commercial mortgage-backed securities and residential mortgage-backed securities arranged bythird parties for the purpose of current income or capital appreciations, which all utilize entities that are deemedvariable interest entities.
With respect to some of the variable interest entities related to asset-backed securitizations described above,
we determined that we were not the primary beneficiary but had significant variable interests. As of March 31,
2007, total assets of these entities were ¥1,522 billion, and our maximum exposure to loss as of the same datewas ¥87 billion.
Investment Funds
We invest in various investment funds, including securities investment trusts that invest in equity and debt
securities such as listed Japanese securities and investment grade bonds. Investment advisory companies or fundmanagement companies, including our subsidiaries and affiliates, administer and make the investment decisions
with respect to such investment funds.
With respect to certain of these entities, we determined that we were not the primary beneficiary but hadsignificant variable interests. As of March 31, 2007, the total assets of these entities were ¥1,501 billion, and our
maximum exposure to loss as of the same date was ¥176 billion.
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.
As a trustee, we are required to exercise due care in the managing and safe-keeping of the assets entrusted.
Because we manage and administer entrusted assets in the capacity of an agent or fiduciary on behalf ofcustomers and are required to segregate trust assets from our proprietary assets, trust accounts are recorded
separately from our general accounts and are not included in our consolidated financial statements.
98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 high-grade marketable securities such as Japanese government bonds and placing cash with our
subsidiary trust banks to maintain liquidity and for cash management purposes. We have determined throughexpected loss calculation that we do not absorb a majority of the expected losses or residual returns in connection
with these trust arrangements and, therefore, the trust accounts are not included in our consolidated financial
statements. The asset size of guaranteed principal money trusts at March 31, 2007 was ¥1,162 billion, and our
maximum exposure to loss as of the same date was ¥573 billion.
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.
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, 2007:
Due in one
year or lessDue from
one year to
two years

Due from
two years to
three years

Due from
Due from
three years to four years tofour years
five years(in billions of yen)Time deposits . . . . . . .
Certificates ofdeposit . . . . . . . . . . .
Debentures . . . . . . . . .
Long-term debt . . . . . .
Operating leases . . . . .

¥28,626.8¥ 1,729.9¥ 1,740.1

8,771.6
1,581.2
481.5
39.3

16.0
950.7
736.5
35.6

7.6
930.0
894.4
23.0

—
988.6
435.8
22.2

Total . . . . . . . . . .

¥39,500.4¥ 3,468.7¥ 3,595.1¥ 1,808.2

¥

361.6

¥

273.8

Due after
five years

¥

Total

107.8

¥32,840.0—
273.3
1,148.3
19.8——
3,377.4
51.1

8,795.2
4,723.8
7,073.9
191.0¥ 1,715.2¥ 3,536.3¥53,623.9

Recent Accounting Pronouncements
Accounting pronouncements issued but not yet effective
In March 2006, the FASB issued SFAS No.156, “Accounting for Servicing of Financial Assets—anamendment of FASB Statement No.140” (“SFAS No.156”), which requires all separately recognized servicing
assets and liabilities be initially measured at fair value, if practical. SFAS No. 156 permits, but does not require,an enterprise to elect to remeasure servicing assets and liabilities at fair value in subsequent periods. An
enterprise is required to adopt SFAS No.156 as of the beginning of its first fiscal year that begins after
September 15, 2006. The adoption of SFAS No.156 will not have a material impact on our consolidated results ofoperations or financial condition.
In June 2006, the FASB ratified the EITF consensus on Issue No.06-2, “Accounting for Sabbatical Leave
and Other Similar Benefits Pursuant to FASB Statement No.43” (“EITF Issue No.06-2”). EITF Issue No.06-2
addresses accounting for compensated absences that require the completion of a minimum service period and do
not increase with additional years of service. EITF Issue No.06-2 is effective for fiscal years beginning after
December 15, 2006. The adoption of EITF Issue No.06-2 is not expected to have a material impact on ourconsolidated results of operations or financial condition.
In July 2006, the FASB issued FIN No.48, “Accounting for Uncertainty in Income Taxes” (“FIN No.48”),
which creates a single model to address uncertainty in all tax positions subject to SFAS No.109, “Accounting forIncome Taxes” (“SFAS No.109”). FIN No.48 clarifies the accounting for income taxes by prescribing the99minimum recognition threshold a tax position is required to meet before being recognized in the financial
statements. FIN No.48 also provides guidance on derecognition, measurement, classification, interest andpenalties, accounting in interim periods, disclosure and transition. FIN No.48 is effective for fiscal years
beginning after December 15, 2006 and differences between the amounts recognized in the statements offinancial position prior to the adoption of FIN No.48 and the amounts reported after adoption should be
accounted for as a cumulative-effect adjustment recorded to the beginning balance of retained earnings. The
adoption of FIN No.48 will not have a material impact on our consolidated results of operations or financial
condition.
In September 2006, the FASB issued SFAS No.157, “Fair Value Measurements” (“SFAS No.157”), whichclarifies the definition of fair value and the method used to measure fair value and expands the disclosure
requirements about fair value measurements. SFAS No.157 establishes a fair value hierarchy that distinguishes
between (1) market participant assumptions developed based on market data obtained from sources independentof the reporting entity and (2) the reporting entity’s own assumptions about market participant assumptions
developed based on the best information available in the circumstances. SFAS No.157 nullifies certain guidance
provided for in EITF Issue No.02-3, “Issues Involved in Accounting for Derivative Contracts Held for Trading
Purposes and Contracts Involved in Energy Trading and Risk Management Activities” (“EITF Issue No.02-3”),and the related provisions of SFAS No.133. SFAS No.157 is effective for fiscal years beginning afterNovember 15, 2007. We are currently evaluating the potential impact that the adoption of SFAS No.157 will
have on our consolidated results of operations and financial condition.
In February 2007, the FASB issued SFAS No.159, “The Fair Value Option for Financial Assets andFinancial Liabilities Including an amendment of FASB Statement No.115” (“SFAS No.159”). SFAS No.159
allows entities to choose, at specified election dates, to measure eligible financial assets and liabilities and certain
other items at fair value that are not otherwise required to be measured at fair value. If a company elects the fairvalue option for an eligible item, changes in that item’s fair value in subsequent reporting periods must berecognized in current earnings. SFAS No.159 is effective for fiscal years beginning after November 15, 2007.
Early adoption is permitted subject to certain conditions. We are currently evaluating the potential impact that the
adoption of SFAS No.159 will have on our consolidated results of operations and financial condition.
In June 2007, the AICPA issued SOP No.07-1, “Clarification of the Scope of the Audit and Accounting
Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for
Investments in Investment Companies” (“SOP No.07-1”). SOP No.07-1 provides guidance for determining
whether an entity is within the scope of the AICPA Audit and Accounting Guide Investment Companies (“theGuide”). Prior to the issuance of SOP No.07-1, in May 2007, the FASB issued FSP No.FIN46(R)-7 “Applicationof FASB Interpretation No.46(R) to Investment Companies” (“FSP No.FIN46(R)-7”), which addresses theapplication of FIN No.46R by an entity that accounts for its investments in accordance with the Guide. FSP
No.FIN46(R)-7 extends the scope exception for investment companies in FIN No.46R to unregistered investmentcompanies as defined by SOP No.07-1. SOP No.07-1 is effective for fiscal years beginning on or after
December 15, 2007, with earlier application encouraged, and FSP No.FIN46(R)-7 follows the adoption of SOP
No.07-1. We are currently evaluating the potential impact that the adoption of SOP No.07-1 and FSP
No.FIN46(R)-7 will have on our consolidated results of operations and financial condition, but we do not expect
a material impact on our consolidated results of operations and financial condition.
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 contained 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
100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 or for the fiscal year
ended
March 31, 2007
Shareholders’equityNet income(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. Non-interest-earning deposits made under government-led restructuring
program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Pension liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11. Consolidation of variable interest entities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12. Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 4,662.7¥ 623.9

123.1
534.7
120.6
141.7
(68.9)
95.2
194.4(40.7)(105.3)
185.1
34.6
95.3
9.2
(20.0)(20.1)
0.2

71.6
190.5
(1.2)
(1,154.5)
42.1(10.0)(76.7)(10.9)(104.1)
19.8

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

¥ 4,911.3¥ 621.0

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 Japanese GAAP. 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 at achieving
offsetting changes in fair values or variable cash flows from 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 contract are not bifurcatedunder U.S. GAAP, while Japanese GAAP allows an entity to bifurcate embedded derivatives if the entity
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.

101

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 meetthe sale accounting 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 arerecognized 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 an anticipatedmarket price recovery or maturity. 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 fair value of a security of more than 50% of its cost is a strong indicator of another-than-temporary decline, which requires compelling evidence to prove otherwise. A decline in fair value ofmore than 30% 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 fair value is less than 30%, it is not considered to be an other-than-temporary decline.
Changes in the fair value of investments in available-for-sale securities denominated in foreign currencies
arising from movements in foreign currency exchange rates are recognized as gains or losses in earnings underJapanese GAAP. Under U.S. GAAP, these fair value movements are included in the total change in the fair valueof the available-for-sale securities, which is recognized in other comprehensive income.
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 under Japanese
GAAP, fees and costs are recognized in earnings at the time the loan is originated.
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 thecollateral if the loan is collateral dependent. For certain impaired loans which are aggregated for the purpose ofmeasuring impairment, pools of smaller balance homogeneous loans and other non-homogenous 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 application of theformula allowance and the scope of the loans that 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 for loan
losses was significantly higher under U.S. GAAP in the fiscal year ended March 31, 2007 due to the difference inthe timing of accounting closings between our consolidated financial statements under U.S. GAAP and thoseunder Japanese GAAP. Specifically, our consolidated financial statements under U.S. GAAP took into account102

additional impairments of loans to borrowers whose credit ratings under our internal rating system declined after
the accounting closing of our consolidated financial statements 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 Law Concerning Revaluation of Land (Law 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

U.S. GAAP and Japanese GAAP differ with regard to accounting for business combinations, primarily inaccounting for goodwill. Under U.S. GAAP, goodwill is not amortized and an impairment loss is recorded to theextent 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.
9.

Non-interest-bearing deposits made under government-led restructuring program

In connection with the government-led restructuring program for seven failed housing loan companies, wemade non-interest bearing deposits of ¥359,017 million in the fiscal year ended March 31, 1997. Under Japanese
GAAP, these deposits are recorded at cost. Under U.S. GAAP, these deposits are discounted to their present
value at the time of deposit, and the discount is subsequently accreted to income over the expected period tomaturity.
10.

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 has been amortized103and actuarial gains and losses are deferred and amortized. 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 SFAS No.87, “Employers’ Accounting for Pensions,” beginning in the fiscal year ended
March 31, 1990, as permitted for a foreign private issuer. The cumulative effect of the accounting change, as wellas actuarial gains and losses since the adoption, had been fully amortized by April 1, 2004. See note 21 to ourconsolidated financial statements contained elsewhere in this annual report for further discussion.
Mizuho Financial Group and several of its major subsidiaries obtained an approval from the Minister of
Health, Labor and Welfare in September 2003 that released them from making future contributions to thesubstitutional portion of the Employees’ Pension Funds as defined under the Japanese Welfare Pension Insurance
Law. Upon the transfer of plan assets to the government by us related to past employee services, the governmentis expected to assume responsibility of benefit obligations for the entire substitutional portion of the Employees’
Pension Funds. Under Japanese GAAP, we recognized the extinguishment of the entire substitutional portion of
the benefit obligation and related plan assets in September 2003, which resulted in a gain. Under U.S. GAAP, theseparation process is accounted for as a single settlement transaction upon completion of the transfer to thegovernment of the substitutional portion of the benefit obligation and related plan assets. The transfer wascompleted during the fiscal year ended March 31, 2007, at which time the gain was recognized, eliminating thedifference with Japanese GAAP.
During the fiscal year ended March 31, 2007, Mizuho Financial Group and certain subsidiaries partiallywithdrew assets from employee retirement benefit trusts, which were established for the payment of employees’
severance pay and retirement pensions. The trusts remain in an overfunded status as of March 31, 2007.
Although no gains or losses have been recognized as a consequence of this transaction under U.S. GAAP, we
recognized a gain under Japanese GAAP for this withdrawal.
11.

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 commercial paper/loan
programs, asset-backed securitizations, investments in securitization products and investment funds. See note 25
to our consolidated financial statements contained elsewhere in this annual report for further discussion.
12.

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. In determining the realization of the tax benefits, possible sources of taxable income including prudent
and feasible tax planning strategies are considered. 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.
13.

Other
This adjustment reflects the effects of miscellaneous items that are not individually material.

104

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 and corporate auditors as of June 30, 2007:

Name(date of birth)

Current positions andprincipal outside positions

Terunobu Maeda(Jan. 2, 1945)

President & CEO(Representative Director(since Jan. 2003))

Masato Ono(Nov. 4, 1950)

Deputy President(Representative Director(since June 2007))

Business experience

Apr. 1968
June 1995

Joined The Fuji Bank, Limited
Director/General Manager ofCredit Planning Division

Apr. 1996

Director/General Manager ofCorporate Planning Division

May 1997

Managing Director

Jan. 1998

Managing Director/Head of Public
and Financial Institutions GroupMay 1999

Managing Director/Chief
Financial Officer

May 2001

Deputy President/Chief Financial
Officer (until Mar. 2002)

Jan. 2002

Director of Mizuho Holdings, Inc.
(present Mizuho Financial
Strategy Co., Ltd.)

Apr. 2002

President & CEO (until Apr.
2007)

Jan. 2003

President & CEO of Mizuho
Financial Group, Inc. (current)

Apr. 1974

Joined The Dai-Ichi Kangyo
Bank, Limited
Executive Officer/General
Manager of Corporate Banking
Coordination Division ofMizuho Corporate Bank, Ltd.

Apr. 2002

Head of Internal Audit Group
Chief Auditor
Apr. 2004

Managing Executive Officer

Apr. 2005

Managing Executive Officer/Headof Financial Products Unit

Mar. 2006

Managing Executive Officer ofMizuho Bank, Ltd.

Apr. 2007

Deputy President-Executive
Officer/Head of Internal Audit
Group of Mizuho Financial
Group, Inc.

June 2007

Deputy President/Head of Internal
Audit Group (current)

105

Expiration ofcurrent term
as director or
corporate
auditorJune 2009

June 2009Name(date of birth)

Current positions andprincipal outside positions

Satoru Nishibori(Mar. 2, 1953)

Managing Director (sinceJune 2004)

Business experience

Apr. 1975
Apr. 2002

Head of Financial Control
and Accounting Group
Chief Financial Officer

Hiroshi
Motoyama(June 15, 1954)

Apr. 2004

Managing Executive Officer/Headof Financial Control andAccounting Group of Mizuho
Financial Group, Inc.

June 2004

Managing Director/Head ofFinancial Control andAccounting Group (current)Managing Director (sinceJune 2007)

Apr. 1977

Joined The Industrial Bank ofJapan, Limited

Head of Strategic PlanningGroup and Head of IT,
Systems & Operations
Group

Apr. 2002

Joint General Manager of Human
Resources Division of Mizuho
Bank, Ltd.
General Manager of Corporate
Banking Division No. 9 ofMizuho Corporate Bank, Ltd.
Executive Officer/General
Manager of IT & Systems
Planning Division

Chief Strategy Officer andChief Information Officer

Hiroshi Saito(Mar. 29, 1944)

Dec. 2002

Joined The Fuji Bank, Limited
Executive Officer/General
Manager of Financial Planning
Division of Mizuho Corporate
Bank, Ltd.
Executive Officer/SeniorCorporate Officer of Financial
Control and Accounting Group

Dec. 2002

Apr. 2004

Apr. 2007

Managing Executive Officer/Headof Strategic Planning Group andHead of IT, Systems &Operations Group of Mizuho
Financial Group, Inc.

June 2007

Managing Director/Head of
Strategic Planning Group andHead of IT, Systems &Operations Group (current)

Director (since Jan. 2003)

Apr. 1966

President & CEO of Mizuho
Corporate Bank, Ltd.

June 1994

Joined The Industrial Bank ofJapan, Limited
Director/General Manager ofCorporate Banking Department
No. 6

May 1995

106

Director/General Manager ofTokyo Branch

Expiration ofcurrent term
as director or
corporate
auditorJune 2008

June 2009

June 2009Name(date of birth)

Current positions andprincipal outside positions

Business experienceFeb. 1997
June 1999
June 2000
Sep. 2000

Jan. 2002

Apr. 2002
Apr. 2002
Jan. 2003
Seiji Sugiyama(Apr. 17, 1947)

Director (since June 2003)

July 1971

President & CEO of Mizuho
Bank, Ltd.

June 1999

May 2000

June 2000

July 2000

June 2001

Apr. 2002

107

Expiration ofcurrent term
as director or
corporate
auditorManaging Director
Managing Director/Head ofCorporate Banking UnitManaging Director
Managing Executive Officer/Headof Corporate and Financial
Institutions Banking Business
Unit of Mizuho Holdings, Inc.
(present Mizuho Financial
Strategy Co., Ltd.)
Director and Managing Executive
Officer/Head of Corporate andFinancial Institutions Banking
Business Unit
Director (until Apr. 2007)
President & CEO of Mizuho
Corporate Bank, Ltd. (current)
Director of Mizuho Financial
Group, Inc. (current)
Joined The Nippon Kangyo Bank,
LimitedDirector/General Manager of
Human Resources Office of
The Dai-Ichi Kangyo Bank,
LimitedManaging Director/General
Manager of Corporate Banking
Business Division I and Head ofCustomer & Consumer Banking
Company
Managing Executive Officer/
General Manager of Corporate
Banking Business Division I
and Head of Customer &Consumer Banking Company
Managing Executive Officer/Headof Customer & Consumer
Banking Company
Managing Executive Officer/Headof Trust and Asset Management
Business Unit of Mizuho
Holdings, Inc.
Managing Executive Officer/Chief
Compliance Officer of Mizuho
Corporate Bank, Ltd.

June 2009Name(date of birth)

Current positions andprincipal outside positions

Business experience

June 2002
Mar. 2003

June 2003
Mar. 2004
Mar. 2004
Mar. 2004

AkihikoNomiyama(1)(June 15, 1934)

Director (since June 2007)
Special Advisor of Nippon
Mining Holdings, Inc.

Apr. 1957
June 1984
June 1989
Dec. 1992

June 2009

Mar. 1959
Dec. 1961

Joined Mitsui Bank, Ltd.
Joined Showa Denko K.K.

June 2009

May 1988

General Manager of Corporate
Planning Division
Director/General Manager ofCorporate Planning Division

June 1994
June 1996
June 2000
Apr. 2002
Sep. 2002

June 2003
June 2006
June 2007
Director (since June 2005)
Director and Chairman of theBoard of Directors ofShowa Denko K.K.

Managing Executive Officer/Chief
Strategy Officer
Deputy President-Executive
Officer/Head of IT, Systems &Operations Group of Mizuho
Financial Group, Inc.
Deputy President/Head of IT,
Systems & Operations Group
Director (current)
President & CEO of Mizuho
Bank, Ltd. (current)
Director of Mizuho Holdings, Inc.
(present Mizuho Financial
Strategy Co., Ltd.) (until Apr.
2007)
Joined Nippon Mining Co., Ltd.
Director
Managing Director
Managing Director of Nikko
Kyodo Co., Ltd.
Managing Director of Japan
Energy Corporation
Senior Managing Director
President and CEO(Representative Director)
Chairman, President and CEO(Representative Director)
Chairman and CEO(Representative Director)
President and CEO(Representative Director) of
Nippon Mining Holdings, Inc.
Chairman (Representative
Director)
Special Advisor (current)
Director of Mizuho Financial
Group, Inc. (current)

Dec. 1993

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

Expiration ofcurrent term
as director or
corporate
auditorMar. 1989

108

Name
(date of birth)

Current positions andprincipal outside positions

Business experience

Mar. 1993
Mar. 1995
Mar. 1997
Jan. 2005

June 2005
Mar. 2007

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

Director (since June 2007)

Joined Nissan Motor Co., Ltd.

June 1993
June 1997
May 1999

Director
Managing Director
Executive Vice President(Representative Director)
Vice Chairman (member of theboard of directors)
Vice Chairman
President (Representative
Director) of Nissan Real Estate
Development CorporationCounselorCounselor of Nissan Network
Holdings Co., Ltd. (until June2007)
Director of Mizuho Financial
Group, Inc. (current)

June 2000
Apr. 2002

June 2005
July 2006

June 2007
Yoshiaki Sugita(Dec. 6, 1946)

Corporate Auditor (sinceJune 2005)

Managing Director
Senior Managing Director
President and Chief Executive
Officer
Representative Director andChairman of the Board of
Directors
Director of Mizuho Financial
Group, Inc. (current)
Director and Chairman of theBoard of Directors of Showa
Denko K.K. (current)

Apr. 1964

Apr. 2000

Apr. 1970
June 1998

Joined The Fuji Bank, Limited

Director/General Manager ofSystems Planning Division andGeneral Manager ofTechnology Strategic Planning
Nov. 1998 Director/General Manager ofSystems Planning Division
Apr. 2000 Director/General Manager of IT
Planning Division
June 2000 Executive Officer/General
Manager of IT Planning
Division
Dec. 2000 Executive Officer/General
Manager of IT & Systems
Division
109

Expiration ofcurrent term
as director or
corporate
auditorJune 2009

June 2009Name(date of birth)

Shigeru
Yamamoto(July 5, 1951)

Current positions andprincipal outside positions

Corporate Auditor (sinceJune 2007)

Business experience

Apr. 2002

Advisor of Mizuho Financial
Group

June 2002

Executive Officer/Assistant to
Head of IT, Systems &Operations Group of Mizuho
Holdings, Inc.

Mar. 2003

Executive Officer/Assistant to
Head of IT, Systems &Operations Group of Mizuho
Financial Group, Inc.

Apr. 2005

Managing Executive Officer/Headof IT, Systems & Operations
Group

June 2005

Corporate Auditor of Mizuho
Corporate Bank, Ltd. (until
Mar. 2006)

June 2005

Corporate Auditor of Mizuho
Financial Group, Inc. (current)

June 2005

Corporate Auditor of Mizuho
Holdings, Inc. (until Mar. 2006)

Apr. 1975

Joined The Industrial Bank ofJapan, Limited
General Manager of Securities
Division of Mizuho Corporate
Bank, Ltd.

Apr. 2002

Dec. 2002

General Manager of Credit Risk
Management Division

Mar. 2003

Executive Officer/General
Manager of Credit Risk
Management Division

Apr. 2004

Managing Executive Officer/Headof Corporate Restructuring
Business Unit, Chief Credit
OfficerMar. 2006

Managing Executive Officer/Headof Global Portfolio
Management Unit, Head ofFinancial Institutions & Public
Sector Business Unit, Head ofCorporate Restructuring
Business Unit and General
Manager of Public Sector
Banking Division

110

Expiration ofcurrent term
as director or
corporate
auditorJune 2011

Name(date of birth)

Current positions andprincipal outside positions

Business experience

May 2006

Apr. 2007
June 2007

Expiration ofcurrent term
as director or
corporate
auditorManaging Executive Officer/Headof Global Portfolio
Management Unit, Head ofFinancial Institutions & Public
Sector Business Unit and Headof Corporate Restructuring
Business Unit
AdvisorCorporate Auditor of Mizuho
Financial Group, Inc. (current)

Yukio Nozaki(2)(Aug. 19, 1931)

Corporate Auditor (since
Jan. 2003)
Corporate Auditor ofMizuho Corporate Bank,
Ltd.
Corporate Auditor ofMizuho Bank, Ltd.

Assistant Judge of the Tokyo
District Court
Mar. 1992 President of the Sendai High
Court
Mar. 1993 President of the Nagoya High
Court
Aug. 1996 Resigned as judge
Oct. 1996 Registered as attorney at law(Daiichi Tokyo Bar
Association)
June 1997 Corporate Auditor of The Dai-Ichi
Kangyo Bank, Limited (until
Mar. 2002)
Sep. 2000 Corporate Auditor of Mizuho
Holdings, Inc. (until Mar. 2003)
Apr. 2002 Corporate Auditor of Mizuho
Corporate Bank, Ltd. (current)
Jan. 2003 Corporate Auditor of Mizuho
Financial Group, Inc. (current)
Mar. 2006 Corporate Auditor of Mizuho
Bank, Ltd. (current)

June 2011

Masahiro Seki(2)(Sep. 11, 1934)

Corporate Auditor (sinceJune 2006)

Apr. 1959

June 2010

Apr. 1956

June 1987
Feb. 1990

June 1997

Oct. 2000

111

Joined Deloitte Haskins & Sells,
Tokyo Office
General Representative
Senior Managing Director ofInternational Affairs of Deloitte
Touche Tohmatsu
Senior Researcher of the JapaneseInstitute of Certified Public
Accountants
Visiting Professor of Graduate
School of International
University of JapanName(date of birth)

Current positions andprincipal outside positions

Business experience

Expiration ofcurrent term
as director or
corporate
auditor

Apr. 2001 Professor of Graduate School(until Mar. 2004)
June 2002 President of the non-profit
organization, JapaneseInstitute of International
Accounting Education (until
June 2006)
Apr. 2004 Established Seki Certified Public
Accountants
June 2006 Senior Advisor of the non-profit
organization, JapaneseInstitute of International
Accounting Education(current)
June 2006 Corporate Auditor of Mizuho
Financial Group, Inc. (current)
Masahiko
Kadotani(2)(Feb. 14, 1936)

Corporate Auditor (since June 2004)
Corporate Auditor of Mizuho
Securities Co., Ltd.

Apr. 1958 Joined Ministry of Finance
June 2008
June 1988 Director-General of the
Securities Bureau
June 1990 Commissioner of the National
Tax Agency
June 1991 Vice Chairman of The General
Insurance Association of Japan
July 1994 Vice President of Japan FinanceCorporation for Small andMedium Enterprise
Dec. 1994 President
Jan. 1999 Retired from President
Feb. 1999 Advisor of Japan Small BusinessResearch InstituteAug. 1999 Advisor of The Japan ResearchInstitute, Ltd.
Jan. 2000 Advisor of The Industrial Bankof Japan, Limited
Apr. 2002 Advisor of Mizuho Corporate
Bank, Ltd.
June 2004 Corporate Auditor of Mizuho
Securities Co., Ltd. (current)
June 2004 Corporate Auditor of Mizuho
Financial Group, Inc. (current)

Notes:(1) Messrs Nomiyama, Ohashi and Anraku satisfy the requirements for an “outside director” under theCompany Law of Japan.
112

(2) Messrs Nozaki, Seki and Kadotani satisfy the requirements for an “outside corporate auditor” under theCompany Law of Japan.
Executive Officers
The following table provides information about our executive officers as of June 30, 2007, other thaninformation regarding those that are also directors and listed above:Name(date of birth)

Masayuki Saito(Dec. 2, 1953)

Tsuneo Morita(Apr. 29, 1954)

Masanori
Murakami(Dec. 25, 1955)

Current positions and principal
outside positions

Business experience

Managing Executive Officer (since
Apr. 2005)

Apr. 1976

Joined The Dai-Ichi Kangyo Bank,
LimitedHead of Risk Management Group
Head of Human Resources Group
Head of Compliance Group

Apr. 2002

General Manager of Corporate
Planning Division of Mizuho Bank,
Ltd.

Chief Risk Officer
Chief Human Resources Officer
Chief Compliance Officer

Mar. 2003

Executive Officer/General Manager
of Corporate Planning Division

Apr. 2005

Managing Executive Officer/Head of
Risk Management Group, Head of
Human Resources Group and Headof Compliance Group of Mizuho
Financial Group, Inc. (current)

Apr. 1978
Apr. 2002

Joined The Fuji Bank, Limited
General Manager of Kichijoji Branchof Mizuho Bank, Ltd.

Apr. 2003

Senior Manager of Administration ofMizuho Financial Group, Inc.

July 2003

General Manager for Administration

Aug. 2003

General Manager of Administration

Mar. 2006

Executive Officer/General Manager
of Administration (current)

Apr. 1978

Joined The Industrial Bank of Japan,
LimitedDeputy General Manager ofCorporate Banking Coordination
Division of Mizuho Corporate
Bank, Ltd.

Executive Officer (since Mar. 2006)
General Manager of Administration

Executive Officer (since Apr. 2007)
General Manager of Corporate
Communications

113

Apr. 2002

Dec. 2002

Senior Manager of SyndicatedFinance Administration Division

Apr. 2003

General Manager of SyndicatedFinance Administration Division

Oct. 2004

General Manager of SyndicatedFinance Division

Apr. 2007

Executive Officer/General Manager
of Corporate Communications ofMizuho Financial Group, Inc.
(current)Name(date of birth)

Current positions and principal
outside positions

Hidemi Hiroi(Nov. 16, 1954)

Executive Officer (since Apr. 2007)

Apr. 1979

General Manager of Group Strategic
Planning

Apr. 2002

Business experience

Joined The Industrial Bank of Japan,
LimitedSenior Manager of Corporate Banking
Coordination Division of Mizuho
Corporate Bank, Ltd.

Dec. 2002

Joint General Manager of Corporate
Banking Coordination Division

Apr. 2003

General Manager of Hiroshima
Corporate Banking Division

Apr. 2005

General Manager of Group Strategic
Planning of Mizuho Financial
Group, Inc.

Apr. 2007

Executive Officer/ General Manager
of Group Strategic Planning

An Executive Officer may serve any number of consecutive terms. The term of office of the Executive
Officers currently in office will expire at the close of the first meeting of our board of directors after the ordinary
general meeting of shareholders.
No family relationship exists among any of our directors, executive officers or corporate auditors.
6.B. Compensation
In accordance with the Company Law, compensation for our directors and corporate auditors, including
bonuses, retirement allowances and incentive stock options, must be approved at our general meeting ofshareholders, unless otherwise specified in our articles of incorporation in the future. The shareholders’ approval
may specify the upper limit of the aggregate amount of compensation or calculation methods, but if
compensation includes benefits in kind, the shareholders’ approval must include the description of such benefits.
Compensation for a director or corporate auditor is fixed by our board of directors or by consultation among ourcorporate auditors in accordance with our internal regulations and practice and, in the case of retirement
allowances, generally reflects the position of the director or corporate auditor at the time of retirement, the lengthof his service as a director or corporate auditor and his contribution to our performance.
The aggregate compensation, including bonuses but excluding retirement allowances, paid by Mizuho
Financial Group and subsidiaries to our directors and to our corporate auditors during the fiscal year ended
March 31, 2007 was ¥370 million and ¥78 million, respectively.
The amount of reserves set aside by Mizuho Financial Group and subsidiaries for the payment of retirement
allowances for directors and corporate auditors for the fiscal year ended March 31, 2007 was ¥258 million and¥39 million, respectively.
We have not implemented any incentive stock option plan.
6.C. Board Practices
Pursuant to our articles of incorporation, we maintain a corporate governance system consisting of general
meetings of shareholders, individual directors, board of directors, individual corporate auditors, board ofcorporate auditors and an accounting auditor as its primary components.
114

Our board of directors has the ultimate responsibility for the administration of our affairs. Our articles ofincorporation provide for a board of directors consisting of not more than 15 members, in order to facilitate
efficient and responsive decision making, and provide for not more than six corporate auditors. All directors andcorporate auditors are appointed by our shareholders at general meetings. The normal term of office is two years
for directors and four years for corporate auditors after their respective appointment, but directors and corporate
auditors may serve any number of consecutive terms. Our board of directors designates, from among its
members, representative directors and appoints a president. Our board of directors may also appoint a chairman,a deputy chairman, deputy presidents, senior managing directors and managing directors. Each representative
director has the authority to represent us in the conduct of our affairs.
While one of our corporate auditors is a certified public accountant, our corporate auditors are not required
to be certified public accountants. None of the corporate auditors may at the same time be directors, accounting
participants, executive officers, or managers or employees of the company or any of its subsidiaries and at least
one-half of them must be persons who have not been directors, accounting participants, executive officers or any
other employees of us or any of our subsidiaries at any time prior to their appointment as corporate auditors.
Each corporate auditor has a statutory duty to audit the directors’ performance of their duties and to audit theaccounting records and the business reports submitted by the directors to general meetings of shareholders.
Corporate auditors shall attend each meeting of the board of directors and, when necessary, state their opinion at
the meeting, but are not entitled to vote.
The board of corporate auditors is composed of all corporate auditors. The board of corporate auditors has astatutory duty to prepare and submit an audit report to the directors each year. If any corporate auditor has an
opinion that is different from the opinion of the board of corporate auditors, such opinion shall also be describedin the audit report. The board of corporate auditors shall determine policies regarding audits, the method ofinvestigation by the corporate auditors into the status of corporate affairs and financial position and other mattersrelating to the performance of the corporate auditors’ duties, provided, however, that a resolution of the board ofcorporate auditors may not prevent any corporate auditor from exercising his or her own power.
None of our directors or corporate auditors has service contracts with us providing for benefits upon
termination of service.
We amended our articles of incorporation to include, in accordance with the Company Law, provisions thatallow us to enter into an agreement with outside directors and outside corporate auditors that limits their
liabilities incurred in connection with their service. The limitation of the liabilities under such agreement must be
the higher of either (i) a pre-determined amount not less than ¥20 million or (ii) the amount prescribed in laws
and regulations, which is currently equivalent to two times the annual compensation to such outside director oroutside corporate auditor. Pursuant to the provisions, we have entered into such agreements with three outside
directors and three outside corporate auditors.
To ensure transparency and objectivity in personnel matters relating to directors, we have established anominating committee and a compensation committee. Each committee is comprised of six directors, of whomthree are outside directors.
For additional information on our directors and corporate auditors and our board practices, see “Item 6.A.
Directors and Senior Management—Directors and Corporate Auditors” and “Item 10.B. Additional
Information—Memorandum and Articles 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 2.3 to this annual report.

115

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.
The following table shows the significant differences between the corporate governance practices followed
by NYSE-listed U.S. companies under Section 303A of the NYSE Listed Company Manual and those followedby us. The information set forth below is current as of June 30, 2007.
Corporate governance practices followed
by NYSE-listed U.S. companies

Corporate governance practices followed by us

A NYSE-listed U.S. company must have a majority of
directors meeting the independence requirements under
Section 303A of the NYSE Listed Company Manual.

Under the Company Law, which became effective on
May 1, 2006, a “large company” which is a publiccompany must have a corporate governance system
based on either a board of corporate auditors orcommittees. Under the Company Law, a “large
company” means a company with stated capital of¥500 million or more or with a total amount of¥20 billion or more stated in the liability section of
their latest balance sheets in Japan, and a “publiccompany” means a company for which any class of
its shares can be transferred under its articles ofincorporation without approval of the board of
directors. The vast majority of large Japanesecompanies, including us, employ the corporate
auditor system.
While the Company Law requires companies with aboard of directors to have a minimum of three
directors, it does not require companies that employ
the corporate auditor system, such as us, to haveoutside directors. The Company Law defines “outside
director” as a non-managing director (i) who was nota managing director, executive officer, manager or
any other employee of the company or any of its
subsidiaries at any time in the past and (ii) who is not
currently a managing director, executive officer,
manager or any other employee of the company or
any of its subsidiaries. Currently, we have nine
directors, three of whom satisfy the requirements foran “outside director” under the Company Law. The
normal term of office for each director is two years.

The non-management directors of a NYSE-listed U.S.
company must meet at regularly scheduled executive
sessions without management.

Japanese law does not require us to hold regularmeetings without management. As a company that
employs the corporate auditor system, each of ourcorporate auditors and our board of directors monitors
management, and such monitoring by our corporate
auditors and board of directors functions as ourmanagement-oversight system.
116

Corporate governance practices followed
by NYSE-listed U.S. companies

A NYSE-listed U.S. company must have an audit
committee with responsibilities described under
Section 303A of the NYSE Listed Company Manual,including those imposed by Rule 10A-3 of the U.S.
Securities Exchange Act of 1934, as amended. The
audit committee must be composed entirely of
independent directors and have at least three members.

Corporate governance practices followed by us

Our board of corporate auditors is a legally separate
and independent body from our board of directors.
The basic function of the board of corporate auditors
is similar to that of independent directors, including
those who are members of the audit committee, of a
NYSE-listed U.S. company: to monitor the
performance of the directors and review and express
opinions on the method of auditing by our
independent public accounting firm and on suchaccounting firm’s audit reports for the protection of
the company’s shareholders.
Under the Company Law, the board of corporate
auditors may determine the auditing policies, methodof investigating the conditions of the business and theassets of a company, and may resolve other mattersconcerning the execution of the corporate auditor’s
duties, prepare a report of the board of corporate
auditors and give consent to proposals of thenomination of corporate auditors and accounting
auditors.
Under the Company Law, companies which employ aboard of corporate auditors, including us, are required
to have at least one half of their corporate auditors be
outside corporate auditors who must meet
independence requirements under the Company Law.
The Company Law defines “outside corporate
auditor” as a corporate auditor who was not a
director, accounting participant, executive officer,
manager or any other employee of the company or
any of its subsidiaries at any time in the past.
Currently, we have five corporate auditors, three ofwhom satisfy the requirements for an “outside
corporate auditor” under the Company Law. The
normal term of office for each of our corporate
auditors is four years. Under the Company Law, noneof the corporate auditors may at the same time bedirectors, managers or employees of the company or
any of its subsidiaries, or accounting participants or
executive officers of such subsidiaries.
While the Company Law does not require corporate
auditors to have expertise in accounting or otherspecial knowledge and experience, one of ourcorporate auditors is a certified public accountant.
The Company Law provides that a large company
must appoint an accounting auditor at a general
meeting of shareholders. However, the Company Law
also provides that, in order to submit a proposal
117Corporate governance practices followed
by NYSE-listed U.S. companies

Corporate governance practices followed by us

concerning an appointment of an accounting auditor
to a general meeting of shareholders, the board of
directors must obtain the consent of the board ofcorporate auditors and that the board of corporate
auditors may, by resolution, demand that the board of
directors include the appointment of an accounting
auditor in the agenda of a general meeting ofshareholders or demand that the directors submit a
proposal concerning the appointment of a certain
accounting auditor that is recommended by the boardof corporate auditors. The Company Law provides
that the board of corporate auditors may, byunanimous resolution, dismiss an accounting auditor
for causes enumerated in the Company Law such asbreach of his or her duties. The Company Law also
provides that in order to submit a proposal concerninga dismissal of an accounting auditor to a general
meeting of shareholders, the directors must obtain theconsent of the board of corporate auditors and that theboard of corporate auditors may, by resolution,
demand that the directors include the dismissal of acertain accounting auditor in the agenda of a general
meeting of shareholders. The board of corporate
auditors may audit in its own right if it believes thatthe manner or result of an audit by the accounting
auditors is not reasonable. To this end, a corporate
auditor may, if necessary for the performance of hisor her duties, request the accounting auditors toprovide a report on their duties. Further, it is also
provided that the accounting auditors must submit anaudit report directly to the board of corporate auditors
and the corporate auditors may demand theaccounting auditors to provide an explanation withrespect to their audit report. As such, in accordancewith the Company Law, our board of corporate
auditors is responsible, to the extent permitted by law,for the appointment, retention and supervision of thework of a registered public accounting firm engaged
for the purpose of preparing or issuing an audit reportor performing other audit, review or attestation
services for us.
Under Japanese law, neither the corporate auditors
nor the board of corporate auditors has the statutory
power to establish procedures for the receipt,
retention, and treatment of complaints and theconfidential, anonymous submission of concerns by
employees. Thus, our board of directors has
established such procedures. Under our regulations of
the board of corporate auditors, our board ofcorporate auditors is required to confirm that such
118

Corporate governance practices followed
by NYSE-listed U.S. companies

Corporate governance practices followed by us

procedures are appropriately established. Suchprocedures include the receipt and treatment ofcomplaints and the confidential, anonymous
submission of concerns by employees regarding thestatus of our internal control system on accounting
and financial reporting and audits by an outsideaccounting auditor and our internal audit division.
Corporate auditors are also able to investigate thestatus of our internal control system, including suchprocedures, at any time and state his or her opinion ata meeting of the board of directors if he or she
considers it necessary.
Each of our corporate auditors has the authority under
the Company Law to engage independent counsel andother advisers if such engagement is necessary to
carry out his or her duties. Each corporate auditor
may require us to pay any and all expenses necessary
for carrying out his or her duties, including
compensation of any advisers employed by him or her
and ordinary administrative expenses. Similarly, eachof our corporate auditors and our board of corporate
auditors has the authority under our regulations of theboard of corporate auditors to engage independent
advisors, including accountants and legal counsel, as
necessary.
We rely on an exemption from the audit committee
requirements imposed by Rule 10A-3 of the U.S.
Securities Exchange Act of 1934, as amended, whichis available to foreign private issuers with a board ofauditors (or similar body) meeting specified criteria.
A NYSE-listed U.S. company must have a nominating/corporate governance committee with responsibilities
described under Section 303A of the NYSE Listed
Company Manual. The nominating/ corporate
governance committee must be composed entirely of
independent directors.

Our directors and corporate auditors must be
appointed at a general meeting of shareholders inaccordance with the Company Law. A proposal to a
general meeting of shareholders by the board of
directors to appoint a corporate auditor must be
approved by a resolution of the board of corporate
auditors. The board of corporate auditors is
empowered to adopt a resolution requesting that theboard of directors submit a proposal for appointmentof a corporate auditor to the general meeting ofshareholders. Corporate auditors have the right tostate their opinion concerning appointment, dismissal
and resignation of a corporate auditor at the general
meeting of shareholders.
Although we, as a company with corporate auditors,
are not required to establish a nominating committee
under the Company Law, we have voluntarily
established a nominating committee consisting of six
directors, three of whom are outside directors.

119

Corporate governance practices followed
by NYSE-listed U.S. companies

Corporate governance practices followed by us

A NYSE-listed U.S. company must have acompensation committee with responsibilities
described under Section 303A of the NYSE Listed
Company Manual. The compensation committee must
be composed entirely of independent directors.

Japanese law does not require us, a company withcorporate auditors, to establish a compensationcommittee. We have, however, voluntarily
established a compensation committee consisting ofsix directors, three of whom are outside directors.
The Company Law requires that the total amount of
remuneration to be paid to all directors and the total
amount of remuneration to be paid to all corporate
auditors be determined by a resolution of a general
meeting of shareholders, unless their remuneration isprovided for in the articles of incorporation. Based on
the above resolution, the distribution of remuneration
among directors is broadly delegated to our board of
directors and the distribution of remuneration amongcorporate auditors is determined by consultation
among our corporate auditors.

A NYSE-listed U.S. company must adopt a code ofbusiness conduct and ethics and must post the code on
its website.

Under Japanese law, including the Company Law and
the Securities and Exchange Law of Japan, and therules of stock exchanges in Japan on which we arelisted, we are not required to adopt a code of businessconduct and ethics for directors, officers andemployees. We maintain the “Mizuho Code of
Conduct” as our standard for corporate conduct,
covering all of our directors, officers and employees.

A NYSE-listed U.S. company must adopt corporate
governance guidelines and must post the guidelines on
its website.

Under the Company Law, a large company with aboard of directors, including us, is required toestablish an internal control system and disclose theexistence and present conditions of such internal
control system in its business report. In addition, alisted company should disclose its internal control
system in its annual securities report and certain otherdisclosure documents in accordance with the
Securities and Exchange Law of Japan andregulations thereunder, and applicable Japanese stock
exchange rules in respect of timely disclosure.
English translations of disclosure documents understock exchange rules are posted on our website.

A NYSE-listed U.S. company must generally obtainshareholder approval with respect to any equity
compensation plan.

Under the Company Law, if we desire to adopt anequity compensation plan under which stockacquisition rights are granted with specially favorable
conditions, except where such rights are granted to allof our shareholders on a pro rata basis, then such aplan must be approved by a special resolution adopted
at a general meeting of shareholders, where thequorum is, under our articles of incorporation,
one-third of the total number of voting rights of theshareholders entitled to vote and the approval of atleast two-thirds of the voting rights of shareholders
present at the meeting is required.
120

Corporate governance practices followed
by NYSE-listed U.S. companies

Corporate governance practices followed by us

A NYSE-listed U.S. company must have an internal
audit function, which must be the sole responsibility of
the audit committee and may not be allocated to adifferent committee.

Our internal audit function is maintained by ourinternal audit committee. Our internal audit
committee determines all important mattersconcerning internal audits. The committee is chairedby our president and chief executive officer and isindependent of our other business operations. The
committee reports to our board of directors. See “Item11. Quantitative and Qualitative Disclosure about
Market Risk—Internal Audit—Internal Audit
Management Structure.”

6.D. Employees
As of March 31, 2005, 2006 and 2007, we had 45,180, 45,758 and 47,449 employees, respectively, on aconsolidated basis, including overseas local staff but excluding advisers and temporary employees. We also had
an average of approximately 20,064 temporary employees during the fiscal year ended March 31, 2007.
The following tables show our full-time employees as of March 31, 2007 and average number of temporary
employees for the fiscal year ended March 31, 2007, each broken down based on business segment andgeographical location:
Number offull-time employees

Average number of
temporary employees

Global Corporate Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Retail Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Asset & Wealth Management Group . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,253
26,640
4,960
4,596

1,226
17,892
538
408

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

47,44920,064

Percentage offull-time employees

Average percentage of
temporary employees

Business segment

Location

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

96.6%
1.1
1.5
0.8

99.8%
0.1
0.1
0.0

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.

121

6.E. Share Ownership
The following table shows the number of shares of our common stock owned by our directors and corporate
auditors as of June 30, 2007:
Directors

Number of shares owned

Terunobu Maeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Masato Ono . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Satoru Nishibori . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hiroshi Motoyama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hiroshi Saito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Seiji Sugiyama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Akihiko Nomiyama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mitsuo Ohashi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kanemitsu Anraku . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Auditors

103
18
18
2
25
24
—
—
5
Number of shares owned

Yoshiaki Sugita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shigeru Yamamoto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukio Nozaki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Masahiro Seki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Masahiko Kadotani . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28
16
56
1
2

None of our directors or corporate auditors is the owner of more than one percent of our common stock, andno director or corporate auditor has voting rights with respect to our common stock that are different from anyother holder of our common stock.
We have two employee stock ownership plans under which participating employees of the companies listed
below are 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 a monthly
basis. The companies contribute matching funds equivalent to 5% of the amounts contributed. The following
table shows the numbers of shares that these plans held as of March 31, 2007:
As of March 31, 2007
Plan

Employer companies

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

Mizuho Financial Group
Mizuho Bank
Mizuho Corporate BankUC CardDai Ichi Kangyo Asset Management
Fuji Investment Management
Mizuho Research InstituteMizuho Information & Research InstituteMizuho Securities
Mizuho CapitalMizuho Group Employee Stock Ownership Plan . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number ofshares owned

45,901
303
46,204122

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, 2007:
As of March 31, 2007
Number ofPercentage ofshares owned
issued shares(1)NameJapan Trustee Services Bank, Ltd. (trustee account) . . . . . . . . . . . . . . . . . . . . . . . . .
The Master Trust Bank of Japan, Ltd. (trustee account) . . . . . . . . . . . . . . . . . . . . . .
Japan Trustee Services Bank, Ltd. (trustee account 4) . . . . . . . . . . . . . . . . . . . . . . .
The Dai-ichi Mutual Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho Financial Strategy(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Chase Manhattan Bank, N.A. London . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust & Custody Services Bank, Ltd. (Meiji Yasuda Life Insurance Company
Retirement Benefit Trust Account re-entrusted by Mizuho Trust & Banking) . . .
Nippon Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State Street Bank And Trust Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State Street Bank And Trust Company 505103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

618,108
571,497299,199
279,158
261,041
245,820

5.21%
4.81
2.52
2.35
2.20
2.07

137,000
132,631
128,499
120,330

1.15
1.12
1.08
1.01

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

2,793,283

23.53%

Notes:(1) Percentage of number of shares owned within the total number of issued shares (including treasury stock).
(2) Mizuho Financial Strategy is a wholly-owned subsidiary of ours, and the shares held by it are treated astreasury stock. On May 28, 2007, we repurchased and cancelled 261,041 of such shares.
(3) Share ownership figures in the above table are rounded to the nearest full share.
Mizuho Financial Strategy, a wholly-owned subsidiary of ours, sold 700,000 shares of our common stock
formerly held by it in a global offering in November 2005 and an additional 63,000 shares in Japan through overallotments in December 2005. In addition, on July 7, 2006 and May 28, 2007, we repurchased and cancelled
131,800 and 261,041 shares, respectively, of our common stock held by Mizuho Financial Strategy. Mizuho
Holdings originally received its shares of our common stock in connection with the corporate split transactions
conducted to form the Mizuho Financial Group as the holding company for the Mizuho group in March 12, 2003.
Under the Company Law, Mizuho Financial Strategy may not exercise voting rights with respect to these shares.
Except for the prohibition on the exercise of voting rights applicable to Mizuho Financial Strategy describedabove, our major shareholders of common stock have the same voting rights as other holders of common stock.
As of March 31, 2007, there were 179 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.

123Preferred StockClasses of preferred stock with shares outstanding as of March 31, 2007 consisted of eleventh seriesclass XI and thirteenth series class XIII preferred stock, all of which are non-voting. The following table sets
forth information regarding the combined ownership of shares of eleventh series class XI preferred stock andthirteenth series class XIII preferred stock by our fifteen largest shareholders of preferred stock as of March 31,
2007, as appearing on the register of preferred shareholders:
As of March 31, 2007
Number ofPercentage ofshares owned
issued shares

Name

The Dai-ichi Mutual Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Meiji Yasuda Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sompo Japan Insurance Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
UBS AG London A/C Ipb Non Seg Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fukoku Mutual Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marubeni Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITOCHU Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Kansai Electric Power Company, Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . .
Shiseido Company, Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shimizu Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Seiko Epson Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taisei Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric Power Development Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Tokyo Electric Power Company, Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nippon Express Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27,00025,00019,00015,77015,00014,50010,00010,00010,00010,00010,00010,00010,00010,00010,000

2.75%
2.55
1.94
1.61
1.53
1.48
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.02

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

206,27021.04%

As of March 31, 2007, there was one record holder of our preferred stock with an address in the UnitedStates.
The following table shows the shares of preferred stock that we issued to, and repurchased from, theResolution and Collection Corporation:

Class of preferred shares

Date of repurchase

Number ofsharesrepurchased

First series class I preferred stock . . . . . . . . . . . . . . . .
Second series class II preferred stock . . . . . . . . . . . . .

August 31, 2004
March 7, 2005
August 29, 2005
August 29, 2005
July 4, 2006
July 4, 2006
October 12, 2005
March 7, 2005
August 29, 2005
August 31, 2004
March 7, 2005
August 29, 2005

33,00038,60061,400100,000
150,000
150,000
125,000
65,70059,300107,000
33,000140,000

Third series class III preferred stock . . . . . . . . . . . . . .
Fourth series class IV preferred stock . . . . . . . . . . . . .
Sixth series class VI preferred stock . . . . . . . . . . . . . .
Seventh series class VII preferred stock . . . . . . . . . . .
Eighth series class VIII preferred stock . . . . . . . . . . .
Ninth series class IX preferred stock . . . . . . . . . . . . .
Tenth series class X preferred stock . . . . . . . . . . . . . .

Original issue Repurchase
price
price
(in billions of yen)

¥ 99.0
77.2
122.8
200.0
300.0
300.0
250.0
131.4
118.6
133.8
41.3
175.0

¥ 59.5
60.5
115.3
187.6
301.9
301.6
250.7
148.8
156.4
180.5
50.7
233.7

To our knowledge, we are not directly or indirectly owned or controlled by any another 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.
124

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, 2007, such transactions included, but were not limited to, call money, loans, deposits, guarantees andforeign exchange transactions, those transactions were immaterial and were made at prevailing market rates,
terms and conditions and do not involve more than the normal risk of collectibility or present other unfavorable
features.
During the fiscal year ended March 31, 2007, 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,
2007.
During the fiscal year ended March 31, 2007, no loans were made to our directors or executive officers or
corporate auditors other than in the normal course of business, on normal commercial terms and conditions.
7.C. Interests of Experts and Counsel
Not applicable.

125

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.
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 disputes
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 lawsuits brought by the obligors under the bonds in Indonesia. Our consolidated financial statements do notinclude a reserve in relation to these disputes 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 continued to accumulate net income steadily and completed the repayment of all public funds inthe fiscal year ended March 31, 2007. We will place our management emphasis on return on equity from theperspective of effective utilization of our capital and consider returning profits to our shareholders while
maintaining and strengthening our capital base.
Based on this policy, in view of our consolidated financial results, the level of retained earnings and otherfactors, we increased the year-end cash dividend per share of common stock for the fiscal year ended March 31,
2007 by ¥3,000 from the previous fiscal year to ¥7,000. We also made dividend payments on preferred stock asprescribed.
Although our Articles of Incorporation provide for our ability to pay an interim dividend to shareholders ofrecord as of September 30 in each year pursuant to Article 454 Paragraph 5 of the Company Law based upon ourconsolidated financial results for the relevant fiscal year and other factors, we have been paying only the annual
dividend.
The payment of any annual dividends is subject to the authorization by a general meeting of shareholders,
while the payment of any interim dividends may be made by resolution of our board of directors.
8.B. Significant Changes
Except as disclosed in note 33 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.

126

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 since their listing on November 8, 2006:
Price per ADS
High
Low

Fiscal years ended/ending March 31,

2007 (from November 8, 2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.35 $12.74
2007:
Third quarter (from November 8, 2006) . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.35
13.71
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13
12.74
2008:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.95
11.99
Most recent six months:
February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.73
13.71
March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.00
12.74
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.28
12.00
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.35
11.99
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.95
13.70
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.44
13.72
August (through August 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.17
11.56

Average daily
trading volume(shares)

46,04935,08952,517
48,337
41,211
89,39536,92061,41845,50550,043
169,729

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.

127

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 since March 12, 2003
and for the common stock of Mizuho Holdings until March 5, 2003:
Price per share
High
Low

Fiscal years ended/ending March 31,

2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2008:
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Most recent six months:
February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August (through August 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Average daily
trading volume(shares)¥ 338,000
455,000
560,000
969,000
1,030,000¥ 90,300
58,300391,000
469,000
733,000

61,608
180,447
90,87393,07478,245525,000
747,000
966,000
969,000

469,000
483,000
660,000
812,000

45,867
99,881
142,578
83,746

1,030,000
1,010,000
958,000
917,000

827,000
861,000
791,000
733,000

93,471
63,81971,806
84,415

911,000

707,000

83,015897,000
837,000
788,000
872,000
911,000
876,000
799,000

813,000
733,000
707,000
716,000
842,000
833,000
678,000

89,867
83,91667,016
103,937
77,32951,550220,693

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 and the First Section of
the Osaka Securities Exchange, under the code “8411,” since our establishment as the holding company of theMizuho group on March 12, 2003, as the successor to Mizuho Holdings.
Our ADSs, each representing one five-hundredth of a share of our common stock, have been listed on the
New York Stock Exchange since November 8, 2006 and are quoted under the ticker symbol “MFG”.
9.D. Selling Shareholders
Not applicable.
9.E. Dilution
Not applicable.
9.F. Expenses of the Issue
Not applicable.
128

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
Law; and•any other business incidental to the foregoing.

Our Board of Directors
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 Company Law, however, requires suchdirector to refrain from voting on such matters at meetings of the board of directors.
The Company Law provides that compensation for directors be determined at a general meeting ofshareholders. Our board of directors will determine the compensation for each director without exceeding theupper limit on the aggregate amount of compensation for directors as a group approved by the general meeting ofshareholders. Our board of directors may, by its resolution, leave this decision to the discretion of our president.
The Company Law provides that the board of directors must approve significant loans from any third party
to the company. Our regulations of the board of directors have adopted this policy.
Neither the Company Law 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 Company Law 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 Company Law, which cameinto effect on May 1, 2006 relating to joint stock corporations (kabushiki kaisha) and certain related legislation,
all as currently in effect.
Where relevant to the common stock, provisions of our preferred stock are also described below. Additional
details on the terms of our outstanding preferred stock are given in note 15 to our consolidated financial
statements included elsewhere in this annual report.
Distribution of Surplus
GeneralUnder the Company Law, 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 of times per fiscal
129year pursuant to resolutions of our general meeting of shareholders, subject to certain limitations described in“—Restriction on Distribution of Surplus.” Distributions of Surplus are required in principle to be authorized bya resolution of a general meeting of shareholders. Distributions of Surplus are, however, permitted pursuant to a
resolution of the board of directors if:(1) our articles of incorporation so provide (our current articles of incorporation do not have suchprovision);(2) the normal term of office of our directors is one year; and(3) 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.
In an exception to the above rule, even if the requirements described in (1) through (3) are not met, we are
permitted to make distributions of Surplus in cash to our shareholders by resolutions of the board of directors
once per fiscal year if our articles of incorporation so provide. Our current articles of incorporation provide such
distribution of Surplus as interim dividends, the record date for which is September 30 each year.
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 a general meeting of shareholders or the board of directors
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 a general meeting ofshareholders or (as the case may be) the board of directors, grant the right to our shareholders to require us tomake 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 third
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 also subject to the prior payment of dividends
on shares of preferred stock of ¥20,000 per share of eleventh series class XI preferred stock and ¥30,000 per
share of thirteenth series class XIII preferred stock. In the event we pay an interim dividend on shares of ourcommon stock, an interim preferred dividend of one-half the annual preferred dividend amount is paid on theshares of the two 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 year130

“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
one-half of our goodwill and deferred assets exceeds the total of the stated capital, additional paid-in capital andlegal 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
Ministry of 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 currently have no intention to opt for becoming such a company with respect
to the fiscal year ending March 31, 2007.
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 Company Law) 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.
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 of131such 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 byresolution of the board of directors. When a stock split is to be made, so long as our only class of outstanding
stock is the common stock, we may increase the number of authorized shares in the same ratio as that of suchstock split by amending our articles of incorporation, of which amendment may be effected by resolution of theboard of directors without approval by shareholders.
Generally, shareholders do not need to exchange share certificates for new ones following a stock split, but
certificates representing the additional shares of common stock resulting from the stock split will be issued toshareholders. Before a stock split, we must give public notice of the stock split, specifying the record datetherefor, not less than two weeks prior to such record date.
Fractional Shares and Unit Shares
A holder of fractional shares constituting one-hundredth of one share or any integral multiple thereof areregistered in our register of fractional shares. Fractional shares do not carry voting rights, but holders thereof areentitled to receive dividends and certain other economic rights. No certificate is issued representing fractional
shares. As the transfer of shares generally requires delivery of the share certificates therefor, fractional shares arenormally not transferable. Registered holders of fractional shares may at any time request us to purchase such
fractional shares at the current market price as determined pursuant to the Commercial Code, applicable as aninterim measure. In addition, registered holders of fractional shares may require us to sell them a number offractional shares, of which number, when combined with the number already held by such holder, shall become
one share, provided that such request is met only when we own the necessary number of our shares. As of
March 31, 2007, there were 22,487.49 fractional shares of our common stock. The Company Law abolished theabove fractional share system, except to the extent fractional shares were outstanding at the time of enactment of
the Company Law in which case the interim measure described above is applicable.
We may adopt a unit share system by amending our articles of incorporation, although it is also possible for
us to continue to use the fractional share system as we currently do. If a unit share system is adopted by us
simultaneously with a stock split, the relevant amendment to our articles of incorporation may be authorized by
the board of directors, provided that, following such amendment, the number of units may not be less than thenumber of shares immediately prior to such amendment. Under the unit share system, shareholders have one
voting right for each unit of shares held by them, and shares constituting less than a full unit will carry no voting
rights. If the articles of incorporation so provide, the holders of shares constituting less than a full unit will nothave the right to receive dividends, nor will they have other shareholder rights except for those specified in the
Company Law or an ordinance of the Ministry of Justice. The articles of incorporation may also provide that no
certificates representing any fraction of a unit may be issued. In such case, any fraction of a unit for which noshare certificates are issued will not be transferable. Holders of shares constituting less than a full unit may at any
time request us to purchase such shares at the current market price as determined pursuant to the Company Law,
which request may not be withdrawn without our consent.
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, the132

time 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.
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
A holder of shares of common stock is entitled to one voting right for each such share, except that neither
we, nor a corporation or other entity, more than one-quarter of the total voting rights of which are directly or
indirectly held by us, may exercise its voting rights with respect to shares of common stock held by it. If we
adopt the unit share system as described in “—Fractional Shares,” our shareholders will have one voting right foreach unit of shares held by them.
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 and corporate auditors is
one-third of the total number of voting rights. Our shareholders are not entitled to cumulative voting in theelection of directors. A shareholder may exercise its voting rights in writing or through a proxy, provided that theproxy shall also be a holder of our shares having voting rights at such meeting.
The Company Law 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 by the board of directors under the Company Law such as (i) an increase of the numberof authorized shares in the same ratio as that of a stock split, (ii) a reduction of the number ofshares per unit of shares and (iii) abolishing the unit share system);2.

dismissal of a corporate auditor;

3.

our dissolution, merger or consolidation requiring shareholders’ approval;

4.

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;

5.

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

6.

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

7.

our corporate split requiring shareholders’ approval;

8.

consolidation of shares of common stock;9.

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

10. distribution of Surplus in kind (except when shareholders are granted the right to require to makesuch distribution in cash instead of in kind);
11. issuance or transfer of new shares or existing shares held by us as treasury stock to persons otherthan the shareholders at a “specially favorable” price; and12. issuance of stock acquisition rights (including those incorporated in bonds with stock acquisitionrights) to persons other than the shareholders under “specially favorable” conditions.
133

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 shares of common stock in proportion to the respective numbers of shares held by them. See“—Preferred Stock— Liquidation Rights.”
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 the board of directors determines, subject to the limitations
as to the issuance of new shares of common stock at a “specially favorable” price mentioned in “—Voting
Rights.” The board of directors may, however, determine that shareholders of a particular class of stock shall begiven subscription rights to new shares of the same class, in which case they must be given on uniform terms toall 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.
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 the board of
directors unless it is made 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 resolution of the board of directors and after giving atleast 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.
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
currently authorized by our articles of incorporation);2.

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

3.

from any of our subsidiaries (pursuant to a resolution of the board of directors).

In the case of 2 above, any other shareholder may make a request to a representative director to be included as aseller in the proposed purchase, unless the purchase price or any other consideration to be received by therelevant specific 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 isno trading in the shares on the stock exchange or if the stock exchange is not open on such day, the price atwhich 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.”134

We may hold the shares of common stock acquired, and may generally dispose of or cancel such shares byresolution of 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 Securities and Exchange Law 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 of the shares and to all the Japanese stock
exchanges on which the shares are listed.
There are other reporting requirements under the Banking Law. See “Item 4.B. Business Overview—
Supervision and Regulation—Japan—Examination and Reporting Applicable to 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
Transfer of shares of common stock of a company issuing share certificates is effected by delivery of sharecertificates, but in order to assert shareholders’ rights against us, the transferee must have its name and address
registered in our register of shareholders. For this purpose, shareholders are required to file their names,
addresses and seals with our transfer agent. Foreign shareholders may file specimen signatures in lieu of seals.
Non-resident shareholders are required to appoint a standing proxy in Japan or provide a mailing address inJapan. Japanese securities firms and commercial banks customarily act as standing proxy and provide related
services for standard fees.
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.
The central clearing system of share certificates under the Law Concerning Central Clearing of Share
Certificates and Other Securities of Japan applies to the common stock. Pursuant to this system, a holder of135

common stock is able to choose, at its discretion, to participate in this system and all certificates for shares ofcommon stock elected to be put into this system are deposited with JASDEC (through a participating institution
having a clearing account with JASDEC, if the holder is not such a participating institution) and all such sharesare registered in the name of JASDEC in our register of shareholders. Each participating shareholder will, in turn,be registered in our register of beneficial shareholders and treated in the same way as shareholders registered inour register of shareholders. In connection with transfer of shares of common stock held under this system, entryof the share transfer in the book maintained by JASDEC for the participating institutions or the book maintainedby each participating institution for its customers or both shall have the same effect as delivery of sharecertificates.
A law was promulgated in June 2004 to establish a new central clearing system for shares of listedcompanies and to eliminate the issuance and use of certificates for such shares and the part of this law relevant tocommon stock will come into effect within five years of the date of the promulgation. On the effective date, a
new central clearing system will be established and will become responsible for handling the shares of all
Japanese companies listed on any Japanese stock exchange, including shares of common stock. On the same day,all existing share certificates will become null and void. The transfer of such shares will be effected throughentry in the books maintained under the new central clearing system.
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 theCompany Law 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 relating to the issuanceof the relevant series of preferred stock.
GeneralUnder our articles of incorporation, we are authorized to issue 1,398,500 shares of class XI preferred stock,
1,500,000 shares of class XII preferred stock and 1,500,000 shares of class XIII preferred stock.
As of March 31, 2007, 943,740 shares of eleventh series class XI preferred stock and 36,690 shares ofthirteenth series class XIII preferred stock were outstanding.
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 type of outstanding preferred stock is as follows:•

Eleventh series class XI preferred stock bears an annual non-cumulative dividend of ¥20,000 per share,and in the event we pay an interim dividend, holders are entitled to receive ¥10,000 in preference tocommon shares.

•

Thirteenth series class XIII preferred stock bear an annual non-cumulative dividend of ¥30,000 per
share, and in the event we pay an interim dividend, holders are entitled to receive ¥15,000 in preference
to common shares.

The amount of any preferred interim dividend will be deducted from the preferred dividend payable onpreferred shares in respect of the same fiscal year.
No payment of dividends on our preferred shares or any other shares may be made unless we have sufficient
Distributable Amount and a resolution to pay such dividend is obtained at the relevant ordinary general meetingof shareholders, in the case of annual dividends or at the board of directors, in the case of preferred interim
dividends.
136

Dividends on our preferred shares are non-cumulative. If the full amount of any dividend is not declared on
our preferred shares in respect of any fiscal year, holders of our preferred shares 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 shares are not entitled to any further dividends or other participation inor distribution of surplus.
Liquidation Rights
In the event of our voluntary or involuntary liquidation, holders of shares of our preferred stock will beentitled, equally in rank as among themselves and in preference over shares of common stock, to receive out of
our residual assets upon liquidation a distribution of ¥1,000,000 per share in the case of eleventh series class XI
and thirteenth series class XIII preferred stock.
Holders of shares of our preferred stock are not entitled to any further dividends or other participation or
distribution of our residual assets upon our liquidation.
Voting Rights
No holder of preferred stock has the right to receive notice of, or to vote at, a general meeting ofshareholders, except as otherwise specifically provided under the Company Law or other applicable law or our
articles of incorporation. Under our articles of incorporation, holders of shares of our preferred stock will beentitled to receive 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, 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 in each case such time as 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;(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.
137

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,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 Company Law.
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—Dividends—
Restriction of Dividends”). We may also, acquire all or a portion of the thirteenth series class XIII preferredstock on or after April 1, 2013 at a price of ¥1,000,000 per share, with the equivalent amount of preferred
dividends in arrears to such acquisition, without consent of the holders of shares of such preferred stock. When aportion of a certain class of preferred stock is acquired, such acquisition shall be made from each holder thereofin 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 preferred stock may, at their option, convert
their shares to common stock by requesting us to acquire such shares and issue or transfer common stock tothem. Other classes of our preferred stock outstanding are non-convertible.
Our articles of incorporation also provide that class XI preferred stock outstanding on the last day of theacquisition period will be mandatorily acquired with shares of common stock on the immediately following day
at the then-current market price per share of our common stock.
Eleventh series class XI preferred stock may, at the option of the holder thereof, be acquired with shares ofcommon stock at any time from July 1, 2008 to June 30, 2016 at a market price per share of our common stock asat the commencement date of the acquisition period, subject to anti-dilution adjustment and annual reset to themarket price of our common stock on July 1 of each year. For the purpose of determination of the initialconversion price, the reset of the conversion price and the mandatory conversion price, the market price isdeemed to be the average price of daily closing prices of our common stock on the Tokyo Stock Exchange for the
30 consecutive trading days commencing 45th trading days prior to the commencement date of the conversion
period, the relevant reset date or the mandatory conversion date, respectively. The conversion price is subject tofloor price of ¥50,000 which is also subject to anti-dilution adjustment.
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.
13810.D. Exchange Controls
Foreign Exchange and Foreign Trade Law
The Foreign Exchange and Foreign Trade Law of Japan and the cabinet orders and ministerial ordinances
incidental thereto, collectively the Foreign Exchange Law, 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 our shares or ADSs representing such shares acquired and held by
non-residents of Japan and by foreign investors. Generally, the Foreign Exchange Law currently in effect does
not affect the right 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
which are 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;•

corporations which are organized under the laws of foreign countries or whose principal offices arelocated outside Japan;•

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

Dividends and Proceeds of Sales
Under the Foreign Exchange Law, 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 by way of a stock split is not subject to any notification or reporting
requirements.
Acquisition of Shares
In general, a non-resident who acquires shares from a resident of Japan is not subject to any prior filing
requirement, although the Foreign Exchange Law empowers the Minister of Finance of Japan to require priorapproval for any such acquisition in certain limited circumstances. While such prior approval is not required ingeneral, in the case where a resident of Japan transfers shares of a Japanese company for consideration exceeding¥100 million to a non-resident of Japan, the resident of Japan that transfers the shares is required to report thetransfer to the Minister of Finance of Japan within 20 days from the date of the transfer, unless the transfer ismade through a bank, securities company or financial futures trader licensed 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 within 15 days
from and including the date of such acquisition, except under limited circumstances including an acquisition of
our shares through the offering conducted overseas. In certain limited circumstances, however, a priornotification of such acquisition must be filed with the Minister of Finance and any other competent Minister, who
may modify or prohibit the proposed acquisition.
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Deposit and Withdrawal under American Depositary Facility
The deposit of shares with Mizuho Corporate 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 thewithdrawal 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 ofshares held by the depositary, including shares deposited with Mizuho Corporate Bank as custodian for thedepositary, 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 national tax consequences to holders of shares or
ADSs representing shares of our common stock who are non-residents of Japan or 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 in force and as interpreted by theJapanese tax authorities as at the date of this Annual Report and are subject to changes in the applicable Japaneselaws or tax treaties, conventions or agreements, or interpretations thereof, occurring after that date. Thissummary 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 anddisposition of shares or ADSs, including specifically the tax consequences under Japanese law, the laws of thejurisdiction of which they are resident and any tax treaty, convention or agreement between Japan and theircountry 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.
Generally, a non-resident holder of shares of our stock is subject to Japanese income tax collected by way of
withholding on dividends paid by us, and we will withhold such tax prior to payment of dividends. Stock splits
are, in general, not a taxable event.
In the absence of any applicable tax treaty, convention or agreement reducing the maximum rate ofwithholding 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% 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
who holds 5% or more of the total number of shares issued by the relevant Japanese corporation, theaforementioned 20% withholding tax rate is reduced to (i) 7% for dividends due and payable on or before
March 31, 2009 and (ii) 15% for dividends due and payable on or after April 1, 2009.
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 preceding140

paragraph with respect to the dividends to be paid by us on shares of our common stock or ADSs. In the case of
non-resident holders receiving dividends paid by us on ADSs, any reduced rate or exemption provided under any
applicable tax treaty will be applicable to such non-resident holders if the Depositary or its Agent submits two
Application Forms (one before payment of dividends and the other within eight months after the record dateconcerning such payment of dividends), together with certain other documents. To claim this reduced rate or
exemption, non-resident holders of ADSs will be required to file a proof of taxpayer status, residence andbeneficial ownership, as applicable, and to provide other information or documents as may be required 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 casemay be, but fail to submit the required application in advance may nevertheless be entitled to claim a refund fromthe 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 the applicable tax treaty) or the fullamount of tax withheld (if such non-resident holders are entitled to an exemption under the applicable tax treaty),as the case may be, from the relevant Japanese tax authority, by complying with a certain subsequent filingprocedure.
We do not assume any responsibility to ensure withholding at the reduced rate, or exemption therefrom, forholders who would be eligible under an applicable tax treaty but who do not follow the required procedures asstated above.
Gains derived from the sale or other disposition of shares or ADSs within or outside Japan by a non-resident
holder, who is a portfolio investor, are not, in general, subject to Japanese income tax or corporation tax.
Any deposits or withdrawals of shares by a non-resident holder in exchange for ADSs are, in general, notsubject 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 or ADSs from an individual, as a legatee, heir or donee, even if none of the acquiring individual, thedecedent 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.
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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) that has a valid electionin 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.
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.
The U.S. Treasury has expressed concerns that parties through whom ADSs are pre-released may be taking
actions that are inconsistent with the claiming of foreign tax credits by U.S. holders of ADSs. Such actions would
also be inconsistent with the claiming of the reduced rate of tax, described in “—Taxation of Dividends” below,
applicable to dividends received by certain non-corporate holders. Accordingly, the analysis of the creditabilityof Japanese taxes and the availability of the reduced tax rate for dividends received by certain non-corporate
holders, each described in “—Taxation of Dividends” below, could be affected by actions taken by parties
through whom the ADSs are released.
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
The gross amount of any distribution received with respect to our shares or ADSs (including amounts
withheld to reflect Japanese withholding taxes), will be taxable as dividends, to the extent paid out of the current
or accumulated 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’s142

tax 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 “—Japanese Taxation” above, 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, theJapanese tax withheld will be creditable against the U.S. holder’s U.S. federal income tax liability or may beclaimed 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 paid on the same taxable year. For foreign tax credit limitation purposes, the dividend
will be income from sources outside the United States. The limitation on foreign taxes eligible for credit iscalculated separately with respect to specific classes of income. For this purpose, dividends we pay will generally
constitute “passive 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 before January 1, 2011 from aqualified foreign corporation may be subject to reduced rates of taxation. A qualified foreign corporation
includes a corporation that 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 theserequirements. In addition, it is expected that we will be eligible for the benefits of the Treaty. However, 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. United States Treasury Department guidance indicates that our ADSs will, upon listing on the
New York Stock Exchange, be 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
Upon a sale or other disposition of shares or ADSs, a U.S. holder will recognize gain or loss in an amountequal to the difference between the U.S. dollar value of the amount realized and the U.S. holder’s tax basis,
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determined in U.S. dollars, in such shares or ADSs. Such gain or loss will be capital gain or loss and will belong-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’s tax basis in its shares or ADSs will generally be the cost to the holder of such shares or ADSs. Anysuch gain or loss 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 to limitations.
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 otheradministrative pronouncements from the IRS provide special rules for determining the character of income andassets derived in the banking business for purposes of the PFIC rules. Although we believe we have adopted areasonable interpretation of the Proposed Regulations and administrative pronouncements, there can be noassurance 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 the common stock, 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 the common stock.
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 the common stock will betreated as 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 thecommon stock;•

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 our common stock isregularly traded on a qualified exchange or other market. Our common stock is listed and regularly traded on theTokyo Stock Exchange, so this election will be available to U.S. holders. 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
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fund” under section 1295 of the Code. This option is not available to U.S. holders of common stock 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 common stock in any year in which we are classified as a PFIC, such holder would be
required to file IRS Form 8621.
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 common stock 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 theproceeds from the sale, exchange or redemption of the shares paid within the United States, and, in some cases,
outside of the United States, to you, unless you are an exempt recipient, such as a corporation. 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 make certain certifications. The amount of any backup withholding from a payment to you will beallowed as a refund or credit against your U.S. federal income tax liability, provided you furnish the required
information to the IRS.
10.F. Dividends and Paying Agents
Not applicable.
10.G. Statement by Experts
Not applicable.
10.H. Documents on Display
We file reports, including annual reports on Form 20-F, and other information, including information filed
on Form 6-K, with 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 suchmaterials 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 and Exchange 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 theCommission’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 rapid growth in the diversity andcomplexity of 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
our business 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.
Approach to Basel II
Current regulations for international standards of the health of banks, first implemented in 1992, have beenrevised in light of developments in risk management methods in order to better reflect the actual substance of therisks. These amended regulations, known as “Basel II,” were implemented in Japan beginning in March 2007.
These regulations focus on three main points. The first is minimum capital requirements relating to risk whichshould be maintained by banks, with respect to which the calculation method for credit risk was changed andoperational risk was added. The second is a supervisory review process with respect to assessment of risks thatcannot be fully addressed through minimum capital requirements alone. The third is market discipline allowing
for assessment by the market through appropriate disclosure. Based on the principles of Basel II, we prepared forthe implementation of the prescribed procedures and in March 2007 obtained the necessary approvals of
regulators with respect to the use of calculation methods for each type of risk. In addition, we are moving
forward with a plan to transition to advanced approaches for the calculation of credit risk and operational risk.
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 to
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. More
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specifically, 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 Corporate Bank, Mizuho Bank, Mizuho Securities and Mizuho
Trust & Banking by risk category, and is further allocated within their respective business units based on
established frameworks.
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 and off-balance-sheet instruments, as a result of deterioration in acounterparty’s financial position. We have established the methods and structures necessary for grasping andmanaging credit risk, which has become increasingly complex due to financial deregulation, internationalizationand 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 incredit risk management. The first approach is “credit management,” in which we manage the process for eachindividual transaction and individual obligor from execution until collection, based on our assessment of thecredit 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 tocredit risk. Through this process, we identify credit risk and respond appropriately.
Credit Risk Management Structure
Credit Risk Management of the Mizuho GroupOur board of directors determines the Mizuho group’s basic credit risk management policies. In addition,
the portfolio management committee of Mizuho Financial Group discusses and coordinates basic credit risk
policy and overall credit portfolio management and monitoring for the Mizuho group. The chief risk officer ofMizuho Financial Group is responsible for matters relating to credit risk management planning and operations.
The Risk Management Division and the Credit Risk Management Division of Mizuho Financial Group 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. Eachcompany’s board of directors determines key matters pertaining to credit risk. Our principal banking subsidiaries
have each established business policy committees to discuss and coordinate overall management of theirindividual credit portfolios and transaction policies towards obligors. The senior executive officer of eachprincipal banking subsidiary responsible for risk management oversees matters relating to credit risk
management planning and operations. The credit risk management division of each principal banking subsidiary
is responsible for credit management and credit risk measuring and monitoring, and such division regularlypresents reports regarding the risk management situation of such banking subsidiary to Mizuho Financial Group.
Individual credit examination divisions approve individual transactions in accordance with the lines of authority
set forth in the basic policies for credit risk management. To provide checks and balances, each of our principal
banking subsidiaries has also established credit review divisions to function as internal auditors that are
independent of the business divisions.
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Individual Credit Management
Our principal banking subsidiaries use a unified credit rating system and credit risk measurement tools toascertain and monitor the status of their portfolios. They are also improving their credit decisions and posttransaction management functions by examining individual transactions from these viewpoints, providing
internal audits and risk management guidance to individual business promotion offices. Mizuho Securities andother core group companies follow credit risk management procedures that suit the characteristics of theirrespective business sectors.
Credit business regulations
The basic code of conduct for all of our officers and employees engaged in the credit business is set forth inour credit business regulations. Seeking to fulfill the bank’s public and social role, our basic policy for credit
business is determined in light of fundamental principles focusing on public welfare, safety, growth andprofitability.
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 and claims withsimilar 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.
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 andoff-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 screening
Prevention of new impaired loans through routine credit management is important in maintaining the qualityof our overall loan assets. Credit decisions involve 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 screening. The credit division has specialist departments for different industries,
148

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 rehabilitation.
Collection and disposal of impaired loans
With respect to collection and disposal of impaired loans, a specialist unit is designed to pursue corporate
revitalization or collection efforts as appropriate. Specifically, this typically involves business transfers, mergers
and acquisitions, obtaining funding from business revitalization funds and the bulk sale of impaired loans. In
addition, we concentrate our loan collection needs into Mizuho Servicing Co., Ltd., our subsidiary thatspecializes in performing collection services for our group companies.
Portfolio Management
Risk Measurement
We use statistical methods to manage the possibility of loan losses by measuring the expected average loss
for a one-year risk horizon (“credit cost”) and the maximum loss within a certain confidence interval (“credit
VaR”).
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 certain limits so that losses incurred through a hypotheticalrealization of the full credit VaR amount would be within the amount of risk capital and loan loss reserves.
Risk Control Methods
We recognize two types of risk arising from allowing too large a proportion of overall credit risk to beallocated in certain areas. One type is “credit concentration risk,” which stems from granting excessive credit tocertain individual counterparties. The other type is “chain-reaction default risk,” which arises from granting
excessive credit to certain corporate groups, industrial sectors and other groupings. We manage these risks in linewith 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.
Portfolios of Our Principal Banking Subsidiaries and Certain Other Core Group Companies
Mizuho Bank’s portfolio is diversified among relatively small accounts centered on individuals, domestic
corporations including mainly small and medium-sized enterprises and middle-market corporations, public sector
entities and other customers in Japan. While Mizuho Corporate Bank’s credit portfolio consists primarily of loans
to Japanese public companies and other major Japanese enterprises, it also includes a significant proportion ofloans to overseas corporations, including foreign subsidiaries of Japanese corporations, that are diversified interms of the regions in which the borrowers are located. While retaining the principal features of each of the twobanking subsidiaries’ respective portfolios, we aim to reduce expected losses while simultaneously utilizing
sophisticated financial tools based on which they make strategic acquisitions and sales of assets. While closely
monitoring the potential for unexpected losses, they also aim to raise overall group capital efficiency, boost
profitability and shareholder value, and enhance the sophistication of their credit risk management. To control
credit concentration in certain companies, Mizuho Trust & Banking and Mizuho Securities have set credit limits
according to their customers’ creditworthiness and control their portfolios in an appropriate manner by adheringto these limits.
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 impossible149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.
The following diagram shows our risk management structure:

Market and Liquidity Risk Management Structure
Mizuho FinancialMHFG
GroupBoard of Directors

Executive Management
Committee
ALM & Market Risk
Management Committee

CEO

Head of Risk Management
Group (CRO)

Risk Management Division• Set risk management policies• Approve limits• Give instructions concerning
risk management• Report the risk management
situation• Apply for limits

Core group companies
MizuhoCorporate
Bank

MizuhoBank

MizuhoTrust &
BankingMizuhoSecurities

Other
core groupcompanies

Each core group companies
company
Board of Directors
Executive Management
Committee
ALM
LM & Market Risk
Management Committee

CEO
Senior executive officers
responsible for risk management

Offices
Offices
Middle Offices

Risk Management Division

Board
Front
ofOffices
Directors

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 matters150

relating 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.
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 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 and Mizuho Securities 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. Their boards 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 mattersrelating to basic asset and liability 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 to planning and implementing market risk management. Based on a common group risk
capital allocation framework, the above-mentioned subsidiaries 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.

151

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 isadditionally 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 constructed a system under which we will
be able to respond smoothly in the event of emergency situations that affect our funding by establishing actionplans.
Liquidity Risk Management at Our Principal Banking Subsidiaries and Other Core Group Companies
The liquidity risk management structures of Mizuho Corporate Bank, 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 andconducting liquidity risk management, while the senior executives of the asset and liability management andtrading 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.

152

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. The graphbelow shows daily value-at-risk of trading activities for the fiscal year ended March 31, 2007, and thecorresponding paired distribution of profits and losses:
Back Testing for the fiscal year ended March 31, 2007
assumptive profit or loss
(billions of yen)

7
6
5
4
3
2
1
0
-1
-2
-3
-4
-5
-6
-7
0

1

2

3

4

5

6

7

VaR (billions of yen)

We had no cases where profits/losses exceeded value-at-risk during the period, and we believe this confirmsthat our internal value-at-risk models are reasonably accurate in measuring our group’s market risk exposure.
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. The table below shows the assumed maximum loss resultsof stress testing in trading activities using the methods described above:
As of March 31, 2007
(in billions of yen)

Assumed maximum loss result calculated by stress testing . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥47.4

Outlier Criteria
As part of the new capital adequacy requirements under Basel II, the losses arising from a banking book in
hypothetical interest rate shock scenarios under certain stress conditions are calculated and compared with thesum of Tier 1 and Tier 2 capital. If the interest rate risk of the banking book leads to an economic value declineof more than 20% of the sum of Tier 1 and Tier 2 capital, we will be deemed an “outlier” and may be required toreduce the banking book risk or adopt other responses. We measure losses arising from our banking book eachmonth as a part of our stress tests.
153

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 7.1% 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.
Results of calculations under the outlier framework

Amount ofloss

As of March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of yen interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of dollar interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of euro interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥429.6
161.3
626.1
382.5
212.2
27.9

Broadly-defined
capitalLoss ratio tocapital(in billions of yen, except percentages)¥8,020.2
8,993.2
8,841.3

5.4%
1.8
7.1

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.
Value-at Risk
We use the value-at-risk (VaR) method, supplemented with stress testing, as our principal tool to measuremarket risk. The value-at-risk 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;•

confidence interval: one-tailed 99.0%;•

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

The following tables show the VaR related to our trading activities by risk category for the fiscal years
ended March 31, 2005, 2006 and 2007 and as of March 31, 2005, 2006 and 2007:
Risk category

For the fiscal year ended March 31, 2005
Daily average
Maximum
Minimum(in billions of yen)

As ofMarch 31, 2005

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

¥1.9
1.1
0.9
0.1

¥3.7
2.8
1.5
0.6

¥0.9
0.3
0.6
0.0

¥1.2
0.6
0.9
0.1

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

¥2.9

¥4.3

¥2.0

¥2.2

154

For the fiscal year ended March 31, 2006
Daily average Maximum Minimum(in billions of yen)

Risk category

As ofMarch 31, 2006

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

¥1.7
1.1
1.4
0.2

¥2.7
1.8
3.2
1.7

¥1.1
0.3
0.5
0.0

¥2.4
0.9
3.0
0.1

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

¥3.2

¥5.5

¥2.0

¥5.1

For the fiscal year ended March 31, 2007
Daily average Maximum Minimum(in billions of yen)

Risk category

As ofMarch 31, 2007

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

¥2.3
1.2
1.8
0.2

¥3.9
4.0
3.5
0.4

¥1.4
0.5
0.7
0.0

¥1.5
1.8
1.8
0.3

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

¥4.3

¥6.5

¥3.2

¥3.9

The following graph shows VaR figures of our trading activities for the fiscal year ended March 31, 2007:(VaR : billions of yen)
8
7
6
5
4
3
2
1

07/03/31

07/03/17

07/03/03

07/02/17

07/02/03

07/01/20

07/01/06

06/12/23

06/12/09

06/11/25

06/11/11

06/10/28

06/10/14

06/09/30

06/09/16

06/09/02

06/08/19

06/08/05

06/07/22

06/07/08

06/06/24

06/06/10

06/05/27

06/05/13

06/04/29

06/04/15

06/04/01

0

The following table shows VaR figures of our trading activities for the fiscal years indicated:
Fiscal years ended March 31,
2005
2006
2007
(in billions of yen, except number of cases)

Maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The number of cases where profits/losses exceeded VaR . . . . . . . . . . .
155

¥

4.3
2.0
2.9
no cases

¥

5.5
2.0
3.2
no cases

¥

6.5
3.2
4.3
no cases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 strategic equity portfolio forthe year ended March 31, 2007.
(VaR: billions of yen)
(%)
1.6

350

1.4

300

1.2
250
1.0
200
0.8
150
0.6
100
0.4
50

0.2

0

Interest rate on five-year government bonds

06/04/03
06/04/13
06/04/25
06/05/05
06/05/17
06/05/29
06/06/08
06/06/20
06/06/30
06/07/12
06/07/24
06/08/03
06/08/15
06/08/25
06/09/06
06/09/18
06/09/28
06/10/10
06/10/20
06/11/01
06/11/13
06/11/23
06/12/05
06/12/15
06/12/27
07/01/09
07/01/19
07/01/31
07/02/12
07/02/22
07/03/06
07/03/16
07/03/31

VaR

0.0

The following table shows the VaR figures relating to our banking activities denominated in yen for the
fiscal years indicated:
Fiscal years ended March 31,
2005
2006
2007
(in billions of yen)

Maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥301.5 ¥247.2 ¥251.5
Minimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
186.1
152.8
103.1
Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
235.8
213.9
179.4
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.

•

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. As shown in the156

table, we have reduced overall sensitivity to the risk of future increases in interest rates. Interest rate sensitivity(10 BPV) shows how much net present value varies when interest rates rise by 10 basis (0.1%), and it explains
the impact of interest rate movements on net present value when short- and long-term interest rates behave
differently.
2005

As of March 31,
2006
2007
(in billions of yen)

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

¥ (5)
(34)
(5)

¥ (7)
(14)
(6)

¥ (6)
(21)
(20)

¥ 1
(7)
(14)

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

¥(44)

¥(27)

¥(48)

¥(21)

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
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 iscalculated by taking the greater of (i) VaR on the calculation date and (ii) the average VaR for the preceding 60
business days (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.
The following table shows total market risk equivalent as of March 31, 2007 calculated using thestandardized measurement method and internal models:
As of March 31, 2007
(in billions of yen)Calculated using standardized measurement method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculated using internal models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥138.2¥ 36.7

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

¥174.9Note:
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;•

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 risk andreputational risk. We have determined risk management policies concerning risk management structures andmethods for each kind of risk. Mizuho Corporate Bank, Mizuho Bank, Mizuho Trust & Banking, Mizuho
Securities, Mizuho Investors Securities and Trust & Custody Services Bank each manage operational risk in an
appropriate manner pursuant to risk management policies determined by Mizuho Financial Group.
157

Mizuho Financial Group, Mizuho Corporate Bank, Mizuho Bank, Mizuho Trust & Banking and Mizuho
Securities 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.
Certification of Information Security Management System
Mizuho Financial Group obtained certifications for the Information Security Management Systems of alldivisions of the company under both the Conformity Assessment Scheme, “ISO/IEC27001: 2005,” theinternational standard, and “JIS Q 27001: 2006,” the domestic standard. Mizuho Bank also obtained the same
certifications for its “Planning, promotion and sales supporting divisions of financial products and services forindividuals, corporate and public sector customers” of the head office. Mizuho Financial Group, as the holding
company for the Mizuho group, is responsible for the planning, design and promotion of information security
management of its group companies and has implemented various measures to enhance our management of
information security, including protection of personal information. Mizuho Financial Group will encourage its
other group companies to obtain similar certifications and will continue to make efforts to further strengthen
information security management of the entire group.
Operations Risk Management
Operations risk is the 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 their tasks properly, cause
accidents or otherwise act improperly.
In line with our basic policies regarding operations risk management, we have established a structure for
improving operations by identifying and adopting appropriate measures for mitigating operations risk. Morespecifically, we have established clearly defined procedures for handling operations and periodically checking
the status of operational processes. We have strengthened central operational guidance and oversight and areworking to improve the operational expertise of staff and the risk management capabilities of managers. We arealso implementing other policies, including the introduction of information technology, office automation andcentralization to ensure efficient operations that reduce human error. Further, we are improving the effectivenessof our emergency responses by holding drills and taking other steps to minimize the impact of any possible
system failure or disaster on our customers.
Information Technology Risk Management
Information technology risk is the 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 in computer
operations, or illegal or unauthorized use of computer systems.
In line with our basic policies regarding system risk management as well as our information security policy,
we continue to make determined efforts to ensure the stability of our information technology operations and theprotection and safety of informational assets relating to systems. More specifically, we are pushing ahead withvarious efforts, identifying and evaluating information technology-related risk, implementing risk mitigation
measures based on these evaluations, ensuring ongoing project management in such areas as process
management in systems development and quality control and strengthening security to prevent information leaks.
Further, we are improving the effectiveness of our emergency responses by improving our backup systems
and holding drills and taking other steps to minimize the impact of any possible system failures or disasters on
customers.
158

Reputational Risk Management
Reputational risk is the risk of incurring tangible or intangible losses as a result of damage to our credibilityor the credibility of the Mizuho brand when market participants or others learn about, or the media reports on,
various adverse events, including those that are inaccurate or false.
Mizuho Financial Group has established a framework under which, in the event it receives reports fromcompanies within the Mizuho group concerning information that may have a serious impact on groupmanagement, it identifies and manages the reputational risk for the group as a whole on an integrated basis andresponds to such reputational risk in a manner appropriate to its scale and nature.
Each of our group companies also works to identify rumors swiftly and minimize possible losses bydevising appropriate responses depending on the urgency and possible impact of the situation.
Compliance
We consider ongoing compliance to be one of the fundamental principles of sound business management,
and 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 Corporate Bank and Mizuho Bank eachgenerally oversees compliance matters of the respective company, and such chief executive officers also head
their respective compliance committees at which important matters concerning compliance are discussed. The
three companies also have individual compliance divisions under a chief compliance officer. These divisions are
responsible for compliance planning and implementation and control overall compliance management at therespective companies. At the level of each organizational unit (such as branches and divisions) at the threecompanies, the head of the unit is responsible for guidance and implementation related to compliance matterswithin such unit, and the compliance officer or the compliance administrator at each unit reviews the status ofcompliance.
Other core group companies such as Mizuho Trust & Banking and Mizuho Securities have also establishedcompliance structures adapted to the characteristics of their 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 primary self
assessments by individual organizational units and secondary assessments by the internal audit division of eachcompany.
159

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,
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 and chief executive officer 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 Corporate Bank and Mizuho Bank
Mizuho Corporate Bank and Mizuho Bank have also established internal audit committees that are
independent of their other business operations.
Mizuho Corporate Bank and Mizuho Bank have established internal audit divisions and credit review
divisions to conduct internal audits at their respective domestic and overseas business offices, head officedivisions and group companies. Specifically, the internal audit divisions assess the suitability and effectiveness ofbusiness activities associated with compliance and risk management. The credit review divisions audit credit
ratings and the status of credit management in addition to auditing the self-assessment of assets to verify theaccuracy and suitability of matters deemed necessary to assure the soundness of assets.
Other Core Group Companies
Mizuho Trust, Mizuho Securities and our other core group companies have also established effective andefficient internal audit structures adapted to the characteristics of their respective businesses.

160

ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable.

161

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

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 Exchange Act) as of March 31, 2007.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including
the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly,
even effective disclosure controls and procedures can only provide reasonable, not absolute, assurance ofachieving their control objectives. 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 ofcompliance with the policies or procedures may deteriorate. Based upon the evaluation referred to above, ourChief Executive Officer and Chief Financial Officer concluded that the design and operation of our disclosure
controls and procedures as of March 31, 2007 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.
During the period covered by this annual report, there were no changes in our internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, our internal control overfinancial reporting.
This annual report does not include a report of management’s assessment regarding internal control overfinancial reporting or an attestation report of our independent registered public accounting firm due to a transition
period established by rules of the SEC for newly public companies.
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERTOur board of corporate auditors has determined that Mr. Masahiro Seki is an “audit committee financial
expert” as defined in Item 16A of Form20-F and is “independent” as defined in the listing standards of the
NYSE. Mr. Seki, a corporate auditor, has spent most of his career auditing Japanese companies that prepare theirfinancial statements based on accounting standards generally accepted in the United States as well as
multinational companies that operate in Japan and is a Japanese-qualified certified public accountant.
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.

162

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Fees for Services provided by Ernst & Young ShinNihon
The aggregate fees billed by Ernst & Young ShinNihon (“E&Y”), our independent registered public
accounting firm, and its affiliates, for the fiscal years ended March 31, 2006 and 2007 are presented in thefollowing table:
Fiscal year ended March 31,
2006
2007
(in millions of yen)

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

¥5,1691,276
76
11¥3,970
1,143
60
3Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥6,531¥5,176

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. Audit fees for the fiscal year ended
March 31, 2006 were significantly higher than the audit fees for the fiscal year ended March 31, 2007
because audit fees for the fiscal year ended March 31, 2006 also included the audit fees of U.S. GAAP
financial statements for the previous fiscal year pursuant to a blanket audit engagement covering both fiscal
years.
(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.
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, Inc. and its subsidiaries must apply to our corporate
auditors for pre-approval before entering into an agreement regarding audit and permitted non-audit services with
E&Y.

163

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 a given fiscal year. Ourboard of corporate auditors reviews the fees for eachservice and the maximum amount of aggregate fees that
may be incurred 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, specificpre-approval by our corporate auditors is required prior toeach engagement. With respect to such services, two fulltime corporate auditors must provide pre-approval andreport such pre-approval at the monthly meeting of theboard of corporate auditors.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Mizuho Financial Group does not have an audit committee. We are relying on the general exemption
contained in Rule 10A-3(c)(3) under the Exchange Act, which provides an exemption from the NYSE’s listing
standards relating to audit committees for foreign companies that have a board of corporate auditors that meet therequirements set forth in Rule 10A-3(c)(3). Our reliance on Rule 10A-3(c)(3) does not, in our opinion, materiallyadversely affect the ability of our board of corporate auditors to act independently and to satisfy the otherrequirements of Rule 10A-3.

164

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, 2007:

Total Number of
Shares Purchased

Average Price
Paid per ShareTotal Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs

April 1 to April 30, 2006 . . . . . . . . . . . . . . .
May 1 to May 31, 2006 . . . . . . . . . . . . . . . .
June 1 to June 30, 2006 . . . . . . . . . . . . . . . .
July 1 to July 31, 2006 . . . . . . . . . . . . . . . . .
August 1 to August 31, 2006 . . . . . . . . . . . .
September 1 to September 30, 2006 . . . . . . .
October 1 to October 31, 2006 . . . . . . . . . . .
November 1 to November 30, 2006 . . . . . . .
December 1 to December 31, 2006 . . . . . . .
January 1 to January 31, 2007 . . . . . . . . . . .
February 1 to February 28, 2007 . . . . . . . . .
March 1 to March 31, 2007 . . . . . . . . . . . . .

68.32
60.55
36.77
133.96
119.67
86.94
81.71
58.74
73.52
64.03
68.89
55.82

¥979,058
962,770
895,486
970,600
953,363926,042921,838
881,914
843,480
885,012865,455
806,062

—
—
—
—
—
—
—
—
—
—
—
—

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

908.92¥916,643—

Maximum
Number of Sharesthat May Yet Be
Purchased Under
the Plans or
Programs

—
—
—
—
—
—
—
—
—
—
—
—
—

Notes:(1) A total of 908.92 shares were purchased other than through a publicly announced plan or program during
the fiscal year ended March 31, 2007, due to our purchase of fractional shares from registered holders offractional shares at the current market price of those shares.
(2) In addition to the purchases shown in the table above, on July 7, 2006 and May 28, 2007, we repurchasedand cancelled 131,800 and 261,040.83 shares, respectively, of our common stock held by Mizuho Financial
Strategy.

165

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 pageF-1 of this annual report.
ITEM 19.

EXHIBITS

Exhibit
NumberDescription of Exhibits*

1.1

Articles of Incorporation of Mizuho Financial Group, Inc., dated June 26, 2007 (English Translation)

1.2

Bylaws Regarding the Board of Directors of Mizuho Financial Group, Inc., effective from January 8,
2003 and as amended on June 27, 2006 (English Translation)*

1.3

Regulations of Board of Corporate Auditors of Mizuho Financial Group, Inc., effective from January
9, 2003 and as amended on September 25, 2006 (English Translation)*

1.4

Share Handling Regulations of Mizuho Financial Group, Inc., dated June 15, 2007 (English
Translation)

2.1

Specimen of common stock certificates*

2.2

Form of American Depositary Receipt*

2.3

Form of Deposit Agreement among the registrant, The Bank of New York as Depositary and allowners 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

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).
Incorporated by reference to our registration statement on Form 20-F (No. 001-33098) filed on October 19,
2006.

166

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 integrated globally, the MHFG Group has
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 such methods to be
representative of the Group’s operations.

A-1

I. Distribution of assets, liabilities and shareholders’ 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, 2005, 2006 and 2007. 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.
2005

Averagebalance2006

Interest anddividend Average
incomeyield

Averagebalance

2007

Interest anddividend Average
incomeyield

Averagebalance

Interest anddividend Average
incomeyield(in millions of yen, except percentages)

Assets:Interest-earning assets:
Interest-bearing deposits inother banks:
Domestic . . . . . . . . . . .
Foreign . . . . . . . . . . . .

1,185,724
562,228

16,756
13,246

1.41%
2.36%

876,669
623,755

25,25625,753

2.88%
4.13%

585,726
1,231,120

29,72946,856

5.08%
3.81%

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

1,747,952

30,0021.72%

1,500,424

51,0093.40%

1,816,846

76,585

4.22%

Call loans and funds sold,
and receivables underresale agreements andsecurities borrowing
transactions:
Domestic . . . . . . . . . . .
Foreign . . . . . . . . . . . .

8,270,811
5,873,191

4,447
113,136

0.05%
1.93%

7,695,098
7,284,547

5,108
262,218

0.07%
3.60%

7,965,490
9,574,941

25,396477,841

0.32%
4.99%

Total . . . . . . . . . . . . . . 14,144,002

117,583

0.83% 14,979,645

267,326

1.78% 17,540,431

503,2372.87%

6,470,198
3,981,682

28,25945,089

0.44%
1.13%

7,832,031
3,906,496

20,49440,794

0.26%
1.04%

6,695,053
3,865,653

19,87749,603

0.30%
1.28%

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

Total . . . . . . . . . . . . . . 10,451,880

73,348

0.70% 11,738,527

61,288

0.52% 10,560,706

69,4800.66%

Investments:
Domestic . . . . . . . . . . . 27,369,489
Foreign . . . . . . . . . . . . 4,653,561

116,245
167,341

0.42% 30,404,607
3.60% 7,566,952

155,345
295,141

0.51% 28,106,504
3.90% 8,882,618

234,150
378,751

0.83%
4.26%

Total . . . . . . . . . . . . . . 32,023,050

283,586

0.89% 37,971,559

450,486

1.19% 36,989,122

612,901

1.66%

Loans (Note):
Domestic . . . . . . . . . . . 60,500,762
Foreign . . . . . . . . . . . . 5,759,531

935,924
174,985

1.55% 58,348,102
3.04% 7,269,244

836,483
291,315

1.43% 58,401,018
4.01% 9,641,893

899,095
478,009

1.54%
4.96%

Total . . . . . . . . . . . . . . 66,260,293 1,110,909

1.68% 65,617,346 1,127,798

1.72% 68,042,911 1,377,104

2.02%

Total interest-earning
assets:Domestic . . . . . . . . . . . 103,796,984 1,101,631
Foreign . . . . . . . . . . . . 20,830,193
513,797

1.06% 105,156,507 1,042,686
2.47% 26,650,994
915,221

0.99% 101,753,791 1,208,247
3.43% 33,196,225 1,431,060

1.19%
4.31%

Total . . . . . . . . . . . . . . 124,627,177 1,615,428

1.30% 131,807,501 1,957,907

1.49% 134,950,016 2,639,307

1.96%

5,254,894

4,929,162

2,208,468

Noninterest-earning assets:
Cash and due frombanks . . . . . . . . . . . . . .
Other noninterest-earning
assets . . . . . . . . . . . . . .
Allowance for loan
losses . . . . . . . . . . . . . .

5,610,550

6,106,938

6,323,847(2,347,552)(1,566,891)(1,248,843)

Total noninterestearning assets . . . . .

8,517,892

9,469,209

7,283,472

Total average assets . . . . . . . . 133,145,069

141,276,710

142,233,488

Note: Average balances of loans include all nonaccrual loans. The amortized portion of net loan origination fees (costs) is included ininterest income on loans.

A-2

Within total average assets, the percentage attributable to foreign activities was 16.1%, 20.3% and 24.1%,
respectively, for the fiscal years ended March 31, 2005, 2006 and 2007.
Averagebalance2005
Interest
expense2006
Average
Average
Interest Average
Averageratebalanceexpenseratebalance(in millions of yen, except percentages)

2007
Interest
expenseAveragerate

Liabilities andshareholders’ equity:
Interest-bearing
liabilities:
Deposits:
Domestic . . . . 67,999,168
Foreign . . . . . . 2,988,780

73,63458,003

0.11% 60,741,984
1.94% 5,489,960

121,644
154,530

0.20% 62,072,831
2.81% 8,675,000

234,520
349,091

0.38%
4.02%

Total . . . . . . . . 70,987,948

131,637

0.19% 66,231,944

276,174

0.42% 70,747,831

583,6110.82%

Debentures—
Domestic . . . . . . 8,579,960
Short-termborrowings(Note):
Domestic . . . . 19,535,953
Foreign . . . . . . 8,385,717

68,6690.80%

7,256,478

48,2080.66%

5,629,233

34,0830.61%

23,584
158,945

0.12% 21,047,835
1.90% 11,007,913

37,380388,755

0.18% 19,220,281
3.53% 12,651,419

81,708620,465

0.43%
4.90%

Total . . . . . . . . 27,921,670

182,529

0.65% 32,055,748

426,135

1.33% 31,871,700

702,173

2.20%

Trading accountliabilities:
Domestic . . . .
Foreign . . . . . .

4,091,023
3,110,612

32,27022,382

0.79%
0.72%

5,145,935
3,254,557

33,736
19,103

0.66%
0.59%

4,658,215
3,597,178

13,68058,020

0.29%
1.61%

Total . . . . . . . .

7,201,635

54,6520.76%

8,400,492

52,8390.63%

8,255,393

71,7000.87%

Long-term debt:
Domestic . . . .
Foreign . . . . . .

5,945,685
818,874

124,218
16,868

2.09%
2.06%

6,430,593
734,500

126,063
15,476

1.96%
2.11%

5,796,640
455,893

161,332
18,490

2.78%
4.06%

Total . . . . . . . .

6,252,533

6,764,559

141,086

2.09%

7,165,093

141,539

1.98%

179,822

2.88%

Total interestbearing
liabilities:
Domestic . . . . 106,151,789
Foreign . . . . . . 15,303,983

322,375
256,198

0.30% 100,622,825
1.67% 20,486,930

367,031
577,864

0.36% 97,377,200 525,323
2.82% 25,379,490 1,046,066

0.54%
4.12%

Total . . . . . . . . 121,455,772

578,573

0.48% 121,109,755

944,895

0.78% 122,756,690 1,571,389

1.28%

Noninterest-bearing
liabilities . . . . . . . . . .

7,580,961

16,343,314

15,390,390

Shareholders’ equity . . .

4,108,336

3,823,641

4,086,408

Total average liabilities
and shareholders’equity . . . . . . . . . . . . . 133,145,069

141,276,710

142,233,488

Net interest income andaverage interest rate
spread . . . . . . . . . . . . .
Net interest income as apercentage of average
total interest-earning
assets . . . . . . . . . . . . .

1,036,855

0.82%

1,013,012

0.83%

0.71%

0.77%

1,067,918

0.68%

0.79%

Note: Short-term borrowings consist of Due to trust accounts, Call money and funds purchased, Payables under
repurchase agreements and securities lending transactions, Commercial paper, and Other short-termborrowings.
A-3

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 12.7%, 15.9% and 19.0%,
respectively, for the fiscal years ended March 31, 2005, 2006 and 2007.
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, 2006
compared to the fiscal year ended March 31, 2005 and the fiscal year ended March 31, 2007 compared to thefiscal year ended March 31, 2006. 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, 2006 Fiscal year ended March 31, 2007
versusversusfiscal year ended March 31, 2005 fiscal year ended March 31, 2006
Increase (decrease)
Increase (decrease)
due to changes indue to changes in
Net
Net
VolumeYieldchangeVolumeYieldchange(in millions of yen)Interest and dividend income:Interest-bearing deposits in other banks:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2,847)
1,588

11,347
10,9198,500
12,507(3,453)
22,945

7,926(1,842)

4,473
21,103

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

(1,259)22,26621,007

19,492

6,084

25,576(279)
940
32,305 116,777

661
149,082

186
96,738

20,102
118,885

20,288215,623

32,026

117,717

149,743

96,924

138,987

235,911

8,583 (16,348)(838) (3,457)(7,765)(4,295)(8,466)
(421)

7,849
9,230

(617)
8,809

(19,805) (12,060)(8,887)

17,0798,192

Call loans and funds sold, and receivables underresale agreements and securities borrowing
transactions:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,745

Investments:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,815112,577

25,285
15,223

39,100127,800(10,733)
54,43089,53829,18078,80583,610Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

126,392

40,508

166,900

43,697

118,718

162,415(32,503) (66,938) (99,441)
759
52,46863,862 116,330 108,142

61,85378,55262,612
186,694

19,965

140,405

249,306(13,231) (45,714) (58,945) (21,707) 187,268

165,561

Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

198,100

203,324

401,424

281,834

234,005

515,839

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

184,869

157,610

342,479

260,127

421,273

681,400

Loans:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total interest and dividend income:Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A-4(3,076)

16,889108,901

Fiscal year ended March 31, 2006
Fiscal year ended March 31, 2007
versusversusfiscal year ended March 31, 2005
fiscal year ended March 31, 2006
Increase (decrease)
Increase (decrease)
due to changes indue to changes in
Net
Net
VolumeRatechangeVolumeRatechange(in millions of yen)Interest expense:
Deposits:
Domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . .

(6,900)62,75454,91033,77348,01096,527

2,722
111,782

110,154
82,779112,876
194,561

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

55,854

88,683

144,537

114,504

192,933

307,437

Debentures—Domestic . . . . . . . . . . . . . . . .
Short-term borrowings:
Domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . .

(9,736) (10,725)(20,461) (10,124)

1,947
61,11011,849168,700

13,796229,810(2,945) 47,273
44,32864,302 167,408 231,710

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

63,057

180,549

243,606

61,357

Trading account liabilities:
Domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . .

4,248
1,100

(2,782)(4,379)1,466(3,279)(2,939) (17,117) (20,056)
2,211
36,70638,917

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

5,348(7,161)(1,813)(728)

19,58918,861Long-term debt:
Domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . .

7,568(1,788)(5,723)396

1,845 (10,826)(1,392) (2,096)

46,095
5,110

35,2693,014

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

5,780(5,327)453

51,20538,283(2,873) 47,529
123,176 198,490

44,656
321,666(24,112) 182,404
176,199 292,003

158,292
468,202120,303366,322152,087

474,407626,494(10,358) (93,243) (103,601)
2,405
74,924
4,834
79,758 105,635

4,864(57,998)

7,269
47,63764,566(53,134)

54,906

Total interest expense:
Domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income:Domestic . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

A-5

246,019(88,409)(12,922)(23,843) 108,040(4,001) (14,125)

214,681

276,038

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, 2005, 2006 and 2007:
2005

2006
2007
Net
Net
Net
unrealized
unrealized
unrealized
gains
gains
gains
Amortized
Amortized
Amortized
cost
Fair value (losses)
cost
Fair value (losses)
cost
Fair value (losses)(in millions of yen)

Available-for-sale securities:
Domestic:
Japanese government
bonds . . . . . . . . . . . . . . . 21,682,462 21,529,304 (153,158)19,522,100 19,291,447 (230,653)14,524,884 14,516,016(8,868)Mortgage-backed
securities . . . . . . . . . . . .
110,051
110,702651
207,595
203,047(4,548) 261,629
258,645(2,984)
Corporate bonds and otherdebt securities . . . . . . . . 2,568,799 2,587,557
18,758 4,324,059 4,284,509 (39,550) 5,392,064 5,371,722 (20,342)
Equity securities(marketable) . . . . . . . . . . 2,136,632 4,315,280 2,178,648 2,391,200 6,011,532 3,620,332 2,514,198 6,169,088 3,654,890
Total domestic . . . . . . . . . . 26,497,944 28,542,843 2,044,899 26,444,954 29,790,535 3,345,581 22,692,775 26,315,471 3,622,696
Foreign:
U.S. Treasury bonds . . . . . . 2,122,711 2,039,834
Other foreign gov’t
bonds . . . . . . . . . . . . . . .
767,121
777,358
Mortgage-backed
securities . . . . . . . . . . . . 1,534,494 1,503,155
Corporate bonds and otherdebt securities . . . . . . . .
602,914
601,554
Equity securities(marketable) . . . . . . . . . .
15,87329,483
Total foreign . . . . . . . . . . . 5,043,113 4,951,384(82,877) 1,172,281 1,173,801

1,520 2,044,045 2,051,847

7,802

10,237 1,677,222 1,695,649

18,427 2,866,136 2,996,479

130,343(31,339) 2,102,681 2,165,927

63,246 2,744,396 2,790,150

45,754(1,360) 1,314,374 1,309,828(4,546) 1,633,972 1,621,880(12,092)

13,61019,494

94,84017,97998,141 9,365,410 9,555,196

189,786

37,615

57,109(91,729) 6,304,173 6,402,314

76,861

Total . . . . . . . . . . . . . . . . . . . . 31,541,057 33,494,227 1,953,170 32,749,127 36,192,849 3,443,722 32,058,185 35,870,667 3,812,482
Held-to-maturity securities:
Domestic:
Japanese government
bonds . . . . . . . . . . . . . . . 1,117,496 1,124,118
Corporate bonds and otherdebt securities . . . . . . . .
52,91153,482
Total domestic . . . . . . . . . . 1,170,407 1,177,600

6,622 1,168,206 1,163,791
571

51,43551,081(4,415)

969,069

967,192(354)

49,971(1,877)

49,797(174)

7,193 1,219,641 1,214,872(4,769) 1,019,040 1,016,989(2,051)

Foreign:
U.S. Treasury bonds . . . . . .

289,160

283,205(5,955)316,508

305,606(10,902)

318,579

312,394(6,185)

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

289,160

283,205(5,955)316,508

305,606(10,902)

318,579

312,394(6,185)(15,671) 1,337,619 1,329,383(8,236)

Total . . . . . . . . . . . . . . . . . . . . 1,459,567 1,460,805

1,238 1,536,149 1,520,478

A-6

The following table shows the book values, contractual maturities and weighted average yields of available-for-saleand held-to-maturity debt securities at March 31, 2007. Fair value and amortized cost are the basis of the book value
for available-for-sale and held-to-maturity debt securities, respectively. Weighted average yields are calculated basedon amortized cost for all debt securities.
Maturity

Available-for-sale securities:
Domestic:
Japanese government
bonds . . . . . . . . . . . . . . . . .
Mortgage-backed
securities . . . . . . . . . . . . . .
Corporate bonds and otherdebt securities . . . . . . . . . .

One year or less
AmountYield

After one year
After five years
through fivethrough ten
years
years
After ten years
AmountYield
AmountYield
AmountYield(in millions of yen, except percentages)

Total
AmountYield

5,764,350

0.46%

5,288,361

0.58%

2,050,467

1.04%

1,412,838

0.94%

14,516,016

0.63%

—

— %

—

— %

—

— %

258,645

1.91%

258,645

1.91%

546,6640.76%

2,552,879

0.86%

1,007,615

0.74%

1,264,564

0.43%

5,371,722

0.69%

6,311,014

0.48%

7,841,240

0.67%

3,058,082

0.94%

2,936,047

0.80%

20,146,383

0.67%

67,9904.97%

1,044,923

4.47%

913,547

4.42%

25,3874.62%

2,051,847

4.47%

814,787

3.09%

1,130,261

3.01%

996,770

3.58%

54,661

4.09%

2,996,479

3.24%

26,6846.00%

217,834

5.28%

246,908

4.62%

2,298,724

5.10%

2,790,150

5.08%

208,5703.21%

867,137

4.02%

221,947

4.68%

324,226

4.69%

1,621,880

4.04%

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

1,118,031

3.29%

3,260,155

3.90%

2,379,172

4.11%

2,702,998

5.03%

9,460,356

4.19%

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

7,429,045

0.91%

11,101,395

1.62%

5,437,254

2.33%

5,639,045

2.82%

29,606,739

1.80%

479,7400.37%

489,329

0.52%

—

— %

—

— %

969,069

0.45%

Total domestic . . . . . . . . . . . .
Foreign:
U.S. Treasury bonds . . . . . . .
Other foreign gov’t
bonds . . . . . . . . . . . . . . . . .
Mortgage-backed
securities . . . . . . . . . . . . . .
Corporate bonds and otherdebt securities . . . . . . . . . .

Held-to-maturity securities:
Domestic:
Japanese government
bonds . . . . . . . . . . . . . . . . .
Corporate bonds and otherdebt securities . . . . . . . . . .

—— %49,971

0.75%

—

— %

—

— %

49,971

0.75%

Total domestic . . . . . . . . . . . . . .

479,740

0.37%

539,300

0.55%

—

— %

—

— %

1,019,040

0.46%

Foreign:
U.S. Treasury bonds . . . . . . .

35,4253.17%

283,154

3.45%

—

— %

—

— %

318,579

3.42%

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

35,4253.17%

283,154

3.45%

—

— %

—

— %

318,579

3.42%

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

515,165

0.56%

822,454

1.55%

—

— %

—

— %

1,337,619

1.17%

Other than U.S. Treasury bonds, U.S. government agency securities, which are included within foreign mortgage-backed
securities in the above table, and Japanese government bonds, the MHFG Group held the following securities of individual
issuers in which the aggregate book value exceeded 10% of the Group’s shareholders’ equity at March 31, 2007:
Amortized cost
Fair value(in millions of yen)

German government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
French government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,480,454
810,022

1,438,332
789,786

In addition to Available-for-sale securities and Held-to-maturity securities, the MHFG Group’s Investments also
include Other investments. See Note 4 “Investments” to the consolidated financial statements included elsewhere inthis 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, 2004, 2005,
2006 and 2007. Categorization of loans by industry is based on the loan classifications designated by the Bank ofJapan for regulatory reporting purposes.
2004

2005
2006
(in millions of yen)

2007

Domestic: (1)Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . .
Other industries (2) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals:
Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,219,534
2,047,612
6,906,237
8,983,810
8,161,628
2,983,403
7,897,622
1,581,739
4,344,988

7,943,154
1,745,172
6,616,466
6,904,944
7,337,985
2,854,582
6,201,142
3,456,814
4,703,022

7,792,723
1,563,511
7,046,668
6,308,198
6,929,994
2,789,525
6,540,940
4,574,072
5,184,264

7,662,036
1,502,442
6,647,086
6,120,059
6,356,583
2,594,601
4,286,617
6,099,359
5,451,861

10,895,420
1,285,310

10,536,877
1,384,540

10,655,069
1,317,167

11,025,079
1,338,493

Total domestic . . . . . . . . . . . . . . . . . . . . . . .

64,307,303

59,684,698

60,702,131

59,084,216

Foreign:
Commercial and industrial . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . .
Other (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,760,209
386,681
152,133
46,356

5,033,023
671,678
161,330
77,568

6,104,658
1,437,166
330,987
205,411

7,963,577
1,675,503
366,292
184,898

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

5,345,379

5,943,599

8,078,222

10,190,270

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unearned income and deferred loan fees-net . . . . . .

69,652,682
51,30965,628,297
58,961

68,780,353
69,392

69,274,486
91,619Total loans before allowance for loan losses . . . . . . . . . . .

69,601,373

65,569,336

68,710,961

69,182,867

Notes:(1) Certain amounts in the prior periods have been reclassified to conform to the current period’s presentation.
(2) Other industries of domestic and other of foreign include trade receivables and lease receivables of
consolidated variable interest entities.

A-8

There were no concentrations of loans exceeding 10% of total loans which are not disclosed as a category ofloans in the table above.
Quantitative information regarding loans outstanding under U.S. GAAP as of March 31, 2003 is not available.
However, the MHFG Group observed the following trends with respect to loans outstanding since March 31,
2003:•

The volume of domestic loans decreased in almost all industries except government and public
institutions. In particular, loans to manufacturing, wholesale and retail, and banks and other financial
institutions declined significantly.

•

The balance of foreign loans decreased after realigning the banking operations of the MHFG Group in
April 2002 through the fiscal year ended March 31, 2004, as the Group gave priority to improvement in
the quality of its loan portfolio and endeavored to decrease its risk-weighted assets, along with theGroup’s strategy to restructure its foreign operations. As a result, the proportion of foreign loans to totalloans decreased to below 8% as of March 31, 2004. Since that date, the balance of foreign loans has
been increasing in terms of both volume and proportion within total loans and reached ¥10 trillion and14.71%, respectively, as of March 31, 2007. This was mainly due to the Group’s efforts to expand its
lending mainly to non-Japanese corporate customers.

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,
2007:

One year or
less

Maturity
After oneyear through five
After five
years
years
(in millions of yen)

Total

Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . .
Government and public institutions . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,538,215
806,106
2,592,046
2,668,213
4,077,424
850,477
2,038,706
5,630,211
4,191,337
1,396,888

2,692,982
561,6392,948,400
2,516,620
1,933,700
1,208,934
1,606,926
244,272
917,379
2,589,002

430,839
134,697
1,106,640
935,226
345,459
535,190
640,985
224,876
343,145
8,377,682

7,662,036
1,502,442
6,647,086
6,120,059
6,356,583
2,594,601
4,286,617
6,099,359
5,451,861
12,363,572

Total domestic . . . . . . . . . . . . . . . . . . . . . . . .

28,789,623

17,219,854

13,074,739

59,084,216

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

3,636,580

4,503,237

2,050,453

10,190,270

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

32,426,203

21,723,091

15,125,192

69,274,486

Foreign:

Of the above loans due after one year, loans which had floating rates and fixed rates at March 31, 2007 were as
follows:(in millions of yen)

Floating rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24,692,291
12,155,992

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

36,848,283

A-9

Impaired loans
The MHFG Group considers both loans that are subject to Statement of Financial Accounting Standards(“SFAS”) No.114, “Accounting by Creditors for Impairment of a Loan—an amendment of FASB statement No.5
and 15” (“SFAS No.114”) and small balance, homogenous loans to be impaired when it is probable that the
MHFG Group will be unable to collect all the scheduled payments of principal and interest when due according
to the contractual terms of the loan. Among other things, restructured loans under SFAS No.15, “Accounting byDebtors and Creditors for Troubled Debt Restructuring” (“SFAS No.15”) and loans that are 90 days or moredelinquent are generally considered to be impaired. All of the MHFG Group’s impaired loans are designated as
nonaccrual loans. The following table shows the distribution of impaired loans at March 31, 2004, 2005, 2006
and 2007 by domicile and industry of borrower:
2004

2005
2006
(in millions of yen)

2007

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

556,251
182,003531,860
504,868
877,944
60,38277,505
161,802280,179

133,109
98,314
316,843
292,016
410,529
220,812
8,445
50,531
231,990106,094
53,213
188,474
140,044
202,758
315,784
4,876
8,686
139,678

96,75971,577
118,985
167,599
216,744371,283
292,7538,619
137,226

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,232,794

1,762,589

1,159,607

1,481,545

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

136,696

80,72469,81047,321

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

3,369,490

1,843,313

1,229,417

1,528,866

Foreign:

Quantitative information regarding impaired loans outstanding under U.S. GAAP as of March 31, 2003 is notavailable. However, the MHFG Group observed the following trends with respect to impaired loans since
March 31, 2003. The collapse of the “bubble economy” in the 1990’s and the subsequent asset deflation andprolonged economic weakness in Japan adversely affected the financial condition of many corporations, leading
to a significant increase in the amount of the Group’s impaired loans, particularly loans to borrowers in the realestate and wholesale and retail industries. In 2002, the Japanese government introduced various measures as partof its Financial Revitalization Program. The goal of these measures was to reduce by half the amount of problem
loans in the Japanese financial sector by March 31, 2005. In 2003, the Group established “revitalization
subsidiaries” that specialized in promoting early corporate revitalization of customers and transferred loans ofmany troubled borrowers to them. The Group took many actions to reduce the amount of its impaired loans, suchas collections, charge-offs and disposals as well as improving the borrowers’ credit rating through restructuring
efforts. As a result of these efforts, the general quality of the Group’s loan portfolio improved significantly
during the four-year period ended March 31, 2006, with significant declines in the balance of impaired loans
beginning the fiscal year ended March 31, 2003, particularly loans to borrowers in the real estate and wholesale
and retail industries. A similar trend was evident in the balance of foreign impaired loans, which has been
decreasing significantly since the fiscal year ended March 31, 2003. In the fiscal year ended March 31, 2007, theamount of impaired loans to banks and other financial institutions significantly increased due to the downgrade in
the credit rating of a large non-bank financial company borrower, and the amount of impaired loans totransportation and services also increased due to the downgrade in the credit rating of another large borrower andits subsidiaries. As a result, the total balance of domestic impaired loans as of March 31, 2007 increased,compared to March 31, 2006.

A-10

Had interest on nonaccrual loans been accrued at the original contractual terms, gross interest income on
domestic nonaccrual loans outstanding during the fiscal year ended March 31, 2007 would have been
¥40,384 million, of which ¥26,343 million was included in interest income on loans in the consolidated
statements of income. Gross interest income which would have been accrued at the original contractual terms on
foreign nonaccrual loans outstanding during the fiscal year ended March 31, 2007 was ¥5,618 million, of which¥3,287million was included in interest income on loans in the consolidated statements of income.
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, 2005:

United States . . . . . . . . . . . . . . . . . . . . .
United Kingdom . . . . . . . . . . . . . . . . . . .

Publicinstitutions% of total
Banks
OthersTotal
assets(in millions of yen, except percentages)

Undrawn
commitments

4,194,067
5,483

210,797
386,451

1,357,080
354,386

1,296,887
877,8545,701,751
1,269,788

4.08%
0.91%

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, 2006:

United States . . . . . . . . . . . . . . . . . . . . .
United Kingdom . . . . . . . . . . . . . . . . . . .
Germany . . . . . . . . . . . . . . . . . . . . . . . . .

Publicinstitutions% of total
Banks
OthersTotal
assets(in millions of yen, except percentages)

Undrawn
commitments

3,843,210
70,582
828,374

952,236
345,156
346,2132,306,077
488,205
330,608

1,901,044
1,185,540
347,087

6,696,490
1,601,278
1,521,674

4.60%
1.10%
1.05%

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, 2007:
Publicinstitutions

United States . . . . . . . . . . . . . . . . . . . .
Germany . . . . . . . . . . . . . . . . . . . . . . .
France . . . . . . . . . . . . . . . . . . . . . . . . .
United Kingdom . . . . . . . . . . . . . . . . .
Netherlands . . . . . . . . . . . . . . . . . . . . .

4,496,886
1,584,373
950,785
60,29540,383% of total
Banks
OthersTotal
assets(in millions of yen, except percentages)

1,963,200
466,137
276,119591,619
633,870A-11

2,201,361
158,347
170,625
661,217454,945

8,661,447
2,208,857
1,397,529
1,313,131
1,129,198

5.88%
1.50%
0.95%
0.89%
0.77%

Undrawn
commitments

2,684,410
314,344
411,378
529,409278,137

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, 2005, 2006 and 2007:
2005
2006
2007
(in millions of yen, except percentages)

Allowance for loan losses at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . 1,936,167 1,207,155 812,321
Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55,035 (157,666) 182,115
Charge-offs:
Domestic:
Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . .
Other industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

64,58020,424
312,526
118,836
221,326
20,028
10,403
12,592
88,03638,325
11,07385,264
28,661
44,763
5,463
553
12,25463,702

11,1192,672
4,722
18,03725,737
319
6,028
5,413
18,010Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

868,751
7,336

290,058
15,671

92,057
18,555

Total charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

876,087

305,729

110,612

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

5,394
9,431
22,0108,478
12,202
1,556
2,871
3,480
9,498

3,589
6,464
20,992
10,241
10,622
49
1,023
1,896
6,361

3,335
2,360
3,222
12,405
4,666
185
225
2,447
3,377

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

74,92014,82061,237
12,65432,222
25,799Total recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

89,74073,891

58,021

Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

786,347

231,838

52,591Others (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,300
1,207,155

Ratio of net charge-offs to average loans outstanding . . . . . . . . . . . . . . . . . . . .

1.19%(5,330)
4,302
812,321 946,147
0.35%

0.08%

Note: Others include primarily foreign exchange translation.
Quantitative information under U.S. GAAP regarding loan loss experience for the fiscal years ended March 31,
2003 and 2004 is not available. However, the MHFG Group observed the following trends during such fiscal
years. The Group incurred significant provisions for loan losses in the fiscal year ended March 31, 2003 due tothe significant amount of impaired loans accumulated after the collapse of the “bubble economy”, as discussed in“III. Loan portfolio—Impaired loans”. The general quality of the Group’s loan portfolio began to improveA-12

starting in the fiscal year ended March 31, 2003, and the amount of its provision for loan losses peaked by theend of such fiscal year and decreased dramatically in subsequent fiscal years, with a reversal of the provision forloan losses being recorded in the fiscal year ended March 31, 2006. Similarly, the amount of its net charge-offs
peaked in the fiscal year ended March 31, 2003 and decreased significantly in subsequent fiscal years with asmall fluctuation.
The following table shows an allocation of the MHFG Group’s allowance for loan losses by domicile andindustry of borrower at March 31, 2004, 2005, 2006 and 2007:
2004

AmountDomestic:
Manufacturing . . . . . . . . . . .
Construction . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . .
Transportation . . . . . . . . . . .
Banks and other financial
institutions . . . . . . . . . . . .
Other industries (Note) . . . .
Individuals . . . . . . . . . . . . . .
Mortgage loans . . . . . .
Other . . . . . . . . . . . . . .

2005

% of
loans ineach
category
to total
loans

2006
% of
% of
loans inloans in
each
each
category
category
to total
to total
Amountloans
Amountloans(in millions of yen, except percentages)

2007
% of
loans ineach
category
to total
Amountloans

225,527
70,478347,050
252,666
422,316
32,76013.24%
2.94%
9.92%
12.90%
11.72%
4.28%

88,36564,203152,085
172,316
254,487
69,64912.10% 62,218
2.66% 28,040
10.08% 74,063
10.52% 91,499
11.18% 143,580
4.35% 114,837

11.33% 61,001
2.27% 30,436
10.24% 57,202
9.17% 106,538
10.08% 115,816
4.06% 142,073

11.06%
2.17%
9.60%
8.83%
9.18%
3.75%

168,556
73,954
233,798
154,91078,88811.34%
8.50%
17.49%
15.64%
1.85%

115,619
27,838190,079
116,042
74,037

9.45% 85,360
12.43% 9,363
18.17% 138,528
16.06% 107,014
2.11% 31,514

9.51% 218,957
14.19% 12,942
17.41% 151,713
15.49% 114,556
1.92% 37,157

6.19%
16.66%
17.85%
15.92%
1.93%

92.33% 1,134,641
7.67%
72,51490.94% 747,488
9.06% 64,833

88.26% 896,678
11.74% 49,469

85.29%
14.71%

Total domestic . . . . . . . . . . . . . . . 1,827,105
Total foreign . . . . . . . . . . . . . . . .
109,062

Total allowance for loan
losses . . . . . . . . . . . . . . . . . . . . 1,936,167 100.00% 1,207,155 100.00% 812,321 100.00% 946,147 100.00%
Note: Other industries include government and public institutions.
Quantitative information under U.S. GAAP regarding the allocation of allowance for loan losses as of March 31,
2003 is not available. However, the MHFG Group observed the following trends in the allowance for loan losses
from March 31, 2003 through March 31, 2007. The allowance for loan losses for each of the industry categories
generally began to decrease after the fiscal year ended March 31, 2003, except transportation, as the balance ofimpaired loans significantly decreased. In particular, the allowance for loan losses to industries such as real estate
and wholesale and retail, the amount of which had been significant due to the large amount of impaired loans that
had been attributable to such industries, showed significant declines. In the fiscal year ended March 31, 2007, theamount of allowance for loan losses increased significantly in banks and other financial institutions because of
the worsened financial condition of a large non-bank financial company borrower, and also increased intransportation and services because of the worsened financial condition of another large borrower and its
subsidiaries.

A-13

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, 2005, 2006 and 2007:
2005
Average
Averageamountrate

2006
Average
Averageamountrate

2007
Average
Averageamountrate(in millions of yen, except percentages)

Domestic offices:
Noninterest-bearing demand
deposits . . . . . . . . . . . . . . . . . . . . . .
4,894,896
Interest-bearing demand deposits . . . . 31,513,647
Deposits at notice (Note) . . . . . . . . . . .
920,144
Time deposits . . . . . . . . . . . . . . . . . . . 25,779,837
Certificates of deposit . . . . . . . . . . . . .
9,785,540— % 12,447,179
0.05% 25,603,238
0.00%
699,977
0.21% 25,690,710
0.02% 8,748,059— % 11,562,000
0.08% 26,706,460
0.00%
635,558
0.38% 25,859,005
0.03% 8,871,808

— %
0.20%
0.08%
0.60%
0.28%

Foreign offices, principally from banks
located in foreign countries:
Noninterest-bearing demand
deposits . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits, principallytime deposits . . . . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . . . . .

262,039— %315,370— %363,386— %2,805,026
183,754

1.91%
2.33%

4,944,456
545,504

2.70%
3.88%

7,096,152
1,578,848

3.75%
5.26%

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

76,144,883

0.17% 78,994,493

0.35% 82,673,217

0.71%

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, 2005, 2006 and 2007 were¥930,905 million, ¥869,967 million and ¥905,214 million, respectively.
At March 31, 2007, the balance and remaining maturities of time deposits and certificates of deposit issued bydomestic offices in amounts of ¥10 million (approximately US$85 thousand at the Federal Reserve Bank of New
York’s noon buying rate on March 30, 2007) or more as well as the balance 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 millions 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,390,884
3,096,173
2,615,728
1,842,676

6,740,260
185,400
64,3408,800

16,131,144
3,281,573
2,680,068
1,851,476

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16,945,461
6,420,084

6,998,800
1,796,387

23,944,261
8,216,471

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

23,365,545

8,795,187

32,160,732

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, 2005, 2006 and 2007:
2005
2006
2007
(in millions 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighed average interest rate during the fiscal year . . . . . . . . . . . .
Weighed 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighed average interest rate during the fiscal year . . . . . . . . . . . .
Weighed average interest rate on balance at end of fiscal year . . . .
Commercial paper:
Average balance outstanding during the fiscal year . . . . . . . . . . . . .
Maximum balance outstanding at any month-end during the fiscal
year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighed average interest rate during the fiscal year . . . . . . . . . . . .
Weighed 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighed average interest rate during the fiscal year . . . . . . . . . . . .
Weighed average interest rate on balance at end of fiscal year . . . .

A-15

1,329,945

1,355,656

1,205,615

1,403,182
1,498,596
1,278,373
1,367,570
1,354,890
1,135,359
0.39%
0.41%
0.49%
0.39%
0.37%
0.67%

22,886,280

25,151,310

25,626,096

24,439,819 26,234,873 28,682,820
21,041,173 23,619,505 25,846,647
0.74%
1.62%
2.57%
0.82%
1.55%
2.45%
2,067,445

1,455,015

2,475,024
1,432,768
2,475,024
965,995
0.14%
0.25%
0.16%
0.96%
1,638,000

4,093,767

1,148,064
956,995
933,5641.09%
1.56%
3,891,925

5,189,051
8,115,098
4,840,904
5,189,051
6,293,099
4,283,493
0.20%
0.16%
0.64%
0.08%
0.08%
0.90%

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, 2006 and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-3
Consolidated Statements of Income for the fiscal years ended March 31, 2005, 2006 and 2007 . . . . . .
F-5
Consolidated Statements of Comprehensive Income for the fiscal years ended March 31, 2005, 2006
and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-6
Consolidated Statements of Shareholders’ Equity for the fiscal years ended March 31, 2005, 2006
and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-7
Consolidated Statements of Cash Flows for the fiscal years ended March 31, 2005, 2006 and 2007 . .
F-9Notes 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
as of March 31, 2006 and 2007, and the related consolidated statements of income, comprehensive income,shareholders’ equity, and cash flows for each of the three years in the period ended March 31, 2007. 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. We were not engaged to perform an audit of
the Company’s internal control over financial reporting. Our audits included consideration of internal control
over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the accounting principles used andsignificant estimates made by management, and 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, 2006 and 2007, and theconsolidated results of their operations and their cash flows for each of the three years in the period ended March
31, 2007, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young ShinNihon
Tokyo, Japan
July 27, 2007

F-2

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMARCH 31, 2006 AND 2007
2006
2007
(in millions of yen)

Assets:Cash and due from banks (Note 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits in other banks (Note 9) . . . . . . . . . . . . . . . . . . . . . . . .
Call loans and funds sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under resale agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under securities borrowing transactions . . . . . . . . . . . . . . . . . . . . .
Trading account assets (including assets pledged that secured parties are
permitted to sell or repledge of ¥3,030,227 million in 2006 and ¥3,138,495
million in 2007) (Notes 3 and 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments (Notes 4 and 9):
Available-for-sale securities (including assets pledged that secured
parties are permitted to sell or repledge of ¥5,482,229 million in 2006and ¥7,655,490 million in 2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Held-to-maturity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans (Notes 5, 6 and 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,459,672
1,666,529
701,805
5,979,643
8,643,570

3,075,860
1,052,296
309,6719,430,398
8,624,211

12,392,154

13,950,333

36,192,849
1,536,149
1,111,799
68,710,961(812,321)

35,870,667
1,337,619
793,410
69,182,867(946,147)

Loans, net of allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment—net (Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due from customers on acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets (Note 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets (Notes 9, 14 and 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67,898,640
839,894
42,722335,939
39,559996,533
3,684,935

68,236,720
847,523
57,662
440,495
39,559618,665
2,696,190

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

145,522,392

147,381,279

See the accompanying Notes to the Consolidated Financial Statements.
F-3

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS—(Continued)
MARCH 31, 2006 AND 2007
2006
2007
(in millions of yen)

Liabilities and shareholders’ equity:
Deposits (Notes 9 and 10):
Domestic:
Noninterest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign:
Noninterest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debentures (Note 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due to trust accounts (Note 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call money and funds purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables under securities lending transactions . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account liabilities (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank acceptances outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable (Note 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities (Note 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (including structured notes accounted for at fair value of¥142,924 million in 2007) (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities (Notes 14 and 23) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14,590,760
60,909,963

13,166,585
61,012,820

341,137
6,861,830
6,586,504
1,354,890
6,192,054
10,079,585
7,347,866
965,995
6,293,099
10,445,247
42,72252,496
22,737
246,777

350,553
9,221,346
4,723,806
1,135,359
6,924,136
12,821,753
6,100,758
933,564
4,283,493
11,310,010
57,66228,65016,368
312,680

5,384,991
3,161,739

7,073,936
2,903,497

140,880,392

142,376,976

296,286

341,6031,580,430

980,430

3,547,726(2,647,768)
1,912,140

3,532,492(2,105,719)
2,287,827(46,814)(32,330)

Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,345,714

4,662,700

Total liabilities, minority interest and shareholders’ equity . . . . . . . .

145,522,392

147,381,279

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitments and contingencies (Note 23)
Minority interest in consolidated subsidiaries (Note 24) . . . . . . . . . . . . . . . . . .
Shareholders’ equity (Note 18):
Preferred stock (Note 15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock—no par value, authorized 25,000,000 shares in 2006, and24,868,200 shares in 2007, and issued 12,003,995 shares in 2006, and11,872,195 shares in 2007 (Note 16) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated deficit (Note 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income, net of tax . . . . . . . . . . . . . . . .
Less: Treasury stock, at cost—Common stock 396,025 shares in 2006,
and 265,040 shares in 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

See the accompanying Notes to the Consolidated Financial Statements.
F-4

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
FOR THE FISCAL YEARS ENDED MARCH 31, 2005, 2006 AND 2007
2005

Interest and dividend income:Loans, including fees (Note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call loans and funds sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables under resale agreements and securities borrowing transactions . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2006
2007
(in millions of yen)

1,110,909

1,127,798

1,377,104

215,749
67,83773,348
5,006
112,577
30,002359,408
91,07861,288
9,753
257,573
51,009518,968
93,933
69,48019,107484,130
76,585

Total interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,615,428

1,957,907

2,639,307

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

131,637
68,66954,652
2,777
165,945
13,807141,086

276,174
48,20852,8396,290
400,645
19,200141,539

583,61134,08371,70031,072627,880
43,221
179,822

Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

578,573

944,895

1,571,389

Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for loan losses (Notes 5 and 6) . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,036,855
55,035

1,013,012 1,067,918(157,666)
182,115

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

981,820

1,170,678

885,803

Noninterest income:Fees and commissions (Note 26) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange gains (losses)—net (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account gains—net (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment gains (losses)—net (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains on disposal of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . .
Other noninterest income (Notes 20, 21 and 30) . . . . . . . . . . . . . . . . . . . . . . . .

602,146(306)
190,013471,854
80,613
255,353

688,686(110,674)
20,342
143,482
65,473
187,847

682,999(51,304)
389,890(185,972)
64,612295,723

Total noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,599,673

995,156

1,195,948

Noninterest expenses:
Salaries and employee benefits (Note 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and commission expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for losses on off-balance-sheet instruments (Note 23) . . . . .
Minority interest in consolidated subsidiaries (Note 24) . . . . . . . . . . . . . . . . . .
Other noninterest expenses (Note 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

451,457
462,104
227,32186,175(25,773)
30,941
146,828

435,181455,653
178,190
96,12734,02369,051
186,079

416,676
481,008
172,480
111,624(37,821)
27,791
122,890

Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,379,053

1,454,304

1,294,648

Income before income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense (benefit) (Note 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,202,440
124,379

711,530(374,142)

787,103
163,221

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,078,061

1,085,672

623,882(in yen)
Earnings per common share (Note 19):
Basic net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

94,616.09

93,778.71

51,725.68

Diluted net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70,005.52

82,748.82

48,709.38

See the accompanying Notes to the Consolidated Financial Statements.
F-5

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED MARCH 31, 2005, 2006 AND 2007
Gains (losses)
before income tax
expense (benefit)

Income tax(expense) benefit

Gains (Losses)
net of income tax
expense (benefit)(in millions of yen)

Fiscal year ended March 31, 2005
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,078,061

Other comprehensive income (loss):
Unrealized net gains (losses) on available-for-sale securities (Note 20):
Unrealized holding gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: reclassification adjustments for losses (gains) included in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

343,102(139,359)

203,743(330,010)

134,048(195,962)

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

13,092(5,311)

7,781

16,299—16,299Foreign currency translation adjustments:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . .
Less: reclassification adjustments for losses (gains) included in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

—

—

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

16,299—16,299Total other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29,391(5,311)

24,080Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,102,141

Fiscal year ended March 31, 2006
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,085,672

Other comprehensive income (loss):
Unrealized net gains (losses) on available-for-sale securities (Note 20):
Unrealized holding gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: reclassification adjustments for losses (gains) included in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,500,614(44,767)

18,183(26,584)

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

1,455,847(591,405)

864,442

17,370—17,370

(529)

—

(529)
16,841

Foreign currency translation adjustments:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . .
Less: reclassification adjustments for losses (gains) included in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(609,588)

891,026

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

16,841—Minimum pension liability adjustments (Note 20) . . . . . . . . . . . . . . . . . . . . .

(1,599)

650

(949)

Total other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,471,089(590,755)

880,334

Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,966,006

Fiscal year ended March 31, 2007
Net income

623,882

Other comprehensive income (loss):
Unrealized net gains (losses) on available-for-sale securities (Note 20):
Unrealized holding gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: reclassification adjustments for losses (gains) included in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

332,942
34,987(14,181)

20,806

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

367,929(149,726)

218,203

25,680—25,680Foreign currency translation adjustments:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . .
Less: reclassification adjustments for losses (gains) included in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(135,545)

197,397———

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

25,680—25,680

Minimum pension liability adjustments (Notes 20 and 21) . . . . . . . . . . . . . .

432

(175)

257

Total other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

394,041(149,901)

244,140

Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

See the accompanying Notes to the Consolidated Financial Statements.
F-6

868,022MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
FOR THE FISCAL YEARS ENDED MARCH 31, 2005, 2006 AND 20072005

Preferred stock (Note 15):
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock (Note 16):
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains on sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuance of new shares of common stock by conversion of preferredstock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2006(in millions of yen)

3,042,014 2,769,468(272,546) (1,189,038)

2007

1,580,430(600,000)

2,769,468

1,580,430

980,430

3,064,119—
28

3,105,754—
441,972

3,547,726(15,266)
32

41,607——

3,105,754

3,547,726

3,532,492

Accumulated deficit (Note 17):
Balance at beginning of fiscal year, previously reported . . . . . . . . . . (4,637,693) (3,642,945) (2,647,768)
Cumulative effect of change in accounting principles, net of tax(Note 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
1,514
Balance at beginning of fiscal year, adjusted . . . . . . . . . . . . . . . . . . . (4,637,693) (3,642,945) (2,646,254)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,078,061 1,085,672
623,882
Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(74,281)(75,884)(79,850)
Amortization of beneficial conversion feature . . . . . . . . . . . . . . . . . .
(1,811)——
Cancellation of preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7,221)(14,611)(3,497)
Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3,642,945) (2,647,768) (2,105,719)

Accumulated other comprehensive income, net of tax:
Unrealized net gains on available-for-sale securities (Note 4):
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . .
Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,123,949
7,781

1,131,730
864,442

1,996,172
218,203

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,131,730

1,996,172

2,214,375

Foreign currency translation adjustments:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . .
Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(116,223)
16,299(99,924)
16,841(83,083)
25,680

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(99,924)(83,083)(57,403)

Minimum pension liability adjustments (Note 21):
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . .
Change during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to initially apply SFAS No.158 . . . . . . . . . . . . . . .

—
—
—

—
(949)
—

(949)
257
692

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

(949)

—

Pension liability adjustments (Note 21):
Adjustments to initially apply SFAS No.158 . . . . . . . . . . . . . . .

——130,855

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

——130,855

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,031,806

1,912,140

2,287,827

See the accompanying Notes to the Consolidated Financial Statements.
F-7

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(Continued)
FOR THE FISCAL YEARS ENDED MARCH 31, 2005, 2006 AND 2007
2005

Treasury stock, at cost:
Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2006(in millions of yen)

2007

(134,110) (394,555)(500,477) (944,321)
58
88,416
239,971 1,203,649
3(3)(46,814)(604,331)
51
618,7640Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(394,555)(46,814)(32,330)

Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,869,528

4,345,714

4,662,700

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, 2005, 2006 AND 2007
2005

2006
(in millions of yen)

2007

Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,078,061

1,085,672

623,882

148,160
55,035(471,854)
15,199229,629(2,928,468)
2,010,864(5,543)
11,885(378,286)

136,553(157,666)(143,482)
43,045(444,542)
786,215426,115(65,075)
7,510(64,547)

140,313
182,115
185,972
14,236112,920(1,390,731)
675,331(96,777)
59,603(196,023)

Net cash provided by (used in) operating activities . . . . . . . . . . . . . . . . .

(235,318)

1,609,798

310,841

Cash flows from investing activities:
Proceeds from sales of available-for-sale securities . . . . . . . . . . . . . . . . . . . .
Proceeds from maturities of available-for-sale securities . . . . . . . . . . . . . . . .
Purchases of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from maturities of held-to-maturity securities . . . . . . . . . . . . . . . . .
Purchases of held-to-maturity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of other 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 resaleagreements and securities borrowing transactions . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of premises and equipment . . . . . . . . . . . . . . . . . . . . . . .
Purchases of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . .

34,754,823 29,549,504 34,491,806
32,149,350 36,810,931 28,138,385(69,392,104) (68,306,435) (60,485,825)
1,275
1,264
201,365(544,862)(50,175)—
141,170
142,599
266,003(80,026)(93,307)(196,911)
625,023
314,146
201,6392,764,865(3,340,472)(271,298)
114,858(418,710)
645,437(1,252,075)
72,412(155,516)—(994,455)
69,381(163,934)
27,539(2,562,649)
72,415(188,191)—(800,807)(6,452,124)

312,176

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 commercial paper and other short-term borrowings . . . . . . . . .
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayment of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid to minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,687,556(1,644,382)

1,951,000(1,198,692)

514,431(1,864,194)(1,639,841)
7,038
2,474,181
1,670,545(1,942,176)
98,57486(500,477)(74,281)(23,362)

2,192,832(12,680)(418,349)
1,457,917(914,569)
58,756
530,388(944,321)(75,725)(21,714)

1,626,322(219,531)(2,071,272)
2,296,461(643,282)
38,15383(604,331)(79,793)(8,143)

Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . .

1,113,461

2,604,843(1,015,096)

Effect of exchange rate changes on cash and due from banks . . . . . . . . . . . . . . . . .

616

14,623

8,267

Net increase (decrease) in cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . .
Cash and due from banks at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . .

77,9525,604,580(2,222,860)
5,682,532(383,812)
3,459,672

Cash and due from banks at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,682,532

3,459,672

3,075,860

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, 2005, 2006 AND 2007
2005

Supplemental disclosure of cash flow information:
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes paid, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncash investing activities:
Transfer from loans into other investments . . . . . . . . . . . . . . . . . . . . . . . . .
Investment in capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2006
2007
(in millions of yen)

508,933
137,416

937,680
243,135

1,468,041
51,246

34,671
14,08429,046
7,109

—
6,996

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 and the type of customers. Mizuho Bank, Ltd. (“MHBK”), a
retail-oriented banking subsidiary, offers financial services mainly to individual customers, SMEs, middlemarket corporations and local governmental entities in Japan. Mizuho Corporate Bank, Ltd. (“MHCB”), a
wholesale banking subsidiary, offers various financial services to large Japanese corporations, financial
institutions, public sector entities and foreign corporations. Mizuho Trust & Banking Co., Ltd. (“MHTB”), a trustbank subsidiary, offers mainly trust-related products and consulting services. Other major subsidiaries consist ofMizuho Securities Co., Limited (“MHSC”), Trust & Custody Service Bank, Ltd. (“TCSB”), Mizuho Investors
Securities Co., Ltd. (“MHIS”), Mizuho Capital Co., Ltd., and Mizuho Business Financial Center Co., Ltd. See
Note 30 “Business segment information” for further discussion of 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. The
consolidated financial statements also include the accounts of the variable interest entities (“VIEs”) for which
MHFG or its subsidiaries have been determined to be the primary beneficiary under Financial AccountingStandards Board (“FASB”) Interpretation No.46 (revised December 2003) “Consolidation of Variable Interest
Entities, an interpretation of ARB No.51” (“FIN No.46R”). All significant intercompany transactions andbalances have been eliminated in consolidation. The MHFG Group accounts for investment in entities overwhich it has significant influence using the equity method of accounting. These investments are included in
Other investments and the Group’s proportionate share of income or loss is included in Investment gains—net.
Use of estimates
The preparation of 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 benefit. 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.
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.
F-11

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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, net of tax. Tax effects of gains andlosses on foreign currency translation of financial statements of overseas entities are not recognized unless it isapparent 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
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 Statementof Financial Accounting Standards (“SFAS”) No.140, “Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities” (“SFAS No.140”).
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 9 “Pledged assets and collateral”. With
respect to securities lending, repurchase agreements, 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 those 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.
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 classified at the date of commitment or purchase.
Trading securities and trading securities sold, not yet purchased, are recorded at fair value in the consolidatedbalance sheets in Trading account assets and Trading account liabilities with realized and unrealized gains andlosses recorded on a trade date basis in Trading account gains—net in earnings. Interest and dividends on trading
account debt and equity securities, including securities sold, not yet purchased, are recorded in Interest anddividend income or Interest expense on an accrual basis.
F-12

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 as well as any marketable equity securities, other than those classified as trading account securities, areclassified as Available-for-sale securities, and are carried at fair value, with unrealized gains and losses reported
in Accumulated other comprehensive income, net of tax. Available-for-sale securities also include retained
subordinated beneficial interests in a securitization transaction that can contractually be repaid or otherwise
settled in such a way that the holder would not recover substantially all of its recorded investments.
Declines in the fair value of Held-to-maturity and Available-for-sale securities below their amortized cost, thatare deemed to be other-than-temporary, are reported in Investment gains—net. In addition, other-than-temporary
declines in beneficial interests purchased or retained in a securitization transaction which are classified asavailable-for-sale debt securities are recognized if there has been an adverse change in the cash flows as of thebalance sheet date. Interest and dividends, as well as amortization of premiums and accretion of discounts, arereported in Interest and dividend income. Amortization of premiums and accretion of discounts on debt securities
are recognized over the remaining maturity under the interest method. Gains and losses on disposition of
investments are computed using the first-in first-out method for debt securities and the average method for equity
securities, and are recorded on the trade date. During the fiscal year ended March 31, 2007, for debt securities,
the MHFG Group adopted the interest method and the first-in first-out cost of investment instead of the straightline method and the average cost of investment that the Group previously used. The impact of these changes isinsignificant.
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 which are heldat fair value under specialized industry accounting principles for investment companies, and othernon-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, commodity, foreign currency, equity 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 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
SFAS No.133, “Accounting for Derivative Instruments and Hedging Activities”, as amended (“SFAS No.133”).
To be eligible for hedge accounting, derivative instruments must be highly effective in achieving offsettingchanges in fair values or variable cash flows from the hedged items attributable to the particular risk being
hedged. All qualifying hedging derivatives are valued at fair value and included in Trading account assets or
Trading account liabilities. Derivatives that do not qualify for hedge accounting under SFAS No.133 are treatedas trading positions and are accounted for as such.
The fair value of derivative financial instruments is based on quoted market prices or broker-dealer quotes. If
quoted market prices or broker-dealer quotes are not available, the fair value is estimated using quoted market
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
prices for similar instruments, option or binomial pricing models or present value cash flow analysis, applying
current observable market information, where available. The determination of fair value includes various factors
such as exchange or over-the-counter market quotes, time value and volatility factors for options and warrants,
observed prices for similar or synthetic instruments, and counterparty credit quality including potential exposure.
Initial upfront unrealized gains or losses on derivative contracts are deferred unless the fair value is supported byobservable market data. If upfront unrealized gains or losses are treated as adjustments to valuation model
pricing parameters, any deferred upfront unrealized gains or losses are recognized as part of the ongoing mark tomodel over the term of the contract as the data becomes more observable. If observable data is not initiallyavailable, unrealized gains or losses may be recognized only when the observable market data becomes available.
Changes in fair value of all derivatives are recorded in earnings, except for derivatives qualifying as net
investment hedges under SFAS No.133 which are recorded in Accumulated other comprehensive income, net oftax. The fair value changes of all derivatives relating to foreign currency exchange rates are included in theForeign exchange gains (losses)—net. Other elements of the fair value changes, including interest rate, equity
and credit related components, are recognized in Trading account gains—net.
Certain financial and hybrid instruments often contain embedded derivative instruments that possess implicit or
explicit contract terms in a manner similar to that of a derivative instrument. Such derivative instruments are
required to be fair valued separately from the host contracts if they meet the criteria of an embedded derivative.
Such criteria include whether the entire instrument is not marked to market through earnings, the economics ofthe embedded terms are not clearly and closely related to those of the host contract and the embedded 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. In refinancing or
restructuring a loan other than in a troubled debt restructuring in accordance with SFAS No.15, “Accounting byDebtors and Creditors for Troubled Debt Restructurings” (“SFAS No.15”), if the terms of the new loan are atleast as favorable to the lender as the terms for comparable loans to other customers with similar collection risks
who are not refinancing or restructuring a loan, or more than minor modifications as defined by the FASB
Emerging Issues Task Force (“EITF”) Issue No.01-7, “Creditors Accounting for a Modification or Exchange of
Debt Instruments” (“EITF Issue No.01-7”) are made, any unamortized net obligation fees or costs related to theoriginal loan are recognized in interest income when the new loan is granted; otherwise, the unamortized net feesor costs from the original loan are carried forward as a part of the net investment in the new loan. Unearned
income and discounts or premiums on purchased loans are deferred and recognized over the life of the loan using
a method that 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.
Loans are designated as nonaccrual when management determines them to be impaired based on all the relevantfacts and circumstances. When a loan is placed on nonaccrual status, interest accrual and amortization of net
origination fees are suspended and the capitalized interest is written off. Cash received on nonaccrual loans is
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 principal payments are
current and future payments are reasonably assured.
Fees received in connection with a modification of the terms of a restructured loan that meet the definition oftroubled debt restructurings in accordance with SFAS No.15, are applied as a reduction of the recorded
investment in the loan. All related costs, including direct loan origination costs, are charged to expense as
incurred.
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
SFAS No.140. Otherwise, the transfer is accounted for as a collateralized borrowing. Gains or losses on
securitization depend in part on the carrying amount of the loans, allocated between the loans derecognized andthe retained interests based on their relative fair values at the date of the transfer. Interests in loans sold throughsecuritization may be retained by the Group in the form of subordinated beneficial interests. The MHFG Groupestimates fair value of these subordinated beneficial interests based on the present value of future expected cash
flows, using management’s best estimates of the key assumptions, such as default rates, discount rates, andprepayment rates, and records them as available-for-sale debt securities.
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 Provision (credit) for loan losses
in the consolidated statements of income. Loan principal which management judges to be uncollectible, based on
detailed loan reviews and a credit quality assessment, is charged off against the allowance for loan losses.
Subsequent recoveries of previously charged-off loan balances are recorded as an increase to the allowance forloan 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, analyses 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 SFAS No.114, “Accounting by Creditors for
Impairment of a Loan—an amendment of FASB Statements No.5 and 15” (“SFAS No.114”) and SFAS No.5,“Accounting for Contingencies” (“SFAS No.5”). The MHFG Group measures the impairment of a loan, based on
the present value of expected future cash flows discounted at the loan’s initial effective interest rate, the loan’s
observable market price, or the fair value of the collateral if the loan is collateral dependent, when it is probablethat the MHFG Group will be unable to collect all amounts due according to the contractual terms of the loan
agreement. Certain impaired loans are aggregated for the purpose of measuring impairment and a formula
allowance utilizing historical loss factors is applied. The formula allowance is also applied to groups of smallbalance, homogeneous loans that are collectively evaluated for impairment and for non-homogeneous loans thathave not been identified as impaired. The evaluation of inherent loss for these loans involves a high degree of
uncertainty, subjectivity and judgment because probable loan losses are not easily identifiable or measurable. In
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
determining the formula allowance, the MHFG Group therefore relies on a statistical analysis that incorporates
loss rates based on its own historical loss experience and third party data. The estimation of the formula
allowance is back-tested on a periodic basis by comparing the allowance with the actual results subsequent to thebalance sheet date.
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.
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 computed
under the straight-line method with respect to buildings and leasehold improvements and under the decliningbalance 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
3 to 50

Regular repairs and maintenance costs that do not extend the estimated useful life are charged to expense as
incurred. Upon sale or disposition of premises and equipment, the cost and related accumulated depreciation oramortization 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.
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 there is impairment, the future cash
flows are then discounted to determine the estimated fair value of the asset group and an impairment charge isrecorded for the difference between the carrying value and the estimated fair value of the asset group. The longlived assets to be disposed of by sale are carried at the lower of the carrying amount or fair value, less estimatedcost to sell.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 years. Impairment of internal use software is assessed and recognized periodically when
triggering events occur.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the MHFG Group’s share of net
identifiable assets acquired at the date of acquisition in a business combination. The Group accounts for goodwillin accordance with SFAS No.142, “Goodwill and Other Intangible Assets” (“SFAS No.142”). Goodwill isrecorded at a designated reporting unit level for the purpose of assessing impairment. An impairment loss isrecorded to the extent the carrying amount of the goodwill exceeds its estimated fair value.
Pension and other employee benefits
MHFG and certain subsidiaries including MHBK, MHCB, and MHTB sponsor severance and pension plans,
which provide defined benefits to retired employees. Periodic expense and accrued liabilities are computed basedon the actuarial present value of 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.
Debentures and long-term debt
Premiums, discounts and issuance costs of debentures and long-term debt are amortized based on a method thatapproximates the interest method over the terms of the debentures and 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 fees income over the guarantee period. The MHFG Group receives such a guarantee
fee at the inception of the guarantee or by installment, and in either case approximates the fair value of theguarantee.
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.
Trust fees are recognized on an accrual basis and are usually based on the volume of assets under custody or
management. Performance-related fees associated with certain trust products are recognized on an accrual basis.
Fees on funds transfer and collection services are generally recognized as revenue when the related services are
performed. Revenues from investment banking services are recorded at the time the underlying transactions aresubstantially completed and there are no other contingencies associated with the fees. Fees from trade-related
financing services are recognized over the period of the financing. Annual fees and royalty and other service
charges related to the credit card business are recorded on a straight-line basis as services are provided.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fees and commissions are presented on a gross basis.
Income taxes
Income taxes are accounted for in accordance with SFAS No.109, “Accounting for Income Taxes”, as amended(“SFAS No.109”). 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 those corresponding amounts used for income tax
purposes, and (2) operating loss and tax credit carryforwards. A valuation allowance for any portion of the deferred tax
assets is recorded 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 change 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 by the weighted average number ofcommon 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 19 “Earnings per common share” for the computation of basic and diluted earnings per common share.
2. Recently issued accounting pronouncements
Recently adopted accounting pronouncements
In January 2003, EITF reached a consensus on Issue No.03-2, “Accounting for the Transfer to the Japanese
Government of the Substitutional Portion of Employee Pension Fund Liabilities” (“EITF Issue No.03-2”), which
was ratified by the FASB in February 2003. EITF Issue No.03-2 addresses accounting for a transfer to theJapanese government of the substitutional portion of an employee pension fund and requires employers toaccount for the entire separation process of the substitutional portion from an entire plan upon completion of thetransfer to the government of the substitutional portion of the benefit obligation and related plan assets as theculmination of a series of steps in a single settlement transaction. It also requires that the difference between thefair value of the obligation and the assets required to be transferred to the government, if any, should be
accounted for as a subsidy from the government, separately from gain or loss on settlement of the substitutional
portion of the obligation, upon completion of the transfer. See Note 21 “Pension and other employee benefit
plans” for a further discussion of the impact of EITF Issue No.03-2.
In December 2003, the American Institute of Certified Public Accountants (“AICPA”) issued Statement of Position(“SOP”) No.03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer” (“SOP No.03-3”).
SOP No.03-3 requires acquired loans to be recorded at fair value and prohibits carrying over valuation allowancesin the initial accounting for all loans acquired in a transfer that have evidence of deterioration in credit quality sinceacquisition, when it is probable that the investor will be unable to collect all contractual cash flows. SOP No.03-3
limits the yield that may be accreted to the excess of the undiscounted expected cash flows over the investor’s initialinvestment in the loan. The excess of the contractual cash flows over expected cash flows may not be recognized as
an adjustment of yield. Subsequent increases in cash flows expected to be collected are recognized prospectively
through an adjustment of the loan’s yield over its remaining life. Decreases in expected cash flows are recognized as
impairments. SOP No.03-3 is effective for loans acquired in fiscal years beginning after December 15, 2004. The
adoption of SOP No.03-3 did not have a material impact on the MHFG Group’s consolidated results of operations
or financial condition.
In December 2004, the FASB issued SFAS No.153, “Exchanges of Non-monetary Assets—an amendment of
APB Opinion No.29” (“SFAS No.153”), which eliminates the exception to the fair value measurement principle
for exchanges of similar productive assets that is provided under APB Opinion No.29 “Accounting for
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Non-monetary Transactions”, and replaces it with a general exception for exchanges of non-monetary assets that
do not have commercial substance. Under SFAS No.153, a non-monetary exchange is considered to havecommercial substance if the future cash flows of the entity are expected to change significantly as a result of theexchange. SFAS No.153 is effective for non-monetary asset exchanges occurring in fiscal periods beginning afterJune 15, 2005. The adoption of SFAS No.153 did not have a material impact on the MHFG Group’s consolidated
results of operations or financial condition.
In March 2005, the FASB issued FASB Interpretation (“FIN”) No.47, “Accounting for Conditional Asset
Retirement Obligations—an interpretation of FASB Statement No.143” (“FIN No.47”), which clarifies that theterm “conditional asset retirement obligation” as used in SFAS No.143, “Accounting for Asset Retirement
Obligations” (“SFAS No.143”), refers to a legal obligation to perform an asset retirement activity in which thetiming and/or method of settlement are conditional on a future event that may or may not be within the control ofthe entity. Under FIN No.47, the obligation to perform the asset retirement activity is considered unconditional
even though uncertainty exists about the timing and/or method of settlement. FIN No.47 also clarifies when an
enterprise is considered to have sufficient information to reasonably estimate the fair value of an asset retirement
obligation to clarify the application of SFAS No.143 which addresses accounting for the cases where sufficient
information is not available at the time the liability is incurred. FIN No.47 is effective no later than the end of
fiscal years ended after December 15, 2005. The adoption of FIN No.47 did not have a material impact on the
MHFG Group’s consolidated results of operations or financial condition.
In March 2005, the FASB issued FASB Staff Position (“FSP”) No.FIN46(R)-5, “Implicit Variable Interests
under FASB Interpretation No.46 (revised December 2003)” (“FSP No.FIN46(R)-5”), which addresses whether areporting enterprise should consider whether it holds an implicit variable interest in a VIE or potential VIE when
specific conditions exist. FSP No.FIN46(R)-5 requires that an enterprise consider whether it holds an implicit
variable interest in the VIE or potential VIE based on whether the enterprise may absorb variability of the VIE or
potential VIE. FSP No.FIN46(R)-5 is effective in the first reporting period beginning after March 3, 2005. The
adoption of the FSP did not have a material impact on the MHFG Group’s consolidated results of operations or
financial condition.
In May 2005, the FASB issued SFAS No.154, “Accounting Changes and Error Corrections—a replacement of
APB Opinion No.20 and FASB Statement No.3” (“SFAS No.154”), which replaces APB Opinion No.20,“Accounting Changes” (“APB Opinion No.20”), and SFAS No.3, “Reporting Accounting Changes in Interim
Financial Statements” (“SFAS No.3”), and requires all voluntary changes in accounting principle, as well as thechanges required by an accounting pronouncement in the unusual instance that the pronouncement does notinclude specific transition provisions, be accounted for as retrospective application to prior periods’ financial
statements, unless it is impracticable. SFAS No.154 is effective for accounting changes and corrections of errors
made in fiscal years beginning after December 15, 2005. The adoption of the SFAS No.154 did not have amaterial impact on the MHFG Group’s consolidated results of operations or financial condition.
In June 2005, the EITF reached a consensus on Issue No.04-5, “Determining Whether a General Partner, or the
General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have
Certain Rights” (“EITF Issue No.04-5”). EITF Issue No.04-5 provides guidance to general partners in limited
partnerships in determining if they control the limited partnerships. The guidance indicates the factors to beconsidered in determining if the general partner has control of the limited partnership include: rebuttablepresumption of control, ability of limited partners to liquidate the limited partnership or remove the generalpartner without cause, limited partners’ substantive participating rights, and limited partners’ protective rights.
EITF Issue No.04-5 is applicable to all new partnerships formed and for existing partnerships for which thepartnership agreements are modified after June 29, 2005. For all other existing partnerships, EITF Issue No.04-5
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
is applicable for the first reporting period for fiscal years beginning after December 15, 2005. The MHFG Groupearly adopted EITF Issue No.04-5, and the adoption did not have a material impact on the MHFG Group’s
consolidated results of operations or financial condition.
In November 2005, the FASB issued FSP No.FAS 115-1 and FAS 124-1, “The Meaning of Other-ThanTemporary Impairment and Its Application to Certain Investments” (“FSP No.FAS 115-1 and FAS 124-1”),
which nullifies guidance on determining whether an impairment is other-than-temporary included in EITF Issue
No.03-1 “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments”(“EITF Issue No.03-1”), and effectively retains the guidance in this area before EITF Issue No.03-1. The FSP
does, however, generally carry forward EITF Issue No.03-1’s impairment guidance relating to cost method
investments and disclosures. The FSP is effective in the first reporting period beginning after December 15,
2005. The adoption of the FSP did not have a material impact on the MHFG Group’s consolidated results ofoperations or financial condition.
In February 2006, the FASB issued SFAS No.155, “Accounting for Certain Hybrid Financial Instruments—anamendment of FASB Statements No.133 and 140” (“SFAS No.155”), which eliminates the exemption fromapplying the bifurcation requirements of SFAS No.133 to beneficial interests in securitized financial assets. SFAS
No.155 permits an enterprise to elect fair value measurement at acquisition, at issuance, or when a previously
recognized financial instrument is subject to a remeasurement event, on an instrument-by-instrument basis, withrespect to a hybrid financial instrument that contains an embedded derivative that would otherwise be bifurcated.
SFAS No.155 is effective for all financial instruments acquired or issued after the beginning of an entity’s firstfiscal year that begins after September 15, 2006. The MHFG Group elected to early adopt SFAS No.155 as ofApril 1, 2006 and applied SFAS No.155 fair value measurement to certain structured notes issued. The impact of
adoption was an increase to retained earnings at April 1, 2006 of ¥1,514 million after-tax, which included grossunrealized gains of ¥1,552 million after-tax and gross unrealized losses of ¥38 million after-tax. This change inaccounting principle did not have a material effect on the MHFG Group’s consolidated financial statements for theyear ended March 31, 2007.
In April 2006, the FASB issued FSP No.FIN46(R)-6, “Determining the Variability to Be Considered in Applying
FASB Interpretation No.46(R)” (“FSP No.FIN46(R)-6”), which addresses how an enterprise should determine
the variability to be considered in applying FIN No.46R. FSP No.FIN46(R)-6 requires that the variability to beconsidered in applying FIN No.46R be based on an analysis of the design of the entity, which entails an analysisof the nature of risks in the entity and determination of the purpose(s) for which the entity has been created andthe variability that the entity creates. An enterprise is required to apply FSP No.FIN46(R)-6 prospectively to all
entities (including newly created entities) with which that enterprise first becomes involved and to all entities
previously required to be analyzed under FIN No.46R when a reconsideration event, as defined by FIN No.46R,
has occurred beginning the first day of the first reporting period beginning after June 15, 2006. The MHFG
Group has early adopted the FSP, and the adoption did not have a material impact on the MHFG Group’s
consolidated results of operations or financial condition.
In September 2006, the SEC staff issued Staff Accounting Bulletin (“SAB”) No.108, “Considering the Effects ofPrior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements”(“SAB No.108”).
SAB No.108 provides guidance on quantifying and evaluating the materiality of unrecorded misstatements. It
requires the use of both the “iron curtain” and “rollover” approaches in quantifying and evaluating the materiality ofa misstatement. Under the iron curtain approach, the error is quantified as the cumulative amount by which thecurrent year balance sheet is misstated. The rollover approach quantifies the error as the amount by which thecurrent year income statement is misstated. If either approach results in a material misstatement, financial statement
adjustments are required. SAB No.108 is effective for financial statements issued for fiscal years ended after
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
November 15, 2006. The adoption of SAB No.108 did not have a material impact on the MHFG Group’s
consolidated results of operations or financial condition.
In September 2006, the FASB issued SFAS No.158, “Employers’ Accounting for Defined Benefit Pension andOther Postretirement Plans—an amendment of FASB Statements No.87, 88, 106, and 132(R)” (“SFAS No.158”),
which requires entities to recognize a net liability or asset to report the funded status of their defined benefit plansand other post retirement benefit plans in its consolidated statement of financial position. SFAS No.158 clarifies thatdefined benefit assets and obligations should be measured as of the date of the entity’s fiscal year-end statement offinancial position. SFAS No.158 also provides additional disclosure requirements for information related to certain
effects on net periodic benefit cost for the next fiscal year that arise from the delayed recognition of gains andlosses, prior service costs and credits, and transition asset or obligation. SFAS No.158 is effective as of the end of
the fiscal years ended after December 15, 2006. See Note 21 “Pension and other employee benefit plans” for the
impact of adopting SFAS No.158.
Accounting pronouncements issued but not yet effective
In March 2006, the FASB issued SFAS No.156, “Accounting for Servicing of Financial Assets—an amendmentof FASB Statement No.140” (“SFAS No.156”), which requires all separately recognized servicing assets andliabilities be initially measured at fair value, if practical. SFAS No.156 permits, but does not require, anenterprise to elect to remeasure servicing assets and liabilities at fair value in subsequent periods. An enterprise isrequired to adopt SFAS No.156 as of the beginning of its first fiscal year that begins after September 15, 2006.
The adoption of SFAS No.156 will not have a material impact on the MHFG Group’s consolidated results ofoperations or financial condition.
In June 2006, the FASB ratified the EITF consensus on Issue No.06-2, “Accounting for Sabbatical Leave andOther Similar Benefits Pursuant to FASB Statement No.43” (“EITF Issue No.06-2”). EITF Issue No.06-2
addresses accounting for compensated absences that require the completion of a minimum service period and do
not increase with additional years of service. EITF Issue No.06-2 is effective for fiscal years beginning after
December 15, 2006. The adoption of EITF Issue No.06-2 is not expected to have a material impact on the MHFG
Group’s consolidated results of operations or financial condition.
In July 2006, the FASB issued FIN No.48, “Accounting for Uncertainty in Income Taxes” (“FIN No.48”), which
creates a single model to address uncertainty in all tax positions subject to SFAS No.109. FIN No.48 clarifies theaccounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet
before being recognized in the financial statements. FIN No.48 also provides guidance on derecognition,measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.
FIN No.48 is effective for fiscal years beginning after December 15, 2006 and differences between the amounts
recognized in the statements of financial position prior to the adoption of FIN No.48 and the amounts reported
after adoption should be accounted for as a cumulative-effect adjustment recorded to the beginning balance ofretained earnings. The adoption of FIN No.48 will not have a material impact on the MHFG Group’s
consolidated results of operations or financial condition.
In September 2006, the FASB issued SFAS No.157, “Fair Value Measurements” (“SFAS No.157”), whichclarifies the definition of fair value and the method used to measure fair value and expands the disclosure
requirements about fair value measurements. SFAS No.157 establishes a fair value hierarchy that distinguishes
between (1) market participant assumptions developed based on market data obtained from sources independentof the reporting entity and (2) the reporting entity’s own assumptions about market participant assumptions
developed based on the best information available in the circumstances. SFAS No.157 nullifies certain guidance
provided for in EITF Issue No.02-3, “Issues Involved in Accounting for Derivative Contracts Held for Trading
F-21

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Purposes and Contracts Involved in Energy Trading and Risk Management Activities” (“EITF Issue No.02-3”), andthe related provisions of SFAS No.133. SFAS No.157 is effective for fiscal years beginning after November 15,
2007. The MHFG Group is currently evaluating the potential impact that the adoption of SFAS No.157 will have on
its consolidated results of operations and financial condition.
In February 2007, the FASB issued SFAS No.159, “The Fair Value Option for Financial Assets and Financial
Liabilities Including an amendment of FASB Statement No.115” (“SFAS No.159”). SFAS No.159 allows entities
to choose, at specified election dates, to measure eligible financial assets and liabilities and certain other items at
fair value that are not otherwise required to be measured at fair value. If a company elects the fair value option
for an eligible item, changes in that item’s fair value in subsequent reporting periods must be recognized incurrent earnings. SFAS No.159 is effective for fiscal years beginning after November 15, 2007. Early adoption ispermitted subject to certain conditions. The MHFG Group is currently evaluating the potential impact that the
adoption of SFAS No.159 will have on its consolidated results of operations and financial condition.
In June 2007, the AICPA issued SOP No.07-1, “Clarification of the Scope of the Audit and Accounting Guide
Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in
Investment Companies” (“SOP No.07-1”). SOP No.07-1 provides guidance for determining whether an entity is
within the scope of the AICPA Audit and Accounting Guide Investment Companies (“the Guide”). Prior to theissuance of SOP No.07-1, in May 2007, the FASB issued FSP No.FIN46(R)-7 “Application of FASBInterpretation No.46(R) to Investment Companies” (“FSP No.FIN46(R)-7”), which addresses the application of
FIN No.46R by an entity that accounts for its investments in accordance with the Guide. FSP No.FIN46(R)-7
extends the scope exception for investment companies in FIN No.46R to unregistered investment companies as
defined by SOP No.07-1. SOP No.07-1 is effective for fiscal years beginning on or after December 15, 2007,
with earlier application encouraged, and FSP No.FIN46(R)-7 follows the adoption of SOP No.07-1. The MHFG
Group is currently evaluating the potential impact that the adoption of SOP No.07-1 and FSP No.FIN46(R)-7
will have on its consolidated results of operations and financial condition, but does not expect a material impact.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
3. Trading account assets and trading account liabilities
The following table presents the components of Trading account assets and Trading account liabilities at theirestimated fair value at March 31, 2006 and 2007:
2006
2007
(in millions of yen)

Trading account assets:
Trading securities:
Japanese government and corporate debt securities . . . . . . . . . . . . . . . . . . . .
Japanese equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign government bonds and other securities . . . . . . . . . . . . . . . . . . . . . . .

5,903,261
643,832
2,277,718

6,481,302
613,785
2,409,517

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

8,824,811

9,504,604

Derivative assets:
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other contracts, mainly commodity-related contracts . . . . . . . . . . . . . . . . . .

1,972,873
1,067,067
104,175
22,657400,571

1,828,742
2,088,854
103,107
13,718411,308

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

3,567,343

4,445,729

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

12,392,154

13,950,333

6,466,309

6,350,602

1,956,550
1,503,795
109,761
16,963391,8692,030,568
2,401,340
106,80922,592
398,099

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

3,978,938

4,959,408

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

10,445,247

11,310,010

Trading account liabilities:
Trading securities sold, not yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative liabilities:
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit-related contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other contracts, mainly commodity-related contracts . . . . . . . . . . . . . . . . . .

See Note 28 “Fair value of financial instruments” for the methodologies and assumptions used to estimate fairvalues.
The MHFG Group performs trading activities through market-making, sales, and arbitrage. Net trading gains(losses) for the fiscal years ended March 31, 2005, 2006 and 2007 are comprised of the following:
2005

2006
2007
(in millions of yen)

Trading account gains—net:
Trading securities, excluding derivative contracts . . . . . . . . . . . . . . . . . . . . .
Derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69,656
120,357

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange gains (losses)—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

190,013
20,342 389,890(306) (110,674) (51,304)

Net trading gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

189,707F-23

376,839 144,740(356,497) 245,150(90,332) 338,586

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. Investments
The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity
securities at March 31, 2006 and 2007 are as follows:
2006
Gross
Gross
Amortized unrealized unrealized
cost
gains
losses

2007
Gross
Gross
Fair
Amortized unrealized unrealized
value
cost
gains
losses(in millions of yen)

Available-for-sale securities:
Debt securities:
Japanese government
bonds . . . . . . . . . . . . . . . 19,522,100
280 230,933 19,291,447 14,524,884
3,110Japanese local gov’t
bonds . . . . . . . . . . . . . . .
126,603
480
2,543
124,540
89,911
499
U.S. Treasury bonds . . . . . 1,172,281
20,208 18,688 1,173,801 2,044,045
20,660
Other foreign gov’t
bonds . . . . . . . . . . . . . . . 1,677,222
32,121 13,694 1,695,649 2,866,136 150,117
Corporate bonds . . . . . . . . 3,878,697
5,666 33,916 3,850,447 4,411,651
4,724
Mortgage-backed
securities . . . . . . . . . . . . 2,310,276
75,300 16,602 2,368,974 3,006,025
65,783
Other debt securities . . . . . 1,633,133
2,920 16,703 1,619,350 2,524,474
9,362
Equity securities(marketable) . . . . . . . . . . . . 2,428,815 3,641,925
2,099 6,068,641 2,591,059 3,679,090

Fair
value

11,978 14,516,016
1,199
12,85889,211
2,051,847

19,77428,083

2,996,479
4,388,292

23,013
17,737

3,048,795
2,516,099

6,221

6,263,928

Total . . . . . . . . . . . . . . . . . . . . 32,749,127 3,778,900 335,178 36,192,849 32,058,185 3,933,345 120,863 35,870,667
Held-to-maturity securities:
Debt securities:
Japanese government
bonds . . . . . . . . . . . . . . . 1,168,205
Japanese local gov’t
bonds . . . . . . . . . . . . . . .
51,435
U.S. Treasury bonds . . . . .
316,50996

4,510

1,163,791

969,069

4

1,881

967,192——354
10,90351,081
305,606

49,971
318,579

12
—

186
6,185

49,797
312,394

Total . . . . . . . . . . . . . . . . . . . . 1,536,149

96

15,767

1,520,478 1,337,619

16

8,252

1,329,383

The amortized cost and fair value of available-for-sale and held-to-maturity debt securities at March 31, 2007 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 original final or contractual maturities.
Available-for-sale debt
Held-to-maturity debt
securities
securities
Amortized cost
Fair value
Amortized cost Fair value(in millions of yen)Due in one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after one year through five years . . . . . . . . . . . . . . . . . . . . . .
Due after five years through ten years . . . . . . . . . . . . . . . . . . . . . .
Due after ten years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,418,507
11,021,729
5,417,228
5,609,662

7,429,045
11,101,395
5,437,254
5,639,045

515,165
822,454——514,861
814,522——

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

29,467,126

29,606,739

1,337,619

1,329,383

F-24

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, 2006 and 2007:

2006

Less than 12 months
Gross
Fair
unrealized
Valuelosses

12 months or more
Gross
Fair
unrealized
Valuelosses(in millions of yen)

Total
Fair
Value

Gross
unrealized
lossesAvailable-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . .
Japanese local gov’t bonds . . . . . . . .
U.S. Treasury bonds . . . . . . . . . . . . .
Other foreign gov’t bonds . . . . . . . . .
Corporate bonds . . . . . . . . . . . . . . . .
Mortgage-backed securities . . . . . . .
Other debt securities . . . . . . . . . . . . .
Equity securities (marketable) . . . . . . . . .

15,392,340
88,504
489,972
596,0132,425,611
493,449
941,534
94,564

156,4811,825
16,217
11,361
27,731
7,371
16,3382,063

1,807,491
14,903206,999
46,87364,512
260,267
19,901
204

74,452
718
2,471
2,333
6,185
9,231
365
36

17,199,831
103,407696,971642,886
2,490,123753,716
961,435
94,768230,933
2,543
18,688
13,69433,916
16,602
16,703
2,099

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

20,521,987

239,387

2,421,150

95,791

22,943,137

335,178

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . .
Japanese local gov’t bonds . . . . . . . .
U.S. Treasury bonds . . . . . . . . . . . . .

963,583
51,081
—

4,510
354
—

—
—
305,606——
10,903

963,583
51,081
305,606

4,510
354
10,903

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

1,014,664

4,864

305,606

10,903

1,320,270

15,7672007

Less than 12 months
Gross
Fair
unrealized
Valuelosses

12 months or more
Gross
Fair
unrealized
Valuelosses(in millions of yen)

Total
Fair
Value

Gross
unrealized
lossesAvailable-for-sale securities:
Debt securities:
Japanese government bonds . . . . . . .
Japanese local gov’t bonds . . . . . . . .
U.S. Treasury bonds . . . . . . . . . . . . .
Other foreign gov’t bonds . . . . . . . . .
Corporate bonds . . . . . . . . . . . . . . . .
Mortgage-backed securities . . . . . . .
Other debt securities . . . . . . . . . . . . .
Equity securities (marketable) . . . . . . . . .

7,265,195
816
184,752
536,316
1,020,976
711,735
721,954
136,827

11,640
3
544
4,869
8,683
8,358
8,330
6,200

28,65365,083
224,215
248,751
1,778,342
522,287
739,494
516

338
1,196
12,314
14,905
19,40014,6559,407
217,293,848
65,899408,967
785,067
2,799,318
1,234,022
1,461,448
137,343

11,978
1,199
12,858
19,77428,08323,013
17,737
6,221

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

10,578,571

48,627

3,607,341

72,23614,185,912

120,863

Held-to-maturity securities:
Debt securities:
Japanese government bonds . . . . . . .
Japanese local gov’t bonds . . . . . . . .
U.S. Treasury bonds . . . . . . . . . . . . .

79,934——

72——

837,267
48,904
312,394

1,809
186
6,185

917,201
48,904
312,394

1,881
186
6,185

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

79,93472

1,198,565

8,180

1,278,499

8,252

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 an
F-25

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
adequate period of time until an anticipated market price recovery or maturity. If it is determined that the
impairment is other-than-temporary, the investment is written down to fair value, and a loss is recognized
immediately through earnings.
The MHFG Group has determined that the unrealized losses on investments in a continuous loss position for 12months or more at March 31, 2007, are not other-than-temporary, because such losses have resulted primarily
from rising interest rates and the MHFG Group has the ability and intent to hold them for a period of time
sufficient to recover gross unrealized losses.
For the fiscal years ended March 31, 2005, 2006 and 2007, losses resulting from write-downs for other-thantemporary impairment on available-for-sale securities were ¥19,297 million, ¥83,235 million and¥212,583 million, respectively. No impairment losses were recorded on held-to-maturity securities for thosefiscal years.
For the fiscal years ended March 31, 2005, 2006 and 2007, proceeds from sales of available-for-sale securities
were ¥34,754,823 million, ¥29,549,504 million and ¥34,491,806 million, respectively. Gross realized gains on
those sales were ¥511,058 million, ¥298,955 million and ¥294,821 million, respectively, and gross realized
losses on those sales were ¥53,842 million, ¥162,159 million and ¥51,654 million, respectively, for the fiscal
years ended March 31, 2005, 2006 and 2007.
Other investments
The following table summarizes the composition of other investments:
2006
2007
(in millions of yen)

Equity method investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments held by consolidated investment companies . . . . . . . . . . . . . . . . . . . . . . . . .
Other equity interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

204,831
66,416
840,552

239,746
81,824
471,840

Total other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,111,799

793,410Equity 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. Such investments included marketable equity securities carried at¥33,250 million and ¥37,860 million at March 31, 2006 and 2007, respectively. The aggregated market values of
those marketable equity securities were ¥106,676 million and ¥91,867 million, respectively.
Investments held by consolidated investment companies
The MHFG Group consolidates certain investment companies for which it has control either through 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.

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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 SFAS No.115,
for which the MHFG Group has neither significant influence nor control over the investees. These securities arestated at acquisition cost, with other-than-temporary impairment, if any, included in earnings. The fair values ofthese securities at March 31, 2006 and 2007 were not readily determinable. The MHFG Group monitors thestatus of each investee, including its credit rating, to determine whether impairment losses should be recognized.
The decrease in other equity interests is mainly due to write-down of preferred stocks issued by a large non-bankfinancial company.
5. Loans
The table below presents loans outstanding by domicile and industry of borrower at March 31, 2006 and 2007.
Categorization of loans by industry is based on the loan classifications designated by the Bank of Japan (“theBOJ”) for regulatory reporting purposes.
2006
2007
(in millions of yen)Domestic: (1)Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other industries (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Individuals:
Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,792,723
1,563,511
7,046,668
6,308,198
6,929,994
2,789,525
6,540,940
4,574,072
5,184,264

7,662,036
1,502,442
6,647,086
6,120,059
6,356,583
2,594,601
4,286,617
6,099,359
5,451,861

10,655,069
1,317,167

11,025,079
1,338,493

Total domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60,702,131

59,084,216

Foreign:
Commercial and industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks and other financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Government and public institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,104,658
1,437,166
330,987
205,411

7,963,577
1,675,503
366,292
184,898

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

8,078,222

10,190,270

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

68,780,353
69,392

69,274,486
91,619Total loans before allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68,710,961

69,182,867

Notes:(1) Certain amounts in the prior period have been reclassified to conform to the current period’s presentation.
(2) Other industries of domestic and other of foreign include trade receivables and lease receivables of
consolidated variable interest entities.

F-27

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Losses on sales of loans were ¥2,025 million, ¥2,050 million and ¥1,977 million and gains on sales of loans were
¥16,048 million, ¥2,387 million and ¥1,211 million for the fiscal years ended March 31, 2005, 2006 and 2007,
respectively.
Impaired loans
The MHFG Group considers both loans that are subject to SFAS No.114 and small balance, homogenous loans to
be impaired when it is probable that the MHFG Group will be unable to collect all the scheduled payments ofprincipal and interest when due according to the contractual terms of the loan. Among other things, restructuredloans under SFAS No.15 and loans that are 90 days or more delinquent are generally considered to be impaired.
All of the MHFG Group’s impaired loans are designated as nonaccrual loans. A summary of the recordedbalances of impaired loans and the related allowance for loan losses at March 31, 2006 and 2007 is shown below:
2006
2007
Recorded
Allowance for
Recorded
Allowance for
impaired loan
loan losses on
impaired loan
loan losses onbalance
impaired loans
balance
impaired loans(in millions of yen)

Impaired loans requiring an allowance for loan
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impaired loans not requiring an allowance for loan
losses (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,024,945

331,491

1,403,829

602,148

204,472—

125,037—

1,229,417

331,491

1,528,866

602,148

Note: These impaired loans do not require an allowance for loan losses because the MHFG Group has sufficientcollateral to cover probable loan losses.
The average recorded balance of impaired loans was ¥1,589 billion and ¥1,221 billion for the fiscal years ended
March 31, 2006 and 2007, respectively.
Had interest on nonaccrual loans been accrued at the original contractual terms, gross interest income on suchloans for the fiscal years ended March 31, 2005, 2006 and 2007 would have been ¥64 billion, ¥45 billion and¥46 billion, respectively, of which ¥36 billion, ¥24 billion and ¥30 billion, respectively, were included in interest
income on loans in the consolidated statements of income.
Lease receivables
As part of its financing activities, the MHFG Group enters into leasing arrangements with customers as lessor.
The MHFG Group’s leasing operations are performed through leasing subsidiaries in the United States andconsist principally of direct financing leases and leveraged leases, involving various types of data processing
equipment, office equipment, and transportation equipment. As of March 31, 2006 and 2007, direct financing
lease receivables were ¥15,022 million and ¥20,641 million, respectively, and leveraged lease receivables were
¥40,461 million and ¥37,562 million, respectively.

F-28

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. Allowance for loan losses
Changes in the allowance for loan losses for the fiscal years ended March 31, 2005, 2006 and 2007 are shown
below:
2005

2006(in millions of yen)

1,207,155

2007

Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,936,167

812,321

Provision (credit) for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55,035(157,666) 182,115

Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

876,087
89,740305,729
73,891

110,61258,021

Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

786,347

231,838

52,591Others (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,300(5,330)4,302

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,207,155

812,321946,147

Note: Others include primarily foreign exchange translation.
The amount of provision for loan losses decreased in the fiscal year ended March 31, 2006 compared to theprevious fiscal year. This was a result of improvements in the credit quality of many of our previously troubled
borrowers and general improvements in the Japanese economy. The MHFG Group recorded provision for loan
losses for the fiscal year ended March 31, 2007 mainly due to the downgrade in the credit rating of a large
non-bank financial company borrower.
The amount of charge-offs decreased in these fiscal years as disposals of impaired loans decreased and general
economic conditions in Japan improved.
7. Premises and equipment
Premises and equipment at March 31, 2006 and 2007 consist of the following:
2006
2007
(in millions of yen)

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment and furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

167,002565,459
190,113125,046
27,605
463,415

164,247
605,680
197,489
125,7543,010
524,463

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,538,640
698,746

1,620,643
773,120

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

839,894

847,523

Depreciation and amortization expense for premises and equipment for the fiscal years ended March 31, 2005,
2006 and 2007 was ¥148,160 million, ¥136,553 million and ¥140,313 million, respectively.
Premises and equipment under capital leases, which is primarily comprised of data processing equipment,
amounted to ¥54,651 million and ¥49,832 million at March 31, 2006 and 2007, respectively. Accumulated
F-29

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
depreciation and amortization on such premises and equipment at March 31, 2006 and 2007 amounted to ¥35,279
million and ¥33,168 million, respectively.
For the fiscal year ended March 31, 2005, the MHFG Group recognized impairment charges on long-lived assets
amounting to ¥17,484 million, which is primarily related to the retirement of banking operations software as aresult of system integrations.
8. Goodwill
SFAS No.142 requires that goodwill, formerly subject to amortization, should no longer be amortized and shouldbe tested for impairment at least annually. The carrying amount of goodwill as of March 31, 2006 and 2007 was¥39,559 million, and there were no impairment losses nor new acquisitions during the fiscal years ended
March 31, 2006 and 2007.
9. Pledged assets and collateral
The following amounts, by balance sheet classifications, have been pledged as collateral for borrowings and forother purposes at March 31, 2006 and 2007:
2006
2007
(in millions of yen)Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19,5914,880,456
16,241,788
6,013,108
422,9629,346
5,148,913
14,368,727
6,940,643
570,827

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

27,577,905

27,038,456

The amounts above include pledged assets that secured parties are not permitted to sell or repledge. At March 31,
2006 and 2007, the carrying values of such pledged assets were ¥19,065 billion and ¥16,244 billion, respectively.
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 are similar reserve
deposit requirements for foreign offices engaged in banking businesses in foreign countries. At March 31, 2006
and 2007, the reserve funds maintained by the MHFG Group, which were included in Cash and due from banks
and Interest-bearing deposits in other banks, were ¥2,269 billion and ¥1,924 billion, respectively.
At March 31, 2006 and 2007, the MHFG Group had received collateral that can be sold or repledged, with a fairvalue of ¥15,906 billion and ¥18,300 billion, respectively, of which ¥11,298 billion and ¥13,329 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.

F-30

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
10. Deposits
The balances of time deposits and certificates of deposit issued by domestic offices in amounts of ¥10 million(approximately US$85 thousand at the Federal Reserve Bank of New York’s noon buying rate on March 30,2007) or more as well as the balance of those deposits issued by foreign offices in amounts of US$100,000 or
more at March 31, 2006 and 2007 are as follows:
2006
2007
(in millions of yen)Domestic offices:Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15,387,476
8,353,790

16,945,461
6,998,800

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

23,741,266

23,944,261

Foreign offices:Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,195,887
1,005,334

6,420,084
1,796,387

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

6,201,221

8,216,471

The aggregate amount of demand deposits in overdraft status that have been reclassified as loan balances at
March 31, 2006 and 2007 was ¥752 billion and ¥661 billion, respectively.
The balance and remaining maturities of time deposits and certificates of deposit issued by domestic and foreign
offices at March 31, 2007 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21,716,778
1,717,004
1,735,954
353,547
273,794
95,311

6,990,000
8,800
—
—
—
—

28,706,778
1,725,804
1,735,954
353,547
273,794
95,311

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

25,892,388

6,998,800

32,891,188

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,910,021
12,875
4,190
8,013
50
12,462

1,781,632
7,253
7,555
—
—
—

8,691,653
20,128
11,7458,013
50
12,462

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

6,947,611

1,796,440

8,744,051

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

32,839,999

8,795,240

41,635,239

F-31

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
11. Debentures
MHCB and MHBK issue debentures denominated in Japanese yen with fixed interest or discount rates toinstitutional and private investors as a source of funding for their operational needs. The following tablesummarizes the composition of debentures at March 31, 2006 and 2007:
2006(in millions of yen)

One-year discount debentures with discount rates of 0.02% to 0.08% (due 2006-2007) . . . . . . .
Three-year coupon debentures with interest rates of 0.35% (due 2006) . . . . . . . . . . . . . . . . . . . .
Five-year coupon debentures with interest rates of 0.10% to 1.40% (due 2006-2011) . . . . . . . . .

655,236
100,800
5,830,468

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

6,586,504

2007(in millions of yen)

One-year discount debentures with discount rates of 0.05% to 0.37% (due 2007-2008) . . . . . . .
Five-year coupon debentures with interest rates of 0.10% to 1.20% (due 2007-2012) . . . . . . . . .

421,574
4,302,232

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

4,723,806

12. Due to trust accounts
MHTB and TCSB, which are MHFG’s subsidiary trust banks, 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 of 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 weighted average interest rate of Due to trust
accounts was 0.37% and 0.67% at March 31, 2006 and 2007, respectively.
13. Long-term debt
Long-term debt with original maturities of more than one year at March 31, 2006 and 2007 is comprised of thefollowing:
2006
2007
(in millions of yen)

Obligations under capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan participation borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior borrowings and bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subordinated borrowings and bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Borrowings and bonds of variable interest entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30,063
139,519
796,129
4,129,049
290,231

27,271
686,322
1,658,131
4,471,635
230,577

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

5,384,991

7,073,936

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents interest rates and maturities of senior borrowings and bonds, subordinatedborrowings and bonds, and borrowings and bonds of variable interest entities:
Interest rates (1)
(%)

MHCB:
Senior fixed rate borrowings denominatedin Japanese yen . . . . . . . . . . . . . . . . . . .
Senior floating rate borrowings
denominated in Japanese yen . . . . . . . .
Senior fixed rate borrowings denominatedin U.S. dollars . . . . . . . . . . . . . . . . . . . .
Senior floating rate borrowings
denominated in U.S. dollars . . . . . . . . .
Senior fixed rate borrowings denominatedin other currencies . . . . . . . . . . . . . . . . .
Senior fixed rate bonds denominated inJapanese yen . . . . . . . . . . . . . . . . . . . . .
Senior floating rate bonds denominated inJapanese yen . . . . . . . . . . . . . . . . . . . . .
Senior fixed rate bonds denominated in
U.S. dollars . . . . . . . . . . . . . . . . . . . . . .
Senior floating rate bonds denominated in
U.S. dollars . . . . . . . . . . . . . . . . . . . . . .
Subordinated fixed rate borrowings
denominated in Japanese yen . . . . . . . .
Subordinated floating rate borrowings
denominated in Japanese yen . . . . . . . .
Subordinated fixed rate borrowings
denominated in U.S. dollars . . . . . . . . .
Subordinated floating rate borrowings
denominated in U.S. dollars . . . . . . . . .
Subordinated fixed rate borrowings
denominated in Euro . . . . . . . . . . . . . . .
Subordinated floating rate borrowings
denominated in Euro . . . . . . . . . . . . . . .
Subordinated fixed rate bonds
denominated in Japanese yen . . . . . . . .

—Maturity (2)

—

2,351

—

May 2007-Aug. 2020

211,200

249,500

Jul. 2018

4,566

3,277

4.985-5.329

Sep. 2007-Feb. 2012

44,04243,068

4.51-6.163

Apr. 2007-Dec. 2015

5,060

46,8401.4-3.65

Sep. 2010-Jan. 2012

6,000

606,000

0.74-0.88

Nov. 2010

999

1,002

4.23-5.71

Jul. 2007-Jun. 2009

7,634

8,154

4.54-5.43

Dec. 2007

1,644

591

0.993-3.963

Jun. 2007-Perpetual

562,028

785,708

0.538-2.45

Jun. 2007-Perpetual

756,066

648,750

5.89-8.91

Jun. 2008-Jan. 2024

716,109719,8715.259-5.36

Dec. 2008-Sep. 2011

3,759

88,213

4.85-4.98

Apr. 2009-Jun. 2011

179,437

197,789

3.923-4.003

Sep. 2010

9,279

10,228

Nov. 2012-Aug. 2014

123,100

123,0632,633,274

3,532,054

0.38-0.941
7.49

2.1-3.0

Total . . . . . . . . . . . . . . . . . . . . . . . . . .
MHBK:Senior fixed rate borrowings denominatedin Japanese yen . . . . . . . . . . . . . . . . . . .
Subordinated fixed rate borrowings
denominated in Japanese yen . . . . . . . .
Subordinated floating rate borrowings
denominated in Japanese yen . . . . . . . .
Subordinated fixed rate borrowings
denominated in U.S. dollars . . . . . . . . .

2006
2007
(in millions of yen)

0.25-6.5

Apr. 2007-Mar. 2027

11,636

13,9181.399-4.6

Sep. 2007-Perpetual

593,400

630,600

1.168-3.914

Jun. 2007-Sep. 2012

503,350

379,5506.646-8.475

Jun. 2016-Jan. 2024

139,437

140,173

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Subordinated floating rate borrowings
denominated in U.S. dollars . . . . . . . . . .
Subordinated fixed rate bonds
denominated in Japanese yen . . . . . . . . .
Subordinated floating rate bonds
denominated in Japanese yen . . . . . . . . .

Interest rates (1)(%)

Maturity (2)

2006
2007
(in millions of yen)

6.181

Sep. 2007

12,922

12,9900.96-2.87

Sep. 2009-Nov. 2026

230,700

373,400

0.8-1.564

Sep. 2009-Jan. 2012

80,900149,100

1,572,345

1,699,731

Total . . . . . . . . . . . . . . . . . . . . . . . . . .
MHFG and other subsidiaries:
Senior fixed rate borrowings denominatedin Japanese yen . . . . . . . . . . . . . . . . . . . .
Senior floating rate borrowings
denominated in Japanese yen . . . . . . . . .
Senior fixed rate bonds denominated inJapanese yen . . . . . . . . . . . . . . . . . . . . . .
Senior floating rate bonds denominated inJapanese yen . . . . . . . . . . . . . . . . . . . . . .
Senior bonds denominated in foreign
currency . . . . . . . . . . . . . . . . . . . . . . . . .
Subordinated fixed rate borrowings
denominated in Japanese yen . . . . . . . . .
Subordinated floating rate borrowings
denominated in Japanese yen . . . . . . . . .
Subordinated fixed rate bonds
denominated in Japanese yen . . . . . . . . .
Subordinated floating rate bonds
denominated in Japanese yen . . . . . . . . .
Fixed rate borrowings of variable interest
entities . . . . . . . . . . . . . . . . . . . . . . . . . .
Floating rate borrowings of variableinterest entities . . . . . . . . . . . . . . . . . . . .
Floating rate bonds of variable interest
entities . . . . . . . . . . . . . . . . . . . . . . . . . .

0.5-5.2

Apr. 2007-May 2036

21,616

38,5800.595-2.45

Apr. 2007-Jun. 2020

132,800

157,600

0-14.9Apr. 2007-Apr. 2037

206,789

278,535

0-19.0

May 2007-Apr. 2037

127,288

197,765

0-7.5

Jun. 2007-Apr. 2027

12,504

13,3011.878-3.5

Jul. 2012-May 2016

50,06260,000

—

7,000

—

1.01-2.76

May 2012-Perpetual

87,80084,1002.28-4.25

Nov. 2013-Perpetual

73,70068,1000.71-1.5

Jul. 2007-Jan. 2012

106,000

110,5830.744-5.204

Apr. 2007-Dec. 2039

179,157

119,994

—

5,074

—

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

1,009,790

1,128,558

Total (3), (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,215,409

6,360,343——

Notes:(1) The interest rates shown are the range of contractual rates in effect at March 31, 2007.
(2) Maturity information shown is the range of maturities at March 31, 2007.
(3) None of the long-term debt issues listed above is 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.

F-34

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following is a summary of contractual maturities of long-term debt subsequent to March 31, 2007:

MHCB

MHFG and
other
MHBK
subsidiaries(in millions of yen)

Total

Fiscal years ending March 31:
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

226,793
464,422502,660
295,062
866,969
1,850,258

154,916
168,527
191,20754,628
178,754965,693

99,808103,549
200,545
86,085102,562
561,498

481,517736,498
894,412435,775
1,148,285
3,377,449

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

4,206,164

1,713,725

1,154,047

7,073,936

14. Other assets and liabilities
The following table sets forth the details of other assets and liabilities at March 31, 2006 and 2007:
2006
2007
(in millions of yen)

Other assets:
Collateral provided for derivative transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
342,568
Miscellaneous receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
533,409
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
153,016
Accounts receivable from brokers, dealers and customers for securities
transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,675,386
Financial Stabilization Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
274,189
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—Security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
129,459
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
576,908

489,877
473,052
357,326
297,916
284,564
213,374
124,974
455,107

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

3,684,935

2,696,190

Other liabilities:
Accounts payable to brokers, dealers and customers for securities transactions . . . .
Miscellaneous payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Factoring amounts owed to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matured debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unearned income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateral accepted for derivative transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

635,103771,310
279,994
354,006
164,674
163,083
793,569

811,871
468,090
348,476
289,279
145,410
135,736
704,635

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

3,161,739

2,903,497

Financial Stabilization Funds
The Financial Stabilization Funds were initiated in 1996 by the Japanese government in connection with theliquidation of certain failed housing-loan companies. Several financial institutions including the BOJ wererequired by the Japanese government to invest in these Funds in an effort to stabilize the effects on the Japanese
economy. The returns from the investment of the Funds are first to be used to make up for a part of the losses
F-35

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
incurred as the housing-loan companies’ loans are collected and disposed of. The Funds are principally invested
in Japanese government bonds, but the investment income earned by the Funds does not accrue to the MHFG
Group, and as a result, the deposits are noninterest-bearing.
The MHFG Group made deposits with the Funds amounting to ¥359,017 million during the fiscal year ended
March 31, 1997. The deposits are expected to mature in 15 years from the deposit date. The deposits werediscounted to their present value at the time of the deposit and the discount is being accreted over the expectedperiod to maturity using the interest method. The carrying amount of the deposits as of March 31, 2006 and 2007
was ¥274,189 million and ¥284,564 million, respectively.
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.
Matured debentures
Matured debentures represent the principal balance of debentures that have reached maturity but have not yet
been repaid to customers.
15. Preferred stock
The composition of preferred stock at March 31, 2005, 2006 and 2007 is as follows:
2005
Class of stock

Second series class II
preferred stock . . . . . . . . . .
Third series class III
preferred stock . . . . . . . . . .
Fourth series class IV
preferred stock . . . . . . . . . .
Sixth series class VI preferredstock . . . . . . . . . . . . . . . . . .
Seventh series class VII
preferred stock . . . . . . . . . .
Eighth series class VIII
preferred stock . . . . . . . . . .
Ninth series class IX
preferred stock . . . . . . . . . .
Tenth series class X preferredstock . . . . . . . . . . . . . . . . . .
Eleventh series class XI
preferred stock . . . . . . . . . .
Class XII preferred stock . . . .
Thirteenth series class XIII
preferred stock . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . .

Aggregate amount(in millions of yen)

Number of shares
Authorized
IssuedIn treasury

Liquidation
value per share(yen)

Convertible
or not200,000

100,000

100,000

38,6002,000,000

Yes

200,000

100,000

100,000—

2,000,000

Yes

300,000

150,000

150,000—

2,000,000

No

300,000

150,000

150,000—

2,000,000

No

250,000

125,000

125,000—

2,000,000

Yes

250,000

125,000

125,000

65,7002,000,000

Yes

41,25033,00033,00033,0001,250,000

Yes

247,788

140,000

140,000—

1,250,000

Yes

943,740—

1,398,500
1,500,000

943,740———

1,000,000—

Yes—

36,6901,500,000

36,690—1,000,000

No

2,769,468

5,321,500

1,903,430

137,300

F-36

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2006
Class of stock

Fourth series class IV
preferred stock . . . . . . . . . .
Sixth series class VI preferredstock . . . . . . . . . . . . . . . . . .
Eleventh series class XI
preferred stock . . . . . . . . . .
Class XII preferred stock . . . .
Thirteenth series class XIII
preferred stock . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . .

Aggregate amount(in millions of yen)

Eleventh series class XI
preferred stock . . . . . . . . . . .
Class XII preferred stock . . . . .
Thirteenth series class XIII
preferred stock . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . .

Liquidation
value per share(yen)

Convertible
or not300,000

150,000

150,000—

2,000,000

No

300,000

150,000

150,000—

2,000,000

No

943,740—

1,398,500
1,500,000

943,740———

1,000,000—

Yes—

36,6901,500,000

36,690—1,000,000

No

1,580,430

4,698,500

1,280,430—
Liquidation
value per share(yen)

Convertible
or not2007
Class of stock

Number of shares
Authorized
IssuedIn treasury

Aggregate amount(in millions of yen)

Number of shares
Authorized
IssuedIn treasury

943,740—

1,398,500
1,500,000

943,740———

1,000,000—

Yes—

36,6901,500,000

36,690—1,000,000

No

980,430

4,398,500

980,430—

Holders or registered pledgees of preferred stock are entitled to receive annual dividends, and distribution ofresidual assets of MHFG as set out above as liquidation value per share, in priority 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.
Thirteenth series class XIII preferred stock is callable (in full or in part) at the option of the issuer after April 1,
2013. Call price is the sum of the liquidation value per share and the accrued dividend. Accrued dividend is
calculated on a daily basis starting on the first day of the fiscal period in which the call date belongs and endingon the call date. If an interim dividend is paid during that fiscal period, the amount of this interim dividend will
be subtracted from the accrued dividend.

F-37

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Eleventh series class XI preferred stock is convertible into common stock at the option of the holder. Material
terms and conditions of conversion are as follows:
Conversion period (1)Eleventh series class XI
preferred stock

July 1, 2008 toJune 30, 2016

Conversion ratio (2)¥1,000,000/(conversion price), where the conversion price is thehigher 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 July 1, 2008 and (y) ¥50,000; to be reset on July 1of each year between 2009 and 2015 (each, a “Reset Date”) as¥1,000,000/(conversion price), where the conversion price is thelower of (x) the average price of daily closing prices (including
closing bid or offered price) of common stock as reported by theTSE for the 30 consecutive trading days (excluding trading dayson which no closing price, closing bid or offered price isreported) commencing on the 45th trading day prior to the Reset
Date and (y) the conversion price effective as of the Reset Date,provided that the conversion price shall not be less than 60% of
the initial conversion price or ¥50,000.

Notes:(1) If the date to determine the shareholders entitled to exercise their voting rights at a general meeting of theshareholders of MHFG (the “Record Date”) is prescribed, the period from and including the date
immediately following such Record Date to and including the date on which such general meeting is
concluded shall be excluded.
(2) 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 oramalgamation, or a capital decrease or stock consolidation occurs and in certain other circumstances.
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 date

Eleventh series class XI
preferred stock

July 1, 2016

Conversion ratio¥1,000,000/(current market price), where the current market
price is the average price of daily closing prices (including
closing bid or offered price) of common stock as reported by theTSE for the 30 consecutive trading days (excluding trading dayson which no closing price, closing bid or offered price isreported) commencing on the 45th trading day prior to July 1,
2016, provided that the current market price shall not be lessthan 60% of the initial conversion price or ¥50,000.

F-38

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The changes in the number of shares and the aggregate amount of preferred stock during the fiscal years ended
March 31, 2005, 2006, and 2007 were as follows:
Class of stock

Issued at
Issued at
Issued at
Issued atMarch 31, 2004 Net change March 31, 2005 Cancelled March 31, 2006 Cancelled March 31, 2007
(number of shares)

Preferred stock held by the Resolution and Collection Corporation:
First series class I
preferred stock . . . .
33,000(33,000)——
Second series class II
preferred stock . . . .
100,000—
100,000 (100,000)
Third series class III
preferred stock . . . .
100,000—
100,000 (100,000)
Fourth series class IV
preferred stock . . . .
150,000—
150,000—
Sixth series class VI
preferred stock . . . .
150,000—
150,000—
Seventh series class
VII preferredstock . . . . . . . . . . . .
125,000—
125,000 (125,000)
Eighth series class
VIII preferredstock . . . . . . . . . . . .
125,000—
125,000 (125,000)
Ninth series class IX
preferred stock . . . .
140,000 (107,000)
33,000(33,000)
Tenth series class X
preferred stock . . . .
140,000—
140,000 (140,000)
Total . . . . . . . . . . . . . .

1,063,000(140,000)

Preferred stock held by other shareholders:Eleventh series class
XI preferredstock . . . . . . . . . . . .
943,740—
Twelfth series class
XI preferredstock . . . . . . . . . . . .
5,500(5,500)Thirteenth series classXIII preferredstock . . . . . . . . . . . .
36,690
—

—

—

—

—

—

—

—

—

—

150,000(150,000)—

150,000(150,000)

—

—

—

—

—

—

—

—

—

—

—

—

—

923,000(623,000)

300,000(300,000)—

943,740—

943,740—

943,740

—

—

—

—

—

36,690—36,690—36,690—980,430—

980,430(300,000)

980,430

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

985,930(5,500)980,430

Total preferredstock . . . . . . . . . . . .

2,048,930(145,500)

1,903,430

F-39(623,000) 1,280,430

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Class of stock

Aggregate
amount at
March 31, 2004

Net
change(Note)

Aggregate
Aggregate
Aggregate
amount at
Cancelledamount at
Cancelledamount at
March 31, 2005
(Note)March 31, 2006
(Note)March 31, 2007
(in millions of yen)Preferred stock held by the Resolution and Collection Corporation:
First series class I
preferred stock . . .
99,000(99,000)——
Second series class II
preferred stock . . .
200,000—
200,000(200,000)
Third series class III
preferred stock . . .
200,000—
200,000(200,000)
Fourth series class
IV preferredstock . . . . . . . . . . .
300,000—
300,000—
Sixth series class VI
preferred stock . . .
300,000—
300,000—
Seventh series class
VII preferredstock . . . . . . . . . . .
250,000—
250,000(250,000)Eighth series class
VIII preferredstock . . . . . . . . . . .
250,000—
250,000(250,000)Ninth series class IX
preferred stock . . .
175,000 (133,750)
41,250(41,250)
Tenth series class X
preferred stock . . .
247,788
—247,788(247,788)
Total . . . . . . . . . . . . .

2,021,788(232,750) 1,789,038

Preferred stock held by other shareholders:Eleventh series class
XI preferredstock . . . . . . . . . . .
943,740—
Twelfth series class
XI preferredstock . . . . . . . . . . .
39,796(39,796)
Thirteenth seriesclass XIII
preferred stock . . .
36,690—(1,189,038)

—

—

—

—

—

—

—

—

—

300,000(300,000)—

300,000(300,000)

—

—

—

—

—

—

—

—

—

—

—

—

—

600,000(600,000)—

943,740—

943,740—

943,740

—

—

—

—

—

36,690—36,690—36,690980,430—

980,430—

980,430(600,000)

980,430

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

1,020,226(39,796)

Total preferredstock . . . . . . . . . . .

3,042,014(272,546) 2,769,468(1,189,038) 1,580,430

Note: Upon cancellation of preferred stock held by the Resolution and Collection Corporation, different series ofpreferred stock which were repurchased on the same date were treated as one issue when comparing the
repurchase price and the book value, because the cancelled stock was held by one holder. The aggregate
book value of the cancelled stock is charged to preferred stock and the aggregate excess amount ofpurchase price over book value is charged to accumulated deficit.

F-40

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
16. Common stock
The changes in the number of issued shares of common stock during the fiscal years ended March 31, 2005,
2006, and 2007 were as follows:
2005

2006
(shares)

2007

Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuance of new shares of common stock by conversion of Twelfth
series class XI preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation of common stock repurchased from a subsidiary . . . . . . . .

11,926,964

12,003,995

12,003,995

77,031————(131,800)

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12,003,995

12,003,995

11,872,195

17. Dividends
The amount available for dividends under the Company Law 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, 2007, MHFG’s capital stock, capital surplus, and retained earnings were ¥1,540,965 million,¥385,242 million, and ¥1,252,226 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, 2007 was ¥389,592 million, of which ¥385,242 million was
included in capital surplus and ¥4,350 million in retained earnings.
In addition to the provision that requires an appropriation for legal reserve, the Company Law and the Banking
Law impose certain limitations on the amount available for dividends. Under the Company Law, MHFG’s
maximum amount available for dividends, at March 31, 2007, was ¥1,245,838 million, based on the amountrecorded in MHFG’s general books of account under Japanese GAAP. Under the Banking Law and related
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 4.0% Tier 1
capital for capital adequacy purposes. See Note 18 “Regulatory matters” for further discussion of regulatory
capital requirements.
Payment of dividends on shares of common stock is also subject to the prior payment of dividends on shares ofpreferred stock.

F-41

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Dividends on preferred stock and common stock during the fiscal years ended March 31, 2005, 2006, and 2007
were as follows:
2005
Class of stock

Cash dividends
Per share
In aggregate(in yen)(in millions of yen)

Non-cash dividends
Per share
In aggregate(in yen)(in millions of yen)First series class I preferred stock . . . . . . . . . . . . . . . . .
Second series class II preferred stock . . . . . . . . . . . . . .
Third series class III preferred stock . . . . . . . . . . . . . . .
Fourth series class IV preferred stock . . . . . . . . . . . . . .
Sixth series class VI preferred stock . . . . . . . . . . . . . . .
Seventh series class VII preferred stock . . . . . . . . . . . .
Eighth series class VIII preferred stock . . . . . . . . . . . . .
Ninth series class IX preferred stock . . . . . . . . . . . . . . .
Tenth series class X preferred stock . . . . . . . . . . . . . . . .
Eleventh series class XI preferred stock . . . . . . . . . . . .
Twelfth series class XI preferred stock (1) . . . . . . . . . .
Thirteenth series class XIII preferred stock . . . . . . . . . .
Common stock (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22,5008,200
14,00047,60042,00011,0008,000
17,5005,380
20,0002,500
30,000
3,000

—
—
—
—
—
—
—
—
—
—
329,314——

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

742
820
1,400
7,140
6,300
1,375
1,000
2,450
753
18,87514
1,101
32,311
74,281

2006
Class of stock

Cash dividends
Per share
In aggregate(in yen)(in millions of yen)

Second series class II preferred stock . . . . . . . . . . . . . .
Third series class III preferred stock . . . . . . . . . . . . . . .
Fourth series class IV preferred stock . . . . . . . . . . . . . .
Sixth series class VI preferred stock . . . . . . . . . . . . . . .
Seventh series class VII preferred stock . . . . . . . . . . . .
Eighth series class VIII preferred stock . . . . . . . . . . . . .
Ninth series class IX preferred stock . . . . . . . . . . . . . . .
Tenth series class X preferred stock . . . . . . . . . . . . . . . .
Eleventh series class XI preferred stock . . . . . . . . . . . .
Thirteenth series class XIII preferred stock . . . . . . . . . .
Common stock (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,200
14,00047,60042,00011,000
8,000
—
5,380
20,00030,0003,500

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

504
1,400
7,140
6,300
1,375
474
—
753
18,875
1,101
37,962

1,811
Non-cash dividends
Per share
In aggregate(in yen)(in millions of yen)

—
—
—
—
—
—
—
—
—
—
—

75,884

2007
Class of stock

Cash dividends
Per share
In aggregate(in yen)(in millions of yen)

Fourth series class IV preferred stock . . . . . . . . . . . . . .
Sixth series class VI preferred stock . . . . . . . . . . . . . . .
Eleventh series class XI preferred stock . . . . . . . . . . . .
Thirteenth series class XIII preferred stock . . . . . . . . . .
Common stock (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47,60042,00020,00030,0004,000

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

F-42

7,140
6,300
18,875
1,101
46,43479,850

—
—
—
—
—
—
—
—
—
—
1,811
—
—

—
—
—
—
—
—
—
—
—
—
—
—

Non-cash dividends
Per share
In aggregate(in yen)(in millions of yen)

—
—
—
—
—

—
—
—
—
—
—

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Notes:(1) Non-cash dividends of Twelfth series class XI preferred stock during the fiscal year ended March 31, 2005
is the amortized amount of the beneficial conversion feature related to the Twelfth series class XI preferredstockholders, calculated in accordance with EITF Issue No.00-27 “Application of Issue No.98-5 to Certain
Convertible Instruments”.
(2) Dividends paid on treasury stock are excluded.
18. Regulatory matters
Regulatory capital requirements
MHFG, MHCB, MHBK, and MHTB are subject to regulatory capital requirements administered by the Financial
Services Agency (“FSA”) in accordance with the provisions of the Banking Law 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 statements.
The capital adequacy guidelines applicable to Japanese banks and bank holding companies with international
operations supervised by the FSA closely follow the risk-adjusted approach proposed by the Bank forInternational Settlements (“BIS”) and are intended to further strengthen the soundness and stability of Japanesebanks. Effective March 31, 2007, new guidelines were implemented by the FSA to comply with the new capital
adequacy requirements set by BIS called Basel II. The framework of Basel II is based on the following threepillars: minimum capital requirements; supervisory review; and market discipline.
Under the first pillar, the capital ratio is calculated by dividing regulatory capital by risk-weighted assets. With
respect to the calculation of risk-weighted assets, the MHFG Group adopted the foundation internal ratings-based
approach (“FIRB approach”). Under the FIRB 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 (“PD”) and loss given default. PD is derived by MHFG’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 inmarket 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 MHFG Group selected the standardized approach for the calculation of operational risk
capital charge, which calculates operational risk by dividing its activities into eight business lines andmultiplying gross income of each of those business lines by the applicable factor assigned to each of the businessline.
With regard to risk-based capital, these guidelines are consistent with the original BIS framework (Basel I) in
requiring a target minimum standard capital adequacy ratio of 8%, at least half of which must consist of core
capital, on both a consolidated and non-consolidated basis for banks with international operations, such as
MHCB and MHTB, or on 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 three tiers: core capital (Tier 1 capital); supplementary capital (Tier 2 capital); and juniorsupplementary capital (Tier 3 capital). Tier 1 capital generally consists of shareholders’ equity less any recorded
goodwill and consolidation adjustment accounts. Tier 2 capital generally consists of: general loan-loss reserves;
45% of each of the unrealized gains on valuation of certain securities classified as “other securities” under
F-43

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Japanese GAAP which is similar to available-for-sale securities under U.S. GAAP, and the unrealized
appreciation in the value of land; the balance of subordinated perpetual debt; and the balance of subordinatedterm debt with an original maturity of over five years and preferred term shares up to 50% of Tier 1 capital. Tier
2 capital may be included in a bank’s risk-based capital up to the amount equivalent to Tier 1 capital, less Tier 3
capital if market risk is taken into account in the capital adequacy ratio calculation. Tier 3 capital consists of thebalance of subordinated term debt with original maturity of at least two years. Tier 3 capital may be included in
total risk-based capital subject to certain conditions, depending on the measure for market risk and the amount ofTier 1 capital.
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.
Japanese banks with only domestic operations, such as MHBK, are subject to Japanese capital adequacy
requirements that are similar to those discussed above, except that domestic banks are required to maintain aminimum capital adequacy ratio of 4%, at least half of which must consist of Tier 1 capital, on both aconsolidated and non-consolidated basis.
If the capital adequacy ratio of a financial institution falls below the required level, the FSA 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 the MHFG Group’s financial statements.
Capital adequacy ratios for March 31, 2006 were calculated according to Basel I, which is similar to thecalculation required by the first pillar of Basel II, except that credit risk was calculated using uniform riskweights and that operational risk was not factored into the calculation.

F-44

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital adequacy ratios of MHFG, MHCB, MHBK, and MHTB as of March 31, 2006 and 2007 calculated inaccordance with Japanese GAAP and guidelines established by the Ministry of Finance and the FSA are set forthin the following table:
2006 (Note)2007
AmountRatio
AmountRatio(in millions of yen, except percentages)

Consolidated:
MHFG:
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHCB:Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHBK:Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHTB:Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-consolidated:
MHCB:
Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHBK:Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MHTB:Tier 1 capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total risk-based capital:
Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,101,382
4,555,947

4.00
5.87

2,831,820
4,933,562

4.00
6.96

6,202,764
8,993,255

8.00
11.59

5,663,639
8,841,383

8.00
12.48

1,629,214
2,809,455

4.00
6.89

1,520,976
3,256,830

4.00
8.56

3,258,427
5,219,643

8.00
12.81

3,041,953
5,329,535

8.00
14.01

661,112
1,904,424

2.00
5.76

581,072
2,067,733

2.00
7.11

1,322,225
3,399,676

4.00
10.28

1,162,144
3,412,842

4.00
11.74

178,176
337,125

4.00
7.56

160,608359,840

4.00
8.96

356,352
642,548

8.00
14.42

321,216
630,065

8.00
15.69

1,517,065
2,759,232

4.00
7.27

1,425,251
2,922,860

4.00
8.20

3,034,131
5,311,106

8.00
14.00

2,850,502
5,426,210

8.00
15.22

653,368
1,847,813

2.00
5.65

531,725
1,965,319

2.00
7.39

1,306,735
3,343,308

4.00
10.23

1,063,450
3,223,174

4.00
12.12

177,344
329,982

4.00
7.44

159,238
353,206

4.00
8.87

354,688633,796

8.00
14.29

318,475
621,307

8.00
15.60

Note: The amount and ratios for March 31, 2006 were calculated according to Basel I.
F-45

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
MHFG’s securities subsidiaries in Japan are also subject to the capital adequacy rules of the FSA under the
Securities and Exchange Law. This rule requires securities firms to maintain a minimum capital adequacy ratioof 120% calculated as a percentage of capital accounts less certain assets, as determined in accordance withJapanese GAAP, against amounts equivalent to market, counterparty, and basic risks. Specific guidelines areissued as a ministerial ordinance which details the definition of essential components of the capital ratios,
including capital, disallowed assets and risks, and related measures. Failure to maintain a minimum capital ratio
will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for regulatory reporting anda capital ratio of 100% or less may lead to a temporary suspension of all or part of the business operations andcancellation of the license to act as a securities broker and dealer.
Management believes, as of March 31, 2007, that MHFG, MHCB, MHBK, MHTB, and their securities
subsidiaries in Japan are in compliance with all capital adequacy requirements to which they are subject.
19. 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, 2005, 2006 and 2007:
2005

Net income:Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Net income attributable to preferred shareholders . . . . . . . . . . . . .
Net income attributable to common shareholders . . . . . . . . . . . . . . . . . .
Effect of dilutive securities:
Convertible preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to common shareholders after assumed
conversions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2006(in millions of yen)

2007

1,078,061
57,064
1,020,997

1,085,672
37,953
1,047,719

623,882
23,474600,408

25,192

18,87518,875

1,046,189

1,066,594

619,283

2005

2006
2007
(thousands of shares)

Shares:
Weighted average common shares outstanding . . . . . . . . . . . . . . . . . . .

10,791

11,172

11,608

Effect of dilutive securities:
Convertible preferred stock (Note) . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average common shares after assumed conversions . . . .

4,153
14,944

1,717
12,8891,106
12,7142005

2006(in yen)2007

Amounts per common share:
Basic net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . .

94,616.09

93,778.71

51,725.68

Diluted net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . .

70,005.52

82,748.82

48,709.38

Note: The number of the dilutive common shares is based on the conversion price as of each fiscal year-end.
F-46

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
20. Income taxes
The following table presents the components of Income tax expense (benefit) for the fiscal years ended
March 31, 2005, 2006 and 2007:
2005

2006
2007
(in millions of yen)

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

(125,202)
19,952

43,74526,65527,92922,372

Total current tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(105,250)

70,40050,301

Deferred:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

230,005 (445,535) 112,444
(376)
993
476

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

229,629(444,542) 112,920

Total income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . .

124,379(374,142) 163,221

On December 24, 2004, the Supreme Court of Japan ruled in favor of MHCB, supporting MHCB’s petition for
rescission of a corporate tax correction regarding MHCB’s write-off of amounts outstanding from Japan Housing
Loan, Inc. (“JHL”), which was followed by the refund of provisional tax payments made in 1996. As a result of
the “JHL case judgment”, the amount of the current tax expense decreased by ¥152,388 million for the fiscal year
ended March 31, 2005. In addition, the interest on the refund of provisional tax payments of ¥102,106 million
was included in Other noninterest income for the period.
The preceding table does not reflect the tax effects of items recorded directly in Shareholders’ equity for the
fiscal years ended March 31, 2005, 2006 and 2007. The detailed amounts reducing Shareholders’ equity are as
follows:
2005

2006
2007
(in millions of yen)

Unrealized net gains on available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . 5,311
Minimum pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . .
—Adjustments to initially apply SFAS No.158 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—591,405 149,726
(650)
175
—
1,275
—
89,512

Total tax effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

590,755

5,311

240,688

Since the MHFG Group does not have the intention to divest its foreign subsidiaries in the foreseeable future,deferred taxes are not provided on the temporary differences related to foreign currency translation adjustments.

F-47

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows a reconciliation of Income tax expense (benefit) at the effective statutory tax rate toactual income tax expense for the fiscal years ended March 31, 2005, 2006 and 2007:
2005
2006
2007
(in millions of yen, except tax rates)

Income before income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,202,440
40.69%

711,530 787,103
40.69%
40.69%

Income tax calculated at the statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . .
Income not subject to tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses not deductible for tax purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax rate differentials of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . .
Change in net operating loss carryforwards resulting from the sale of sharesof subsidiaries within the Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minority interest in consolidated subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of the “JHL case judgment” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

489,273(15,028)
1,729
6,093
(315,760)
94,885289,522 320,272(119,421) (34,365)
4,656
1,937
5,246
(538)
650,056 (161,875)(79,559) (38,247)(4,740) (1,151,222)
12,59028,097(152,388)—
7,725(1,517)32,51911,308—32,210

Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124,379

163,221(374,142)

The components of net deferred tax assets at March 31, 2006 and 2007 are as follows:
2006
2007
(in millions of yen)

Deferred tax assets:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Stabilization Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,030,594
424,364
137,219
53,34534,4592,989,864
259,237

1,142,927
456,820
91,604
41,91830,244
2,676,992
209,864

Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,929,082 4,650,369(2,383,956) (2,205,187)

Deferred tax assets, net of valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,545,126

2,445,182

Deferred tax liabilities:
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid pension cost and accrued pension liabilities . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,399,910
75,10945,72750,584

1,552,740
36,927130,706
122,512Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,571,330

1,842,885

Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

973,796602,297

F-48

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Deferred tax assets and deferred tax liabilities within the same tax jurisdiction have been netted for presentationin the balance sheets as follows:
2006
2007
(in millions of yen)

Deferred tax assets on the balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities on the balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

996,533
22,737

618,665
16,368Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

973,796602,297

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 were 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,
2006 and 2007.
At March 31, 2007, the MHFG Group had net operating loss carryforwards totaling ¥6,637,121 million. These
net operating losses are scheduled to expire as follows:
Net operating loss
carryforwards(in millions of yen)

Fiscal year ending March 31:
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

123,800
2,529,718
504,109534,584
2,944,910

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

6,637,121

Included in net operating loss carryforwards in the above table are carryforwards of the holding company and a
subsidiary of ¥2,786,034 million resulting mainly from the sale of shares of subsidiary companies within theGroup. The tax effect of these carryforwards is offset by a full valuation allowance.
21. Pension and other employee benefit plans
Severance indemnity plans
MHFG and certain subsidiaries, including MHBK, MHCB, and MHTB, sponsor and offer their employees otherthan directors and corporate auditors, lump-sum severance indemnity plans. Under the severance indemnity
plans, employees are provided with lump-sum cash payments upon leaving the company. The amount of benefits
under the severance indemnity plans is principally determined based on the position, the length of service and thereason for retirement. When employees meet certain conditions including the length of service, they may opt toreceive 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 career were deemed
meritorious and to those with particular circumstances.
F-49

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Employees’ Pension Funds
MHFG and certain subsidiaries provide funded contributory defined benefit plans, which are known as the
Employees’ Pension Funds (“EPF”), as defined and regulated by the Japanese Welfare Pension Insurance Law(“JWPIL”). Under the EPF, an employer establishes a special public entity that administers and manages the planwith respect to the employees covered by the EPF. The EPF comprises:a.

The “substitutional portion” representing a portion of the pay-related part of the elderly pension that the EPF
administers on behalf of the state-run welfare pension and;b.

The “corporate portion” which represents the discretionary benefit arrangement set up by the employer orthe EPF.

When an employer establishes the EPF, the portion of the welfare pension premium that represents thesubstitutional portion, and would otherwise be required to be paid to the government, is contributed to the EPF.
In June 2001, the JWPIL was amended to permit the employer to separate the substitutional portion from the EPF
and transfer the obligation and related assets to the Japanese government. After the separation, the entire
premium representing the contribution to the welfare pension is transferred to the government. The separation
process requires several phases to be completed and is accounted for in accordance with EITF Issue No.03-2 as
discussed below.
MHFG and certain subsidiaries submitted an application to the government to transfer the obligation to pay
benefits for future employee service related to the substitutional portion and the application was approved in
September 2003. MHFG and certain subsidiaries made another application for the transfer to the government of
the remaining substitutional portion and the application was approved in March 2005. During the fiscal year
ended March 31, 2006, a subsidiary of MHFG completed the transfer of the substitutional portion to thegovernment. In addition, in January 2007, MHFG and certain subsidiaries completed the transfer of thesubstitutional portion of the benefit obligation and the related government-specified portion of plan assets to thegovernment. The MHFG Group accounted for the entire process of the completion of the transfer as a single
settlement transaction in accordance with EITF Issue No.03-2.
The effect of these settlements calculated pursuant to the guidance in EITF Issue No.03-2 was as follows:
2006
2007
(in millions of yen)

Subsidy (representing the difference between the accumulated benefit obligation over the fairvalue of the related assets) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,307 177,418
Settlement gain recognized for proportionate amount of net unrecognized loss related to theentire EPF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
225
3,434
Effect of the reversal of future salary progression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
395
1,589
Total settlement gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,927

182,441

The subsidy is included in Other noninterest income and the other components are deducted from Salaries andemployee benefits.
During the fiscal year ended March 31, 2005, MHFG and certain subsidiaries amended their defined benefit
pension plans under which future benefits for plan participants whose benefits have not been paid would
fluctuate with market interest rates.
F-50

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Tax-Qualified Pension Plans (closed “TQPPs”)
Some of MHFG’s subsidiaries offer closed TQPPs. These plans are non-contributory defined benefits plans
which provide retired employees other than directors and corporate auditors with retirement benefits that are
determined based on certain factors that include the length of service. Under the tax-qualified pension plans,
employers enter into contracts with financial institutions such as trust banks or life insurers that administer
employer contributions and benefit payments.
Defined contribution plans
MHFG and certain subsidiaries have several defined contribution plans. The costs recognized for contributions to
the plans for the fiscal years ended March 31, 2005, 2006 and 2007 were ¥690 million, ¥724 million and¥1,509 million, respectively.
Foreign office benefit plans
Foreign offices and subsidiaries have postemployment and/or postretirement plans for eligible employees andretirees. Foreign offices and subsidiaries also have defined contribution plans and/or defined benefit plans. The
costs of such plans charged to earnings for the fiscal years ended March 31, 2005, 2006 and 2007 were¥1,393 million, ¥1,555 million and ¥2,071 million, respectively.
Implementation of SFAS No.87
SFAS No.87, “Employers’ Accounting for Pensions” (“SFAS No.87”), was effective for the fiscal year beginning
after December 15, 1988 for non-US plans. Due to the unavailability of data, the MHFG Group adopted
SFAS No.87 from the fiscal year beginning April 1, 2004 for the purpose of the consolidated financial
statements. Because the expected future service period of the existing employees as of the adoption date wasapproximately 11 years assuming that SFAS No.87 had been adopted at its original effective date, the net
transition obligation of ¥502,264 million was charged directly to accumulated deficit in its entirety at April 1,
2004.
Implementation of SFAS No.158
On March 31, 2007, the MHFG Group adopted the recognition and disclosure provisions of SFAS No.158, which
requires an employer to recognize the overfunded or underfunded status of a defined benefit plan as an asset or
liability in its consolidated balance sheets. Under SFAS No.158, actuarial gains or losses and prior service costs
or credits that have not yet been recognized through earnings as net periodic benefit cost will be recognized inother comprehensive income, net of tax, until they are amortized as a component of net periodic benefit cost.

F-51

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The adoption of SFAS No.158 had no effect on the consolidated statements of income for the year ended
March 31, 2007, or for any prior period presented, and it will not affect the MHFG Group’s operating results infuture periods. The incremental effects of adopting the provisions of SFAS No.158, including additional
minimum pension liability, on the accompanying consolidated balance sheets at March 31, 2007, are presented in
the following table:
Before application of
After application of
SFAS No.158
Adjustments
SFAS No.158(in millions of yen)

Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets (liabilities) . . . . . . . . . . . . . . . . . . . . . . . .
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income . . . . . . . . . . . . . .

—133,11127,880
474
—
(692)

709
224,215(1,019)(91,502)
2,894
131,547709
357,326
26,861(91,028)2,894
130,855

Partial withdrawal of assets from employee retirement benefit trusts
During the fiscal year ended March 31, 2007, certain subsidiaries of MHFG partially withdrew assets from
employee retirement benefit trusts, which were established for the payment of employees’ severance pay andretirement pensions. Overall, the trusts remain in overfunded status as of March 31, 2007. No gains or losses
have been recognized as a consequence of this transaction.
Net periodic benefit cost and funded status
Net periodic benefit cost of the severance indemnities and pension plans, net of contributions made byemployees, for the fiscal years ended March 31, 2005, 2006 and 2007 includes the following components:
2005

2006
(in millions of yen)

2007

Service cost-benefits earned during the fiscal year . . . . . . . . . . . . . . . . . . . . . .
Interest costs on projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of unrecognized prior service benefit . . . . . . . . . . . . . . . . . . . . .
Amortization of net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special termination benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,45439,566(54,934)——
17,761—

28,90837,751(62,947)
(463)
71
5,936
(620)

23,19037,700(77,286)(440)(16,198)
5,485(5,023)

Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,847

8,636(32,572)

Weighted-average assumptions used:
Discount rates in determining expense . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discount rates in determining benefit obligation . . . . . . . . . . . . . . . . . . .
Rates of increase in future compensation level for determining
expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rates of increase in future compensation level for determining benefit
obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected rates of return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.54%
2.45%

2.45%
2.55%

2.55%
2.09%

1.67-5.31% 1.40-5.31% 1.37-5.67%
1.40-5.31% 1.37-5.67% 1.51-5.76%
3.43%
3.63%
3.72%

As of March 31, 2007, the amounts in Accumulated other comprehensive income, which will be amortized asprior service benefit and actuarial gain over the next year, are estimated to be ¥441 million and ¥5,864 million,
respectively.
F-52

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In estimating the discount rate, the MHFG Group used interest rates on high-quality fixed-income governmental
and corporate bonds that received a rating of AA(Aa) or higher from rating agencies. The durations of suchbonds closely match that of the pension benefit obligation. Assumed discount rates were reevaluated at eachmeasurement date.
The following table sets forth the combined funded status and amounts recognized in the accompanying
consolidated balance sheets at March 31, 2006 and 2007 for the plans of MHFG and its subsidiaries.
Accordingly, funded status and amounts recognized in the table below show the combined amounts of thosepresented in the consolidated financial statements of these subsidiaries.
2006
2007
(in millions of yen)

Change in benefit obligation:
Benefit obligation at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer of substitutional portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lump-sum payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefit obligation at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets:
Fair value of plan assets at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer of substitutional portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Partial withdrawal of assets from employee retirement benefit trusts . . . . . . . .
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,551,253 1,543,131
28,90823,19037,75137,700
1,156
1,208
(430)
—
(896)
—
(3,432) (388,368)(15,401) 125,594
1,713
2,472
(40,140)(38,476)(17,351)(19,318)
1,543,131 1,287,133
1,601,122 2,072,727
476,814
42,163
1,039
1,807
(389)
—
(1,730) (209,361)—(288,645)
34,85536,1751,156
1,208(40,140)(38,476)
2,072,727 1,617,598
529,596
330,465(400,196)—(4,753)—
124,647
330,465

Amounts recognized in the consolidated balance sheets consist of:Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss (income) before-tax . . . . . . . . . . . . . . .

153,016(29,968)
1,599

357,326(26,861)(224,068)

Amounts recognized in Accumulated other comprehensive loss (income) before-tax
consist of:
Additional minimum pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior service cost (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,599
—
—
1,599

—
(4,319)(219,749)(224,068)

F-53

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note: The aggregated accumulated benefit obligations of these plans were ¥1,517,356 million and¥1,246,330 million, respectively, as of March 31, 2006 and 2007. The severance indemnities plans
generally employ a multi-variable and non-linear formula based upon compensation at the time ofseverance, rank and years of service. Employees with service in excess of one year are qualified to receive
lump-sum severance indemnities.
The projected benefit obligations, accumulated benefit obligations and fair value of plan assets for the plans of
MHFG and its subsidiaries with accumulated benefit obligations in excess of plan assets were ¥43,991 million,¥43,031 million and ¥25,390 million, respectively, at March 31, 2006 and ¥46,251 million, ¥45,278 million and¥31,057 million, respectively, at March 31, 2007.
Pension plans are not fully integrated among subsidiaries of MHFG and plan assets are managed separately byeach plan.
Asset allocation
Pension plan asset allocations of MHFG and certain subsidiaries at March 31, 2006 and 2007, by asset category
are as follows:
Fair value of pension plan assets
at March 31,
2006
2007

Asset category

The EPF assets:
Fund for corporate pension:
Japanese equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japanese debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General account of life insurance companies . . . . . . . . . . . . . . . . . . . . . . .
Non-Japanese equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Japanese debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fund for substitutional portion:
Japanese short-term monetary assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total EPF assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets retained in employee retirement benefit trusts:
Japanese equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.38%
6.72%
3.81%
5.35%
7.72%
0.38%
30.36%

8.19%
9.78%
5.09%
7.39%
10.91%
0.50%
41.86%

10.29%
40.65%— %41.86%

59.35%

58.14%

100.00%100.00%Included in Japanese equity securities was ¥56,725 million (2.74% of contributory pension plan assets) and¥51,720 million (3.30% of contributory pension plan assets) of the MHFG Group common stock at March 31,
2006 and 2007, respectively.
Included in Japanese debt securities was ¥902 million (0.04% of contributory pension plan assets) and¥666 million (0.04% of contributory pension plan assets) of the MHFG Group debt securities at March 31, 2006
and 2007, respectively.

F-54

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Investment policies
MHFG and certain subsidiaries’ target asset allocation for funds for the EPF plans is as follows:
Asset ratio at
March 31, 2007

Asset category

Japanese equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japanese debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Japanese equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Japanese debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17.00%
42.00%
15.00%
26.00%

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

100.00%In managing assets for the EPF, the MHFG Group determines the appropriate levels of risk that the MHFG
Group can assume under the given circumstances to maximize the investment returns from a long-term
perspective while ensuring that 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 riskthat the MHFG Group can assume, it primarily considers the following factors: the employers’ burden ofmaintaining the benefit plans based on the design of the plans and future plan contributions, the age distributionof the plan participants and beneficiaries, the financial conditions of the employers, and the employers’ ability toabsorb future variability in plan premiums. The long-term asset allocation is based on optimal portfolios, which
are estimated by expected return and risk according to each asset class. Additionally, the asset allocation isreviewed whenever there are large fluctuations in pension plan liabilities caused by modifications of pension
plans, or there are changes in the market environment.
The employee retirement benefit trusts have been established to isolate assets held by employers and designate
the separated assets for the settlement of retirement benefits. These assets are primarily Japanese equity securities
and have been entrusted directly with qualified trustees including trust banks.
The plan assets designated to the TQPPs have been invested in assets with low investment risk because the plans
have already been closed to new participants.
Basis and procedure for estimating long-term return of each asset class
The expected long-term return is 3.70% for funds for the EPF plans. The expected rate of return for each asset
class is based primarily on various aspects on long-term prospects for the economy that include historicalperformance and the market environment.
Cash flows
MHFG and certain subsidiaries expect to contribute approximately ¥35 billion to their pension plans in the fiscal
year ending March 31, 2008 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 year indicated:(in millions of yen)

Fiscal year ending March 31:
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013-2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

56,90758,621
59,95160,422
61,039321,133

22. Derivative financial instruments
The MHFG Group uses derivative financial instruments in response to the diverse needs of customers, to control
the risk related to the assets and liabilities of the MHFG Group, as part of its asset and liability management, andfor proprietary trading purposes. The MHFG Group is exposed primarily to market risk associated with interest
rate, commodity, foreign currency, and equity products and credit risk associated with counterparty default or
nonperformance on transactions.
Market risk arises from changes in market prices or indices, interest rates and foreign exchange rates that may
result in an adverse change in the market 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.
Credit risk arises from counterparty failure to perform according to the terms and conditions of the contract andthe 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 and its potential increase at thebalance 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 basedon an individual credit analysis of each obligor and evaluating credit features of each instrument. In addition,
credit approvals, limits and monitoring procedures are also imposed.
The Group enters into the following derivative transactions that do not qualify for hedge accounting under
SFAS No.133 with a view to implementing risk management hedging strategies: (1) interest-rate swap
transactions for the purpose of hedging interest-rate risks in deposits, loans etc. and (2) currency swap
transactions for the purpose of hedging the foreign exchange risk of these assets. Hedge accounting is not
adopted with respect to these transactions and such derivatives are accounted for as trading positions.
Hedging activities
In order to qualify for hedge accounting under SFAS No.133, 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
documentation of 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.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair value hedges
The MHFG Group primarily uses bond options to modify exposure to changes in fair value of available-for-saledebt securities. For qualifying fair value hedges, all changes in the fair value of the derivative and thecorresponding hedged item relating to the risk being hedged are recognized in earnings in Investment gains—net.
The change in fair value of the portion of the hedging instruments excluded from the assessment of hedge
effectiveness is recorded in Trading account gains—net. If the hedge relationship is terminated, the fair value
adjustment to the hedged item continues to be reported as part of the basis of the item and is amortized toearnings as a yield adjustment.
Net investment hedges
The MHFG Group uses forward foreign exchange contracts and foreign currency-denominated debt instruments
to protect the value of net investments in non-Japanese subsidiaries from foreign currency exposure. Under net
investment hedge, both derivatives and nonderivative financial instruments qualify as hedging instruments. For
net investment hedges, the changes in the fair value of a hedging derivative instrument or nonderivative hedging
financial instrument is recorded in Foreign currency translation adjustments within Accumulated othercomprehensive income, provided that the hedging instrument is designated and is effective as a hedge of the net
investment. The portion of the hedging instruments excluded from the assessment of hedge effectiveness isrecorded in Foreign exchange gains (losses)—net in earnings.
The following table summarizes certain information related to the MHFG Group’s hedging activities for the
fiscal years ended March 31, 2005, 2006 and 2007:
2005

Fair value hedges:
Hedge ineffectiveness recognized in earnings . . . . . . . . . . . . . . . . . . . . . . . . . .
Net loss excluded from assessment of effectiveness . . . . . . . . . . . . . . . . . . . . .
Net investment hedges:
Net gain (loss) included in foreign currency translation adjustment within
accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . .

2006
2007
(in millions of yen)———
(20,257) (20,793) (12,035)

25,699(16,230) (29,710)

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. The 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 Group records all guarantees and similar obligations subject to FIN No.45, “Guarantor’s Accounting andDisclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others—aninterpretation of FASB Statements No.5, 57, and 107 and rescission of FASB Interpretation No.34”(“FIN No.45”) at fair value on the consolidated balance sheets at the inception of the guarantee. The carrying
amount of guarantees and similar obligations at March 31, 2006 and 2007 was ¥29,528 million and¥30,777 million, respectively, and was included in Other liabilities.
The types of guarantees under FIN No.45 provided by the MHFG Group are described below.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 an obligation to guarantee the customer’s 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.
Guarantees on securities
Guarantees on securities include an obligation to guarantee securities, such as bonds issued by customers.
Other guarantees
Other guarantees include an obligation to guarantee customers’ payment, 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 compensate for any loss in the principal of the trust. The MHFG Group manages and administers the trust
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, theMHFG Group also manages the trust assets separately from its own proprietary assets on behalf of customers andkeeps separate records for the trust activities. The contract amounts of guarantees for repayment of trust principal
were ¥1,350 billion and ¥1,160 billion, at March 31, 2006 and 2007, respectively. 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 relevantJapanese laws concerning the trust business and/or trust agreements. Statutory reserves for loan trusts andreserves for jointly operated designated money trusts are calculated based on the trust principal or the balance ofloans and other assets in the trust accounts. The amounts of such reserves set aside in the trust accounts were
¥3 billion and ¥1 billion at March 31, 2006 and 2007, respectively. Since the probability of principal
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 and the trust beneficiary is unable to compensate the shortfall. To
avoid the demand for payment out of the proprietary assets, the trustee can enter into a special covenant oflimited liability under which the trust creditors agree to limit the trustee’s liability to the value of the trust assets
and to waive the right for compulsory execution against the trustee’s proprietary assets. The amount of trust
liabilities rarely exceeds the amount of trust assets and, therefore, those liabilities are covered by the
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
corresponding trust assets. However, in the event that the trust assets cannot cover all the trust liabilities and thetrustee has to pay out of its proprietary assets, the trustee can require the trust beneficiary to compensate for such
trust liabilities under the Trust Law. The MHFG Group regularly monitors the condition of trust accounts tominimize exposures against making such payment.
At March 31, 2006 and 2007, there were liabilities of ¥6,716 billion and ¥6,074 billion, respectively, in the trust
accounts excluding the liabilities with the special covenant of limited liability. Liabilities of trust accounts
principally include obligations to return collateral under security lending transactions and others.
Derivative financial instruments
Certain written options and credit default swaps are deemed guarantees pursuant to the definition of guarantees in
FIN No.45 if (i) these contracts require the MHFG Group to make payments to counterparties based on changes
in an underlying instrument or index, (ii) the contract cannot be cash-settled, and (iii) it is probable that thecounterparty held the underlying instrument at inception of the contract. Because it is difficult in practice todetermine whether condition (iii) exists, the MHFG Group has decided to include all credit default swaps andcertain written options, excluding written options outside the scope of FIN No.45 such as written call options, inthe mandatory guarantee disclosures, irrespective of whether the counterparty has the asset or liability relating to
the underlying.
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, 2006 and 2007. The maximum potential amount of future payments disclosed below
represents the contractual amounts that could be repaid in the event of guarantees execution, without
consideration of possible recoveries under recourse provisions or from collateral held. With respect to written
options included in derivative financial instruments of the table below, in theory, the MHFG Group is exposed tounlimited losses; therefore, the table shows 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
sub-participation to reduce the credit risk associated with guarantees. The maximum exposure or notionalamounts below does not represent the expected losses from the execution of the guarantees.

2006

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 millions of yen)

1,327,584
1,247,128
47,4591,056,314

707,057
165,896
18,431
762,961

529,992
100,61123,014
259,597

90,535980,6216,014
33,756

1,349,561
6,716,288
45,862,247

244,834
6,479,646
31,455,068

574,763
42,008
11,899,386

529,964
194,634
2,507,793

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

2007

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 millions of yen)

1,678,749
1,126,958
23,977
1,057,360

857,718
153,488
17,314
764,768

661,875
101,540
4,065
260,787

159,156
871,930
2,598
31,805

1,159,966
6,073,687
120,008,379

183,1635,838,807
86,819,597

471,070
50,61827,545,378

505,733
184,2625,643,404

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.
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.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below summarizes the contractual amounts with regard to these undrawn commitments at March 31,
2006 and 2007:
2006
2007
(in millions of yen)

Commitments to extend credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,478,601 47,904,584
Commitments to invest in securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
132,734
136,544
Commercial letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
462,805
535,845
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45,074,140

48,576,973

Allowance and provision (credit) for losses on off-balance-sheet instruments
Other liabilities include an allowance for losses on off-balance-sheet instruments. Changes in the allowance forlosses on off-balance-sheet instruments for the fiscal years ended March 31, 2006 and 2007 are shown below:
2005
2006
2007
(in millions of yen)

Balance at beginning of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision (credit) for losses on off-balance-sheet instruments . . . . . . . . . . . . . . . . . .
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

77,754 51,981(25,773) 34,023——

86,004(37,821)
4,264

Balance at end of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51,981

43,91986,004

LeasesThe MHFG Group leases certain office space and equipment under noncancelable agreements. Future minimum
rental commitments for noncancelable leases at March 31, 2007 were as follows:
Capitalized leases Operating leases(in millions of yen)

Fiscal year ending March 31:
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,496
8,454
6,248
3,127
1,061
373

39,28935,572
22,97822,233
19,77051,118

Total minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,759190,960

Amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,488

Present value of minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . .

27,271

Total rental expense for the fiscal years ended March 31, 2005, 2006 and 2007 was ¥26,087 million,¥34,134 million and ¥38,742 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 at total lease payment for the whole period of ¥214,690 million.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The MHFG Group recorded the transactions as operating leases. The future minimum lease payments under theterms of the related lease agreements were ¥168,945 million, ¥144,182 million and ¥119,419 million atMarch 31, 2005, 2006 and 2007, respectively.
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 disputes 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 lawsuitsbrought by the obligors under the bonds in Indonesia. The Group’s consolidated financial statements do notinclude a reserve in relation to these disputes 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. Minority interest in consolidated subsidiaries
Minority interest represents the equity for the remaining outstanding voting stock of subsidiaries not owned by
the MHFG Group. The changes in minority interest in fiscal years ended March 31, 2005, 2006, and 2007
consisted of minority interest in net income or loss of subsidiaries, minority interest in changes in othercomprehensive income of subsidiaries and changes resulting from changes in the ownership percentage of theGroup in certain subsidiaries.
On September 29, 2004, MHSC issued and sold 681,000 shares to Norinchukin Bank, a third party, in order toreinforce its business relationships with agricultural and forestry financial institutions, strengthen its capital baseand enhance its profitability. The sales price was ¥110,000 per share and Norinchukin Bank’s investment in
MHSC amounted to ¥75 billion in cash. As a result of the investment, Norinchukin Bank became a minority
shareholder in MHSC owning 18.5% of its common stock. The MHFG Group realized a gain of ¥14 billion on
the sale of MHSC stock, which is included in Other noninterest income for the fiscal year ended March 31, 2005.
As a result of this transaction, the MHFG Group’s ownership in MHSC was reduced to 81.5%.
For the fiscal year ended March 31, 2006, the MHFG Group sold 250,000,000 shares of equity interest in MHTB
in order to maintain the subsidiary’s status as a listed company in compliance with the change in certain delisting
rules of the TSE. The Group realized a gain of ¥45 billion on the sale of MHTB stock, which is included in Other
noninterest income for the fiscal year ended March 31, 2006. As a result of this transaction, the Group’s
ownership in MHTB was reduced to 70.0% at March 31, 2006.
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, investment funds,
trust arrangements, and structured finance. These transactions are discussed below. The maximum exposure toloss that is discussed in this section is the contractual or notional amounts of liquidity facilities and otheroff-balance-sheet credit related support or notional amount of financing, and it is not indicative of the ongoing
exposure which is managed within the Group’s risk management framework.
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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The tables below present the carrying amount and classification of assets that were collateral for the obligationsof VIEs where the MHFG Group was the primary beneficiary, as of March 31, 2006 and 2007:
Consolidated assets by type of entity

2006
2007
(in millions of yen)

Asset-backed commercial paper/loan programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,850,947 3,256,152
Asset-backed securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
465,929
650,702
Investments in securitization products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
435,524
335,563
Investment funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
832,248
722,398
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated assets by asset classification

4,584,648

4,964,815

2006
2007
(in millions of yen)

Cash and due from banks and deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

118,470
6,602
2,169
7,335
776,140
709,444
117,464
115,897
3,482,883 4,056,344
87,522
69,193

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

4,584,648

4,964,815

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 also provides liquidity and credit support
facilities and financing to the VIEs.
In accordance with the consolidation requirements of FIN No.46R, the MHFG Group consolidated certain of
these conduits, where the MHFG Group was deemed to be the primary beneficiary through participation in a
majority of expected losses, expected residual returns or both.
Asset-backed securitizations
The MHFG Group acts as an arranger of various types of structured finance to meet clients’ various off-balancesheet 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 collateralized loan obligations (“CLO”), synthetic CDO/CLO or otherrepackaged instruments to meet clients’ and investors’ financial needs. The MHFG Group also arranges
F-63

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
securitization transactions including commercial mortgage-backed securities (“CMBS”), residential mortgagebacked securities (“RMBS”) and others. In these transactions, the MHFG Group acts as an underwriter,
placement agent, asset manager, derivatives counter party, and/or investor to debt and equity instruments.
The MHFG Group consolidated several of the entities discussed above because it participated in a majority of
expected losses, expected residual returns or both, through securities it purchases from and/or financing it
provides to the entities.
Investments in securitization products
The MHFG Group invests in, among other things, various types of CDO/CLO, synthetic CDO/CLO andrepackaged instruments, CMBSs and RMBSs arranged by third parties for the purpose of generating current
income or capital appreciation, which all utilize entities that are deemed to be VIEs. In accordance with theconsolidation requirements of FIN No.46R, the MHFG Group consolidated certain of these VIEs, where the
MHFG Group was deemed to be the primary beneficiary through the participation in a majority of expected
losses, expected residual returns or both.
With respect to certain of these three types of VIEs, asset-backed commercial paper/loan programs, asset-backed
securitizations and investments in securitization products, the MHFG Group determined that it was not the
primary beneficiary but had significant variable interests. As of March 31, 2006 and 2007, total assets of such
entities were ¥1,237,943 million and ¥1,522,248 million, respectively, and the MHFG Group’s maximum
exposure to loss was ¥143,090 million and ¥87,073 million, respectively.
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. In accordance with the consolidation requirements of
FIN No.46R, the MHFG Group consolidated certain of these funds, where the MHFG Group was deemed to be
the primary beneficiary because it owned a majority of the interests in these funds, and participated in a majorityof expected losses, expected residual returns or both.
In certain of these entities, the MHFG Group determined that it was not the primary beneficiary but hadsignificant variable interests. As of March 31, 2006 and 2007, the total assets of these entities were¥2,985,724 million and ¥1,501,188 million, respectively, and the MHFG Group’s maximum exposure to loss was¥298,795 million and ¥176,358 million, respectively.
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.
As a trustee, the MHFG Group is required to exercise due care in managing and safe-keeping of the assets
entrusted. Since the MHFG Group manages and administers entrusted assets in a capacity of an agent or
fiduciary on behalf of its customers and is required to segregate trust assets from its proprietary assets, trust
accounts are recorded separately from the MHFG Group’s general accounts and are not included in these
consolidated financial statements.
F-64

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 othercredit-related products, investing in investment grade marketable securities such as Japanese government bonds
and placing cash with the MHFG Group’s subsidiary trust banks (Refer to Note 12 “Due to trust accounts”). The
MHFG Group determined that it does not absorb a majority of expected losses or residual returns in connection
with these trust arrangements and, therefore, the trust accounts are not included in the consolidated financial
statements of the MHFG Group. The balances of guaranteed principal at March 31, 2006 and 2007 were
¥1,350 billion and ¥1,160 billion, respectively. The trust fees for the fiscal years ended March 31, 2005, 2006
and 2007 were ¥13,348 million, ¥21,612 million and ¥7,547 million, respectively. The asset size at March 31,
2006 and 2007 was ¥1,354 billion and ¥1,162 billion, respectively. The MHFG Group’s maximum exposure toloss at March 31, 2006 and 2007 was ¥576 billion and ¥573 billion, respectively.
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; it does not assume risks associatedwith the entrusted assets. For substantially all non-guaranteed trust arrangements, the trust beneficiaries receive
the majority of expected residual returns and absorb the majority of expected losses based on the performance ofthe trust assets. Non-guaranteed trust accounts are not included in the consolidated financial statements of the
MHFG Group.
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. However, the Group’s variable interests in these entities are not significant.
Securitization
The MHFG Group had no significant transfers of financial assets in securitization transactions accounted for as
sales for the fiscal years ended March 31, 2006 and 2007. The MHFG Group securitized mortgage loans during
the fiscal year ended March 31, 2005 and recognized gains of ¥10,847 million on the securitization transactions.
In connection with the securitization transactions, the Group provides servicing for and holds retained interests inthe securitized mortgage loans. The Group’s retained interests consist of subordinated beneficial interests andretained credit exposure. The values of the subordinated beneficial interests are subject to credit risk, interest raterisk and prepayment risk on the securitized financial assets. The retained credit exposure is in the form of aguarantee by a subsidiary of the Group. The carrying amount of this retained credit exposure was not consideredmaterial at March 31, 2006 and 2007. No servicing assets or liabilities were recorded as a result of thesetransactions since the Group received adequate compensation.
Key economic assumptions used in measuring the fair value of the subordinated beneficial interests at the date of
securitization were as follows:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepayment rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted-average life (in years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-65

0.08-2.57%
4.14%
8.18
0.18%

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At March 31, 2006 and 2007, key assumptions used in measuring the fair value of the subordinated beneficial
interests and the sensitivities of the fair value to an immediate adverse change of 10% and 20% in thoseassumptions were as follows:
2006

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepayment rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted-average life (in years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2007

0.22-2.45% 0.98-2.50%
5.68%
6.08%
7.04
6.77
0.15%
0.12%
2006
2007
(in millions of yen)

Carrying value of subordinated beneficial interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discount rate:
Impact of 10% adverse change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of 20% adverse change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepayment rate:
Impact of 10% adverse change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of 20% adverse change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected credit losses:
Impact of 10% adverse change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of 20% adverse change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,582

24,109

761
1,499

741
1,460

307
566

336
647

246
492

166
304

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value
based on a 10 percent variation in assumptions generally cannot be extrapolated because the relationship of thechange in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation ina particular assumption on the fair value of the subordinated beneficial interest is calculated without changing
any other assumption; in reality, changes could be correlated and changes in one factor may result in changes inanother (for example, increases in market interest rates may result in lower prepayments and increased credit
losses), which might magnify or counteract the sensitivities.
The table below summarizes certain cash flows received from securitization for the fiscal years ended March 31,
2005, 2006 and 2007:
2005
2006
2007
(in millions of yen)

Proceeds from securitization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,200
Servicing fees received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164
Cash flows received on subordinated beneficial interests . . . . . . . . . . . . . . . . . . . . . . . .
3,300

—
213
4,033

—
187
3,139

The tables below show the reconciliation between managed basis and on-balance-sheet amounts of mortgage
loans balances including delinquencies at March 31, 2006 and 2007, and that of net credit losses for the fiscal
years ended March 31, 2005, 2006 and 2007:
2006
Principal
balance

Principal balance and delinquencies

Total mortgage loans managed together . . . . . . . . . . . . . . . .
Less:Securitized amounts . . . . . . . . . . . . . . . . . . . . . . . . . . .
On-balance-sheet amounts . . . . . . . . . . . . . . . . . . . . . . . . . .
F-66

2007

Principal
Delinquencies
balance(in millions of yen)

Delinquencies

8,736,157

45,0889,199,057

42,556

254,862
8,481,295

1,005
44,083225,028
8,974,029

1,086
41,470MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Net credit losses

2005
2006
2007
(in millions of yen)

Total mortgage loans managed together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,256 11,249
Less:
Securitized amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
336
578

7,705

On-balance-sheet amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,274

14,92010,671431

The on-balance-sheet amounts in the tables above do not include separately managed mortgage loans, theprincipal balance of which were ¥2,174 billion and ¥2,051 billion at March 31, 2006 and 2007, respectively.
26. Fees and commissions income
Details of Fees and commissions income for the fiscal years ended March 31, 2005, 2006 and 2007 are as
follows:
2005

2006
2007
(in millions of yen)

Deposits, debentures and lending business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,005 113,909
Remittance business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113,777 116,013
Securities-related business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,985 133,188
Trust fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63,04075,778Fees for other customer services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219,339 249,798

116,338
115,940
101,861
66,329282,531

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

682,999

602,146

688,686

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.
27. Concentrations of credit risk
Credit risk is the possibility that loss may occur from counterparty failure to perform according to the terms ofthe contract and if the collateral value held, if any, was not adequate to cover such losses. Concentrations ofcredit risk arise and exist when a number of customers are engaged in similar business activities, or activities inthe same geographic region, or have similar economic characteristics that would cause their ability to meet theircontractual obligations to be similarly affected by changes in economic or market conditions.
The MHFG Group is one of Japan’s largest financial institutions and its main credit exposure is related to Japanbased customers and transactions. Credit risk is controlled through credit approvals, limits and monitoringprocedures. The Group regularly monitors various segments of its credit risk portfolio to assess potential
concentration risks and to obtain additional collateral when deemed necessary.
While the MHFG Group’s credit exposure to customers in certain general industry groups such as construction
and real estate, banks and other financial institutions, and wholesale and retail industries is relatively high, themanagement of the MHFG Group believes that the Group does not have any significant concentration of credit
risk in its business for the fiscal years ended March 31, 2006 and 2007. The management monitors concentrationof industries by the loan classifications designated by the BOJ and concluded that the Group exposure is broadly
diversified along industry lines.
F-67

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
28. Fair value of financial instruments
SFAS No.107, “Disclosures about Fair Value of Financial Instruments” (“SFAS No.107”) requires the disclosureof estimated fair value of financial instruments. Fair value of financial instruments is the current amount thatwould 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, present value cash flow models or other valuation methods. Suchestimation methods are described in more detail below. These estimates could be significantly affected bydifferent sets of assumptions. There are certain limitations to management’s best judgment in estimating fairvalues of financial instruments and inherent subjectivity involved in 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. In addition, the estimates below are only reflective of the fair value of eachcategory of financial instruments but not reflective of the fair value of the MHFG Group on a consolidated basis.
SFAS No.107 does not require the disclosure of the fair value of nonfinancial instruments.
The carrying amount and fair values of certain financial instruments, excluding the financial instruments outside
the scope of SFAS No.107 such as the equity method investments and lease contracts as defined in SFAS No.13,“Accounting for Leases” (“SFAS No.13”), at March 31, 2006 and 2007 are as follows:
2006
2007
Carrying Estimated Carrying Estimatedamountfair value
amountfair value(in billions of yen)

Financial assets:
Cash and due from banks, call loans and funds sold, andreceivables under resale agreements and securities borrowing
transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans, net of allowance for loan losses . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased,
and payables under repurchase agreements and securities
lending transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading securities sold, not yet purchased . . . . . . . . . . . . . . . . . . .
Due to trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper and other short-term borrowings . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . .

20,451
8,825
37,79567,8433,896
3,567

20,451
8,825
37,77968,062
3,896
3,567

22,492
9,505
37,29068,1792,823
4,446

22,492
9,505
37,282
68,433
2,823
4,446

38,551
67,772
6,587
6,466
1,355
7,259
5,355
3,353
3,979

38,551
67,679
6,519
6,466
1,355
7,259
5,448
3,353
3,979

39,364
70,234
4,724
6,351
1,135
5,217
7,047
3,202
4,959

39,364
70,147
4,687
6,351
1,135
5,217
7,162
3,202
4,959

The methodologies and assumptions used to estimate the fair value of the financial instruments are summarized
below.
F-68

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.
Trading securities and trading securities sold, not yet purchased
Trading securities and trading securities sold, not yet purchased have been valued primarily using quoted market
prices or using quoted market prices of comparable instruments. The fair values of trading securities and trading
securities sold, not yet purchased are disclosed in Note 3 “Trading account assets and trading account liabilities”.
Investments
Available-for-sale and held-to-maturity securities have been valued using quoted market prices or using quoted
market prices of comparable instruments. The fair value of investments held by consolidated investmentcompanies is based upon quoted market prices or for non-marketable equity securities, valuations that consider
earnings multiples and/or comparisons to recent market transactions. The fair values of investment securities aredisclosed in Note 4 “Investments”. The fair values of other equity interests are not readily determinable and theircarrying amounts of ¥841 billion and ¥472 billion at March 31, 2006 and 2007, respectively, are 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 fixed rate loans is estimated based on
discount cash flows using interest rates approximating the MHFG Group’s current rates for similar loans,adjusting for inherent credit risk. The carrying value of variable rate loans approximates the fair value since theymature or are repriced within a short period of time. When quoted market prices are available, primarily for loans
to refinancing countries, loans held for dispositions or sales and certain other foreign loans, such market prices
are utilized as estimates for fair value. Nonperforming loans have been fair valued on a loan by loan basis basedon discounted cash flows analysis or appraisal value of underlying collateral as deemed appropriate bymanagement.
Other financial assets
The carrying value of other financial assets, such as accrued interest receivable and accounts receivable frombrokers, dealers, and customers for securities transactions, approximates the fair value of these assets since theygenerally involve limited losses from credit risk or have short-term maturities with interest rates that approximate
market.
Derivative financial instruments
All derivatives are recognized on the consolidated balance sheets at fair value. For exchange traded contracts, fairvalue is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes orvaluation models applied to current market information. The fair values of derivative assets and liabilities arepresented in Note 3 “Trading account assets and trading account liabilities”.
F-69

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Noninterest-bearing deposits, call money and funds purchased and payables under repurchase agreements andsecurities lending transactions
The carrying value of financial liabilities, such as noninterest-bearing deposits and call money and funds
purchased, approximates the fair value of these liabilities since they generally have short-term maturities withinterest rates that approximate market. The carrying value of payables under repurchase agreements andsecurities lending transactions approximates the fair value since the transactions are based on quoted market
prices.
Interest-bearing deposits
The fair value for fixed rate deposits is estimated based on discounted cash flows analysis using current interest
rates for instruments with similar maturities. The carrying value for variable rate deposits approximates the fairvalue since they are repriced within a short period of time.
Debentures
The fair value of debentures is estimated based on quoted market rates when available or discounted cash flow
analysis using current interest rates offered for debentures with similar maturities.
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.
Commercial paper and other short-term borrowings
The carrying value of the majority of other short-term borrowings approximates the fair value since theygenerally have short-term maturities with interest rates that approximate market. The fair value of certain
borrowings is estimated based on discounted cash flows analysis using interest rates approximating the MHFG
Group’s incremental borrowings with similar maturities.
Long-term debt
The fair value of the majority of long-term debt, such as convertible bonds and certain subordinated debt, isestimated based on quoted market prices of the instruments. The fair value of other long-term debt is estimatedusing discounted cash flow analysis using interest rates approximating the MHFG Group’s incremental
borrowings with similar maturities.
Other financial liabilities
The fair value of other financial liabilities, such as accrued interest payable and accounts payable to brokers,
dealers, and customers for securities transactions, approximates the carrying amounts.
The fair values of certain off-balance-sheet financial instruments, such as commitments to extend credit andcommercial letters of credit, are not considered material to the consolidated balance sheets at March 31, 2006 and
2007.
F-70

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
29. 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, 2006 and 2007, 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, 2006 and 2007, 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, 2005, 2006 and 2007.
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.
30. 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 as a measure of the profitabilityof core banking operations in Japan, and is defined as gross profits (or the sum of net interest income, fiduciaryincome, net fee and commission income, net trading income and net other operating income) less general andadministrative expenses (excluding non-recurring expenses). Measurement by net business profits is required forregulatory reporting to the FSA. Therefore, the format and information are presented primarily on the basis ofJapanese GAAP and is 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 (benefit) under U.S. GAAP.
Note 31 “Foreign activities” provides financial information relating to the MHFG Group’s operations bygeographic area.
MHFG manages its business portfolio through the three Global Groups: the Global Corporate Group, the Global
Retail Group, and the Global Asset & Wealth Management Group. The Global Corporate Group consists
primarily of MHCB and MHSC, the Global Retail Group consists primarily of MHBK and MHIS, and the Global
Asset & Wealth Management Group consists primarily of MHTB. Operating segments of MHCB and MHBK are
aggregated within each entity based on customer characteristics and functions. Operating segments of MHCB are
aggregated into three reportable segments, domestic, international, and trading and others. Operating segments of
MHBK are also aggregated into three reportable segments, retail banking, corporate banking, and trading and
F-71

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
others. In addition to the three Global Groups, subsidiaries which provide services to a wide range of customers
and which do not belong to a specific Global Group are aggregated as Others.
The Global Corporate GroupMHCBMHCB is the main operating company of the Global Corporate Group and provides banking and other financial
services to large corporations, financial institutions, public sector entities, foreign corporations, including foreignsubsidiaries of Japanese corporations, and foreign governmental entities.
(1) Domestic
This segment consists of the following six units of MHCB: corporate banking, financial institutions & public
sector business, global syndicated finance, global financial products, global transaction banking, and corporate
restructuring business. This segment provides a variety of financial products and services to large corporations,financial institutions and public sector entities in Japan. The products and services it offers include commercial
banking, advisory services, syndicated loan arrangements, leveraged finance and structured finance.
(2) International
This segment primarily offers commercial banking and foreign exchange transaction services to foreign
corporations, including foreign subsidiaries of Japanese corporations, through MHCB’s overseas network.
(3) Trading and others
This segment consists of the global markets unit and the global portfolio management unit. This segment
supports the domestic and international segments in offering derivatives and other risk hedging products tosatisfy MHCB’s customers’ financial and business risk control requirements. It is also engaged in MHCB’s
proprietary trading, such as foreign exchange and bond trading, and asset and liability management. This
segment also includes costs incurred by headquarters functions of MHCB.
(4) MHSCMHSC is the primary investment banking arm in the Global Corporate Group and offers wholesale securities andinvestment banking services, such as underwriting and trading of bonds and equities, advisory services, andstructured finance, to large and international corporations, financial institutions, and public entities.
(5) Others
This segment consists of MHCB’s subsidiaries other than MHSC. These subsidiaries offer financial products andservices in specific areas of business or countries mainly to customers of the Global Corporate Group.
The Global Retail GroupMHBKMHBK is the main operating company of the Global Retail Group. MHBK provides banking and other financial
services primarily to individuals, SMEs and middle-market corporations through its domestic branch and ATM
network.
F-72

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(6) Retail banking
This segment offers banking products and services, including housing and other personal loans, credit cards,
deposits, investment products, and consulting services, to MHBK’s individual customers through its nationwide
branch and ATM network, as well as telephone and Internet banking services.
(7) Corporate banking
This segment consists of the following two business groups of MHBK: corporate banking and public sectorbanking. These two business groups provide loans, syndicated loan arrangements, structured finance, advisory
services, other banking services, and capital markets financing to SMEs, middle-market corporations, local
governmental entities, and other public sector entities in Japan.
(8) Trading and others
The trading and ALM group supports the retail banking and corporate banking segments in offering derivatives
and other risk hedging products to satisfy MHBK’s customers’ financial and business risk control requirements.
It is also engaged in MHBK’s proprietary trading, such as foreign exchange and bond trading, and asset andliability management. This segment also includes costs incurred by headquarters functions of MHBK.
(9) MHISMHIS offers securities services to individuals and corporate customers of the Global Retail Group and provides
with those corporate customers with support in procuring funds through capital markets.
(10) Others
This segment consists of MHBK’s subsidiaries other than MHIS. These subsidiaries, such as Mizuho Capital and
Mizuho Business Financial Center, offer financial products and services in specific areas of business tocustomers of the Global Retail Group.
The Global Asset & Wealth Management Group(11) MHTBMHTB is the main operating company of the Global Asset & Wealth Management Group and offers products
and services related to trust, real estate, securitization and structured finance, pension and asset management, andstock transfers.
(12) Others
This segment includes companies other than MHTB which are part of the Global Asset & Wealth Management
Group. These companies include Mizuho Private Wealth Management, TCSB and asset management companies.
They offer products and services related to private banking, trust and custody, and asset management.
(13) Others
This segment consists of MHFG and its subsidiaries that do not belong to a specific Global Group but provide
F-73

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
their services to a wide range of customers. Under this segment, the MHFG Group offers non-banking services including
research and consulting services through Mizuho Research Institute, information technology-related services through Mizuho
Information & Research Institute and advisory services to financial institutions through Mizuho Financial Strategy.
The information below for reportable segments for the fiscal year ended March 31, 2007 is derived from the internalmanagement reporting system. Information for the fiscal years ended March 31, 2005 and 2006 is also derived from the internalmanagement reporting system reclassified to conform to the 2007 presentation. 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.
Global Corporate Group
MHCB

2005

Total

Global Asset & WealthManagement Group

Global Retail Group
MHBK

Trading
Interand
Domestic national others MHSC Others
Total
(1)
(2)
(3)
(4)
(5)

Total

Retail Corporatebanking banking
Total
(6)
(7)

Tradingandothers MHIS Others
MHTB Others Others(8)(9)(10) Total
(11)
(12)
(13)

Total

(in billions of yen)

Gross profits: (3)Net interest income(expense) . . . . . . . . . . 400.0 387.2
Net noninterest
income . . . . . . . . . . . . 336.4 193.6

235.0

43.4

108.8

0.2

12.6

662.5 599.3 239.4

338.7

21.2

0.2

63.0

41.6

41.6

(0.0)

2.3 1,106.4

374.4 300.8

107.9

42.6

43.1

84.9

57.9

49.7

187.1

64.0

43.4

30.2 144.7 106.7

38.0

33.9

Total . . . . . . . . . . . . . . . . . 736.4 580.8
General and administrative
expenses . . . . . . . . . . . . 306.1 208.6
Others . . . . . . . . . . . . . . . . (38.5) —

342.9

86.0

151.9

85.1

70.5 1,036.9 900.1 289.1

525.8

85.2

43.6

93.2 186.3 148.3

38.0

36.2 1,995.8

80.7
—

46.2
—

81.7
—

45.4
—

52.1
(38.5)

611.5 549.2 206.5(8.4) —
—

264.0
—

78.7
—

35.2
—

27.1 100.2 71.4
(8.4) (3.7) —

28.8
(3.7)

20.6 1,038.4
5.7(44.9)Net business profits . . . . . . 391.8 372.2

262.2

39.8

70.2

39.7

(20.1)

417.0 350.9

261.8

6.5

8.4

57.7

5.5

21.3

912.5

Tradingandothers MHIS Others
MHTB Others Others(8)(9)(10) Total
(11)
(12)
(13)

Total

Global Corporate Group

82.6

2006

Total

76.9

Global Asset & WealthManagement Group

Global Retail Group

MHCB

82.4

889.4

MHBK

Trading
Interand
Domestic national others MHSC Others
Total
(1)
(2)
(3)
(4)
(5)

Total

Retail Corporatebanking banking
Total
(6)
(7)
(in billions of yen)

Gross profits: (3)Net interest income(expense) . . . . . . . . . 402.6 376.6
Net noninterest income(expenses) . . . . . . . . . 334.9 154.4

211.2

56.6

108.8(2) 1.0

25.0

619.9 569.7 240.2

319.0

10.5

0.6

49.6

46.1

45.7

0.4

(6.0) 1,062.6

417.2 313.3

107.5

55.4

(8.5) 117.7

62.8

45.8

233.2

34.3

72.5

31.4 162.6 120.6

42.0

26.5

Total . . . . . . . . . . . . . . . . . 737.5 531.0
General and administrative
expenses . . . . . . . . . . . . 334.1 215.8
Others . . . . . . . . . . . . . . . . (36.9) —

318.7

112.0

100.3

118.7

87.8 1,037.1 883.0 286.0

552.2

44.8

73.1

81.0 208.7 166.3

42.4

20.5 2,003.8

82.0
—

51.7
—

82.1
—

55.2 63.1— (36.9)583.0 517.3 201.4(7.8) —
—

253.7
—

62.2
—

40.0
—

25.7 110.4 77.9
(7.8) (1.2) —

32.5
(1.2)

13.8 1,041.3
5.9(40.0)Net business profits . . . . . . 366.5 315.2

236.7

60.3

18.2

63.5 (12.2)

446.3 365.7

298.5(17.4) 33.1

47.5

8.7

12.6

F-74

84.6

97.1

88.4

941.2

922.5

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Global Corporate Group
MHCB

2007

Total

Global Asset & WealthManagement Group

Global Retail Group
MHBK

TradingandInterDomestic national others MHSC Others
(3)
Total
(1)
(2)
(4)
(5)

Total

Retail Corporatebanking banking
Total
(6)
(7)

Tradingandothers MHIS Others
MHTB Others Others(8)(9)(10) Total
(11)
(12)
(13)

Total

(in billions of yen)

Gross profits: (3)Net interest income(expense) . . . . . . 407.7 306.5
Net noninterest
income . . . . . . . . 377.6 241.4

202.4

73.4

30.7

(0.2) 101.4

640.6 593.8 262.6

326.6

464.8 384.7

30.3

4.6

1.2

45.6

53.8

52.2

1.6

(11.8) 1,090.3

108.2

59.6

73.6

105.9

53.4

233.3

98.0

61.0

19.1 169.8 121.7

48.1

14.9 1,027.1

Total . . . . . . . . . . . . . . 785.3 547.9
General andadministrative
expenses . . . . . . . . . 377.0 241.0
Others . . . . . . . . . . . . . (44.3) —

310.6

133.0

104.3

105.7 131.7 1,105.4 978.5 316.0

559.9

102.6

62.2

64.7 223.6 173.9

49.7

3.1 2,117.4

88.3
—

61.5
—

91.2
—

61.1
—

74.9
(44.3)

588.5 527.0 199.3(11.5) —
—

245.2
—

82.5
—

43.4
—

18.1 126.2 87.8
(11.5) (1.2) —38.4 (15.8) 1,075.9
(1.2)
7.1
(49.9)Net business profits . . 364.0 306.9

222.3

71.5

13.1

44.6

12.5

505.4 451.5 116.7

314.7

20.1

18.8

35.1

10.1

96.2

86.1

26.0

991.6

Notes:(1) (5) Others, (10) Others, and (12) Others include elimination of transactions between companies within the Global Corporate Group, the Global Retail Group, and the Global
Asset & Wealth Management Group, respectively. (13) Others include elimination of transactions between the Global Groups.
(2) Dividends of ¥120.0 billion received by MHCB from its financial subsidiaries for corporate revitalization are excluded.

(3) Credit-related costs for trust accounts are excluded from gross profits.

Reconciliation
As explained above, the measurement base for the internal management reporting system and the income and expenses items
covered are different from the accompanying consolidated statements of income. Therefore, it is impracticable to present
reconciliations of all the business segments’ information, other than net business profits, to corresponding items in theaccompanying consolidated statements of income.
A reconciliation of total net business profits under the internal management reporting system for the fiscal years ended
March 31, 2005, 2006 and 2007 presented above to income before income tax expense (benefit) shown on the consolidated
statements of income is as follows:
2005
2006
2007
(in billions of yen)

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

912.5

922.5

U.S. GAAP adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Provision) credit for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gains related to equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit-related costs for trust accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-recurring personnel expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains on disposal of premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Provision) credit for losses on off-balance sheet instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minority interest in consolidated subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others—net (Note) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(144.3) (574.4) (144.4)(55.0) 157.7 (182.1)
419.9 302.6(75.2)
(2.7)
(1.4)
—
(7.0) (10.0) (20.4)
80.6
65.5
64.6
25.8
(34.0)
37.8(30.9) (69.1) (27.8)
3.5(47.9) 143.0

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

1,202.4

711.5

991.6

787.1

Note: Amount for the fiscal year ended March 31, 2006 includes a loss of ¥40.7 billion caused by an erroneous stock
brokerage order by an employee of MHSC which is included in Other noninterst expenses. Amount for the fiscal year
ended March 31, 2007 includes a subsidy of ¥177.4 billion related with the substitutional portion of the employee
pension funds which is included in Other noninterest income.
F-75

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
31. 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

Americas

Europe(in millions of yen)

Asia/Oceania
excludingJapan,and others

Total

Fiscal year ended March 31, 2005:
Total revenue (1) . . . . . . . . . . . . . . . .
Total expenses (2) . . . . . . . . . . . . . . .

2,616,599
1,667,733

323,029
155,658

188,524
149,926

86,94939,3443,215,101
2,012,661

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

948,866

167,371

38,59847,605

1,202,440

Net income . . . . . . . . . . . . . . . . . . . .

844,062

157,357

34,843

41,799

1,078,061

Total assets at end of fiscal year . . . .

118,471,292

11,221,033

6,386,197

3,530,018

139,608,540

Fiscal year ended March 31, 2006:
Total revenue (1) . . . . . . . . . . . . . . . .
Total expenses (2) . . . . . . . . . . . . . . .

1,881,447
1,474,765

631,616
369,766

327,827
296,962

112,173
100,040

2,953,063
2,241,533

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

406,682

261,850

30,865

12,133

711,530

Net income . . . . . . . . . . . . . . . . . . . .

808,473

247,720

25,9483,531

1,085,672

Total assets at end of fiscal year . . . .

119,543,382

12,504,917

9,175,911

4,298,182

145,522,392

Fiscal year ended March 31, 2007:
Total revenue (1) . . . . . . . . . . . . . . . .
Total expenses (2) . . . . . . . . . . . . . . .

2,249,478
1,854,864

843,056
641,545495,353
387,477

247,368
164,266

3,835,255
3,048,152

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

394,614201,511

107,876

83,102

787,103

Net income . . . . . . . . . . . . . . . . . . . .

254,240

192,602104,817

72,223623,882

Total assets at end of fiscal year . . . .

111,842,599

17,390,251

13,003,340

5,145,089

147,381,279

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-76

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following are certain asset and liability accounts related to foreign activities at March 31, 2006 and 2007:
2006

2007

(in millions of yen)

Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits, principally time deposits and CDs by foreign banks . . . . . . . . . . . . . . . . . . . .
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading account liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

93,115571,2722,888,835
6,740,098
8,214,629
7,202,967
9,141,127
2,034,343
517,556

180,636
583,192
2,968,798
10,656,263
10,399,813
9,571,899
13,129,328
2,822,727
481,747

32. Mizuho Financial Group, Inc., parent company
The following tables present the parent company only financial information of MHFG:
Condensed balance sheets
2006
2007
(in millions of yen)

Assets:Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-bearing deposits in other banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in subsidiaries and affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

85
2,276
6,098,678
285,416100
2,627
5,982,726
264,879

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

6,386,455

6,250,332

Liabilities and shareholders’ equity:
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,037,000 1,583,000
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,741
4,632
Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,345,714 4,662,700
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-77

6,386,455

6,250,332

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Condensed statements of income
2005

2006
(in millions of yen)

2007

Income:Dividends from subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management fees from subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sales of securities of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . .
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,737
12,757
29
147

112,528 1,220,998
16,462
29,10236,304—
4,187
828

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

26,670169,481

1,250,928

Expenses:
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,799174
580

13,478
1,999
6,468

19,206
12,3093,971

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

12,553

21,94535,486Equity in undistributed net income (loss) of subsidiaries . . . . . . . . . . . . . . . .

1,064,505

938,128(591,633)

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

1,078,622
561

1,085,664(8)

623,809(73)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,078,061

1,085,672

623,8822006(in millions of yen)

2007

Condensed statements of cash flows
2005

Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) operating activities . . . . . . . . . .

1,078,061 1,085,672(1,100,318) (1,211,343)(125,671)

1,238,652

516,451 2,198,053—(2,932,184)(3,113)(1,054)33,000(5)(2,065)

Net cash provided by (used in) investing activities . . . . . . . . . .

513,338(735,185)

30,930Cash flows from financing activities:
Net change in commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in other financing activities . . . . . . . . . . . . . . . . . . . . . . .

87,000—(500,477)(77,652)85(152,000)
2,037,000(944,321)(79,867)61—(454,000)(734,285)(81,365)
83

Net cash provided by (used in) financing activities . . . . . . . . . .

(491,044)

860,873(1,269,567)

Net increase in cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and due from banks at beginning of fiscal year . . . . . . . . . . . . . . . . .

37
31

17
68

15
85

Cash and due from banks at end of fiscal year . . . . . . . . . . . . . . . . . . . . . .

68

85

100

Cash flows from investing activities:
Proceeds from sales of securities of subsidiaries . . . . . . . . . . . . . . . .
Payments for purchases of securities of subsidiaries . . . . . . . . . . . . .
Net change in other investing activities . . . . . . . . . . . . . . . . . . . . . . .

F-78(22,257)

623,882
614,770

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
33. Subsequent events
Approval of dividends
On June 26, 2007, the shareholders approved payment of cash dividends to the shareholders of record on
March 31, 2007, of ¥20,000 per share of Eleventh series class XI preferred stock, totaling ¥18,875 million, of¥30,000 per share of Thirteenth series class XIII preferred stock, totaling ¥1,101 million, and of ¥7,000 per shareof common stock, totaling ¥83,081 million.
Repurchase and cancellation of treasury stock
MHFG repurchased and cancelled treasury stock held by its subsidiary on May 28, 2007. The details were as
follows.
Number of shares
repurchased and Total amount ofcancelled
repurchase(shares)(in millions of yen)

Common stock . . . . . . . .

261,040

221,101

Repurchased from

Repurchase andcancellation dateMizuho Financial Strategy Co., Ltd.

May 28, 2007

Since this was a transaction within the consolidated group, no gains or losses were recorded on a consolidated
basis. As a result of the cancellation, common stock and treasury stock each decreased by ¥30,236 million.
Repurchase of common stock
On May 22, 2007, the board of directors of MHFG resolved to repurchase common stock. The details were as
follows.

Common stock . . . . . . . . . . . . . . . . . . . . . . . .

Number of shares
to be repurchased(shares)

Total amount ofrepurchase(in millions of yen)

Period of repurchase

Up to a maximumof 250,000

Up to a maximumof 150,000

From: June 1, 2007
To: November 30, 2007

The repurchase will offset the potential dilutive effect of the conversion of Eleventh series class XI preferredstock in consideration of the possibility that the number of shares of common stock will increase after thecommencement of the conversion period from July 1, 2008. All common stock repurchased are planned to becancelled.

F-79

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Redemption of preferred securities
On April 20, 2007, the board of directors of MHFG resolved to redeem non-cumulative perpetual preferred
securities issued by overseas special purpose companies whose voting rights are wholly owned by MHFG. Those
entities are not consolidated in accordance with FIN No.46R since the Group is not the primary beneficiary.
Thus, the redemption of preferred securities did not reduce Minority interest in consolidated subsidiaries, but
Long-term debt in the Group’s consolidated balance sheets. However, on June 29, 2007, when the preferred
securities were redeemed, it had a decreasing effect on Tier 1 capital. The following table describes the details of
the redeemed preferred securities.
IssuerAggregate
redemption amount(in millions of yen)

Reason for the redemption

Mizuho Preferred Capital (Cayman) 1 limited . . . . . .
Mizuho Preferred Capital (Cayman) 2 limited . . . . . .

112,500
73,000Arrival of optional redemption date
Arrival of optional redemption dateF-80

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/ Terunobu Maeda
Name: Terunobu Maeda
Title: President & CEO
August 10, 2007

EXHIBIT INDEXExhibit
Number*Description of Exhibits

1.1

Articles of Incorporation of Mizuho Financial Group, Inc., dated June 26, 2007 (English Translation)

1.2

Bylaws Regarding the Board of Directors of Mizuho Financial Group, Inc., effective from January 8,
2003 and as amended on June 27, 2006 (English Translation)*

1.3

Regulations of Board of Corporate Auditors of Mizuho Financial Group, Inc., effective from January
9, 2003 and as amended on September 25, 2006 (English Translation)*

1.4

Share Handling Regulations of Mizuho Financial Group, Inc., dated June 15, 2007 (English
Translation)

2.1

Specimen of common stock certificates*

2.2

Form of American Depositary Receipt*

2.3

Form of Deposit Agreement among the registrant, The Bank of New York as Depositary and allowners 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

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).
Incorporated by reference to our registration statement on Form 20-F (No. 001-33098) filed on October 19,
2006.

Exhibit 1.1
Articles of IncorporationofMizuho Financial Group, Inc.
June 26, 2007

[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 underthe Banking Law; 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) Corporate Auditors;(3) Board of Corporate Auditors; and(4) Accounting Auditors.
Article 5.

(Method of Public Notices)

Public notices by the Company shall be given in the Nihon Keizai Shimbun.

CHAPTER IISHARES
Article 6.

(Total Number of Authorized Shares)

The total number of shares which the Company is authorized to issue shall be 29,266,700 shares, and eachtotal number of the classes of shares which the Company is authorized to issue shall be as set forth below;
1

provided, however, that in the case where a cancellation of shares is made, the number of shares which theCompany is authorized to issue shall be reduced by the number of shares so canceled:
Common stock:24,868,200 sharesClass XI preferred stock:

1,398,500 sharesClass XII preferred stock:

1,500,000 sharesClass XIII preferred stock:

1,500,000 shares

Article 7.

(Issuance of Share Certificates)

The Company shall issue share certificates representing its issued stock.
Article 8.

(Acquisition of Own Shares)

The Company may, by a resolution of the Board of Directors, acquire its own stock through market
transactions or other methods pursuant to the provisions of Article 165, Paragraph 2 of the Company Law ofJapan (the “Law”).
Article 9.

(Additional Purchase of Fractional Shares)

As provided for in the Share Handling Regulations, any holder of fractional share shall be entitled todemand that the Company sell to the holder of fractional share the fraction of a share that would, together withthe fractional share owned by such holder of fractional share, constitute one share.
Article 10.

(Record Date)

1. The Company shall deem shareholders having voting rights appearing in writing or electronically in theregister of shareholders (including the register of beneficial shareholders; the same shall apply hereinafter) as ofthe end of March 31 of each year as the shareholders who are entitled to exercise their rights at the ordinary
general meeting of shareholders for the relevant business year.
2. In addition to the preceding paragraph, the Company may temporarily set the record date whenevernecessary, by a resolution of 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 resolution of the Boardof Directors, and a public notice shall be given with respect thereto.
3. The preparation and keeping of, and other operations relating to the register of shareholders, the registerof stock acquisition rights and the register of lost share certificates of the Company shall be entrusted to theshareholder register manager and shall not be handled by the Company.
4. The Company shall appoint a transfer agent with respect to fractional shares, to which the preceding two(2) paragraphs shall apply mutatis mutandis.

2

Article 12.

(Share Handling Regulations)

Denominations of share certificates of the Company and, entry, whether written or electronic, in the registerof shareholder and the register of fractional share, purchase and additional purchase of fractional shares, andother operations relating to shares and fractional shares 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 the Board of Directors, in addition to laws and regulations and these Articles ofIncorporation.

CHAPTER III
PREFERRED STOCK
Article 13.

(Preferred Stock Dividends)

1. In respect of dividends from its surplus provided for in Article 52, the Company shall distribute dividends
from its surplus by cash on preferred stock (hereinafter referred to as the “Preferred Stock Dividends”) in suchamount as provided for below to shareholders of preferred stock (hereinafter referred to as the “Shareholders ofPreferred 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 of Common Stock”), registered stock pledgees in respect of common stock (hereinafter referred toas the “Registered Common Stock Pledgees”) or holders of fractional shares in respect of common stock;
provided, however, that in the case where all or a part of the Preferred 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 the Board of Directors on
the issuance of such stock, which amount shall not exceed
50,000 yen per share

Class XII preferred stock:amount decided by the resolution of the Board of Directors on
the issuance of such stock, which amount shall not exceed
50,000 yen per share

Class XIII preferred stock:amount decided by the resolution of the Board of Directors on
the issuance of such stock, which amount shall not exceed
100,000 yen per share

2. 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 53, the Company shall distribute dividends from its
surplus by cash in one half of the amount of the Preferred Stock Dividends provided for in the main clause of
Paragraph 1 of the preceding article (referred to as the “Preferred Stock Interim Dividends” in these Articles ofIncorporation) to the Shareholders of Preferred Stock or Registered Preferred Stock Pledgees in priority to the
Shareholders of Common Stock, Registered Common Stock Pledgees or holders of fractional share in respect ofcommon stock.
3

Article 15.

(Distribution of Residual Assets)

1. In respect of distribution of residual assets, the Company shall pay to the Shareholders of Preferred Stockor Registered Preferred Stock Pledgees in priority to the Shareholders of Common Stock, Registered Common
Stock Pledgees or holders of fractional share in respect of common stock in such amount as provided for below:
Classes XI through XIII preferred stock:

1,000,000 yen per share

2. No distribution of residual assets other than those provided for in the preceding paragraph shall be madeto 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 a general
meeting of shareholders, in the case where a proposal on the Preferred Stock Dividends is not submitted to suchgeneral meeting of shareholders, or immediately after the closing of a general meeting of shareholders, in thecase where a proposal on the Preferred Stock Dividends is rejected at such general meeting of shareholders, until,
in either case, such time as the resolution of a 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
Allotment of 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 ofoffered stock, offered stock acquisition rights, bonds with stock acquisition rights, or offered stock acquisitionrights 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 Classes XII and XIII preferred stock, the Company may acquire each such class of preferredstock, in whole or in part, on the date separately determined by a resolution of a general meeting of shareholders,after such time and at such acquisition price as respectively determined by a resolution of 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)

Any holder of Classes XI and XII 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 ofPreferred Stock is entitled to request such acquisition as determined by a resolution of the Board of Directors
relating to the issuance of the relevant preferred stock (hereinafter 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 thenumber of the common stock to be delivered per one (1) share of the relevant preferred stock upon such request
for acquisition, shall be determined by a resolution of the relevant Board of Directors.
4

Article 20.

(Mandatory Acquisition of Preferred Stock)

1. The Company may acquire any of Classes XI and XII 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 thelast 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 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 the relevant
preferred stock by the current market price of the common stock of the Company; provided, however, that suchcurrent market price 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 (in regular 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 orclosing bids or offered prices are reported) commencing on the 45th trading day prior to the Mandatory
Acquisition Date, and such calculation shall be made to units of ten (10) yen, and by rounding up to the nearest
100 yen when equal to or more than fifty (50) yen and disregarding amounts less than fifty (50) yen.
2. In respect of Classes XI and XII preferred stock, the number of common 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 preferred stock by the minimum acquisition price determined by
the resolution of the Board of Directors relating to the relevant issuance of the preferred stock.
3. In the calculation of the number of common stock provided for in the preceding two (2) paragraphs, any
number less than one (1) share shall be treated pursuant to the provisions provided for in Article 234 of the Law.
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.

(Place where General Meetings of Shareholders shall be Convened)

General meetings of shareholders shall be convened within the wards of Tokyo.
Article 24.

(Person Authorized to Convene General Meetings of Shareholders and the Chairman of the
Meeting)

1. The President shall convene and preside over the general meeting of shareholders.
2. In the case where the President is unable so to act, one of the other Director(s) in the order previously
determined by the Board of Directors shall take such person’s place.

5Article 25.

(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 26.

(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 Law 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 27.

(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 ofsuch proxy to act as such at each general meeting of shareholders.
Article 28.

(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 29.

(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 the voting
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 Law shall be adopted by an affirmative voteof not less than two-thirds (2/3) of the voting rights held by the holders present at the relevant meeting who shallhold 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 through 25 and 27 and the preceding Article shall apply mutatis mutandis to
the general meetings of holders of classes of stock.

CHAPTER V
DIRECTORS AND BOARD OF DIRECTORS
Article 30.

(Number)

The Company shall have not more than fifteen (15) Directors.
6

Article 31.

(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 ofthe voting 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 32.

(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 33.

(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 two (2) years after their appointment.
Article 34.

(Representative Director(s) and Director(s) with Titles)

1. The Representative Director(s) shall be designated by a resolution of the Board of Directors.
2. The President shall be appointed by a resolution of the Board of Directors.
3. The Board of Directors may, by its resolutions, appoint Chairman, Deputy Chairman, Deputy
President(s), Senior Managing Director(s) and Managing Director(s).
Article 35.

(Duties of the President)

The President shall oversee the operations of the Company.
Article 36.

(Person Authorized to Convene Meetings of the Board of Directors and Chairman of the Meeting)

1. Unless otherwise provided for by laws or regulations, the President shall convene and preside over the
meeting of the Board of Directors.
2. In the case where the President is unable so to act, one of the other Director(s) in the order previously
determined by the Board of Directors shall take such person’s place.
Article 37.

(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 and Corporate
Auditor 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 and Corporate Auditors.

7

Article 38.

(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.
Article 39.

(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, the Director(s) and Corporate Auditors present thereat shall affix theirnames and seals thereon, or electronic signatures thereto.
Article 40.

(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 41.

(Liability Limitation Agreements with Outside Director(s))

Pursuant to the provisions provided for in Article 427, Paragraph 1 of the Law, 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 Law 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 VICORPORATE AUDITORS AND BOARD OF CORPORATE AUDITORS
Article 42.

(Number)

The Company shall have not more than six (6) Corporate Auditors.
Article 43.

(Method of Appointment)

1. The Corporate Auditors shall be appointed at a general meeting of shareholders.
2. A resolution for appointment of Corporate Auditors shall be adopted by an affirmative vote of a majorityof the voting 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.
Article 44.

(Term of Office)The term of office of Corporate Auditors shall expire at the closing of the ordinary general meeting ofshareholders concerning the last business year ending within four (4) years after their appointments.
Article 45.

(Full-Time Corporate Auditor(s))

The Board of Corporate Auditors shall, by its resolution, designate full-time Corporate Auditor(s).

8Article 46.

(Notice to Convene Meetings of the Board of Corporate Auditors)

1. Notice to convene a meeting of the Board of Corporate Auditors shall be given to each Corporate Auditor
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 Corporate Auditors may be held without taking the procedures of convocation
with the consent of all the Corporate Auditors.
Article 47.

(Method of Adopting Resolutions of the Board of Corporate Auditors)

Resolutions of a meeting of the Board of Corporate Auditors shall be adopted by an affirmative vote of amajority of the Corporate Auditors, unless otherwise provided for by laws or regulations.
Article 48.

(Minutes of Meetings of the Board of Corporate Auditors)

The minutes of the meetings of the Board of Corporate Auditors shall be prepared in writing or byelectromagnetic file as provided for in laws and regulations, and the Directors and Corporate Auditors present
thereat shall affix their names and seals thereon or electronic signatures thereto.
Article 49.

(Regulations of the Board of Corporate Auditors)

Matters concerning the Board of Corporate Auditors shall be governed by the Regulations of the Board of
Corporate Auditors prescribed by the Board of Corporate Auditors, in addition to laws and regulations and these
Articles of Incorporation.
Article 50.

(Liability Limitation Agreements with Outside Corporate Auditor(s))

Pursuant to the provisions provided for in Article 427, Paragraph 1 of the Law, the Company may enter into
liability limitation agreements with any Outside Corporate Auditor which limit the liability provided for in
Article 423, Paragraph 1 of the Law 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
Corporate Auditor is bona fide and without gross negligence in performing his/her duty.

CHAPTER VII
ACCOUNTING
Article 51.

(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 52.

(Dividends from Surplus Approved by Resolution of Ordinary General Meeting of Shareholders)

Dividends from the surplus approved by a resolution of an ordinary general meeting of shareholders shall be
distributed to the shareholders or registered stock pledgees appearing in writing or electronically in the register ofshareholders as of the end of March 31 of each year or to the holders of fractional share appearing in writing orelectronically in the register of fractional share as of the end of March 31 of each year.

9Article 53.

(Interim Dividends)

The Company may, by a resolution of the Board of Directors, distribute interim dividends provided for in
Article 454, Paragraph 5 of the Law to the shareholders or registered stock pledgees appearing in writing orelectronically in the register of shareholders as of the end of September 30 of each year or to the holders offractional share appearing in writing or electronically in the register of fractional share as of the end of
September 30 of each year.
Article 54.

(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.

10

Exhibit 1.4[Translation]

This is a translation of a document written in Japanese, and has been prepared for reference purpose only.

Share Handling Regulations(as of June 15, 2007)

Mizuho Financial Group, Inc.

SHARE HANDLING REGULATIONSOFMIZUHO FINANCIAL GROUP, INC.
CHAPTER I
GENERAL PROVISIONS
Article 1.

(Purposes)

Denominations of share certificates of the Company, and operations relating to shares and fractional sharesand handling fees therefor shall be governed by these Regulations pursuant to the provisions of Article 12 of the
Articles of Incorporation; provided, however, that operations of the beneficial shareholders shall be governed by
the rules of Japan Securities Depository Center, Incorporated (hereinafter referred to as the “JASDEC”) as wellas these Regulations.
Article 2.

(Shareholder Register Manager, etc.)

The shareholder register manager and the transfer agent for fractional shares of the Company (hereinafterreferred to as the “Shareholder Register Manager, etc”.) and their handling offices and liaison offices shall be as
follows:
Shareholder Register Manager and Transfer Agent for fractional shares:
Mizuho Trust & Banking Co., Ltd.
2-1, Yaesu 1-chome, Chuo-ku, Tokyo
Handling Office:Stock Transfer Agency Department of the Head Office of Mizuho Trust & Banking Co., Ltd.
2-1, Yaesu 1-chome, Chuo-ku, Tokyo
Liaison Offices:
All branches in Japan of Mizuho Trust & Banking Co., Ltd.
Head office and all branches in Japan of Mizuho Investors Securities.
Article 3.

(Denominations of Share Certificates)

Denominations of share certificates issued by the Company shall be for one (1), ten (10), and one hundred(100) shares; provided, however, that, if necessary, the Company may issue share certificates for any number ofshares exceeding one hundred (100) shares.
Article 4.

(Method of Requests and Reports, etc.)

1. All procedures including requests and reports with respect to the business delegated to the Shareholder
Register Manager, etc. by the Company shall be made to the Shareholder Register Manager, etc.
2. All procedures including requests, reports, applications and petitions provided for in this Article shall bemade in the form prescribed by the Company with the seal impression affixed which has been reported inaccordance with the provisions of Article 15.
3. If any requests, reports, applications and petitions provided for in the preceding paragraph shall be madeby a proxy, a document certifying the authorization of such proxy shall be submitted.
4. If any requests, reports, applications and petitions provided for in the second paragraph shall be required
to be made with the consent of a curator (hosanin) or an assistant (hojonin), a document certifying such consent
shall be submitted.
1

CHAPTER IIREGISTRATION, ETC. OF TRANSFER OF SHARESArticle 5.

(Registration of Transfer of Shares)

1. In the case of a request for the written or electronic records on the register of shareholders (hereinafterreferred to as the “Registration of Transfer of Shares”), a designated written request therefor shall be submitted,
together with the share certificates concerned setting forth the name of the person so requesting.
2. In the case of a request for the Registration of Transfer of Shares acquired as the result of inheritance,
testament or merger of companies, etc. other than assignment, a document certifying such acquisition shall be
submitted, in addition to the procedures provided for in the preceding paragraph; provided, however, that if noshare certificates have been issued for such shares, submission of share certificates shall not be required.
Article 6.

(Registration of Transfer of Shares Where Special Procedures Shall be Required by Laws orRegulations)

In case the special procedures shall be required by laws or regulations for the Registration of Transfer of
Shares, a designated written request therefor shall be submitted, together with the share certificates concerned
setting forth the name of the person so requesting and a document certifying the completion of such procedures.
Article 7.

(Register of Fractional Share)

The provisions of the second paragraph of Article 5 shall apply mutatis mutandis to a request for any change
in entry, whether written or electronic, in the register of fractional shares as the result of inheritance, testament or
merger of companies, etc. other than assignment.
Article 8.

(Written or Electronic Records in the Register of Beneficial Shareholders)

The written or electronic records in the register of beneficial shareholders shall be made, based upon anotice with respect to beneficial shareholders submitted by the JASDEC and a beneficial shareholder’s card.
Article 9.

(Beneficial Shareholders’ Cards)

Beneficial shareholders shall submit a beneficial shareholder’s card through a participant of JASDEC.
Article 10.

(Integration)

In case a shareholder recorded in writing or electronically in the register of shareholders and a beneficial
shareholder recorded in writing or electronically in the register of beneficial shareholders are deemed to be thesame person according to his/her address and names recorded therein, the number of shares recorded in eachregister shall be integrated with respect to the exercise of shareholders’ rights.

CHAPTER III
REGISTRATION OF PLEDGES AND INDICATION OF TRUST ASSETS
Article 11.

(Registration of Pledges and Cancellation Thereof)

In case registration of a pledge or change or cancellation thereof is requested in respect of shares, adesignated written request therefor bearing signatures of both the pledgor and the pledgee shall be submitted,
together with the share certificates concerned setting forth the name of such pledgee.
2Article 12.

(Indication of Trust Assets and Cancellation Thereof)

In case indication of trust assets or cancellation thereof is requested in respect of shares, a designated written
request therefor shall be submitted either by the trustor or the trustee, together with the share certificatesconcerned.

CHAPTER IV
NON-POSSESSION OF SHARE CERTIFICATES
Article 13.

(Application for Non-possession of Share Certificates)

1. In case non-possession of share certificates by a shareholder is applied for, a designated written
application therefor shall be submitted, together with the share certificates concerned; provided, however, that, if
no share certificates have been issued for such shares, submission of share certificates shall not be required.
2. All share certificates in regard to which an application referred to in the preceding paragraph has been
made shall be placed in non-possession status.
Article 14.

(Request for Issuance of Share Certificates Placed in Non-possession Status)

In case a shareholder who has applied for non-possession of share certificates subsequently requests theissuance of the share certificates, a designated written request therefor shall be submitted.

CHAPTER V
NOTIFICATIONSArticle 15.

(Reports of Addresses, Names, and Seal Impressions of Shareholders, etc.)

1. Shareholders, beneficial shareholders and registered stock pledgees or their legal representatives shallreport their addresses, names and seal impressions by submitting shareholders’ cards or beneficial shareholders’cards, etc.; provided, however, that a foreigner who has the custom of affixing his/her signature may substitutehis/her specimen signature for such seal impression.
2. The same procedures shall be taken in the case of any change in the matters referred to in the preceding
paragraph.
Article 16.

(Reports of an Address to Which Notices Shall Be Sent to Shareholders, etc. Residing Overseas)

1. Shareholders, beneficial shareholders and registered stock pledgees or their legal representatives who
reside outside Japan shall, either appoint a standing proxy in Japan or designate an address to which notices shallbe sent, and report thereof, in addition to the procedures provided for in the preceding Article.
2. The provisions of the preceding Article shall apply mutatis mutandis to the standing proxy.
Article 17.

(Representative of a Corporation)

1. In case a shareholder, a beneficial shareholder and a registered stock pledgee is a corporation, the name ofone (1) of the representatives of such corporation shall be notified.
2. In the case of any change in the representative provided for in the preceding paragraph, a designatedwritten report therefor shall be submitted, together with such certificate of matters to be registered, etc.
3Article 18.

(Representative of Shareholders Who Jointly Own Shares)

1. Shareholders or beneficial shareholders who jointly own shares shall appoint one (1) representative andreport thereof.
2. The same procedures shall be taken in the case of any change in the representative provided for in thepreceding paragraph.
Article 19.

(Representative of Unincorporated organization)

1. In case a shareholder, a beneficial shareholder or a registered stock pledgee is an unincorporatedorganization, the name of one (1) of the representatives of such organization shall be notified.
2. The same procedures shall be taken in the case of any change in the representative provided for in thepreceding paragraph.
Article 20.

(Change in the Register of Shareholders and the Register of Beneficial Shareholders, or Change
of Indication of Share Certificates)

In case any changes in entry are made in the register of shareholders and the register of beneficial
shareholders, or any change is made of the indication of share certificates for any of the following reasons, adesignated report therefor shall be submitted, together with the share certificates concerned and a certified copyof extract of the family register or a certificate of matters to be registered, etc. ,as the case may be,; provided,
however, that no share certificates are required to be submitted if such share certificates have not been issued orin the case of any change in entry in the register of beneficial shareholders and the register of fractional shares.
(1) Change of family name or given name;(2) Appointment, change or removal of a legal representative such as an agent of a person having
parental authority, guardian, etc.;(3) Change of trade name or name of a juridical person; and(4) Change of corporate organization.
Article 21.

(Special Exception for Notifications of Beneficial Shareholders)

In case a report is submitted by a beneficial shareholder or a legal representative in accordance with theprovisions in this chapter, such report shall be submitted through a participant of JASDEC; provided, however,that if any change of registered seal impression only shall be made, reports through a participant of JASDEC
shall not be required.
Article 22.

(Mutatis Mutandis)

1. The provisions in this Chapter shall apply mutatis mutandis to the trustor and the trustee of trust assets.
2. The provisions of Articles 15 through 19 shall apply mutatis mutandis to the holder of fractional shares,
and the provision of Article 20 shall apply mutatis mutandis to the register of fractional shares.
CHAPTER VIREISSUANCE OF SHARE CERTIFICATES DUE TO REASONS OTHER THAN LOSS
Article 23.

(Reissuance due to Stock Split or Consolidation)

In case issuance of new share certificates shall be requested for the purpose of stock split or consolidation ofshare certificates, a designated written request therefor shall be submitted, together with the share certificatesconcerned.
4Article 24.

(Reissuance due to Defacement or Mutilation)

In case a request for reissuance of share certificates due to defacement or mutilation of any share certificate
shall be made, a designated written request therefor shall be submitted, together with the share certificate
concerned; provided, however, if it is difficult to discern whether such share certificate is genuine or not, theprocedures provided for in Chapter VII ( Registration of Loss of Share Certificates, etc.) shall be taken.
Article 25.

(Reissuance due to Completion of Columns)

In the case of completion of columns regarding acquirers of any share certificate, the Company shall collectsuch share certificate and issue a new share certificate.
CHAPTER VII
REGISTRATION OF LOSS OF SHARE CERTIFICATES, ETC.
Article 26.

(Request for Registration of Loss of Share Certificates)

1. A person who requests for the registration of loss of share certificates (hereinafter referred to as “Person
Requesting Registration of Lost Share Certificates”) shall submit a designated written application therefor,
together with a document certifying acquisition of the share certificates, a document certifying loss of the sharecertificates, and a written identification of the applicant; provided, however, that, if the Person Requesting
Registration of Lost Share Certificates is a registered holder thereof, such person shall submit a document
certifying loss of the share certificates only, in addition to the designated written application.
Article 27.

(Application for Cancellation by the Registrant Regarding Loss of Share Certificates)

In case the registrant regarding loss of share certificates shall apply for a cancellation of the registration
provided for in the preceding Article, a designated written application therefor shall be submitted.
Article 28.

(Application for Cancellation of the Registration of Loss of Share Certificates by the Holders of
Such Share Certificates)

In case a person holding share certificates, which have been registered as lost, shall apply for thecancellation of such registration of loss of share certificates, a designated written application therefor shall be
submitted, together with the share certificates concerned and a written identification of the applicant; provided,
however, that, if an application for cancellation is made by a shareholder or a registered stock pledgee of the lost
share certificates, submission of a written identification of the applicant shall not be required.
Article 29.

(Mutatis Mutandis Application to Provisions Concerning Notifications)

In case the registrant regarding loss of share certificates who is a person other than a shareholder or aregistered stock pledgee shall request for any change in the written or electronic records in the register of lost
share certificates, the provisions of Articles 15 through 20 shall apply mutatis mutandis.
CHAPTER VIII
PURCHASE OF FRACTIONAL SHARESArticle 30.

(Method of Request for Purchase)In the case of a request to purchase fractional shares, a designated written request (hereinafter referred to as
the “Written Request for Purchase”) therefor shall be submitted at the handling office or any of the liaison officesof the transfer agent provided for in Article 2.
5Article 31.

(Method of Determination of Purchase Price)

The purchase price per share of fractional shares requested for purchase shall be the amount obtained bymultiplying the last reported price per share on the market established by the Tokyo Stock Exchange on the dayon which the Written Request for Purchase provided for in the preceding Article is received at the share handlingoffice or at any of the liaison offices of the transfer agent by the ratio of such fractional shares requested forpurchase to one (1) share, provided, however, that if the shares are not traded on the market established by the
Tokyo Stock Exchange on such day, or such day falls on a holiday of the said Stock Exchange, the purchase priceper share of fractional shares shall be the amount obtained by multiplying the price per share at which the sharesare first sold on the market established by the Tokyo Stock Exchange by the ratio of such fractional sharesrequested for purchase to one (1) share.
Article 32.

(Payment of Purchase Price)

1. Unless otherwise provided by the Company, the Company shall pay to the person who has requested forpurchase, the purchase price determined pursuant to the preceding Article after deducting therefrom the handlingfees provided for in the third paragraph of Article 46, no later than the fourth (4th) business day commencing on
the day (in case the purchase price pursuant to the preceding Article has not yet been decided up to such day, theday shall be the decision date of the purchase price pursuant to the same Article) on which the Written Request
for Purchase provided for in Article 30 is received at the share handling office of the transfer agent, at the place
where the request for purchase is received; provided, however, that if the purchase price reflects the ex-dividends
from surplus (including interim dividends, the same shall apply hereinafter) price or ex-rights price, and thefourth (4th) business day described in this Article falls under the fixed date to receive dividends from surplus orrights, the payment shall be made on the following business day.
2. The person who has requested for purchase may request that the payment be made by way of transfer to abank account designated by him/her or by cash payment by postal transfer to the address of such person. If this is
the case, the payment of the purchase price shall be deemed to be completed, concurrently with arrangement for
payment by transfer or by voucher for disbursement through postal transfer.
Article 33.

(Transfer of Purchased Shares)

The title to the fractional shares, for which a Request for Purchase has been made, shall be transferred to theCompany on the day on which the payment procedures provided for in the preceding Article have been
completed.

CHAPTER IXADDITIONAL PURCHASE OF FRACTIONAL SHARESArticle 34.

(Method for Request for Additional Purchase)In case a holder of fractional shares requests that the Company sell to the holder of fractional shares thefraction of a share that would, together with the fractional shares owned by such holder of fractional shares,
constitute one share (hereinafter referred to as the “Request for Additional Purchase”), a designated written
request (hereinafter referred to as the “Written Request for Additional Purchase”) therefor shall be submitted,
together with the advanced payment provided for in the following Article, at the handling office or any of theliaison offices of the transfer agent provided for in Article 2.
Article 35.

(Advanced payment)

1. The advanced payment shall be the amount obtained by multiplying the last reported price per share on
the market established by the Tokyo Stock Exchange on the preceding business day on which the Written
6Request for Additional Purchase provided for in the preceding Article is received at the share handling office orat any of the liaison offices of the transfer agent by the ratio of such fractional shares requested for additionalpurchase to one (1) share, and multiplying the result by 1.3, provided, however, that if the shares are not tradedon the market established by the Tokyo Stock Exchange on such day, the advanced payment shall be the amountobtained by multiplying the last reported price per share at which the shares are sold on the market established bysuch Stock Exchange on the nearest preceding day prior to such day by the ratio of such fractional sharesrequested for additional purchase to one (1) share, and multiplying the result by 1.3. Any fraction less than one
thousand (1,000) yen as a result of such calculation shall be rounded up.
2. If the Request for Additional Purchase provided for in the preceding Article is made but the amount of theadvanced payment is less than the amount determined in accordance with the preceding paragraph, the Company
shall not handle such Request for Additional Purchase.
Article 36.

(Request for Additional Purchase of Number of Shares Exceeding the Remaining Number ofTreasury Stock, etc.)

If an aggregate number of fractional shares for which the Request for Additional Purchase is made on thesame day exceeds the number of shares reserved by the Company as treasury stock and treasury fractional sharesfor sale, none of such Request for Additional Purchase made on such day shall become effective.
Article 37.

(Effective Date of Request for Additional Purchase)

The Request for Additional Purchase shall become effective as of the date on which the Written Request for
Additional Purchase provided for in Article 34 and the advanced payment provided for in Article 35 are received
at the handling office or any of the liaison offices of the transfer agent.
Article 38.

(Suspension Period of Request for Additional Purchase)

1. The Company shall suspend acceptance of the Requests for Additional Purchase during the period fromthe twelfth (12th) business day preceding March 31 through to March 31 and the period from the twelfth(12th) business day preceding September 30 through to September 30 every year.
2. Notwithstanding the preceding paragraph, the Company may, whenever it deems necessary, establish anyother periods during which the Company shall suspend acceptance of the Requests for Additional Purchase.
Article 39.

(Method of Determination of Additional Purchase Price)

1. The additional purchase price per share of fractional shares requested for additional purchase shall be theamount obtained by multiplying the last reported price per share on the market established by the Tokyo Stock
Exchange on the effective date of the Request for Additional Purchase by the ratio of such fractional sharesrequested for additional purchase to one (1) share, provided, however, that if the shares are not traded on themarket established by the Tokyo Stock Exchange on such day, or such day falls on a holiday of the said Stock
Exchange, the purchase price per share of fractional shares shall be the amount obtained by multiplying the priceper share at which the shares are first sold on the market established by the Tokyo Stock Exchange thereafter by
the ratio of such fractional shares requested for additional purchase to one (1) share.
2. In case the amount of the advanced payment provided for in Article 35 is less than the total amount of theadditional purchase price for shares provided for in the preceding paragraph and the handling fees provided for in
the third paragraph of Article 46 (hereinafter referred to as the “Additional Purchase Proceeds”), the Company
shall request the shareholder who made such Request for Additional Purchase to pay such shortfall. In this case,if such shortfall remains unpaid for the period of five (5) business days from the day following the day on which
the Company has made a request for payment thereof, such Request for Additional Purchase shall become
invalid.
7

Article 40.

(Receipt of Additional Purchase Proceeds)

1. The Company shall receive the Additional Purchase Proceeds from the advanced payment on the date on
which is the sixth (6th) business day from the day following the day on which the additional purchase price has
been determined, or on which the shortfall referred to in paragraph 2 of the preceding Article has been paid;
provided, however, that if the additional purchase price reflects the ex-dividends from surplus (including interim
dividends, the same shall apply hereinafter) price or ex-rights price, and such sixth (6th) business day describedin this Article falls under the fixed date to receive dividends from surplus or rights, the payment shall be made on
the following business day.
2. The balance obtained by deducting the Additional Purchase Proceeds provided for in the preceding
paragraph from the advanced payment shall be refunded to the holder of fractional shares who made the relevant
Request for Additional Purchase by way of transfer to a bank account designated by him/her or by cash payment
by postal transfer.
Article 41.

(Transfer of Title to Fractional Shares Purchased Additionally)

The title to the fractional shares regarding which a Request for Additional Purchase has been made shall betransferred to the holder of fractional shares who made such Request for Additional Purchase on the day on
which the Company duly receives the Additional Purchase Proceeds provided for in the preceding Article.
Article 42.

(Delivery of Share Certificates)

The Company shall, without delay, issue share certificates for the shares which become a full share as aresult of the Request for Additional Purchase, and deliver such share certificates to the person who made such
Request for Additional Purchase.
CHAPTER X
PREFERRED STOCK
Article 43.

(Method for Request for Acquisition)

1. In case an acquisition of preferred stock shall be requested, a designated written request therefor shall be
submitted, together with the preferred share certificates concerned, at the handling office or any of the liaison
offices of the shareholder register manager provided for in Article 2; provided, however, that, if no preferredshare certificates have been issued for such shares, submission of preferred share certificates shall not be
required.
2. In case a request for acquisition provided for in the preceding paragraph is made by a beneficial
shareholder, such request shall be submitted through a participant of JASDEC and JASDEC.
3. The request for acquisition may not be withdrawn after submission of such request.
Article 44.

(Effectiveness of Acquisition)

The acquisition shall be effective concurrently with arrival of the request and the certificates of preferredstock concerned provided for in the preceding Article at the handling office or any of the liaison offices of theshareholder register manager provided for in Article 2.
Article 45.

(Request for Issuance of New Shares at Mandatory Acquisition)

1. If a mandatory acquisition of preferred stock as provided for in Article 20 of the Articles of Incorporationof the Company shall be made, a request for issuance of certificates of common stock shall be made, and a8designated written request shall be submitted, together with the preferred share certificates concerned; provided,
however, that if no preferred share certificates have been issued for such shares, submission of preferred sharecertificates shall not be required.
2. The provision of the second paragraph of Article 43 shall apply mutatis mutandis to the case of thepreceding paragraph.

CHAPTER XIHANDLING FEES
Article 46.

(Handling Fees)

Handling fees in connection with shares of the Company shall be as follows (not including consumptiontax):
1. In the case of issuance of share certificates pursuant to Article 14 (Request for Issuance of Share
Certificates Placed in Non-possession Status), Article 23 (Reissuance due to Stock Split or Consolidation) or
Article 24 (Reissuance due to Defacement or Mutilation);
250 yen per one share certificate.
2. In the case of a request for registration of loss of share certificates pursuant to Article 26 (Request for
Registration of Loss of Share Certificates):
10,000 yen per one application for registration of loss of share certificates; 500 yen per one lost sharecertificate.
3. In the case of purchase of fractional shares pursuant to Article 30 (Method of Request for Purchase) andsale of fractional shares pursuant to Article 34 (Method for Request for Additional Purchase):
The fees shall be calculated by dividing proportionally the amount of handling fees per share calculatedby the following formula (In case of any amount less than one yen, such amount shall be disregarded) by therelevant number of fractional shares so purchased or sold (In case of any amount less than one yen, suchamount shall be disregarded);(1) In case the purchase price or additional purchase price per share shall be: Not more than one
million yen (¥1,000,000):
1.15% of the amount involved (If the amount per share obtained by the above formula is lessthan two thousand five hundred yen (¥2,500), the fees shall be two thousand five hundred yen(¥2,500).)(2) In case the purchase price or additional purchase price per share shall be : More than one
million yen (¥1,000,000):
0.9% of the amount involved + ¥2,500

9CHAPTER XIIMETHOD OF REQUEST OR NOTICEWITH RESPECT TO GENERAL MEETINGS OF SHAREHOLDERS
Article 47.

(Method to Exercise Shareholders’ Proposal Rights)

1. In case shareholders, pursuant to laws and ordinances, shall exercise their rights to Director(s), which
includes the right to (a) request to convene a general meeting of shareholders, (b) request to add certain mattersto the agenda for a general meeting of shareholders or (c) request the summary of proposals, which are planned
to be submitted to a general meeting of shareholders, with regard to the agenda for such meeting, to be notified tothe shareholders, such execution of rights shall be made in writing.
2. If the Company, pursuant to the request provided for in the preceding paragraph, shall set forth a
description with regard to reasons for proposal or matters concerning the appointment of Director(s) or Corporate
Auditor(s), etc., in the reference materials for a general meeting of shareholders, and such description exceeds
400 characters, such description may be set forth in an outline thereof.
3. Notification by shareholders to the Company of matters they request to be explained at a general meetingof shareholders, pursuant to applicable laws and regulations, shall be made in written form.

10Exhibit 11
Code of Ethics for Financial Professionals
Article 1.

(Purpose)

The purpose of this Code of Ethics for Financial Professionals is to provide standards and guidelines withwhich all Financial Professionals of the Mizuho Financial Group, Inc. (the Company) should comply.
Article 2.

(Definition)

In this Code of Ethics, Financial Professionals mean all directors and executive officers, as well as all
managers and other employees of the Company who engage in financial reporting, accounting or disclosure.
Article 3.

(Conflicts of Interest)

Financial Professionals shall act honestly and ethically in carrying out their respective responsibilities,
including with respect to the handling of actual or apparent conflicts of interest between personal andprofessional relationships.
Article 4.

(Disclosure)

Financial Professionals shall perform full, fair, accurate, timely, and understandable disclosure in financial
reports and documents that the Company files with, or submits to, the supervisory authorities and in other public
communications made by the Company.
Article 5.

(Compliance)

Financial Professionals shall comply with all applicable laws, regulations and accounting principles in
performing their activities.
Article 6.

(Prohibited Activities)

No Financial Professionals shall take any action to fraudulently influence, coerce, manipulate or mislead
any independent public or certified public accountant in the performance of an audit of the financial statementsof the Company for the purpose of rendering such financial statements misleading.
Article 7.

(Reporting)

Financial Professionals shall promptly report actual or apparent violations of this Code of Ethics according
to the Compliance Manual of the Company and other applicable Company regulations.
Article 8.

(Accountability)

1. Financial Professionals shall be held accountable for their adherence to this Code of Ethics.
2. The failure of Financial Professionals to comply with this Code of Ethics will be subject to disciplinary
action. Violations of this Code of Ethics may also constitute violations of laws or regulations and may result incivil or criminal liabilities of the relevant Financial Professional.
Article 9.

(Amendment)

The amendment and repeal of this Code of Ethics shall require approval of the Board of Directors of theCompany.
1Exhibit 12.1
CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Terunobu Maeda, Chief Executive Officer of Mizuho Financial Group, Inc. (the “company”), certify that:1.

I have reviewed this annual report on Form 20-F of 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(s) 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)) 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) [Reserved];(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(s) and I have disclosed, based on our most recent evaluation ofinternal control over financial reporting, to the company’s auditors and the audit committee of thecompany’s board of 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: August 10, 2007
By: /s/ Terunobu Maeda
Name: Terunobu Maeda
Title: Chief Executive Officer

Exhibit 12.2
CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Satoru Nishibori, Chief Financial Officer of Mizuho Financial Group, Inc. (the “company”), certify that:1.

I have reviewed this annual report on Form 20-F of 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(s) 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)) 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) [Reserved];(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(s) and I have disclosed, based on our most recent evaluation ofinternal control over financial reporting, to the company’s auditors and the audit committee of thecompany’s board of 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: August 10, 2007
By: /s/ Satoru Nishibori
Name: Satoru Nishibori
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, 2007 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.
Terunobu Maeda, the Chief Executive Officer, and Satoru Nishibori, the 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: August 10, 2007
By: /s/ Terunobu Maeda
Name: Terunobu Maeda
Title: Chief Executive Officer
By: /s/ Satoru Nishibori
Name: Satoru Nishibori
Title: Chief Financial Officer