I n terim

ReportCONTENTS

Financial Highlights (Consolidated)
Basic Principles of the Consolidation
The Mizuho Financial Group's New Brand Identity

1

A MESSAGE FROM THE MANAGEMENT

3

MANAGEMENT STRATEGY OF MIZUHO

5Progress of Consolidation
Business Model from April 1, 2002
Building a Robust Business Structure

5
14

FINANCIAL ANALYSIS OF MIZUHO HOLDINGS

17

Mizuho Holdings’ Consolidated Financial Results for the First Half of Fiscal 2001
The Three Banks’ Aggregated Financial Results for the First Half of Fiscal 2001
Disclosure of Asset Quality

17

CONSOLIDATED FINANCIAL STATEMENTS
OF MIZUHO HOLDINGS38MIZUHO HOLDINGS' BOARD OF DIRECTORS

42

OFFICE NETWORK OF MIZUHO42INVESTOR INFORMATION ON MIZUHO HOLDINGS

44

CONTACT INFORMATION

45

2

6

21
28

Financial Highlights (Consolidated)
Mizuho Holdings, Inc.
For the Six Months ended September 30, 2001 and 2000, and for the Fiscal Year ended March 31, 2001
Millions of yen
Sept. 30, 2001

Total Income
Total Expenses
Income (Loss) before Income Taxes and Minority Interests
Net Income (Loss)
Cash Dividends¥

2,791,104
3,193,716(402,612)(264,637)—

Thousands of U.S. dollars
Sept. 30, 2001

Sept. 30, 2000¥

3,512,000
3,189,761
322,238
154,826
43,407$

23,376,083
26,748,044(3,371,961)(2,216,392)—

Note : Cash Dividends includes "Stock Transfer Payment"which was paid instead of Interim Cash Dividends for fiscal 2000.
Millions of yen

Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Shareholders’ Equity

Thousands of U.S. dollars

Sept. 30, 2001

Mar. 31, 2001

Sept. 30, 2001

¥ 163,736,959
25,801,785
90,587,678
85,198,408
5,301,350¥ 163,455,480
28,062,563
92,286,772
80,176,482
6,254,270$ 1,371,331,322
216,095,357
758,690,778
713,554,511
44,399,918

Note : Deposits includes Negotiable Certificates of Deposit ("NCDs").
yen

U.S. dollars

Per Share
Net Income (Loss) (Common Stock)
Cash Dividends per Share :Common Stock
Preferred Stock:
First Series Class I Preferred Stock
Second Series Class II Preferred Stock
Third Series Class III Preferred Stock
Fourth Series Class IV Preferred Stock
Fifth Series Class V 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¥(28,753.60)

Sept. 30, 2001

Sept. 30, 2000

Sept. 30, 2001¥

15,609.31$(240.82)

—

3,500

—

—
—
—
—
—
—
—
—
—
—

11,2504,100
7,000
23,8003,750
21,000
5,500
4,000
8,750
2,690

—
—
—
—
—
—
—
—
—
—

Sept. 30, 2001

Mar. 31, 2001

Sept. 30, 2001

10.53%

11.39%/

Capital Adequacy
Risk-based Capital Ratio (BIS Capital Ratio)

Note :Cash Dividends per Share includes "Stock Transfer Payment" which was paid instead of Interim Cash Dividends for fiscal 2000.

Long Term Ratings
Mizuho Holdings, Inc.
The Dai-Ichi Kangyo Bank, Limited
The Fuji Bank, Limited
The Industrial Bank of Japan, Limited
Mizuho Securities Co., Ltd.
Mizuho Trust & Banking Co., Ltd.
1

Moody's

Standard & Poors

FITCH

—
A3
A3
A3
—
A3

—
BBB+
BBB+
BBB+
—
—

A–
A–
A–
A–
—
A–

Basic Principles of the Consolidation
We will create a new financial services group that will lead the 21st century based on the following five basic principles:
Offer a wide range of the highest-quality financial services to our customers.
Maximize shareholder value and, as the leader of Japan's financial services industry, earn the trust of society at large.
Offer attractive and rewarding job opportunities for employees.
Fully utilize the advantages and strengths of each bank and maximize the benefits of the consolidation through cost
reductions.
Create a new corporate climate and culture.

The Mizuho Financial Group's New Brand Identity
Since the establishment of the Mizuho Financial Group, we have strived to create the group's new brand.

Brand Statement: "Value Communication"
Our brand statement helps express our brand vision not only to ourcustomers, but also within our group.
Value refers to "the value that our customers seek," while
Communication refers to how the Mizuho Financial Group intends to"communicate with customers to attain this desired value.""Value Communication" underlines our commitment to doing ourutmost to understand our customers' aspirations and provide financial
services of the highest quality in order to enhance our customers'
satisfaction and ultimately share their joy. Put simply, we look forward to"Sharing the dreams and happiness of our customers."

Brand Logo
The new brand logo of the Mizuho Financial Group is a simple yet
sophisticated logotype in blue underscored by a striking red arc. The arc
represents the sun rising over the horizon.

Brand Colors
The two colors used in our new identity were created specially for theMizuho Financial Group. Cosmic blue, as used in the logotype,symbolizes reliability, integrity, world scale and quality. Horizon red, used
for the arc, represents the warm relationships between the Mizuho
Financial Group and its customers, as well as humanity and passion.
The new logo therefore represents our employees' commitment andpassion in everything they do.

2

Mizuho Cosmic Blue

Mizuho Horizon Red

A MESSAGE FROM THE MANAGEMENT

We would like to start by thanking our shareholders andcustomers for your continued support. This interim report isdesigned to deepen your understanding of the Mizuho
Financial Group ("MHFG") by explaining about our
performance and policies.
Interim Results for Fiscal 2001
Our results for the first half of fiscal 2001 reflect theextremely harsh economic and market environment. Whilethe effects of economic deceleration in the United States
spread to Europe and Asia, business conditions in Japan
deteriorated further and the deflationary trend intensified.
Since the foundation of MHFG in September of 2000, we
have followed a policy of managing and administering the

From left: Masao Nishimura, Chairman & Co-CEO,
Katsuyuki Sugita, President & Co-CEO,
Yoshiro Yamamoto, Chairman & Co-CEO

entire group centering on our five core subsidiaries: The DaiIchi Kangyo Bank, Limited ("DKB"), The Fuji Bank, Limited("Fuji Bank"), The Industrial Bank of Japan, Limited ("IBJ") ––collectively referred to hereinafter as the “three banks”––,
Mizuho Securities Co., Ltd. ("Mizuho Securities") andMizuho Trust & Banking Co., Ltd. ("Mizuho Trust &Banking"). Through this structure, we have worked actively
to respond to our customers' ever diversifying sophisticatedneeds, while seeking to improve our business performancethrough further management rationalization measures.
Another priority has been to improve the soundness of ourassets as quickly as possible. To this end, we have
implemented stricter self-assessments and worked topromote the final disposal of non-performing loans ("NPLs").
As a result, our interim consolidated total income came to¥2,791.1 billion, total expenses to ¥3,193.7 billion and net
loss to ¥264.6 billion.
Business Reinforcement Program
Toward the reorganization of DKB, Fuji Bank and IBJ, whichis scheduled for April 2002, we compiled the “Business
Reinforcement Program” in order to rapidly strengthen our
financial soundness and quickly realize the benefits of theconsolidation.

3

Specifically, we will work toward a substantial strengthening

April 1, 2002. Through this process, the three banks will beof the group’s financial structure by making additional

realigned into two new banks — Mizuho Bank and Mizuho

reserves to promptly resolve the NPL issue, establishing

Corporate Bank — while Mizuho Securities and Mizuho Trustfinancial strength that will be less vulnerable to stock price& Banking, which are currently subsidiaries of the threefluctuations and raising capital. Furthermore, to reform ourbanks, will become direct subsidiaries of Mizuho Holdings,

earnings base, we will also improve efficiency in risk asset

Inc. These changes will further enhance the specialist

utilization and reform our cost structure through an in-depth

capabilities of group companies and create a new structure

restructuring.

capable of responding more quickly and precisely to

By executing the measures of the Program within a shortcustomer needs by providing comprehensive, high value-

time frame, we aim to achieve a drastic reinforcement of ouradded financial services.

financial strength, reform our earnings base and therefore

MHFG plans to become an innovative financial services

enhance the group's reputation in the markets. We will alsogroup that will lead the new era through cutting-edge

work to reinforce our structural foundations so that Mizuho

comprehensive financial services based on exploiting to theBank, Ltd. ("Mizuho Bank") and Mizuho Corporate Bank, Ltd.

fullest its enormous strength in financial products and("Mizuho Corporate Bank") can make a strong start

services, which are backed by a powerful customer base andfollowing their creation through the corporate split andstate-of-the-art financial technology and information

merger process of the three banks in April 2002.

technology.
We look forward to the continuing support of our

Outlook for Fiscal 2001

shareholders and customers.

In the second half of fiscal 2001 we plan a robust response to
the issues facing the group, such as making significant

January 2002

additional reserves, in accordance with measures set down in
the Program. We expect this to result in a substantial loss forfiscal 2001.
From the perspective of sound management, we have
Masao Nishimura
Chairman & Co-CEO

decided to suspend interim dividends on common andpreferred stocks because of the exceptionally difficult
economic and market situation, and extreme uncertainty
about the future. Furthermore, as for the year-end dividend,
we regret that we currently plan to reduce the annual
dividend for fiscal 2001 to ¥3,500 per common stock in viewof enhancing financial strength. We intend to pay the

Yoshiro Yamamoto
Chairman & Co-CEO

prescribed dividend on preferred stock.
Realization of the Business Model
Subject to approval from the appropriate regulatory
authorities and other procedures, we will reorganize theKatsuyuki Sugita
President & Co-CEOgroup through the corporate split and merger process on

4

MANAGEMENT STRATEGY OF MIZUHOProgress of Consolidation
New Products
and Services

Mizuho Venture Fund established.
Defined contribution
pension businessstarted.
Electronic bill
payments service
through PC or mobile
phone, "Pay-easy",
started.

Mizuho Advanced CMS launched.
"em-town" business started.
Mizuho Global CMS launched.

Consolidation/
Establishment of Domestic
Subsidiaries, Etc.

SOHGO SAIKENKAISHU CO., LTD.
(claims and debt recovery services)

Trust & Custody Services Bank, Ltd.

World Gateway Inc.

Defined Contribution Plan
Services Co., Ltd.

Consolidation ofOverseas Offices

Mizuho Factors,
LimitedMIZUHO REALESTATE SERVICES
CO., LTD.

Consolidation and Reorganization
on April 1, 2002

Wincome Property TrustManagement Co., Ltd.

Mizuho Business Service
Co., Ltd.

Mizuho Bank Nederland N.V.
Mizuho Trust & Banking (Luxembourg) S.A.
Mizuho Bank (Schweiz) AG

Paris Branch
Düsseldorf Branch

Mizuho Holdings, Inc.
Mizuho Bank, Ltd.

Mizuho Trust & Banking Co. (USA)Mizuho Bank (Canada)
Mizuho International plc
Mizuho Capital Markets Corporation

Mizuho Securities Co., Ltd.
PT. Bank Mizuho
Indonesia

Oc
to
be
r

Au
gu
st

Mizuho Trust & Banking Co., Ltd.
Ju
ly

Ju
ne

M
ay

Ap
ril

M
ar
ch

Ja
nu
ar
y

De
ce
m
be
r

No
ve
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be
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Oc
to
be
r

Se
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em
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ay

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Labuan Branch, Kuala Lumpur
Marketing Office, Kuala Lumpur
Representative Office

Progress of MHFG
The Dai-Ichi Kangyo Bank,
Limited, The Fuji Bank, Limited
and The Industrial Bank ofJapan, Limited signed a formal
consolidation agreement.

Mizuho Securities Co., Ltd. established.
Mizuho Trust & Banking Co., Ltd. established.

Mizuho Holdings, Inc.
DKBFuji Bank

Mizuho Securities

Mizuho Holdings' common stocks were listed on
the Tokyo Stock Exchange and the Osaka Securities
Exchange.
Mizuho Holdings,Inc. established.

Mizuho Corporate Bank, Ltd.

Bangkok Branch

Mizuho Holdings' common stocks were listedon the London Stock Exchange.
Mizuho Trust & Banking reorganized its
operational headquarters in line with key
businesses to establish a business promotion
system according to products.
Mizuho Securities started to offer a fullrange of key investment banking services.

IBJ

Mizuho Trust &Banking

5

Subject to approval from theappropriate regulatory authorities andother procedures, the operations of
the three banks will be consolidated
and reorganized into Mizuho Bankand Mizuho Corporate Bank throughthe corporate split and merger
process.
Mizuho Securities and Mizuho Trust& Banking will also become direct
subsidiaries of Mizuho Holdings.

MANAGEMENT STRATEGY OF MIZUHOBusiness Model from April 1, 2002
Business Strategies of Mizuho Bank

Subject to approval from the appropriate regulatory
authorities and other procedures, we will consolidate andreorganize our existing operations into legally separate

MHBK aims to become Japan’s most powerfulsubsidiaries under Mizuho Holdings, Inc. ("MHHD")

commercial bank by providing comprehensive, highaccording to customer segments and business lines on Aprilvalue-added financial services as the customers’ bank of

1, 2002. Through the corporate split and merger process, thechoice and best business partner.

operations of The Dai-Ichi Kangyo Bank, Limited ("DKB"),
The Fuji Bank, Limited ("Fuji Bank") and The Industrial Bank of

MHBK will develop its business promotion strategy based onJapan, Limited ("IBJ") will be consolidated and reorganized

its overwhelming customer base and its vast convenient

into Mizuho Bank, Ltd. ("MHBK") and Mizuho Corporate

nationwide channel network, which consists of branches, an

Bank, Ltd. ("MHCB").

Internet branch and ATMs. MHBK will enhance its efforts to

MHBK’s customer base will mainly consist of individuals,

provide comprehensive financial services and raise customer

domestic companies and local governments. MHCB will

satisfaction by creating attractive products and services

primarily serve major corporations, financial institutions, theiraccording to customer segments and establishing andgroup companies, national governmental public sector

strengthening a business promotion structure that canentities and overseas corporations.

respond to customer needs rapidly and with precision.

Mizuho Securities Co., Ltd. ("Mizuho Securities") andMizuho Trust & Banking Co., Ltd. ("Mizuho Trust &For individual customers, MHBK will provide products andBanking") will also become direct subsidiaries of MHHD.

services that meet their diverse requirements and establish

We have adopted a management structure whereby

a highly convenient channel network. MHBK will also take

operations are consolidated and reorganized into legallyadvantage of the group’s all-round capabilities to provide

separate subsidiaries according to customer segments andhighly specialized private banking services and promotebusiness lines. We believe this allows greater flexibility inrelationship marketing.

dealing with the ever-changing business environment and is
the most desirable business model in light of the scope andCorporate customers will benefit from a smooth and stablescale of our business.

supply of funds. MHBK will provide leading-edge businessWe aim to become a comprehensive financial services

solutions that match the business strategies of eachgroup that offers accurate and rapid responses to customer

customer. The products and services offered will include

requirements by ensuring that group companies enhanceinvestment

their expertise and provide high value-added financial

derivatives, support for IPOs, business information support

services on the one hand and reinforcing cooperation among

and overseas business support.

group companies on the other.

increase its efforts to support the growth of newbanking

products,

businesses and venture companies.

6

loan

syndications,

MHBK also intends toBusiness Strategies ofMizuho Corporate BankMHCB’s goal is to become the premier professionalbank in the domestic and international corporate
finance markets, which will accurately respond to theincreasingly diverse and sophisticated financial needs ofcustomers by taking advantage of leading-edge financial
technology ("FT") and information technology ("IT") toprovide world-class business solutions.
MHCB aims to win the highest trust from its customers in thedomestic and international markets by making the most of its
strong customer base, the Mizuho Financial Group’s(“MHFG”) comprehensive strengths and its network covering
all major cities both in Japan and abroad, and responding
precisely to the global customer needs.
In order to establish a strong business promotion structure
based on an enormous customer base and to achieve
strategic business deployment, MHCB will adopt theBusiness Unit structure according to customer segments
and business lines. It will provide its customers with highvalue-added financial products and services by exploiting
FT and IT.
In order to fully utilize MHFG’s comprehensive strengths,
MHCB will work closely with group companies such as
Mizuho Securities and Mizuho Trust & Banking, while it
will strive to establish a global business structure with its
overseas network to support its customers’ global
activities.
MHCB will also strive to improve its profit and financial
structure and raise its capital efficiency through an increasein non-interest income and reinforcement of its portfolio
management structure.

7

Overview of Mizuho Bank and Mizuho Corporate Bank

Mizuho Bank
664 offices and 6,000 automated service centers in Japan

Mizuho Corporate Bank
18 offices in Japan, 46 overseas offices, 29 overseas subsidiaries

30 million accounts¥34 trillion in personal assets¥12 trillion in loans

Individuals

Customers Domestic Companies
Local Governments

Large Corporations /Financial Institutions

170,000 customers¥14 trillion in deposits¥22 trillion in loans

Customers Overseas Corporations

5,000 customers¥3 trillion in deposits / debentures¥3 trillion in loans(incl. non-recourse loans, commitment facilities)

foreign exchange
derivatives
payment and settlement services(bill / check clearing, payment and others)

e-solution businessBusinesses(incl. subsidiaries of Japanese corporations)4,500 non-Japanese customers$54 billion in loans

National Governmental
Public Sector Entities

300 customers¥2 trillion in deposits / debentures¥2 trillion in loans

Businesses conducted by MHBK and MHCB

Businesses conducted by MHBK and MHCB
deposits, bank debentures, lending

18,400 customers (1,500 listed companies,
620 financial institutions)¥16 trillion in deposits / debentures¥35 trillion in loans

corporate bond trustee services
investment trusts, defined contribution
pension businesstreasurysyndicated loans
othersdeposits, bank debentures, lending(incl. non-recourse loans, commitment facilities)

foreign exchange
derivatives
payment and settlement services(bill/check clearing, payment and others)

e-solution business(firm banking, CMS, debit cards)

Businesses

Businesses conducted by MHBK
consumer loans (housing/educational, etc.) "em-town" Branch (an Internet based
virtual branch)personal credit cards
loyalty program (membership services) private banking
company-sponsored employee banking a designated financial institution of
local governments
services (savings / loans)lottery services
channel marketing-based services(ATM, Internet, multi-media)
T/C, foreign currency exchangebill clearing agent

corporate bond trustee services
investment trusts, defined contribution
pension businesstreasurysyndicated loans
others(firm banking, CMS, debit cards)

Businesses conducted by MHCB
overseas businessdeposits, lending
syndicated loans
project finance
MBOs, LBOs
leasing, trade finance, etc.

cross-border businesscustody business(for non-resident entities)

off-shore loans, etc.
various clearing services
foreign exchange / yen settlement
CLS (simultaneous multi-currency settlement),
RTGS

Mizuho Securities

Mizuho Trust & Banking

Main businesses of Mizuho Securities are bond trading, equities trading, investment banking, debt financing, equity
financing and IPOs.

Main businesses of Mizuho Trust & Banking are pension trust, asset management services, custodial services, stocktransfer agency services and securitization services.
The corporate split and merger process scheduled to take effect April 1, 2002 is subject to approval of the regulatory authorities and otherprocedures in Japan and all related countries.

8Management Structure and Organization ofMizuho Bank and Mizuho Corporate Bank
Under the following management structure and organization, MHBK and MHCB will manage their respective operations inaccordance with MHHD’s policy.
Image of Organizational Structure of Mizuho Bank

Customer Services Division
Executive Secretariat
Osaka Regional Headquarters

General Meeting of Shareholders

Corporate Auditors
Board of Corporate Auditors

Corporate Auditors Office

Strategic Planning Group
Financial Control and Accounting Group
Risk Management Group
Human Resources Group

Executive Management Committee
IT, Systems & Operations Group
Audit and Compliance Group
Business Policy Committees
Credit Divisions

Board of Directors

Planning Divisions for Branch Banking

President & CEO

Consumer and Private Banking GroupInternal Audit &Compliance Committee

Corporate Banking Group
Public Sector Banking Group
ALM and Trading Group
Securities and Investment Banking Group
Trust and Asset Management Groupe-Business Services Group
Trade Services Group9

Image of Organizational Structure of Mizuho Corporate Bank
Executive Secretariat
General Meeting of Shareholders
Strategic Planning Group
Financial Control and Accounting Group
Corporate Auditors
Board of Corporate Auditors

Corporate Auditors Office

Risk Management Group
Human Resources GroupIT, Systems & Operations Group

Executive Management Committee

Audit and Compliance Group
Credit Divisions

Business Policy Committees

Corporate Banking Business Unit
Financial Institutions and Public Sector
Banking Business Unit

President & CEO

Board of Directors

International Banking Business Unit
Internal Audit &Compliance Committee

ALM and Trading Business Unit
Financial Products Business Unit
Financial Services UnitManagement Structure of Mizuho Bank andwho concurrently serve as directors, and other Executive

Mizuho Corporate Bank

Officers who will be non-directors, responsible for specificbusiness areas and entrusted with the execution of duties.

The following functions of the management structure apply
to both banks except as specified.

Executive Management Committee
Board of Directors

The Executive Management Committee will be established to

The Board of Directors of MHBK / MHCB will consist of sevenserve as an advisory body for the President & CEO.

directors, including the President & CEO, and will decide

Executive Management Committee will consist of thematters according to laws, as well as management policies

President & CEO, Deputy Presidents, and the Executive

and other matters of significant importance.

Officers in charge of specific business areas. The CommitteeThewill discuss and deliberate important matters, and provide its
opinion on such matters to the President & CEO.

Executive Officer System
MHBK / MHCB will adopt the Executive Officer system inorder to separate managerial decision-making and execution,

Board of Corporate Auditorsand clarify levels of authority and responsibility.

The Board of Corporate Auditors will comprise six corporate

The President & CEO will manage MHBK / MHCB according

auditors, including three outside auditors.

to the fundamental management policies determined by theBusiness Policy Committees

Board of Directors.
The Executive Officers will comprise the President & CEO,Business Policy Committees will be set up to serve as forums

Deputy Presidents, and Senior Managing Executive Officers,

for the discussion and coordination of company-wide issues

10

of concern to the Executive Officers. The President & CEO

Business Group Headquarters

will vest some of the Committees with decision-making

Each group in the Business Group Headquarters will beauthority.

responsible for establishing a flexible and versatile businesspromotion structure for each group’s respective business area

(Mizuho Bank)and market in charge. It will support business promotion to

The Committees under consideration include the Portfolio

provide leading-edge products and services that match theManagement

needs of each customer.

Committee,

the

ALM

&

MarketRisk

Committee, the IT Strategy Committee, the New Product

The Business Group Headquarters will include the following

Committee, and the Customer Satisfaction Promotion

eight groups: the Consumer and Private Banking Group, theCommittee.

Corporate Banking Group, the Public Sector Banking Group,
the ALM and Trading Group, the Securities and Investment(Mizuho Corporate Bank)

Banking Group, the Trust and Asset Management Group, the

The Committees under consideration include the Portfolio

e-Business Services Group, and the Trade Services Group.

Management

Committee,

the

ALM

&

MarketRisk

Committee, the IT Strategy Committee, and the New Product(Mizuho Corporate Bank)

Committee.

The organizational structure of MHCB will be as follows:

Internal Audit & Compliance Committee

Planning & Administration Headquarters

The Internal Audit & Compliance Committee will be

Each group in the Planning & Administration Headquarters

established as an internal audit function under the President

will plan and make its own allocation of resources and& CEO. The Committee, which will be independent of the

managerial and administrative policies based on thebusiness operations, will utilize its extensive checking andfundamental group strategies established by MHHD.

verification functions to ensure that business operations are

The Planning & Administration Headquarters will include

carried out in an appropriate manner from the viewpoint of

the following six groups: the Strategic Planning Group, thecompliance and audit.

Financial

ControlandAccounting

Group,the

Risk

Management Group, the Human Resources Group, the IT,
Organizational Structure

Systems & Operations Group, and the Audit and ComplianceGroup.

(Mizuho Bank)

Business Unit Headquarters

The organizational structure of MHBK will be as follows:

The Business Unit structure will be adopted to manage MHCB
according to customer segments and business lines. This

Planning & Administration Headquarters

structure will allow the business operations to secure its

Each group in the Planning & Administration Headquartersorganizational mobility and facilitate speedy decision-making.

will plan and make its own allocation of resources andIt will also allow MHCB to develop strong business structures

managerial and administrative policies based on thecapable of responding quickly and appropriately to customer

fundamental group strategies established by MHHD.

needs and pursue a high level of expertise to respond to

The Planning & Administration Headquarters will include

global customer needs.

the following six groups: the Strategic Planning Group, theFinancial

ControlandAccounting

Group,the

The Business Unit Headquarters will include the following

Risk

six units: the Corporate Banking Business Unit, the Financial

Management Group, the Human Resources Group, the IT,

Institutions and Public Sector Banking Business Unit, theSystems & Operations Group, and the Audit and ComplianceInternational Banking Business Unit, the ALM and TradingGroup.

Business Unit, the Financial Products Business Unit, and the
Financial Services Unit, which will be responsible forstrategically developing new businesses.
11

Management Structure and Organization of Mizuho Holdings
In conjunction with the reorganization of the existing operations into MHBK and MHCB, MHHD will establish a new organizationaland management structure.
Image of Organizational Structure of Mizuho Holdings

General Meeting of Shareholders

Corporate Auditors
Board of Corporate Auditors

Corporate Auditors Office

Executive Management Committee
Customer Satisfaction Office
Executive Secretariat
Business Policy Committees

Strategic Planning Group
Financial Control and Accounting Group
Risk Management Group

President & CEO

Board of Directors

Human Resources GroupIT, Systems & Operations GroupInternal Audit &Compliance Committee

Audit and Compliance GroupManagement Structure of Mizuho Holdings
Board of Directors

Executive Officer System

The Board of Directors of MHHD will consist of nine directors,

MHHD will continue to adopt the Executive Officer system inand it will decide matters according to laws, as well asorder to separate managerial decision-making and execution,

management policies and other matters of significant

and clarify levels of authority and responsibility.
The President & CEO will manage the entire groupimportance for the group.
Four directors concurrently serving as Executive Officer,

according to the fundamental management policies

including the President & CEO.

determined by the Board of Directors.

Five directors not concurrently serving as Executive

The Executive Officers will comprise the President & CEO

Officer, including the President & CEO of MHBK, theand Deputy Presidents, who concurrently serve as directors,

President & CEO of MHCB, and three outside directors.

and other Executive Officers who will be non-directors,

MHHD will further strengthen the management andresponsible for specific business areas and entrusted with themonitoring functions of the Board of Directors by having

execution of duties.

directors, including outside directors, not concurrently serving
Executive Management Committee

as Executive Officer.

The Executive Management Committee will be established to

MHHD will continue to have the Nominating Committee as
an advisory body for the Board of Directors to nominate

serve as an advisory body for the President & CEO.

The

candidates for the directors of MHHD and its subsidiaries

Executive Management Committee will consist of theunder the management of MHHD.

President & CEO, Deputy Presidents, the Executive Officers incharge of the six groups shown in the above organizational

12structure, the President & CEO of MHBK, and the President &under the President & CEO.

The Committee, which is

CEO of MHCB. Where necessary, the President & CEOs of

independent of the business operations, will utilize its

Mizuho Securities and Mizuho Trust & Banking will also

extensive checking and verification functions to ensure thatparticipate in the Committee’s meetings.

business operations are carried out in an appropriate mannerfrom the viewpoint of compliance and audit.

Board of Corporate Auditors
The Board of Corporate Auditors will comprise six corporate

Organizational Structure

auditors, including three outside auditors.

MHHD will have the following six groups:

Business Policy Committees

the Strategic Planning Group, the Financial Control andBusiness Policy Committees will be set up to serve as forums

Accounting Group, the Risk Management Group, the Humanfor the discussion and coordination of company-wide issues

Resources Group, the IT, Systems & Operations Group, andof concern to the Executive Officers. The President & CEO

the Audit and Compliance Group.
Each group will be responsible for planning and making thewill vest some of the Committees with decision-making

strategies for the group as a whole, as well as management

authority.

and supervision of the group subsidiaries.

The Committees under consideration include the Planning& Financial Control Committee, the Portfolio Management

Specifically, each group will plan and develop group

Committee, the ALM & Market Risk Committee, the IT

strategies, including strategies for managing the business

Strategy Committee, the Global Strategy Committee, and theportfolio, manage group companies through business

MHFG Synergy Promotion Committee.

performance evaluation, risk management and compliancemonitoring, and plan, promote, and coordinate the groupsynergy strategies.

Internal Audit & Compliance Committee
Meetings of the Internal Audit & Compliance Committee willcontinue to be held to serve as an internal audit function

Candidates for Top Management of MHHD, MHBK and MHCB
The final decision on the appointment of the following candidates is subject to the approval of the Board of Directors
and the shareholders.
Mizuho Holdings, Inc.

Terunobu Maeda, President & CEO

Mizuho Bank, Ltd.

Tadashi Kudo, President & CEO

Mizuho Corporate Bank, Ltd.

Hiroshi Saito, President & CEO(Effective date: April 1, 2002)

Head Office Locations
The building that is currently Fuji Bank’s head office will be the location of the head office of MHBK.
The building that is currently DKB’s head office will be the location of the head office of MHCB.
However, until the next generation banking system is installed (around April 2004), DKB’s current head office andIBJ’s current head office will serve as the head offices of MHBK and MHCB, respectively.
The head offices of MHHD and other group companies such as Mizuho Securities will be located at IBJ’s current head
office (as soon as possible after April 2004).

13

MANAGEMENT STRATEGY OF MIZUHOBuilding a Robust Business Structure
MHFG has compiled the "Business Reinforcement Program" in preparation for the corporate splits and mergers of DKB, Fuji Bankand IBJ in April 2002. The Program's objectives are to achieve both a prompt improvement in the soundness of the group's financesand early realization of the benefits of consolidation.
We aim for concentrated, short-term implementation of these measures to achieve drastic reinforcement of financial strength,
reform our earnings base, and therefore enhance the group's reputation in the markets. We will also work to reinforce ourstructural foundations so that MHBK and MHCB can make a strong start.

Overview of the Business Reinforcement Program
Drastic Reinforcement of Financial Strength

Prompt resolution of the NPL issue by making additional reserves.
¥2 trillion credit cost for fiscal 2001.
Establishment of financial strength that will be less vulnerable to stock price fluctuations.
Wipe out net unrealized losses on other securities by taking advantage of accounting profits on thecorporate splits and mergers.
Clear new restrictions on banks' shareholdings one year ahead of required schedule.
Capital raising.
Raise approximately ¥300 billion in Tier I capital (preferred securities).
Reform of Earnings Base
Improvement of efficiency in use of risk assets.
Strengthen fee and commission businesses.
Reduce risk assets by ¥9 trillion in fiscal 2001.
Reform of cost structure through thorough restructuring.
Accelerate implementation of restructuring plan.
The corporate split and merger process is subject to approval from the appropriate regulatory authorities and other procedures.

14

Drastic Reinforcement of Financial Strength
We will substantially reinforce our financial strength by making additional reserves to promptly resolve the NPL issue, establishing
financial strength that will be less vulnerable to stock price fluctuations and raising capital.
Prompt resolution of the NPL issue through making additional reserves

The early resolution of the NPL problem is a pressing management challenge. It will be achieved through the following measures.
Mainly for Watch Obligors, reserves will be increased and final disposal of
NPLs will be accelerated and expanded, bringing the total amount ofcredit costs for fiscal 2001 to ¥2 trillion. This will minimize negative
impact of unexpected situation on the group’s future performance.

Trends in Credit-Related Costs(Aggregate of the three banks)( ¥ trillions)
2.5 ·
2.0 ·
1.5 ·

We will also establish and strengthen the work-out systems we use for

1.0 ·
0.5 ·

corporate turnaround or restructuring.

0.0 ·3/19993/20003/20013/2002(planned)

Establishment of financial strength that will be less vulnerable tostock price fluctuations

The following steps will be taken to build financial strength that is lessvulnerable to the impact of stock prices against the background of stock
market depression.

Reduction of Stock Portfolios (Other Securities)(Aggregate of the three banks)( ¥ trillions)9·8·

We will wipe out net unrealized losses on other securities by taking
advantage of accounting profits on the corporate splits and mergers inconjunction with the reorganization.

7·

6·

3/19993/20003/20019/2001

We will further accelerate the reduction of stock portfolio by unwindingof cross shareholdings, and clear new restrictions on banks' shareholdings
on a consolidated basis by the end of September 2003, which is one year
ahead of required schedule.
Capital raising

We will strengthen our financial strength through raising capital in order to maintain sufficient BIS capital ratio from the viewpointof keeping with global standards.
We will raise approximately ¥300 billion of Tier 1 capital (preferred securities) by the end of fiscal 2001.
After raising capital, our pro forma BIS capital ratio as of March 31, 2002 will be approximately 10.5%.

Glossary:
Restrictions on banks' shareholdings
Japanese banks’ book value of shareholdings are to be limited to within their shareholders’ equity. This limit is based on the view that bankbusiness performance is vulnerable to stock market fluctuations because all the Japanese banks’ shareholdings have a book value of approximately¥45 trillion in total. The regulation is due to be applied to MHFG from September 30, 2004.

15

Reform of Earnings BaseWe will accelerate improvement of efficiency in use of risk assets and reform our cost structure through thorough restructuring inorder to reform our earnings base.
Improvement of efficiency in use of risk assets

We will accelerate improvement of efficiency in use of risk assets in order toimprove capital efficiency and build a more stable and robust earnings base.

Earnings from Fees and Commissions,
Foreign Exchange and Derivatives(Aggregate of the three banks)(¥billions)
200 ·
150 ·

In addition to our conventional foreign exchange and settlementbusinesses, we will reinforce fee and commission business activities in

100 ·
50 ·

such areas as securities and investment banking, asset management andtrust services.

0·

In this way, we will reform our earnings base and9/19999/20009/2001accelerate improvement of efficiency in use of risk assets.
Outstanding Balances of Residential Housing Loans(Aggregate of the three banks)

We will also work actively to expand high-quality, profitable assets, suchas housing loans and loans to sound small and medium-sizedenterprises. We will also use various methods, including sales of overseas(¥trillions)
8.5 ·

8.0 ·

subsidiaries, revision of inefficient and less profitable assets, andimplementation of asset securitization programs to reduce our risk assets

7.5 ·

7.0 ·

by ¥9 trillion in fiscal 2001.

9/19999/20009/2001

Reform of cost structure through thorough restructuring

We will make our every possible effort to reform our cost structure throughNumber of Employees(Aggregate of the three banks)

thorough restructuring measures.

36,000 ·35,000 ·Directors

34,000 ·At the time of the corporate splits and mergers in April 2002, the total

33,000 ·32,000 ·number of directors for MHHD, MHBK and MHCB will be set at 33.

31,000 ·30,000 ·3/19993/20003/20019/2001

Employees
By March 31, 2006, our workforce will stand at 25,000 employees, a
Number of Domestic and Overseas Offices

reduction of 10,000 from the level as of March 31, 1999.

(Aggregate of the three banks)
Overseas subsidiaries
Overseas branches
Domestic branches

750 ·Office Network
We will implement drastic reduction of our domestic and overseas office

700 ·
650 ·

networks to the extent that our customer and earnings bases would not

600 ·be damaged. We will reduce our domestic network by around 29% and550 ·overseas network by about 53% as compared to the levels as of March500 ·31, 1999.

16

3/19993/20003/20019/2001

FINANCIAL ANALYSIS OF MIZUHO HOLDINGSFor the First Half of Fiscal 2001 ended September 30, 2001

Mizuho Holdings’ Consolidated Financial Results for the First Half of Fiscal 2001
1. Scope of Consolidation and Application of the Equity Method(Companies)

September 30, 2001

March 31, 2001

Change

309
83

290
91

19
(8)

Number of consolidated subsidiaries
Number of affiliates accounted for under the equity method

The number of consolidated subsidiaries of Mizuho Holdings, Inc. (“MHHD”) increased by 19 to 309, and the number of affiliates
accounted for under the equity method decreased by 8 to 83 from the end of fiscal 2000. The major consolidated subsidiaries are
The Dai-Ichi Kangyo Bank, Limited. (“DKB”), The Fuji Bank, Limited. (“Fuji Bank”), The Industrial Bank of Japan, Limited. (“IBJ”)(collectively, the “three banks”), Mizuho Securities Co., Ltd. and Mizuho Trust & Banking Co., Ltd. The major affiliates accounted
for by the equity method were The Chiba Kogyo Bank, Ltd. and Shinko Securities Co., Ltd.

2. Consolidated Profits and Losses(Billions of yen)

September 30, 2001

For the Six Months ended September 30, 2001 and 2000

Consolidated Gross Profits¥

Net Interest Income

1,237.4
746.2

ChangeSeptember 30, 2000

¥

962.7

¥

274.7

662.2

84.0

Net Fiduciary Income

22.1

29.8

(7.6)

Net Fee and Commissions Income

217.7

180.0

37.7

Net Trading Income

100.0

62.3

37.6

Net Other Operating Income

151.3

28.3

123.0

General and Administrative Expenses
Credit-related Costs
Net Gains related to Stocks and Other Securities

637.8

589.2

48.6

1,037.5

347.0

690.5

65.6

415.9

(350.3)Equity in Earnings (Losses) from Investment in Affiliates

(1.0)

9.8

(10.9)

Others(29.1)(130.0)100.9

Income (Loss) before Income Taxes and Minority Interests(402.6)322.2(724.8)

18.8

49.8

(30.9)

Income Tax Expenses–Current
Income Tax Expenses (Benefits)–Deferred(136.1)85.6(221.8)

Minority Interests in Net (Income) Loss

20.6

(31.9)

52.6(264.6)154.8(419.4)Net Income (Loss)Net Income (Loss) per Share of Common Stock (Yen)¥ (28,753.60)¥ 15,609.31 ¥ (44,362.91)

Notes: 1. Consolidated Gross Profits = Net Interest Income + Net Fiduciary Income + Net Fee and Commissions Income + Net Trading Income + Net Other Operating Income.
2. Credit-related Costs = Expenses related to Portfolio Problems + Provision of General Reserve for Possible Losses on Loans.

(1) Consolidated Gross Profits
Consolidated Gross Profits increased by ¥274.7 billion from the corresponding interim period of the previous fiscal year to ¥1,237.4 billion.
Because of a rise in market-related profits,etc., Net Interest Income increased by ¥84.0 billion to ¥746.2 billion.
Net Fiduciary Income decreased by ¥7.6 billion to ¥22.1 billion.
Net Fee and Commissions Income rose by ¥37.7 billion to ¥217.7 billion, mainly reflecting the increase in commissions related todeposits, debentures and lending business.
Because of a rise in profits on Derivatives for Trading Transactions,etc., Net Trading Income increased by ¥37.6 billion to ¥100.0 billion.
Net Other Operating Income increased by ¥123.0 billion to ¥151.3 billion, mainly reflecting the increase in Net Gains related to
Bonds,etc.
(2) General and Administrative Expenses
Because of the increase in the number of consolidated subsidiaries, etc., General and Administrative Expenses increased by ¥48.6
billion from the corresponding interim period of the previous fiscal year to ¥637.8 billion.

17

(3) Credit-related Costs
Against the background of deteriorating economic conditions, Credit-related Costs increased by ¥690.5 billion to ¥1,037.5 billion
as a result of making appropriate write-offs and provisions based on strict self-assessments on a groupwide basis, and front-loading
the disposition of non-performing loans (“NPLs”).
(4) Net Gains Related to Stocks and Other Securities
As a result of the unwinding of cross shareholdings, Gains on Sales of Stock and Other Securities came to ¥288.0 billion. However,
due to Losses on Devaluation of Stocks and Other Securities of ¥207.9 billion, Net Gains related to Stocks and Other Securities
decreased by ¥350.3 billion to ¥65.6 billion.
(5) Net Loss
As a result of the above, Losses before Income Taxes and Minority Interests amounted to ¥402.6 billion after accounting for Generaland Administrative Expenses, Credit-related Costs, and Others.
Net Loss was ¥264.6 billion after reflecting ¥18.8 billion in Income Tax Expenses–Current, ¥136.1 billion in Income Tax
Benefits–Deferred and ¥20.6 billion in Minority Interests in Net Loss to Loss before Income Taxes and Minority Interests.

Consolidated Use and Source of Funds(Billions of yen)

September 30, 2001

(reference) March 31, 2001

Average balance

Yield

Average balance

Yield

Use of Funds
Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Receivables under Resale Agreements
Due from Banks¥ 128,914.1
89,776.3
26,807.3
1,741.0
3,778.9
4,215.2

2.50%
2.44
2.06
1.05
7.59
2.47

¥ 129,208.3
91,543.6
29,571.9
3,773.6—
3,157.1

2.71%
2.70
1.52
9.08
—
4.36

Source of Funds¥ 127,366.1
80,717.1
17,450.4
8,346.6
7,501.1
1,736.9
4,080.6

1.37%
0.74
0.98
0.26
5.08
1.40
2.27

¥ 121,224.4
76,960.1
19,923.5
12,528.8—
1,424.1
4,216.5

1.76%
1.06
1.04
3.82
—
2.48
2.77

For the Six Months ended September 30, 2001 and for the Fiscal Year ended March 31, 2001

Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Commercial Paper
Borrowed Money
Note:Deposits include Negotiable Certificates of Deposit (“NCDs”).

Consolidated Net Fee and Commissions Income(Billions of yen)

For the Six Months ended September 30, 2001 and for the Fiscal Year ended March 31, 2001

September 30, 2001

(reference) March 31, 2001

Fee and Commissions Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Safe Custody and Safety Deposit Box Business
Guarantee Business
Trust-related Business¥ 264.5
64.6
57.3
40.3
15.9
5.4
15.8
9.8

¥ 513.1
116.3
114.8
78.3
30.6
7.8
29.8
35.9

Fee and Commissions Expenses¥ 46.813.6¥ 85.2
27.7

Remittance Business18

3. Consolidated Assets and Liabilities(Billions of yen)

ChangeSeptember 30, 2001

March 31, 2001

¥ 163,736.9¥ 163,455.4

Loans and Bills Discounted

90,587.6

92,286.7(1,699.0)

Securities

25,801.7

28,062.5(2,260.7)

Trading Assets

11,019.1

10,877.4

141.6

Customers’ Liabilities for Acceptances and Guarantees

5,896.7

6,129.6(232.8)Other Assets

15,219.0

14,940.7

278.3

Total Liabilities

Total Assets

¥

281.4

157,669.8

156,449.2

1,220.5

Deposits

85,198.4

80,176.4

5,021.9

Debentures

16,715.7

17,848.2(1,132.5)

Call Money and Bills Sold

7,867.0

13,208.0(5,341.0)

Other Liabilities

16,957.4

21,186.8(4,229.4)

Minority Interests

765.7

751.9

13.8

¥

Shareholders’ Equity

5,301.3¥¥

6,254.2(952.9)Note: Deposits includes NCDs.

(1) Assets
Securities decreased by ¥2,260.7 billion from the end of the previous fiscal year to ¥25,801.7 billion. Effective the first half of fiscal
2001, Other Securities (securities other than Trading Securities, Held to Maturity Bonds and Shares in Subsidiaries and Affiliates) arestated on a mark-to-market basis. Differences between market value and book value (Unrealized Gains / Losses on Other
Securities), taking tax effect into consideration, are not reflected in the Statement of Operations but are recorded in Shareholders’Equity of the Balance Sheet as “Net Unrealized Gains / Losses on Other Securities, net of Taxes.” The Net Unrealized Losses at the endof the first half of fiscal 2001 were ¥1,150.9 billion, and Net Unrealized Losses on Other Securities, net of Taxes amounted to ¥691.7
billion.
Loans and Bills Discounted decreased by ¥1,699.0 billion to ¥90,587.6 billion. Non-Accrual, Past Due & Restructured Loansamounted to ¥6,244.0 billion, or 6.89% of total Loans and Bills Discounted.
Effective the first half of fiscal 2001, securities transactions with repurchase agreements are recorded as cash lending andrecorded in Receivables under Resale Agreements. Due to this change, etc., Total Assets reached ¥163,736.9 billion, an increase of¥281.4 billion from the end of the previous fiscal year.
Consolidated Unrealized Gains and Losses, Etc. (Securities that have readily determinable fair values)
September 30, 2001 (mark-to-market method)(Billions of yen)March 31, 2001

Book Value(=fair value)Net
Unrealized
Gains (Losses)

Gross
Unrealized
Gains

Gross
Unrealized
LossesNet
Unrealized
Gains (Losses)

Gross
Unrealized
Gains

Gross
Unrealized
Losses¥ 23,975.4¥ (1,150.9)¥ 478.1¥ 1,629.1¥ (275.6)¥ 864.4¥ 1,140.1

Stocks6,198.2(1,154.2)

388.2

1,542.5(307.2)765.8

1,073.1

Bonds

12,370.0(10.0)

22.9

32.9

32.3

45.0

12.6

Others5,407.0

13.4

67.0

53.5

(0.7)

53.5

54.3

Other Securities(2) Liabilities and Minority Interests
Deposits increased by ¥ 5,021.9 billion from the end of the previous fiscal year to ¥ 85,198.4 billion. Debentures decreased by¥1,132.5 billion to ¥16,715.7 billion. Total Liabilities increased by ¥1,220.5 billion to ¥157,669.8 billion.
Minority Interests rose by ¥13.8 billion from the end of the previous fiscal year to ¥765.7 billion.

19

(3) Shareholders’ Equity
Shareholders’ Equity decreased by ¥952.9 billion from the end of the previous fiscal year to ¥5,301.3 billion, primarily because of
the recording of Unrealized Gains and Losses on Other Securities , net of Taxes, etc.
The consolidated Risk-based Capital Ratio (BIS Capital Ratio) stood at 10.53%.
Risk-Based Capital Ratio (BIS Capital Ratio)(Billions of yen)

September 30, 2001

March 31, 2001

Change10.53%

11.39%(0.86)%

5.97%(0.64)%BIS Capital Ratio
Tier I Ratio

5.33%

Tier I¥

Tier II

5,391.2¥

5,391.2

Revaluation Reserve for Premises, net of Taxes
Subordinated Debt
Deductions from Capital¥(901.3)

5,914.6(523.3)
(1.6)

399.8

401.5

4,710.4

4,718.5

(8.0)

127.5

202.3

(74.7)

12,004.9¥ (1,349.9)¥ 105,317.9¥ (4,189.0)

Capital¥Risk-adjusted Assets¥ 101,128.8

20

6,292.6

10,655.0¥

FINANCIAL ANALYSIS OF MIZUHO HOLDINGSThe Three Banks’ Aggregated Financial Results for the First Half of Fiscal 2001
1. Aggregated Figures of the Three Banks
The aggregated figures of the three banks are made up of the simple totals of the non-consolidated results of DKB, Fuji Bank and IBJ.
MHHD Consolidated Figures and Aggregated Figures of the Three Banks
For the Six Months ended September 30, 2001

Gross Profits

MHHD(Consolidated Figures) (A)¥1,237.4(Billions of yen)

Aggregated Figures (B)

¥

746.2

Net Interest Income

972.4

¥

659.5

(A) – (B)(B) / (A)

264.9

78.6%

86.7

88.4

Net Fiduciary Income

22.1

—

22.1

—

Net Fee and Commissions Income

217.7

115.0

102.6

52.8

Net Trading Income

100.0

81.1

18.8

81.2

Net Other Operating Income

151.3

116.6

34.7

77.1

(1,037.5)(861.6)(175.9)

83.0

115.3

56.4%

Credit-related Costs
Net Loss

¥

264.6

¥

149.2

¥

September 30, 2001

¥ 163,736.9¥ 148,356.3¥ 15,380.6

Loans and Bills Discounted

90,587.6

84,205.9

6,381.7

93.0

Securities

25,801.7

25,152.1

649.6

97.5

Total Assets

90.6%

2. Profits and Losses
Aggregated Net Business Profits (before General Provision for Possible Losses on Loans) for the three banks increased by ¥202.4
billion from the corresponding interim period of the previous fiscal year to ¥543.9 billion, primarily because of higher non-interest
earnings from commissions and derivatives and an increase in market-related profits centered on Net Gains related to Bonds.
As a result of the unwinding of cross shareholdings, Gains on Sales of Stocks and Other Securities came to ¥271.3 billion.
However, due to Losses on Devaluation of Stocks and Other Securities of ¥173.1 billion, Net Gains related to Stocks and Other
Securities decreased by ¥164.9 billion to ¥87.4 billion.
In the midst of deteriorating economic conditions, Expenses related to Portfolio Problems increased by ¥528.8 billion to ¥775.8
billion in making write-offs and provisions based on strict self-assessments reflecting our ongoing efforts to build a robust financial
structure and bring forward disposals of NPLs.
Net Income thus decreased by ¥283.4 billion from the corresponding interim period of the previous fiscal year, resulting in Net
Loss of ¥149.2 billion.

21

Profits and Losses (Aggregated Figures of the Three Banks)(Billions of yen)

For the Six Months ended September 30, 2001 and 2000

September 30, 2001¥

September 30, 2000

Change707.7¥ 647.6

International Gross Profits

264.7

114.5

150.1

Gross Profits

972.4

762.1

210.2

Net Interest Income

659.5

595.3

64.1

Net Fee and Commissions Income

115.0

105.3

9.6

Net Trading Income

81.1

41.6

39.5

Net Other Operating Income

116.6

19.7

96.8

79.6

(4.9)

84.6

(428.4)(420.6)(7.8)

for Possible Losses on Loans)

543.9

341.5

202.4

Excluding Net Gains related to Bonds

Domestic Gross Profits

Net Gains (Losses) related to Bonds
General and Administrative Expenses (Excluding Non-recurring Expenses)

¥

60.0

Net Business Profits (before General Provision
464.3

346.5

117.8

General Provision for Possible Losses on Loans(85.7)

1.8(87.6)Net Business Profits

458.1

343.4

114.7

Net Non-recurring Losses(720.5)(108.6)(611.8)

87.4

252.4

(164.9)

Expenses related to Portfolio Problems(775.8)(246.9)(528.8)Others(32.1)(114.1)81.9(262.3)234.7(497.1)

3.0

33.3(30.2)Net Gains related to Stocks and Other Securities

Income (Loss) before Income Taxes
Income Tax Expenses—Current(116.1)67.1(183.3)Net Income (Loss)¥ (149.2)¥ 134.1¥ (283.4)

Credit-related Costs¥ (861.6)¥ (245.0)¥ (616.5)

Income Tax Expenses (Benefits)—Deferred

Gross Profits
Gross Profits increased by ¥210.2 billion to ¥972.4 billion, mainly reflecting an increase of Net Other Operating Income and Net
Interest Income,etc.
Breakdown of Gross Profits (Aggregated Figures of the Three Banks)(Billions of yen)

September 30, 2001

September 30, 2000

¥ 659.5
582.1
77.3¥ 595.3
557.5
37.8

Net Fee and Commissions Income
Domestic Operations
International Operations

115.0
78.4
36.6

105.3
72.1
33.2

9.6
6.2
3.3

Net Trading Income
Domestic Operations
International Operations

81.1
24.2
56.9

41.6
7.6
34.0

39.5
16.6
22.9

Net Other Operating Income
Domestic Operations
International Operations

116.6
22.8
93.8

19.7
10.2
9.4

96.8
12.5
84.3

¥ 972.4¥ 762.1¥ 210.2

For the Six Months ended September 30, 2001 and 2000

Net Interest Income
Domestic Operations
International Operations

Gross Profits
22

Change

¥

64.1
24.6
39.5

(1) Net Interest Income
Because of an increase in market-related profits,etc., Net Interest Income increased by ¥64.1 billion from the corresponding interim
period of the previous fiscal year to ¥659.5 billion. Income from international operations rose by ¥39.5 billion to ¥77.3 billion,
while the contribution from domestic operations increased by ¥24.6 billion to ¥582.1 billion.
Breakdown of Net Interest Income (Aggregated Figures of the Three Banks)(Billions of yen)

Average balance
September
30, 2001

Yield

September
30, 2000

Change¥ 117,831.2 ¥ 112,024.3¥ 5,806.9

For the Six Months ended September 30, 2001 and 2000

September
30, 2001

September
30, 2000

ChangeTotal
Use of Funds

2.17%

3.39%

(1.22)%

Loans and Bills Discounted

82,845.6

82,824.0

21.5

2.18

2.39

(0.21)

Securities

26,088.6

22,799.9

3,288.6

2.11

1.95

0.16

¥ 114,981.2 ¥ 107,354.5

Source of Funds¥ 7,626.6

1.08%

2.43%

(1.35)%

94,320.4

91,849.8

2,470.6

0.77

0.97

(0.20)

Interest Margins

/

/

/

1.09

0.96

0.13

Loan and Deposit Rate Margin(including Expenses)

/

/

/

1.41

1.42

(0.01)

95,801.8 ¥

92,965.2¥ 2,836.6

1.57%

2.07%

(0.50)%

Loans and Bills Discounted

70,881.0

71,735.8(854.7)

1.73

1.83

(0.10)

Securities

20,415.0

18,515.0

1,899.9

1.18

1.18

0.00

94,427.5 ¥

88,881.8¥ 5,545.6

0.36%

0.91%

(0.55)%

79,346.5

79,272.8

73.6

0.32

0.42

(0.10)

Interest Margins

/

/

/

1.21

1.16

0.05

Loan and Deposit Rate Margin(including Expenses)

/

/

/

1.41

1.41

(0.00)

24,488.1 ¥20,415.3¥ 4,072.7

4.45%

9.21%

(4.76)%

11,964.5

11,088.2

876.3

4.90

5.97

(1.07)

Deposits and Debentures

Domestic Operations
Use of Funds

Source of Funds¥¥

Deposits and Debentures

International Operations
Use of Funds¥

Loans and Bills Discounted

5,673.5

4,284.8

1,388.6

5.45

5.27

0.18

23,012.3 ¥

19,828.9¥ 3,183.4

4.07%

9.11%

(5.04)%

14,973.9

12,576.9

2,396.9

3.16

4.50

(1.34)

Interest Margins

/

/

/

0.38

0.10

0.28

Loan and Deposit Rate Margin(including Expenses)

/

/

/

1.74

1.47

0.27

Securities
Source of Funds
Deposits and Debentures¥

Note:Deposits and Debentures include NCDs.

(2) Net Fee and Commissions Income
As a result of higher commissions on deposits, debentures and lending businesses, Net Fee and Commissions Income increased by¥9.6 billion from the corresponding interim period of the previous fiscal year to ¥115.0 billion.

23

Breakdown of Net Fee and Commissions Income (Aggregated Figures of the Three Banks)(Billions of yen)

September 30, 2001

September 30, 2000

Change¥ 167.5¥ 151.3¥ 16.2

Deposits, Debentures and Lending Business

49.2

32.9

16.2

Remittance Business

56.8

55.9

0.8

Securities-related Business

14.2

14.6

(0.3)

Agency Business

13.7

13.2

0.4

Safe Custody and Safety Deposit Box Business

4.6

4.5

0.1

Guarantee Business

10.9

9.5

1.3

For the Six Months ended September 30, 2001 and 2000

Fee and Commissions Income¥

Fee and Commissions Expenses

52.5
14.3

Remittance Business

¥

45.9

¥

6.5

14.3

0.0

(3) Net Trading Income
Because of an increase in profits on financial derivatives,etc., Net Trading Income rose by ¥39.5 billion from the corresponding
interim period of the previous fiscal year to ¥81.1 billion.
(4) Net Other Operating Income
Net Other Operating Income increased by ¥96.8 billion to ¥116.6 billion, owing to a rise in Net Gains related to Bonds, etc.

Breakdown of Net Other Operating Income (Aggregated Figures of the Three Banks)
For the Six Months ended September 30, 2001 and 2000

(Billions of yen)

September 30, 2001

September 30, 2000

Change¥ 116.6¥ 19.7¥ 96.8

Profits on Foreign Exchange Transactions

39.5

24.0

15.5

Net Gains related to Bonds

79.6

(4.9)

84.6

22.8

10.2

12.5

24.0

1.6

22.4

93.8

9.4

84.3

Profits on Foreign Exchange Transactions

39.5

24.0

15.5

Net Gains related to Bonds

55.5

(6.6)

62.1

Total

Domestic Operations
Net Gains related to Bonds
International Operations

General and Administrative Expenses
Despite ongoing efforts to rationalize general management and increase efficiency, General and Administrative Expenses increasedby ¥7.8 billion from the corresponding interim period of the previous fiscal year to ¥428.4 billion as a result of higher expenses
relating to the consolidation of the three banks.
Personnel Expenses decreased by ¥3.8 billion to ¥172.4 billion primarily reflecting a reduction in the number of personnel
resulting from the restructuring process.
Non-personnel Expenses increased by ¥11.7 billion to ¥233.7 billion, in part because of the cost increases associated with systems
integration.

24

Breakdown of General and Administrative Expenses (Excluding Non-Recurring Expenses)(Aggregated Figures of the Three Banks)
For the Six Months ended September 30, 2001 and 2000

Personnel Expenses(Billions of yen)

September 30, 2001

September 30, 2000

¥

¥

172.4

176.2

Change

¥

(3.8)

137.6

139.1

(1.5)

Non-personnel Expenses

233.7

222.0

11.7

Miscellaneous Taxes

22.3

22.4

(0.0)

Salaries and Remuneration

¥

Total

428.4

¥

¥

420.6

7.8

Net Business Profits
Net Business Profits (before General Provision for Possible Losses on Loans) increased by ¥202.4 billion from the corresponding
interim period of the previous fiscal year to ¥543.9 billion.
By business segment, profits from the ALM and Trading segment and the Wholesale segment increased by ¥156.3 billion and¥45.6 billion, respectively.
Net Business Profits by Business Segment (before General Provision for Possible Losses on Loans)(Aggregated Figures of the Three Banks)
For the Six Months ended September 30, 2001 and 2000

Retail and Middle Market Business

September 30, 2000¥¥

Wholesale
Securities /Investment Banking / Trust /Asset Management,
e-Business /Global Transaction Services
ALM and Trading
Total(Billions of yen)

September 30, 2001

¥

107.4

105.8

Change

¥

1.6

269.2

223.6

45.6

1.7

23.4

(21.7)

174.8

18.5

156.3

543.9

¥

341.5

¥

202.4

Net Non-Recurring Gains / Losses and Net Income(1) Net Gains Related to Stocks and Other Securities
As a result of the unwinding of cross shareholdings in order to avert the risk of price fluctuation risk and to manage our asset
efficiently, Gains on Sales of Stocks and Other Securities came to ¥271.3 billion. However, due to Losses on Devaluation of Stocks
and Other Securities of ¥173.1 billion, Net Gains related to Stocks and Other Securities decreased by ¥164.9 billion from thecorresponding interim period of the previous fiscal year to ¥87.4 billion.
(2) Expenses Related to Portfolio Problems
Expenses related to Portfolio Problems increased by ¥528.8 billion from the corresponding interim period of the previous fiscal yearto ¥775.8 billion. In light of the decline in the collateral value along with land prices and the deterioration of the financial conditionof certain borrowers under the stagnant economy, the three banks adopted strict measures for write-offs and provisions following
the three banks’ unified standards for self-assessments.
Expenses related to Portfolio Problems mainly consisted of Losses on Write-offs of Claims of ¥372.6 billion and Specific Provision
for Possible Losses on Loans of ¥302.5 billion.

25

Breakdown of Net Non-Recurring Gains / Losses (Aggregated Figures of the Three Banks)
September 30, 2001

For the Six Months ended September 30, 2001 and 2000

Net Gains related to Stocks and Other Securities¥(Billions of yen)

September 30, 2000

¥

87.4

Change252.4¥ (164.9)

Gains on Sales of Stocks and Other Securities

271.3

439.4

(168.0)Losses on Sales of Stocks and Other Securities(12.5)(16.0)

3.5

Losses on Devaluation of Stocks and Other Securities(173.1)(75.3)(97.7)

Provision of Reserves for Possible Losses on Securities

0.0(92.7)

92.7

Gains /Losses on Derivatives other than for Trading

1.7

(2.7)

4.5

Expenses related to Portfolio Problems

775.8

246.9

528.8

Write-offs of Claims

372.6

114.2

258.3

Net Specific Provision for Possible Losses on Loans

302.5

74.6

227.8

Losses on Sales of Loans to CCPC

18.4

14.5

3.8

Provision of Reserve for Possible Losses on Loans Sold

12.6

24.1

11.4

—

6.8

6.8

53.2

14.5

38.7

Reversal of Reserve for Possible Losses on Loans to Restructuring Countries

1.1

3.5

2.4

Other Losses on Sales of Loans

17.4

1.6

15.7

(22.9)(62.3)

39.4(56.8)¥ (654.4)

Losses on Support of Specific Borrowers
Provision for Possible Losses on Support of Specific Borrowers

OthersNet Non-recurring Losses¥¥(711.2)

Note:CCPC:Cooperative Credit Purchasing Company,Ltd.

(3) Others
Others includes a loss of ¥18.1 billion arising from the adoption of the Accounting Standard for Employee Retirement Benefits,etc.
(4) Income Tax Expense, Etc.
Income Tax Expenses–Current amounted to ¥3.0 billion, and Income Tax Benefits–Deferred amounted to ¥116.1 billion.
(5) Net LossNet Income thus decreased by ¥283.4 billion from the corresponding interim period of the previous fiscal year, resulting in Net
Loss of ¥149.2 billion.

3. Assets and Liabilities
Assets and Liabilities (Aggregated Figures of the Three Banks)(Billions of yen)

September 30, 2001

Total Assets
Loans and Bills Discounted
Securities
Trading Assets
Customers’ Liabilities for Acceptances and Guarantees
Other Assets¥

Total Liabilities
Deposits
Debentures
Acceptances and Guarantees
Other Liabilities
Shareholders’ Equity
Net Unrealized Losses on Other Securities, net of Taxes
26

148,356.3
84,205.9
25,152.1
7,583.2
7,562.6
12,670.0

March 31, 2001¥

148,971.4
85,697.7
27,310.7
8,314.7
7,941.4
11,239.9

Change¥(615.1)(1,491.7)(2,158.6)(731.5)(378.7)1,430.1

142,652.4
80,825.6
17,152.7
7,562.6
14,064.4

142,356.8
75,923.6
18,395.8
7,941.4
16,420.2

295.5
4,901.9(1,243.0)(378.7)(2,355.7)

5,703.8(664.6)

6,614.5—(910.6)(664.6)

(1) Assets
Total Assets decreased by ¥615.1 billion from the end of the previous fiscal year to ¥148,356.3 billion.
Securities decreased by ¥2,158.6 billion to ¥25,152.1 billion. This resulted primarily from adopting the mark-to-market method
for Other Securities effective the current interim period, and from a reduction in the stock portfolios.
While housing loans increased, overall Loans and Bills Discounted decreased by ¥1,491.7 billion to ¥84,205.9 billion as efforts todispose of NPLs continued. Non-Accrual, Past Due and Restructured Loans amounted to ¥5,475.7 billion, or 6.50% of the total
Loans and Bills Discounted.
(2) Liabilities
Total Liabilities increased by ¥295.5 billion from the end of the previous fiscal year to ¥142,652.4 billion.
Because of a rise in floating deposits, Deposits increased by ¥4,901.9 billion to ¥80,825.6 billion.
Debentures decreased by ¥1,243.0 billion to ¥17,152.7 billion. The balance consisted of ¥12,211.1 billion in interest-bearing
debentures and ¥4,941.6 billion in discounted debentures.
(3) Shareholders’ Equity
Shareholders’ Equity decreased by ¥910.6 billion from the end of the previous fiscal year to ¥5,703.8 billion, primarily because of
Net Unrealized Losses on Other Securities, net of Taxes and Net Loss.

27

FINANCIAL ANALYSIS OF MIZUHO HOLDINGS

Disclosure of Asset Quality
The aggregated figures of the three banks are made up of the simple totals of the non-consolidated results of DKB, Fuji Bank and IBJ.

Disposal of Problem Loans
In the first half of fiscal 2001, the three banks disposed of problem loans and Expenses related to Portfolio Problems amounted to¥775.8 billion. This amount reflects the increased stringency and refinement of self-assessments, including the evaluation of the
debtors’ business situation in light of the harsh economic environment, and the tightening of criteria for the rescheduled repaymentof principal and other loan restructuring mechanisms. It also reflects an increase in reserves, especially in relation to specific sectors,
and in the final loan disposition of problem loans.
Disposal of Problem Loans (Aggregated Figures of the Three Banks)
For the Six Months ended September 30, 2001 and 2000,
and for the Fiscal Year ended March 31, 2001

Expenses related to Portfolio Problems
Write-offs of Claims
Net Specific Provision for Possible Losses on Loans
Losses on Sales of Loans to CCPC
Provision for Possible Losses on Loans Sold
Losses on Support of Specific Borrowers
Provision for Possible Losses on Support of Specific Borrowers
Reversal of Reserve for Possible Losses on Loans to Restructuring Countries
Other Losses on Sales of Loans(Billions of yen)

September 30, 2001

March 31, 2001

September 30, 2000

¥ 775.8
372.6
302.5
18.4
12.6
—
53.2
1.1
17.4

¥ 695.5
266.7
241.9
34.0
52.0
23.2
59.7
2.5
20.4

¥ 246.9
114.2
74.6
14.5
24.1
6.8
14.5
3.5
1.6

Overview of Disclosure of Problem Loans (Aggregated Figures of the Three Banks)
1. Self-Assessment
Categorization
ObligorCategory I
Category II(Non-Categorized)

Category III

Category IV(Non-Collateralized)

944.2
Bankrupt and Substantially
Bankrupt Obligors
944.2

Watch Obligors

Intensive Control
Obligors
2,116.8

Claims for Special
Attention
2,517.0

Reserve
Ratio
100%

Covered by Reserves,
Good Quality Collateralor Guarantees

DirectWrite-offs

2. Claims Disclosed
under the FRL

Claims against Bankrupt
and Substantially Bankrupt
Obligors 944.2(Billions of yen)

3. Non-Accrual, Past
Due & Restructured
Loans

Loans to Bankrupt Obligors
553.2

Coverage Ratio 100%

1,706.5

410.2

Covered by Reserves,
Good Quality Collateralor Guarantees

Reserve
Ratio
64.8%

Claims with Collection Risk
2,116.8

Non-Accrual
Delinquent Loans
2,405.5

Coverage Ratio 80.6%
102.3 (Note 2)

Claims for Special Attention(Note 1) 2,517.0

Reserve Ratio for
Uncovered Portion
25.9%

Coverage Ratio 49.8%

Loans Past Due for 3 Months
or More 149.7
Restructured Loans
2,367.2(Special Attention Obligors)
Other Watch Obligors
Normal Obligors}

Aggregate Coverage
Ratio 70.0%

Provided based on
estimated credit losses

Total
97,215.3

Total
5,578.0

Notes: 1. Claims for Special Attention includes loans only and is equal to the total amount of Loans Past Due for 3 Months or More and Restructured Loans.
The figure under Special Attention Obligors represents the total amount of claims against the obligors of Claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructuring Loans and the total of Claims Disclosed under the FRL represents claims includedin Claims Disclosed under the FRL other than loans.

28

Total
5,475.7

Self-Assessment, Write-Offs and Provisions“Self-assessments” are carried out by banks on their own responsibility to enable them to prepare financial statements that reflect
the actual quality of their assets by ascertaining the status of these assets in preparation for making the appropriate write-offs andprovisions based on generally accepted accounting principles.
Specifically, the borrowers are categorized into five obligor classifications according to creditworthiness, then assets are classified
into four categories according to asset recovery risk and risk of impairment (for details, please refer to the Definitions of Obligor
Classifications and Definitions of Categories described on page 30).
As a rule, write-offs and provisions are made according to obligor classifications and asset categories on the basis of selfassessment results. The method of write-offs and provisions at the end of the first half of fiscal 2001 is described below.
Normal Obligors
Appropriate the expected amount of the losses over a year computed based on the expected loss ratio for General Reserve
for Possible Losses on Loans.
Watch Obligors
Appropriate the expected amount of the losses over three years computed based on the expected loss ratio for General
Reserve for Possible Losses on Loans. As for any claims against obligors having Loans Past Due for 3 Months or More and /or Restructured Loans, appropriate the indispensable amount among the balance after deduction of the anticipated amountfrom the sale of collateral pledged against the claims and / or the anticipated amount recoverable from the guarantors of
the claims for General Reserve for Possible Losses on Loans.
Intensive Control Obligors
Appropriate either amount of the following (1) or (2) for Specific Reserve for Possible Losses on Loans among the balance
after deduction of the anticipated amount from the sale of collateral pledged against the claims and / or the anticipatedamount recoverable from the guarantors of the claims.
(1) An amount based on a comprehensive evaluation of the obligor's ability to pay.
(2) An amount determined by multiplying the aforementioned balance by the expected loss ratio for the next three years.
Substantially Bankrupt Obligors
Appropriate the following amount for Specific Reserve for Possible Losses on Loans or write-offs:
the entire balance after deduction of the anticipated amount from the sale of collateral pledged against the claims and /or the anticipated amount recoverable from the guarantors of the claims.
Bankrupt Obligors
Appropriate the following amount for Specific Reserve for Possible Losses on Loans or write-offs:
the entire balance after deduction of the anticipated amount from the sale of collateral pledged against the claims and /or the anticipated amount recoverable from the guarantors of the claims.
The results of write-offs and provisions of the three banks at the end of the first half of fiscal 2001 are described on page 28.

29Definition of Obligor Classifications
The first step in making self-assessments is to categorize borrowers into the following five obligor classifications according to theirfinancial and management positions.

Normal Obligors
Obligors whose business conditions are favorable and who are deemed not to have any particular problems in terms of
their financial position.
Watch Obligors
Obligors who require close watching going forward because there are problems with their borrowings, such as reducedor suspended interest payments, problems with fulfillment such as de facto postponements of principal or interest
payments, or problems with their financial positions as a result of their poor or unstable business conditions.
Intensive Control Obligors
Obligors who are not yet bankrupt but are in management difficulties and are deemed to be very likely to go bankrupt in
the future because they are finding it difficult to make progress in implementing their management improvement plans(including obligors who are receiving ongoing support from financial institutions).
Substantially Bankrupt Obligors
Obligors who have not yet gone legally or formally bankrupt but who are substantially bankrupt because they are inserious management difficulties and are not deemed to be capable of restructuring.
Bankrupt Obligors
Obligors who have already gone bankrupt, from both legal and /or formal perspectives.

Definition of Asset Categories
Assets are evaluated according to the likelihood that they will be collectible, based on the collateral and guarantees for eachobligor classification, and graded into the following four categories in ascending order according to the asset recovery risk.
Category I (Non-Categorized)

All credit to Normal Obligors, and credit to borrowers in other classifications which is covered by good quality collateraland guarantees, etc., such as deposit collateral.
Category II

Credit to Watch Obligors other than credit included in Category I, together with credit to Intensive Control Obligors,
Bankrupt and Substantially Bankrupt Obligors which is covered by general collateral such as real estate and guarantees.
Category III

Credit to Intensive Control Obligors other than those in Category I and Category II, the difference between the assessedvalue and market value of collateral on credit to Bankrupt and Substantially Bankrupt Obligors (i.e. the portion of loans forwhich final collection problems or losses are anticipated), and the portion of credit equivalent to the amount of debt
forgiveness or other form of support scheduled to be provided to Special Attention Obligors who have drawn up
management improvement plans on the assumption that support will be forthcoming from financial institutions, etc. in theform of debt forgiveness, etc. (amounts to be included in the accounts in the next or subsequent fiscal years).
Category IV (Non-Collateralized)

Credit to Bankrupt and Substantially Bankrupt Obligors, other than those in Category I, Category II and Category III (credit
that is judged to be irrecoverable or without value).

30

Non-Accrual, Past Due & Restructured Loans
Non-Accrual, Past Due & Restructured Loans are disclosed under the provisions of the Banking Law of Japan and refer collectively toLoans to Bankrupt Obligors, Non-Accrual Delinquent Loans, Loans Past Due for 3 Months or More, and Restructured Loans.
They are based on the obligor classifications used for self-assessments: loans to Bankrupt Obligors are disclosed as Loans toBankrupt Obligors, loans to Substantially Bankrupt Obligors and Intensive Control Obligors are disclosed as Non-Accrual Delinquent
Loans, and loans to Watch Obligors which meet certain conditions are disclosed as Loans Past Due for 3 Months or More or
Restructured Loans.
On a consolidated basis, Non-Accrual, Past Due and Restructured Loans amounted to ¥6,244.0 billion at the end of the first halfof fiscal 2001, an increase of ¥1,687.7 billion from the end of the previous fiscal year. On the basis of aggregated figures of thethree banks, they increased by ¥1,381.6 billion to ¥5,475.7 billion.

Claims Disclosed under the Financial Reconstruction Law
Based on the provisions of the Financial Reconstruction Law (“the FRL”), Claims Disclosed under the FRL are classified as Claims
against Bankrupt and Substantially Bankrupt Obligors, Claims with Collection Risk and Claims for Special Attention.
They are based on the obligor classifications used for self-assessments: claims on Bankrupt and Substantially Bankrupt Obligors
are disclosed as Claims against Bankrupt and Substantially Bankrupt Obligors, claims on Intensive Control Obligors are presented as
Claims with Collection Risk, and among those claims on Watch Obligors, amounts equivalent to Loans Past Due for 3 Months orMore and Restructured Loans under Non-accrual, Past Due and Restructured Loans are disclosed as Claims for Special Attention.
On the basis of the aggregated figures of the three banks, the balance of Claims Disclosed under the FRL at the end of the firsthalf of fiscal 2001 increased by ¥1,382.4 billion from the end of the previous fiscal year to ¥5,578.0 billion. Of this total, Claims
against Bankrupt and Substantially Bankrupt Obligors stood at ¥944.2 billion, Claims with Collection Risk at ¥2,116.8 billion and
Claims for Special Attention, at ¥2,517.0 billion.
The difference of ¥102.3 billion between the total Non-Accrual, Past Due and Restructured Loans and the total Claims Disclosed
under the FRL represents claims other than loans included in Claims Disclosed under the FRL.
Coverage ratios against the above claims in the form of reserves, collateral and guarantees at the end of the first half of fiscal
2001 stood at 100% for Claims against Bankrupt and Substantially Bankrupt Obligors, 80.6% for Claims with Collection Risk,
49.8% for Claims for Special Attention, and 70.0% overall claim coverage.

31

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)
Non-Accrual, Past Due & Restructured Loans (After Direct Charge-offs of Category IV Loans)
September 30, 2001

Loans to Bankrupt Obligors¥

Non-Accrual Delinquent Loans

586.5
2,911.8

Loans Past Due for 3 Months or More
Restructured Loans
Total(Billions of yen)March 31, 2001¥

September 30, 2000

470.0

¥

2,169.6

586.8
2,171.9

155.5

124.8

188.1

2,589.9

1,791.7

1,591.6¥ 6,244.0¥ 4,556.2¥ 4,538.6(Billions of yen)

Note:

September 30, 2001

March 31, 2001

September 30, 2000

¥ 2,652.2¥ 2,735.6¥ 2,999.5

September 30, 2001

March 31, 2001

September 30, 2000

Loans to Bankrupt Obligors

0.65%

0.51%

0.65%

Non-Accrual Delinquent Loans

3.21

2.35

2.39

Loans Past Due for 3 Months or More

0.17

0.14

0.21

Restructured Loans

2.86

1.94

1.75

Non-Accrual, Past Due & Restructured Loans / Loans and Bills Discounted

6.89%

4.94%

4.99%

Amount of Direct Charge-offs
Ratio to Total Loans (After Direct Charge-offs of Category IV Loans)

Status of Loan Loss Reserves(Billions of yen)

September 30, 2001

March 31, 2001

September 30, 2000

¥ 1,909.1¥ 1,627.6¥ 1,610.6

General Reserve for Possible Losses on Loans

877.2

780.7

753.7

Specific Reserve for Possible Losses on Loans

1,004.6

817.9

830.4

Reserve for Possible Losses on Loans to Restructuring Countries

27.2

28.9

26.4

Reserve for Possible Losses on Support of Specific Borrowers

195.5

159.6

221.9

Reserve for Possible Losses on Loans Sold

121.9

199.0

Reserve for Possible Losses on Loans(After Direct Charge-offs of Category IV Loans)

252.0(Billions of yen)

Note:

September 30, 2001

March 31, 2001

September 30, 2000

¥ 2,749.0¥ 2,838.0¥ 3,096.7

September 30, 2001

March 31, 2001

September 30, 2000

Before Direct Charge-offs of Category IV Loans

54.56%

63.43%

65.39%

After Direct Charge-offs of Category IV Loans

33.71

39.23

40.38

Amount of Direct Charge-offs (Specific Reserve for Possible Losses on Loans)
Reserve Ratios for Non-Accrual, Past Due & Restructured Loans

Note: Reserve ratio = (Reserve for Possible Losses on Loans + Reserve for Possible Losses on Support of Specific Borrowers) / Total Non-Accrual, Past Due & Restructured Loans.

32

Status of Non-Accrual, Past Due & Restructured Loans (Aggregated Figures of the Three Banks)
Non-Accrual, Past Due & Restructured Loans (After Direct Charge-offs of Category IV Loans)
September 30, 2001

Loans to Bankrupt Obligors¥

Non-Accrual Delinquent Loans

553.2(Billions of yen)March 31, 2001¥

2,405.5

Loans Past Due for 3 Months or More

September 30, 2000

427.6

¥

1,889.7

519.7
1,888.7

149.7

137.2

179.0

2,367.2

1,639.4

1,491.8¥ 5,475.7¥ 4,094.1¥ 4,079.4

September 30, 2001

March 31, 2001

September 30, 2000

1,998.3¥ 2,125.3¥ 2,257.7

September 30, 2001

March 31, 2001

September 30, 2000

Loans to Bankrupt Obligors

0.66%

0.50%

0.61%

Non-Accrual Delinquent Loans

2.86

2.21

2.23

Loans Past Due for 3 Months or More

0.18

0.16

0.21

Restructured Loans

2.81

1.91

1.76

Non-Accrual, Past Due & Restructured Loans / Loans and Bills Discounted

6.50%

4.78%

4.82%

Restructured Loans
Total
Note:

(Billions of yen)Amount of Direct Charge-offs (Specific Reserve for Possible Losses on Loans)¥

Ratio to Total Loans (After Direct Charge-offs of Category IV Loans)

Status of Loan Loss Reserves(Billions of yen)

September 30, 2001

March 31, 2001

September 30, 2000

Reserve for Possible Losses on Loans(After Direct Charge-offs of Category IV Loans)¥ 1,559.1¥ 1,339.7¥ 1,323.8

General Reserve for Possible Losses on Loans

650.3

553.8

545.2

Specific Reserve for Possible Losses on Loans

884.2

760.0

754.5

Reserve for Possible Losses on Loans to Restructuring Countries

24.5

25.8

23.9

Reserve for Possible Losses on Support of Specific Borrowers

219.1

176.7

235.2

Reserve for Possible Losses on Loans Sold

118.2

195.3

244.6

Loans to CCPC

192.6

311.8

420.0

Notes:1.

(Billions of yen)

September 30, 2001

Amount of Direct Charge-offs (Specific Reserve for Possible Losses on Loans)¥

2,081.3

March 31, 2001¥

September 30, 2000

2,202.9¥

2,322.0

2. CCPC:Cooperative Credit Purchasing Company,Ltd.

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans
September 30, 2001

March 31, 2001

September 30, 2000

Before Direct Charge-offs of Category IV Loans

51.64%

59.80%

61.24%

After Direct Charge-offs of Category IV Loans

32.48

37.04

38.22

Note: Reserve ratio= (Reserve for Possible Losses on Loans + Reserve for Possible Losses on Support of Specific Borrowers) / Total Non-Accrual, Past Due & Restructured Loans.

33

Status of Claims Disclosed under the FRL (Aggregated Figures of the Three Banks)
Claims Disclosed under the FRL (After Direct Charge-offs of Category IV Loans)(Billions of yen)

September 30, 2001

Claims against Bankrupt and Substantially Bankrupt Obligors

¥

944.2

March 31, 2001

¥

805.9

September 30, 2000¥

1,040.0

Claims with Collection Risk

2,116.8

1,613.0

1,425.5

Claims for Special Attention

2,517.0

1,776.7

1,670.8

Subtotal

5,578.0

4,195.6

4,136.5

Normal Claims

91,637.2

93,709.1

90,727.1¥ 97,215.3¥ 97,904.8¥ 94,863.6

Total(Billions of yen)

Note:

September 30, 2001

Amount of Direct Charge-offs (Specific Reserve for Possible Losses on Loans)¥

2,081.3

March 31, 2001¥

2,202.9

Status of Coverage on Claims Disclosed under the FRL

September 30, 2000¥

2,322.0(Billions of yen)

Coverage
Reserve for Possible Losses on Loans
Reserve for Possible Losses on Support of Specific Borrowers
Collateral and Guarantees
Coverage Ratio (after Direct Charge-offs of Category IV Loans)

September 30, 2001

March 31, 2001

September 30, 2000

¥ 3,903.1¥ 3,077.1¥ 3,101.1

1,097.9

879.5

834.7

219.1

176.4

235.2

2,586.0

2,021.1

2,031.1

70.0%

73.3%

75.0%

Claims against Bankrupt and Substantially Bankrupt Obligors

100.0

100.0

100.0

Claims with Collection Risk

80.6

85.4

83.5

Claims for Special Attention

49.8

50.3

52.3

78.1

82.5

84.0

Claims against Bankrupt and Substantially Bankrupt Obligors

100.0%

100.0%

100.0%

Claims with Collection Risk

64.8

72.7

68.8

Claims for Special Attention

25.9

27.9

32.2

Coverage Ratio (before Direct Charge-offs of Category IV Loans)
Reserve Ratio against Non-collateralized Claims

Reserve Ratio against Other Claims
Claims against Watch Obligors excluding Claims for Special Attention

3.69%

3.94%

3.95%

Normal Claims

0.08

0.10

0.12

34

Status of Loans by Industry (Aggregated Figures of the Three Banks)
Outstanding Loans by Industry(Billions of yen)

September 30, 2001
Outstanding Composition
balance

Domestic Offices(excluding Loans booked in Offshore Markets)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Transportation & Communication
Wholesale, Retail & Restaurant
Finance & Insurance
Real Estate
Services
Local Governments
OthersOverseas Offices and Loans booked in Offshore Markets
Governments
Financial Institutions
OthersTotal¥ 74,665.1
11,458.4
98.2
3.5
60.6
85.2
2,757.6
1,557.9
4,143.3
10,805.0
9,156.5
7,989.2
11,751.2
230.0
14,567.8
9,540.8408.3
472.5
8,659.9¥ 84,205.9

March 31, 2001
OutstandingbalanceComposition

88.67%
13.61
0.12
0.00
0.07
0.10
3.28
1.85
4.92
12.83
10.87
9.49
13.96
0.27
17.30

¥ 75,203.8
11,491.7
106.7
3.9
59.9
82.8
2,912.4
1,729.9
4,461.4
11,057.5
9,469.3
8,122.3
11,752.9
257.0
13,695.5

87.75%
13.41
0.12
0.00
0.07
0.10
3.40
2.02
5.21
12.90
11.05
9.48
13.71
0.30
15.98

11.33
0.49
0.56
10.28

10,493.8
436.9
549.9
9,506.8

12.25
0.51
0.64
11.10

100.00%¥ 85,697.7

100.00%

September 30, 2000
Outstanding Composition
balance¥ 75,271.1
11,580.2
109.4
3.9
51.6
92.1
2,857.7
1,848.6
4,521.2
10,860.1
9,151.0
8,131.9
11,902.7
243.3
13,916.7
9,284.3
335.0
497.0
8,452.3

Domestic Offices(excluding Loans booked in Offshore Markets)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Transportation & Communication
Wholesale, Retail & Restaurant
Finance & Insurance
Real Estate
Services
Local Governments
OthersOverseas Offices and Loans booked in Offshore Markets
Governments
Financial Institutions
OthersTotal

March 31, 2001

10.98
0.40
0.59
9.99

¥ 84,555.5 100.00%

Non-Accrual, Past Due & Restructured Loans and Claims Disclosed under the FRL by Industry
September 30, 2001

89.02%
13.69
0.13
0.00
0.06
0.11
3.38
2.19
5.35
12.84
10.82
9.62
14.08
0.29
16.46

(Billions of yen)

September 30, 2000

Non-Accrual
Past Due &Restructured
Loans

ClaimsDisclosed
under the FRL

Non-Accrual
Past Due &Restructured
Loans

ClaimsDisclosed
under the FRL

Non-Accrual
Past Due &Restructured
Loans¥ 5,119.0
314.4
21.7
0.1
0.1
2.3
581.5
9.4
76.3
888.0
480.3
1,407.1
1,006.8—
330.4¥ 5,170.0
319.4
21.7
0.1
0.1
2.4
582.4
10.4
76.7
910.2
481.1
1,409.3
1,023.7—
332.0¥ 3,745.4
206.8
21.3
0.1
0.4
1.8
492.6
2.1
47.5
556.6
303.4
1,031.8
781.2
—
299.1

¥ 3,794.4
208.3
21.3
0.1
0.4
1.9
493.1
2.1
47.6
569.5
315.9
1,033.7
797.6
—
302.4

¥ 3,836.1 ¥ 3,881.5
173.7
175.4
20.8
20.9
0.1
0.1
0.1
0.1
11.2
4.1
496.6
495.9
5.0
5.0
53.0
52.9
576.2
563.5
434.5
434.3
953.5
951.4
858.9
841.3
—
—
292.3
295.6

356.6
10.3
4.9
341.4

407.9
10.3
8.9
388.7

348.6
17.4
9.0
322.2

401.1
21.5
9.0
370.6

¥ 5,475.7¥ 5,578.0¥ 4,094.1¥ 4,195.6

35

243.2
13.4
10.5
219.2

ClaimsDisclosed
under the FRL

254.9
13.4
10.5
230.9

¥ 4,079.4 ¥ 4,136.5

Status of Loans by Nationality of Borrowers (Aggregated Figures of the Three Banks)
Asian Countries(Billions of yen)

Outstanding balance
March 31,2001

September 30,
2001

Hong Kong

¥

538.4

¥

627.6

Non-Accrual, Past Due & Restructured Loans
September 30,
2000

¥

654.9

March 31,2001

September 30,
2001

¥

7.3

¥

15.7

September 30,
2000

¥

31.5

Thailand

318.5

327.8

315.0

39.0

33.4

29.1

China

237.9

270.2

244.8

20.1

31.7

28.6

Indonesia

215.6

259.1

244.9

46.1

50.2

45.0

South Korea

196.3

202.7

288.4

3.4

4.1

4.2

Singapore

144.3

163.6

171.4

5.9

3.2

3.2

Taiwan

92.1

96.0

83.3

1.3

0.0

1.3

India

68.2

76.5

73.0

6.3

2.0

2.5

Others

223.9

266.6

227.3

Total

¥ 2,035.6¥ 2,290.4¥ 2,303.6

10.9
¥

140.8

7.5
¥

148.0

Latin American Countries

154.6(Billions of yen)

Outstanding balance
March 31,2001

September 30,
2001

Mexico

8.8
¥

¥

87.7

¥

51.6

Chile

87.7

Non-Accrual, Past Due & Restructured Loans
September 30,
2000

¥

61.1

March 31,2001

September 30,
2001

¥

1.9

¥

—

September 30,
2000

¥

—

56.4

45.9

—

—

—

Colombia

38.8

44.1

39.9

0.4

0.4

0.0

Others

103.2

101.7

84.1

1.5

1.2

1.1

Total

¥

281.4

¥

290.1

¥

231.2

¥

3.9

¥

1.7

Russia1.1(Billions of yen)

Outstanding balance
March 31,2001

September 30,
2001

Russia

¥

¥

18.4

¥

18.0

Non-Accrual, Past Due & Restructured Loans
September 30,
2000

¥

36

17.1

March 31,2001

September 30,
2001

¥

3.3

¥

3.7

September 30,
2000

¥

3.5

Results of Off-Balancing Problem Loans (Aggregated Figures of the Three Banks)
Problem Loans in the First Half of Fiscal 2000 and Before (Accumulated Problem Loans)
Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors
and Claims with Collection Risk (under the FRL)

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Total
Types of Off-Balancing Problem Loans

September 30,2001(A)March 31,2001(B)

609.3
782.3
¥ 1,391.7

663.8
1,080.9¥ 1,744.8¥¥(Billions of yen)

September 30,2000 Change(A)-(B)¥ 1,040.0
1,425.5¥ 2,465.6(54.5)(298.5)¥ (353.0)¥(Billions of yen)

For the Six Months ended September 30, 2001

Liquidation
Restructure
Improvement in Business Performance due to Restructuring
Securitization
Write-off
OthersDebt Recovery
Improvement in Business Performance
Total

¥

¥

(144.5)(306.6)0.0(214.0)497.9(185.5)(175.0)(10.4)(353.0)Note: “Others” includes Improvement in Business Performance due to Restructuring.

Problem Loans in the Second Half of Fiscal 2000 (Problem Loans generated additionally)
Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors
and Claims with Collection Risk (under the FRL)
September 30,2001(A)Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Total
Types of Off-Balancing Problem Loans¥¥

March 31,2001(B)

77.7
404.0
481.8

¥
¥

141.9
531.9
673.9

(Billions of yen)

For the Six Months ended September 30, 2001

Liquidation
Restructure
Improvement in Business Performance due to Restructuring
Securitization
Write-off
OthersDebt Recovery
Improvement in Business Performance
Total

¥

¥

(2.1)
(1.6)
(9.9)
(7.1)
(49.7)(121.2)(108.0)(13.1)(192.0)Problem Loans in the First Half of Fiscal 2001 (Problem Loans generated additionally)
Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors
and Claims with Collection Risk (under the FRL)
(Billions of yen)
September 30,2001

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Total

257.1
930.1
¥ 1,187.3¥(reference) Outstanding Balance of Claims against Bankrupt and Substantially
Bankrupt Obligors and Claims with Collection Risk
(Billions of yen)
September 30,2001

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Total

944.2
2,116.8¥ 3,061.0¥

37(Billions of yen)

Change(A)-(B)¥¥(64.1)(127.8)(192.0)CONSOLIDATED FINANCIAL STATEMENTS
OF MIZUHO HOLDINGS
Consolidated Balance Sheets
Millions of yen
September 30, 2001 and March 31, 2001

September 30, 2001

ASSETSCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Premises and Equipment
Deferred Debenture Charges
Deferred Tax Assets
Consolidation Differences
Customer's Liabilities for Acceptances and Guarantees
Reserve for Possible Losses on Loans
Reserve for Possible Losses on Securities
Total Assets
LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Convertible Bonds
Due to Trust Account
Other Liabilities
Reserve for Bonus Payment
Reserve for Employee Retirement Benefits
Reserve for Possible Losses on Loans Sold
Reserve for Possible Losses on Support of Specific Borrowers
Other Reserves
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Minority Interests
Total Shareholders' Equity
Total Liabilities, Minority Interests and Shareholders' Equity

September 30, 2001

¥ 5,848,953
1,463,670
3,609,184
669,465
11,019,131
251,165
25,801,785
90,587,678
1,181,338
15,219,025
1,735,351
5,544
2,253,622
107,996
5,896,764(1,909,131)(4,587)¥ 163,736,959¥ 5,011,232 $ 48,986,211
2,343,046
12,258,547
30,227,675—
5,606,910
703,619
92,287,535
10,877,475
2,103,560
392,367
216,095,357
28,062,563
758,690,778
92,286,772
9,893,959
845,277
127,462,526
14,940,725
14,533,930
1,713,356
46,4399,531
18,874,558
1,663,971
904,497
107,764
49,386,635
6,129,641(15,989,377)(1,627,632)(38,418)(4,233)¥ 163,455,480 $1,371,331,322¥ 85,198,408
16,715,716
7,867,022
6,513,491
1,306,389
6,373,495
3,787,083
631,221
4,097,149
7,436
1,530,204
16,957,429
23,55480,184
121,972
195,512
9,065
15,531
342,213
5,896,764
157,669,847
765,7625,301,350¥ 163,736,959¥ 80,176,482 $ 713,554,511
139,997,627
17,848,257
65,887,959
13,208,076
54,551,858—
10,941,287
2,369,254
53,379,356
4,687,700
31,717,621
3,871,945
5,286,613
273,849
34,314,483
3,998,017
62,2808,088
12,815,787
1,826,412
142,022,022
21,186,842
197,272—
671,562
126,050
1,021,542
199,093
1,637,454
159,62875,924
24,740130,081
11,4622,866,113
343,728
49,386,635
6,129,641
156,449,275 1,320,517,987
6,413,417
751,933
44,399,918
6,254,270¥ 163,455,480 $1,371,331,322

Notes: 1.The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2.The rate of ¥119.40=US$1.00, the foreign exchange rate on September 30, 2001, has been used for translation.

38

March 31, 2001

Thousands of U.S.
dollars

Consolidated Statements of Operations

For the Six Months ended September 30, 2001 and 2000

IncomeInterest Income
Fiduciary Income
Fee and Commissions Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Fee and Commissions Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income (Loss) before Income Taxes and Minority Interests
Income Tax Expenses-Current
Income Tax Expenses (Benefits)-Deferred
Minority Interests in Net (Income) LossNet Income (Loss)

Millions of yen

Thousands of U.S.
dollars

September 30, 2001 September 30, 2000

September 30, 2001¥

1,616,091
22,123
264,567
100,004
358,268
430,047
2,791,104¥ 2,187,487
29,812226,016
62,381
244,248
762,052
3,512,000$ 13,535,106
185,288
2,215,810
837,5623,000,577
3,601,740
23,376,083

869,835
46,845206,942
637,874
1,432,219
3,193,716(402,612)
18,892(136,169)
20,698¥ (264,637)

1,525,277
46,008215,935
589,234
813,304
3,189,761
322,238
49,821
85,678(31,911)¥ 154,826

7,285,055
392,338
1,733,184
5,342,331
11,995,136
26,748,044(3,371,961)
158,227(1,140,446)
173,350$ (2,216,392)

Notes: 1.The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2.The rate of ¥119.40=US$1.00, the foreign exchange rate on September 30, 2001, has been used for translation.

Consolidated Statements of Retained Earnings

For the Six Months ended September 30, 2001 and 2000

Millions of yen

Thousands of U.S.
dollars

September 30, 2001 September 30, 2000

September 30, 2001

Retained Earnings at beginning of Period
Increase
Decrease
Net Income (Loss)
Retained Earnings at end of Interim Period¥ 1,107,231
2,426
43,408(264,637)¥ 801,612

Notes: 1.The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2.The rate of ¥119.40=US$1.00, the foreign exchange rate on September 30, 2001, has been used for translation.

39¥ 917,065
8,294
43,408
154,826¥ 1,036,778$ 9,273,299
20,319363,553(2,216,392)$ 6,713,673

Consolidated Statements of Cash Flows
Millions of yen
September 30, 2001

For the Six Months ended September 30, 2001 and 2000

I. Cash Flows from Operating Activities
Income (Loss) before Income Taxes and Minority Interests¥ (402,612)
Depreciation
42,715
Amortization of Consolidation Differences
14,297
Equity in Losses (Gains) from Investments in Affiliates
1,089
Increase (Decrease) in Reserve for Possible Losses on Loans
276,525
Increase (Decrease) in Reserve for Possible Losses on Securities
354
Decrease in Reserve for Possible Losses on Loans Sold
(77,120)
Increase (Decrease) in Reserve for Possible Losses on Support of Specific Borrowers
35,883
Increase (Decrease) in Reserve for Contingencies(15,852)
Increase in Reserve for Bonus Payments
23,554
Decrease in Reserve for Retirement Allowances—
Increase in Reserve for Employee Retirement Benefits
9,978Interest Income—accrual basis(1,616,091)
Interest Expense—accrual basis
869,835
Gains on Securities(162,533)
Losses from Money Held in Trust
20,829Foreign Exchange Losses-Net
84,400Losses on Dispositions of Premises and Equipment
7,820
Losses (Gains) on Establishment of Retirement Benefit Trust(74,592)
Net Decrease (Increase) in Trading Assets(207)
Net Increase (Decrease) in Trading Liabilities
1,522,415
Net Decrease in Loans and Bills Discounted
2,025,650
Net Increase in Deposits
2,746,849
Net Increase (Decrease) in Negotiable Certificates of Deposit (Liabilities)
2,322,992
Net Decrease in Debentures (excluding Subordinated Debentures)(1,130,040)
Net Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money)
73,299Net Decrease (Increase) in Due from Banks (excluding Deposits with Central Banks)(144,290)
Net Decrease (Increase) in Negotiable Certificates of Deposit (Assets)
13,045
Net Decrease (Increase) in Call Loans(2,597,556)
Net Decrease (Increase) in Cash Placed as Collateral on Securities Borrowed(281,736)
Net Increase (Decrease) in Call Money
1,080,810
Net Decrease (Increase) in Commercial Paper(1,100,938)
Net Increase (Decrease) in Cash Received as Collateral for Securities Lent
511,690
Net Decrease (Increase) in Foreign Exchange (Assets)(347,219)
Net Increase (Decrease) in Foreign Exchange (Liabilities)
360,304
Net Increase (Decrease) in Issuance, Redemption of Bonds and Notes(80,799)
Net Increase (Decrease) in Due to Trust Account(290,184)
Interest and Dividends Income—cash basis
1,668,846
Interest Expense—cash basis(954,086)
Others(3,248,304)
Subtotal
1,189,021
Cash Paid in Income Taxes(37,497)
Net Cash Provided by Operating Activities¥ 1,151,524
Notes: 1.The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2.The rate of ¥119.40=US$1.00, the foreign exchange rate on September 30, 2001, has been used for translation.

40

Thousands of U.S.
dollars

September 30, 2000 September 30, 2001

¥ 322,238
36,348
11,191(9,849)(427,146)(4,493)(57,694)(1,673)276—(145,991)
166,522(2,187,487)
1,525,277(479,587)
29
16,567
21,70858,485
1,223,658(1,125,512)
768,2092,598,493(1,179,325)(394,586)(10,350)
109,222(123,160)
322,241
771,850(873,150)(360,004)(788,735)
11,535(130,695)
65,47096,615
2,164,699(1,558,769)(59,493)372,934(26,962)¥ 345,972$ (3,371,963)
357,748
119,748
9,121
2,315,961
2,966(645,903)
300,533(132,766)
197,272—
83,573(13,535,106)
7,285,055(1,361,254)
174,455
706,875
65,499(624,729)(1,737)
12,750,550
16,965,244
23,005,442
19,455,552(9,464,330)
613,900(1,208,464)
109,256(21,755,081)(2,359,598)
9,052,010(9,220,590)
4,285,515(2,908,033)
3,017,629(676,716)(2,430,358)
13,976,937(7,990,678)(27,205,230)
9,958,305(314,045)$ 9,644,260

Consolidated Statements of Cash Flows
Thousands of U.S.
dollars

Millions of yen
For the Six Months ended September 30, 2001 and 2000

September 30, 2001

II. Cash Flows from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Premises and Equipment
Proceeds from Sale of Premises and Equipment
Payments for Purchase of Stocks of Subsidiaries(affecting the scope of consolidation)
Payments for Purchase of Stocks of Subsidiaries(not affecting the scope of consolidation)
Net Cash Used in Investing Activities
III. Cash Flows from Financing Activities
Proceeds from Issuance of Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds,Notes and Convertible Bonds
Repayments from Redemption of Subordinated Bonds, Notes andConvertible Bonds
Proceeds from Investment of Minority Interests
Repayments of Minority Interests
Dividends Paid
Dividends Paid for Minority Interests
Payments for Purchase of Treasury Stock
Proceeds from Sales of Treasury Stock
Net Cash Used in Financing Activities
IV. Effects of Exchange Rate Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents
VI. Cash and Cash Equivalents at Beginning of Interim Period
VII. Net Increase in Cash and Cash Equivalents Resulting
from Inclusion of Subsidiaries from Consolidation
VIII. Cash and Cash Equivalents at End of Interim Period¥(34,377,074)
24,930,313
9,102,528(48,844)
171,652(77,655)
33,999Notes: 1.The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2.The rate of ¥119.40=US$1.00, the foreign exchange rate on September 30, 2001, has been used for translation.

41

September 30, 2000

September 30, 2001¥(32,784,070) $ (287,915,196)
22,914,750
208,796,594
9,978,186
76,235,579(729,961)(409,083)
564,655
1,437,622(49,568)(650,378)
29,906
284,755(935)—(7,838)(1,085)(267,101)(271)(76,372)(9,089)(2,237,034)

116,000(402,700)
263,800

59,000(134,500)
194,590

971,524(3,372,697)
2,209,380(159,558)
21,856(15,568)(43,364)(22,480)(243)233(242,025)
7,001
649,399
2,219,805(161,402)
800—(43,407)(21,605)(1,173)
1,064(106,633)
3,801
166,767
2,982,889(1,336,333)
183,052(130,392)(363,188)(188,275)(2,037)
1,956(2,027,010)
58,642
5,438,858
18,591,336

46¥ 2,869,251—¥ 3,149,656

389$ 24,030,583

MIZUHO HOLDINGS' BOARD OF DIRECTORS

Chairman & Co-CEOs

Masao Nishimura

Directors

Yoshiro Yamamoto
President & Co-CEO

Katsuyuki Sugita

Deputy Presidents

Yozo Okumoto

Hiroshi Araki
Masatake Matsuda
Glen S. Fukushima

Corporate Auditors

Kenji Nakamura

Toshiyuki Ogura

Yoriaki Sakata

Kuniya Sakai

Shusai Nagai

Kisaburo Ikeda

Setsuo Umezawa

Toshikuni Nishinohara

Yukio Nozaki

Isao Hiraide

Toshiaki Hasegawa(As of September 30, 2001)

OFFICE NETWORK OF MIZUHO

Mizuho Offices (as of December 31, 2001)

Europe and the Middle East
BranchesMizuho Trust & Banking Co. (USA) (New York)

London, Düsseldorf

Mizuho Capital Markets Corporation (New York)

Representative OfficeMizuho Bank (Canada) (Toronto)

BahrainMizuho Nederland N.V. (Amsterdam)
Mizuho Bank (Schweiz) AG (Zurich)

SubsidiaryMizuho International plc (London)

DKB Investment Management International Limited

Mizuho Capital Markets (UK) Limited (London)
Mizuho Trust & Banking (Luxembourg) S.A.

Asia and Oceania

Mizuho Capital Markets (HK) Limited (Hong Kong)

BranchesSeoul, Shanghai, Dalian, Hong Kong, Taipei, Kaohsiung,Mizuho Securities Asia Limited (Hong Kong)

Bangkok, Singapore, Sydney

PT. Bank Mizuho Indonesia (Jakarta)

Representative Offices
Beijing, Wuhan, Xiamen, Guangzhou, Manila, Ho Chi

DKB Offices

Minh City, Yangon, Jakarta, New Delhi

Domestic Network (as of September 30, 2001)

Subsidiaries and Affiliates

Branches: 317
Sub-branches: 40

DKB Leasing (Thailand) Co., Ltd., TISCO Finance Public

Agencies: 5Company Limited, Chekiang First Bank Ltd., DKB Asia

Automated Service Centers: 457

Limited, P.T. Dai-Ichi Kangyo Panin Leasing, DKB
Merchant Bank (Singapore) Limited, Dai-Ichi Kangyo
Australia Limited

International Network (as of December 31, 2001)
The Americas
Branches and Agency
New York, Chicago, Los Angeles (Agency), Panama, Cayman
Representative Offices
Mexico, São Paulo, Caracas, Buenos Aires
Subsidiaries and Affiliates
DKB Financial Futures Corp., Dai-Ichi Kangyo Bank of
California, DKB Data Services (USA) Inc.,
UNIBANCO-UNIÃO DE BANCOS BRASILEIROS S.A.
42

Fuji Bank Offices

IBJ Offices

Domestic Network (as of September 30, 2001)

Domestic Offices (as of September 30, 2001)

Branches: 261

Branches: 24

Sub-branches: 43
Agencies: 2

International Offices (as of December 31, 2001)

Automated Service Centers: 647

The Americas
Branches, Offices and Agency

International Network (as of December 31, 2001)
The Americas

New York, Chicago, Los Angeles (Agency), San Francisco

Branches and Agencies(Office), Atlanta (Office), Houston (Office), Grand
Cayman

New York, Chicago, Los Angeles (Agency), Houston(Agency), Grand Cayman

Representative Offices

Representative Offices

Mexico, São PauloSão Paulo, Colombia

Subsidiaries and Affiliates

Subsidiaries and Affiliates

Aubrey G. Lanston & Co. Inc., DLIBJ Asset Management

Fuji America Holdings, Inc., Fuji Futures Inc.,

U.S.A., Inc., IBJ Whitehall Bank & Trust Company,

Fuji Securities Inc.,

The Bridgeford Group, Inc., The Industrial Bank of JapanThe Fuji Bank & Trust Company

Trust Company

Europe and the Middle East
Europe and the Middle East

Branches

Branches

London, Paris

London, Madrid, Milan

Representative Offices
Bahrain, Tehran

Representative OfficeSubsidiaries and Affiliates

Bahrain

Fuji Leasing (UK) Limited,

Subsidiaries and Affiliates

Fuji Investment Management Company (Europe) Limited

Industriebank von Japan (Deutschland) Aktiengesellschaft(Frankfurt),

Asia and Oceania

DLIBJ Asset Management International Ltd.,

Branches and Marketing Office

IBJ-BA Consulting Investitionberatung GmbH

Seoul, Shanghai, Dalian, Shenzhen, Hong Kong, Taipei,
Manila, Hanoi, Labuan, Kuala Lumpur (Marketing Office),

Asia and Oceania

Singapore, Mumbai

Branches

Representative Offices

Shanghai, Dalian, Beijing, Hong Kong, Singapore

Beijing, Tianjin, Nanjing, Guangzhou, Kuala Lumpur

Representative Offices

Subsidiaries and Affiliates

Wuhan, Guangzhou, Jakarta

Bangkok Fuji Holding Company, Limited, P.T. Jaya Fuji

Subsidiaries and Affiliates

Leasing Pratama, Fuji International Finance (Singapore)

P.T. Bumi Daya-IBJ Leasing,Pte., Limited, The Fuji Futures (Singapore) Pte., Limited,

IBJ Lanston Futures Pte. Ltd., IBJ Australia Bank Limited

Fuji International Finance (Australia) Limited

43

INVESTOR INFORMATION ON MIZUHO HOLDINGS

Date of Establishment

Transfer Agent

September 29, 2000

Mizuho Trust & Banking Co., Ltd.

Paid-in Capital

Fiscal Year

¥2,572,000 million

April 1 to March 31

Outstanding Shares

Convocation of General Meetings of Shareholders

10,321,267.53 shares

A regular general meeting of shareholders of the Company
shall be convened no later than three months from the last
day of each business year and an extraordinary general
meeting of shareholders shall be convened whenevernecessary.

Common Shares: 9,205,856.53 shares
Preferred Shares: 1,115,411 shares
Number of Shareholders
Common Shares: 151,456

Record Date

Preferred Shares: 10

The Company shall deem shareholders having voting rights
appearing on the last register of shareholders (including theregister of beneficial shareholders; the same shall apply
hereinafter) as of March 31 of each year as the shareholders
who shall be entitled to exercise their rights at the regular
general meeting of shareholders for the relevant fiscal term.
In addition to the preceding paragraph, the Company may
temporarily set the record date whenever necessary, pursuant
to a resolution of the Board of Directors and upon giving aprior public notice thereof.

Principal Shareholders (Common Stock)
Shares held

Percentageof shares
outstanding(%)

The Dai-ichi Mutual Life Insurance
Company

379,158.00

4.11

Japan Trustee Services Bank, Ltd.
(Trust account)

334,825.00

3.63

NIPPON LIFE INSURANCE COMPANY

236,663.76

2.57

THE YASUDA MUTUAL LIFE
INSURANCE COMPANY

188,230.40

2.04

The Mitsubishi Trust and Banking
Corporation (Trust account)

178,012.00

1.93

Asahi Mutual Life Insurance
Company

175,608.00

1.90

The Toyo Trust and Banking
Company, Limited (Trust account A)

132,936.00

1.44

The Yasuda Fire and Marine
Insurance Co., Ltd.

104,694.00

1.13

Nippon Steel Corporation

80,523.00

0.87

Hitachi, Ltd.

78,870.00

0.85

Dividends
Dividends on shares shall be paid to the shareholders or
registered pledgees appearing on the last register ofshareholders as of March 31 of each year or to the holders offractional shares appearing on the last register of holders offractional shares as of March 31 of each year.
Interim Dividends
The Company may, by a resolution of the Board of Directors,
make cash distributions pursuant to the provisions of Article
293-5 of the Commercial Code (referred to as “Interim
Dividends” in these Articles of Incorporation) to theshareholders or registered pledgees appearing on the lastregister of shareholders as of September 30 of each year or tothe holders of fractional shares appearing on the last registerof holders of fractional shares as of September 30 of eachyear.

(as of September 30, 2001)

Stock Listings
Tokyo Stock Exchange
Osaka Securities Exchange
London Stock Exchange
Accounting Auditors
Shin Nihon & Co.
ChuoAoyama Audit Corporation

44

CONTACT INFORMATION

Mizuho Holdings, Inc.
Marunouchi Center Building,
1-6-1, Marunouchi,
Chiyoda-ku, Tokyo 100-8208,
Japan
Tel. +81-(0)3-5224-1111
URL: http://www.mizuho-fg.co.jp/

The Dai-Ichi Kangyo Bank, Limited
1-1-5, Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011,
Japan
Tel. +81-(0)3-3596-1111
URL: http://www.dkb.co.jp/

The Fuji Bank, Limited
1-5-5, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-3216-2211
URL: http://www.fujibank.co.jp/

The Industrial Bank of Japan, Limited
1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.ibjbank.co.jp/

Mizuho Securities Co., Ltd.
Otemachi First Square,
1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5208-3210
URL: http://www.mizuho-sc.com/
Mizuho Trust & Banking Co., Ltd.
Shin-marunouchi Building,
1-5-1, Marunouchi,
Chiyoda-ku, Tokyo 100-8240,
Japan
Tel. +81-(0)3-3240-7000
URL: http://www.mizuho-tb.co.jp/

45