Integrated report2019
Annual Review

April 2018 – March 2019

Mizuho Financial Group

Editorial policy
This Integrated Report includes financial information as well as non-financial
information on such subjects as ESG. The report presents information on Mizuho’s
efforts related to strategies, governance, and other subjects along with information on
how those activities are leading to the creation of value for our customers, society, andMizuho over the short, medium, and long terms. It was edited with the intention ofproviding stakeholders with concise and clear explanations in a story-like form.
The content of this Integrated Report was reported to the Audit Committee of Mizuho
Financial Group, and, after verification of appropriateness by the Disclosure Committee,
the report was given final approval by the President & Group CEO.
We hope this report will further improve understanding of Mizuho andits goal of being “the most trusted financial services group with a
global presence and a broad customer base, contributing to theprosperity of the world, Asia, and Japan.”

Guidelines
referred toInternational Integrated Reporting
Council’s “International Integrated
Reporting Framework”(published on December 2013)
Ministry of Economy, Trade and Industry’s“Guidance for Collaborative Value
Creation” (published on May 2017)

Scope of thereportPeriod covered: From April 1, 2018 to March
31, 2019
Also includes some information after April
2019
Scope covered: In principle, Mizuho
Financial Group and its subsidiaries andaffiliates

Publication
information

Date of issue: September 2019

CONTENTS

2

P.

About Mizuho

P.2
P.3
P.5
P.7
P.9
P.10

Corporate Identity
Mizuho’s journey
Business domain
Value creation process
Financial data
ESG-related data

11 Our strategies

P.

for creating value

P.11
P.21

P.35
P.39
P.49

P.63

for our corporate value
Corporate governance
Message from the Chairman of the Board of
Directors
Board of Directors
Meeting between outside directors
and investors

P.73
P.79
P.82
P.83
P.87
P.88

Risk governanceCompliance
Fiduciary duties
Employee engagement
Compliance with international
financial regulations
Stakeholder communication

Message from the Group CEO
Message from the Group CFO
Communication with shareholders andinvestors

P.27

63 Foundations

P.

5-Year Business Plan: Transitioning to the
Next Generation of Financial Services
Bringing innovation to businessand society through digitalization
Sustainability
Business strategies by company/unit
Retail & Business Banking Company
Corporate & Institutional Company
Global Corporate Company
Global Markets Company
Asset Management Company
Global Products Unit
Research & Consulting Unit

91 Financial andP.

102 Appendix

P.

P.102
P.103
P.104
P.105
P.117
P.118
P.120
P.123
P.124
P.132

Compliance contacts
Support for SMEs and regional revitalization
Internal audit structure
Risk management structure
Business continuity management
Senior executives
Location of offices outside Japan
Investor information
Financial Analysis [Under Japanese GAAP]
Financial Data of Mizuho Financial Group,
Inc. [Under Japanese GAAP]
P.224 Non-Consolidated Financial Statementsof Mizuho Financial Group, Inc. and Three
Subsidiaries [Under Japanese GAAP]
P.238 Basel Regulatory Disclosures
P.316 Disclosure Policy

corporate data

P.91

Eleven-year major financial data
(FY2008-2018)
P.93 Review and analysis for fiscal 2018
P.97 Office network
P.99 Corporate profile
P.100 Group companies

All figures contained in this report are calculated using accounting principles generally accepted in Japan (“Japanese GAAP”). Forward-Looking Statements
This Integrated Report contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including
estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,”“target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy,plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation:
incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of ourassets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar
purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term
Business Plan, realize the synergy effects of “One Mizuho,” and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk
management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations. Further information regarding factorsthat could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our
most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on July 30, 2018, both of which are available in the
Financial Information section of our web page at www.mizuho-fg.com/english/ and also at the SEC’s website at www.sec.gov.
The contents of this Integrated Report were prepared prior to the announcement of our financial results for the first quarter of fiscal 2019.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

1

Mizuho Financial GroupAbout Mizuho

Corporate Identity

Mizuho’s fundamental approach to

Corporate
Philosophy

business activities, based on the
raison d’être of Mizuho

Mizuho’s vision for the future,

Visionrealized through the practice of
the Corporate Philosophy

The shared values and principles of

The Mizuho Values

Mizuho’s people, uniting all executives andemployees together to pursue our VisionCorporate Philosophy
Mizuho, the leading Japanese financial services group with a global presence and a broad customer base, is committed to:Providing customers worldwide with the highest quality financial services with honesty and integrity;
Anticipating new trends on the world stage;
Expanding our knowledge in order to help customers shape their future;
Growing together with our customers in a stable and sustainable manner; andBringing together our group–wide expertise to contribute to the prosperity of economies and societies throughout the world.
These fundamental commitments support our primary role in bringing fruitfulness for each customer and the economies and thesocieties in which we operate. Mizuho creates lasting value. It is what makes us invaluable.

VisionThe most trusted financial services group with a global presence and a broad customer base, contributing to
the prosperity of the world, Asia, and Japan.
The most trusted

The best

The most cohesive

financial services groupfinancial services provider

financial services group

The Mizuho Values
Customer First

Innovative Spirit

Team Spirit

Speed

PassionThe most trusted partner

Progressive andDiversity and

Acuity andCommunication andlighting the future

flexible thinking

collective strength

promptness

challenge for the future2019 Integrated Report2About Mizuho

Mizuho’s journey

Always standing at theforefront of our time,
trailblazing is in our

The Dai-ichi Bank
(photo: National Diet Library)

DNA

1873

1880

1902

The Dai-ichi
Kangyo BankThe Fuji BankThe Industrial
Bank of Japan1873 Establishmentof The Dai-ichi
Bank, 1971
Establishment of
the Dai-ichi Kangyo
Bank through amerger with Nihon
Kangyo Bank

Yasuda Bank
(photo: National Diet Library)1880 Establishment
of Yasuda Bank,
1948 Changed to
The Fuji Bank

(photo: The Mainichi)

1902 Establishment
as a public sectorbank that not onlyoffers long-term
funding but also
securities and trust
banking services

2010
2003

1999

Announcement of medium-term
policy: Mizuho’s Transformation
ProgramEstablishment ofMizuho Trust & Banking

Merger of our threepredecessor banks

Merger with Mizuho Asset
Trust & Banking

2010
2007

2008

European debt crisis

Global financial crisis

Sub-prime mortgage crisis

2004
2003

Banks are permitted to act as
securities brokerages
Establishment of theIndustrial Revitalization
Corporation of Japan2002
Establishment of Mizuho Bankand Mizuho Corporate Bank

3

Mizuho Financial Group2006
Completion of public fundrepayment
Listed on NYSEAbout Mizuho Mizuho’s journey

2011
Mizuho Trust & Banking and Mizuho Securities
become wholly-owned subsidiaries of Mizuho
Financial Group2013
Announcement of medium-termbusiness plan: One Mizuho
New Frontier Plan
Merger of Mizuho Bank andMizuho Corporate Bank
Establishment of Mizuho Securities
Merger with Mizuho Investors Securities

2017
2016

2015
2013
2011
Great East Japan
Earthquake

Start of Trump administration in the US

Bank of Japan introduces negativeinterest rates

The United Nations adopts theSustainable Development Goals

Bank of Japan introduces quantitativeand qualitative monetary easing

2014

2019

Announcement of
5-Year Business Plan

Transition to a Company with Committees
model of corporate governance2016
Announcement of medium-termbusiness plan: Progressive
Development of “One Mizuho”

Establishment of AssetManagement One

Introduction of in-housecompany system

Establishment of Mizuho
Americas2019 Integrated Report4About Mizuho

Business domain

The Mizuho group is composed of Mizuho Financial Group Co., Ltd. (the holding company), its consolidated subsidiaries,
and affiliates accounted for under the equity method. As a financial services group, our business domains include
banking, trust banking, securities, and other financial services.
Under a holding company, the group has five in-house companies, which determine and promote strategies group-wide
across banking, trust banking, securities, and other business areas according to the attributes of customers, and two units
that support all of the in-house companies.

Mizuho Financial Group
Banking

Trust banking

Securities

MizuhoBank

MizuhoTrust&BankingMizuhoSecurities(MHBK)(MHTB)(MHSC)

Retail & Business Banking Company

Corporate & Institutional Company

Global Corporate Company

Global Markets Company

Asset Management Company

Global
Products Unit

Research &Consulting
Unit
Other core groupcompanies* US Bank Holding Company, which is one of MHFG’s coregroup companies and MHBK’s subsidiaries

5

Mizuho Financial Group

Mizuho Americas*

About Mizuho Business domain(group aggregate, management accounting, rounded figures) (¥ billion)

Reference

Net Business Profits by in-house company

1.	Recalculated the FY2018 results based on the FY2019 management accounting
rules
2.	The Global Markets Company’s Net Business Profits include Net Gains(Losses) Related to ETFs
3.	MHFG’s Consolidated figures include Consolidated Net Business Profits and
Net Gains (Losses) Related to ETFs and others

Assetmanagement

Research &consulting

FY2018 results

FY2019 targets

Retail & Business Banking Company

10.0

18.0

Corporate & Institutional Company

268.0

238.0

Global Corporate Company

169.0

157.0

Global Markets Company(18.0)

154.0

Asset Management Company

16.0

13.0

In-house company total

445.0

580.0

Group consolidated

408.3

600.0

Other core groupcompanies

MizuhoPrivateWealthManagement(MHPW)

Customers
Individual customers / SMEs /middle-market corporations
Large corporations / financial
institutions / public-sector entities

Americas / EMEA /East Asia / Asia & Oceania
Investors
AssetManagement
One

Investors
MizuhoResearch
Institute(MHRI)

JTC
Holdings

MizuhoInformation& ResearchInstitute(MHIR)

2019 Integrated Report6About Mizuho

Value creation process

Mizuho’s Corporate Philosophy, which is at the core of our Corporate Identity, states “These fundamental commitments support our
primary role in bringing fruitfulness for each customer and the economies and the societies in which we operate. Mizuho creates
lasting value. It is what makes us invaluable.”
Our customers’ needs and the financial industry are rapidly undergoing structural changes in reflection of the structural shifts
occurring in the economy, industry, and society. In line with our action principles, Open & Connected and Passionate & Professional,

Sustainability: achieving sustaina
prosperity of the economy, industry, andCreation of new value in finance and adjacent fields in oMedium- to long-termchanges in the businessenvironment

Go beyond the conventional boundaries of finance and cr
products and services in order to forge n

Megatrends

Structural changes incustomer needs
Households

Corporations

Markets

 sset formation to prepareA
for the futureDigitalization and connected
lifestyles

Respond to structural changes in customer needs
with financial solutions with added value

Mizuho’s strategy

Digitalization
Aging populationand declining birthrate
Globalization …etc.

 raw on the strengths that Mizuho hasDcultivated thus far
Accelerate our digitalization initiatives
and proactive collaboration with external
partners

Action principles
Open & Connected
Create new, more open value chains spanning bothfinance and adjacent fields

 mooth business succession
SGrowth in Asian economiczones
Industry transformation

Passionate & Professional
Anticipate customer needs and then think, act,and deliver ositive cycle of funds amongPmarket participants

Corporate governanceRisk governance

Revenue

Regulations

Competition7

 eduction in revenue fromR
deposits and lendingT ighter regulations
Entry of players from otherindustries
Response to digitalization

Mizuho Financial Group

Mizuho’s strengths

Structural changes in thefinancial industry

Approach busine
Human &
intellectual
capitalFinancial functions
 bility to respond toA
non-financial needs
Excellent team of professionals

Social &relationshipcapitalAbout Mizuho Value creation process

we will focus on transitioning to the next generation of financial services—building new forms of partnerships with our customers
so that we can respond to their needs as the times change. Our objective is to build a stronger and more resilient financial groupwhich our customers can depend on in the coming era.
Through these efforts, we will create new value for our stakeholders and contribute to the sustainable development and prosperityof the economy, industry, and society around the world as well as contribute to the realization of the SDGs.

able and stable growth for Mizuho, and through this growth, contributing to the sustainable development andd society around the worldorder to transition to the next generation of financial services

reate new value incorporating both financial and non–financial
new forms of partnerships with our customers

New forms of partnerships with customers

Retailcustomers& businessownersBe a partner that helps customers design theirlives in a changing society
Asset formation in an age of longevity
Solutions for business succession needs
Create next-generation branches
Create new business through the application oftechnology and open collaboration

Corporate &institutional
clients

Be a strategic partner for business development
under a changing industrial structureSupport the growth acceleration of startups
Build new partnerships for business development
Leverage our Asian network as a hub for global
business

Marketparticipants

Be a partner with expert knowledge of market
mechanisms and the ability to draw on a range ofintermediary functions
Optimize our global markets operationalframework
Enhance the sophistication of our ALM andportfolio management

Value created forstakeholders
Customers reate new value in adjacentCbusiness areas surrounding financeAchieve increased customer
convenience and business growth

Shareholders
Increase corporate value by
resolving structural issues andaccelerating growth

Employees

Createworkplaces that give
employees a sense of purpose,
linked to customer satisfaction

SocietyContributeto the sustainable
development and prosperity of theeconomy, industry, and society
around the world

Contribute to therealization of the SDGs

ess as a unified group
Customer base and network
Trustworthiness anddependability
Market presence

Financial
capital table capital raisingS
structureSound loan assets
Sufficient equity capital

Further enhance Mizuho’s
strengths

2019 Integrated Report8About Mizuho

Financial data

Historical data(¥ billion)

Consolidated gross profits1

2,300.1

Consolidated net business profits1

2,241.3

2,129.1

Profits attributable to owners of parent

1,995.5

1,827.7
Prior to recording
one-time loss2

929.2
611.9

699.7
603.5

872.5
670.9

576.5
538.0

603.1
408.3

581.8
96.5

FY2015FY2014FY2016FY2017FY2018

1. Consolidated gross profits and consolidated net business profits include net gains (losses) related to ETFs and others
2. Prior to reflecting the one-time loss of ¥695.4 billion recorded in light of structural reforms

Consolidated ROE1

Common equity tier 1 capital ratio*
(%)

8.5%

(consolidated)

Prior to recording
one-time loss2

7.7%

7.4%

9.27

10.15

10.71

1.2%
FY2016FY2017FY2018

1. Excluding net unrealized gains on other securities
2. Prior to reflecting the one-time loss of ¥695.4 billion recorded in lightof structural reforms

Reduction in cross-shareholdings*(¥ billion)

March 31, 2017

March 31, 2018

March 31, 2019

*Basel III fully-effective basis (based on current requirements),
excluding net unrealized gains (losses) on other securities

Expense ratio (group aggregated)1

Reduction amount as of the end of March 2019¥543 billion

78.8%(Approx. ¥580 billion when
1,962.9 including sales already agreed upon)

1,687.5

1,564.8

72.1%

1,419.8
66.9%

Prior to recording
one-time loss2

71.1%

March 31, 2015

March 31, 2017 March 31, 2018 March 31, 2019*Publically listed Japanese stocks, acquisition cost basis.

9

Mizuho Financial GroupFY2016FY2017FY2018

1. The scope of companies aggregated under management accounting has beenchanged since Q1 of FY2017
2. Prior to reflecting the one-time loss of ¥695.4 billion recorded in light ofstructural reforms

About Mizuho

ESG-related data

Environment
Project finance for the power sector
Coal-fired power(ultra-supercritical)

Underwriting of publicly offered sustainable bonds*
in Japan(¥ billion)
Monetary amountNo. of deals
28

10%

Renewableenergy50%

Coal-fired power(supercritical,
subcritical)

Project financeloan balance
for the power sector5%(as of March 31, 2019)Gas-fired power,
other

35%

11
3

124.3
41.1

5.8
FY2016FY2017FY2018*Includes green bonds, social bonds, sustainability bonds, etc.

SocialDiversity in corporate management

Percentage of management positions filled by women1
General manager equivalentManager equivalent and above
Supervisor equivalent and above
Percentage of management positions filled by employees hired outside Japan2

43%

44%

27%

28%

12%
4%

14%
5%

15%

2017

2018

2019

40%
24%

Number of people provided financial education(Number of people)

15,147

16,17812,859

6,763

8,015

5%

1. As of July, total for four group companies in Japan: Mizuho Financial
Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
2. As of March 2019, ratio at Mizuho Bank outside Japan

FY2014FY2015FY2016FY2017FY2018Social responsibility indices which include Mizuho (as of June 2019)
General index

ESG indicesselected by the
GPIF

Themed index

2019 Integrated Report10Our strategies for creating value

Message from the Group CEO

Transitioning to the next generation offinancial services by implementing
our 5-Year Business Plan
We have launched a 5-Year Business Plan: Transitioning to the Next Generation of Financial Services, which covers thefive year period starting from fiscal 2019. After being appointed as the President & CEO of Mizuho Financial Group(“Group CEO”) in April of last year, I have looked back on the path that Mizuho has taken overall and have considered
our current situation in detail. I have given much thought to the ways that we can create new value in the coming era.
In this message, I would like to share with you my perspective as the Group CEO regarding the ways that we are seeking
to address the structural changes occurring in the surrounding environment, what I consider to be Mizuho’s challenges
and strengths, and what we will do as part of our new business plan in order to win out over the competition.

How we are addressing change

What is expected of management
The structure of the economy and society, the ways in whichcountries around the world are connected, and people’s lifestyles
are all undergoing irreversible, structural change at an accelerated
pace. How are we addressing this change? For members ofmanagement, how we handle this era of rapid change may wellbe the greatest challenge we face.
Looking at the current state of the global economy, we are seeing
the continuation of gradual growth overall. However, uncertainty
is increasing in light of factors such as the current US-China trade
friction, and the resulting downturn in confidence regarding the
global manufacturing industry. Going forward, there are
expectations that we will continue to see firm growth, centered on
the US, but we must continue to be cautious regarding increasing
uncertainty arising from a number of directions, including US
trade policy, political developments in Europe, economic andmarket trends in China and emerging economies, and geopoliticalrisk in the Middle East.

11

Mizuho Financial Group

Additionally, over ten years have passed since the last financial
crisis, and there are signs of a turn in the credit cycle. For example
the occurrence of an inverted US bond yield curve, expansion of
the credit spread in the corporate bond market, and the expansionof the leveraged loans market.
In light of the lessons learned from the 2008 global financial crisis,at Mizuho we have enhanced risk management and implemented
more selective credit processes. We keep a close eye on not only
the credit markets but also emerging economies, asset prices, andother trends, working to identify weak points as the financial
markets and real economy constantly change. As a result of these
efforts, I believe we are maintaining an appropriate level of stressresistance in light of credit cycle transitions.
However, in the coming era, it will not be enough to just prepare
for cyclical changes. It is an undeniable truth that the global
economy and society, as well as people’s lifestyles, areundergoing rapid structural change. This is the result of a numberof interconnected factors, including the downward trajectory of
economic growth rates in advanced economies, the emergence ofeconomic disparity and anti-globalization movements, aging
populations and lengthening lifespans primarily in advanced
economies but also in emerging economies, and disruptive
innovation arising from digitalization.

Our strategies for creating value Message from the Group CEO

Tatsufumi Sakai
Member of the Board of Directors
President & Group CEO
Mizuho Financial Group, Inc.

Regarding digitalization in particular, the emergence the IoT
where everyday objects are connected to the Internet, advances inbig data analysis utilizing AI, and other such developments are
creating an interconnected relationship between the physical anddigital world, which in turn is transforming the economy, society,and people’s lifestyles in a wide range of fields. It took humanity athousand years to transition from a hunter-gatherer society to an
agricultural society, and the industrial revolution occurred over aspan of several hundred years. However, the current digital
revolution is likely to completely transform our world within only
a few decades.
From this perspective, we can assume that future global
developments will follow this pattern and that the breadth ofchange will be larger, the pace will be faster, and the outcome will
be more dramatic. Surely this will also affect the world of finance,
and we will see discontinuous structural change transform theindustry beyond our imagination. In that sense, it is unnatural tothink that the finance industry alone would be able to continue
indefinitely in its current form as the world changes and customer
needs and worker preferences change with it. At the mostextreme, it is even possible that the finance industry will cease toexist in the form that we currently know it.

This level of dramatic change means that those who rely too muchon following the paths which led to success in the past may findthemselves falling behind, while those that embrace change andseek transformation will be presented with a rare opportunity.
In light of the ways that the competitive environment has, andcontinues to, change significantly, we must objectively examine
reality and assuredly make changes where they are needed. At thesame time, we must think, act and deliver—drawing on ourstrengths and developing new ideas in a flexible manner unboundby precedent. This will enable us to grow substantially, in waysthat may not have been possible in the past environment.
How we address change and how we can ensure that this attitude
towards change permeates every corner of the organization arevital considerations in the management of our organization during
this period of drastic change within the finance industry.

2019 Integrated Report12Our strategies for creating value

Message from the Group CEO

Business environment and challenges

Digitalization, declining birthrate and ageing population, globalization, etc.

Megatrends

StructuralBusiness
environment

Structural changes
in customer needs

Households

 sset formation toAprepare for the futureDigitalization andconnected lifestyles

Companies

Smooth businesssuccession
Growth in Asian
economic zones
Industry transformation

Markets

 ositive cycle of funds
Pamong market
participants

Structural
Operatingenvironment
Regulatoryenvironment

Competitiveenvironment

Structural changes
in the finance industry
 educed revenue from depositsRand lendingIssues with sustainable profitability
Tightening regulations(capital requirements, money
laundering, etc.)
Companies from other industries
entering the market
Increased profitability of otherJapanese megabanks’ businessoutside of banking, trust banking,and securities domains
Response to digitalization

CyclicalIncreasing uncertainty
in the businessenvironment

 oncerns about economic slowdownCand uncertainty— US trade policy and politicaldevelopments in Europe— Economic and market trends in
China and emerging economies— Geopolitical risk in the Middle East
Signs of a turn in the credit cycle— Inverted yield curve in US bonds
market— Expansion of credit spread in thecorporate bonds market— Expansion of the leveraged loans
marketMismatch between this environment and our business operations frameworkthat has evolved over many years of routine
Business

StructuralissuesFinance

We must quickly implement structural reforms in order to resolve this mismatchand respond to new customer needs

Three megatrends
Following these observations, we must first seek to identify the
major trends underlying these structural changes in the economy,society, and people’s lifestyles. There are three megatrends which
are having a particularly big impact on the finance industry:digitalization, a declining birthrate and ageing population, andglobalization.
As for the first of these trends, digitalization, as I already briefly
touched upon, digitalization is transforming the economy, society,and people’s lifestyles in a wide range of fields. In the businessworld, innovations such as the IoT and 3D printers are driving a
manufacturing revolution. Big data, AI, and other technologies aredramatically changing the service industry. And we are seeing arise in subscription and sharing economy businesses. These majortransitions within the industrial structure are being referred to as
the “4th industrial revolution”.

13

Corporate foundations

Going forward, these revolutionary changes are likely toaccelerate. In order for established financial institutions tocontinue acting as pillars of the financial infrastructure, it is crucial
that we enhance our services by integrating cutting-edge
technology and work to develop new business and increase
productivity.
The second of the three megatrends is a declining birthrate andageing population. Our home base of Japan is a country thatbegan experiencing this trend before other countries. A declining
birthrate and ageing population are serious issues which manyother countries and regions will likely face at various times in the
future. If Japan can present a new model for adapting to thesechanges, it could lead to stable growth in the world economy andis therefore a very important challenge.

In this environment, it is essential that financial institutions act astheir clients’ business development partners, providing businesssupport that goes beyond the traditional boundaries of finance inorder to respond to rapidly evolving client needs.

I believe that Japan is capable of building a model where themerging of Japan’s tradition of craftsmanship and technicalcapabilities with digitalization, in addition to more active use ofaccumulated capital, will create a significant increase inproductivity to off-set population decline, and this will be astrength that drives development.

Also, the basic services that financial institutions provide such as
payments and lending are increasingly being offered by IT
companies, fintech companies, and other industry outsiders.

In Japan, in addition to personal financial assets topping ¥1.8
quadrillion, which have been accumulated since the nation’s
period of rapid economic growth, individuals own more thanMizuho Financial GroupOur strategies for creating value Message from the Group CEO¥1 quadrillion worth of real estate. Despite this, property income
only accounts for 10% of household income in Japan, and it isessential that we work to raise this to a similar level as that of the
US and Europe where it accounts for 20 to 30%. If we canencourage the more effective use of assets, including throughresponding to asset succession and business succession needs,
then we can not only create a shift from savings to investment
and asset formation, essential in this age of longevity, but also by
increasing the return on assets we can build the capital that will
support a new development model for Japan.
As for the third megatrend, globalization, while there has beensome push-back recently such as an increase in protectionist trade
policies, new trade flows are emerging as the result of changes tosupply chains, and factors such as this make it difficult todetermine the future direction of this trend. Although there arelikely to be more twists and turns going forward in trade talks
between the US and China, I believe that the direction of
globalization as a megatrend, including such ebbs and flows, will
become increasingly important.
That said, I think that the basic structure will not change fromwhat we are witnessing now, and emerging economies, primarilyin Asia, will be the main drivers of growth in the global economy.
Current predictions regarding global GDP see China surpassing
the US in the 2030s, and the GDP of Asia (excluding China andJapan) is on track to expand to a scale three times that of Japan.
One of the ways this may impact the finance industry is that theratio of capital flows related to Asia will increase. An importantrole of the finance industry is to act as a bridge between Asia, theUS, Europe, and other regions connecting businesses, andcontributing to the sustainable and stable growth of the global
economy.

Issues that need to be resolved

Three areas of mismatch
Next I would like to examine Mizuho’s situation specifically, andthe mismatch that has arisen in three areas—business structure,
finance structure, and corporate foundations—against the
backdrop of the megatrends discussed above and the structuralchanges in customer needs and the finance industry. In thissection I will provide specific examples for each area.
Firstly, there is a mismatch in terms of business structure. In
Japan in particular, Mizuho’s business structure has been
influenced by the post-war period of high economic growth. For
example, in the case of Mizuho Bank, our business model has
been one involving high fixed costs, a brick-and-mortar branch
network primarily located on prime real estate directly next totrain stations, and building a robust operational structure and IT
systems with the aim of collecting deposits from a broad range ofcustomers and utilizing these funds for corporate lending.

However, digitalization has led to the wide-spread use of moreconvenient services, and customers no longer need to visit a bankbranch in order to make payments, complete various accountprocedures, or use other basic services. As a result, the number ofbranch visitors has been declining year-to-year. Additionally,branches are also able to offer more convenient services byutilizing cutting-edge technology, and therefore going forward
branches will increasingly undergo a change in role, becoming aspace for consulting where retail customers come to discuss
investment for retirement and inheritance matters, and where
corporate clients come for advice on business matters.
In order to respond to changing customer needs, we must
fundamentally revise our business structure from one revolving
around a retail branch network of convenient locations where alarge volume of operations are processed, and therefore resolve
the mismatch that has arisen between this structure and customer
needs.
The second area where there is a mismatch is in our financestructure. In Japan, with the long continuation of negative interest
rates, our net interest margin continues to shrink, and as a result
a structural mismatch has arisen between our declining grossprofits and the expenses required to maintain our traditional
business structure.
Negative interest rates are one method of monetary easing, andtherefore the Bank of Japan might discontinue this policy in the
future. However, considering the outlook for Japan’s declining
birthrate, ageing population, and population decline, it is difficult
to conceive of a scenario where the economic growth rate would
increase significantly, and therefore it is likely that the low interest
rate environment will continue going forward.
Given these factors, we must resolve the mismatch regarding ourfinance structure by fundamentally reducing fixed costs inaddition to investing in areas both within and beyond the
traditional boundaries of finance in order to respond to new
customer needs and create new value.
Lastly, there is a mismatch in terms of our corporate foundations.
As customer needs undergo structural changes, we must change
as well—including the way we manage our business, the way wework, and our every-day operational processes. If we do notchange then we will not be able to provide new services that meetthe needs of customers in this new era.
In particular, workforce-related issues are crucial. When I entered
the workforce 35 years ago, “life-time employment” (employment
at the same company until retirement) was the assumption at
Japanese corporations and the norm was to work until aroundage 55 or 60 and then live off of the national pension, company
retirement benefits, savings left over after repaying one’s housing
loan, and other such sources of post-retirement income. However,
now we are entering an age of longevity. It is estimated that over
40% of children born in Japan today will live to be 100. So it will
be necessary for individuals to find ways to achieve fulfillment for2019 Integrated Report14Our strategies for creating value

Message from the Group CEOa longer period of time, including the possibility of working
beyond the standard retirement age.
In Japan, already we are seeing major changes in the preferencesof the younger generations. Rather than selecting a company they
feel an affinity for and planning to work there for the rest of theircareer, young people are selecting a profession they feel anaffinity for, working to gain skills, and networking broadly bothwithin and outside their company, approaching work withincreasing emphasis on self-discovery. For companies, the extent
to which younger workers can develop their careers is gaining
increasing importance.
These examples that I have given regarding areas of mismatch
are only a few of the things we need to address based on our
broader understanding of the situation at hand. In order for us torespond to the rapid changes in the surrounding environment
against the backdrop of these megatrends, we must directly
address these areas of mismatch. Therefore it is essential that we
steadily implement our structural reforms aimed at resolving
them.

Why Mizuho will win out

The strengths we have cultivated thus far
We must clearly identify our unique strengths and implement a
differentiation strategy if we are to win out over the competition
and respond to new customer needs.

15

Mizuho Financial GroupOne of the strengths we have been emphasizing is our approachto business as a united group, under what we have termed the“One Mizuho” strategy. We will continue to further enhance thisstrength while at the same time not limiting ourselves to the One
Mizuho strategy but rather seeking to further evolve it and go
beyond it.
Why is Mizuho able to evolve in this way? I believe the answer isin the strengths we have accumulated over our long history, and I
would like to take this opportunity to share with you, our valuablestakeholders, two specific areas of strength.
The first area of strength is our customer base, network,
trustworthiness, and reliability. The new design of the ¥10,000
note in Japan will feature Eiichi Shibusawa, who founded one ofMizuho’s predecessor banks, the First National Bank, in 1873,
almost ten years prior to the establishment of the Bank of Japan.
Over these 146 years of history, we have cultivated our customer
base, network, trustworthiness, and dependability as our greatest
strengths. Mizuho has a strong customer base and a wide network
both in Japan and around the world, and one of the distinguishing
characteristics of our customer base is that it is broad and open,
not being limited based on corporate affiliations. In this way, tothis day our approach is aligned with Eiichi Shibusawa’s
philosophy. Additionally, out of the approximately 30,000 local
subsidiaries that Japanese companies own outside Japan, around
20,000 of them are located in Asia. Therefore, I believe that one of
our strengths is our ability to draw on our Japanese client base inorder to expand business in other countries in Asia.
As for trustworthiness and dependability, actually these are bothareas where Mizuho scored very high on an anonymous survey ofretail customers conducted in Japan regarding the qualities

Our strategies for creating value Message from the Group CEO

people associate with different companies. We also scored high interms of the quality of our staff. However, compared to
e-commerce companies, we score lower in categories such as
innovativeness and inclination to take on new challenges.

In this way, we have strengths in both finance and non-financefields. I believe this will provide Mizuho with a major advantage
when it comes to directly addressing customer needs in this new
era and creating new value.

Also, Mizuho operates in a highly regulated industry. The
necessary costs associated with the protection of personal
information, anti-money laundering, and other measures required
from the perspective of society are already built into our business.
Recently GAFA* have come under pressure to revise theirbusiness model as they encounter issues in these areas. However,at Mizuho we are able to expand our business based on thetrustworthiness and dependability we have built up throughout
our long history, to the benefit of our customers as well as society
and the economy at large.

Building new strengths
In addition to fully drawing on these unique strengths, we will
focus on advancing digitalization. This will mean that based on
our strategy, at times we will be in competition with otherorganizations, including those outside the finance sector, while atother times we will proactively collaborate with them, thus
creating new strengths.

*An acronym referring to four major US-based IT companies: Google, Apple,
Facebook, and Amazon.

The second area of strength is our financial functions, market
presence, and ability to respond to non-financial needs.
The wide range of financial functions within the Mizuho groupand our strong presence in the markets are major strengths. For
example, Mizuho has ranked first on the Japanese syndicatedloan league table for ten years in a row, and we consistently rank
around the top of Japanese publicly-offered bonds (straightbonds, energy bonds) league tables, in addition to other leading
rankings. Also, in the US corporate bond (DCM) league table(FY2018, investment grade) we ranked 8th overall, but whennarrowed down to the major clients we targeted, we ranked 4th,
directly after three major US financial institutions. This is just one
example of our strong presence in global capital markets.
Additionally, we continue to receive numerous awards fromindustry magazines for our transaction banking and trade financecapabilities in Asia, and this and other forms of recognition point
to the ways that the services we provide are well received.
At the same time, we have many strengths in non-financial areas.
Our research functions, for example, where we have a high levelof expertise spanning a wide range of fields, including being theleading Japanese bank in terms of industry research. As ourclients’ needs shift as they face major changes in the surrounding
environment, our research capabilities are a strong factor ofdifferentiation enabling us to provide solutions spanning bothfinance and non-finance fields.
On top of this, Mizuho Trust & Banking has the strongest realestate track record in the trust banking services industry in Japan,
which is a significant strength in light of increasing asset
succession needs, including both financial assets and nonfinancial assets such as real estate. Additionally, products andservices which combine our trust banking functions with nonfinancial services have been well received by customers. For
example, we launched a new customizable trust product which
combines Mizuho’s range of financial functions such as asset
safeguarding and asset succession, with nursing care and home
check-in services from external providers.

As I mentioned above, over our long history we have built a
reputation for trustworthiness and dependability. While leveraging
these strengths, we will collaborate with IT companies and otherpartners who are on the cutting edge of innovation, working
towards a shared goal of meeting customer needs. By blending
finance and non-finance fields in this way, I believe we canprovide customers with added value in the truest sense.
We have already partnered with SoftBank to provide J.Score, ascore-based lending service targeting individuals in Japan. And
we are collaborating with regional financial institutions fromthroughout Japan to offer J-Coin Pay, a cashless payment service.
Other initiatives include a new lending business targeting SMEs
which we are working on with Credit Engine, and plans forestablishing a new bank in partnership with Line. In this way, we
are working with a broad range of partners in various industries
and of different scales with the aim of responding to customer
needs through a flexible, open, and connected approach tocustomer engagement, services, business infrastructure, andother aspects. Going forward we will further expand these efforts
with the aim of differentiating Mizuho from our competitors.
A year to build the groundwork for structural reform
implementation
Fiscal year 2018 was positioned as the launchpad for our new
business plan and I would like to share some of the initiatives weadvanced.
Since being appointed as Group CEO in April of last year, I
positioned fiscal 2018 as a year where we would go on theoffensive. I put an emphasis on strengthening earnings power inline with our actual business circumstances. As a result, revenue
in customer divisions, primarily for large corporations in Japanand clients outside Japan, trended upward. This was the highest
earnings since introducing the in-house company system and is
one way that we are seeing the impact of our efforts.
Also, in light of the structural reforms that we identified as part ofefforts to ascertain the overall business situation, with the aim ofaddressing issues as early as possible we recorded a one-timeloss in fiscal year 2018 financial results in order to reduce theburden on future fiscal years and immediately resolve themismatch regarding our finance structure. I am confident that thiswas the best option in order to enable us to resolve structural

2019 Integrated Report16

Our strategies for creating value

Message from the Group CEO

issues at an early stage and fully draw out the strengths andpotential that we have accumulated thus far.
Additionally, we positioned the migration to our next-generation
IT system as a top priority for management and were able tocomplete an eight-stage migration process smoothly in fiscal year
2018. I believe that these efforts will ensure that we have thegroundwork in place for implementing the structural reforms
under our new business plan.

What we will do in order to win out overthe competition

Basic policy: Three-pillar reform
Our 5-Year Business Plan: Transitioning to the Next Generation of
Financial Services, was formulated based on the structural issues,
strengths, and other considerations outlined in the preceding
pages. As I have explained, I believe that one of the largest issues
facing Mizuho at the moment is the need to resolve the mismatchthat has arisen between structural changes in customers’ needs
and the business operations framework that has evolved overmany years of routine at Mizuho. This is necessary to enable us tomeet new customer needs.
With this in mind, our basic policy under the new business plan is
to implement forward-looking structural reforms focused on threeinterconnected areas: business structure, finance structure, andcorporate foundations. This will enable us to resolve the mismatchin the allocation of corporate resources and respond to new
customer needs, aiming to transition to the next generation offinancial services.

Time frame: Why we chose a five year period
Although our previous business plans were three years, this newplan is for five years. A three-year time frame is sufficient foraddressing immediate issues. However, a three-year plan tends tofunction as an extension of ongoing initiatives and potentiallymay only address the symptoms rather than root causes. By
adopting a five-year time frame, we believe that we will also beable to directly address the root of structural issues, aiming totransition to the next generation of financial services.
In particular, in the last two years of the period as our efforts
begin to bear fruit, we plan to further accelerate growth, and wehope that our stakeholders can see how this time frame therefore
represents our major commitment.
Key strategy: Creation of new value in both financial andnon-financial business areas
Our key strategy for realizing our basic policy is to go beyond theconventional boundaries of finance and create new value
incorporating both financial and non-financial products andservices in order to forge new partnerships with our customers.
Allow me to go into detail on this important point. Until recently
the value proposition of financial institutions has been based on
traditional financial services, focused on the value of money itself.
Of course, the importance of money itself is not going to change
any time soon. However, as I mentioned above, as peoples’
lifestyles and values change, and as countries around the world
become more interconnected in terms of economic and industrial
structures, we are experiencing a time of broad change and newcustomer needs are rapidly arising.
For example, individuals are not only interested in investing theirmoney but also in convenient services integrated with anincreasingly digitally connected lifestyle, or in light of increasing

Time frame

Last 2 years (FY2022 - 2023)

Business structure reforms

Achieve the effects of structural reforms andaccelerate further growth

Finance structure reforms
Corporate foundations reforms
First 3 years (FY2019 - 2021)

Full implementation of the structural reforms, building thefirm foundations for next generation financial services

 egin to see the full effects of structural reforms
BNewly launched businesses make a marked
contribution to earnings
Invest in further growth and enhance
returns to shareholders ccelerate and implement structural reforms
AInvest in future growth and seek out new businessEstablish a stable revenue base and secure reserves forinvestment

5-Year Business Plan (FY2019 - 2023)

17

Mizuho Financial GroupOur strategies for creating value Message from the Group CEO

longevity, services with support for later in life such as inheritanceor nursing care, or for business succession and other suchconcerns.
And companies are not only interested in financing but also inother means of growth support, business structuretransformation, or responding to the business risk arising fromthis growth and transformation, talent acquisition needs, andother such concerns.
Given these changes in needs, the financial services industry mustchange as well. To build new forms of partnerships with ourcustomers, we cannot limit ourselves to traditional financial
domains. We must seek to identify the underlying needs of ourcustomers based on their hopes, dreams, or concerns, andconnect with customers at a deeper level.
Our aim is to go beyond the conventional boundaries of financeand draw on a wide range of resources. We will seek to create
new value incorporating both financial and non-financial products
and services with added value by expanding into and connectingwith adjacent business fields. That is the essence of our key
strategy.
Under this key strategy, we will fully draw on the strengths that
Mizuho has cultivated thus far—customer base, trustworthiness,and financial functions—as well as our ability to respond tonon-financial needs in domains such as research, consulting, andreal estate. These strengths will be a major source ofdifferentiation for Mizuho. We will also work to create new value
by further enhancing our digitalization initiatives and moreproactively collaborating with external partners.
In order to achieve this, we have adopted “Open & Connected”
and “Passionate & Professional” as our action principles. Open &Connected means that we will connect customer segments,
regions, functions, and other aspects of our business in open
partnerships within and outside the group in order to create newvalue chains spanning both finance and adjacent fields.
Passionate & Professional means that each member of the groupwill be encouraged to find a source of inspiration in the dreams
and hopes of our customers, better connect with them, and draw
on a high level of expertise to think, act, and deliver.
In implementing this strategy, we are aiming to transition to thenext generation of financial services. Below I will explain theinitiatives we will take through structural reforms in three areas
based on our basic policy and key strategy.
Business structure reforms
As for our business structure reforms, in light of structuralchanges in customer needs, we will fully draw on our strengths
and go beyond the conventional boundaries of finance in order toprovide optimal services and solutions.

For retail customers and business owners, we will aim to be apartner that helps customers design their lives in a changing
society. While identifying asset formation and business succession
needs arising in this age of increased longevity, we will provide
solutions spanning both finance and adjacent fields such as realestate. Digitalization is also leading to a shift in customer needs,
and we will promote cashless payments, transform our network
into next-generation branches, and other initiatives, collaborating
openly with external partners in order to provide a variety of
reliable and convenient services as quickly as possible.
For corporate clients we will aim to be a strategic partner forbusiness development under a changing industrial structure,including supporting the growth of startup companies. Byleveraging our strong industry insight, we will become better able
to take on risk in non-financial business fields such as pursuing
joint investments with our clients, and will forge new forms ofpartnership, replacing those based on cross-shareholdings.
Additionally, in our business outside Japan our strengths include
our client base and network, especially in Asia where high growthis expected, and our presence in attractive US capital markets. We
will draw on these strengths to promote a sharper strategy
focused on capturing cross-border trade flows and capital flows,
supporting clients’ cross-regional business growth.
For market participants, we will aim to be a partner with expert
knowledge of market mechanisms and the ability to draw on a
range of intermediary functions. We will fully leverage ourstrengths, such as our network of investors and issuers aroundthe world, in order to strengthen our sales & trading business. In
terms of banking, we will enhance ALM and portfolio
management in order to stabilize revenue and strengthen our risktaking capabilities.
 or more details on our business structure reforms, see page 31, andF
for information on the business strategies of each in-house company
and unit, see pages 49 to 62.

Finance structure reforms
Our finance structure reforms are designed to enable us totransition to a more flexible business and revenue structure whichis responsive to changes in the business environment andcompetitive environment.
We will use four perspectives: (1) risk & return (gross profits ROE)
in relation to capital; (2) cost & return (expense ratio) in relation toinvestment and expenses; and (3) growth and (4) stability in termsof our business portfolio. These perspectives will help us to
identify issues specific to the business and revenue structure ofeach business domain and reallocate corporate resources fromstreamlined areas to focus/growth areas. This will enable us toestablish a stable revenue base at an early stage and transition toa revenue structure that allows us to proactively pursue revenue
streams with upside potential.

2019 Integrated Report18

Our strategies for creating value

Message from the Group CEO

By enhancing the robustness of our financial base through these
efforts, we will be able to better withstand turns in the credit cyclein addition to aiming to invest in growth and enhance returns toshareholders at an early stage. We have revised our shareholder
return policy, and under the new policy we are maintaining thecurrent level of dividends for the time being while aiming tostrengthen our capital base further in order to enhance returns toshareholders at an early stage.
One of our financial targets to be achieved by fiscal year 2023, thefinal fiscal year of the new business plan, is Consolidated ROE ofapprox. 7 – 8%. Another target is Consolidated Net BusinessProfits of approx. ¥900 billion, which we will aim to achieve byenhancing our stable revenue base and strengthening ourearnings power.
 or more details on our finance structure reforms, see pages 23 andF
24.

Corporate foundations reform
As part of our corporate foundations reforms, we will transform
our approach to business operations in line with changes insociety, strengthen group governance, and cultivate a newcorporate culture centered on communication.
In terms of transforming our approach to business operations, wewill focus on priority areas (e.g. personnel & workplace, IT
systems & digital) with the aim of further enhancing employee
engagement and motivation.
To strengthen group governance, we will aim to enhance oursense of group unity, including among group companies otherthan our banking, trust banking, and securities entities, achieve
greater consistency in strategy, and increase execution
capabilities in order to advance our efforts regarding the next
generation of financial services. Going forward, we will further
consolidate and unify Head Office and frontline functions for eachgroup company (Mizuho Bank, Mizuho Trust & Banking, Mizuho
Securities, etc.) to the furthest extent possible, including throughthe use of the new office building we are building in Marunouchi
in the latter half of fiscal year 2020.
We will seek to transform our corporate culture by greatly
increasing the quality and quantity of communication andfostering a new type of culture.
Below I will provide an outline of our new HR strategy, which is
key to how we transform our approach to business operations
and transition to the next generation of financial services.
 or more details on our corporate foundations reforms, see pages 32
F
to 33.

New HR strategy
Under our new HR strategy, we will transform our model fromone where employees seek to enhance their evaluations as thesource of competition is limited to within the company, to a model

19

Mizuho Financial Groupfit for this new age of longevity, where employees’ professional
growth and career preferences are prioritized and employees seek
to enhance their universally recognized value by looking beyond
the traditional boundaries of finance. We believe this model will
ultimately enhance Mizuho’s value.
What we mean by “universally recognized value” is that under
this model each individual will be able to maximize their value ina way recognized both within Mizuho and outside the company,
creating a mutually beneficial outcome for both the company andthe individual. Our approach to talent management thus far has
focused on developing generalists who are well-versed in
Mizuho’s business as a whole, and developing specialists
primarily to perform a supporting role. However, as our businessdomain expands and diversifies, and as competition becomesfiercer, having expertise which is recognized outside the company
is becoming more important than being well-versed in one’s own
company’s business. Each member of the organization will needto develop into a specialist with their own area of expertise.
Therefore, we will transition to a model where employees design
their own career plans, leading to higher ambition and motivationand encouraging the advancement of women, non-Japanesenationals, and other employees from diverse backgrounds. We
will also aim to expand opportunities for employees to take on
new challenges as well as expand our development programs,
providing stronger support for efforts to enhance each individual’svalue. Additionally, we will provide an environment which enables
more diverse and flexible work arrangements aligned to eachindividual’s job duties, lifestyle, and other factors, with the aim ofencouraging greater engagement and long, fulfilling careers.
In terms of expanding opportunities to take on new challenges,
we already have an internal job posting system in place where
employees can apply to open positions. When we launched J-Coin
Pay, for example, many of our employees, particularly younger
employees, applied for these newly formed positions. We willcontinue to expand such frameworks as well as more broadly
assign employees to serve concurrently in multiple positions
within the organization.
We are also looking to allow employees to work at othercompanies concurrently as well, and we have started trials incertain areas. For example, startups tend to focus a lot of energy
on business model transformation and marketing, but could
benefit from the expertise that the employees of financial
institutions have to offer in regards to finances, corporate
management, and other aspects of corporate governance. Also,
there is strong demand from long-standing family-owned
businesses for experienced successor candidates and executive
level managers. As demand in these areas continues to increase,
there are opportunities for Mizuho employees to experience theinnovative process and quick development at startups and othersuch environments, with potential to lead to new value creation at
Mizuho.

Our strategies for creating value Message from the Group CEO

And we will also proactively support network building between
current Mizuho employees and former employees now working
as professionals in other fields, both those who had long careers
at Mizuho and those who left Mizuho at earlier career stages. In
these ways we will seek to create connections among a broad
range of people which can lead to new business opportunities.
Under our new business plan we are aiming to create new value
chains in both finance and adjacent business areas, including nonfinance domains. Therefore we will put in place an HR system
which will enable us to pursue this goal.
Sustainability initiatives
As we move to implement the 5-Year Business Plan, we will be
putting an increased emphasis on sustainability. Sustainable
development efforts are gaining increasing importance, including
in areas such as responding to climate change, respecting humanrights, and adapting to a society with a declining birthrate andaging population. In light of this, there are expectations from awide range of stakeholders that companies’ actions are
considerate of the economy, society, and the environment. In
other words, companies are expected to make efforts to increase
the positive impacts of their business activities and decrease or
avoid negative impacts.
Mizuho has long been committed to corporate social
responsibility (CSR) and we have worked to continually enhance
our initiatives aimed at creating value for a range of stakeholders.
Currently we are using this opportunity with the launch of our
new business plan to revise the initiatives we have implemented
under the concept of CSR and to enhance our group-wide stancetowards sustainability. To this end, we have newly definedsustainability for Mizuho as “achieving sustainable and stable
growth for Mizuho, and through this growth, contributing to thesustainable development and prosperity of the economy, industry,and society around the world”.
Additionally, we have identified “key sustainability areas”
connected to our business structure and corporate foundations
and have incorporated them into our business plan. These areas
were selected with consideration of the materiality to and affinity
with our strategies, and reflect the expectations and demands of awide range of stakeholders. We will proactively work towards
achieving the SDGs through our business activities and enhancing
our medium- to long-term corporate value.

In conclusion: Think, act, and deliverThis year marks the 20th year since Mizuho’s launch in 2000. In
the past two decades, we have overcome several major turns in
the credit cycle, including the non-performing loan issue in Japan
in 2002, the sub-prime loan crisis in 2007-2008, and the global
financial crisis that followed. However, in regards to structuralshifts that have occurred over the last 20 years or so, I believe wemust be prepared to deal with them over the next five years.
In closing, I would like to emphasize that we are not positioning
our new business plan as a new “direction” or “vision” forMizuho. Rather, I believe that this plan is a set of tactics, or acourse of action, for Mizuho. It is designed to make us think on
our feet. In essence, given the very fast pace at which theenvironment around us is changing, there is never a set answer toanything. In these circumstances, we need to face a number ofstructural issues.
As the finance industry faces major structural changes, we at
Mizuho must be dedicated to connecting with our customers, andfocus on changing our everyday approach and way of doing
things. And we need to fully draw on our strengths so that eachindividual can think, act, and deliver based on an open approachto getting things done.
All members of the group are committed to making every effort tosteadily implement this business plan and transition to the next
generation of financial services so that we can build a stronger
and more resilient financial group which our customers candepend on in the coming era.
We appreciate your continued support and will do everything in
our power to exceed your expectations.

July 2019

Tatsufumi Sakai
Member of the Board of Directors
President & Group CEO
Mizuho Financial Group, Inc.

2019 Integrated Report20

Our strategies for creating value

Message from the Group CFO

Establishing a stable profit
structure and robust
financial base

MakotoUmemiya21

Member of the Board of Directors
Managing Executive Officer
Head of Financial Control &Accounting Group (Group CFO)

Mizuho’s financial management principles

Overview of fiscal 2018

Our fundamental approach to financial management is toestablish a stable profit structure and a robust financial base,enabling us to stably perform our financial intermediary functions
under any circumstances as well as transition to a flexible
business and profit structure which enables us to respond to
structural changes in the business environment and customer
needs. This stance allows us to go beyond the conventionalboundaries of finance, provide optimal services and solutions,and contribute to continued growth for our customers and society.

In fiscal 2018, the global economy and the Japanese economy
both experienced a gradual recovery. Although we achieved
significant growth in revenue in customer divisions, ourConsolidated Gross Profits (including Net Gains (Losses) Related
to ETFs* and others) came to ¥1.8277 trillion, a decrease of 8%
year-on-year, as a result of factors including decreased revenue inmarkets divisions, primarily due to a loss of ¥194.7 billion in lightof efforts to enhance the soundness of our securities portfolio,
particularly in respect to non-Japanese bonds.

Mizuho Financial GroupOur strategies for creating value Message from the Group CFO

By promoting structural reforms and expense
discipline, we achieved about a 4% decrease in
General and Administrative Expenses,
amounting to ¥1.4308 trillion. As a result, ourConsolidated Net Business Profits (including Net
Gains (Losses) Related to ETFs and others), havedeclined around 24% year-on-year to ¥408.3
billion.
In terms of Credit-Related Costs, we recorded aloss of ¥19.5 billion, and as for Net Gains/Losses
Related to Stocks (not including Net Gains(Losses) Related to ETFs and others), we
achieved ¥259.8 billion in profit by promoting thesale of cross-shareholdings. Also, we recorded
an extraordinary loss of ¥497.8 billion, due largely
to a ¥500.7 billion loss in light of structuralreforms. As a result of these factors, we achieved
Profit Attributable to Owners of Parent of ¥96.5
billion, representing a reduction of around 83%
year-on-year.
By recording this one-time loss in advance wewill be able to reduce the burden on future fiscal
years and accelerate our structural reforms.
When excluding this one-time loss of ¥695.4
billion, we achieved Net Business Profits(including Net Gains (Losses) Related to ETFs
and others) of ¥603.1 billion, an increase ofaround 12% year-on-year, and Profit Attributableto Owners of Parent of ¥581.8 billion, an increaseof around 1% year-on-year.
*Net Gains Related to ETFs (aggregate for Mizuho Bank andMizuho Trust & Banking) + Net Gains on Operating
Investment Securities (Mizuho Securities consolidated).

Reflecting back on our previous
medium-term business plan
During the period of our previous medium-termbusiness plan, against a backdrop of uncertainty
regarding tightening international regulations
concerning the capital adequacy ratio, we
worked to increase non-interest income throughthe promotion of our One Mizuho strategy withthe objective of restricting the excessive use ofcapital while enhancing earnings power. As aresult, we achieved a record high level of noninterest income in customer divisions in theprevious fiscal year, and our Common Equity Tier
1 (CET1) Capital Ratio1, which is a top priority,
was 10.71%, exceeding our target of 10% under
the previous medium-term business plan.
Also, in regards to our target of reducing crossshareholdings by ¥550 billion, we achieved a
reduction of ¥543 billion, or around ¥580 billion
when including sales already agreed upon,
thereby meeting our target.

 Y2018 Profit Attributable toF
Owners of Parent

96.5

¥

billion- ¥479.9 billion (year-on-year) Y2018 Consolidated Net
F
Business Profits

408.3

¥

billion- ¥129.6 billion (year-on-year)

On the other hand, we fell short of our targets for
Consolidated ROE, which is an indicator of
profitability, and for our expense ratio, which isan indicator of efficiency, even when deducting
the impact of the one-time loss, and therefore
there are challenges remaining. Our allocation of
corporate resources such as capital andinvestment/expenses have not sufficiently led to
an increase in Gross Profits, and this mismatch

Reflecting back on our previous medium-term business plan

FY2018 targets under the previous
medium-term business plan

FY2018 (results)

FY2018 (results) (prior torecording one-time loss)

CET1 Capital Ratio1

Approx. 10%

10.71%N/A

2

Approx. 8%

1.2%

7.4%

RORA (Profit Attributable to
Owners of Parent)

Approx. 0.9%

0.1%

1.0%

Ratio of non-interest income
within total

Approx. 60%

56%

N/A

Consolidated ROE

Reduction incross-shareholdings3
Expense ratio4¥550 billion reduction
60%¥543 billion reduction(Approx. ¥580 billion reduction
including sales already agreed upon)

78.8%

N/A
71.1%

1. Basel III fully-effective basis (based on current requirements), excluding Net Unrealized Gains on Other Securities
2. Excluding Net Unrealized Gains on Other Securities
3. Shares listed on the Japanese stock markets, acquisition cost basis, cumulative amount from FY2015 to FY2018
4. Group aggregated2019 Integrated Report22

Our strategies for creating value

Message from the Group CFO

has expanded in the current environment with the changes in the
structure of society, shifts in customers’ needs, and the long-term
continuation of negative interest rates. Additionally, our businessstructure has been overly reliant on highly volatile revenue easily
impacted by market conditions such as markets-based income
and non-interest income.

We will promote finance structure reforms under our 5-YearBusiness Plan to address these profit structure issues.

Our 5-Year Business Plan
Finance structure reforms

1. Reallocating corporate resources and strengthening our stablerevenue base
As already touched upon in the Message from the Group CEO, we
will identify business/revenue structure issues in each businessdomain, focusing on the following four perspectives: (1) Risk &return (Gross profits ROE) in comparison to capital, (2) Cost &return (expense ratio) in comparison to investment and expenses,(3) Growth potential, and (4) Stability. Based on this, we will
streamline some areas and reallocate corporate resources togrowth areas, enabling us to accelerate the transformation of ourbusiness portfolio to make it more efficient and capable ofcapturing stable revenue streams.
Some of the specific actions we will take are to sell ¥300 billion
worth of cross-shareholdings over the next three years and reduceloan assets and other assets which are not profitable incomparison to allocated capital. Additionally, we will aim to
reduce expenses by around ¥200 billion by reducing ourworkforce and reevaluating or increasing the efficiency of our IT
systems. Then we will allocate the corporate resources such as
capital and expenses that are freed up through these efforts into
fields where there is potential to capture stable revenue streams
and growth fields where there is potential to capture upside
revenue streams such as new business areas, business outside
Japan, and settlements & foreign exchange business.
Through these efforts, we will aim to raise Consolidated Net
Business Profits from around ¥600 billion (prior to recording a
one-time loss) in FY2018 to around ¥700 billion by FY2021 andfurther to around ¥900 billion by FY2023, including recovering ourstable revenue base up to the level it was prior to the introductionof negative interest rates in Japan. Also, we will aim to achieve
Consolidated ROE of around 7 to 8% and reduce our expense ratio
to around 60%.

Consolidated Net Business Profits outlook1 (rounded numbers)
 anking book revenue: Revenue in the banking book excluding ALM revenue2
BUpside revenue: Non-recurring customer-related revenue + trading-related
revenue
Stable revenue: Recurring customer-related revenue + ALM revenue2
Accelerate growth fromrealizing upside revenue
Improve stable revenue mainly
by reducing fixed costs

160
330

tion ofto introduc5)
vel priorlicy (FY201
Reach lepoterainterest
negative

Stable revenue

FY2018+90

Approx. 900

Approx. 700

Mizuho Financial Group

Asset management

10

Corporate solutions

30

Fund investment

30

S&T

50

10

Other

270

160
FY2018200

FY2023

Increase stable revenue streams
500

Expensereduction
(net)

420

FY2021Gross Profits

Cross-shareholdings
Personal loans &deposits

Reduce fixed costs +20
Gross Profits+60
Stable revenue
+80

30
90

FY2023

1. Includes Net Gains (Losses) related to ETFs and others
2. Revenue in the banking book from comprehensive management of assets
and liabilities
3. Prior to recording the one-time loss
4. J.Score, Mizuho Smart Business Loans, etc.

23

Gross Profits

270

110

Reduce fixed costs +70
Gross Profits+20

Expensereduction
(net)

160

603.13110(¥ billion)

Pursue revenue streams with upside potential

30

30
20

Other

20
30
40
Asset management
Settlements & FX
Corporate loans & deposits

500(mainly outside Japan)

330
FY2018New business areas4
Leasing/investments

FY2023Our strategies for creating value Message from the Group CFO

2. Further strengthening our financial base
Our Common Equity Tier 1 (CET1) Capital Ratio was 10.71% as ofthe end of FY2018 when calculated under current Baselrequirements, and 8.2%* on a Basel III fully-effective basis underfinalized requirements. Therefore, we have accumulated enoughcapital to exceed the level required for the finalized requirements
which will be phased in from FY2021 and fully effective from theend of FY2026, in addition to having secured the necessary levelof capital to ensure stress resistance in the case of a stress event
along the lines of the 2008 global financial crisis.
However, we are aware of the need to raise our CET1 Capital Ratio
to the lower end of the 9 – 10% range on a Basel III (finalized
requirements) fully-effective basis in order to enable us to use
capital more flexibly, including investing in growth and enhancing
returns to shareholders. We will continue to build up our equity
capital with the goal of transitioning to a capital utilization phaseas early as possible.

Financial targets

FY2023
Consolidated ROE1

Approx. 7 – 8%Consolidated Net
Business Profits2

Approx. ¥900 billion

1. Excluding Net Unrealized Gains on Other Securities
2. Consolidated Net Business Profits + Net Gains (Losses) Related to ETFs
(aggregate for Mizuho Bank and Mizuho Trust & Banking) + Net Gainson Operating Investment Securities (Mizuho Securities consolidated)

Other key indicators*Excluding Net Unrealized Gains on Other Securities.

Disciplined capital management policy and returns toshareholders
A stable and sufficient level of equity capital is essential toensuring Mizuho’s sustainable growth and our ability to meet the
expectations of stakeholders by maintaining our financial
soundness and fulfilling our role as a financial intermediary evenduring times of economic downturn. At the same time, we
understand the importance of our obligation to provide returns to
our shareholders and investors. Therefore, we continue to carryout a disciplined capital management policy which maintains the
optimal balance between ensuring capital adequacy and providing
steady returns to shareholders.
In regards to returns to shareholders, in light of our current capital
status and our new business plan, we have changed our policy
from one of a steady dividend payout policy setting a dividend
payout ratio on a consolidated basis of approximately 30% to oneof maintaining the current level of dividends for the time being
while aiming to strengthen our capital base further to enhance
returns to shareholders at an early stage. This new policy further
clarifies our intention of maintaining steady dividends in addition
to our goal of enhancing returns to shareholders and doing so at
an early stage.
We will aim to enhance returns to shareholders at an early stage
by steadily implementing our 5-Year Business Plan andstrengthening our capital base.

Common Equity Tier 1 (CET1)
Capital Ratio target level3
Reduction ofcross–shareholdings

Lower end of the
9 - 10% range
Reduction of¥300 billion4

by the end of fiscal 2021

3. Basel III (finalized requirements) fully-effective basis. Excluding Net
Unrealized Gains on Other Securities.
4. Acquisition cost basis.

New shareholder return policy

We are maintaining the current level of dividends forthe time being while aiming to strengthen our capitalbase further to enhance returns to shareholders at
an early stage.
Returns to shareholders for each fiscal year are determined bycomprehensively considering business environment factors
such as the results of the Mizuho group, our revenue base, thestatus of our equity capital, and regulatory trends in Japan andaround the world, including Basel requirements.

Cash dividend per share of common stock

FY2019 (estimate)¥7.50

Interim cash dividend (estimate)¥3.75

Fiscal year-end cash dividend(estimate)¥3.75

2019 Integrated Report24Our strategies for creating value

Message from the Group CFO

Communication with shareholders and investors
At Mizuho, disclosing information to our shareholders and investors in a fair, timely, and appropriate manner is a top priority.
In line with the Disclosure Policy on our website, we actively promote dialogue with our shareholders and investors.
We aim to provide many opportunities both in and outside Japan for shareholders and investors to learn more about our
strategy, corporate governance, and other relevant topics directly from Mizuho’s management. Such opportunities include theGeneral Meeting of Shareholders and a variety of informational sessions and IR briefings.
Through our efforts to communicate and foster an accurate understanding of our strategy, financial situation, and othermatters, we aim to maintain the trust of market participants and receive a fair valuation.

Continued dialogue
Initiatives in fiscal 2018

General Meeting of Shareholders
We view the General Meeting of Shareholders
as a valuable opportunity to engage with andreceive direct feedback from our shareholders,
and we are implementing a number of
initiatives to enhance communication.

(total number, rounded)

Direct meetings
with institutional
investors

In particular we are working to enhancecommunications (providing the convocation
notice earlier and enhancing its content,
including more graphics in the explanation
provided on the day of the event, postingmaterials and a Q&A summary on our
website), making it easier for shareholders to
exercise voting rights (introducing a system for voting via QR code), conducting a survey andposting the results, and other such initiatives.

530(includes 160
overseas investors)

By seniormanagement210

We held the 17th regular General Meeting of Shareholders on June 21, 2019 at Tokyo
International Forum and 1,931 people attended. We will work to enhance our corporate value
based on the valuable feedback we received.

(includes 60
overseas investors)

By IR Dept.

320(includes 100
overseas investors)

General Meeting of Shareholders

Institutional
investors
and analysts

IR
briefings

IR Day

May

Jun

Apr

Individual
investors

25

Visits to overseas
investors

Jul

Redesigned website aimed
at individual investors

Mizuho Financial GroupIR
briefings

Aug

Sep

Oct

Online IR
briefings

Nov

Visits to overseas
investors

Dec

Jan

Feb

Mar

Our strategies for creating value Message from the Group CFO

Institutional investors

Individual investors

We hold an online conference, IR briefing, and otherinformational sessions after announcing our financial results
and these explanations are also available in multiple
formats on our website, including video and transcripts.

We have created a dedicated section on our website forindividual investors which provides an easy to understandsummary of Mizuho’s business and strategy.

IR Day, our briefing for investors about our businessstrategies in each division/in-house company, is a regular
event we have been holding since 2012. In Japan, Mizuho
was the first in the industry to hold this type of event. Basedon requests from investors, since 2015 we have also added
a presentation and a question & answer session by anoutside director to this event. Please see our website for asummary of the presentation and the question & answer
session. We also provide a range of other opportunities forsharing information and creating dialogue, including
regularly hosting “IR Select” events which cover specifictopics that are of interest to investors.
IR briefings

Also, we have made a number of changes to enhance our
website’s ease-of-use, such as adding a function that
displays a share price chart, financial results, and press
releases all together.
We were the first Japanese megabank to provide online IR
briefings where investors can communicate directly with the
CFO and have now offered these opportunities for four
years starting from 2015. In fiscal 2018, around 2,000
individual investors in total viewed these sessions (including
live and recorded viewings).

Website for individual investors
IR DayOnline IR briefings

Constructive dialogue
5-Year Business Plan
When formulating the 5-Year Business Plan we announced in May 2019, the Board of Directors and management took
into consideration the feedback gathered from investors through the General Meeting of Shareholders and various
briefing sessions as well as individual meetings with investors.
Additionally, after announcing the 5-Year Business Plan we explained our thinking behind the plan through dialogue withinvestors and will take into consideration the feedback we received.

Enhancing disclosure
Enhancing information disclosed in our Securities Report
Starting from the March 2019 edition of our Securities Report, we have made a number of efforts to enhance disclosure,including making information regarding issues to be addressed in terms of business policy and the business environment
more straightforward and comprehensive, and also specifying “top risks” in the section regarding business risk in orderto highlight the risks that management considers to be the most significant.

2019 Integrated Report26

Our strategies for creating value

5-Year Business Plan: Transitioning to the Next Generation of
Financial Services
Overview of our new business plan
Business Plan: Transitioning to the Next Generation of Financial
Services.

Our customers’ needs and the financial industry are rapidly
undergoing structural changes, reflecting the structural shifts
occurring in the economy, industry, and society such as
digitalization, an aging society with a low birthrate, andglobalization. It is essential that we respond quickly to thesestructural changes, especially in light of increasing uncertainty
in the business environment due to concerns regarding a
global economic slowdown, signs of a turn in the credit cycle,
and other factors.

As the name suggests, our new business plan is focused ontransitioning to the next generation of financial services—building new forms of partnerships with our customers so that
we can respond to their needs as the times change. Our
objective is to build a stronger and more resilient financialgroup which our customers can depend on in the coming era.

In consideration of this environment and the issues we face,
we announced a new business plan spanning a five-year
period starting from fiscal 2019. The plan is titled 5-Year

5-Year Business Plan: Transitioning to the Next Generation of Financial Services

Basic policy

Implement forward-looking structural reforms focused on three interconnectedareas: business structure, finance structure, and corporate foundations.
Resolve the mismatch that has arisen in the allocation of corporate resources and respond to new customer
needs in order to transition to the next generation of financial services.

Go beyond the conventional boundaries of finance and create new value
incorporating both financial and non-financial products and services in order toforge new forms of partnerships with our customers.
Open & Connected

Key strategy

Passionate & Professional

Draw on the strengths that Mizuho has cultivated thus far

1

Customer base, network,
trustworthiness &dependability

2

Financial functions, market
presence, ability to respondto non-financial needs

3

Approach business as a
unified group

Accelerate our digitalization initiatives and proactive collaboration with external partners

Our objective

Financial
targets for
FY202327

Mizuho Financial Group

Build a stronger and more resilient financial group which our customers can depend
on in the coming era

Consolidated
ROE1

Approx. 7 – 8%Consolidated
Net BusinessProfits2

Approx. ¥900 billion

1. Excluding Net Unrealized Gains on Other
Securities.
2. Consolidated Net Business Profits + Net
Gains Related to ETFs (aggregate forMizuho Bank and Mizuho Trust & Banking) +Net Gains on Operating Investment
Securities (Mizuho Securities consolidated).

Our strategies for creating value 5-Year Business Plan: Transitioning to the Next Generation of Financial Services

Basic policy: Three-pillar reform
By implementing forward-looking structural reforms focused on three inter-connected areas—business structure, finance structure,and corporate foundations—we will work to resolve the mismatch which has arisen in terms of the allocation of corporate resources,
including personnel and our branch network, thereby enabling us to respond to new customer needs and transition to the next
generation of financial services.
We will implement business structure reforms which draw on Mizuho’s strengths in order to address structural issues in theeconomy, industry, and society in addition to implementing finance structure reforms to transition to more flexible business andrevenue structures to respond to changes in the business and competitive environments. We will also implement corporate
foundations reforms to support the continued competitive advantage of our business.
The five-year period of the business plan can be broadly divided into two phases. Phase 1 (the three years starting from FY2019) willconsist of full implementation of the structural reforms, building the firm foundations for next generation financial services. Phase 2(the two years starting from FY2022) will be where we achieve the effects of the structural reforms and accelerate further growth.

Resolve the mismatch
between customer needs
and our sales framework
 evise our business model to respond toRchanging customer needs
Go beyond the conventional boundaries offinance and create new, more open value
chains spanning both finance and adjacent
fieldsCultivate new partnerships with customers

See P31

Resolve the mismatch
between gross profits andexpenses stablish a stable revenue structure and aErobust finance base which can withstandchanges in the business environmentImplement a capital management strategy
which will enable us to transition as soon
as possible to a capital utilization phase

Resolve the mismatch
between how society ischanging and our business styleBusiness
structure reforms

Four perspectives
Risk & Return

Cost & Return

Stability

Growth potential

 ransform our approach to businessT
operations in order to enhance employee
engagement and motivation
Strengthen governance of groupcompanies and accelerate unified groupmanagement
Cultivate a new corporate culture centeredon communication

See P32-33

See P23-24

Financestructure reforms

Corporate
foundations
reforms

2019 Integrated Report28

Our strategies for creating value

5-Year Business Plan: Transitioning to the Next Generation of
Financial Services
Key strategy: Creation of new value in adjacent business areas surrounding financeWith the aim of transitioning to the next generation of financial services, we will go beyond the conventional boundaries of financeand create new value incorporating both financial and non-financial products and services in order to forge new forms ofpartnerships with our customers.
To achieve this, we will fully draw on the strengths that Mizuho has cultivated thus far, accelerate our digitalization initiatives, andmore proactively collaborate with external partners. To this end, we will adopt the action principles of “Open & Connected” and“Passionate & Professional”.

Mizuho’s strengths

 ustomer base, network, trustworthiness & dependabilityCFinancial functions, market presence, ability to respond tonon-financial needs
Approach business as a unified group

Proactive collaboration with external partners

Digitalization initiatives

Consulting
Research
M&A, MBO, LBO
Settlement
and lendingAssetmanagement

Hybridfinancing

Leasing

Respond to structural changes in customer needs withfinancial solutions with added value

29

Mizuho Financial GroupOur strategies for creating value 5-Year Business Plan: Transitioning to the Next Generation of Financial Services

Action principles
Open & Connected
Create new, more open value chains spanning bothfinance and adjacent fields

Passionate & Professional
Anticipate customer needs and then think, act,and deliver

Examples of changing needs

Digitally connected
lifestyles

Non-finance
Solutions areas

with addedvalueLifestyle support services

Life planning in an ageof longevity

More diverse andcomplex businesssuccession

Growth acceleration support
Secondment of senior management
Real estateBusiness matching

Finance areas
Score-based lending

Support the growth ofstartups

Structural shifts inindustries
IoT, sharing economy

Online lending for SMEs

Social costs reduction
through financial
intermediary functions

Improve corporate value

Contribute to the sustainable
development of the economy and society

2019 Integrated Report30

Our strategies for creating value

5-Year Business Plan: Transitioning to the Next Generation of
Financial Services
Business structure reforms
We will implement business structure reforms, primarily in the areas below, in order to exercise our strengths and respond to
structural changes in the economy, industry, and society.

Structural changes in customer needs

Megatrends

Mizuho’s strengths

Priority business domains

Customer base,network

Be a partner that helps
customers design theirlives in a changing
society

Asset formation to prepare for the future

Digitalization

Retail &businessownersSmooth business succession
Convenient services in line with diversifying
lifestyles

Agingpopulationand declining
birthrate

Corporations &institutions

Globalization
Markets

Acceleration of innovation

Trustworthiness
Dependability

Financial functions,market presence

Industry transformation
Growth in Asian economic zones

Positive cycle of funds among market
participants

Ability to respondto non-financial
needs

Approach businessas a unified group

Be a strategic partner
for businessdevelopment undera changing industrial
structure

Be a partner withexpert knowledge ofmarket mechanisms
and the ability todraw on a range ofintermediary functions

Initiatives in priority business domains
Retail customers

Be a partner that helps customers design their lives in a changing society

 ssist customers with asset building to support their life design in an era of lengthening lifespans, andAdevelop professionals capable of providing this assistance.
Provide sophisticated solutions for business succession needs and assist clients with needs regarding
identifying candidates for senior management roles.
Create next–generation branches which combine physical locations and digital channels.
Appeal to new customer demographics and create new demand through the application of technology
and open collaboration.

Corporate clients

Be a strategic partner for business development under a changing
industrial structure

 pen collaboration for growth acceleration including financing the growth of startups and formingO
industry-government-academia partnerships.
 uild new forms of partnerships, sharing business risks.
BLeverage our Asian client base and network in order to support the business development of global
clients.

Market participants

Be a partner with expert knowledge of market mechanisms and the ability
to draw on a range of intermediary functions

 raw on a broad range of intermediary functions to connect investors with other investors and connect
Dissuers with investors.
Enhance the sophistication of our ALM and portfolio management through flexible asset allocation.

31

Mizuho Financial GroupOur strategies for creating value 5-Year Business Plan: Transitioning to the Next Generation of Financial Services

Corporate foundations reformsT ransform our approach to business operations
In terms of transforming our approach to business operations, we will focus on four priority areas—personnel & workplace, IT &digital, channels, and group companies—with the aim of further enhancing employee engagement and motivation.
As part of this, in order to transition to the next generation of financial services, we will introduce a new HR strategy. Under thisstrategy, we will focus on each individual’s growth and career preferences, aiming to enhance employees’ universally recognizablevalue, and ultimately increase Mizuho’s corporate value. (For an overview of the new HR strategy, see P83-86.)

Examples of planned initiatives
Move office buildings

Create a work
environment which
enhances creativity andproductivity

Consolidate and restructure Head Office
functions and business functions

FY2020IT & digital

Utilize technology toenable diverse work
stylesAutomatically digitize paper forms using
AOR

AI
OCR
RPA

FY2019Channels

Transformation intonext-generation branches

Pursue the bestchannels for customers’
needs

Consolidate subsidiaries
providing support functions

Clarify the mission ofeach company and theirrole within the group

Remote work
Provide employees with ultra light-weight
laptops

FY2020

Link the new core banking
system with branch tablets

FY2020

Expand digital channels
Launch online lending services for SMEs

Full-scale consolidation of back office
functions

FY2019Group companies

Four priority areas

Automate operational processes

Goal

Merge Mizuho Delivery Service and Mizuho
Business Service

FY2019FY2019Further enhance employee engagement and motivation

Personnel & workplace

Approach

Streamline think tank subsidiaries
Consolidate corporate functions for Mizuho
Information & Research Institute andMizuho Research Institute

FY20192019 Integrated Report32

Our strategies for creating value

5-Year Business Plan: Transitioning to the Next Generation of
Financial Services
Group company reforms
We plan to expand dual-hat appointments of executive officers between the holding company and group companies as well as
further consolidate and integrate Head Office functions. This will enable us to further strengthen unified group management,
including for group companies other than banking, trust banking, and securities, and also enhance our ability to implement thestructural reforms on a group-wide basis.

Accelerate unified management of group companies and strengthen corporate governanceCore group companies

Strategic group companies (newly established category) trengthen the framework for dual-hat appointments ofS
executive officers and employees
Strengthen the unified management of corporate functions

 stablish a new management framework for the companies
E
under the umbrella of core group companies that are deemed
important in the management of our consolidated businessportfolio

Strengthen group strategic planning and implementation
capabilities in addition to corporate governance and risk
management frameworks
Strengthen corporate governanceAppoint FG executive officers to concurrent
posts as non-executive directors

FG executive officers
dual-hat appointment
as CEO

FG

Unified group management

TB

Main strategic group companies
Orient Corporation2
Mizuho Leasing2, 3Expand concurrent appointment of executive
officers

BK

Strengthen the management system for the holding
company to confirm the consistency of the strategies ofthe entire group and each company

SC

IR

J.ScoreRI

Mizuho Capital

Reduction of the number of executive officers1
78 officers)(102...and others

1. Total number of executive officers above Executive Officer or equivalent position for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho
Securities. The figures are as of June 30, 2019 and are in comparison to March 31, 2018.
2. Equity method affiliates.
3. Current name is IBJ Leasing, which is expected to change on October 1, 2019.

Transforming our corporate culture
By significantly improving both the quality and quantity of communication within the group, we will aim to cultivate the relationshipbetween management, Head Office, and the frontlines to be more open and flat. In this way we will transform our corporate culture
in a way that encourages all members to take more independent and proactive action.

Building the groundwork for new value creation

Cultivating a new corporate culture centered on communication
Get rid of insular thinking

Think on our feet!

Management

Head Office
Management
Frontlines
Head OfficeSignificantly improve both the33

Mizuho Financial Groupqualityand quantity of communication

Frontlines

Our strategies for creating value 5-Year Business Plan: Transitioning to the Next Generation of Financial Services

Value created for stakeholders
Through our initiatives under the new business plan, we will seek to create new value for our stakeholders—our customers,
shareholders, employees, and society as a whole.
We have defined sustainability for Mizuho as “achieving sustainable and stable growth for Mizuho, and through this growth,
contributing to the sustainable development and prosperity of the economy, industry, and society around the world” and we areproactively working to achieve the UN Sustainable Development Goals (SDGs). (For details on our sustainability initiatives, seeP39-48)Implement forward–looking structural reforms focused on three interconnected areas: business structure, finance structure,and corporate foundations.
Sustainability initiatives

Create new value for stakeholders in the new era
Customers

Shareholders

Employees

 reate new value in adjacent businessCareas surrounding financeAchieve increased customer convenienceand business growthIncrease corporate value by resolving
structural issues and accelerating growth reate workplaces that give employeesCa sense of purpose, linked to customer
satisfaction

Society
Contribute to the sustainable development and prosperity of the economy,
industry, and society around the world

Contribute to achieving the SDGs

Reference Quantitative overview of our fundamental structural reforms

In November 2017 we announced fundamental structural reforms, and under our new business plan we will make additional
reductions to the number of branches in Japan and to expenses, aiming to achieve our targets ahead of schedule.
Targets announced Nov. 2017

Expenses

Japanesebranch network

Workforce(estimates)

New business plan

FY2017
Reduction of approx.

Approx.

FY2021

FY2023

FY2024FY202619,000 people

80,000 people-8,000 people-14,000 people-19,000 people

Aim to achieve ahead of schedule

Approx. 80,000-8,000-14,000-19,000(compared to the end of March 2017)

Reduction of approx.

Approx.

130 branches

500 branches-100 branches-130 branches

Additional 30 branches compared
to original target

Approx. 500-50 branches-100 branches¥140 billion¥1.45 trillion- ¥120 billion

FY2021: Reduce by an additional¥20 billion¥1.45 trillion

Around- ¥100 billion(compared to the end of March 2017)

Reduction excl. amortization expenses
related to the next-generation IT system

1 year ahead of schedule- ¥140 billion(Group aggregate, compared to FY2017)

Mid - ¥100 – 200 billion range

2019 Integrated Report34

Our strategies for creating value

Bringing innovation to businessand society through digitalization
By persistently taking advantage of digital technology to accelerate structural reforms toour business and corporate foundations, we will create new value in business areas
adjacent to financeDigitalization initiatives

Focus areas

In recent years, with digitalization being a megatrend, ourcustomers’ needs have been shifting towards smartphone andcashless payment-related services, and tech firms and othernon-financial companies have been entering the financial
industry. We at Mizuho have also been pursuing digitalizationin all areas of our business.

With the flexibility of our new core banking system, we will
create new business centering on strategic white space
opportunities, while also enhancing our existing business andimproving our productivity.

In order to respond swiftly to our customers’ changing needs,
we are leveraging our strengths and collaborating openly withother companies to meet the emerging needs of our customers(create new business) and to transform our business
operations (enhance existing business and improve
productivity).

Mizuho’s strengths

Strengths of partners

Customer base andinformation infrastructure

Innovation and technology

Trustworthiness and reliability(e.g. security, information management)

Customer base andinformation infrastructure

Financial expertise and skill

Insight

1 Create new businessWe will employ digital technology to make bold, gamechanging moves, focusing on areas in which our businessportfolio has been weak.
Customers

 igital-native generation (Line)D
SMEs that prefer digital services(Mizuho Smart Business Loans) P36

Businesses

 onsumer loans (J.Score)CCashless payments (J-Coin Pay)

P36

existing business and2 Enhance
improve productivity
We will apply the flexibility of our new core banking system torevising our channels and streamlining our operations.
Channels

35

Agility

Trial and error

Act with speed andflexibility

Allow ten attempts to
produce even one success

Open innovation

Communication andcollaboration

Work with partners

Timely information
sharing and coordination

Mizuho Financial GroupStreamliningNext-generation branches
AOR

P37

P37

facilitating
3 ITtheinfrastructure
above objectives
We will endeavor to enhance our ability to adopt newtechnologies for implementing our business strategy while
controlling the new risks that accompany digitalization.
The cloudCybersecurity

P38

Our strategies for creating value

Highlights 1

Creating new business

Began offering the digital currency platform J-Coin Pay incollaboration with approximately 60 financial institutions
J-Coin Pay
In March 2019, we launched J-Coin Pay, a QR code-based
smartphone payment service and digital currency platform.
Since then, approximately 60 financial institutions havejoined the platform.
J-Coin Pay allows customers to make payments, send andreceive transfers, and perform a range of other financialtransactions all on their smartphones. Customers are alsoable to use the smartphone app to move funds between their
J-Coin Pay accounts and their deposit accounts at financial
institutions for free, anytime and anywhere.
Together with the participating financial institutions, we willcontinue aiming to realize a cashless society* by promoting
cashless services such as J-Coin Pay.
* The Japanese government isaiming to double the cashless
payments ratio to 40% by 2025
(Ministry of Economy, Trade andIndustry, “Cashless Vision,” April2018).

Mizuho Smart Business Loans to support busy executives
Mizuho Smart Business Loans
In May 2019, we launched Mizuho Smart Business Loans, an
online lending service targeted at small and medium-sizedenterprises. The service is the first of its kind from a Japanese
megabank.
The application process is entirely online, eliminating theneed for clients to visit one of our branches. The new
evaluation employs AI and external data and does not require
financial statements. Clients can receive a loan in as little as
two business days from application.
Small and medium-sized enterprise executives often must
handle multiple tasks aside from their regular businessactivities on their own, including their relationships withbanks. They face a number of difficulties in applying for loans,such as not being able to go to the bank in person, not having
time to make up an application, or not having time to wait thelength of the screening process due to urgent cash flowneeds. With this service, we are addressing not only these
executives’ business needs but also their concerns about
raising funds. This is one example of our efforts to provide
comprehensive solutions for our clients.

Completely online
No branch visit

As little as twobusiness days fromapplication to loan

No financial
statements

2019 Integrated Report36Our strategies for creating value

Highlights 2

Enhancing existing business and improving productivity

Accelerate our initiative to transform branches into spaces for
consulting utilizing digital technology
Establish next-generation branches integrating physical locations with digital solutions
We will change our branches from spaces for primarily operational processes to spaces for consulting. Specifically, we
will expand spaces for life event-related consulting, incorporate tablets and other technologies, and offer consulting
services integrating our strengths in banking, trust
banking, and securities.
OutlineBanking, trust banking,and securities

By proactively moving forward the digitalization of ouroperations, we will also allow customers to open
accounts and make routine transactions using tablets inour branches, without paper forms or seals/signatures.

Digital services

Consulting

Developing and commercializing operational efficiency solutions
using artificial intelligence
AOR
We have started to implement digital transformation initiatives in non-competitive areas throughout the financial sector
for the purpose of providing to regional financial institutions a solution for automating data input from hand-written
documents and non-standard forms, using artificial intelligence (AI), optical character recognition (OCR), and robotic
process automation (RPA) technology. This solution has been dubbed “The AOR™”.*
Specifically, we have started to formulate a plan for the seamless introduction of the solution in operational systems offinancial institutions. The plan is being formulated through close cooperation with six regional financial institutions and
NTT Data Corporation, which operates joint operations centers for financial institutions, by conducting proof-of-concept
testing on The AOR™, and by working collaboratively with two companies engaged in providing services related toworkflow systems in back offices. We aim to substantially improve the productivity of common operational functions in
the financial industry by establishing a framework for providing the solution to regional financial institutions.
* For hand-written documents and non-standard forms, which required manual data-entry as they were difficult to automate, The AOR™ automates and streamlines overall
operations through the highly accurate digitization of character information using AI, OCR, and RPA technology. Based on the results of proof-of-concept testing onrequests for direct debit from accounts, manual data-entry was reduced by approximately 80%.

37

Mizuho Financial GroupOur strategies for creating value

Highlights 3

IT infrastructure

Establish IT infrastructure that allows for quick, secure, andcost-effective adoption of new digital technologies and accelerate
our structural reforms
Enhance our ability to adopt new digitaltechnologies for implementing
our business strategy
At Mizuho, we are striving to enhance our ability to adopt
new digital technologies in order to stay ahead of thechanging times and implement our business strategy in atimely and cost-effective manner.

Features of MINORI
Next-generation IT systemahead of other banks

New core banking system
Main hubLoose coupling

Simple IT system structure

Shared operations platform

Shared account ledgers
for all branches

Operational processing available
at any branch

The starting point for our initiatives is our new core banking
system, MINORI, which we began migrating to in June 2018.
MINORI employs a simplified structure that allows for
combining and reusing function-segmented programs and foreasily connecting with external IT systems.
By leveraging MINORI to integrate with APIs and other tools,
we will proactively advance our open collaboration withpublic cloud and fintech firms. Further, we will aim to
streamline product and service development and investment
with technologies such as AI and RPA and, in doing so,
provide new products and services meeting our customers’
needs quickly and at attractive price points.

Lending

Deposits

Transfers

Componentization

Segmented programs andconvenient and flexible integration

APIs

Fintech firms

Public cloud
firmsOpen collaboration with othercompanies and incorporationof new ideas

Controlling the new risks that
accompany digitalization

1. Cyber Incident Response Team
2. Security Operation Center

Rescue/supportMonitor/respond

Gather information/
implement
countermeasures/investigate! Attacker

Targeted cyberattack
Website alteration
DDoS attack
Hacking
Illegal money transfer

Mizuho-CIRT
Integrated
Forensics
SOC

Multilayer defense systems

With Mizuho-CIRT1 taking the lead, we have assigned highlevel professionals and are drawing on intelligence andcutting-edge technology developed in collaboration withexternal specialist organizations, while also taking initiatives
to strengthen our global strategic resilience capabilities
across the group. These include monitoring via integrated
SOC2, analyzing computer viruses, developing multilayer
defense systems, and other measures.

Externalorganization

Collaborate

As we stated in the Declaration of Cybersecurity Managementthat we released in June 2018, we consider cyberattacks to be
one of the top risks for our business.

Cybersecurity at Mizuho

Protect

The advance of digitalization is connecting a range of thingsand services, and the increased usage of digital technology iscreating new risks. In order to provide safe and reliablefinancial services to our customers, we must address theserisks, in particular by enhancing our cybersecurity systems.

Assets/services to be protected

Information assets
Customer information

Declaration of Cybersecurity Management

https://www.mizuho-fg.com/company/strategy/it/cybersecurrity/index.html

2019 Integrated Report38Our strategies for creating value

Sustainability
We at Mizuho have continually strengthened initiatives to create value for our diverse stakeholders, and have positioned
CSR initiatives as a pillar of our corporate conduct. With the establishment of our new business plan, we have definedsustainability at Mizuho as “achieving sustainable and stable growth for Mizuho, and through this growth, contributing to
the sustainable development and prosperity of the economy, industry, and society around the world”. Sustainability
initiatives will be an integral part of our strategy moving forward, and we have strengthened our stance on advancing
group-wide sustainability initiatives.
Specifically, after deliberation at the Executive Management Committee and the Board of Directors, Mizuho Financial
Group (our holding company) established a Basic Policy on Sustainability Initiatives to define our fundamental approachand methods for advancing sustainability initiatives. Our group companies have adopted the same policy, allowing
implementation of future initiatives on a group-wide level. Also, we have defined key sustainability areas in our 5-YearBusiness Plan in line with the expectations and requirements of stakeholders and based on the importance and affinity ofsuch initiatives with our strategy, as well as medium- to long-term impact on our corporate value, and each in-housecompany, unit, and group will establish a strategy incorporating sustainability initiatives. Additionally, we have set business
related KPIs (monitoring indicators) and targets for our corporate foundations based on the key sustainability areas.
We are also striving to continually enhance these initiatives, placing due emphasis on dialogue with stakeholders, andproactively taking action for the achievement of the sustainable development goals (SDGs).

Sustainability
for Mizuho

Achieving sustainable and stable growth for Mizuho, and through this growth, contributing to thesustainable development and prosperity of the economy, industry, and society around the world

Corporate Identity

Process forselecting key
sustainability areas

Basic Policy on Management
Basic Policy on Sustainability Initiatives

Expectations of society
Expectations andrequirements of various
stakeholders towards
Mizuho as a financial
institution toward thesustainable developmentof the economy, industry,and society

Importance for Mizuho‌Medium- tolong-term impact
on our corporatevalue
 ffinity with ourAstrategies andbusiness domains

39

Mizuho Financial Group

Mizuho’s group strategy

5-Year Business Plan
Key sustainability areas
Business

Management that takes into
consideration the creation of value
for various stakeholders

Contribution to sustainable economic,
industrial, and social development,
and prosperity around the world

Corporate foundations

Improvement of corporate value
through sustainable and stable
growth of the company

Contribution toachieve the SDGs

Our strategies for creating value Sustainability

Key sustainability areas in the 5-Year Business Plan

Declining birthrate
and aging
population, plus
good health andlengthening
lifespans‌Asset formation to prepare for the future‌Expand services that respond to a society with adeclining birthrate and aging population
‌Convenient services in line with diversifying
lifestyles
P37, P41-P42, P50, P58
Smooth business succession
Industry transformation
Acceleration of innovation
Growth in Asian economic zones

Business

Creating resilient social infrastructure
P43, P50, P52, P54, P58, P60, P62

Strengthening capital markets functions
Sound economic
growthTransition to a cashless society
Environmentally conscious social programs
P36, P44, P56, P60

Environmental
considerations

Corporate foundations

Corporate
governance

Human capital

Stable energy supply and addressing climate change
P45-P46, P52‌Enhancing corporate governance‌Risk management, strengthening our IT
infrastructure, and compliance‌Disclosure of information in a fair, timely, andappropriate manner, and holding dialogue withstakeholders
P25-26, P38, P63-P82, P88-P90

Open partnerships and collaboration with a diverse range of stakeholders

Industrial
development &innovation

Talent development and creating workplaces thatgive employees a sense of purpose
P10, P83-P86

Environment andsocietyEnvironmental and human rights considerations forinvestment and lendingAddressing climate changeImproving financial and economic literacy, andpromoting activities that contribute to society basedon regional and societal needs
P10, P47-P48

Note: Icons indicate relation to major Sustainable Development Goals (SDGs)

2019 Integrated Report40

Our strategies for creating value

Sustainability
Declining birthrate
and aging population,plus good health andlengthening lifespans

Address customer needs by providing face-to-face consulting and lifestyle support as apartner helping customers design their lives in a way that is aligned with their changing
interests and concerns in a society that faces a declining birthrate and aging population, as
well as an age of longevity.

Asset formation to prepare for the future
We strive to assist individual customers with asset formation to prepare for the future, by supporting increased financial literacy
and transforming our comprehensive asset consulting services to provide appropriate asset management as a medium- to longterm partner.

Asset formation initiativesT otal number ofindividual customers
who use investment
products

As Japan’s declining birthrate and aging population issues progress,
demand for long-term asset formation services is increasing. At
Mizuho, we are striving to provide comprehensive asset consulting
services that address the needs of customers, including the current
working generation, such as asset formation services andinvestment proposals. To this end, our asset management businessis focused on long-term investment in order to secure the funds
necessary for customers’ future goals as we aim to be a partnerthat helps our customers design their lives in an age of longevity.
We are also leveraging our banking customer base, trust banking
functions, and other group strengths, in order to provide consulting
regarding securing funds for the future, and robo-advisor asset
management. We will continue strengthening our support for asset
formation according to the needs of our customers by providing
investment proposals and consulting.

Inflow of assets(¥ trillion)

FY2018 results

4.1

2.0

2.6%
increase

FY2016 FY2017 FY2018

1.1

1.2

Mizuho A
Securities

B

C

Source: Publicly available materials
from each company
Note: A, B, and C indicate competitor
companies

Expand services that respond to a society with a declining birthrate and aging population
Mizuho provides services which differ from the conventional offerings, addressing the declining birthrate and aging population in
Japan by utilizing our industry expertise and business network.

A service model that contributes to lifestyle disease prevention
In March 2018, Mizuho Bank and Mizuho Information &Research Institute launched a business tie-up to create
services that contribute to the prevention of lifestylediseases among company employees as well as the financial
stabilization of companies and corporate health insurance
associations. This business tie-up utilizes employee healthexamination and medical data to provide a one-stop solution
for improving employee health and evaluating initiative
effectiveness, contributing to the financial stability ofcorporate health insurance associations by preventing
lifestyle diseases and lowering medical expenses. We willcontinue promoting healthy lifestyles for employees bydeveloping new services utilizing digital technology andopen innovation.

41

Mizuho Financial Group

Lifestyle disease prevention services
Mizuho tilize customer base and expertise in the field ofUwellnessData analysis and consulting for corporate healthinsurance associations
Research in the health policy, pension, and welfare fields

Healthcare-related
businesses

 pecialists in the health field and expertise as a service
S
providerOne-stop solutions that contribute to the prevention of lifestyle diseases
Employees

Companies

Corporate health insurance
associations

Lifestyle diseases

Corporate healthinitiatives

Resolve financial
issuesOur strategies for creating value Sustainability

Social impact bond initiatives
As the birthrate declines and the population ages, initiatives in the fields of healthcare and caregiving are becoming more
important. At Mizuho, we are working together with governments and businesses on initiatives utilizing private funds to support
the extension of healthy life expectancy and reduce public sector costs.

Using social impact bonds to support businesses dedicated to extending healthy life expectancy
Mizuho Bank participated in the syndication of a social impact bond (SIB) project which aims to increase the rate ofresidents receiving colon cancer screenings. This project was launched in August 2017 in Hachioji City and in November
2018 in six municipalities in Hiroshima Prefecture, and recommends area residents covered by the national healthinsurance plan to receive colon cancer screenings with the goal of increasing healthy life expectancy and quality of life
through early detection of cancer. This project is notable for several reasons. The Hachioji City iteration is notable as thefirst multi-year results-based SIB in Japan that contributes to solving a regional issue, while the Hiroshima Prefecture
iteration of the project is the first SIB covering a broad area in Japan. This project also raises capital through crowdfunding
with a Pay for Success strategy, and alleviates an issue in the targeted regions via collaboration between a megabank andregional banks. The widespread utilization of SIBs and other results-based public-private sector collaborative initiatives isanticipated as a method of resolving social issues in other fields as well as medicine and caregiving.

Structure for supporting businesses through social impact bonds
Government

Formation of SIB& commissioningof projectIntermediary support
organization
Private-sectorbusinesses

Pay for Success

Reducing the burden ofsocial security costs on
individuals

Government
cost-savings areused to repay
investment

Support SIB adoption

Investors/funders
Project capital

Upfront capital +interest, based on
results

Growth resulting fromsocial projects andcreation of new markets

Diverse investment
opportunities

Support growth

Provide financing/investor matching

Mizuho’s role
Provide services

City residents
Hachioji City colon cancer
examination rate

26.8%
Extension of healthy life
expectancy

Maximumtarget rate19%
9% (FY2015 rate)

2019 Integrated Report42Our strategies for creating value

Sustainability
Industrial
development &innovation

In addition to contributing to industrial development through efforts such as investment ininfrastructure assets, as a strategic partner for our clients’ business development, we are
addressing business succession needs which are diversifying and becoming more complex,
and supporting technological innovation and the development of innovative solutions.

Smooth business succession
In Japan, against the backdrop of the declining birthrate and aging population, as well as the lack of successors for businesses
due to changing economic, social, and industrial structures, client needs in the area of business succession are diversifying andbecoming more complex. In order to support smooth business succession, we are working to provide enhanced solutions as a
unified group.

Our business succession solutions
The business environment that our clients are faced with is shifting
significantly as a result of the declining birthrate and aging of society as well
as changing economic, social, and industrial structures. Against the
backdrop of these issues that are brought about by this businessenvironment, such as the lack of business successors, client needs in thearea of business succession are diversifying and becoming more complex.
We will leverage our strengths such as our strong client base and approachto business as a unified group to provide enhanced, one-stop solutions
spanning banking, trust banking, and securities to ensure smooth businesssuccession for our clients.

Non-relative
employeeNon-relative
outsiderDiversifying businesssuccession needs

Relative

Provision of service on agroup-wide basis

Business succession solutions
Strong customer baseFinancial functions
Best real estate brokerage
track record in the industry
Best MBO/LBO track recordin the industry
Substantial M&A/IPO trackrecordCreating resilient social infrastructure
Leveraging the knowledge we have accumulated thus far by investing in global infrastructure assets, we will support thedevelopment and construction of infrastructure projects that are essential for the sustainable development of society.

Establishment and management of a fund specialized in equity investment in global infrastructure assets
Mizuho Bank and Asset Management One enteredinto an agreement with Marubeni Corporation toestablish and manage a fund specialized in equity
investment in infrastructure assets outside Japan,
targeting both Japanese and international
institutional investors. Together, the three companies
established a management company for the fund,with the objectives of making equity investments inprivate-sector led infrastructure assets outside Japanand building a portfolio of such assets. The fund will
invest in the transportation infrastructure and energy
infrastructure sectors, with the goal of expanding
capital managed by the fund to a maximum of 50
billion yen. By working proactively as a unified group
to invest in infrastructure assets outside Japan, we
will contribute to infrastructure development aroundthe world.

43

Mizuho Financial GroupOrganizational outline
Marubeni Corp.
Investment

Mizuho Bank
Investment

AM-OneInvestment

MM Capital Partners
Co., Ltd.
(general partner)
Limitedpartnershipinvestors

Management and operation

Marubeni Corp.
Mizuho Bank
Other investors

Limitedpartnershipinvestment(JPY)
Distributions(JPY)

MM Capital Infrastructure
Fund 1 (Cayman Islands)

Equityinvestment(variouscurrencies)
Distributions(variouscurrencies)

Global infrastructure
projects(outside Japan)Our strategies for creating value Sustainability

As a financial services group, Mizuho will contribute to sound economic growth throughSoundeconomic
growthinitiatives that promote the shift to a cashless society and the strengthening of capital
markets functions, in order to support the sustainable development and prosperity of theeconomy, industry, and society around the world.

Strengthening capital markets functions
By enhancing constructive engagement with investee companies, and focusing on ESG integration, we aim to maximize returns
by increasing the corporate value of investee companies.

Stewardship activities that contribute to the increased corporate value of our clients
Mizuho Trust & Banking and Asset Management One (AM-One) are advancing initiatives which focus on the execution of
their stewardship responsibilities and promote ESG investment.
AM-One is responsible for the various asset management functions distributed throughout the group. The AM-One
Responsible Investment Department, created along with the establishment of AM-One in October 2016, is active in theexercise of its voting rights, as well as constructive engagement with investee companies on environmental, social, andgovernance (ESG) topics. AM-One encourages ESG integration—via which ESG elements are incorporated in investment
processes—through initiatives such as the establishment of the Strategic Fund for ESG Engagement of Japanese Equities
in July 2018. In August 2018, AM-One published a report detailing its stewardship activities. Regarding its activities outsideof Japan, in December 2018, AM-One signed the UK Stewardship Code and acquired Tier 1 status, the highest statusprovided by the UK Financial Reporting Council to signatory institutions.

Promotion of ESG investment in investment chains
Investment capital
Investors
Activeinvestment offinancialassetsIndividuals

Companies

Managementcompany

Mizuho Trust &BankingEngagement/Exercise
of voting rights

Outsource / Due diligence

ESG integration

Increase returns

Increase in corporate
value

Pensions

Engagement with a focus on ESG issues
ESG topics we focus on
Climate change
Human capital management
Regional revitalization
Supply chains
Circular economy

Responsible
investing

Investee company awareness of
relevant issues
Preliminary surveys and analysisof ESG issues
Identifying and sharing of ESG
issues(using specialized materials)

Investeecompanies
Businessstrategy
includingresponses to
ESG issues
Large
companies

Middle-market
companies

ESG integration
Increase returns by integrating ESG elements in asset
management processes

ESG-based evaluation program
Risk aspects

Opportunity aspects
Interrelated
aspects

Discussion aiming for resolutionof issues

Contributing to increasing
the corporate value of clients

Understanding factors withpotential to hinder sustainablegrowth and preventing
materialization

Capitalizing on opportunities toearn revenue by resolving social
issues2019 Integrated Report44Our strategies for creating value

Sustainability
Environmental
considerations

It is essential for companies to ensure due consideration for the environment as they
engage in their regular business activities, including addressing climate change, andencouraging recycling and the conservation of biodiversity. We leverage our expertise as a
global financial services group to provide financial products, services, and consulting tosupport the environmental initiatives of our clients.

Stable energy supply and addressing climate change
For many years we have been actively involved in financing projects that generate renewable energy in Japan and around theworld, as well as the support of environmental and energy-related policy. In recent years, we are addressing the diverse needs ofclients in light of increasing interest in ESG topics by leveraging the capabilities of the entire group to provide new products andservices such as green loans, green bonds, and consulting on climate change initiatives.

Financing support for renewable energy projects
Since the feed-in-tariff on renewable energy began in 2012,
Mizuho Bank has contributed to the adoption and spread ofrenewable energy through its financing of numerous
renewable energy projects.

The completed solar power plant in Haramachi-higashi, Minamisoma City

In 2019, a solar power plant began operating in Minamisoma
City—the result of a project finance deal arranged by Mizuho
Bank. Construction of this solar power plant was completed
by installing around 120 thousand solar panels on land publicly
owned by Minamisoma City, an area struck by the 2011
Tohoku earthquake and tsunami, and has a capacity of 32.3
MW (the amount of energy needed to power approximately
10,000 homes).
In addition to contributing to the restoration of disaster-struck
regions, we are also focusing on providing financing foroffshore wind power, which is being hailed as a nextgeneration technology for renewable energy.

Green loan and sustainability loan initiatives
In August 2018, Mizuho Bank signed a green loan
agreement with Japan Excellent, Inc. based on theGreen Loan Principles. The funds from this loan will
be utilized to refinance the funds borrowed toacquire a DBJ Green Building-certified real estate
property. Also, in February 2019, we arranged
financing for a sustainability loan for the Japan
Railway Construction, Transport and Technology
Agency, and through this arrangement we are able
to support the agency’s initiatives on the SDGs.
By fulfilling our role as a financing institution, we willcontinue contributing to clients’ initiatives aimed atenvironmental issues and the SDGs.

45

Mizuho Financial GroupAkasaka Intercity AIR

Hokuriku Shinkansen

Our strategies for creating value Sustainability

Supporting the issuance of sustainable bonds
In 2017, Mizuho Securities set up a sustainablefinance desk, provided financing for the first model
pilot project for green bond issuance promoted by

Underwriting of publicly offered sustainable bonds* in Japan
No. of deals

Monetary amount(¥ billion)

Japan’s Ministry of the Environment, and syndicatedMizuho Financial Group’s first green bonds. Also,28

Mizuho Securities is strengthening its sustainablebond issuance framework as an ESG structuring
agent, including concluding a partner contract with
the Climate Bonds Initiative—an environmental

11

124.3

certification organization—in 2018, forming the3

Sustainable Finance Office in April 2019, supporting
structuring and branding of sustainable bonds, andconducting initiatives to gather information on ESG
topics.

41.1

5.8
FY2016FY2017FY2018*Includes green bonds, social bonds, sustainability
bonds, etc.

Environmental consulting
At Mizuho we leverage our consulting capabilities toEnvironment-related consulting and researchsupport the environmental initiatives of our clients.
Mizuho Information & Research Institute provides
consulting and conducts research on theReports published by Mizuho

6%9%advancement of environmental management and23%

countermeasures for climate change, and provides
advisory services related to ESG risks. In addition toholding a forum in February 2019 covering the20%

FY2018293 cases

Recommendations of the Task Force on Climate-21%

related Financial Disclosures (TCFD), which wasestablished by the Financial Stability Board, we
provide companies aiming to fulfill therecommendations with scenario analysis of thepotential risks and opportunities presented by futureclimate change, and subsequent consulting on

21%

EnergyEnvironmental management
Chemical substances and recycling-oriented society
Climate change
Advisory services regarding ESG risks
Other initiatives such as the publishing of reports

strategy and disclosure of information.

2019 Integrated Report46

Our strategies for creating value

Sustainability
Climate change is closely tied to various economic and social issues, and we recognize that
addressing climate change is an important issue over the medium to long term. As afinancial services group, we are dedicated to holding dialogue with customers and otherstakeholders and fulfilling our consulting role, and will proactively address climate change
and support the shift to a low–carbon society. These initiatives will also be promoted for the
purpose of securing stable energy supplies in countries around the world.

Addressing
climate change

We support the intent and aims of the Task Force on Climate-related Financial Disclosures* (TCFD)’s recommendations and will conduct
initiatives based on the TCFD framework and work toward more advanced disclosure.
*A task force led by representatives of the private sector, established in December 2015 based on recommendations from the Financial Stability Board in order to enhance theavailability of corporate information related to climate change; issued final report in 2017.

Governance e have identified key sustainability areas, including responses to climate change, and incorporated them into ourW
5-Year Business Plan, based on deliberation by our Executive Management Committee and Board of Directors.
These will enable us to advance our sustainability initiatives in line with our strategy.
We have also developed an action plan for staged implementation of initiatives matching the Recommendations of
the TCFD. The Executive Management Committee has deliberated on the action plan, and it has been presented to
the Board of Directors and Audit Committee.

Strategy hen designing our new business plan, we identified climate-related risks and opportunities for each in-houseW
company, unit, and group.
Mizuho recognizes the following risks, opportunities, and impacts on business activities related to climate change,
and based on this will actively promote financial products and services that help mitigate climate change or facilitate
adaptation to it in order to support the transition to a carbon-free society. At the same time, we will conduct
appropriate risk management based on international concerns, trends, and other factors.
Opportunities

Increased business opportunities, including provision of solutions that support customers intransitioning to a carbon-free society, such as financing for renewable energy projects.
Improvement of capital markets and social reputation through appropriate initiatives anddisclosure.

RiskIn terms of climate-related risks, we are taking into account both physical risks andtransition risks.
Our physical risks include operational risk and credit risk related to the possibility of
extreme weather causing damage to Mizuho’s assets (such as data centers) and to
customer assets (such as committed real estate collateral).
Our transition risks include increased credit risk related to investments in and loans toclients who are impacted by their own transition risks in the form of more stringent carbon
taxes, fuel efficiency regulations, or other policies.

Impacts

 sing the definitions from the Recommendations of the TCFD, our energy sector and utilityUsector1 credit exposure comes to approximately 7.2% of our total credit exposure.2
1
2

Scenario analysis
Risk management

Excluding water utilities, nuclear power, and renewable energy.
Total of Mizuho Bank and Mizuho Trust & Banking’s loans, foreign exchange assets, acceptances andguarantees, and committed lines of credit as of March 31, 2019.

 e continue to look into methods for climate-related scenario analysis of physical risks andWtransition risks.

 e recognize the physical and transition risks associated with climate change and have constructed a system forW
addressing these risks through a comprehensive risk management framework that includes credit risk management
and operational risk management.
We are also applying the Equator Principles* and acting in line with our Policies on Specific Industrial Sectors. As
part of this, we are engaging in dialogue with some of our clients in the energy sector and utility sector.
As a financial institution, we are working to reduce climate-related risk for our clients and ourselves by supporting
our clients’ transition to a carbon-free society.
*A financial industry benchmark for determining, assessing, and managing environmental and social risk related to projects that are being
financed.

Indicators andtargets

Targets

CO2 emissions basic unit: CO2 emissions / total floor area(electricity usage at Japanese facilities of Mizuho Financial Group and core group companies)
Long-term target: Reduce by 19.0% from FY2009 levels by the end of FY2030
Medium-term target: Reduce by 10.5% from FY2009 levels by the end of FY2020

Monitoring indicators

Green finance/sustainable finance amounts
Scope 1 (direct) and Scope 2 (indirect) CO2 emissions and energy usage• Scope 3 environmental impact of new large-scale power projects (CO2 emissions) and environmental conservation(CO2 emission reductions)We are continuing to look into setting science-based targets.
••

47

Mizuho Financial GroupOur strategies for creating value Sustainability

Stance on responsible
investment andfinancing

In terms of the social and environmental impact of business decisions andbusiness activity, companies need to consider the expectations of theirstakeholders and ensure that their actions are not only aligned with international
standards but also transparent and ethical. We have established policies onenvironmental initiatives and human rights, and strive to prevent or minimize
adverse environmental and human rights impacts based on the characteristics ofthe services we are providing.

An overview of responsible investment and financing
Provide financing or support for raising capitalMizuho Financial Group (holding company)
Establish Policies on Specific Industrial Sectors (Revise regularly
after establishing in 2018)
Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, andMizuho Americas
Implementing Policies on Specific Industrial Sectors

Financing large-scale development projects
Mizuho Bank
Adoption and application of the Equator Principles (first adopted
in 2003, and readopted in 2006 and 2013 with the second andthird revised versions respectively)

Investment (asset management)
Mizuho Trust & Banking and Asset Management One
Establish and implement policies on the Principles for Responsible Institutional Investors, known as Japan’s Stewardship Code (policies havebeen revised as necessary since their establishment in 2014)

Policies on Specific Industrial Sectors
These policies affirm our commitment to considering environmental and social risks when engaging in business with clients inindustries (such as weapons, coal-fired power generation, palm oil, and lumber) where there is a high possibility that our
involvement with the client could contribute to adverse environmental or social impacts. We will determine whether to extend
credit or assist with capital raising for clients in certain industries after confirming the measures which the client is taking to avoid
or mitigate such risks, and other due diligence as appropriate based on the characteristics of the services we are providing.
Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Americas established structures for these policies andbegan implementation in June 2018. These policies will be periodically revised according to changes in the external environment
and the results of policy implementation, with the aim of enhancing policy management. In May 2019, we revised the policies tocreate tighter standards on our involvement in business related to coal-fired power generation.

Applying the Equator Principles to large-scale
development projects
We recognize that large-scale development projects may haveadverse impacts on the environment and local communities.
Mizuho Bank works together with the project proponents(clients) to identify and conduct appropriate environmental andsocial risk assessments and due diligence for management, asN umber of projects for which contracts have beensigned and the Equator Principles applied*
Europe, the Middle East, and Africa
Americas48

Asia and Oceania

7

required under the Equator Principles.

36
30

At the 2017 annual meeting of the Equator Principles Association,

29

4
2

an agreement was reached to undertake a review of the Equator

25

20

Principles (EPs), working toward version four of the EPs. The
review focuses on four key thematic areas: Social impact and12human rights, Climate change, Designated Countries andApplicable Standards, and Scope of applicability of the EPs.
*The items in this graph are those guaranteed by third parties

FY20168FY20177FY20182019 Integrated Report48

Our strategies for creating value

Retail & Business Banking Company

Individual customers

SMEs

Middle market corporations

To realize the wishes, hopes, and growth of ourcustomers, we will aim to be a partner that helps
retail customers design their lives, and a strategic
partner for corporate clients’ growth strategy andbusiness succession needs.

Masahiro Otsuka
Head of Retail & Business Banking Company

Basic policy
Under our 5-Year Business Plan, we will aim to transition to amore stable revenue base through channel optimization andexpansion into new business areas. Our basic policy is to realize
the wishes and hopes of our retail customers and the continued
growth of our corporate clients, working to build a sustainableretail business which is responsive to the needs of ourcustomers in this new era. By implementing structural reforms

in three interconnected areas—business structure, financestructure, and corporate foundations—we can build a new
business culture which is customer-focused and unique toMizuho. And we can also focus on investing corporate resourcesin a way that enables us to better respond to new business andcustomer needs, creating new value in both finance and nonfinance domains.

Business environment and challenges
In recent years, structural changes in customer needs have been
accelerating. Retail customers are in need of support for
designing their lives in an era of increased longevity. Andamong SMEs and middle market clients, there is increasing
demand for solutions in areas such as growth strategy andbusiness succession, in light of the uncertain businessenvironment. It is essential that we fully respond to thesechanging needs. Also, both customer needs and the financial

industry are undergoing structural change due to advances indigitalization, and a mismatch has arisen in light of ourdependence on a network of brick-and-mortar branches. With
this in mind, we must seek to take advantage of these changes
in customer needs in order to create new business opportunities
while also allocating our finite corporate resources in a way thatenables us to establish a stable revenue base.

Trends in performance
In FY2018, we achieved strong growth in lending, solutions, andother offerings targeting SMEs and middle market clients.
However, due to the challenging market environment and otherfactors, there was not much room for growth in retail investor
AUM revenue.

Under our 5-Year Business Plan, we will implement three typesof structural reform in order to reduce fixed costs and expand
our stable revenue base, aiming to increase Net Business Profitsby ¥150 billion by FY2023 in comparison to FY2018.

(Group aggregate, rounded figures, ¥ billion)

FY2018FY2017
Performance

Performance

Gross Profits

730.0

710.0

Net Business Profits

14.0

11.0

Items

FY2019Targets

FY2021
Targets

FY2023
Targets(20.0)

700.0

690.0

730.0

(3.0)

18.0

100.0

160.0

Year-on-year

Results are based on FY2018 management accounting rules (including Net Gains Related to ETFs), targets are estimates based on FY2019 management accounting rules.

49

Mizuho Financial GroupOur strategies for creating value Retail & Business Banking Company

Key strategies
Related SDGs

Build an optimal channel network

consulting spaces, adopting remote access technology andfocusing on having conversations with customers regarding
how to solve their concerns and challenges and how to realize
their hopes and dreams.

In light of changes in customer needs such as an increase in
online banking transactions, we will position our online andmobile services as the primary channels for every day
transactions and expand the convenient digital services weoffer. At the same time, we will transform branches into

Related SDGs

Strengthen face-to-face consulting
We will aim to be a partner that helps retail customers design
their lives in an age of longevity. We plan to expand our productlineup and our services offering continual/regular advice so that
customers can rely on us as a consultant regarding long-termlife plans. We will aim to be a strategic partner for SMEs andmiddle market clients as they seek to maintain or expand theirbusinesses in an uncertain business environment. By offeringsophisticated solutions as a united group, we can supportclients’ growth and business succession needs.

Related SDGs

Expand into new business domains
Utilizing open collaboration and technology adoption throughalliances with other companies, we will create new value
beyond the traditional boundaries of finance in fields such as
cashless payments and the data business in order to formulate

Balance of assets under management,
number of investment product users¥ trillion

2.55

million users

2.58
46

2.65

Asset inflows at securities companies*(¥ trillion)

FY20164.1

FY2018year-end

1.1

1.2

Mizuho Securities(Retail & Business Competitor
A
Banking Division)Competitor
B

19
18%

FY2016
results

Competitor
C*Prepared based on financial results disclosures of therespective companies.

Highlights

Number

FY20182.0

FY2017
year-end

Number and share of IPOs in which
Mizuho was the lead underwriter*

FY201748

41

FY2016
year-enda new business model aligned to the ways that society and ourcustomers are changing. We will also work to reach newcustomer demographics through alliances and otherpartnerships with IT companies.

18
20%

FY2017
results

Share

21
20%

FY2018results*Prepared based on data from Capital Eye and includes
co-lead underwriter positions, but excludes REITs andglobal offerings.

The path to launching a smartphone bank

In May 2019, Mizuho and Line Corporation jointly launched a preparation company forestablishing Line Bank. We started preparations with the aim of launching a new bank during
FY2020. This smartphone bank will be accessible and easy to use, combining Mizuho’s
extensive financial expertise with Line’s platform which is popular with the digital generation.

Highlights

Strengthening our support for startups

We offer a membership service, M’s Salon, aimed at supporting the growth of startups inJapan which are the drivers of the nation’s future. By drawing on Mizuho’s network, financial
services capabilities, and consulting capabilities we provide a range of support for the startups
who will shape the future, including business matching forums and a variety of seminars.

2019 Integrated Report50

Our strategies for creating value

Corporate & Institutional Company

Large corporations

Financial institutions

Public-sector entities

As a strategic partner for business development,
we are aiming to achieve our vision of collaborativevalue creation and partnerships with our clientsand contribute to the sustainable development ofJapan’s economy, industries, and society.

Akira Nakamura
Head of Corporate & Institutional Company

Basic policy
We support our clients’ business development by providing
investment and financing, brokerage, and consulting services
not only in the financial sector but also in non-financial sectors.
Under the 5-Year Business Plan, in addition to strengthening
our traditional commercial and investment banking functions,
we aim to build new partnerships with our clients by leveraging
our high level of industry insight and discernment to create new
business opportunities and share business risk.

We will also contribute to the sustainable development of theeconomy, industry, and society by creating social value as wellas economic value for our clients through contributions toJapan’s growth strategy, supporting industry transformation,and promoting economic activity mainly in Asian economic
zones.

Business environment and challenges
The global economy is becoming increasingly uncertain due toincreased movements toward protectionist trade policies,
political risks in Europe, and the persistence of geopolitical risks
in the Middle East and East Asia.
In addition to global competition, the business environment ourclients face is becoming increasingly complex as a result of
restructurings and competition that transcends industries, due
in part to technological advances, as well as enhanced corporate

governance frameworks and the implementation of SDG
initiatives.
The role of financial institutions in responding to an increasingly
complex society and the challenges and needs of clients is
becoming more sophisticated and diverse. In light of this, wewill create new value by leveraging our high-level risk-taking
capabilities and by providing solutions that go beyond theconventional boundaries of finance.

Trends in performance
In FY2018, we achieved our targets as Net Interest Income rosedue to an increase in the balance of loans, and fee-based
business grew, driven by large-scale M&A projects. KPIs were
met for DCM and real estate, while there is still room for
improvement for ECM.

Going forward, we will steadily implement the key strategy
under the 5-Year Business Plan with the objective of achieving
FY2023 targets.

(Group aggregate, rounded figures, ¥ billion)

FY2018FY2017
Performance

PerformanceYear-on-year

FY2019Targets

FY2021
Targets

FY2023
Targets

Gross Profits

430.0

470.0

+40.0

460.0

470.0

480.0

Net Business Profits

230.0

280.0

+50.0

240.0

260.0

290.0

Items

Results are based on FY2018 management accounting rules (including Net Gains Related to ETFs), targets are estimates based on FY2019 management accounting rules.

51

Mizuho Financial GroupOur strategies for creating value Corporate & Institutional Company

Key strategies
Related SDGs

Expansion of our business domain
Clients’ business challenges and needs are becoming more andmore diverse and complex, and they are also closely linked tosocial issues such as population decline and environmental
concerns. In response to these challenges, we will contribute to
the sustainable growth of the economy, industry, and society bypooling our banking, securities, and trust banking capabilities tofurther enhance the financial services we provide to our clients,
expand our business scope to include non-financial services,and co-create value with our clients and society.
Related SDGs

Revenue structure reforms
Technological advances are driving innovation and rapidlychanging the social structure and clients’ businessenvironments. In line with these changes, we will revise theservices we provide to our clients in a flexible manner. We will

also build a portfolio capable of withstanding future
uncertainties and credit cycle fluctuations, thereby establishinga product and business portfolio that combines both growthpotential and stability.
Related SDGs

Enhance our business baseWe will build a solid business base to support new businessstrategies.

individual can maximize their skills, and we will improve
productivity by introducing new technologies.

Specifically, we will hire and train personnel with diverse
perspectives and expertise. At the same time, we will transform
our working style to create an environment in which each

We will also continue with our efforts to upgrade our risk
management system and reform our cost structure to build abusiness base that can meet the challenges of the coming era.

Total equity underwriting worldwide(underwriting amount) (rank)

Domestic straight bonds(underwriting amount) (rank)

1
4

FY2016
results

4

FY2017
results

Highlights

4

FY2018results

1

M&A amount (deals related toJapanese companies) (rank)

1

1

2

3

5
FY2019targets

FY2016
results

FY2017
results

FY2018results

FY2019targets

FY2016
results

FY2017
results

6
FY2018results

5
FY2019targets

Resolving social issues through renewable energy projects

We provided financing for a woody biomass power generation project in the Tohoku region ofJapan, leveraging our expertise and client base in the power industry. Biomass power
generation is expected to be a stable energy source because it is not affected by weather
conditions. It is also an environmentally-friendly power source with zero CO2 emissions. We
will continue to support both stable power supplies and decarbonization through renewableenergy initiatives.

Highlights

Measures to reduce the number of vacant houses through therevitalization of the resale market for existing houses

The Tokyo Metropolitan Government established the Registration System for Business Groups
Promoting the Resale Market for Existing Houses and is working to develop a secure market
where existing single-family homes can be bought and sold, and to prevent the city fromfalling into decline due to an increase in the number of vacant houses.
Mizuho is the only registered financial institution under this system, and as part of ourcommitment to promoting the resale of existing houses, we will support the development ofan environment which is conducive to establishing a market that supports the efficient use ofexisting housing.

2019 Integrated Report52

Our strategies for creating value

Global Corporate Company

Americas

EMEA

East Asia

Asia & Oceania

As a strategic partner supporting our clients’ global
business development, we will work with ourclients to realize the potential of the cross-regional
value chain.

Seiji ImaiHead of Global Corporate Company

Basic policy
We will connect clients and capabilities in each region, focusing
on our network in high-growth Asian economic zones and on
our presence in the attractive US capital markets. As a strategic
partner supporting our clients’ global business development,
we will work with our clients to realize the potential of the crossregional value chain.

To respond to structural issues, including an increase in
expenses due to regulatory compliance costs resulting from theintroduction of new Basel requirements and the limitations on
the potential to raise foreign currency funds, we will optimize
our business portfolio with a focus on profitability andsustainability, expand our stable income sources, and streamline
our revenue structure while maintaining our bottom line.

Business environment and challenges
The global economy is continuing to make a modest recovery
overall, led by the strong growth of the US economy. However,
we must remain attentive to factors such as the proliferation ofprotectionist trade policies arising from US-China trade friction,
the political risk developing in Europe, and the geopolitical riskpresent across the Middle East and East Asia. Our business isfacing constraints on future growth in the form of an increase in
expenses due to regulatory compliance costs resulting from theintroduction of new Basel requirements and the limitations on
the potential to raise non-JPY currency funds. Within thisbusiness environment, we view these constraints on future
growth as structural issues and will advance initiatives to build
new business foundations. Specifically, we will increase thefundamental earnings power of our current business base,improve our cost structure, and revise our business portfolio
strategy through selection and focus.

Trends in performance
In FY2018, we recorded strong Net Interest Income due to
steady improvement in our corporate loans and deposits. We
also expanded our non-interest income by capturing large-scale
M&A deals and other business. As a result of keeping down our
expenses outside Japan through stringent cost control, we wereable to achieve our targets for both Gross Profits and Net
Business Profits.
Going forward, we will implement the key strategy of the 5-YearBusiness Plan and aim to achieve our targets for FY2023.

(Group aggregate, rounded figures, ¥ billion)

FY2018FY2017
Performance

PerformanceYear-on-year

FY2019Targets

FY2021
Targets

FY2023
Targets

Gross Profits

340.0

420.0

+80.0

410.0

440.0

460.0

Net Business Profits

90.0

170.0

+80.0

160.0

170.0

180.0

Items

Results are based on FY2018 management accounting rules (including Net Gains Related to ETFs), targets are estimates based on FY2019 management accounting rules.

53

Mizuho Financial GroupOur strategies for creating value Global Corporate Company

Key strategies
Related SDGs

Enhance current business areas and reform cost structure
We will continue to provide consulting and support for ourJapanese corporate clients’ global expansion and to pursue our
Global 300 strategy of focusing on about 300 blue-chip
corporate groups worldwide. At the same time, we will enhancecross-selling tailored to regions and markets, with an emphasison capital investment, and enhance our current business base.
In order to improve our cost structure, in addition to proactively
leveraging technology, we will move forward with the
optimization of our operational frameworks in each region.
Related SDGs

Expand into new business domains
We will raise our transaction banking capabilities in Asia andstrengthen our client relationships in US capital markets. In thehigh-growth region of Asia, we will capture capital flows both
inside and outside the region, leverage our strong client base,and develop stable business foundations. In North America, wehave achieved a presence in the debt capital market businesssecond only to US financial institutions through our acquisitionof Royal Bank of Scotland assets. With the strengths we havefrom this business, we will expand our client base and productofferings to strengthen our relationships in capital markets.

Reduce low-return assets
We will look into scaling back businesses that have low returnor low potential for improvement. With these cuts to the stock
variables of our “stock and flow,” we will free up risk-weighted
assets and non-JPY currency resources to invest in new and
Non-interest income outside Japan($ billion)

1.4

1.3

high-return business domains. Through our initiatives tostreamline our revenue structure, we will aim to build an
optimized business portfolio.

Non-JPY deposits ($ billion)

Americas bond underwriting (DCM) ranking
Net Business Profits ($ million)

1.4
172.7

161.6

172

197.7

9th
(4.8%)FY2016
results

FY2017
results

FY2018results

FY2016
results

FY2017
results

FY2018results

Mizuho Bank and principal subsidiaries, including
central bank deposits. Global Corporate Company
management accounting basis.

Highlights

FY2016
results

166

10th(3.6%)FY2017
results

Ranking (share)161
8th(5.4%)FY2018results

Investment-grade bonds worth $250 million or moreissued by companies in the Americas.
Source: Dealogic

Our Global 300 strategy is yielding positive results

Seeing that the global media industry was moving toward consolidation of communications
and content, we acted to be one of the primary banks in a large-scale, representative M&A deal.
This allowed us an opportunity to exercise our advantages in the telecom, media, andtechnology field, as well as to apply our Global 300 strategy, which is aimed at pulling in morefinancing deals. Going forward, we will continue striving to reach an even higher level as a
global player.

Highlights

Opening of a new Mizuho Securities office in Frankfurt

Mizuho Securities has established Mizuho Securities Europe GmbH in Frankfurt, Germany as a
subsidiary of our United Kingdom-based subsidiary Mizuho International plc. Mizuho
Securities Europe began operating in March 2019 and will ensure service continuation andstability for clients in Europe and around the world, regardless of the progress of Brexit
negotiations.

2019 Integrated Report54

Our strategies for creating value

Global Markets Company

Investors

As a partner with expert knowledge of market
mechanisms and the ability to draw on a range ofintermediary functions, we will further integrate ourbanking, trust banking, and securities capabilities tooffer the best products and services for our clients’varied needs.

Junichi Kato
Head of Global Markets Company

Basic policy
The Global Markets Company engages in sales and trading inorder to provide clients with market product-based solutions,and we also conduct banking operations, including asset
management and capital raising, securities investment, andother related activities.
In the 5-Year Business Plan, we have set out a basic strategy todevelop a framework for offering products and services ideallysuited for our clients’ true needs, as well as to strengthen ourmarket presence, as part of maintaining our status as one ofAsia’s major players in global markets.

Going forward, we will continue to be a partner with expert
knowledge of market mechanisms and the ability to draw on a
range of intermediary functions. In our sales and trading
operations, by optimizing our global network and products
framework, we will draw on a broad range of intermediaryfunctions to connect investors with other investors and connect
issuers with investors. In our banking operations, we will
enhance the sophistication of our ALM and portfolio
management through flexible asset allocation while maintaining
a focus on achieving a balance between realized gains andunrealized gains/losses.

Business environment and challenges
According to estimates from the International Monetary Fund,with the US Federal Reserve Board refraining from hiking
interest rates and other countries adopting similar monetaryeasing policies, the global economic growth rate remained
steady in the first half of 2019 and is expected to trend upwardin the second half. On the other hand, US-China trade friction,
Brexit negotiations, and other factors continue to create an
uncertain business environment, and the structure of the market
also appears to be undergoing considerable changes due to thetightening of global financial regulatory standards and the riseof digitalization and AI in financial markets.
In this environment, we will strive to consistently respond to
our clients’ increasingly varied risk hedging needs andinvestment needs. At the same time, in our banking operations,
we will enhance the sophistication of our ALM and portfolio
management and aim to maintain our status as one of Asia’s
major players in global markets.

Trends in performance
While financial markets were facing growing uncertainty, we
embarked on a restructuring of our portfolio of non-Japanesebonds and other securities. As a result, our FY2018 Net BusinessProfits came to -¥14.1 billion, falling short of our fiscal year
target. In the 5-Year Business Plan, we have adopted the goalsof advancing the global management of our sales and trading

operations and of improving the risk taking capabilities of ourbanking operations in order to shift to a stable revenue
structure. Through these efforts, we expect to achieve net
business profits of ¥150 billion in FY2019 and of ¥260 billion in
FY2023.

(Group aggregate, rounded figures, ¥ billion)

FY2018FY2017
Performance

PerformanceYear-on-year

FY2019Targets

FY2021
Targets

FY2023
Targets

Gross Profits

390.0

190.0

(200.0)

370.0

390.0

480.0

Net Business Profits

190.0(14.0)(204.0)

150.0

180.0

260.0

Items

Results are based on FY2018 management accounting rules (including Net Gains Related to ETFs), targets are estimates based on FY2019 management accounting rules.

55

Mizuho Financial GroupOur strategies for creating value Global Markets Company

Key strategies
Related SDGs

Enhance sales and trading operations by advancing global managementthat we have developed through our commercial banking
business to further focus on and expand our securities business.
In doing so, we will facilitate the realization of a positive cycleof funding between financial market participants and raise our
global market presence.

To respond to our clients’ true needs, in addition to our ongoing
integration of banking, trust banking, and securities services,
we will advance the global management of each of our
products, improving our price competitiveness and ability toprovide solutions. We will also leverage the broad client base

Related SDGs

Enhance the sophistication of our ALM and portfolio management in our banking operations
We will enhance the sophistication of our ALM and portfolio
management both by enhancing our early warning indicator
management to anticipate changes in market conditions inadvance and by optimizing diversification of investment into
interest rates, equity, credit, and other areas based on market
conditions. We will also speed up our decision-making

processes through digitalization. These efforts will enable us to
improve our earnings power while also restraining volatility inthe revenue from our banking operations. In addition, withstable capital raising and balance sheet management, we willcontinue supporting our clients’ global business and positively
contributing to Mizuho’s overall business strategy.
Related SDGs

Build markets infrastructure and develop digital innovation professionals

infrastructure, reduce our costs, and maintain and heighten ourcompetitiveness. Moreover, we will further accelerate ourinitiatives to streamline our operations by improving our
employees’ digital literacy and utilizing robotic process
automation.

In order to continue providing high quality services to ourclients in the future, we will allocate our corporate resources
strategically towards building next-generation trading rooms,
market IT systems, and market back offices in line withtechnological advancements. In this way, we will upgrade ourSales & trading-related revenue(With FY2017 results as 100)

100

106

108

Volume of Asian/emerging market
currency transactions(With FY2017 results as 100)

100

106

Institutional investor equity trade share (%)

111

5.3

5.4

FY2018results

FY2019targets

4.7

FY2017
results

FY2018results

Internal management accounting basis

Highlights

FY2019targets

FY2017
results

FY2018results

Internal management accounting basis

FY2019targets

FY2017
results

Calculated by Mizuho Securities based on trading datafrom each section of the Tokyo Stock Exchange

AI and digital innovation initiatives

In collaboration with NTT Communications, we have developed a voice input system that uses
speech recognition, text mining, and robotic process automation to automate entry of market
product transaction data. We have already begun using this tool to streamline our banking
operations. Going forward, we will aim to make further improvements through operational
excellence, optimize and upgrade our operations, and establish a sustainable competitive
advantage.

Highlights

Automatic entry ofimportant spoken
information
Speechrecognition
system foragreements

System for
identifying
important
information

Transaction
management
systemRobotic
process
automation

First Japanese bank to issue US dollar-denominated CD linked to SOFRIn February 2019, we became the first Japanese bank to issue a US dollar-denominatedcertificate of deposit (CD) linked to the Secured Overnight Financing Rate (SOFR). SOFR is a
new US dollar reference rate that the Federal Reserve Bank of New York began publishing in
April 2018 as an alternative to USD LIBOR, which may soon become unavailable. Financialtransactions using SOFR are expected to increase. We will continue to positively contribute to
US financial markets with our products, develop insight and knowledge about new reference
rates, and support our clients in raising capital.

2019 Integrated Report56

Our strategies for creating value

Asset Management Company

Investors

In an era of lengthening lifespans, we will support
customers’ medium- to long-term asset formation
to contribute to growth in financial assets in Japan
as part of a unified group.

Goji Fujishiro
Head of Asset Management Company

Basic policy
centered on business process and IT system integration, andthe implementation of operational process reforms utilizing
digital innovation. We will contribute to growth in financial
assets in Japan by shifting to a high capital efficiency structure
for our asset management business and working together with
Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, andAsset Management One, to support customers’ medium- tolong-term asset formation.

Our basic policy is to raise the added value of our asset
management business to meet the changing needs of ourcustomers by strengthening our investment capabilities andability to provide solutions, and by developing products andproviding services in line with our customers’ medium- tolong-term asset formation needs as we enter an age of
longevity. In addition, we will enhance cost control by
establishing an efficient and robust business base through thedevelopment of organizational integration management

Business environment and challenges
As the environment surrounding our asset managementbusiness undergoes major changes, such as longer life spans,the continuing low interest rate environment, and the spread of
digital devices, customer needs are also changing. For retailinvestors, we believe that asset management services for asset
formation for the future are still in the developmental stage
amidst this age of longevity. High-level consulting capabilities
are needed to respond to the increasing diversification ofpension plans and investment solutions for pension funds andother clients who play an important role in people’s ability to
prepare for retirement. On the investment side, as we continue
to find ourselves in a difficult investment environment due tonegative interest rates, institutional investors are expecting us
to provide high added value. In light of this, we will need tofurther improve our investment capabilities by offering
alternative investment strategies and utilizing technologies,
such as AI and big data.

Trends in performance
In fiscal 2018, we generated a net inflow in publicly tradedinvestment trusts designed for long-term investment. However,
Net Business Profits fell short of our targets as a result of adecline in market value due to worsening market conditions
and outflows from products designed for institutional investors.

In the future, we will aim to achieve our targets under the 5-YearBusiness Plan by strengthening our operational capabilities
through a process of selection and focus, placing greater
emphasis on our consulting and solutions businesses, andshifting to a more efficient business structure.

(Group aggregate, rounded figures, ¥ billion)

Items

FY2017
Performance

FY2018PerformanceYear-on-year

FY2019Targets

FY2021
Targets

FY2023
Targets

Gross Profits

50.0

50.0

+0.0

49.0

54.0

60.0

Net Business Profits

17.0

16.0

(1.0)

13.0

18.0

23.0

Results are based on FY2018 management accounting rules (including Net Gains Related to ETFs), targets are estimates based on FY2019 management accounting rules.

57

Mizuho Financial GroupOur strategies for creating value Asset Management Company

Key strategies
Related SDGs

Focusing on asset management services for an age of longevity
In order to support our customers’ life plans and goals in termsof asset management, we will focus on product development,
including those for customers with little prior experience ofinvesting, and providing solutions such as fund wraps. In
addition, we will raise awareness of the importance of asset
formation by offering defined contribution corporate pensions

and individual-type defined contribution pension plan (iDeCo)
services, as well as disseminating educational materials on
investing. We will also actively support distributors, byproviding online content and other support in order to help
drive the financial asset market.
Related SDGs

Selection of and focus on solution services with high customer demand
As customers’ needs shift to investment strategies that offset
lower interest rates and minimize the impact of market
conditions, we will focus our corporate resources on alternative
investments, such as real estate and loans, and on absolute
return strategies. For clients such as pension funds andinstitutional investors whose needs are diversifying, we haveestablished specialized departments in Mizuho Trust & Banking
and Asset Management One that focus on providing
comprehensive consulting and solution services.
Related SDGs

Shifting to a more efficient business structurerevise our current operations in each department of the AssetManagement Company by introducing automated processes
that utilize technologies, such as RPA, in order to improve
operational efficiency and raise productivity and added value.

We will optimize operations by completing the integration ofbusiness processes and IT systems in order to maximize theprofitability of Asset Management One, where corporate
resources related to the group’s asset management functions
have been consolidated. In addition, we will fundamentally
Publicly traded investment trust assets
under management balance (¥ trillion)

6.6

FY2017
results

Highlights

6.9

7.3

Defined contribution corporate pension
assets under management balance (¥ trillion)

1.74

1.60

1.85

Number of individuals enrolled inindividual-type defined contribution
pension plans (iDeCo) (thousand)

163

120
79

FY2018results

FY2019targets

FY2017
results

FY2018results

FY2019targets

FY2017
results

FY2018results

FY2019targets

Launch of long-term asset formation fund targeting individuals

In July 2018, Asset Management One introduced a JPY-denominated principal-protected
investment trust, the first of its kind in Japan,* for which net assets exceed ¥200 billion. We
are confident that this fund will contribute to more active investment in Japan as many of theinvestors in the fund are first-time investors. Mizuho will continue to provide asset
management services that support the asset formation of individual investors.
*Based on analysis by Asset Management One, this is the first publicly traded principal protected investment trust in Japan with aguarantee period of 10 years.

Highlights

Launch of global infrastructure debt fund

Asset Management One Alternative Investments, a subsidiary of Asset Management One
specializing in alternative investments, has launched an infrastructure debt fund. The fundprovides investors with attractive investment opportunities and invests in infrastructure
projects that are essential for the sustainable development of the countries and local
communities they are located in. We will continue to provide excellent investment
opportunities by leveraging the strengths of the group.

2019 Integrated Report58Our strategies for creating value

Global Products Unit

Investment banking

Transaction banking

We aim to leverage our sophisticated expertise asa team of specialists as we continue offering
optimal solutions that are aligned with client needs.

Goji Fujishiro
Head of Global Products Unit

Basic policy
At the Global Products Unit (GPU), our activities are primarily
divided into two areas, investment banking and transaction
banking, and we provide a wide range of solutions for ourclients including M&A, real estate, and project finance, as well
as settlement in Japan and globally, cash management, andtransfer agency services.
By drawing on the sophisticated expertise of the banking, trust
banking, and securities functions of the group, we will continue

addressing the needs of clients and investors, while supporting
the strategies of in-house companies and the Mizuho group asa whole to increase our stable earnings power.
In addition, we are aiming to improve productivity andefficiency by endeavoring to achieve optimal allocation of
corporate resources and review stock variables (in terms ofstock and flow) without being constrained by establishedconventions.

Business environment and challenges
As uncertainty in the global economy rises, price fluctuation risk
continues to increase for stocks, bonds, real estate, andcommodities. Also, the business environment that our clientsare faced with is shifting at a rapid pace, with Fintech and otherforms of technological innovation bringing new developments
on an almost daily basis.
Confronted with this business environment, at the GPU we arefocusing our attention on leveraging our sophisticated expertise

as we continue offering optimal solutions that are aligned withclient needs.
Specifically, by utilizing our financial product expertise to takemeasured risks, and by further advancing the originate-todistribute model taking the perspectives of investors into
account, we will support the financial product aspects ofMizuho’s strategy, and contribute to solutions for issues that are
faced by clients and society.

Key strategies
Providing effective solutions across banking, trust banking, securities, and other group companies
In order to provide the best support for value chains that create
added value and contribute to increased corporate value forclients, we will further deepen our collaboration with financial
product departments throughout the banking, trust banking,and securities entities and our other group companies tocontinue to provide solutions as a united group.

For example, we aim to develop a deep understanding of thebusiness strategies of our corporate clients based on eachcompany’s development stage, from discussions on their
growth strategy to financial and management strategies andexit strategies, and aim to provide optimal solutions drawing on
the strengths of the entire group.

Enhancing our global operating framework and honing financial product expertise
Against the backdrop of Japan’s aging population and declining
birthrate, and the growing presence of Asia as a global player,clients are accelerating their global operations, and we aim toaddress these needs by enhancing Mizuho’s services on a
global basis.
We will boost collaboration between offices to support ourclients, especially for cash management, settlements, and other59

Mizuho Financial Group

Related SDGs

Related SDGs

transaction banking services, as well as services in the field of
project finance.
Also, in order to bolster our capacity to provide solutions to ourclients, we are working to strategically develop a larger pool of
specialists to further increase our financial product expertise.

Our strategies for creating value Global Products Unit

Related SDGs

Expansion into new business areas
In order to address client needs which are diversifying andbecoming more complex, and to support clients in resolving
issues, Mizuho must create and provide solutions beyond thoseoffered in our existing financial product line-up.

Principal accomplishments in investment banking

Our unit is making use of digital technologies which areadvancing day by day, and endeavoring to expand business in
new fields to capitalize on recent trends.

Principal accomplishments in transaction banking
FY2018 results

FY2018 results
1

Syndicated loans

No. 1

CustodyNo. 14

Japan publicly offered bonds(industrial bonds & electric power bonds)

No. 12CMS

No. 15ABS lead underwriterNo. 13

Trade finance

No. 16

1. Amount basis, bookrunner basis
2. Underwriting amount basis, excluding our own bonds
3. Amount basis, asset-backed securities

Highlights

4. Holding and managing securities for securities investments.
Mizuho won first place in custody bank survey rankings (in the Japanese market) in
Global Custodian magazine.
5. Mizuho won first place in the Cash Management Service (CMS) ranking survey ofEuromoney magazine (in the Japanese market).
6. Global Trade Review awarded Mizuho the “Best trade finance bank in East Asia & thePacific” award.

Awards in transaction banking

Among the various solutions Mizuho provided to clients in the field oftransaction banking in FY2018, our initiatives in trade finance and custody wereparticularly highly evaluated, and we received awards from industry magazines.
In trade finance, Mizuho Bank won the award for best trade finance bank in East
Asia and the Pacific among Global Trade Review’s choice of Leaders in Trade. Our
sophisticated product development and dedicated service, as well as customized
product offerings addressing the needs of major players throughout the region,
were critical factors in receiving this prestigious regional award for the third
consecutive year.
In custody, at the Global Custodian’s Leaders in Custody Awards hosted in March
2019, Mizuho Bank was awarded the Asia-Pacific region Best RelationshipManagement and Client Service Award, as well as the Continued ExcellenceAward for Asia-Pacific, a special honor presented to banks in each region thathave consistently outperformed in Global Custodian surveys, as a way ofcommemorating the 30th anniversary of the Leaders in Custody awards. Mizuho
Trust & Banking (Luxembourg) was also honored with the Best Global Custodian
Network Team Award.
We will strive to improve the standard of our services, supporting the growthstrategies of clients who are expanding globally, and enhance our asset
management support for investors.

Highlights

Receiving the trade finance award

Leaders in Custody Awards

Establishment of JTC Holdings

In October 2018, Trust & Custody Services Bank (TCSB) and Japan Trustee
Services Bank (JTSB) established JTC Holdings (JTCHD) through a joint sharetransfer.
The purpose of this integration is to realize more stable and higher quality
operations and to strengthen IT system development capabilities byconcentrating TCSB’s and JTSB’s corporate resources and expertise, and seeking
to leverage the benefits of scale, thus contributing to the further growth of thedomestic securities settlement market.
Together, JTCHD, JTSB, and TCSB form an elite Japanese financial groupspecializing in asset administration services, with approximately ¥700 trillion in
assets under custody (including entrusted assets of approximately ¥400 trillion).

JTC Holdings,
Ltd.

Trust & Custody
Services Bank, Ltd.
Japan Trustee
Services Bank, Ltd.

Custody Bank of Japan, Ltd.
Note: Contingent on approval from the relevant authorities.

These entities will continue adapting to changing client needs and providing
optimal solutions based on our sophisticated expertise.

2019 Integrated Report60

Our strategies for creating value

Research & Consulting Unit

Fulfilling our role as a knowledge navigator byco-creating value with clients and society, whileaiming to make Mizuho a stronger and more
resilient financial group.

Motonori Wakabayashi
Head of Research & Consulting Unit

Basic policy
Against the backdrop of structural shifts including digitalization,
an aging population with a declining birthrate, andglobalization, we are working to implement structural reforms
in three areas—business structure, finance structure, andcorporate foundations—by utilizing our expertise andorganizational knowledge, while addressing the diversifying
needs of clients to strengthen value chains both inside andoutside our unit.
For our business structure reforms, we will focus our attention
on four areas: enhancing the sophistication of research,enhancing consulting, the active use of IT and digitaltechnologies, and revising client channels.

For the finance structure reforms, we are working to optimize
our operations and resources to better align with the businessconducted by each in-house company and their needs, inaddition to our unit’s independent business.
And thirdly, for the corporate foundations reforms, we areworking to strengthen the capabilities of our personnel toresolve a range of client issues drawing on the strengths of theentire group, in addition to increasing productivity throughefforts such as accelerating the integration of operations within
the unit.

Business environment and challenges
In addition to structural shifts in society such as digitalization,
an aging population with a declining birthrate, andglobalization, and as the state of the economy in Japan andaround the world grows increasingly uncertain, clients continue
to face a range of issues which our unit’s strengths can beleveraged to resolve.
For example, as clients expand into new business fields andgeographical regions, our unit’s industry expertise and globally

focused research can provide clients with new management
and business strategies, setting Mizuho apart from thecompetition as a strategic partner.
As a trusted partner sharing knowledge with our clients andsociety, we are committed to working together to create newvalue including in spaces that span finance and non-financedomains.

Key strategies
Enhance the sophistication of research
By conducting thorough research and origination with a clear
sense of purpose, we contribute to strengthening Mizuho’s
earnings power as well as our brand and reputation.

Enhance consulting
By broadening the scope of our consulting services to include
new offerings such as cross-sector support and digitalconsulting, we are increasing the underlying value of ourconsulting services. At the same time, we are bringing a61

Mizuho Financial Group

Related SDGs

For this purpose, along with effectively consolidating thegroup’s research functions to bolster our fundamental researchcapabilities, we will expand our origination capabilities tocapture research-related business in priority areas and new
business areas linked to in-house company strategies.
Related SDGs

value-chain-based model of consulting to reality, which enables
us to leverage our consulting services to generate business forthe entire Mizuho group.

Our strategies for creating value Research & Consulting Unit

Related SDGs

Active use of IT/digital
We are driving the digital transformation of clients and Mizuho
itself by leveraging the digital technology expertise of our unit.
Along with promoting the digitalization and data-based
business of our clients and improving the digital literacy of all

Mizuho employees, we are committed to developing andsupporting tech-savvy personnel who will lead the next
generation.

Related SDGs

Revise client channels
In the interest of relaying to our clients and society the newvalue created by our unit through enhancing the sophisticationof our research, enhancing consulting, and actively using IT anddigital technologies, we will deepen our one-on-one approach

Highlights

for individual clients, advance our Mizuho Membership One
membership service, and reinforce collaboration between ourunit and frontline offices.

One Think Tank Report: “Rapidly changing US trade policy and its impact on the world economy”

In the One Think Tank Report, which condenses our unit’s knowledge andexpertise on major global trends and the latest topics, we covered the impactthat US trade policy is having on the global economy. The report includes
insightful analysis of potential scenarios for the global economy going forward
and the impact that US trade policy could have on Japanese companies. We
have received positive feedback from many clients saying that the report has
been helpful for formulating management and business strategies. We willcontinue publishing such reports to facilitate problem solving at clientcompanies.

Highlights

Mizuho Business Succession Seminar

With the increasing public interest in the topic of business succession in Japan,
Mizuho Bank, Mizuho Trust & Banking, and Mizuho Research Institute held ajoint seminar for clients including those business owners who will require asset
or business succession, and the seminar was attended by many clients. At theseminar, we outlined and explained key points for utilizing the businesssuccession taxation scheme, which underwent significant revisions in FY2018,
and covered management succession issues including how to evaluate andselect successor candidates. We explained these matters in a practical andstraightforward manner based on our experience cultivated through priorbusiness succession consulting.

Highlights

Mizuho Information & Research Institute booth at CEATEC Japan 2018

Mizuho Information & Research Institute (MHIR) exhibited a booth at CEATEC Japan 2018,
which was held at the Makuhari Messe convention center from October 16–19, 2018. Many
attendees visited the booth to see exhibits featuring concepts of everyday life in the coming
decades and demonstrations of underlying technologies, including a “personal AI secretary”
utilizing voice recognition to identify users and answer questions according to the user, anda cosmetics simulation which enabled visitors to try out different types of makeup on screen
using image processing technology. Also, at a panel session and seminar, examples of
AI-related initiatives and R&D being conducted by MHIR were introduced, and we
exchanged ideas with visitors from a variety of industries to achieve digital transformation
through partnerships both inside and outside the Mizuho group.

2019 Integrated Report62Foundations for our corporate value

Employee engagement

Adopting a new HR strategy
With the aim of transitioning to the next generation of financial services we are implementing forward-looking structural reforms
which include corporate foundations reforms, part of which involves the transformation of our workforce.
We have formulated a new HR strategy where each individual designs their own career plans, leading to higher ambition andmotivation and enhancing employees’ universally recognized value. By putting in place a support system for career design andencouraging employees to take ownership, be independent, and take on new challenges, we can build a mutually beneficial
relationship between employees and the company where the growth of one leads to the growth of the other.
As society and our customers’ needs undergo major changes, we must go beyond the conventional boundaries of finance in orderto forge new partnerships with our customers. In order to do this, we will need to enhance the expertise and skills of our personnel.
Additionally, in Japan, workers’ perspectives are shifting away from the assumption of “lifetime employment” where one belongs to
a company for the rest of one’s career, to “lifelong profession” where one belongs to a professional field, and the focus is on
increasing one’s individual value.
Our new HR strategy responds to these changes in customer needs and employee perspectives, transitioning from a model where
the source of competition is limited to within the company to one which prioritizes employees’ professional growth and career
preferences, seeking to enhance their universally recognized value.

New HR strategy

Shift from a model where the source of competition is limited to within the company to a model prioritizing employees’ professional growth and career preferences

Basic policy

Career design encouraging employees to take ownership,
be independent, and take on new challenges

One-track career building and talent development

Learning

Mandatory retirement

Employees design their own career plans,
Work XX years

leading to higher ambition and motivation

Growthand enhancing employees’ universally

Work X years

recognized value

Cycle of lifelong
learning and growth

Challenge

Work

Start

Initiatives
Upgrading our talent development platform

Expanding opportunities to take on new challenges

Fostering a creative and attractive workplace

Upgrading our talent development platform
Personalized development
In order to strengthen employees’ skills
and expertise through highly effective
development, our new framework will provide
training and educational content based oneach individual’s needs and career aspirations,rather than their seniority or other such
employer-determined categories. We will alsoutilize AI to provide each individual with

83

Mizuho Financial Group

personalized recommendations for training
and educational content.
These initiatives will encourage employees totake ownership of their careers, increase theirmotivation to learn, and provide learning
opportunities regarding career design to abroader range of age groups.

 ducational seminars forE
employees (FY2018)
	Number of people enrolled in
online courses

13,604(+2,100 YoY)

Foundations for our corporate value Employee engagement

Development programs drawing on employee knowledge and external, open source content
We will shift our method of selecting training and educational
content from a Company-to-Employee (CtoE) method where
the company selects content and provides it to employees, toan Employee-to-Employee (EtoE) method where employeerecommended and employee-created content is proactively used.
Additionally, in light of the broad range of fields that ouremployees are interested in studying, we will upgrade ourlearning platform in order to make it easier for employees tostudy anytime, anywhere, in addition to providing access tomassive open online courses (MOOCs).
We will also work with external partners to provide opportunities
for employees to gain knowledge regarding the latest
technologies, including enhancing digital literacy.
Mizuho-IBM Digital Conference for employees

Promoting employee resource groups (ERGs)
ERGs enable employees to connect across organizational,
national, gender, and cultural boundaries and to shareknowledge and experience and proactively learn from one
another. This results in increased motivation and opportunities
for each individual to achieve professional growth. By
supporting ERGs which span across different group companies

and national borders, we hope to encourage connectivity
among employees in different organizations and regions,enabling them to expand their perspectives, leading to new
ideas and discoveries which benefit our business and contributeto corporate growth. Currently over 3,000 employees aroundthe world are members of Mizuho ERGs.

Key ERGs at Mizuho
Mizuho Women’s Initiatives Network (M-WIN)• A global network for promoting women’s empowerment at Mizuho.
Mizuho LGBT+ & Ally Network (M-LAN)• A network aiming to raise awareness and increase understanding of diversity as wellas promote inclusion within the workplace and the services we provide.
Mizuho Global Communication & Connectivity Club (MGCC)• A network promoting the globalization of Mizuho by providing a platform for communication and connectivity.
Collaboration, Creation, Relation, Evolution (CocreA)• A network whose mission is to effect change within Mizuho through co-creation using
technology.

Expanding opportunities to take on new challenges
Expansion of internal job postings
We are confident that an effective way to increase employees’ ambition
and universally recognizable value is to increase the quality andquantity of opportunities for employees to work in different fields and indifferent locations throughout Mizuho’s global business, taking on new
challenges in order to achieve the career they envision for themselves.
In order to achieve this, we have expanded our existing internal job
posting system to include opportunities for employees to apply toopen positions on a project basis, including projects such as our
joint venture with Line and J-Coin Pay. As a result, the number ofapplicants more than doubled over the five-year period from FY2014.
We are also launching a dual appointment program which provides
opportunities for employees to be involved in other roles or projects
they are interested in while maintaining their primary duties. Together
with support for employee growth and independent career design,these initiatives are aimed at fostering innovation through the fullengagement of our diverse workforce.

Number of applicants for internal job postings

Line*

J-Coin*(people)

774

365

384

427

496

522

184
68
FY2014FY2015FY2016FY2017FY2018*External projects

2019 Integrated Report84Foundations for our corporate value

Creating opportunities to take on challenges and contribute outside the company
appointment program where employees can work
By providing opportunities for employees to takein external roles part time while maintaining theiron challenges and contribute outside theposition at Mizuho. Also, we will expand ourcompany, we are aiming to provide employees
seminar offerings to include more opportunities
with the chance to achieve professional growth
for networking with diverse professionals fromand gain external insight. In addition to expanding
outside Mizuho as well as support other external
the internal job postings that employees can apply
network-building activities, including connecting
for to include more opportunities both within andwith former Mizuho employees.
outside the company, we also will start a dual

Fostering a creative and attractive workplace
Enhancing incentives based on individual job duties and results
We will shift to a flexible compensation model
we will roll out attractive incentives morethat is more focused on job duties, placing anstrongly linked to results and medium- toemphasis on each individual’s current
long-term corporate value enhancement as aperformance and expertise rather thanmeans of drawing out employees’ motivation
seniority or years of experience. Additionally,
and ambition and encouraging proactivity.

Mizuho received 4.5 stars on
the Nikkei Smart Work Survey.

Achieving a more flexible working style
In addition to the flexible work arrangements wealready offer such as flextime and staggered
work hours, we will introduce free address work
spaces and expand other options such as remotework. We believe this is key to ensuring diversity
within the organization, further cultivating
employees’ creativity, and enabling them to bethemselves-all of which leads to enhanced
productivity. We are also aiming to create a work
environment that encourages healthy andefficient working styles by focusing on eliminating
overwork. Going forward we will continue topromote tailored labor management practices inpartnership with industrial physicians.

Diversity and inclusion
KPIs

Mizuho received Platinum Kurumin certification in recognitionof our significant efforts to implement and maintain systems
that assist workers in balancing
work and childcare.

Area

Numerical target

Percentage of management positions filled by women(aggregate for general manager and manager
equivalent positions)1

20%

Area
Percentage of management positions filled by
employees hired outside Japan2
Percentage of new graduates hired for management
track jobs who are female1
Percentage of paid annual leave taken by employees

1Percentage of eligible male employees who takechildcare leave1

To be achieved by Current (July 2019)
July 2024

15%

Level to be maintained

Current (FY2018)

65%

65%

30%

32%

70%

78%

100%

100%

1. In Japan (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)
2. Outside Japan (aggregate for Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)

Mizuho was recognized on the2019 Bloomberg Financial Services Gender-Equality Index.

85

Mizuho Financial GroupWe aim to proactively incorporate theperspectives and ideas of our diverse workforce
into our everyday work, strategic planning, anddecision-making in order to create new value.
We are committed to valuing the voices ofwomen, non-Japanese nationals, individuals

with disabilities, individuals who identify as
LGBT, and other diverse groups.
By integrating diversity and inclusion into
every aspect of our HR strategy and continuing
to set KPI for key areas, we are working to fully
engage our diverse workforce.

Foundations for our corporate value Employee engagement

We are promoting career development andadvancement for women in particular by offeringa strategic development program. One of our key
objectives is to develop more female candidates
for senior leadership roles (general manager
equivalent positions and above) and so we arestrengthening career development support byproviding assignments and promotions in linewith individualized development plans.

In order to ensure that women can continue todevelop their careers throughout different life
events, we offer programs to support working
parents and caregivers, remote work options,and other support systems that enable diverseand flexible work arrangements. Additionally, we
are working to change mindsets throughout theorganization via a range of initiatives, including
encouraging men to take childcare leave.

Mizuho received the top ratingof “Gold” on the PRIDE Index
which evaluates LGBT-related
initiatives.

Strategic development programs for female employees
General manager
equivalentManagerequivalentSupervisor
equivalent(under Supervisor
equivalent)

Cultivate an executive management
perspective in future executive
leader candidates
Aim to accelerate professional
growth by transforming participants’mindsets regarding their careers
While cultivating their career
perspective, enhance eachindividual’s strengthens throughevaluations and assignments• Strategic assignments• Coaching• Career development support
seminars• HR management tailored to theindividual (including transforming management mindsets)• Meetings with female careeradvisorsCompany-led initiatives

Promoting employee health and wellness
By promoting employee health and wellness,
we are aiming to enhance the performance ofeach individual and increase the productivityof the organization as a whole. We are working
to cultivate a healthy work environment and topromote employee awareness regarding
health, for example by providing subsidies thatencourage employees to undergo preventative

M-WIN
A network for
women working
at Mizuho• Network expansion• Access to role

In recognition of our efforts topromote women’s empowerment in the workplace, Mizuho
received Nadeshiko Brand designation for 2019, conferred jointly
by the Tokyo Stock Exchange andJapan’s Ministry of Economy,
Trade and Industry.

modelsEmployee-led
initiatives

health checks. In fiscal 2018, 99% of employees
took an annual medical exam and 95% took astress assessment. Additionally, Mizuho wasrecognized under the 2019 Health & Productivity
Stock Selection based on having put in place anumber of strategies, including those aimed at
encouraging employees to monitor their healthstatus and enhance their health literacy.

Mizuho was selected underthe 2019 Health & Productivity
Stock Selection, which is jointly
administered by the Ministryof Economy, Trade and Industry
and the Tokyo Stock Exchange.

Our HR strategy
We aim to provide equal opportunity for employees regardless of their nationality, ethnicity, gender, or values,
to exercise their abilities to their maximum potential. As we aim to transition to the next generation of financial
services under our new business plan, we must put an increased focus on diversity and inclusion and make acontinual effort to enhance creative thinking throughout the organization. At the same time, mental and physicalhealth are essential for each individual to be fully engaged at work. Therefore, continuing to strengthen employee
health management and other such initiatives is a key aspect of ensuring Mizuho’s sustainable growth.
Adopting a new HR strategy
We have adopted a new HR strategy as part of the corporate foundations reforms
under our new business plan. This is an ambitious undertaking in which we areaiming to fundamentally shift our HR management practices to no longer besingle-track and insular but rather to emphasize each individual’s ambition andindependence, supporting them in enhancing their universally recognizable value.
Our talent development is focused on shaping our workforce to meet the needsof the coming era and ensuring that our employees cultivate the capabilities
they will need in order to have lifelong, active careers. At the same time we areworking to attract top talent to Mizuho and achieve growth. Together these efforts
will enable us to build a stronger and more resilient financial group, which will inturn enhance our talent development and acquisition, creating a virtuous cycle.

Hiroaki Ehara

Group Chief Human Resources Officer

2019 Integrated Report86Foundations for our corporate value

Compliance with international financial regulations

Globaldevelopments

The Basel Accords, an international regulatory framework for ensuring the soundness of banking institutions, were first created in1988 (and now referred to as Basel I). As the financial services industry has developed, this framework has seen new iterations. The
most recent, Basel III, is a comprehensive regulatory reform framework addressing issues that came to light in the 2008 global
financial crisis. Since 2013, Basel III has gradually come into effect, as its various standards have attained international agreement. In
January 2019, around ten years after the financial crisis, the necessary international agreement for finalization was reached.
Currently, the public and private sectors in each jurisdiction are working together to prepare for beginning phased implementationin 2022 and for achieving full implementation by 2027.

1982 Latin American
debt crisis

Increase in trading
activity

2008 Global Financial Crisis

More sophisticated risk
management systems

1988
Basel
restrictions

Increasing diversity andcomplexity of financial systems

Basel I• Introduction of thefirst capital ratio(numerator =shareholders’ equity;
denominator = credit
risk assets)

1996
Basel I• Market risk

incorporated into risk
asset calculation

2004
Basel II

2009

2010

Basel 2.5

2017

2019

Final agreement on Basel III• Use of banks’ internal • Tightening of restrictions on• Review and revision of risk asset• Operational risk

• Introduction of output floor (to reduce

credit ratings in risk
asset calculation

securitized products, increased
capital ratio

incorporated into risk
asset calculation• S tronger qualitative andBasel III

calculation (denominator of thecapital ratio)

excessive variations among banks inmeasurements of risk-weighted assets)quantitative restrictions on capital /shareholders’ equity (numerator of Completion of remaining Basel III tasks
the capital ratio)• Fundamental Review of the TradingBook• Introduction of leverage ratio
restrictions and liquidity restrictions

Principal restrictions under Basel III and state of compliance
As a Global Systemically Important Bank (G-SIB), Mizuho
Financial Group must meet some regulatory standards
at a higher level. We maintain full compliance with all therequirements in the standards and, going forward, we will
steadily accumulate capital and control our balance sheet
to ensure that we can satisfy any new requirements that are
introduced.

CapitalCapital ratio

Risk assets(which are calculated by taking account of the risk of assets held)
CapitalLeverage ratio

Liquidity
coverage ratio
Net stable
funding ratio

Risk exposure(calculated without taking account of the risk of assets held)
High-quality portfolio of liquid assets
Funds that would flow out under severe stressconditions over a specified short-term period (30 days)
Available stable funding(capital, deposits, market funding, etc.)
Required stable funding (loans, securities, etc.)

International financial standards going forward
With the completion of the post-crisis regulatory reforms, theFinancial Stability Board and the Basel Committee on Banking
Supervision, which are responsible for developing international
financial regulatory standards, are turning their attention to
new areas. They have shifted their focus from developing new
regulatory standards to addressing existing issues by, forexample, analyzing the actual impacts of regulatory standards
on the financial system and divergences between standards
in different jurisdictions (e.g., different jurisdictions adoptinginternational regulatory standards with different content andat different times, different jurisdictions having conflicting
standards, and so on). At the 2019 G20 Summit, for which
Japan served as chair, the assembled heads of state for the87

Mizuho Financial Group

first time discussed responding to fragmentation in standards
and strengthening cooperation among jurisdictions.
Currently, the finance industry is facing various structuralchanges, such as rapidly accelerating digitalization andincreasing societal interest in sustainability. There is growing
attention to the opportunities and risks that cyberattacks,
crypto-assets, cloud services, climate change, and othernew phenomena present to banks and the financial system.
In order to prevent another crisis, we will work closely withgovernment, academia, and industry to respond to these new
trends, while also holding proactive internal discussions.

Foundations for our corporate value

Stakeholder communication

In addition to articulating our commitment to maintain an ethical stance towards our stakeholders within the Mizuho Code of
Conduct, we aim to communicate with our stakeholders proactively and we strive to ensure that our corporate activities are alignedwith social expectations as well as fair and transparent.

Our stakeholders
We communicate with our broad base of stakeholders using a wide range of communication tools and channels and aim to reflect
their opinions and ideas into our corporate activities.

Stakeholders

Customers

Customers

Government
authorities

Shareholders

Regional/local
communities

Customer feedback cards, customer satisfaction
surveys, call centers, and our website customer
feedback forms for gathering opinions or complaints


P89

Shareholders

General shareholders’ meetings,
investor briefings

P25

Employees

Various briefings and other communications,employee opinion surveys
P90

Regional/local
communities

Suppliers/
competitors

Employees

Principal communication channels

Social contribution activities, support for
financial education 
https://www.mizuho-fg.com/csr/

Suppliers/
competitors

Purchasing activities and outsourcing
contracts overnmentGauthorities

Policy recommendations, participation in industry groups,
appropriate responses to supervisory authorities

A closer look at our communication with customers
In our Vision, we at Mizuho have adopted a goal of being our customers’ best financial services provider and we have put a numberof initiatives in place in order to achieve this objective. Using a range of communication channels, we actively stay abreast of theconstantly changing needs of our customers and strive to improve the level of services that we can offer.
Customer satisfaction improvement cycle

Providing attractive products
and services
Providingrecommendations andinformation promptlyConsulting
services which draw on
our advanced expertiseEnhancementof our solutions
capabilities

Customers

Customer feedback systems
Identification of each customer’s
needs and expectations

Customer feedback cards
Call centersCustomer satisfaction surveys
Group companies

Mizuho Financial Group (holding company)
Increase customer satisfaction (CS) awareness throughout the group
Construction of a group-wide CS promotion system

Application of common CS improvement tools across the group

Enhancement of CS education and training

2019 Integrated Report88Foundations for our corporate value

Stakeholder communication

Systems to capture customer feedback
Customer feedback cards

Satisfaction surveys

Customer feedback cards are distributed and otherwise madeavailable in retail branches. We have also installed “customer
feedback boards” where cards which have been submitted are
displayed along with the branch’s response.

We regularly conduct satisfaction surveys targeting ourindividual and corporate customers globally. The results ofthese surveys are reported directly to management and used to
improve our products and services.

Website feedback forms

Call centers
Our call centers are available for responding to customer
opinions and requests and data collected from these centers is
a valuable resource. In fiscal 2018, we received approximately
3.95 million phone inquiries for Mizuho Bank, Mizuho Trust &Banking, and Mizuho Securities combined.

The feedback forms available on our website are anothermethod we use to field comments and requests directed atMizuho Bank, Mizuho Trust & Banking, and Mizuho Securities.

Reflecting customer feedback into
our corporate activities
At Mizuho Bank, we draw on the opinions
expressed by customers in discussions heldby our Customer Satisfaction and Protection
Promotion Committees within our branches,
as well as at management level meetings,
including those of the Executive Management
Committee. When we have made improvements
based on customer feedback, we post thisinformation on our Customer Feedback Boards
located in our branches.

89

Mizuho Financial Group

Customer feedback
For matters thatcannot be addressed
immediately, we
devise and implement
improvement plans on
a group-wide basis.

At the branch level, we
respond when we canimmediately, andannounce results on the
Customer Feedback Boardand other locations.

Customer opinions, requests,
complaints, and other feedback
received at our branches or via
other channels such as surveys
and our website.

Branches: Customer Satisfaction and Protection Promotion Committees
Head Office: Executive Management Committee and other venues

Foundations for our corporate value Stakeholder communication

A closer look at our internal communications
We are endeavoring to substantially raise the quality and quantity of the internal communications within our group as part of ourefforts to build reciprocal, horizontal relationships between our management, Head Office, and frontlines and foster a corporate
culture in which each employee acts independently and proactively.

Initiatives to raise quality and quantity of communication
Briefings for employees
In these briefings, employees hear from management about thelatest developments and ask questions of management directly,
engaging in a lively exchange. The briefings are also streamed
live to our offices, allowing many employees to take part.

Roundtable discussions with senior management
In these roundtable discussions, management and employees
talk directly about matters such as the 5-Year Business Plan.
Participating in the discussions motivates employees to think
and act independently.

5-Year Business Plan Forum
This forum brought executive officers and general managers
together to facilitate understanding of the 5-Year Business Plan.

Mizuho Web
Our internal group website facilitates reciprocal communication
between management and employees, serving as a channel for
management to receive a variety of comments directly from
employees.

2019 Integrated Report90Financial review

Eleven-year major financial data (FY2008-2018)

Summary of consolidated performance
FY2008FY2009FY2010FY2011FY2012

Consolidated gross profits

1,806.9

1,996.6

2,025.3

2,003.0

2,171.7

Net interest income

1,068.8

1,151.7

1,109.4

1,088.3

1,075.8

Fiduciary income

55.8

49.1

49.3

49.0

48.5

Credit costs for trust accounts

—

—

—

—

—

Net fee and commission income

416.6

466.0

458.8

458.9

507.3

Net trading income

301.5

312.3

243.9

150.3

215.0

Net other operating income(35.9)

17.4

163.6

256.4

324.8

(1,192.7)(1,317.2)(1,277.8)(1,283.8)(1,244.6)

General and administrative expenses
Consolidated net business profits*

622.6

702.6

741.7

719.1

912.1

Credit-related costs(536.7)(219.3)(16.6)

27.7(111.8)Aggregate figures for the 2 banks(539.3)(157.1)

16.0

24.7

(114.1)

Net gains (losses) related to stocks(400.2)

4.2(70.5)(38.1)(82.9)Net gains (losses) on sales of stocks

49.7

88.8

25.7

15.6

46.6

Losses on impairment (devaluation) of stocks(482.1)(53.5)(94.4)(49.3)(125.8)(11.1)

Equity in income from investment in affiliates

(3.5)

2.8

(6.1)

2.6

Other

(51.1)(96.9)(6.1)(62.9)

29.2

Ordinary profits (losses)(395.1)

327.1

588.4

648.5

750.3

Net extraordinary gains (losses)(10.7)

50.6

46.9

67.8

(32.5)

Income taxes – current(48.2)(18.0)(18.3)(55.3)(50.4)(109.1)(25.1)(120.1)(97.4)(7.4)(563.2)

334.6

496.9

563.6

659.9

– deferred
Profit (loss)
Profit attributable to non-controlling interests(25.5)(95.2)(83.7)(79.1)(99.4)

Profit (loss) attributable to owners of parent(588.8)

239.4

413.2

484.5

560.5

* Consolidated gross profits – G&A expenses (excluding non-recurring losses) + Equity in income from investments in affiliates and certain other consolidation adjustments

Summary of consolidated balance sheet
FY2008Assets

FY2009FY2010FY2011FY2012

152,723.0

156,253.5

160,812.0

165,360.5

177,411.0

Loans and bills discounted

70,520.2

62,164.5

62,777.7

63,800.5

67,536.8

Securities

30,173.6

43,096.4

44,782.0

51,392.8

53,472.3

Liabilities

148,536.4

150,416.5

154,188.0

158,491.2

169,674.8

Deposits

77,179.5

76,339.7

79,233.9

78,811.9

84,241.9

Negotiable certificates of deposit

9,359.4

10,287.8

9,650.2

11,824.7

15,326.7

4,186.6

5,837.0

6,623.9

6,869.2

7,736.2

2,554.1

3,207.2

4,248.2

4,762.7

5,174.6
1,814.7

Net assets
Total shareholders’ equity

608.0

854.7

1,132.3

1,405.0

Total accumulated other comprehensive income

Retained earnings(420.3)

305.8

80.9

146.6

752.5

Non-controlling interests

2,051.6

2,321.7

2,292.1

1,957.6

1,806.4

Financial indicators
FY2008FY2010FY2011FY2012

Common Equity Tier 1 capital ratio (consolidated)

／

／

／

／

8.16

Tier 1 capital ratio (consolidated)

／

／

／

／

11.03

10.53

13.46

15.30

15.50

／

／

／

／

／

14.19
229.70Capital adequacy ratio (BIS standard) (consolidated)
Total capital ratio (consolidated)

91

FY2009Net assets per share (Yen)

104.38191.53177.53187.19Profit (loss) attributable to owners of parent per share (Yen)(54.14)

16.29

20.47

20.62

22.96

Net return on equity (consolidated)(29.61)

10.97

11.78

11.36

10.99

Mizuho Financial GroupFinancial review Eleven-year major financial data(¥ billion)
FY2013

FY2014FY2015FY2016FY2017FY20182,035.2

2,247.7

2,221.6

2,092.7

1,915.3

1,812.7

1,108.3

1,129.4

1,003.6

867.8

807.3

762.4

52.0

52.6

53.4

50.6

55.4

55.1

—

—

—

—

—

—

560.7

593.3

607.5

603.5

614.3

610.4

187.4

262.9

310.5

325.3

275.7

297.3

126.7

209.3

246.4

245.4

162.4

87.3

(1,258.2)(1,351.6)(1,349.5)(1,467.2)(1,488.9)(1,430.8)

744.2

876.9

852.8

663.4

457.8

393.3

112.8

(4.6)

(30.4)(47.5)

156.3(19.5)

116.6

(7.8)

(26.7)(49.3)

153.2(22.7)

77.0

131.9

205.6

242.1

272.0

274.8

81.5

143.7

225.3

261.1

288.3

305.2

(5.3)

(5.3)

(10.3)

(4.8)

(5.1)

(5.7)

15.4

15.0

24.2

18.8

21.4

51.2

5.1

(27.5)(74.0)(101.5)(93.7)(74.2)

987.5

1,010.8

997.5

737.5

782.4

614.1

(2.2)

(20.2)

10.7

46.6

17.5

(497.8)(137.0)(260.2)(213.2)(196.5)(190.1)(161.3)(77.9)(44.7)(69.2)

58.8

(1.4)

163.8

770.3

685.6

725.7

646.4

608.3

118.7

(81.9)(73.7)(54.7)(42.9)(31.7)(22.1)

688.4

611.9

670.9

603.5

576.5

96.5

(¥ billion)
FY2013

FY2014FY2015FY2016FY2017FY2018

175,822.8

189,684.7

193,458.5

200,508.6

205,028.3

200,792.2

69,301.4

73,415.1

73,708.8

78,337.7

79,421.4

78,456.9

43,997.5

43,278.7

39,505.9

32,353.1

34,183.0

29,774.4

167,518.3

179,884.2

184,105.3

191,235.2

195,207.0

191,598.1

89,055.5

97,757.5

105,629.0

120,045.2

125,081.2

124,311.0

12,755.7

15,694.9

11,827.5

10,631.2

11,382.5

13,338.5

8,304.5

9,800.5

9,353.2

9,273.3

9,821.2

9,194.0

5,676.2

6,131.1

6,559.9

7,001.2

7,388.3

7,303.0

2,315.6

2,769.3

3,197.6

3,615.4

4,002.8

3,915.5

781.0

2,029.9

1,607.8

1,520.9

1,677.5

1,445.7

1,844.0

1,635.5

1,182.6

749.3

754.2

444.5

(%)
FY2013

FY2014FY2015FY2016FY2017FY2018

8.80

9.43

10.50

11.34

12.49

12.76

11.35

11.50

12.64

13.30

15.44

15.94

／

／

／

／

／

／

14.36

14.58

15.41

16.28

18.24

18.85

253.25322.86322.46335.96357.41345.00

28.18

24.91

26.94

23.86

22.72

3.80

11.65

8.60

8.37

7.27

6.55

1.08

2019 Integrated Report92Financial review

Review and analysis for fiscal 2018

Summary of consolidated performance■ Historical data
Consolidated gross profit
Consolidated net business profit 1

Net income (losses)(¥ billion)
FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY20181,806.9

1,996.6

2,025.3

2,003.0

2,171.7

2,035.2

2,247.7

2,221.6

2,092.7

1,915.3

1,812.7

622.6

702.6

741.7

719.1

912.1

744.2

876.9

852.8

663.4

457.8

393.3

413.2

484.5

560.5

688.4

611.9

670.9

603.5

576.5

239.4

2

96.5

（588.8）
1. Consolidated gross profits – G&A expenses (excluding non-recurring losses) + Equity in income from investments in affiliates and certain other consolidation adjustments
2. Profit attributable to owners of parent

Consolidated(¥ billion)
FY2018FY2017

Change from
FY2017

Consolidated gross profits

1,812.7

1,915.3(102.6)

General and administrative expenses(1,430.8)(1,488.9)

58.1

Expenses related to portfolio problems1(30.7)(17.0)(13.6)

Gains on reversal of reserves forpossible losses on loans and others

11.1

173.3

(162.1)

Net gains (losses) related to stocks

274.8

272.0

2.8

Equity in income from investments in affiliates

51.2

21.4

29.7

Other

(74.2)(93.7)

19.4

Ordinary profits

614.1

782.4

(168.3)Net extraordinary gains (losses)(497.8)17.5(515.3)

Income before income taxes

116.2

799.9

(683.6)

2.5(191.6)

194.1

Profit

118.7

608.3

(489.5)

Profit attributable to non-controlling interests(22.1)(31.7)

9.5

Profit attributable to owners of parent

96.5

576.5

(479.9)Credit-related costs(19.5)

156.3(175.8)

Consolidated net business profits2

393.3

457.8

(64.4)

Income taxes

1 Including reversal of [provision for] general reserve for losses on loans
2 Consolidated gross profits - G&A expenses (excluding non-recurring losses) + Equity
in income from investments in affiliates and certain other consolidation adjustments

Mizuho Bank + Mizuho Trust & Banking*(Aggregate figures on a non-consolidated basis)
FY2018Gross profits

1,197.1

1,293.3(96.1)

G&A expenses(excluding non-recurring losses)(949.3)(964.7)

15.3

Net business profits

247.7

328.5

(80.8)

Credit-related costs(22.7)

153.2(175.9)Net gains (losses) related to stocks

176.1

266.3

(90.1)

Ordinary profits

339.9

616.5

(276.5)Net Income(105.3)493.1(598.5)*Abbreviated as MHBK + MHTB

93

FY2017(¥ billion)
Change from
FY2017

Mizuho Financial Group

Consolidated net business profits
We recorded consolidated gross profits of ¥1,812.7 billion for fiscal
2018, decreasing by ¥102.6 billion from the previous fiscal year.
Despite the increase for customer divisions inside and outside
Japan, consolidated gross profits declined mainly due to the writedown of a loss in advance pertaining to the restructuring of our
securities portfolio, such as foreign bonds with unrealized losses inmarkets.
G&A expenses decreased by ¥58.1 billion on a year-on-year basis
to ¥1,430.8 billion. As a result, consolidated net business profits
decreased by ¥64.4 billion on a year-on-year basis to ¥393.3 billion.

Profit Attributable to Owners of Parent
Consolidated credit-related costs increased by ¥175.8 billion on a
year-on-year basis to ¥19.5 billion.
Net gains (losses) related to stocks increased by ¥2.8 billion on a
year-on-year basis to ¥274.8 billion.
As a result, ordinary profits decreased by ¥168.3 billion on a yearon-year basis to ¥614.1 billion.
Net extraordinary gains (losses) decreased by ¥515.3 billion ona year-on-year basis to net losses of ¥497.8 billion due to therecording of impairment losses in light of efforts toward structuralreforms.
Income taxes decreased by ¥194.1 billion on a year-on-year basis to-¥2.5 billion.
As a result, profit attributable to owners of parent for FY2018
decreased by ¥479.9 billion on a year-on-year basis to ¥96.5 billion.

Financial review Review and analysis for fiscal 2018

Summary of consolidated balance sheet
Consolidated
March 31,2019

March 31,2018

200,792.2

205,028.3(4,236.0)

29,774.4

34,183.0(4,408.5)

Japanese government bonds

13,016.0

15,292.0(2,275.9)

Japanese local government
bonds

209.8

239.3

(29.4)

Japanese corporate bonds
and short-term bonds

2,681.0

2,964.2(283.2)

AssetsSecurities

Securities(¥ billion)
Change fromMarch 31,2018

Securities were ¥29,774.4 billion, decreasing by ¥4,408.5 billion
from the end of the previous fiscal year due to an decrease in JGBs
and other factors.
JGB balance (MHBK + MHTB)1
Medium- and long-term bonds2

3,563.2

3,952.7

Other

10,304.2

11,734.6(389.5) 9.0(1,430.4) 1.5

78,456.9

79,421.4(964.5)Loans(MHBK + MHTB, banking
account + trust account)
Domestic total

80,060.9

75,201.7

4,859.1

57,434.6

55,729.0

1,705.6

Loans to SMEs andindividual customers

33,186.5

32,740.4

446.0(Housing loans forowner’s residential
housing)

8,791.4

9,136.8(345.4)

22,626.2

19,472.7

3,153.4

Liabilities

191,598.1

195,207.0(3,608.8)

Deposits

124,311.0

125,081.2(770.2)

101,655.1

96,788.3

4,866.7

Individual deposits

43,959.4

42,861.9

1,097.5

Corporate deposits

49,898.5

47,109.9

2,788.6

Financial/government
institutions

7,797.1

6,816.5

980.5

Negotiable certificates of deposit

13,338.5

11,382.5

1,955.9

9,194.0

9,821.2(627.2)7,303.0

7,388.3(85.2)
0.2

Overseas total

Domestic deposits(MHBK + MHTB)

Net assets
Total shareholders’ equity
Common stock

2,256.7

2,256.5

Capital surplus

1,138.4

1,134.9

3.5

Retained earnings

3,915.5

4,002.8(87.3)

(7.7)

(5.9)

(1.7)

1,445.7

1,677.5(231.7)

1,186.4

1,392.3(205.9)Treasury stock
Total accumulated othercomprehensive income
Net unrealized gains(losses) on other securities
Deferred gains or losses
on hedges(22.2)(67.5)

45.2

Revaluation reserve for land

137.7

144.2

(6.5)

Foreign currencytranslation adjustments(111.0)(85.0)(25.9)

Remeasurements ofdefined benefit plans

254.9

293.5

(38.6)

Stock acquisition rights

0.7

1.1

(0.4)

Non-controlling interests

444.5

754.2

(309.7)

Treasury discount bills(¥ trillion)

Japanese stocks
Loans and bills discounted(Acquisition cost basis)

Floating-rate notes

20.0

15.6

0.5
0.6
14.4

Mar. 31,
2016

10.2

13.3
1.7
0.6
7.8

11.8
3.4
0.6
9.2

5.4
0.6
5.8

Mar. 31,2017

Mar. 31,2018

Mar. 31,2019

2.4 years

2.5 years

2.1 years

Average remaining period3
2.5 years

1. Other securities which have readily determinable fair values
2. Including bonds with remaining period of one year or less
3. Excluding floating-rate notes

Japanese stocks (consolidated)* (¥ billion)

(Acquisition cost basis)）

1,847.1
1,687.5
1,564.8
1,419.8

Mar. 31,2016

Mar. 31,2017

Mar. 31,2018

Mar. 31,
2019*Other securities which have readily determinable fair values

2019 Integrated Report94Financial review

Loans

Total net assets

The total of loans was ¥78,456.9 billion, a decrease of ¥964.5
billion from FY2017, caused mainly by the decrease in consolidated
subsidiaries in accordance with the reorganization of groupcompanies.

Net assets amounted to ¥9,194.0 billion, decreasing by ¥627.2
billion from FY2017 due to a decrease in retained earnings
by payout of dividends, net unrealized gains (losses) on othersecurities, and other factors.

The combined total of loans for MHBK and MHTB was ¥80,060.9
billion, an increase of ¥4,859.1 billion. For our loan balance in Japan,
while the balance of personal loans and Japanese government
loans increased, that of large, medium, and small businesses
decreased, resulting in an overall increase of ¥1,705.6 billion(including decrease of ¥510.7 billion loans to the Japanese
government and other such obligors). Our loan balance outside
Japan (including loans booked offshore) increased by ¥3,153.4
billion, mainly due to an increase in loans especially in Europe and
Asia.
Loan balance (MHBK + MHTB, banking book + trust banking book)
Loan balance in Japan

Loan balance outside Japan 

75.4

74.7
19.2

55.5

Mar. 31,
2016

19.4

55.7

56.2

Mar. 31,2017

The combined NPL balance of MHBK and MHTB was ¥560.4
billion, an increase of ¥1.6 billion from FY2017, and the NPL ratio
was 0.62%. We maintained a good credit portfolio, with both the
NPL balance and ratio remaining stable in a low position.

Non performing loans based on the financial reconstruction act(MHBK + MHTB, banking book + trust banking book)

Claims for special attention (¥ trillion)
Claims with collection risk (¥ trillion)
Claims against bankrupt and substantially bankrupt obligors (¥ trillion)
NPL ratio (%)

80.0

75.2
19.1

(¥ trillion)

Non-performing loans (NPLs)

Mar. 31,
2018

22.6

1.00

1.00

0.8

0.8

0.66

0.62

0.5

0.5

Mar. 31,2018

Mar. 31,
2019

57.4

Mar. 31,2019

Mar. 31,2016

Mar. 31,2017 on performing loans based on the financial
N
reconstruction act (MHBK + MHTB, banking book + trust
banking book)

Deposits(¥ billion)

The total deposits was ¥124,311.0 billion, a decrease of ¥770.2
billion from FY2017, caused mainly by the decrease in consolidated
subsidiaries in accordance with the reorganization of groupcompanies.
The combined deposits in Japan of MHBK and MHTB increased by¥4,866.7 billion from FY2017 due to factors such as an increase incorporate deposits.
Deposits in Japan (MHBK + MHTB)
Individuals

Corporations(¥ trillion)

7.4

6.8

101.6
7.7

40.6

43.9

47.1

49.8

40.2

41.3

42.8

43.9

96.7

92.7

88.0
7.1

Mar. 31,2016

95

Financial/government institutionsMar. 31,2017

Mizuho Financial Group

Mar. 31,2018

Mar. 31,2019

March 31,2019

March 31,2018

Change fromMarch 31,2018

Claims against bankrupt andsubstantially bankrupt obligors

52.9

76.6

(23.6)

Claims with collection risk

347.6

284.2

63.3

Claims for special attention

159.7

197.8

(38.0)

Subtotal

560.4

558.7

1.6

Normal claims

89,236.8

83,644.2

5,592.5

Total

89,797.2

84,203.0

5,594.2

NPL ratio

0.62%

0.66%

(0.03%)

Financial review Review and analysis for fiscal 2018

BIS capital
BIS capital

BIS capital ratio

The Common Equity Tier 1 capital was ¥7,390.0 billion, a decreaseof ¥46.9 billion from FY2017.

Common Equity Tier 1 capital ratio (consolidated) (%)
Total capital ratio (consolidated) (%)

Tier 1 capital ratio (consolidated) (%)

16.28

15.94

13.30
11.34

18.85

18.24

15.44

12.76

12.49

Risk assets
The risk-weighted assets were ¥57,899.5 billion, a decrease of¥1,629.4 billion from FY2017, due to a decrease in credit risk related
assets

BIS capital ratio
The Common Equity Tier 1 capital ratio increased by 0.27% from
FY2017 to 12.76%.

Mar. 31,2018

Mar. 31,2019

Mizuho continues to perform disciplined capital management which
maintains the optimum balance between strengthening of the stable
capital base and steady returns to shareholders.
With regard to the enhancement of equity capital, the consolidated
Common Equity Tier 1 capital ratio (based on Basel III fullyimplemented basis* [based on current requirements], excluding net
unrealized gains on other securities), which is regarded as the mostimportant indicator of soundness, as of the end of March 2019, we
achieved 10.71%, is higher than the target of the previous mediumterm business plan of 10%.
*Calculated on a Basel III fully effective basis at the end of FY2018.

BIS capital ratio (consolidated)(¥ billion)

March 31,2019

March 31,2018

Change fromMarch 31,2018

Common Equity Tier 1 capital (CET1)

7,390.0

7,437.0(46.9)

Capital stock, surplus, andretained earnings

7,302.6

7,387.8(85.1)

Additional Tier 1 capital

1,842.1

1,755.1

86.9

Additional Tier 1 capital
instruments

1,570.0

1,220.0

350.0

Eligible Tier 1 capital
instruments subject tophase-out arrangements

303.0

577.5

(274.5)

1,685.3

1,668.1

17.1

Tier 2 capital instruments

1,168.4

988.1

180.3

Eligible Tier 2 capital
instruments subject tophase-out arrangements

506.1

674.8

(168.7)

Total capital

10,917.5

10,860.4

57.0

Risk-weighted assets

57,899.5

59,528.9(1,629.4)

Credit risk assets

52,628.8

53,647.3(1,018.5)

Market risk equivalent assets

2,034.2

2,470.3(436.1)

Operational risk equivalent
assets3,236.4

3,411.2(174.7)

Total capital ratio (consolidated)

18.85%

18.24%

0.61%

Tier 1 Capital ratio (consolidated)

15.94%

15.44%

0.50%

Common Equity Tier 1 capitalratio (consolidated)

12.76%

12.49%

0.27%

Tier 2 capitalMar. 31,2017

Dividend policy
As for our policy to return profits to shareholders in FY2018, we have
implemented a steady dividend payout policy setting a dividend payout
ratio on a consolidated basis of approximately 30% as a guide for ourconsideration.
Based on this policy, we made cash dividend payments on common
stock of ¥7.50 (¥3.75 for interim dividends and ¥3.75 for year-end
dividends) for the fiscal year ended March 31, 2019, the sameamount as the annual dividend of the previous fiscal year. The Boardof Directors of Mizuho Financial Group considered thoroughly anddecided on a cash dividend, although profit attributable to owners ofparent for fiscal 2018 declined significantly as a result of recording
losses in light of the structural reforms.
To make such a decision, the Board of Directors considered that
consolidated Common Equity Tier 1 capital ratio (based on Basel III
fully-implemented basis [based on current requirements], excluding
net unrealized gains on other securities ), which is the foundationof fulfilling stable financial functions, is higher than the target of themedium-term business plan formulated for the three years fromfiscal 2016, i.e., 10% as of March 31, 2019, and that we aim to
implement a steady dividend payout policy. The Board of Directors also
comprehensively took into account our business environment, suchas future earnings forecasts, profit base, status of capital adequacy,
and domestic and international regulatory trends such as the Baselframework.
Cash dividend per share of common stock ( ¥ )
7.5

7.5

7.5

7.5

FY2015FY2016FY2017FY2018

31%

33%

197%

Status of capital adequacy
The total capital ratio, Tier 1 capital ratio, and Common Equity Tier 1
capital ratio at the end of March 2019 were 18.85%, 15.94%, and12.76%, respectively.

Dividend payout ratio
28%

2019 Integrated Report96Company information

Office network

We utilize our office network, which covers every prefecture in Japan as well as major cities outside Japan, to respond to ourcustomers’ diversified and globalizing financial needs while supporting their economic activities.

Europe, the Middle East, and Africa

Asia and Oceania

Mizuho Bank

16 offices

Mizuho Bank

43 offices

Mizuho Trust & Banking

1 officeMizuho Securities

9 officesMizuho Securities

6 offices

Asset Management One

2 offices

Asset Management One

1 office

Amsterdam
Brussels
Düsseldorf
Frankfurt
ZurichViennaTianjinLondonDalianNanjing
Moscow

QingdaoBeijing

Hefei

Seoul

Wuhan

Paris

XiamenMilan
Istanbul

Shenzhen

TehranGuangzhou

Luxembourg
MadridBahrainSuzhouShanghai

Wuxi

New Delhi
Taipei

Riyadh

Hanoi

Dubai

Taichung
Kaohsiung

AhmedabadHong Kong

Mumbai

ManilaBangalore-Devanahalli

LabuanChennai

Ho Chi Minh City

YangonPhnom Penh

Thilawa
Johannesburg

Bangkok

Eastern Seaboard

Jakarta
SydneyKuala Lumpur
Singapore

97

Mizuho Financial Group

Company information Office network

International network (As of June 30, 2019)
Mizuho Bank: 87 offices

Mizuho Trust & Banking: 1 office

Branch or equivalent

42

Representative office

6

Subsidiary

39

Subsidiary1Mizuho Securities: 25 offices
Representative office3

Subsidiary

22

Asset Management One: 4 offices
Subsidiary4Note: Subsidiaries include head offices, branches or relevant offices, and representative offices of overseas subsidiaries.

AmericasMizuho Bank

28 offices

Mizuho Securities

10 offices

Asset Management One

1 office

Calgary

ChicagoTorontoBostonIselin

New York
San Francisco

Atlanta
Washington, DC

Los Angeles

NassauDallasCaymanHoustonLeón

Mexico City

Network in Japan (As of June 30, 2019)
Mizuho Bank
Head office and branches: 421
Sub-branches: 43
Mizuho Trust & Banking
Head office and branches: 36
Sub-branches: 24

Santiago
Mizuho Securities
Tokyo head office and regional head offices: 3
Branches: 105
Planet Booths*: 150
Sales office: 1*Planet Booths are the consulting boothsof Mizuho Securities located in Mizuho Bank’s branchesSão Paulo• In January 2019, Mizuho Securities
opened the Mizuho International plc Madrid
Representative Office.
• In March 2019, Mizuho Bank opened
the Mizuho Bank (China), Ltd. Shanghai
Hongqiao Sub-Branch.
• In March 2019, Mizuho Securities opened
Mizuho Securities Europe GmbH in
Frankfurt.

2019 Integrated Report98Corporate profile

Corporate profile (As of March 31, 2019)

Company name:

Mizuho Financial Group, Inc.

Stock listing (code):Tokyo Stock Exchange (8411)
New York Stock Exchange (MFG)

Location of head office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan

Rating information(As of June 30, 2019)

R&I

JCR Moody’s S&P

Fitch

Mizuho Financial Group

A+

AA-

A1

A-

A-

Mizuho Bank

AA-

AA

A1

A

A-

Representative:

Tatsufumi Sakai, President & Group CEO

Capital:¥2,256.7 billion

Issued shares:

25,392,498,945 shares

Mizuho Trust & Banking

AA-

AA

A1

A

A-

Number of employees:

1,664(Total number of employees on a consolidated
basis: 59,132)

Mizuho Securities

AA-

AA

A1

A

—

Date of establishment:

January 8, 2003

(Reference)
Japanese Government

AA+

AAA

A1

A+

A

Shareholders (common stock)

Historical data of stock priceMizuho Financial Group

Foreign investors

22.81%

National & municipal
government

Individuals and others

160

31.09%

140

0.03%

Nikkei Index

120

Other domestic
companies

12.23%

Securities
companies

5.63%

100
80

Financial institutions

28.21%

Website60

March 2017 September 2017 March 2018 September 2018 March 2019
The graph showing Mizuho Financial Group’s stock price and the Nikkei stock
price average has been prepared as an index with the closing prices on March
31, 2017 as 100.
©Nikkei

Our website provides additional information regarding
the business operations of Mizuho Financial Group andour group companies. Sections covering IR, financial
information, and our products and services are available
in addition to in-depth industry and economic reports.
Additionally, you can sign up for our News Release E-mailDistribution Service to receive updates by email.

‌www.mizuho-fg.com/

Corporate responsibility

Investor relations

Gain insights into our approach to CSR.

Access reports, presentations, news, and other investor resourcesand get details on upcoming events.

‌‌www.mizuho-fg.com/csr/

99

Mizuho Financial Group‌‌www.mizuho-fg.com/investors/

Company information

Group companies (As of March 31, 2019, except for each company’s network, which is as of June 30, 2019)

Mizuho Bank

Mizuho Trust & Banking

Date of establishment

July 1, 2013

Date of establishment

March 12, 2003

Capital¥1,404.0 billion

Capital¥247.3 billion

Location of head office 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan

Location of head office 1-2-1, Yaesu, Chuo-ku, Tokyo
103-8670, Japan

Representative

Koji Fujiwara, President & CEO

Representative

Tetsuo Iimori, President & CEO

Number of employees

29,991

Number of employees

3,478

Network in Japan

464

Network in Japan

60

Network outside Japan 87
Websitewww.mizuhobank.com/

Network outside Japan 1
Websitewww.mizuho-tb.co.jp/english/

Mizuho Securities
Date of establishment

January 4, 2013

Capital¥125.1 billion

Location of head office Otemachi First Square, 1-5-1, Otemachi,
Chiyoda-ku, Tokyo
100-0004, Japan
Representative

Koichi Iida, President & CEO

Number of employees

7,554

Network in Japan

259

Network outside Japan 25
Websitewww.mizuho-sc.com/english/

2019 Integrated Report100Company information

Mizuho Research InstituteMizuho Information & Research InstituteMizuho Research Institute is one of Japan’s leading think tanks
providing research, consulting, and corporate memberships. In
addition to providing high-value-added information and preparing
policy proposals, Mizuho Research Institute offers highly actionableconsulting advice to assist the Japanese national government, local
governments, and private corporations in addressing the issues
they confront. Mizuho Research Institute has the largest number ofcorporate membership subscribers of any bank-affiliated research
institute in Japan.

With IT as its core technology, Mizuho Information & ResearchInstitute is a professional organization with more than 4,000
employees that provides assistance to corporations in increasing
their corporate value through its consulting, system integration, andoutsourcing services.

Date of establishment

October 1, 2002

Date of establishment

October 1, 2004

Capital¥900 million

Capital¥1,627 million

Location of head office

1-2-1, Uchisaiwaicho, Chiyoda-ku, Tokyo

Location of head office

2-3 Kanda-Nishikicho, Chiyoda-ku, Tokyo

Representative

Motonori Wakabayashi, President & CEO(Appointed on June 28, 2019)

Representative

Yasumasa Mukai, President & CEO(Appointed on April 1, 2019)

Number of employees

323

Number of employees

4,183

Websitewww.mizuho-ri.co.jp/english/

Websitewww.mizuho-ir.co.jp/english/

Asset Management One

Mizuho Private Wealth Management

Asset Management One is an asset management company in which
Mizuho and Dai–ichi Life Holdings both have equity holdings. AssetManagement One collaborates with its offices in Europe, the US, andAsia to offer investment trust products to individuals andcorporations, as well as provide investment advisory services tocustomers including Japanese and overseas pension funds.

Mizuho Private Wealth Management offers consulting services
tailored to the needs of its customers. These services range
from consulting on customers’ financial matters such as wealthmanagement, arranging for business inheritance to advice on
customers’ individual matters, including health of the customers
themselves as well as family members and children’s education.

Date of establishment

October 1, 2016

Date of establishment

October 3, 2005

Capital¥2,000 million

Capital¥500 million

Location of head office

Tekko Building, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo

Location of head office

1-1-5, Uchisaiwaicho, Chiyoda-ku, Tokyo

Representative

Naoyuki Machinaga, President(Appointed on April 1, 2019)

Number of employees

36

Representative

Akira Sugano, President & CEO

Number of employees

894

Network outside Japan

4

Websitewww.am-one.co.jp/english/

Mizuho Americas

JTC Holdings

Mizuho Americas is a US bank holding company with Mizuho’s
primary US-based banking, trust banking, and securities entities
under it. To further increase its competitiveness in the US, which is
the world’s largest financial market, Mizuho Americas is proactively
strengthening its governance framework, and, while promoting thecollaboration of its banking, trust banking, and securities operations,
it is conducting management and other activities that are necessaryfor expanding its profit base.

JTC Holdings is a bank holding company that has the asset
administration companies Trust & Custody Services Bank and Japan
Trustee Services Bank as subsidiaries. The balance of assets undercustody and administration of these two companies stands at about¥700 trillion (including trust assets of about ¥400 trillion) and is thelargest of any asset administration company in Japan.

Date of establishment

June 20, 2016

Date of establishment

October 1, 2018

Capital$3,820 million

Capital¥500 million

Location of head office1251 Avenue of the Americas, New York,NY 10020, USA

Location of head officeTower Y, Harumi Triton Square, 1-8-11,
Harumi, Chuo-ku, Tokyo

Representative

Teiji Teramoto, CEO

Representative

Nobumitsu Watanabe, President & CEO

Websitewww.mizuhoamericas.com/

Number of employees

121

Notes: 1 .The representatives of each company have representation rights.
2. The number of employees does not include each company’s employees dispatched outside each company while it includes employees dispatched to eachcompany from other organizations. This figure also includes overseas local staff but excludes executive officers and temporary employees.
3. Mizuho’s network consists of our Head Office and branches in Japan, and branches, representative offices and overseas subsidiaries outside Japan.

101

Mizuho Financial GroupAppendix

Compliance contacts

Internal control and audit hotline—A system designed for reporting questionable accounting or auditing matters—
Reporting items: M izuho Financial Group has established a hotline
to receive reports from in and outside the company• When a report is received concerning the reporting items stipulatedon the left, Mizuho Financial Group will make a reasonable effort

in connection with problems concerning internal

to investigate the facts behind the information received and reportcontrol and audits of accounts and financial reports.

back on the results.

Contact point: This hotline has been established within an external• Anonymous tips are also acceptable, but there are cases where it

law office. Reports can be made via postal mail orwill not be possible to fully satisfy the intentions behind such tips

email.

owing to constraints on investigations and the inability to report

Postal mail: 12th Floor, Kasumigaseki Bldg.,

back.

Kasumigaseki 3-2-5, Chiyoda-ku, Tokyo• Information on persons making such reports is not disclosed to100-6012

third parties other than the group companies except in cases whereMizuho Accounting Hotline, c/o Daiichi

the assent of the person in question has been obtained or such

Fuyo Law Officedisclosure is required under laws and ordinances.

Email: kaikei-mizuho@daiichifuyo.gr.jp

Approaches to financial alternative dispute resolution (ADR)
In order to deal expeditiously, fairly, and appropriately withThe designated dispute resolution institution as defined in Japan’scomplaints and other feedback from customers, Mizuho Bank

Banking Act which Mizuho Bank and Mizuho Trust & Banking haveand Mizuho Trust & Banking have concluded a contract for thecontracted

implementation of dispute resolution procedures with the Japanese

The Designated Dispute Resolution Institution: Bankers Association, which is a designated dispute resolution
institution as defined in Japan’s Banking Act. Mizuho Trust & Banking
has also concluded a contract for the implementation of dispute

Japanese Bankers Association
Contact: Advisory Center of Japanese Bankers Association
Tel: +81-(0)3-5252-3772

resolution procedures with the Trust Companies Association ofJapan, which is a designated dispute resolution institution as defined

The designated dispute resolution institution as defined in Japan’sin Japan’s Trust Business Act and Act on Concurrent Operation ofTrust Business Act and Act on Concurrent Operation of Trust

Trust Business by Financial Institutions.

Business by Financial Institutions which Mizuho Trust & Banking has
contracted

The designated dispute resolution institution takes the steps toward
resolution from a fair and neutral perspective in cases where thesolutions to customers’ complaints adopted by the two banks are notaccepted.

The Designated Dispute Resolution Institution: Trust Companies Association of Japan
Contact: Trust Consultation Center of the Trust Companies
Association of Japan
Tel: +81-(0)3-6206-3988

2019 Integrated Report102Appendix

Support for SMEs and regional revitalization

Support for small and medium-sized enterprises (SMEs)
Mizuho provides information to clients which is relevant to their particular needs and challenges at each stage intheir development, and we propose solutions and provide support for the implementation of these solutions.
By drawing on our consulting capabilities to provide proposals andsupport the growth of innovative companies with exceptional

solutions that address the issues SMEs face, we ensure that clients’technologies or ideas.

perspectives are prioritized when providing support for businessexpansion, succession, reorganization, and other client needs.

Furthermore, a specialized business reorganization section within

We also believe that proactively supporting SMEs is a key part of

the Head Office provides support for SMEs’ business improvement

fulfilling our social responsibility as a financial institution.

and reorganization needs. In addition, our Head Office collaborates
with frontline offices to provide consultations and support for clients

In particular, by providing consulting and support for SMEs’ growththrough partnerships with external organizations, external specialists,

strategies, we can introduce clients to potential M&A opportunities

and other financial institutions.

from the standpoint of business expansion and succession, andRegional revitalization initiatives
In Japan, as a result of the trend toward concentration of businesses

Utilizing our office network in Japan, we are striving to promote

and other economic activity solely in Tokyo, rural populations are

the revitalization of regional economies by providing our clients

expected to decline and regional economies are expected to shrinkwith funding, supporting the operations of local businesses, andin the future. As a nation, Japan must look for ways to revitalize

collaborating with regional governments.

regional areas through a virtuous cycle in which jobs draw people
back to local areas and population growth creates more jobs.

Case example
Investing in an agricultural sector industrialization fundFor its fifth project, the Hiroshima Agriculture, Forestry, and Fisheries Growth Support Fundinvested ¥30 million in Tsunagu Farm (May 2019). This fund was established in January 2014
with investment from The Hiroshima Bank; The Hiroshima Shinkin Bank; Mizuho Bank; theAgriculture, Forestry and Fisheries Fund Corporation for Innovation, Value-chain and Expansion
Japan (A-FIVE); and Hiroshima Venture Capital for the purpose of actively contributing to therevitalization of the regional economy and job creation. The Tsunagu Farm plans to increase theadded value of livestock products and build a new brand by entering the food service industry tosupply locally-produced beef.

Finance facilitation and response to the Guidelines for Personal Guarantee Provided by Business Owners
Mizuho works to promote finance facilitation in accordance withFinance facilitationG uidelines for Personal Guarantee Provided by Business Owners
We are committed to establishing and maintaining good relationships

group-wide fundamental policies. This includes ensuring that wewith our clients in line with the Guidelines for Personal Guarantee

respond appropriately to requests for new loans or loan condition

Provided by Business Owners established by the Japanese Bankers

adjustments, and provide tailored consulting.

Association and the Japan Chamber of Commerce and Industry.
We provide the option for a joint guarantee with a termination clauseand other alternative lending methods allowing for a personal
guarantee provided by business owners. Also, we have establisheda structure for cooperation between our frontline offices and Head
Office to encourage the utilization of these methods.

103

Mizuho Financial GroupAppendix

Internal audit structure

Basic approach
Internal audits consist of a series of activities, ranging from theobjective and comprehensive evaluation of the effectivenessand appropriateness of each process relating to governance,risk management, and control, to providing recommendations,corrective guidance, etc., toward the resolution of problems from an
independent standpoint of the departments and business processes
that are subject to the audit, based on a plan approved by the boardof directors of each of our group companies.

In line with the Basic Policy for Internal Audit established by Mizuho
Financial Group, our principal banking subsidiaries and other coregroup companies conduct internal audits, which include the internal
auditing of their respective subsidiaries. In addition, with respect tothe management of risks applicable across the Mizuho group, we
coordinate internal audits throughout the group to assess the risk
management status of the group as a whole.

Through these series of activities, internal audits assist the boards of
directors of each of our group companies to fulfill their managerial
duties efficiently and effectively.

Our Internal Audit Committee monitors and manages internal audits
at our principal banking subsidiaries and other core group companies
through internal audit reports submitted by such subsidiaries. Our
Internal Audit Committee discusses and makes decisions regarding
internal audits at our principal banking subsidiaries and other coregroup companies and submits the results, together with the resultsof their examination of the internal audit reports, to the Audit
Committee and our Board of Directors.

Board of Directors

Audit Committee

President & Group CEO

Internal Audit Committee(Chairman: President &Group CEO)Instruction

The Head of the Internal Audit Group reports the progress of
individual audits and plans to the Audit Committee, responds torequests for inspections, and receives specific instructions from thecommittee.

Mizuho Financial Group

ReportOur Internal Audit Committee determines all important mattersconcerning internal audits. The committee is chaired by our President& Group CEO and is independent of our other business operations.

Internal audit management structure

Supervision,
audit

Mizuho Financial GroupManagement

Internal audit management structureInternal Audit GroupInternal Audit
All organizational units

Internal Audit
Department

Mizuho Bank and Mizuho Trust & Banking
Mizuho Bank and Mizuho Trust & Banking have also establishedinternal audit committees that are independent of their otherbusiness operations and a framework under which their internal
audit committees coordinate with their respective audit &supervisory committees.
Both banks have established internal audit departments to conduct
internal audits at their respective domestic and overseas businessoffices, head office departments, and group companies. Specifically,
the internal audit departments assess the suitability and effectivenessof business activities associated with compliance and risk management.

Management by Mizuho
Financial Group

Advice, guidance
and remedialrecommendations

Report the resultsof internal audits

Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities
and other core group companies

Subsidiaries of the above group companies

Other core group companies(As of June 21, 2019)

Other core group companies have also established effective andefficient internal audit structures adapted to the characteristics oftheir respective businesses.

2019 Integrated Report104Appendix

Risk Management Structure

Credit risk management
Basic approach
We define credit risk as the group’s exposure to the risk of losses

Mizuho Financial Group manages credit risk for the Group as athat may be incurred due to a decline in, or total loss of, the value

whole. Specifically, Mizuho Financial Group establishes the group’sof assets (including off–balance–sheet instruments), as a result offundamental credit risk policy to manage major group companies,

deterioration in obligors’ financial position. We have established theand monitors and manages the credit risks of the group as a whole.

methods and structures necessary for grasping and managing credit
risk.

Credit risk management structure
Our Board of Directors determines the group’s basic matters

The Balance Sheet & Risk Management Committee and the Credit

pertaining to credit risk management. In addition, the Risk

Committee, each of which is a Business Policy Committee of ourManagement Committee of Mizuho Financial Group discusses

principal banking subsidiaries, are responsible for discussing

and coordinates matters relating to basic policies and operations

and coordinating overall management of their individual credit

in connection with credit risk management and matters relating

portfolios and transaction policies towards obligors. The respective

to credit risk monitoring for the group. Under the control of the

Chief Risk Officers of our principal banking subsidiaries areGroup CRO of Mizuho Financial Group, the Credit Risk Management

responsible for matters relating to planning and implementing

Department and the Risk Management Department jointly monitor,

credit risk management. The credit risk management departments

analyze, and submit suggestions concerning credit risk and formulateof our principal banking subsidiaries are in charge of planning andand execute plans in connection with basic matters pertaining toadministering credit risk management and conducting credit risk

credit risk management.

measuring and monitoring. The departments regularly present
reports regarding their risk management situation to Mizuho

Our principal banking subsidiaries and other core group companies

Financial Group. The credit departments of our principal banking

manage their credit risk according to the scale and nature of theirsubsidiaries determine policies and approve/disapprove individual

exposures in line with basic policies set forth by Mizuho Financialtransactions in terms of credit review, credit management andGroup. The Board of Directors of each company determines key

collection from obligors in accordance with the lines of authority set

matters pertaining to credit risk management.

forth respectively by our principal banking subsidiaries. In addition,
our principal banking subsidiaries have established internal audit
groups that are independent of the business departments in order toensure appropriate credit risk management.

Method of credit risk management
We have adopted two different but mutually complementaryclient. Through this process, we curb losses in the case of a credit

approaches to credit risk management. The first approach is

event. The second is “credit portfolio management,” in which we“individual credit management,” in which we manage the process

utilize statistical methods to assess the potential for losses related tofor each individual transaction and individual obligor from execution

credit risk. Through this process, we identify credit risks and respond

until collection, based on our assessment of the credit quality of theappropriately.

Individual credit management
1. Credit code

2. Internal rating system

The basic code of conduct for all of our executive officers andOne of the most important elements of the risk management

employees engaged in the credit business is set forth in our credit

infrastructure of our principal banking subsidiaries is the use ofcode. Seeking to fulfill our mission and social responsibilities, ouran internal rating system that consists of credit ratings and poolbasic policy for credit business is determined in light of fundamental

allocations. Credit ratings consist of obligor ratings which represent

principles focusing on public welfare, safety, growth, and profitability.

the level of credit risk of the obligor, and transaction ratings which
represent the possibility of ultimately incurring losses related toeach individual claim by taking into consideration the nature of any
collateral or guarantee and the seniority of the claim. In principle,
obligor ratings apply to all obligors and are subject to regularreviews at least once a year to reflect promptly the fiscal period
end financial results of the obligors, as well as special reviews asrequired whenever an obligor’s credit standing changes. This enables
our principal banking subsidiaries to monitor both individual105

Mizuho Financial GroupAppendix Risk management structure

obligors and the status of the overall portfolio in a timely fashion.

based on obligor specific characteristics such as type of business

Because we consider obligor ratings to be an initial phase of the(corporation or individual) and geography (in Japan or outside

self-assessment process regarding the quality of our loans and off-

Japan). We categorize our rating models for companies in Japanbalance-sheet instruments, such obligor ratings are closely linked

into those for large companies and those for small and medium-to the obligor classifications and are an integral part of the process

sized companies. The former consist of 13 models according tofor determining the provision for loan losses and charge-offs in our

industry-specific factors, while the latter consist of three models. For

self-assessment of loans and off-balance-sheet instruments. (Please

companies outside Japan, we utilize nine models.

refer to the chart below regarding the connection between obligor
ratings, definition of obligor classifications of self-assessments,

These were developed by the Credit Risk Management Department

claims disclosed under the FRA and non-accrual, and past due &based on a statistical methodology and approved by the Chief Risk

restructured loans).

Officer.

To assign obligor ratings, we have a quantitative evaluation system

Pool allocations are applied to small claims that are less than a(rating model) in place to enable proper assessment of an obligor’s

specified amount by pooling obligors and claims with similar risk

credit standing. The system gives a quantitative rating to an obligor

characteristics and assessing and managing the risk for each such onnection between obligor ratings, definition of obligor classifications of self-assessments, claims disclosed under the FRA andC
non-accrual, past due & restructured loans
Definitionof obligor
classifications ofself-assessment

Obligorratings(major
category)
A1—A3

Obligors whose certainty of debt
fulfillment is very high, hence their levelof credit risk is excellent.

B1—B2

Obligors whose certainty of debt
fulfillment poses no problems for theforeseeable future, hence their level ofcredit risk is sufficient.

C1—C3

Obligors whose certainty of debt
fulfillment and their level of credit riskpose no problems for the foreseeable
future.

D1—D3Obligors whose current certainty of debt
fulfillment poses no problems, however,their resistance to future environmental
changes is low.

Normalobligors

E1
Watch
obligors

Intensive control
obligors

Substantiallybankrupt
obligors

Bankrupt
obligors

Definition of ratings

E2

R

F1

G1

H1

Category I(noncategorized)

Obligors who have not yet gone legallyor formally bankrupt but who aresubstantially bankrupt because they are
in serious financial difficulties and are notdeemed to be capable of restructuring.

Obligors who have already gonebankrupt, from both a legal and/or formal
perspective.

Category III

Category IV(noncollateralized)

All credit given
to normal
obligors.

Obligors who require close watching
going forward because there areproblems with their borrowings, such as
reduced or suspended interest payments,
problems with fulfillment such as defacto postponements of principal orinterest payments, or problems with theirfinancial positions as a result of theirpoor or unstable business conditions.
Obligors who are not yet bankrupt but arein financial 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).

Category II

Non-accrual,
past due &restructured
loans

Normal claims

Credit given to
watch obligors
other thanthose included
in category I.

Credit to
obligors whichhas pledged
collateral oris covered byguarantees,consideredof highquality, suchas deposit
collateral.

Claimsdisclosed
under the FRA

Claims for
specialattention

Credit given
to intensive
control
obligors otherthan thoseincluded in
category I andcategory II.
Credit to
obligors whichis coveredby generalcollateral,such as realestate andguarantees.

The difference
between theassessedvalue andmarket valueof collateralon credit tobankrupt andsubstantiallybankrupt
obligors (i.e.,
the portion ofloans for which
final collection
problems orlosses are
anticipated).

Restructured
loans
Loans past due
for 3 months
or moreClaims withcollection risk
Non-accrualdelinquent
loans
Credit tobankrupt andsubstantiallybankrupt
obligors, otherthan thosein categoryI, category II
and category
III (credit thatis judged to be
unrecoverable
or without
value).

Claims against
bankrupt andsubstantiallybankrupt
obligors, andequivalent
Loans tobankrupt
obligors

2019 Integrated Report106Appendix

pool. Our principal banking subsidiaries efficiently manage credit

extended to watch obligors when the following conditions are met:risk and credit screening by dispersing a sufficient number of small

we are aiming for business reconstruction or financial support;

claims within each pool. Our principal banking subsidiaries generally

and lending conditions were amended favorably to the client such

review the appropriateness and effectiveness of our approach toas allowing interest rate reduction, postponement of principal

obligor ratings and pool allocations once a year in accordance withrepayment/interest payment, debt forgiveness, etc.

predetermined procedures, which is audited by the Internal Audit
Group.

An overdue loan is defined as a loan for watch obligors of which
the loan principal or interest is overdue for three months or more

Mizuho Financial Group defines a restructured loan as a loan

following the contractual payment date.

Methods for reserves and write-offs
Normalobligors

Calculate the value of estimated loss based on the probability of failure over the coming year for loans by obligor rating and appropriate it for the
General reserve for possible losses on loans.

Watch
obligors

Calculate the estimated loss on loans based on the probability of failure over the next three years and appropriate it for the general reserve forpossible losses on loans. Further, in regard to special attention obligors, for obligors with large claims more than a certain amount, if the cash
flow from the return of principal and interest payments can reasonably be estimated, set up a reserve under the DCF method.

Intensive
control
obligors

Substantiallybankrupt
obligors

Provide an amount for specific reserve for possible losses on loans as calculated by one of the following methods after deducting amounts
anticipated to be recoverable from the sale of collateral held against the claims and from guarantors of the claims: a) an amount calculated basedon the overall ability of the obligor to pay, or b) the estimated loss calculated on the basis of the balance and the probability of failure over the
next three years.
Further, for obligors with large claims more than a certain amount, if the cash flow from the return of principal and interest payments canreasonably be estimated, set up a reserve under the DCF method.

Provide the entire balance after deducting amounts anticipated to be recoverable from the sale of collateral held against the claims and fromguarantors of the claims for specific reserve for possible losses on loans, or write-off the entire balance.

Bankrupt
obligors

3. Self-assessment, provision for loan losses and off-balance-sheet
instruments, and write-offs

Prevention of new impaired loans through routine credit

We conduct self-assessment of assets to ascertain the status of assets

management is important in maintaining the quality of our overallboth as an integral part of credit risk management and in preparationloan assets. Credit review involves analysis and screening of eachfor appropriate accounting treatment, including provision for loan

potential transaction within the relevant business department. In

losses and off-balance-sheet instruments and write-offs. During thecase the screening exceeds the authority of the department, theprocess of self-assessment, obligors are categorized into certain

credit department in charge at Head Office carries out the review. We

groups taking into consideration their financial condition and their

have specialized credit departments for different industries,

ability to make payments, and credit ratings are assigned to allbusiness sizes, and regions, which carry out timely and specialized

obligors, in principle, to reflect the extent of their credit risks. The

examinations based on the characteristics of the client and theirrelated assets are then categorized into certain classes based on themarket, and provide appropriate advice to the business department.

risk of impairment. This process allows us to identify and control the

In addition, in the case of obligors with low credit ratings and highactual quality of assets and determine the appropriate accounting

downside risks, the business department and credit department

treatment, including provision for loan losses and off-balance-sheet

jointly clarify their credit policy and in appropriate cases assist the

instruments and write-offs. Specifically, the credit risk management

obligors at an early stage in working towards credit soundness.

department of each of our principal subsidiaries is responsible
for the overall control of the self-assessment of assets of therespective banking subsidiaries, cooperating with the administrative
departments specified for each type of asset, including loan portfolios
and securities, in executing and managing self-assessments. In ourassessment of the probability of obligor bankruptcy, we deem anobligor that is rated as being insolvent or lower as being bankrupt.

107

4. Credit review

Mizuho Financial GroupAppendix Risk management structure

Credit portfolio management
1. Risk measurement
We use statistical methodologies that involve a risk measurement

guarantees; deposits and foreign exchange; derivatives including

system (enterprise value corporate valuation model, holding period

swaps and options; off-balance sheet items including commitments;of one year) to manage the possibility of losses by measuring theand other assets involving credit risk.

expected average loss for a one-year risk horizon (“Expected Loss”)
and the maximum loss within a certain confidence interval (“Credit

In establishing transaction spread guidelines for credit transactions,

VAR”). The difference between Expected Loss and Credit VAR is

we aim to ensure an appropriate return from the transaction in lightmeasured as the credit risk amount (“Unexpected Loss”). The riskof the level of risk by utilizing credit cost data as a reference. Also,

measurement system covers the following account items reported by

we monitor our credit portfolio from various perspectives and set

each Mizuho Financial Group company: credit transactions including

guidelines noted below so that losses incurred through a hypotheticalloans and discounts; securities; clients’ liabilities for acceptances andrealization of the full Credit VAR would be within the amount of risk
capital and loan loss reserves.
2. Risk control methods

Loss distribution

Our principal banking subsidiaries recognize the risk arising from

Frequency

allowing unexpected loss to become too large. Our principal banking
subsidiaries manage “credit concentration risk,” which stems from
granting excessive credit to individual corporate groups, in line with

Averageour specific guidelines. Our principal banking subsidiaries also set
the credit limit based on verification of status of capital adequacy. In
cases where the limit is exceeded, our principal banking subsidiaries
This amount depends onthe confidence interval. For
example, if the confidence
interval is set at 99%, it is
the 9,900th smallest loss
figure out of 10,000 trials.

will formulate a handling policy and/or action plan. In addition to
the above, our principal banking subsidiaries monitor total credit
exposure, credit exposure per rating, credit concentration per
individual corporate group, geographic area, and business sector to
make a periodical report to the Balance Sheet & Risk Management
Committee and the Credit Committee.

Loss amountCredit VAR
Expected
Loss

Unexpected Loss2019 Integrated Report108Appendix

Market risk management
Basic approach
We define market risk as the risk of losses incurred by the group due

Mizuho Financial Group manages market risk for the Mizuho groupto fluctuations in interest rates, stock prices, and foreign exchange

as a whole. Specifically, Mizuho Financial Group establishes therates. Our definition includes the risk of losses incurred when it

fundamental risk management policy for the entire group, manages

becomes impossible to execute transactions in the market because

the market risk of our principal banking subsidiaries and other coreof market confusion or losses arising from transactions at prices thatgroup companies, and monitors how the group’s market risk is being

are significantly less favorable than usual.

managed as a whole.

Market risk management structure
Our Board of Directors determines basic matters pertaining to market

As for the situation of market risk, the Risk Management Department

risk management policies. The Risk Management Committee ofsubmits reports to the President and Group CEO on a daily basis

Mizuho Financial Group broadly discusses and coordinates mattersand to the Board of Directors on a regular basis. For the purpose

relating to basic policies in connection with market risk management,of managing the market risk of our principal banking subsidiaries

market risk operations, and market risk monitoring. The Group CRO

and other core group companies, the Department regularly receivesof Mizuho Financial Group is responsible for matters relating toreports from each of them to properly identify and manage theirmarket risk management planning and operations.

market risk. These subsidiaries and core group companies, which
account for most of the Mizuho group’s exposure to market risk,

The Risk Management Department of Mizuho Financial Group isestablish their basic policies based on ours, and their Boards of

responsible for monitoring market risk, reporting and analysing,Directors determine important matters relating to market risk

making proposals, setting limits and guidelines, and formulating andmanagement.

implementing plans relating to market risk management.

Market risk management method
To manage market risk, we set limits that correspond to risk capitalstrength represented by capital and other indicators. The amount ofallocations according to the risk profile of each of our principal

risk capital allocated to market risk corresponds to value-at-risk (thebanking subsidiaries and other core group companies and thereby“VAR”) and additional costs that may arise in order to close relevant

prevent the overall market risk we hold from exceeding our financial

positions.

Setting limits

Monitoring

When the above mentioned limits are set, various factors are

To provide a system of mutual checks and balances in market

taken into account, including business strategies, historical limit

operations, we have established middle offices specializing in risk

usage ratios, risk-bearing capacity (profits, equity capital, and risk

management that are independent of front offices which engage inmanagement framework), profit targets and the market liquidity ofmarket transactions and of back offices which are responsible forthe products involved. The limits are discussed and coordinated bybook entries and settlements. When VAR is not adequate to control

the Risk Management Committee, discussed further by the Executive

risk, the middle offices manage risk using additional risk indices,Management Committee and then determined by the President &carry out stress testing, and set stop loss limits as needed. We

Group CEO. For trading and banking activities, we set limits for VAR

monitor market liquidity risk for individual financial products in theand for losses. For banking activities, we set position limits based

market while taking turnover and other factors into consideration.

on interest rate sensitivity (10 BPV) as needed. An excess over anyof these limits is immediately reported and addressed according to a
pre-determined procedure.

109

Mizuho Financial GroupAppendix Risk management structure

The following graph shows VAR figures of our trading activities for

Status of Mizuho Financial Group’s market risk

the fiscal year ended March 31, 2019:

Value-at-risk
We use the VAR method, supplemented with stress testing, as ourprincipal tool to measure market risk. The VAR method measuresthe maximum possible loss that could be incurred due to market
movements within a certain time period (or holding period) andFiscal 2018 VAR (trading activities)(VAR: ¥ billion)
10
9degree of probability (or confidence interval).

8
7

Trading activities

6

VAR related to our trading activities is based on the following:5• historical simulation method;4• confidence interval: one-tailed 99.0%;

3• holding period of one day; and2• historical observation period of three years.

1

VAR by risk category (trading activities)(¥ billion)

Fiscal 2016
MaximumInterest rate

2.0

3.6

1.0

1.0

Foreign exchange

0.5

1.6

0.1

0.1

Equities

0.4

3.2

0.1

0.9

Commodities

0.0

0.0

0.0

0.0

Total

3.3

5.8

2.3

2.6

MinimumInterest rate

1.7

Foreign exchange

0.4

Equities

03/29/2019

03/10/2019

02/19/2019

01/31/2019

01/12/2019

12/24/2018

12/05/2018

11/16/2018

10/28/2018

10/09/2018

09/20/2018

09/01/2018

08/13/2018

07/25/2018

07/06/2018

06/17/2018

05/29/2018

At March 31

Fiscal 2017
Maximum

The following table shows VAR figures of our trading activities for the
fiscal years indicated:

Daily average

Daily average

05/10/2018

and as of March 31, 2017, 2018, and 2019:04/21/2018

risk category for the fiscal years ended March 31, 2017, 2018, and 201904/02/2018

0

The following tables show the VAR related to our trading activities by

Minimum

At March 31

2.5

1.0

2.2

1.2

0.1

0.1

0.6

2.4

0.3

0.5

Commodities

0.0

0.0

0.0

0.0

Total

3.0

6.2

2.2

3.0

Daily average

Maximum

Minimum

At March 31

Interest rate

2.0

2.9

1.3

2.0

Foreign exchange

0.8

2.8

0.1

0.3

Equities

0.6

7.7

0.2

0.5

Commodities

0.0

0.0

0.0

0.0

Total

3.4

9.2

2.4

2.6

VAR (trading activities)(¥ billion)

Fiscal 2016

Fiscal 2017

Fiscal 2018

ChangeAs of fiscal year end

2.6

3.0

2.6

(0.3)

Maximum

5.8

6.2

9.2

3.0

Minimum

2.3

2.2

2.4

0.2

Average

3.3

3.0

3.4

0.3

Fiscal 20182019 Integrated Report110Appendix

Non-trading activities• VAR does not capture all complex effects of various risk

The VAR related to our banking activities is based on the same

factors on the value of positions and portfolios and could

conditions as those of trading activities, but the holding period is one

underestimate potential losses.

month. In addition, as for risk management of banking activities, it isimportant to properly measure interest rate risk so that we calculate

Cross-shareholdings portfolio management activities

interest risk using appropriate methods such as recognizing demand

We take the market risk management approach with use of VAR anddeposits as “core deposits.”

risk indices for cross-shareholdings portfolio management activities
to properly manage stock price risk. Specifically, we monitor

The following graph shows the VAR related to our banking activities

VAR measurements and the state of risk capital on a daily basis.

excluding our cross-shareholdings portfolio for the year ended March

Moreover, in order to control stock price risk, we are working on the31, 2019:

reduction in cross-shareholdings through careful negotiations withcounterparties.

Fiscal 2018 VAR (banking activities)
Back testing
VAR
Interest rate on five-year government bonds(VAR: ¥ billion)(%)

In order to evaluate the effectiveness of market risk measurements

350

0.5

calculated using the VAR method, we carry out regular back tests to

300

0.4

compare VAR with assumptive profits and losses. Assumptive profits

0.3

250

0.2

200

and losses accounts for general market risk. The graph below shows
daily VAR of trading activities for the fiscal year ended March 31,
2019 and the corresponding paired distribution of profits and losses.

0.1

We had zero case where losses exceeded VAR during the period.

0.0

In addition, we conduct evaluations of the assumptions related to-0.1

the VAR models. Based on the number of times losses exceeded

50

-0.2

VAR through back testing and the results of the evaluation of the

0

-0.3

model assumptions, we will make adjustments to the models as

150

appropriate. Changes to fundamental portions of the VAR models are

03/29/2019

03/10/2019

02/19/2019

01/31/2019

01/12/2019

12/24/2018

12/05/2018

11/16/2018

10/28/2018

10/09/2018

09/20/2018

09/01/2018

08/13/2018

07/25/2018

07/06/2018

06/17/2018

05/29/2018

05/10/2018

04/21/2018

04/02/2018

100

subject to the approval of our Group Chief Risk Officer.

Fiscal 2018 back testing
The following table shows the VAR figures relating to our banking

Assumed profit or loss (¥ billion)
6

activities for the fiscal years indicated:
4

VAR (banking activities)
Fiscal 2016(¥ billion)

Fiscal 2017

Fiscal 2018

ChangeAs of fiscal
year end

292.7

268.4

194.4

(74.0)

Maximum

397.5

307.2

298.5

(8.7)

Minimum

247.4

210.8

194.4

(16.3)

Average

331.0

267.8

255.5

(12.2)

2

0

(2)

(4)

Characteristics of VAR model
VAR is a commonly used market risk management technique.
However, VAR models have the following shortcomings:• By its nature as a statistical approach, VAR estimates possible

(6)

0

1

2

3

4

5
6
VAR (¥ billion)

Note: We conduct our back testing and assess the number of cases where losses exceed
VAR based on a 250 business day year. The expected average number of instanceswhere one-day trading losses exceeded VAR at the 99% confidence level is 2.5.

losses over a certain period at a particular confidence level
using past market movement data. Past market movement,
however, is not necessarily a good indicator of future events,

Stress testing

particularly potential future events that are extreme in nature.

Because the VAR method is based on statistical assumptions, we• VAR may underestimate the probability of extreme market

conduct stress testing to simulate the levels of losses that could

movements.

be incurred in cases where the market moves suddenly to levels• The use of a 99.0% confidence level does not take account of,that exceed these assumptions. The stress testing methods we use

nor makes any statement about, any losses that might occur

include the calculation of losses under scenarios in which stresses

beyond this confidence level.

are applied to interest rate risk and stock price risk based on current
and projected economic conditions, historical market events, etc.

111

Mizuho Financial GroupAppendix Risk management structure

Liquidity risk management
Basic approach
We define liquidity risk as the risk of losses arising from funding

as a whole. Specifically, Mizuho Financial Group establishes thedifficulties due to a deterioration in our financial position that

fundamental liquidity risk management policy for the entire group,

makes it difficult for us to raise necessary funds or that forces

manages the liquidity risk of our principal banking subsidiaries andus to raise funds at significantly higher interest rates than usual.

other core group companies, and monitors how the group’s liquidity

Mizuho Financial Group manages liquidity risk for the Mizuho grouprisk is being managed as a whole.

Liquidity risk management structure
Our Board of Directors determines basic matters pertaining tomatters relating to planning and running cash flow management

liquidity risk management policies. The Risk Management Committee

operations, and the Financial Planning Department is responsibleof Mizuho Financial Group broadly discusses and coordinates

for monitoring and adjusting the cash flow management situation

matters relating to basic policies in connection with liquidity risk

and for planning and implementing cash flow management tomanagement, operations, and monitoring, and proposes responses

maintain appropriate funding liquidity. Reports on liquidity risk

to emergencies such as sudden market changes. The Group Chiefmanagement are submitted to the Risk Management Committee

Risk Officer of Mizuho Financial Group is responsible for mattersand the Balance Sheet Management Committee (each of which is arelating to liquidity risk management planning and operations.

business policy committee), the Executive Management Committee

The Risk Management Department of Mizuho Financial Group is

and the President & Group CEO on a regular basis.

responsible for monitoring liquidity risk, reporting and analysing,making proposals, and formulating and implementing plans relating

Our principal banking subsidiaries and other core group companies

to liquidity risk management. In addition, the Group Chief Financial

also establish their basic policies on liquidity risk management to

Officer of Mizuho Financial Group is additionally responsible forproperly identify and manage liquidity risk.

Liquidity risk management method
We manage liquidity risk with the use of “liquidity risk management

testing to verify the sufficiency of liquidity reserve assets and theindicators” and “liquidity categorization.” The former is determined

effectiveness of countermeasures against a possible outflow of funds

for the purpose of managing limits on funds raised in the market

during a stress event. The results of stress testing are used for cash

considering our fund raising capabilities, and the latter is determinedflow management operations.

based on our funding conditions. We also carry out liquidity stress

Liquidity risk management indicators

Liquidity stress testing

Limits on funds raised in the market are set based on a number of

We carry out stress testing regularly based on market-wide factors,

time horizons taking into account characteristics and strategies ofidiosyncratic factors of the group, and a combination of both types

each of our principal banking subsidiaries and other core groupof factors to verify the sufficiency of liquidity reserve assets and thecompanies. Such limits are discussed and coordinated by theeffectiveness of our liquidity contingency funding plans. Furthermore,

Risk Management Committee, discussed further by the Executive

we utilize stress testing for evaluating the appropriateness of ourManagement Committee, and determined by the President & Groupannual funding plan.

CEO. An excess over any of these limits is immediately reported andaddressed according to a pre-determined procedure.

Liquidity categorization
We have established a group-wide framework of liquidity risk stages
such as “normal,” “anxious” and “crisis,” which reflects funding
conditions. In addition, we set early warning indicators (“EWIs”)
and monitor on a daily basis to manage funding conditions. The
EWIs we use include stock prices, credit ratings, amount of liquidity
reserve assets such as Japanese government bonds, and our funding
situation.

2019 Integrated Report112Appendix

Operational risk management
Basic approach
We define operational risk as the risk of losses that may be incurred

reputational risk, we have separately determined the fundamental

resulting from inadequate or failed internal processes or systems,

risk management policies for these different types of risk. We

human error, or external events. We control operational risk

manage the operational risk associated with our principal banking

management for the Mizuho group as a whole. Considering thatsubsidiaries and other core group companies while monitoring theoperational risk includes information technology risk, operations risk,state of group-wide operational risk.

legal risk, human capital risk, tangible asset risk, regulatory risk, andDefinition

Principal risk management methods

Information
technology risk

Information technology risk (“IT risk”) shall refer to the riskthat problems (e.g. malfunctions, disruptions, etc.) with thecomputer systems or improper use of the computers in thesesystems, which cause disruptions of the services provided tocustomers, or have significant impact on settlement systems,
etc., will result in losses for customers, and the incurrence oflosses (tangible or intangible) by our group companies.

• Identify and evaluate the risk by setting specific standards that need
to be complied with and implementing measures tailored based on
evaluation results to reduce the risk.
• Ensure ongoing project management in systems development andquality control.
• Strengthen security to prevent information leaks.
• Strengthen capabilities for rapidly and effectively dealing withcyberattacks.
• Improve effectiveness of emergency responses by improving
backup systems and holding drills.

Operations risk

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

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs led by Head Office.
• Introduce information technology, office automation, andcentralization for operations.
• Improve the effectiveness of emergency responses by holding drills.

Legal risk

Risk that the group may incur losses due to violation of laws
and regulations, breach of contract, entering into improper
contracts or, other legal factors.

• Review and confirm legal issues, including the legality of material
decisions, agreements and external documents, etc.
• Collect and distribute legal information and conduct internal training
programs.
• Analyze and manage issues related to lawsuits.

Human capital risk

Risk that the group may incur losses due to turnover or lossof personnel, deterioration of morale, inadequate
development of personnel, inappropriate working schedules,
inappropriate working and safety environment, inequality or
inequity in human resource management, or discriminatory
conduct.

• Conduct employee satisfaction surveys.
• Understand the status of working hours.
• Understand the status of vacation days taken by personnel.
• Understand the status of voluntary resignations.
• Understand the status of the stress check system.

Tangible asset risk

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

• Manage the planning and implementation of construction projects
related to the repair and replacement of facilities.
• Identify and evaluate the status of damage to tangible assets caused
by natural disasters or other causes, and respond appropriately tosuch damage.

Regulatory risk

Risk that the group may incur losses due to changes invarious regulations or systems, such as those related to law,
taxation, and accounting.

• Understand important changes in regulations or systems that havesignificant influence on our business operations or financial
condition in a timely and accurate manner.
• Analyze degree of influence of regulatory changes and establish
countermeasures.
• Continuously monitor our regulatory risk management mentioned
above.

Reputational risk

Risk that the group may incur losses due to damage to ourcredibility or the value of the “Mizuho” brand when market
participants or others learn about, or the media reports on,
various adverse events, including actual materialization ofrisks or false rumors.

• Establish framework to identify and manage, on an integrated basis,
information that may have a serious impact on group management
and respond to such risk in a manner appropriate to its scale andnature.
• Swiftly identify rumors and devise appropriate responses dependingon the urgency and possible impact of the situation to minimize
possible losses.

We also recognize and manage information security risk and compliance risk, which constitute a combination of more than one of the above components, as operational
risk.

113

Mizuho Financial GroupAppendix Risk management structure

Operational risk management structure
Our Board of Directors determines basic matters pertaining tomarket risk, reporting and analysing, making proposals, setting limits

operational risk management policies. The Risk Management

and guidelines, and formulating and implementing plans relating toCommittee of Mizuho Financial Group broadly discusses andoperational risk management.

coordinates matters relating to basic policies in connection with
operational risk management, operational risk operations, andOur principal banking subsidiaries and core group companies

operational risk monitoring. The Group Chief Risk Officer of Mizuho

establish their basic policies on operational risk management, andFinancial Group is responsible for matters relating to operational

their Boards of Directors determine important matters relating torisk management planning and operations. The Risk Management

operational risk management.

Department of Mizuho Financial Group is responsible for monitoring

Operational risk management method
To manage operational risk, we set common rules for data gatheringsophistication and diversification of financial operations andto develop various databases shared by the group and measuredevelopments relating to information technology by utilizing control

operational risk as operational VAR on a regular basis, taking into

self-assessments and improving measurement methods.

account possible future loss events and changes in the businessenvironment and internal management.

Control self-assessments
An autonomous method of risk management in which risk inherent

We have established and are strengthening management methods

in operations is identified and, after evaluating and monitoringand systems to appropriately identify, assess, measure, monitor,risks that remain despite implementing risk control, the necessary

and control the operational risks that arise from the growing

measures are implemented to reduce risk.

Definition of risks and risk management methods
As shown in the table on the previous page, we have definedmanagement methods in accordance with the scale and nature ofeach component of operational risk, and we apply appropriate riskeach risk.

Measurement of operational risk equivalent
1. Implementation of the Advanced Measurement Approach(AMA)
We have adopted the AMA for the calculation of operational risk
equivalent in association with capital adequacy ratios based on the
Basel Accords. However, we use the Basic Indicator Approach forentities that are deemed to be less important in the measurement ofoperational risk equivalent.
The measurement results under the AMA are used not only as theoperational risk equivalent in the calculation of capital adequacy
ratios but also as Operational VAR for internal risk management

2. Outline of the AMA
Outline of the measurement system
We have established our model by taking account of four elements:
internal loss data; external loss data; scenario analysis and businessenvironment; and internal control factors (BEICFs). We calculate
the operational risk amount by estimating the maximum loss,
using a 99.9th percentile one-tailed confidence interval and a oneyear holding period as operational risk equivalent, employing bothinternal loss data (i.e., actually experienced operational loss events),
and scenario data to reflect unexperienced potential future loss
events in the measurement.

purposes for implementing action plans to reduce operational risk,
and other countermeasures.

In the measurement of operational risk equivalent as of March 31,
2019, we did not exclude expected losses and also did not recognize
the risk mitigating impact of insurance. In addition, we did not take
into account the events related to credit risk in measuring operationalrisk equivalent.

2019 Integrated Report114

Appendix

Outline of measurement model

Estimation of Frequency Distribution and Loss Severity

Operational risk equivalent is calculated as a simple sum of those risk

Distribution

amounts related to the seven loss event types defined in the CapitalFrequency Distribution is estimated by applying information on

Adequacy Notice from Japan’s Financial Services Agency, large-scaleoccurrence frequency of both internal loss data and scenario data tonatural disasters, and litigation. In the measurement of operational

Poisson Distribution. Loss Severity Distribution is generated as therisk equivalent as of March 31, 2019, we did not reflect the correlation

result of combining, through a statistical approach (Extreme Valueeffects among operational risk related to each of the seven loss event

Theory), of the actual distribution for the low severity distribution

types.

portion created by internal loss data and another loss distribution(Log-normal Distribution or Generalized Pareto Distribution) for thehigh severity distribution portion created by scenario data.

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

Outline of measurement modelInternal loss data

Business environment andinternal control factors

External loss data

Scenario analysis

Scenario data

Litigation data

Risk amount for litigation risk

Large-scale natural
disaster scenario data

Risk amount for large-scale
natural disasters

Risk amount for internal fraud

Distribution of
scenario data

Unifieddistribution

Frequency
distribution
information

Frequency
distribution
information

Frequency
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Risk amount for external fraud

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products, and business practices
Risk amount for damage tophysical assets

Risk amountCalculate risk amountby seven loss event
types defined by BIS

Risk amount for businessdisruption and system failure
Risk amount for execution,delivery, and process management

Operational VAR(Total operational risk amount)

115

Mizuho Financial GroupAppendix Risk management structure

Operational risk of large-scale natural disasters

Setting units for scenario analysis

Monte-Carlo simulation is applied to the datasets expressed as a

In order to ensure completeness and sufficiency, we set units thatcombination of the probability of occurrence of large-scale natural

are commonly applied across group entities that adopt AMA (thedisasters and the probable loss amount in case of such occurrence,“Group Entities”) by referencing and categorizing risk scenarios

as opposed to estimating Frequency Distribution and Loss Severity

recognized through control self-assessment, internal loss data ofDistribution.

the Group Entities, external loss data, etc. Then each of the Group
Entities selects the unit on which scenario analysis is conducted fromOperational risk of litigation

the units established on a group-wide basis in accordance with its

Each litigation is converted into data according to the profile of thebusiness activities and operational risk profile.

individual litigation to which Monte-Carlo simulation is applied, as
opposed to estimating Frequency Distribution and Loss Severity

Estimation of occurrence frequency

Distribution.

Basic occurrence frequency (once a year) is calculated for eachscenario analysis unit. If a certain scenario analysis unit has relevant

Verificationinternal loss data of a pre-determined threshold amount or above,

We confirm the appropriateness of the measurement model by

its basic occurrence frequency is calculated based on such data, andverifying it, in principle, semi-annually.

if not, the basic occurrence frequency (the occurrence frequency per
year of losses at or above a pre-determined threshold) is calculated

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

with reference to the situation of occurrence of internal loss data ofless than the threshold amount and/or external loss data. The basic
occurrence frequency is then adjusted within a pre-determined range
for the purpose of reflecting the most recent BEICFs to determine thefinal occurrence frequency.
Estimation of Loss Severity Distribution
In order to estimate Loss Severity Distribution, we use a pre-As for external loss data, we refer to data publicly reported bydetermined series of severity ranges. Basic Loss Severity Distribution

domestic and overseas media, and such data are reflected in theis calculated for each scenario analysis unit as an occurrence ratio

estimation of occurrence frequency and Loss Severity Distribution in(in percentile figures) of loss at each severity range when losses

the process of scenario analysis. In addition, BEICFs are utilized asat or above a pre-determined threshold occurred, with referenceindices to adjust occurrence frequency and Loss Severity Distribution

to transaction amount data, external loss data, etc. Then the basicin the process of scenario analysis.

severity distribution is adjusted, if necessary, from the viewpointof statistical data processing to determine the final Loss Severity

We categorize scenario analysis into four approaches in accordanceDistribution.

with the characteristics of each loss event type and risk management
structures.

Creation of scenario data
For each scenario analysis unit, scenario data is generated as a series

Approach

Loss event type(s) to be applied

A

Internal fraud / external fraud / clients, products, and businesspractices / execution, delivery, and process management

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failureof combinations of occurrence frequency per year at each severity
range, based on the final occurrence frequency and the final Loss
Severity Distribution.

Example of scenario data
Final loss severity distribution
Severity range (¥ billion)

At Mizuho Financial Group, loss event types to which Approach A is
0.1

applied account for a considerable amount of operational risk. The
detailed process of Approach A is explained here as a typical exampleof scenario analysis.

0.5

1

5

Total

10

Occurrence ratio (%)

40

30

15

10

5

100

Occurrence frequency(times)

0.4

0.3

0.15

0.1

0.05

1

Final occurrence frequency(As of July 1, 2019)2019 Integrated Report116Appendix

Business continuity management

In light of our social responsibility and the important role Mizuho

These offices function as a controller in the event of an emergency

plays within the social infrastructure as a financial institution,that may materially impact business management, by collecting andensuring the continuity of financial settlement functions and the swift

analyzing information, formulating countermeasures, and taking

and efficient recovery of operations in the event of an emergency isother necessary action. In addition, their role includes collecting andone of our top priorities within the group.

analyzing signs and indicators of a potential crisis, and reporting
their findings promptly to management.

To improve business continuity management practices across thegroup, we assess the potential impact of emergencies beforehandParticular focus is placed on strengthening our response to naturaland formulate necessary countermeasures in order to minimize suchdisasters, covering not only earthquakes and tsunamis but also

impact, and to ensure the swift and efficient recovery of operations.

volcanic eruptions, large-scale wind or water damage, and facilitating
initial responses to acts of terrorism and riots. We also focus on

One of the ways in which we are working to achieve this is by

responses to cyberattacks that have been occurring with increasing

establishing Crisis Management Offices within Mizuho Financial

frequency around the world.

Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
that are responsible for business continuity management and ourAlso, to secure the effectiveness of our measures to deal withresponses in the event of emergency.

emergencies, group-wide practice drills and training sessions are
conducted on an annual basis.

117

Mizuho Financial GroupSenior executives

Mizuho Financial Group
Members of the Board of Directors
Executive Officers as Defined in
the Companies Act

Executive Officers as Defined in
Our Internal Regulations

Tatsufumi Sakai

President & CEO(Representative Executive Officer)

Managing Executive Officer

Toshitsugu Okabe

In charge of Specific Business of IT& Systems Group,
President & CEO of Mizuho Information & ResearchInstitute

In charge of Specially Assinged Matters

Takuo Murakami

Daisaku Abe

Joint Head of Asset management Company*

Deputy Chairman & Executive Officer

Deputy Chairman & Executive Officer

Group CEO

Head of Internal Audit Group / In charge of Specially
Assigned Matters

Satoshi Ishii

Satoshi Miyazaki

Senior Managing Executive Officer

Yasumasa Mukai

Deputy President & Executive Officer

Managing Executive Officer

Hiroshi Nagamine

Managing Executive Officer

Head of Europe, Middle East and Africa

Masayuki Sugawara

In charge of Western Japan (Kinki, Chugoku, andShikoku regions)Managing Executive Officer

Makoto Umemiya

Naofumi Fuke

Masao Kanamaru

Head of Financial Control & Accounting Group (Group CFO)

Deputy Head of Retail & Business Banking Company

Joint Head of Global Corporate Company* / Joint
Head of Global Products Unit*

Chief Digital Innovation Officer / Head of IT & Systems Group /Head of Operations Group (CDIO & Group CIO & Group COO)

Managing Executive Officer

Senior Managing Executive Officer

Motonori Wakabayashi

Teiji Teramoto

Head of Research & Consulting Unit / Head of Risk
Management Group (Group CRO), President & CEO
of Mizuho Research Institute (appointed on June 28)

Head of the Americas

Managing Executive Officer

Hiroaki Ehara

Managing Executive Officer

Head of Human Resources Group (Group CHRO)

Yasuhiro Sato

Member of the Board of Directors
ChairmanHisaaki Hirama

Senior Managing Executive Officer

Kenji Fujii

Head of East Asia

Managing Executive Officer

Hidekatsu TakeManaging Executive Officer

Head of Asia & Oceania excl. East Asia

Managing Executive Officer

Naoto Takahashi

Yasuto Hamanishi

In charge of Specific Business of Strategic PanningGroup / General Manager of Next-Generation IT
Systems Coordination Project Team / Joint Head of
Strategic Planning Group* / Joint Head of Financial
Control & Accounting Group*

Joint Head of Research & Consulting Unit* / Joint
Head of Risk Management Group*Managing Executive Officer

Joint Head of Corporate & Institutional Company* /Joint Head of Global Corporate Company* / Joint Headof Global Products Unit*Managing Executive Officer

Hiroshi Itabashi

Managing Executive Officer

Member of the Board of Directors

Taiji Kumagai

Masahiro Kosugi

Joint Head of Compliance Group*

Hiroyuki Iijima

Masaya Oishi

In charge of Specific Business of Retail & BusinessBanking Company

Member of the Board of Directors

Tetsuo Seki

Member of the Board of Directors (Outside Director)

Tatsuo Kainaka

Member of the Board of Directors (Outside Director)

Hirotake Abe

Member of the Board of Directors (Outside Director)

Masami Yamamoto

Member of the Board of Directors (Outside Director)

Hiroko Ota

Member of the Board of Directors (Outside Director)

Izumi Kobayashi

Member of the Board of Directors (Outside Director)

Junichi Kato
Senior Managing Executive Officer(Representative Executive Officer)
Head of Global Markets Company

Akira Nakamura
Senior Managing Executive Officer
Head of Corporate & Institutional Company

Seiji Imai

Senior Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Joint Head of Asset management Company*

Koji Arita

Managing Executive Officer

Deputy Head of Operations GroupKoji Yonei

Managing Executive Officer

Deputy Head of IT & Systems Group / Generalmanager of IT & Systems Promotion Department

Atsushi Takahashi

Managing Executive Officer

Joint Head of Financial Control & Accounting Group* /Joint Head of IT & Systems Group* / Joint Head ofOperations Group*

Joint Head of Corporate & Institutional Company*

Managing Executive Officer

Kei Umeda

Managing Executive Officer

Joint Head of Global Products Unit*

Akihito Mochizuki

Managing Executive Officer

Joint Head of Internal Audit Group*

Shoji Yakabe

Executive Officer

Joint Head of IT & Systems Group* / Joint Head ofOperations Group*

Tatsuhiro Takahashi
Executive Officer

Masatoshi Yoshihara

General Manager of IT & Systems Planning
Department

Deputy Head of Global Markets Company

Eishi Shimizu

Takafumi Matake

General Manager of Operations Planning Department

Managing Executive Officer

Managing Executive Officer

Executive Officer

Joint Head of Human Resources Group*

Yasuto Sengoku

Toshiro Egawa

Joint Head of Internal Audit Group*Managing Executive Officer

Executive Officer

Bo Kusanagi

Head of Global Corporate Company

In charge of Specific Business of Retail & BusinessBanking Company

Masahiro Otsuka

Yuzo Kanamori

Deputy Head of Asset Management Company

Head of Retail & Business Banking Company

Joint Head of Global Corporate Company* / Joint
Head of Strategic Planning Group*

Executive Officer

Executive Officer

Managing Executive Officer

Yasuhiko Ushikubo

Managing Executive Officer

Hidenobu Mukai

Deputy Head of Research & Consulting Unit, Director
Senior Managing Executive Officer of Mizuho
Research Institute (appointed on June 28)

Goji Fujishiro

In charge of Specific Business of Retail & BusinessBanking Company / Deputy Head of Digital
Innovation Strategy

Manabu Akasaka

Keisuke Saito

Shingo Suwabe

Senior Managing Executive Officer

Shuji Kojima

Head of Compliance Group (Group CCO)Managing Executive Officer

Head of Asset Management Company / Head of
Global Products Unit

Hisashi Kikuchi

Managing Executive Officer

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

Managing Executive Officer

Joint Head of Global Products Unit*

Executive Officer

Joint Head of Global Markets Company*

Executive Officer

Yasuhiro Shibata

In charge of Specific Business of IT& Systems Group,
Senior Managing Director of Mizuho Information &Research Institute

Joint Head of Global Markets Company*

Naoshi Inomata

Managing Executive Officer

Executive Officer

In charge of Specially Assinged Matters2019 Integrated Report118

Shinya Matake
Executive Officer

Joint Head of Retail & Business Banking Company*

Executive Officers(Head of Each Region Outside Japan)

Kenya Koshimizu

Teiji Teramoto

Joint Head of Global Markets Company*

Executive Managing Director

Head of the Americas

Head of Strategic Planning Group / In charge of Markets
Strategic Intelligence Dept. / Joint Head of Global Finance /Joint Head of Global Risk Management / Joint Head of
Global IT / Joint Head of Global Operations / Joint Head of
Global Compliance/ Joint Head of Global Human Resources

Masaomi Takada

Hiroshi Nagamine

Kosuke Nakamura

General Manager of Executive Secretariat

Head of Europe, Middle East and Africa

Tatsufumi Sakai

Executive Officer

Executive Officer

Senior Managing Executive Officer

Managing Executive Officer

Satoshi Yoneda

Masayuki Sugawara

General Manager of Branch Banking Department

Head of East Asia

Executive Officer

Managing Executive Officer

Tetsuya Akutsu

Hidekatsu Take

General Manager of Global Corporate Coordination
Department

Head of Asia & Oceania excl. East Asia

Executive Officer

Makoto Matsubara
Executive Officer

General Manager of Global Talent Planning andManagement Department

Fumio Tajima

Executive Officer

General Manager of Global Products Coordination
Department

Satoshi Asai

Executive Officer

Deputy Head of Financial Control & Accounting
Group / Deputy Head of Human Resources Group

Hiroya Uchimura
Executive Officer

General Manager of Credit Risk Management
Department

Nobuhiro Kaminoyama
Executive Officer

General Manager of Corporate Secretariat

Atsushi Ishisaka
Executive Officer

Managing Executive Officer

Mizuho Trust & Banking
Members of the Board of Directors
Tetsuo Iimori**

President & CEO (Representative Director)

Isao Nakamura**

Deputy President (Representative Director)
Head of Business Promotion

Naoto Takahashi**

In charge of Western Japan (Kinki, Chugoku, andShikoku regions)

Kiyoshi Miyake **Deputy President (Representative Director)

Akira Nakamura

Member of the Board of Directors

Kazutoshi Narita

Member of the Board of Directors(Audit & Supervisory Committee Member)

Toshitsugu Okabe

Member of the Board of Directors(Outside
Director, Audit & Supervisory Committee Member)

Seiji Koga

Member of the Board of Directors(Outside
Director, Audit & Supervisory Committee Member)

Mizuho Financial Group

Member of the Board of Directors (Audit &Supervisory Committee Member)

Daisaku Abe

Member of the Board of Directors (Audit &Supervisory Committee Member)

Member of the Board of Directors (Outside
Director, Audit & Supervisory Committee Member)

Masaru Ono

Eiji Ogawa

1. * indicates the omission of “for cross-entity
strategy”

Masato Monguchi

2. ** indicates directors concurrently serving as
executive officers

Member of the Board of Directors (Audit &Supervisory Committee Member)

Daisaku Abe

Member of the Board of Directors (Audit &Supervisory Committee Member)

Masayuki Satake

Member of the Board of Directors (Outside
Director, Audit & Supervisory Committee Member)

Kiyotaka Fuke

Member of the Board of Directors (Outside
Director, Audit & Supervisory Committee Member)

Mizuho Securities
Members of the Board of Directors
Koichi Iida**

President & CEO(Representative Director)

Head of Financial Control & Accounting Group / Headof IT & Systems Group / Head of Operations Group /Head of Global Finance / Head of Global IT / Head of
Global Operations

Toshio Kinoshita

Hideyuki Kawashima

Notes:

Yukio Machida

Member of the Board of Directors(Outside
Director, Audit & Supervisory Committee Member)

Member of the Board of Directors (Outside Director)

Masaru Ono

Atsushi Takahashi**

Shigeo Ohara

Hidetaka Kawakita

Member of the Board of Directors (Outside
Director, Audit & Supervisory Committee Member)

Member of the Board of Directors(Audit & Supervisory Committee Member)
Member of the Board of Directors(Outside
Director, Audit & Supervisory Committee Member)

Member of the Board of Directors

Member of the Board of Directors

Yoshikazu Nishiwaki

Member of the Board of Directors

Masahiro Otsuka

Masahiro Otsuka

Takahiko Yasuhara**
Tatsufumi Sakai

Member of the Board of Directors

Yasuhisa Hashimoto

Member of the Board of Directors

Member of the Board of Directors (Outside
Director, Audit & Supervisory Committee Member)Head of Business Promotion

Akira Nakamura

Tatsufumi Sakai

Head of Business Promotion

Deputy President (Representative Director)

Member of the Board of Directors

Member of the Board of Directors (Outside
Director, Audit & Supervisory Committee Member)

Member of the Board of Directors (Outside Director)

Deputy President (Representative Director)

Junichi Kato

Yuji Yoshimasu

Mizuho Bank
Members of the Board of Directors

Satoshi Miyazaki **Member of the Board of Directors

Head of Strategic Planning, Financial Control &Accounting Group / In charge of Executive Secretariat

Member of the Board of Directors (Outside Director)

President & CEO (Representative Director)

Chairman

Executive Managing Director

General Manager of Corporate & Institutional
Coordination Department

Koji Fujiwara **119

Yuzo Kanamori**

Deputy President (Representative Director)

Masaya Oishi**Executive Managing Director

Head of Fund Business Division / In charge of JA
Sales Dept. of Global Markets Division

3. Executive officers, excluding the directors
concurrently serving as executive officers
and executive officers responsible for global
regional operations of Mizuho Bank, have notbeen listed.
4. Executive officers, excluding the directors
concurrently serving as executive officers ofMizuho Trust & Banking and Mizuho Securities,
have not been listed.
(As of June 21, 2019, except specially noted date of
appointment)

Location of offices outside Japan (As of June 30, 2019)
Network of Mizuho Bank
Asia and Oceania(Country/Region)
Australia
Sydney Branch
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000, Australia
Tel 61-2-8273-3888

Mizuho Australia Ltd.

Level 33, 60 Margaret Street, Sydney, N.S.W. 2000, Australia
Tel 61-2-8273-3888

Cambodia

Phnom Penh Branch
13A Floor, Phnom Penh Tower, #445,
Monivong Blvd (St. 93/232) Sangkat Boeung Pralit,
Khan 7 Makara, Phnom Penh, Cambodia
Tel 855-23-964-490

China

Mizuho Bank (China), Ltd.

Mizuho Bank (China), Ltd.
Shenzhen Branch

30th Floor, Huanggang Business Center Tower1,
Jintian Road, Futian District, Shenzhen,
Guangdong Province 518046,
The People’s Republic of China
Tel 86-755-8282-9000

Mizuho Bank (China), Ltd.
Suzhou Branch

17th Floor, Genway Building, 188 Wangdun Road,
Suzhou Industrial Park, Suzhou, Jiangsu Province 215123,
The People’s Republic of China
Tel 86-512-6733-6888

Mizuho Bank (China), Ltd.
Tianjin Branch

11th Floor, International Financial Center Building,No.136 Chifeng Road, Heping District, Tianjin,
The People’s Republic of China
Tel 86-22-6622-5588

Mizuho Bank (China), Ltd.
Wuhan Branch

India
Bangalore-Devanahalli Branch#462/440/339, 2nd Floor, Near Jain Temple, N.H.7/4-207,
B.B. Road, Vijayapura Cross, Devanahalli Town,
Bangalore Rural District - 562 110, Karnataka, India
Tel 91-80-4968-2000

Chennai Branch

Unit No. 11B, 11th Floor, Prestige Palladium Bayan,Nos. 129 to 140, Greams Road, Chennai – 600 006,
Tamil Nadu, India
Tel 91-44-4928-6600

Mumbai Branch

Level 17 TOWER–A Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai 400013, India
Tel 91-22-4911-2000

New Delhi Branch

1st Floor, DLF Capitol Point, Baba Kharag Singh Marg,
Connaught Place, New Delhi, 110001, India
Tel 91-11-3041-0900

Ahmedabad Branch

23rd Floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
Tel 86-21-3855-8888

5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan,
Hubei Province 430032,
The People’s Republic of China
Tel 86-27-8342-5000

Mizuho Bank (China), Ltd.
Shanghai Hongqiao Sub-Branch

Mizuho Bank (China), Ltd.
Wuxi BranchIndonesia
PT. Bank Mizuho Indonesia

8th Floor, Wuxi SI Park B, No. 16 Changjiang Road,
WND, Wuxi, Jiangsu Province 214028,
The People’s Republic of China
Tel 86-510-8522-3939

Sinar Mas Land Plaza Menara 2, 24th Floor,
Jl. M. H. Thamrin No. 51, Jakarta 10350,
Republic of Indonesia
Tel 62-21-392-5222

Mizuho Bank (China), Ltd.
Changshu Sub-Branch

Korea
Seoul Branch

Room 504; 510; 511; 515 (Nominal No. Room A601;
A602; B601; B602), Hongqiao Sunnyworld Center,
No. 1226 South Shenbin Road, Minhang District,
Shanghai 201106, The People’s Republic of China
Tel 86-21-3411-8688

Mizuho Bank (China), Ltd.
Shanghai Pilot Free Trade Zone Sub-Branch
Room 01, 08, 09, 10, 11, 12, 7F, Shanghai International
Communication and Trade Building, 55 Jilong Road,
Shanghai 200131, The People’s Republic of China
Tel 86-21-3855-8888

Mizuho Bank (China), Ltd.
Beijing Branch

8th Floor, West Wing, World Financial Center,
No. 1 Dong San Huan Zhong Road, Chaoyang District,
Beijing 100020, The People’s Republic of China
Tel 86-10-6525-1888

Mizuho Bank (China), Ltd.
Dalian Branch

23rd Floor, 24th Floor-A, Senmao Building,
147 Zhongshan Road, Xigang District,
Dalian, Liaoning Province 116011,
The People’s Republic of China
Tel 86-411-8360-2543

Mizuho Bank (China), Ltd.
Guangzhou Branch

Room701-704, Kechuang Building, No. 33 Dongnan Road,
Changshu New & Hi-tech Industrial Development Zone,
Jiangsu Province, 215500, The People’s Republic of China
Tel 86-512-6733-6888

Mizuho Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch

22nd Floor, International Business Building of Gugeng,
No. 81 Hongmei Area, Dalian Economic & Technological
Development Area, Dalian, Liaoning Province 116600,
The People’s Republic of China
Tel 86-411-8793-5670

Mizuho Bank (China), Ltd.
Kunshan Sub-Branch

Room D,E, 18th Floor, Dongan Building,
No. 258 Chunxu Road, Development Zone Kunshan City,
Kunshan, Jiangsu Province 215300,
The People’s Republic of China
Tel 86-512-6733-6888

Nanjing Representative Office

25th Floor, International Finance Place, No. 8 Huaxia Road,
Zhujiang New Town, Tianhe District, Guangzhou,
Guangdong Province 510623,
The People’s Republic of China
Tel 86-20-3815-0888

Room 2220, Suning Universal Hotel, 188 Guangzhou Road,
Nanjing, Jiangsu Province 210024,
The People’s Republic of China
Tel 86-25-8332-9379

Mizuho Bank (China), Ltd.
Hefei Branch

Room 2102, The Bank Center, No. 189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People’s Republic of China
Tel 86-592-239-5571

Room No. 1902-1907, No. 7 Office Building Wanda Plaza,
130 Maanshan Street, Baohe District, Hefei,
Anhui Province, The People’s Republic of China
Tel 86-551-6380-0690

Mizuho Bank (China), Ltd.
Qingdao Branch

44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Shinan District, Qingdao,
Shandong Province 266071,
The People’s Republic of China
Tel 86-532-8097-0001

Xiamen Representative Office

Office No. 402, 4th Floor, Commerce House–5,
Nr. Vodafone House, Prahladnagar Corporate Road,
Prahladnagar Satellite, Ahmedabad–380 051, India
Tel 91-79-4014-4666

19th Floor, Seoul Finance Center, 136, Sejong-daero,Jung-gu, Seoul, Korea
Tel 822-3782-8500

Malaysia
Labuan Branch
Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka,
87000 Federal Territory of Labuan, Malaysia
Tel 60-87-417766

Labuan Branch, Kuala Lumpur
Marketing Office

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2070-6880

Mizuho Bank (Malaysia) Berhad

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2058-6881

Myanmar
Yangon Branch
Sedona Business Suites, Level 4,
No. 1 Ka Ba Aye Pagoda Road, Yankin Township, Yangon,
Republic of the Union of Myanmar
Tel 95-1-860-5501

Yangon Branch Thilawa Front OfficeHong Kong
Hong Kong Branch

Room No. 204, Administration Building,Corner of Thilawa Development Road and Dagon-Thilawa
Road, Thilawa SEZ, Thanlyin Township, Yangon,
Republic of the Union of Myanmar
Tel 95-1-230-9046

13/F, K11 Atelier, 18 Salisbury Road Tsim Sha Tsui,
Kowloon Hong Kong, S.A.R.,
The People’s Republic of China
Tel 852-2306-5000

Philippines
Manila Branch
25th Floor, Zuellig Building, Makati Avenue corner Paseo deRoxas, Makati City 1225, Metro Manila, Philippines
Tel 63-2-860-3500

India

2019 Integrated Report120

Singapore
Singapore Branch
12 Marina View, #08-01 Asia Square Tower 2,
Singapore 018961, Republic of Singapore
Tel 65-6805-2000

TaiwanKaohsiung Branch
12th Floor, No. 2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
Tel 886-7-236-8768

Taichung Branch

TaunusTurm 34th Floor, Taunustor 1, 60310 Frankfurt am
Main, Germany
Tel 49-69-29-72-95-0

Iran
Tehran Representative Office
3rd Floor, No. 1, 14th Street, Khaled Eslamboli Avenue,
Tehran 15117, IranTel 98-21-8872-6593

Italy

Milan Branch

8th Floor, No. 169, Fuhui Parkway, Taichung 407, Taiwan
Tel 886-4-2374-6300

6th Floor, Largo Augusto 7, 20122 Milan, Republic of Italy
Tel 39-02-778-0001

Taipei Branch

Saudi Arabia
Mizuho Saudi Arabia Company

8-9th Floor, Cathay Landmark Square,
68 Zhong Xiao East Road, Xinyi District,Taipei, Taiwan
Tel 886-2-8726-3000

Thailand

Bangkok Branch
98 Sathorn Square Office Tower 32nd – 35th floor,
North Sathorn Road, Silom, Bangrak, Bangkok 10500,
ThailandTel 66-2-163-2999, 2-002-0222

Eastern Seaboard Branch

300/7 ESIE Plaza 2, Unit No. 2-05 Moo 1, Tambol Ta Sit,
Amphoe Pluak Daeng, Rayong 21140, Thailand
Tel 66-3-899-7000

VietnamHanoi Branch
4th Floor, 63 LTT Building, 63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
Tel 84-24-3936-3123/3124

Ho Chi Minh City Branch

18th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
Tel 84-28-3827-8260/8292

Europe, the Middle East and Africa(Country/Region)

AustriaMizuho Bank Europe N.V.
Vienna Branch

DC Tower 26th Floor, Donau-City-Strasse 7,1220 Vienna, Austria
Tel 43-1-269-1000-00

Bahrain

Bahrain Representative Office
Suite 201-202, Entrance 4, 2nd Floor, Manama Center,
Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
Tel 973-17-224522

BelgiumMizuho Bank Europe N.V.
Brussels Branch

Avenue Louise 480, 1050 Brussels, Belgium
Tel 32-2-645-5280

FranceParis Branch
Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
Tel 33-1-5383-4000

Germany
Düsseldorf Branch
Benrather Strasse 18-20, 40213 Duesseldorf, F.R. Germany
Tel 49-211-13020

121

Frankfurt Branch

Mizuho Financial Group

North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
Tel 966-11-273-4111

South Africa
Johannesburg Representative Office
2nd Floor, West Tower, Maude Street,
Nelson Mandela Square, Sandton 2196, South Africa,
P.O. Box 785553, Sandton 2146
Tel 27-11-881-5410

Spain

Mizuho Bank Europe N.V.
Madrid Branch

Calle Orense 34, Planta 6, Edificio Iberia Mart Ⅱ,
28020 Madrid, Spain
Tel 34-91-598-2905

The Netherlands

Mizuho Bank Europe N.V.
Apollolaan 171, 1077 AS Amsterdam, The Netherlands
Tel 31-20-5734343

TurkeyIstanbul Representative Office
Office 813, Tekfen Tower 8th Floor,
Buyukdere Caddesi No. 209, 4. Levent 34394, Istanbul,
TurkeyTel 90-212-371-8474

UAE
DIFC Branch-Dubai
The Gate Building, East Wing, Level 5, Dubai International
Financial Centre, P.O. Box No: 506607, Dubai, United ArabEmiratesTel 971-4-279-4400

United Kingdom
London Branch
Mizuho House, 30 Old Bailey, London EC4M 7AU, United
KingdomTel 44-20-7012-4000

RussiaAO Mizuho Bank (Moscow)
5th floor, 20, bld.1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
Tel 7-495-212-0333

The Americas(Country/Region)
BahamasMizuho Bank (USA) Nassau Branch
308 East Bay Street, P.O. Box N-7768, Nassau, Bahamas

BrazilBanco Mizuho do Brasil S.A.
Avenida Presidente Juscelino Kubitschek,
2041- Torre E-7 andar, Vila Olimpia, Sao Paulo, SP,
CEP. 04543-011, Brazil
Tel 55-11-5504-9844

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
Tel 1-416-874-0222

Calgary Office

Suite 1000, 888 3rd Street, South West, Calgary, Alberta,
Canada, T2P 5C5
Tel 1-403-444-5375

Cayman Islands
Cayman Branch
P. O. Box 1353, Harbour Place, 5th Floor,
103 South Church Street, George Town,
Grand Cayman KY1-1108, Cayman Islands

Chile
Santiago Representative Office
Av. Apoquindo 3472, Piso 7, Las Condes, Santiago, Chile
Tel 56-2-3203-5773

MexicoMexico Representative Office
Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion, Cuauhtemoc, 06600, Ciudad de Mexico, MexicoTel 52-55-5281-5037

Mizuho Bank Mexico, S.A.
Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion, Cuauhtemoc, 06600, Ciudad de Mexico, MexicoTel 52-55-5281-5037

Mizuho Bank Mexico, S.A.
León Office

Blvd. Paseo de los Insurgentes 3356, Torre 2,
nivel 2, Col. San Jose de las Piletas, 37530 Leon,
Guanajuato, MexicoTel 52-477-6885-248/249

USA
Chicago Branch
311 South Wacker Drive, Suite 2100, Chicago, IL 60606,
USA
Tel 1-312-855-1111

Los Angeles Branch

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

New York Branch

1251 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Park Avenue Branch

320 Park Avenue, New York, NY 10022, USA
Tel 1-212-282-3000

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
Tel 1-404-364-1550

Dallas Representative Office5345 Towne Square Drive, Suite 285, Plano,
TX 75024, USA
Tel 1-972-324-3350

Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
Tel 1-713-499-4800

San Francisco Representative Office

235 Pine Street, Floor 19, San Francisco, CA 94104, USA
Tel 1-415-365-1750

Washington, D.C. Representative Office1275 Pennsylvania Avenue, NW, Suite 310, Washington,
DC 20004, USA
Tel 1-202-292-5080

Mizuho Bank (USA)1251 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Mizuho Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
Tel 1-404-364-1550

Mizuho Bank (USA)
Chicago Representative Office

311 South Wacker Drive, Suite 2100, Chicago, IL 60606,
USA
Tel 1-312-855-1111

Mizuho Bank (USA)
Dallas Representative Office5345 Towne Square Drive, Suite 285, Plano, TX 75024,
USA
Tel 1-972-324-3350

Mizuho Bank (USA)
Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
Tel 1-713-499-4800

Mizuho Bank (USA)Los Angeles Representative Office

Network of Mizuho Trust & Banking

Office 1807. Madrid Torre Europa, Paseo de laMizuho Trust & Banking(Luxembourg) S.A.

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
Tel 352-42-16-17-1

Network of Mizuho Securities
Beijing Representative Office8011, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
Tel 86-10-6523-4779

Shanghai Representative Office

T32 33rd floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
Tel 86-21-6877-8000

Mizuho Investment Consulting(Shanghai) Co., Ltd.

T51 33rd floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
Tel 86-21-6877-5888

Mizuho Investment Consulting(Shanghai) Co., Ltd.
Beijing Branch

6010, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District, Beijing 100022,
The People’s Republic of China
Tel 86-10-6526-7577

Mizuho Securities Asia Limited

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

14-15/F, K11 Atelier, 18 Salisbury Road,
Tsim Sha Tsui, Kowloon, Hong Kong, S.A.R.,
The People’s Republic of China
Tel 852-2685-2000

Mizuho Bank (USA)Park Avenue Branch

Mizuho Securities Asia Limited,Seoul Branch

320 Park Avenue, New York, NY 10022, USA
Tel 1-212-282-3000

Mizuho Bank (USA)San Francisco Representative Office

235 Pine Street, Floor 19, San Francisco, CA 94104, USA
Tel 1-415-365-1750

Mizuho Alternative Investments, LLC

757 Third Avenue, 8th Floor, New York, NY 10017, USA
Tel 1-212-282-4420

Mizuho Capital Markets LLC

320 Park Avenue, 12th Floor, New York, NY 10022, USA
Tel 1-212-547-1500

Mizuho Desk(Country/Region)

UAE
Mashreqbank psc
Japan Desk, Mashreqbank Building 3F, Dubai Internet City,
Mashreqbank, P.O. Box 1250, Dubai, United Arab Emirates
Tel 971-4-363-2324/2285“Mizuho Desk”
By forming tie-ups with major financial institutions inregions where Mizuho does not possess offices, weoffer our clients financial services through various
institutions. (Transactions are conducted directly
between the client and the local financial institution.)

Mizuho International plc
Madrid Representative Office

20th Floor, Seoul Finance Center, 136,
Sejongdaero, Jung-gu, Seoul, 04520, Korea
Tel 822-2206-1800

Mizuho Securities Asia Limited(Sydney Office)Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
Tel 612-8114-4511

Mizuho Securities India Private Limited

Level 18, TOWER–A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai 400013, India
Tel 91-22-4353-7600

Mizuho Securities (Singapore) Pte. Ltd.
12 Marina View #10-01A, Asia Square Tower 2,
Singapore 018961
Tel 65-6603-5688

Mizuho (Switzerland) Ltd

Loewenstrasse 32, 8021 Zurich, Switzerland
Tel 41-44-216-9111

Mizuho International plc

Mizuho House, 30 Old Bailey, London EC4M 7AU, United
KingdomTel 44-20-7236-1090

Mizuho International plc
Frankfurt Office

TaunusTurm 34th Floor, Taunustor 1, 60310 Frankfurt am
Main, Germany

Mizuho International plc(DIFC Branch)

The Gate Building, East Wing, Level 5,
Dubai International Financial Centre,
PO Box 507206, Dubai, U.A.E.
Tel 44-20-7090-6181

Castellana 95 -15º,(Torre Europa), Madrid, 28046, Spain
Tel 34-91-418-69-00

Mizuho Securities Europe GmbH
TaunusTurm 34th Floor, Taunustor 1,
60310 Frankfurt am Main, Germany
Tel 49-69-42729-3000

Mizuho Securities USA LLC

320 Park Avenue, 12th Floor, New York, NY 10022, USA
Tel 1-212-209-9300

Mizuho Securities USA LLC
Boston Office

125 High Street, 21st Floor, Boston, MA 02110, USA
Tel 1-617-235-1722

Mizuho Securities USA LLC
Chicago Office

311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA
Tel 1-312-294-8800

Mizuho Securities USA LLC
Chicago Office (Investment Banking)
311 South Wacker Drive, Suite 2100, Chicago,
IL 60606, USA
Tel 1-312-855-1111

Mizuho Securities USA LLC
Houston Office (Investment Banking)2700 Post Oak Blvd, Suite 1270, Houston,
TX 77056, USA
Tel 1-713-499-4800

Mizuho Securities USA LLC
Iselin Office

101 Wood Avenue S, 3rd Floor, Iselin, NJ 08830, USA
Tel 1-201-626-1000

Mizuho Securities USA LLC
Los Angeles Office (Investment Banking)
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

Mizuho Securities USA LLC
New York Office (Investment Banking)1251 Avenue of the Americas, 30th Floor,
New York, NY 10020, USA
Tel 1-212-282-3000

Mizuho Securities USA LLC
San Francisco Office

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-268-5500

Mizuho Securities USA LLC
San Francisco Office (Investment Banking)235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415- 365-1750

Network of Asset Management One
Asset Management One Hong Kong Limited
12/F., K11 Atelier, 18 Salisbury Road,
Tsim Sha Tsui, Kowloon, Hong Kong, S.A.R,
The People’s Republic of China
Tel 852-2918-9030

Asset Management One Singapore Pte. Ltd.
2 Shenton Way #12-01 SGX Centre I, Singapore 068804
Tel 65-6532-5470

Asset Management One USA Inc.

400 Park Avenue, 4th Floor, New York, NY 10022, USA
Tel 1-212-350-7650

Asset Management One International Ltd.
Mizuho House, 30 Old Bailey, London, EC4M 7AU, UK
Tel 44-207-329-3777

2019 Integrated Report122Investor information

Date of establishment

Convocation of general meetings of shareholders¥2,256.7 billion

An ordinary general meeting of shareholders of the Company
shall be convened no later than 3 months from the last day ofeach business year and an extraordinary general meeting ofshareholders shall be convened whenever necessary.

Issued shares

Record date

January 8, 2003

Paid-in capital

25,392,498,945 shares

Number of shareholders
Common stock: 999,140

Major shareholders (common stock)
Shares held

Percentageof shares
outstanding(%)

1

The Master Trust Bank of Japan, Ltd.
1,360,079,600(Trustee account)

5.35

2

Japan Trustee Services Bank, Ltd.
(Trustee account)

1,065,112,500

4.19

3

Japan Trustee Services Bank, Ltd.
(Trustee account 5)525,839,800

2.07

4

Japan Trustee Services Bank, Ltd.
(Trustee account 9)516,271,400

2.03

5

JP Morgan Chase Bank 385151

393,575,328

1.55

6

State Street BankWest Client – Treaty 505234

392,747,217

1.54

7

Japan Trustee Services Bank, Ltd.
(Trustee account 1)

349,978,800

1.37

8

Japan Trustee Services Bank, Ltd.
(Trustee account 7)

339,733,700

1.33

9

Japan Trustee Services Bank, Ltd.
(Trustee account 2)

325,188,100

1.28

10

Japan Trustee Services Bank, Ltd.
(Trustee account 4)

288,707,000

1.13(As of March 31, 2019)

Stock listing(common stock)

Tokyo Stock Exchange

Accounting auditors

Ernst & Young ShinNihon LLC

Shareholder register manager
Mizuho Trust & Banking Co., Ltd.

Share unit
100 sharesFiscal year

April 1 to March 31

123

Mizuho Financial Group

Organizations that decide dividends from surplus

The Company shall decide distribution of dividends fromsurplus and other matters provided for in each item of Article
459, Paragraph 1 of the Companies Act of Japan, not by aresolution of a general meeting of shareholders, but by aresolution of the Board of Directors, unless otherwise provided
for in laws or regulations.

Record date for distribution of dividends from surplus

The record dates for distribution of dividends from surplus of
the Company shall be March 31 and September 30 of each year.

ADR* information

Notes: 1. Figures for the Percentage of Shares Outstanding are rounded
down to the nearest second decimal place.
2. The Percentages of Shares Outstanding are calculated by excluding
the treasury stock (6,520,138 shares).


1. The Company shall deem shareholders having voting rights
appearing in writing or electronically in the register ofshareholders as of the end of March 31 of each year as theshareholders who are entitled to exercise their rights at theordinary general meeting of shareholders for the relevantbusiness year.
2. The provision of the preceding paragraph shall apply mutatis
mutandis to the record date for voting rights at the general
meetings of holders of classes of stock, where there is amatter to be resolved at an ordinary general meeting ofshareholders that requires, in addition to such resolution, aresolution by the relevant general meeting of holders of classof stock.
3. In addition to the preceding two paragraphs, the Company
may set an extraordinary record date, when necessary, by
a determination by Executive Officer(s) under the authority
delegated by the Board of Directors and upon giving a priorpublic notice thereof.

Outline of Mizuho Financial Group’s ADR
New York Stock Exchange
1. Exchange :MFG
2. Ticker symbol :60687Y109
3. CUSIP :4. Conversion ratio :1 ADR = 2 common shares
The Bank of New York Mellon
5. Depositary bank :6. Local custodian bank : Mizuho Bank, Ltd.
* ADRs are securities issued for the purpose of trading in the US in place of
the underlying stock of foreign companies. As ADRs are registered with
the SEC as US securities, they are traded, settled and held in custody insubstantively the same manner as the stocks of US companies. ADR is anacronym for American Depositary Receipts.

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis[Under Japanese GAAP]125

Key Indicators of Mizuho Financial Group, Inc.

127

Status of Asset Quality

124

Financial Analysis-Index

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)
Billions of yen

As of or for the Fiscal Years ended March 31,

2019

2018

2017

2016

2015

¥3,936.9
96.5(110.5)
9,194.0
200,792.2
137,649.5
78,456.9
29,774.4¥3,590.8
576.5
765.5
9,821.2
205,028.3
136,463.8
79,421.4
34,183.0¥3,351.7
603.5
558.1
9,273.3
200,508.6
130,676.4
78,337.7
32,353.1¥3,235.6
670.9
304.5
9,353.2
193,458.5
117,456.6
73,708.8
39,505.9¥3,180.8
611.9
1,941.09,800.5
189,684.7
113,452.4
73,415.1
43,278.7

345.00357.41335.96322.46322.86

Profit Attributable to Owners of Parent
per Share (Yen)

3.80

22.72

23.86

26.94

24.91

Diluted Profit Attributable to Owners of Parent
per Share (Yen)

3.80

22.72

23.78

26.42

24.10

(International Standard (Basel III)) (Note)
Tier 1 Capital Ratio

18.85%

18.24%

16.28%

15.41%

14.58%(International Standard (Basel III)) (Note)
Common Equity Tier 1 Capital Ratio

15.94%

15.44%

13.30%

12.64%

11.50%(International Standard (Basel III)) (Note)12.76%

12.49%

11.34%

10.50%

9.43%

Net Return on Equity
PER (Times)

1.0%
44.99x

6.5%
8.42x

7.2%
8.54x

8.3%
6.23x

8.6%
8.47x

(2,636.0)
5,487.1(18.6)
44,254.8

2,966.7(2,316.1)
149.9
46,334.3

4,690.1
5,796.3(24.5)
45,523.6

4,104.1
3,687.8(521.0)35,089.1

6,654.9
2,619.2(903.4)
27,840.7

Total Income
Profit Attributable to Owners of Parent
Comprehensive Income
Net Assets
Total Assets
Deposits
Loans and Bills Discounted
Securities
Net Assets per Share (Yen)

Total Capital Ratio

Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Cash and Cash Equivalents at the end of the fiscal year

Note: Total Capital Ratio, Tier 1 Capital Ratio and Common Equity Tier 1 Capital Ratio are based on the “Standards for Determining the Status of Capital Adequacy in consideration of assets held by abank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (Financial Services Agency Ordinance Announcement No.20, March 27, 2006)

125

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Key Indicators of Mizuho Financial Group, Inc. (Non-Consolidated)
Billions of yen

As of or for the Fiscal Years ended March 31,

2019

2018

2017

2016

2015

Operating Income
Net Income¥331.3354.5¥305.0257.1¥378.0326.6¥333.5304.3¥377.7349.0

Common Stock and Preferred Stock
Number of Shares Issued and Outstanding
Common Stock
Eleventh Series Class XI Preferred Stock

2,256.7

2,256.5

2,256.2

2,255.7

2,255.4()(

Net Assets
Total Assets

25,392,498,945shares—shares)(

25,389,644,945shares—shares)(

25,386,307,945shares—shares)(

25,030,525,657shares
914,752,000shares)(

24,621,897,967shares
914,752,000shares)

5,518.7
11,637.1

5,441.3
10,587.7

5,342.5
9,269.3

5,197.2
7,064.2

5,096.2
6,603.1

Net Assets per Share (Yen)
217.52
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock
7.5—
Eleventh Series Class XI Preferred Stock (Note)

214.43210.51203.58198.15

7.5
—

7.5
—

7.5
20

7.5
20

(

Common Stock
Eleventh Series Class XI Preferred Stock (Note)
Net Income per Share (Yen)
Diluted Net Income per Share (Yen)PER (Times)
Dividend Propensity

)(

)(

)(

)(

)(

)

3.75
—

3.75
—

3.75
—

3.75
10

3.5
10

13.97
13.97

10.13
10.13

12.91
12.86

12.17
11.98

14.11
13.74

12.25x53.65%

18.88x73.98%

15.79x58.06%

13.81x61.62%

14.95x53.12%

Note: Mizuho Financial Group Inc. ("MHFG") acquired all of the Eleventh Series Class XI Preferred Stock as of July 1, 2016 that had not been requested for acquisition by June 30, 2016 and calcelled allof the Eleventh Series Class XI Preferred Stock held by MHFG on July 13, 2016. Accordingly, the cash dividends per share of the Eleventh Series Class XI Preferred Stock for the fiscal year ended
March 31, 2017 and after have not been recorded.

126

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Credit-related Costs
Credit-related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2019

2018

ChangeCredit-related Costs¥19.5¥(156.3)¥175.8

30.7

17.0

13.6

26.3

15.5

10.8

(11.1)(173.3)

162.1

—

—

—

Expenses related to Portfolio Problems (including Reversal of(Provision for) General Reserve for Possible Losses on Loans)
Losses on Write-offs of Loans
Gains on Reversal of Reserves for Possible Losses on Loans andothersCredit Costs for Trust Accounts○ Overview of Non-performing Loans (NPLs) as of March 31, 2019 (the Two Banks) (Banking Accounts)
Billions of yen

1. SELF-ASSESSMENT
ObligorCategorization

NonCategorization

Category II

Category III

Category IV

52.9
Bankrupt and Substantially
Bankrupt Obligors
52.9

Collateral, Guarantees, etc.:
46.0
Reserves for Possible Losses.:

Reserve
Ratio
100%

DirectWrite-offs

2. Non Performing Loans
based on the Financial
Reconstruction Act
Claims against Bankrupt
and Substantially Bankrupt
Obligors
52.9

3. Non-Accrual, Past
Due & Restructured
Loans
Loans to Bankrupt Obligors
10.3

Coverage Ratio 100%

6.8

Non-Accrual
Intensive Control
Obligors
344.9

257.7
Collateral, Guarantees, etc.:
129.1
Reserves for Possible Losses:

Watch Obligors

128.6

Claims for Special
Attention
159.7

Reserve Ratio against
Uncovered Portion
19.6%
Collateral, Guarantees, etc.:
54.3
Reserves for Possible Losses:

20.6

Special Attention Obligors

Other Watch Obligors
Normal Obligors

87.1
Reserve
Ratio
59.6%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors-Coverage Ratio: 50.5%-Reserve Ratiofor Uncovered Portion: 20.5%-Reserve Ratio
against Total Amount ofClaims: 12.7%
Reserve Ratio
against Total Amount of Claims·Other Watch Obligors: 2.46%·Normal Obligors: 0.05%

Total
89,787.4

Claims with Collection Risk
344.9

Delinquent Loans
346.6

Coverage Ratio 74.7%
40.8 (Notes 2)
Claims for Special
Attention (Notes 1)
159.7
Coverage Ratio 46.9%

Loans Past Due for
3 Months or More
0.4
Restructured Loans
159.3

Total Coverage Ratio
69.3%

Total
557.6

Total
516.8

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Non Performing Loans based on the FRA represents the amount of claims other than loans included in Non
Performing Loans based on the FRA.

127

Credit-related Costs、Overview of Non-performing Loans (NPLs)

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）○ Status of Non Performing Loans based on the FRA
Non Performing Loans based on the FRA (Consolidated)(Consolidated)
Billions of yen

As of March 31,

2019

2018

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥59.7
358.8
195.8

¥87.3
291.7
241.3

¥(27.5)67.1(45.5)¥614.4¥620.4¥(6.0)

2019

2018

Change

¥92.0

¥96.8

¥(4.8)

As of March 31,

2019

2018

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥—
2.7
—

¥—
2.8
—

¥—
(0.0)
—

¥2.7

¥2.8

¥(0.0)

2019

2018

Change¥59.7
3,61.6
1,95.8

¥87.3
294.5
241.3

¥(27.5)67.0(45.5)¥617.2¥623.3¥(6.1)

Total
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs(Trust Accounts)
Billions of yen

Total(Consolidated and Trust Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

Total

128

Status of Disclosed Claims under the FRA

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)(Consolidated)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

2019

2018

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥11.3
379.2
0.4
195.3

¥21.2
332.7
0.6
240.7

¥(9.8)
46.5(0.1)(45.4)¥586.4¥595.3¥(8.9)

2019

2018

Change

¥87.4

¥92.0

¥(4.6)

2019

2018

Change

0.01%
0.48
0.00
0.24

0.02%
0.41
0.00
0.30

(0.01)%
0.06(0.00)(0.05)

0.74%

0.74%

(0.00)%

2019

2018

Change¥287.8
136.0
151.7
0.0

¥315.6
200.6
115.0
0.0

¥(27.8)(64.5)
36.7
0.0

2019

2018

Change

¥92.2

¥97.1

¥(4.8)

2019

2018

Change49.07%

53.01%(3.93)%

Total
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

After Partial Direct Write-offs
Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

129

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

2019

2018

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥—
2.7
—
—

¥—
2.8
—
—

¥—
(0.0)
—
—

¥2.7

¥2.8

¥(0.0)

2019

2018

Change

—%
28.15
—
—

—%
25.16
—
—

—%
2.98
—
—

28.15%

25.16%

2.98%

As of March 31,

2019

2018

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥11.3
381.9
0.4
195.3

¥21.2
335.5
0.6
240.7

¥(9.8)
46.4(0.1)(45.4)¥589.1¥598.1¥(8.9)

2019

2018

Change

0.01%
0.48
0.00
0.24

0.02%
0.42
0.00
0.30

(0.01)%
0.06(0.00)(0.05)

0.75%

0.75%

(0.00)%

Total

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

Total
Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

130

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)
Billions of yen, %As of March 31,

2019
Outstanding
Balance Composition

2018
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarrying Industry & Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Governments
Other
Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other¥53,453.4
9,444.3
47.4
2.1
247.1
673.3
2,805.4
1,283.5
2,299.4
4,875.7
4,437.5
8,129.1
2,267.8
2,874.1
794.3
1,564.4
11,707.4
25,003.4
346.0
7,817.9
16,839.4¥57,614.2
8,039.8
38.2
2.4
221.5
633.6
2,446.5
1,486.1
2,068.6
4,713.3
4,532.2
7,481.6
2,148.5
2,878.1
931.6
7,946.6
12,044.7
21,807.2
258.3
6,211.2
15,337.6¥(4,160.7)
1,404.4
9.2
(0.2)
25.5
39.6
358.8
(202.6)230.8
162.4(94.7)
647.5
119.2
(4.0)
(137.3)(6,382.1)(337.3)
3,196.1
87.7
1,606.6
1,501.7

Total¥78,456.9

100.00%
17.67
0.09
0.00
0.46
1.26
5.25
2.40
4.30
9.12
8.30
15.21
4.24
5.38
1.49
2.93
21.90
100.00
1.38
31.27
67.35
/

¥79,421.4

100.00%
13.95
0.07
0.00
0.38
1.10
4.25
2.58
3.59
8.18
7.87
12.99
3.73
4.99
1.62
13.79
20.91
100.00
1.19
28.48
70.33
/

¥(964.5)

/
3.72%
0.02
(0.00)
0.08
0.16
1.00
(0.18)
0.71
0.94
0.43
2.22
0.51
0.39
(0.13)(10.86)
0.99
/
0.19
2.79
(2.98)/

Notes :1. Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries
2 .As for Overseas Total (including Loans Booked Offshore), parts of Loans which have been included in Governments are included in Financial Institutions and Other.

○ Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2019

ZambiaArgentina
Total
Ratio to Total Assets

Billions of yen, %

¥0.0
0.0
¥0.0
0.00%

As of March 31, 2018

Argentina
Total
Ratio to Total Assets

Billions of yen, %

¥0.0
¥0.0
0.00%

Note: Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.

131

Status of Loans by Industry、Status of Loans by Nationality of Borrowers

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]

133

Independent Auditor’s Report

134

Consolidated Financial Statements

146

Notes to Consolidated Financial Statements

132

Financial Data of Mizuho Financial Group, Inc.-Index

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Independent Auditor’s Report

133

Independent Auditor’s Report2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet
Millions of yen
2019

As of March 31,

AssetsCash and Due from Banks (Notes 16, 38, 40 and 41)
Call Loans and Bills Purchased (Note 40)
Receivables under Resale Agreements (Note 40)
Guarantee Deposits Paid under Securities Borrowing Transactions(Note 40)
Other Debt Purchased (Notes 40 and 41)
Trading Assets (Notes 9, 16, 40 and 41)
Money Held in Trust (Notes 40 and 41)
Securities (Notes 10, 16, 25, 40 and 41)
Loans and Bills Discounted (Notes 11, 16 and 40)
Foreign Exchange Assets (Note 12)
Derivatives other than for Trading Assets (Notes 40 and 42)
Other Assets (Notes 13, 16 and 41)
Tangible Fixed Assets (Notes 14, 27 and 39)
Intangible Fixed Assets (Note 39)
Net Defined Benefit Asset (Note 24)
Deferred Tax Assets (Note 26)
Customers' Liabilities for Acceptances and Guarantees (Note 25)
Reserves for Possible Losses on Loans (Notes 15 and 40)
Total Assets¥

45,108,602 ¥
648,254
12,997,628

2018

47,725,360
715,149
8,080,873

2,578,133
4,350,527
2,828,959
2,713,742
12,043,608
10,507,133
351,889
337,429
29,774,489
34,183,033
78,456,935
79,421,473
1,993,668
1,941,677
1,328,227
1,807,999
4,229,589
4,588,484
1,037,006
1,111,128
620,231
1,092,708
982,804
996,173
37,96047,8396,062,053
5,723,186(287,815)(315,621)¥ 200,792,226 ¥ 205,028,300

Thousands of
U.S. dollars (Note 1)
2019$

406,347,202
5,839,602
117,085,207

23,224,336
25,483,830
108,491,204
3,169,888
268,214,477
706,755,565
17,959,355
11,964,937
38,100,976
9,341,555
5,587,172
8,853,293
341,954
54,608,173(2,592,697)$ 1,808,776,029

134

Consolidated Balance Sheet2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet—(Continued)

2018

Thousands of
U.S. dollars (Note 1)
2019¥ 137,649,596 ¥ 136,463,824
2,841,931
2,105,293
14,640,439
16,656,828$ 1,239,974,748
25,600,682
131,883,966

Millions of yen
2019

As of March 31,

Liabilities and Net Assets
Liabilities
Deposits (Notes 16, 17 and 40)
Call Money and Bills Sold (Notes 18 and 40)
Payables under Repurchase Agreements (Notes 16 and 40)
Guarantee Deposits Received under Securities Lending
Transactions (Notes 16 and 40)
Commercial Paper (Note 19)
Trading Liabilities (Notes 9 and 40)
Borrowed Money (Notes 16, 20 and 40)
Foreign Exchange Liabilities (Note 12)
Short-term Bonds (Note 21)
Bonds and Notes (Notes 22 and 40)
Due to Trust Accounts (Note 40)
Derivatives other than for Trading Liabilities (Notes 40 and 42)
Other Liabilities (Note 23)
Reserve for Bonus Payments
Reserve for Variable Compensation
Net Defined Benefit Liability (Note 24)
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws
Deferred Tax Liabilities (Note 26)
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 27)
Acceptances and Guarantees (Note 25)
Total Liabilities
Net Assets
Common Stock (Note 28)
Capital Surplus
Retained Earnings
Treasury Stock (Note 28)
Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities (Note 41)
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land (Note 27)
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans (Note 24)
Total Accumulated Other Comprehensive Income

1,484,584

1,566,833

13,373,429

941,181710,391
8,325,520
8,121,543
3,061,504
4,896,218
669,578445,804
355,539
362,185
8,351,071
7,544,256
1,102,073
4,733,131
1,165,602
1,514,483
4,512,325
3,685,585
68,117
66,872
2,867
3,242
60,87358,890
1,389
1,460
630
1,075
4,910
5,622
19,06820,011
25,56630,7602,473
2,361
185,974
421,00263,31566,186
6,062,053
5,723,186¥ 191,598,188 ¥ 195,207,054

8,478,350
74,997,931
27,578,633
6,031,699
3,202,767
75,228,098
9,927,700
10,499,973
40,647,922
613,615
25,829548,357
12,516
5,684
44,233
171,775
230,304
22,281
1,675,296
570,358
54,608,173$ 1,725,954,319¥$

2,256,767 ¥
1,138,449
3,915,521(7,703)7,303,034
1,186,401(22,282)
137,772(111,057)
254,936
1,445,770

Stock Acquisition Rights (Note 29)707

2,256,548
1,134,922
4,002,835(5,997)
7,388,309
1,392,392(67,578)
144,277(85,094)
293,536
1,677,534
1,163

20,329,407
10,255,379
35,271,792(69,398)
65,787,180
10,687,343(200,726)
1,241,083(1,000,431)
2,296,519
13,023,788
6,369

Non-controlling Interests

444,525754,239

4,004,373

Total Net Assets

9,194,038

9,821,246

82,821,710¥ 200,792,226 ¥ 205,028,300$ 1,808,776,029

Total Liabilities and Net Assets

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

135

Consolidated Balance Sheet2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Income
Millions of yen
2019

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 30)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 31)
Other Operating Income (Note 32)
Other Income (Note 34)
Total Income
Expenses
Interest Expenses (Note 30)
Fee and Commission Expenses
Trading Expenses (Note 31)
Other Operating Expenses (Note 33)
General and Administrative Expenses
Other Expenses (Note 35)
Total Expenses¥

2,056,327
55,153765,977
299,355
312,815447,300
3,936,930¥

2018

1,622,354
55,400766,612276,616
304,214565,683
3,590,881

Thousands of
U.S. dollars (Note 1)
2019$

18,523,800
496,838
6,900,078
2,696,656
2,817,905
4,029,367
35,464,644

1,293,846
155,550
1,987
225,5091,430,850
712,927
3,820,670

814,988
152,262829
141,760
1,488,973
192,1132,790,927

11,655,221
1,401,226
17,9062,031,429
12,889,381
6,422,189
34,417,352

Income before Income Taxes
Income Taxes:
Current
Deferred
Total Income Taxes

116,259

799,953

1,047,292

161,376(163,879)(2,502)

190,158
1,469
191,627

1,453,715(1,476,258)(22,543)

Profit118,762

608,326

1,069,835

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent

22,196¥96,566

31,778¥576,547

199,948$869,887

136

Consolidated Statement of Income2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Per Share of Common Stock
Yen
2019

As of March 31,

Net Income:
Basic
DilutedCash Dividends

¥

3.80
3.80
7.50

2018

¥

U.S. dollars (Note 1)
2019

22.72
22.72
7.50

$

0.03
0.03
0.07

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Consolidated Statement of Comprehensive Income
Millions of yen
2019

For the Fiscal Years ended March 31,

ProfitOther Comprehensive Income (Note 36):
Net Unrealized Gains (Losses) on Other Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent:
Comprehensive Income Attributable to Non-controlling Interests:¥¥¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

137

Per Share of Common Stock、Consolidated Statement of Comprehensive Income

118,762(229,304)(207,505)
45,391―(23,882)(35,577)(7,730)(110,542)(128,692)
18,150

¥

¥
¥

2018

Thousands of
U.S. dollars (Note 1)
2019

608,326
157,233
102,332(77,205)(133)(10,949)
149,473$

1,069,835(2,065,620)(1,869,246)
408,892―(215,137)(320,492)(6,284)
765,559734,303
31,255(69,637)$(995,785)$ (1,159,287)
163,502

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Changes in Net Assets
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2019

Balance as of the beginningof the period

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,256,548 ¥ 1,134,922¥ 4,002,835¥ (5,997)¥ 7,388,309

CommonStock

Changes during the period
Issuance of New Shares

218

218

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod437(190,384)(190,384)

96,56696,566(23)(3,001)(3,001)

1,295

1,271

6,504

6,504

3,331

218

3,331

3,526

(87,313)(1,706)(85,274)¥ 2,256,767 ¥ 1,138,449¥ 3,915,521¥ (7,703)¥ 7,303,034

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

138

Consolidated Statement of Changes in Net Assets

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2019

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit Plans¥ 1,392,392¥ (67,578)¥ 144,277¥ (85,094)¥ 293,536

Stock
Total
Accumulated Acquisition
Rights
Other
Comprehensive
Income¥ 1,677,534

NonControlling
Interests

Total
Net Assets¥ 1,163 ¥ 754,239¥ 9,821,246

Changes during the period
Issuance of New Shares

437

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,384)
96,566(3,001)
1,271
6,504

3,331

(205,990)

45,295(6,504)(25,963)(38,600)(231,763)(456)(309,713)(541,934)(205,990)

45,295(6,504)(25,963)(38,600)(231,763)(456)(309,713)(627,208)¥ 1,186,401¥ (22,282)¥ 137,772¥ (111,057)¥ 254,936¥ 1,445,770¥ 707 ¥ 444,525¥ 9,194,038

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

139

Consolidated Statement of Changes in Net Assets

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2018

Balance as of the beginningof the period

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,256,275 ¥ 1,134,416¥ 3,615,449¥ (4,849)¥7,001,291

CommonStock

Changes during the period
Issuance of New Shares

273

273

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod546(190,360)(190,360)

576,547

576,547(53)(2,431)(2,431)

1,283

1,229

1,198

1,198

287

273

287

506

387,385(1,148)387,017¥ 2,256,548 ¥ 1,134,922¥ 4,002,835¥ (5,997)¥ 7,388,309

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

140

Consolidated Statement of Changes in Net Assets

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2018

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit Plans¥ 1,289,985¥ 10,172¥ 145,609¥ (69,657)¥ 144,866

Stock
Total
Accumulated Acquisition
Rights
Other
Comprehensive
Income¥ 1,520,976

NonControlling
Interests

Total
Net Assets¥ 1,754 ¥ 749,339¥ 9,273,361

Changes during the period
Issuance of New Shares

546

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,360)
576,547(2,431)
1,229
1,198

287

102,407(77,750)(1,331)(15,437)

148,670

156,558

(590)

4,899

160,867

102,407(77,750)(1,331)(15,437)

148,670

156,558

(590)

4,899

547,884¥ 1,392,392¥ (67,578)¥ 144,277¥ (85,094)¥ 293,536¥ 1,677,534¥ 1,163 ¥ 754,239¥ 9,821,246

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

141

Consolidated Statement of Changes in Net Assets

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Consolidated Statement of Changes in Net Assets—(Continued)
Thousands of U.S. dollars (Note 1)
Shareholders' Equity

For the Fiscal Year ended
March 31, 2019

Balance as of the beginningof the period

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity$ 20,327,435 $ 10,223,610$ 36,058,329$ (54,026)$ 66,555,348

CommonStock

Changes during the period
Issuance of New Shares

1,972

1,972

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
(212)
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising from30,009Transactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during the
1,972
31,769periodBalance as of the end of the$ 20,329,407 $ 10,255,379
period3,944(1,715,022)(1,715,022)

869,887

869,887(27,040)(27,040)

11,66811,45658,59858,59830,009(786,537)(15,372)(768,168)$ 35,271,792$ (69,398)$ 65,787,180

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

142

Consolidated Statement of Changes in Net Assets

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Thousands of U.S. dollars (Note 1)
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2019

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit
Plans

Total
Stock
Accumulated Acquisition
Other
RightsComprehensive
Income$ 12,542,950$ (608,759)$ 1,299,681$ (766,550)$ 2,644,238$ 15,111,560

NonControlling
Interests

Total
Net Assets$ 10,484 $ 6,794,337 $ 88,471,729

Changes during the period
Issuance of New Shares

3,944

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(1,715,022)
869,887(27,040)
11,45658,59830,009(1,855,607)

408,033(58,598)(233,881)(347,719)(2,087,772)(4,115) (2,789,964)(4,881,851)(1,855,607)

408,033(58,598)(233,881)(347,719)(2,087,772)(4,115) (2,789,964)(5,650,019)$ 10,687,343$ (200,726)$ 1,241,083 $ (1,000,431)$ 2,296,519$ 13,023,788

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

143

Consolidated Statement of Changes in Net Assets$ 6,369 $ 4,004,373 $ 82,821,710

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Consolidated Statement of Cash Flows
Millions of yen
2019

For the Fiscal Years ended March 31,

Cash Flow from Operating Activities
Income before Income Taxes
Depreciation
Losses on Impairment of Fixed Assets
Amortization of Goodwill
Equity in Loss (Gain) from Investments in Affiliates
Increase (Decrease) in Reserves for Possible Losses on Loans
Increase (Decrease) in Reserve for Possible Losses on Salesof Loans
Increase (Decrease) in Reserve for Contingencies
Increase (Decrease) in Reserve for Bonus Payments
Increase (Decrease) in Reserve for Variable Compensation
Decrease (Increase) in Net Defined Benefit Asset
Increase (Decrease) in Net Defined Benefit Liability
Increase (Decrease) in Reserve for Director and Corporate
Auditor Retirement Benefits
Increase (Decrease) in Reserve for Reimbursement of Deposits
Increase (Decrease) in Reserve for Reimbursement ofDebentures
Interest Income—accrual basis
Interest Expenses—accrual basis
Losses (Gains) on Securities
Losses (Gains) on Money Held in Trust
Foreign Exchange Losses (Gains)—net
Losses (Gains) on Disposition of Fixed Assets
Losses (Gains) on Cancellation of Employee Retirement Benefit
Trust
Decrease (Increase) in Trading Assets
Increase (Decrease) in Trading Liabilities
Decrease (Increase) in Derivatives other than for Trading Assets
Increase (Decrease) in Derivatives other than for Trading
Liabilities
Decrease (Increase) in Loans and Bills Discounted
Increase (Decrease) in Deposits
Increase (Decrease) in Borrowed Money (excluding
Subordinated Borrowed Money)
Decrease (Increase) in Due from Banks (excluding Due fromCentral Banks)
Decrease (Increase) in Call Loans, etc.
Decrease (Increase) in Guarantee Deposits Paid under
Securities Borrowing Transactions
Increase (Decrease) in Call Money, etc.
Increase (Decrease) in Commercial Paper
Increase (Decrease) in Guarantee Deposits Received under
Securities Lending Transactions
Decrease (Increase) in Foreign Exchange Assets
Increase (Decrease) in Foreign Exchange Liabilities
Increase (Decrease) in Short-term Bonds (Liabilities)
Increase (Decrease) in Bonds and Notes¥¥

116,259
168,200
503,6124,080(51,215)(26,910)¥

2018

799,953
173,660
6,960
4,154(21,474)(194,197)

Thousands of
U.S. dollars (Note 1)
2019$

1,047,292
1,515,180
4,536,639
36,754(461,357)(242,419)

(444)
183
591
(375)
(57,863)
2,497

777
207
(18)
223
(24,803)
3,756(4,002)
1,649
5,326(3,382)(521,244)
22,500

(41)

175

(374)

(942)

939

(8,489)(5,194)(1,959)(46,796)(2,056,327)
1,293,846(195,755)(40)(170,422)
1,976(1,622,354)
814,988(263,312)(139)
229,892
1,495(18,523,800)
11,655,221(1,763,407)(369)(1,535,202)
17,801(7,841)(26,032)(70,642)(1,536,520)
227,455
485,333(132,951)
154,664
354,027(13,841,280)
2,048,961
4,371,976(355,068)(260,185)(3,198,527)(2,407,594)
2,806,760(1,431,302)
6,171,313(21,688,091)
25,283,851(1,800,307)(1,371,484)(16,217,527)

611,070(4,807,554)(9,678)1,030,590

5,504,645(43,307,397)

1,772,393(1,000,475)

15,966,070

1,748,141
199,104

122,103(37,576)

15,747,605
1,793,571(82,249)(112,466)(740,918)(34,376)
223,848(6,646)286,158(141,992)(80,565)
135,837(411,073)(309,670)
2,016,472(59,871)
2,577,769

¥

$

144

Consolidated Statement of Cash Flows

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Cash Flows—(Continued)
Millions of yen
2019

For the Fiscal Years ended March 31,

Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net
Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities
Cash Flow 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 Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Proceeds from Sales of Stocks of Subsidiaries (affecting thescope of consolidation)
Net Cash Provided by (Used in) Investing Activities¥(10,232)
2,027,241(1,250,247)(75,059)(2,460,479)(175,617)(2,636,096)¥(52,363,143)
38,799,373
19,211,836(109,630)
94,984(42,703)(111,595)
7,811―(60,973,137)
42,292,827
16,679,426(155,042)
61,626(57,974)(181,647)
16,3850(471,697,532)
349,512,417
173,064,020(987,570)
855,637(384,685)(1,005,270)
70,369―219
5,487,153

1,337(2,316,197)

1,977
49,429,363

10,000(45,000)
510,000(5,000)2
3,514(275,079)(190,413)(25,494)(2,124)
952(18,640)

35,000(69,000)
574,000(172,600)
3
1,450(1,065)(190,382)(25,832)(1,611)
0
149,962

90,082(405,369)
4,594,181(45,041)26
31,658(2,477,967)(1,715,281)(229,657)(19,135)
8,584(167,919)(32,656)
2,799,759

10,203810,670(294,179)
25,220,783

46,334,334

45,523,663

417,388,831(4,879,218)―(43,952,963)¥ 44,254,874¥ 46,334,334$ 398,656,651

Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Issuance of Common Stock
Proceeds from Investments by Non-controlling Shareholders
Repayments to Non-controlling Shareholders
Cash Dividends Paid
Cash Dividends Paid to Non-controlling Shareholders
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock
Net Cash Provided by (Used in) Financing Activities
Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at the beginning of the fiscal year
Decrease in Cash and Cash Equivalents resulting from
Exclusion of Subsidiaries from Consolidation
Cash and Cash Equivalents at the end of the fiscal year
(Note 38)

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

145

Consolidated Statement of Cash Flows

2018(50,946)
1,602,227(797,725)(475,640)
3,139,593(172,892)
2,966,701

Thousands of
U.S. dollars (Note 1)
2019$(92,173)
18,261,794(11,262,478)(676,150)(22,164,489)(1,581,993)(23,746,482)

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho
Financial Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the Company
Law of Japan and the Financial Instruments and Exchange Law, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”) which are different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of
the Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to theconsolidated financial statements include information which is not required under Japanese GAAP but is presented herein
as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not
add up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers
outside Japan. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019 has been used for translation.
The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized
or settled into U.S. dollars at that rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd.
(“MHSC”) and certain other subsidiaries. The numbers of consolidated subsidiaries as of March 31, 2019 and 2018 were
117 and 124, respectively.
During the period, Mizuho Americas Services LLC and 3 other companies were newly included in the scope of
consolidation as a result of establishment.
During the period, Trust & Custody Services Bank Ltd. (“TCSB”), a consolidated subsidiary of MHFG, implemented
joint share transfer with Japan Trustee Services Bank, Ltd. (“JTSB”) and incorporated JTC Holdings, Ltd., a holding
company whose shareholders are TCSB’s and JTSB’s existing shareholders. As a result, TCSB and JTSB became
wholly-owned subsidiaries of JTC Holdings, Ltd.
TCSB was excluded from the scope of consolidation as a result of the aforementioned joint share transfer, and 10
other companies were excluded from the scope of consolidation as a result of dissolution and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2019 and 2018.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2019 and 2018.
(b) The numbers of affiliates under the equity method as of March 31, 2019 and 2018 were 22 and 19, respectively.
Investments in affiliates include JTC Holdings, Ltd., Orient Corporation, Joint Stock Commercial Bank for Foreign Tradeof Vietnam and certain other affiliates.
During the period, JTC Holdings, Ltd. and 2 other companies were newly included in the scope of the equity method asa result of the aforementioned joint share transfer, and IBJ Leasing Company, Limited was newly included in the scopeof the equity method as a result of increasing the shares.
During the period, MIC Asia Technology Limited Liability Fund was excluded from the scope of equity method as a resultof dissolusion.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2019 and 2018.
(d) Pec International Leasing Co., Ltd. ,an affiliate not under the equity method, is not accounted for under the equity
method, as it is not significant to the consolidated financial statements of MHFG.

146

Basis for Presentation、Scope of Consolidation、Application of the Equity Method

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. Balance Sheet Dates of Consolidated Subsidiaries(a) Balance sheet dates of consolidated subsidiaries for the fiscal year ended March 31, 2019 are as follows:
July 31
1 company
December 29
3 companies
December 31
46 companies
March 31
67 companies(b) Consolidated subsidiaries with balance sheet dates of December 29 were consolidated based on their tentative financial
statements as of and for the period ended December 31.
The consolidated subsidiary with balance sheet dates of July 31 was consolidated based on its tentative financial
statement as of and for the period ended the consolidated balance sheet date.
Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended
their respective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took
place between their respective balance sheet dates and the date of the consolidated financial statements.

147

Balance Sheet Dates of Consolidated Subsidiaries

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5. Standards of Accounting Method(1) Credited Loans pursuant to Trading Securities and Trading Income & Expenses
Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis andrecorded in Other Debt Purchased on the consolidated balance sheet. Other Debt Purchased related to the relevant
credited loans is stated at fair value at the consolidated balance sheet date.
Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including thegains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statement of income.

(2)Trading Assets & Liabilities and Trading Income & Expenses
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. Income or expenses generated on
the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement ofincome.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance
sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Securities
In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.
(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities which have readily determinable fair value are stated at fair value with changes in net unrealized gains orlosses, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method,
included directly in Net Assets. The fair value of Japanese stocks is determined based on the average quoted market
price over the month preceding the consolidated balance sheet date. The fair value of securities other than Japanesestocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance
sheet date (cost of securities sold is calculated primarily by the moving average method). Other securities, the fairvalues of which are extremely difficult to determine, are stated at acquisition cost or amortized cost which isdetermined by the moving average method.
In addition, investments in affiliates not under the equity method are stated at acquisition cost as determined by themoving average method.
Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities
above.
Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult todetermine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fairvalue is treated as a loss for the fiscal year (“impairment (devaluation)”), if the fair value (primarily the closing market
price at the consolidated balance sheet date) has significantly deteriorated compared with the acquisition cost (including
amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value. The amounts of
impairment (devaluation) were ¥4,736 million ($42,665 thousand) and ¥3,424 million for the fiscal years ended March
31, 2019 and 2018, respectively.

148

Standards of Accounting Method

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:• Security whose fair value is 50% or less of the acquisition cost
• Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market pricemaintains a certain level or lower(4) Bills Discounted
In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee
Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sellor pledge these commercial bills, foreign exchange bills purchased and others. The face value of these bills amounted
to ¥1,487,045 million ($13,395,596 thousand) and ¥1,405,238 million as of March 31, 2019 and 2018, respectively.

(5) Derivative Transactions
Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives
qualifying as hedges are mainly accounted for using either the fair-value hedge method or the deferred method of hedge
accounting (see (22) Hedge Accounting).

(6) Tangible Fixed Assets (Except for Lease Assets)
Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings 3 years to 50 years
Others 2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determinedby MHFG and its consolidated subsidiaries.

(8) Lease Assets
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

(9) Deferred Assets
Bond issuance costs are expensed as incurred.

149

Standards of Accounting Method

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(10) Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance withinternally established standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under theCompany Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions(“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described
below and the expected amounts recoverable from the disposition of collateral and the amounts recoverable underguarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive
Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of
the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 11 below)
and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method isapplied, under which the reserve is determined as the difference between the book value of the loan and its present
value of future cash flows discounted using the contractual interest rate before the loan was classified as a
Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experienceand other factors.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of theassessments are verified and examined by the independent examination departments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed
by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale ofcollateral pledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are
written off against the respective claim balances. The total directly written-off amounts were ¥92,269 million ($831,181
thousand) and ¥97,112 million as of March 31, 2019 and 2018, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.

(11) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.

(12) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

(13) Reserve for Variable Compensation
To prepare for the payments of performance payments and stock compensation to be paid as variable compensation
within compensation for directors, executive officers and specialist officers of Mizuho Financial Group, Inc., Mizuho
Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd., the estimated payment based on thestandard amount regarding variable compensation of the fiscal year is provided.

(14) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit
payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued by the end of the
fiscal year, based on the internally established standards.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(15) Reserve for Possible Losses on Sales of Loans
Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

(16) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies which are not coveredby other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(17) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from liabilities atthe estimated amount of future claims for withdrawal by depositors.

(18) Reserve for Reimbursement of Debentures
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from liabilities at the estimatedamount for future claims.

(19) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥2,473
million ($22,281 thousand) and ¥2,361 million as of March 31, 2019 and 2018, respectively. This is the reserve pursuant
to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinanceregarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and saleof securities, other transactions or derivative transactions.

(20) Accounting Method for Retirement Benefits
In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected
retirement benefits to the period up to the end of this fiscal year. Unrecognized actuarial differences are recognized asincome or expenses from the following fiscal year under the straight-line method over a certain term within the averageremaining service period of the employees (mainly 10 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary
resignation at the end of the term to be retirement benefit obligations in computing net defined benefit liability andretirement benefit expenses.

(21) Assets and Liabilities Denominated in Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in affiliates
not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions
mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance
sheet dates.

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2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(22) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries is accounted for by
the method stipulated in the JICPA Industry Audit Committee Report No.24, February 13, 2002.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply thedeferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets andliabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to
Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee
Report No.25, July 29, 2002). The effectiveness of the hedge is assessed by confirming that the amount of theforeign currency position of the hedged monetary claims and liabilities is equal to or larger than that of currency swap
transactions, exchange swap transactions, and similar transactions designated as the hedging instruments of theforeign exchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statement of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No.24 and25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value
hedge method or the exceptional accrual method for interest rate swaps are applied.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(23) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

(24) Amortization Method of Goodwill and Amortization Period
Goodwill is amortized over an appropriate period not to exceed 20 years under the straight-line method. The full amountof Goodwill that has no material impact is expensed as incurred.

(25) Scope of Cash and Cash Equivalents on Consolidated Statement of Cash Flows
In the consolidated statement of cash flows, Cash and Cash Equivalents consist of cash and due from central banks
included in “Cash and Due from Banks” on the consolidated balance sheet.

6. Issued but not yet Adopted Accounting Standard and Others
・ Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan ("ASBJ") Statement No.29, March 30,
2018)・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No.30, March 30, 2018)(1) Overview
International Accounting Standards Board ("IASB") and Financial Accounting Standards Board ("FASB") jointly establishedthe comprehensive accounting standard for revenue recognition and announced "Revenue from contracts with customers"(International Financial Reporting Standards ("IFRS") 15 / FASB Topic 606). Considering the application of IFRS 15 from thefiscal year beginning on and after January 1, 2018 and Topic 606 from the fiscal year beginning after December 15, 2017,
ASBJ has established the comprehensive accounting standard for revenue recognition and announced the accounting
standard together with the guidance.
As a basic policy of ASBJ in establishing the accounting standard for revenue recognition, the accounting standard wasdetermined with the adoption of the basic principles of IFRS 15 at first from the standpoint of the comparability between
financial statements that is one of conveniences provided by ensuring consistency with IFRS 15. If there were items thatshould give consideration to practical businesses conducted in Japan, the alternative treatment shall be added as long as
comparability is not harmed.
(2) Scheduled Date of Application
Mizuho Financial Group is scheduled to apply this accounting standard from the beginning of the consolidated fiscal year
starting on April 1, 2021.
(3) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under consideration.

7. Additional Information(The Board Benefit Trust (“BBT”) Program)Since MHFG operates its business to contribute to the creation of value for diverse stakeholders and realize improved corporate
value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy defined under
the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a stock compensation program using a trust (the“Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer to exert maximum effort inperforming his or her duties, and also as consideration for such exertion of effort.
(1) Outline of the Program
The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will be acquired
through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be distributed to
Directors, Executive Officers, and Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., andMizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed inadvance. The framework consists of the stock compensation program based on the Company Group Officer’s position in theirrespective company (“Stock Compensation I”) and the stock compensation program based on the performance evaluation of
the Company Group (“Stock Compensation II”).
Stock Compensation I will be paid at the time of retirement in the form of shares of MHFG calculated based on theirposition. A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of thecompany or the individual.

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Stock Compensation II will be paid in the form of shares of MHFG and will be deferred over three years, which is calculated
based on the Company Group’s performance, the performance of organizations (in-house companies and units, etc.) thateach Company Group Officer is in charge of and the performance of each Company Group Officer. A system is adopted
which enables a decrease or forfeiture of the amount depending on the performance of the company or the individual.
Upon the payment of stock compensation under the Program, MHFG may, for a certain portion, pay a monetary amountequivalent to the market value of its stock in lieu of stock compensation in accordance with the Rules on Distribution of
Shares.
Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.
(2) MHFG’s Shares Outstanding in the Trust
MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount(excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of March 31, 2019was ¥3,569 million ($32,154 thousand) for 18,917 thousand shares. (The carrying amount of such Treasury Stock as ofMarch 31, 2018 was ¥2,424 million for 13,319 thousand shares.)

8. Securities Lending and Borrowing Transactions
MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge as of March 31,
2019 and 2018. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased
under resale agreements and securities borrowed with cash collateral. Among them, the totals of securities repledged
were ¥12,595,142 million ($113,459,532 thousand) and ¥12,656,065 million as of March 31, 2019 and 2018,
respectively, and securities neither repledged nor re-loaned were ¥3,952,221 million ($35,602,389 thousand) and¥1,048,102 million as of March 31, 2019 and 2018, respectively.

9. Trading Assets and Liabilities
As of March 31,

Trading Assets:
Trading Securities
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total
Trading Liabilities:
Trading Securities Sold Short
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total

Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥ 5,968,848¥ 5,188,400$ 53,768,569

5,907,081
167,677¥ 12,043,608

5,065,683
253,049¥ 10,507,133

53,212,161
1,510,474$ 108,491,204¥ 2,579,940¥ 3,185,101$ 23,240,609

5,587,502
158,078¥ 8,325,520

4,759,793
176,648¥ 8,121,543

50,333,324
1,423,998$ 74,997,931

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

10. Securities
Millions of yen
2019

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2
Total¥ 13,016,033
209,891—
2,681,005
3,563,271
10,304,286¥ 29,774,489

2018

Thousands of U.S. dollars
2019¥ 15,292,004
239,333
99
2,964,110
3,952,789
11,734,696¥ 34,183,033$ 117,250,997
1,890,745—
24,151,029
32,098,656
92,823,050$ 268,214,477*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥252,044 million ($2,270,468 thousand) and ¥178,472 million as ofMarch 31, 2019 and 2018, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥82,120 million ($739,756 thousand) and ¥76,913 million as of March 31, 2019and 2018, respectively.

11. Loans and Bills Discounted
Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥ 66,030,880
8,533,976
3,378,943
369,288¥ 68,615,165
7,369,547
2,963,152
287,692$ 594,819,215
76,875,741
30,438,190
3,326,622

143,846—¥ 78,456,935

180,974
4,941¥ 79,421,473

1,295,797—$ 706,755,565

As of March 31,

Loans on Deeds
Overdrafts
Loans on Notes
Bills Discounted
Financing Receivables, including
Factoring, Leasing and Property
Financing
Other
Total

Loans and Bills Discounted as of March 31, 2019 and 2018 include the following:
Millions of yen
2019

As of March 31,

Loans to Bankrupt Obligors*1
Non-Accrual Delinquent Loans*2
Loans Past Due for Three Months or More*3
Restructured Loans*4
Total

¥

¥

11,393379,225436
195,366
586,422

¥

¥

2018

21,271
332,702617
240,777595,369

Thousands of U.S. dollars
2019

$

$

102,634
3,416,136
3,934
1,759,903
5,282,607*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the

Corporate Tax Law Enforcement Ordinance (Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are

deferred in order to assist or facilitate the restructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, thedeferral of interest payments, the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial
difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

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Commitment Line for Loans
Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer isin breach of contract conditions. The unutilized balance of these contracts amounted to ¥91,744,406 million ($826,451,729
thousand) and ¥92,936,908 million as of March 31, 2019 and 2018, respectively. Of these amounts, ¥69,611,691 million($627,075,863 thousand) and ¥73,190,124 million as of March 31, 2019 and 2018, respectively, relate to contracts of which
the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affectfuture cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse theexecution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation,necessity to preserve a claim, or other similar reasons. The banking subsidiaries require collateral such as real estate andsecurities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor
customers’ business conditions in accordance with internally established standards and take necessary measures tomanage credit risks such as amendments to contracts.

12. Foreign Exchange Assets and Liabilities
Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥ 1,117,756
556,493318,788629¥ 1,993,668¥ 1,117,545
529,924
287,479
6,727¥ 1,941,677$ 10,068,973
5,013,005
2,871,710
5,667$ 17,959,355

¥

¥

$

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Due to Banks (Foreign)
Advance from Foreign Banks
Foreign Bills Payable
Foreign Bills Sold
Total

¥

597,118
20,73532,44919,275669,578¥

393,371
24,134
18,211
10,087445,804

Millions of yen
2019

2018

$

5,378,964
186,786
292,314173,635
6,031,699

13. Other Assets
As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

¥

339,045
64,135
3,826,407¥ 4,229,589¥

300,691
54,0204,233,773¥ 4,588,484

Thousands of U.S. dollars
2019$3,054,192
577,748
34,469,036$ 38,100,976

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

14. Tangible Fixed Assets
Millions of yen
2019

As of March 31,

Land
Buildings
Lease Assets
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on
Sales of Replaced Assets andOthers¥614,851
287,634
22,55736,30075,661¥ 1,037,006¥
902,9992018¥

628,836
341,533
25,46824,97590,314¥ 1,111,128¥
879,497

33,720Thousands of U.S. dollars
2019

$

$
$

5,538,701
2,591,072
203,206
327,002681,574
9,341,555
8,134,402

34,180303,7632018

Thousands of U.S. dollars
2019¥ (136,022)¥ (200,616)$ (1,225,321)(151,787)(115,004)(1,367,330)(5)¥ (287,815)(1)¥ (315,621)(46)$ (2,592,697)

15. Reserves for Possible Losses on Loans
Millions of yen
2019

As of March 31,

General Reserve for Possible
Losses on Loans
Specific Reserve for Possible
Losses on Loans
Reserve for Possible Losses on
Loans to Restructuring Countries
Total

16. Assets Pledged as Collateral
The following assets were pledged as collateral:
Millions of yen
2019

As of March 31,

Trading Assets
Securities
Loans and Bills Discounted¥ 2,096,078
4,064,070
3,766,290

2018

Thousands of U.S. dollars
2019¥ 1,590,718
6,712,488
4,976,680$ 18,881,886
36,609,951
33,927,487

The following liabilities were collateralized by the above assets:
Millions of yen
2019

As of March 31,

Deposits
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money¥385,674¥

2018

256,027

Thousands of U.S. dollars
2019$3,474,231

3,435,148

5,518,102

30,944,492

1,361,504
1,802,520

984,830
3,524,825

12,264,706
16,237,461

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In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others
were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥55,277 million($497,953 thousand) and ¥33,434 million, Trading Assets of ¥98,014 million ($882,933 thousand) and ¥53,750 million,
Securities of ¥3,378,504 million ($30,434,240 thousand) and ¥3,270,531 million, and Loans and Bills Discounted of¥138,672 million ($1,249,193 thousand) and ¥154,190 million as of March 31, 2019 and 2018, respectively.
Other Assets included guarantee deposits of ¥129,076 million ($1,162,751 thousand) and ¥132,084 million, collateralpledged for derivatives transactions of ¥725,618 million ($6,536,519 thousand) and ¥718,276 million, margins for futurestransactions of ¥159,747 million ($1,439,034 thousand) and ¥140,600 million, and other guarantee deposits of ¥862,921
million ($7,773,372 thousand) and ¥968,443 million as of March 31, 2019 and 2018, respectively.

17. Deposits
Millions of yen
2019

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥ 11,178,002
65,111,121
884,410
40,147,137
13,338,571
6,990,352¥ 137,649,596

2018

Thousands of U.S. dollars
2019¥ 11,713,590
69,837,590
930,730
36,901,106
11,382,590
5,698,216¥ 136,463,824$ 100,693,652
586,533,844
7,966,946
361,653,341
120,156,485
62,970,480$ 1,239,974,748*1 Ordinary Deposits includes savings deposits.

18. Call Money and Bills Sold
Millions of yen
2019

As of March 31,

Call Money
Bills Sold
Total

¥ 2,841,931—¥ 2,841,931

2018

Thousands of U.S. dollars
2019¥ 2,105,293—¥ 2,105,293$ 25,600,682—$ 25,600,682

19. Commercial Paper
As of March 31,

Commercial Paper

Millions of yen
2019¥941,1812018

Thousands of U.S. dollars
2019¥710,391$8,478,350

Average interest rates*1
2019
2018

2.64%

1.92%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal

year.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

20. Borrowed Money
As of March 31,

Borrowed Money
Bills Rediscounted
Other Borrowings*2,3Millions of yen
2019¥3,061,504―
3,061,504

2018

Thousands of U.S. dollars
2019¥4,896,218―
4,896,218$27,578,633―$27,578,633

Average interest rates*1
2019
2018

1.28%
―%
1.28%

0.63%
―%
0.63%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal

year.
*2 Other Borrowings included subordinated debt of ¥183,000 million ($1,648,500 thousand) and ¥218,000 million as of March 31, 2019 and 2018, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:

Fiscal year ending March 31, 2020
2021
2022
2023
2024

¥970,310 million¥936,806 million¥122,166 million¥230,825 million¥73,380 million($8,740,745 thousand)($8,438,934 thousand)($1,100,503 thousand)($2,079,318 thousand)($661,029 thousand)21. Short-term Bonds
Major components of Short-term Bonds at March 31, 2019 were as follows:
Issuer

Issue

MHSC

Sep. 2018–Mar. 2019*1

Oct. 2018–Mar. 2019

Total

Millions of yen Thousands of U.S. dollars¥333,200[333,200]
22,339[22,339]¥355,539$3,001,532[3,001,532]
201,235[201,235]$3,202,767

Interest rates

0.00%
0.04%–0.12%

Due

Apr. 2019–
Oct. 2019
Apr. 2019–
May 2019*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiary, JAPAN SECURITIZATION CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.
Major components of Short-term Bonds at March 31, 2018 were as follows:
Issuer

Issue

MHSC

Aug. 2017–Mar. 2018*1

Oct. 2017–Mar. 2018

Total

Millions of yen

Interest rates¥334,200[334,200]
27,985[27,985]¥362,185

0.00%
0.04%–0.11%

Due

Apr. 2018–
Sep. 2018
Apr. 2018–
May 2018*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiary, JAPAN SECURITIZATION CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.

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22. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2019 were as follows:

IssuerDescription

Issue

MHFG

Straight Bonds

Jul. 2014–
Oct.2018

MHTB

Straight Bonds

Dec. 2005

MHBK

Straight Bonds

Aug. 2005–
Sep. 2018*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Sep. 2005–
May 2012
Jan. 2003–
Mar. 2019

Total

Millions of yen¥5,000,247[—](US$ 20,250,000 thousand)(EUR 2,000,000 thousand)(AUD 625,000 thousand)
10,000[—]1,968,205[790,842](US$ 9,581,244 thousand)(AUD 745,000 thousand)(SGD 190,000 thousand)(HKD 1,540,000 thousand)(CNY 500,000 thousand)
332,620[—](US$ 2,996,308 thousand)
41,000[—]998,998[219,536](US$ 2,694,224 thousand)(AUD 31,360 thousand)(EUR 725,400 thousand)(BRL 14,500 thousand)(GBP 20,000 thousand)(MXN 9,000 thousand)(TRY 59,076 thousand)¥8,351,071

Thousands of U.S.
dollars

Interest
rates$45,043,217[—]

0.10%–
4.35%

Apr. 2021–

90,082[—]
17,729,982[7,124,064]

2.24%

Dec. 2020

0.22%–
5.30%

Apr. 2019–

2,996,309[—]

4.20%–
4.60%

Jul. 2022–
Mar. 2024

369,336[—]
8,999,172[1,977,629]

1.30%–
2.21%
0.00%–
25.00%

May 2024–
Sep. 2025
Apr. 2019–
Mar. 2049

Due$75,228,098*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) 2 Limited and Mizuho

Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance(Curaçao) N.V.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc and Mizuho Securities USA LLC.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2020 ¥1,010,378 million ($9,101,693 thousand)2021 ¥354,732 million ($3,195,500 thousand)2022 ¥1,139,615 million ($10,265,877 thousand)2023 ¥896,522 million ($8,076,055 thousand)2024 ¥261,906 million ($2,359,305 thousand)4. Bonds and Notes as of March 31, 2019 included subordinated bonds and notes of ¥3,332,877 million($30,023,221 thousand).
5. No collateral was provided for the above Bonds and Notes.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2018 were as follows:
IssuerDescription

Issue

MHFG

Straight Bonds

Jul. 2014–
Mar.2018

MHTB

Straight Bonds

Dec. 2005

MHBK

Straight Bonds

Aug. 2005–
Jan. 2018*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Sep. 2005–
May 2012
Jan. 2003–
Mar. 2018

Total

Millions of yen¥3,869,015[—](US$ 17,500,000 thousand)(EUR 500,000 thousand)
10,000[—]2,421,033[513,026](US$ 10,546,418 thousand)(AUD 1,115,000 thousand)(SGD 290,000 thousand)(HKD 1,430,000 thousand)(CNY 500,000 thousand)(THB 3,000,000 thousand)
318,325[—](US$ 2,995,443 thousand)
45,000[—]880,881[227,933](US$ 2,417,770 thousand)(AUD 24,550 thousand)(EUR 998,900 thousand)(BRL 14,500 thousand)(GBP 20,000 thousand)(MXN 9,000 thousand)(TRY 51,076 thousand)¥7,544,256

Interest
rates

Due

0.10%–
4.35%

Apr. 2021–

2.24%

Dec. 2020

0.22%–
5.30%

Apr. 2018–

4.20%–
4.60%

Jul. 2022–
Mar. 2024

1.30%–
2.75%
0.00%–
19.00%

Jun. 2023–
Apr. 2018–
Mar. 2048*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) 2 Limited and Mizuho

Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited, Mizuho Finance (Curaçao)

N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc and Mizuho Securities USA LCC.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2019 ¥740,960 million
2020 ¥849,535 million
2021 ¥296,237 million
2022 ¥1,021,008 million
2023 ¥862,446 million
4. Bonds and Notes as of March 31, 2018 included subordinated bonds and notes of ¥2,810,028 million.
5. No collateral was provided for the above Bonds and Notes.

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23. Other Liabilities
Millions of yen
2019

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*1*2
Other
Total

¥282,576
105,598
58,68925,0194,040,440¥4,512,325

2018

Thousands of U.S. dollars
2019¥223,537
116,486
66,36336,0093,243,188¥3,685,585$2,545,509
951,254528,687
225,384
36,397,088$40,647,922. It is the weighted-average interest rate of debts*1 Average interest rate is 1.33% and 1.35% in the fiscal year ended March 31, 2019 and 2018, respectively

calculated from the interest rates and outstanding balances at the end of the fiscal year.
*2 Repayments for Lease Liabilities are scheduled for the next five years as follows:
Fiscal year ending March 31, 2020
¥9,695 million ($87,342 thousand)
2021¥7,200 million ($64,864 thousand)
2022¥4,379 million ($39,449 thousand)2023¥2,628 million ($23,680 thousand)2024¥905 million ($8,156 thousand)

24. Reserve for Employee Retirement Benefits(1) MHFG and its domestic consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin Kikin
Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension Plans.
In addition, MHFG and certain domestic consolidated subsidiaries have adopted Defined- Contribution Pension Plans
other than risk-sharing corporate pension as a part of the Termination Allowance Plans while certain other domestic
consolidated subsidiaries have established employee retirement benefit trusts.
(2) Defined-Benefit Corporate Pension Plans(i) Adjustment between the balances of Retirement Benefit Obligations at the beginning and at the end of the period
For the Fiscal Years ended March 31,

Balance of Retirement Benefit Obligations
at the beginning of the period
Service Cost
Interest Cost
Unrecognized Actuarial Differences incurred
Retirement Benefits paid
Other
Balance of Retirement Benefit Obligations
at the end of the period

Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥1,441,383
43,172
5,231
41,716(68,298)(967)¥1,433,371
41,646
5,737
29,152(67,267)(1,256)$12,984,271
388,90747,122375,793(615,249)(8,716)¥1,462,237¥1,441,383$13,172,128

Note: The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries under
the simplified method.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Adjustment between the balances of Plan Assets at the beginning and at the end of the period
For the Fiscal Years ended March 31,

Balance of Plan Assets
at the beginning of the period
Expected Return on Plan Assets
Unrecognized Actuarial Differences incurred
Contributions from employer
Contributions from employee
Retirement Benefits paid
Cancellation of Employee Retirement Benefit
Trust
Other
Balance of Plan Assets at the end of theperiodMillions of yen
2019

2018

Thousands of U.S. dollars
2019¥2,378,667
37,08028,077
18,7801,228(52,066)¥2,175,897
33,609245,662
42,863
1,232(51,907)$21,427,504
334,026
252,931
169,176
11,068(469,022)(27,534)(66,565)(248,033)(65)(2,125)(586)¥2,384,168¥2,378,667$21,477,064(iii) Adjustment between the balances of Retirement Benefit Obligations and Plan Assets at the end of the period andAdjustment to the balances of Net Defined Benefit Liability and Net Defined Benefit Asset recorded in the Consolidated
Balance Sheet
As of March 31,

Retirement Benefit Obligations
Plan Assets
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

As of March 31,

Net Defined Benefit Liability
Net Defined Benefit Asset
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥1,462,237(2,384,168)¥1,441,383(2,378,667)$13,172,128(21,477,064)¥(921,930)¥(937,283)$(8,304,936)

2018

Thousands of U.S. dollars
2019¥60,873(982,804)¥58,890(996,173)$548,357(8,853,293)¥(921,930)¥(937,283)$(8,304,936)

2018

Thousands of U.S. dollars
2019¥42,051
5,231(37,080)(30,036)
3,125¥40,549
5,737(33,609)23,824
3,887$378,809
47,122(334,026)(270,579)
28,152¥(16,709)¥40,390$(150,522)¥7,841¥(26,032)$(70,642)

Millions of yen
2019(iv) Employee Retirement Benefit Expenses and the breakdown
For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Other
Net Retirement Benefit Expenses for DefinedBenefit Corporate Pension Plans
Gains on Cancellation of Employee
Retirement Benefit Trust

Millions of yen
2019

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the simplified method for calculating
retirement benefit obligations are included in Service Cost in full.
3. Gains on Cancellation of Employee Retirement Benefit Trust is included in Other Income.

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Breakdown of Remeasurements of Defined Benefit Plans in Other Comprehensive Income (before deducting tax effect)
was as follows:
For the Fiscal Years ended March 31,

Unrecognized Actuarial Differences
Other
Total

Millions of yen
2019¥51,915(69)¥51,8462018

Thousands of U.S. dollars
2019¥(216,485)
312¥(216,172)$467,667(626)$467,041(vi) Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income
Breakdown of Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income (before
deducting tax effect) was as follows:

As of March 31,

Unrecognized Actuarial Differences
Other
Total

Millions of yen
2019¥(366,177)
243¥(365,934)

2018

Thousands of U.S. dollars
2019¥(418,093)
312¥(417,780)$(3,298,602)
2,192$(3,296,410)(vii) Plan Assets(a) Ratio of each category to the total amount of Plan Assets was as follows:
As of March 31,

Japanese Stocks
Japanese Bonds
Foreign Stocks
Foreign Bonds
General account of life insurance companies
Other
Total

2019

2018

57.98%
13.48%
11.31%
9.20%
4.67%
3.36%
100.00%58.86%
13.27%
10.54%
8.84%
4.62%
3.87%
100.00%Note: The total amount of Plan Assets includes 58.59% and 59.64% of Employee Retirement Benefit Trust established for
the Corporate Pension Fund Plans and the Termination Allowance Plans as of March 31, 2019 and 2018,
respectively.
(b) Calculation of Expected Long-term Rate of Return on Plan Assets
In determining the Expected Long-term Rate of Return on Plan Assets, current and expected allocation of Plan Assets
and current and expected future long-term rate of return from various assets constituting Plan Assets have been
considered.
(viii) Basis of Actuarial Calculation
Major Basis of Actuarial Calculation
For the Fiscal Years ended March 31,

Discount Rate
Expected Long-term Rate of Return on Plan Assets

2019

2018

mainly 0.00%- 0.70%
mainly 1.30%- 1.90%

mainly 0.02%- 0.98%
mainly 1.20%- 1.75%(3) Defined- Contribution Pension Plans
The required amount of contributions to Defined- Contribution Pension Plans of MHFG and its domestic consolidated
subsidiaries was ¥3,224 million ($ 29,045 thousand) and ¥2,473 million for the fiscal years ended March 31, 2019 and2018, respectively.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

25. Acceptances and Guarantees(1) Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article 2,
Paragraph 3 of the Financial Instruments and Exchange Law (the Securities and Exchange Law as of March 31, 2007))
amounted to ¥1,503,395 million ($13,542,884 thousand) and ¥1,309,432 million as of March 31, 2019 and 2018,
respectively.
(2) The principal amounts promised to be indemnified for money trusts which are entrusted to domestic consolidated trust
banking subsidiaries, were ¥874,777 million ($7,880,169 thousand) and ¥1,470,677 million as of March 31, 2019 and2018, respectively.

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26. Deferred Tax Assets and Liabilities(1) Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥167,755
120,564¥200,319
118,545$1,511,172
1,086,069

96,544

103,664

869,690

193,875
205,171
205,732
989,643

191,136
50,724
204,870869,262

1,746,466
1,848,229
1,853,278
8,914,904(142,939)―(1,287,631)(143,619)―(1,293,755)(286,559)¥703,083(299,189)¥570,073(2,581,386)$6,333,518¥(450,796)¥(516,747)$(4,060,867)(301,321)(98,979)¥(851,098)¥(148,014)(305,717)(120,770)¥(943,236)¥(373,162)(2,714,365)(891,628)$(7,666,860)$(1,333,342)

As of March 31,

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Depreciation and Impairment
Other
Deferred Tax Assets Subtotal:
Valuation Allowance - Tax Losses
Carried Forward
Valuation Allowance - Deductible
Temporary Differences, etc.
Valuation Allowance Subtotal:
Total
Deferred Tax Liabilities:
Net Unrealized Gains on Other
Securities
Net Defined Benefit Asset
Other
Total
Net Deferred Tax Assets

Note1: MHFG and domestic subsidiaries are subject to a number of different income taxes.
Note2:Tax Losses Carried Forward and amounts according to expiration of carryforward of their Deferred Tax Assets:
As of March 31, 2019

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets

1-2 years

2-3 years

3-4 years

¥151
(126)
24

¥62
(62)
―

¥69
(69)
―

¥3,447(21)
3,425

Within 1 year

1-2 years

2-3 years

3-4 years

Thousands of U.S. dollars
4-5 years Over 5 years
Total$1,368(1,144)
224

$567
(567)
―

$624
(624)
―

$31,052(195)
30,857$7,622 $1,469,939 $1,511,172(271) (1,284,830) (1,287,631)
7,351
185,109
223,541

As of March 31, 2019

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets

4-5 years Over 5 years

Millions of yen
Total

Within 1 year

¥846
(30)
816

¥163,177(142,628)
20,548¥167,755(142,939)
24,815*Tax Losses Carried Forward is the amount multiplied by the effective statutory tax rate.

(Change in Presentation of Financial Statements)
Other of Deferred Tax Assets included within Depreciation and Impairment for the previous consolidated fiscal year has
been separately presented from this consolidated fiscal year due to increased materiality.
In order to reflect the change in presentation of the financial statements, reclassification of the previous consolidated
fiscal year has been made accordingly.
As a result, Other of Deferred Tax Assets of ¥255,594 million presented in the consolidated statements for the previous
consolidated fiscal year has been reclassified as Depreciation and Impairment of ¥50,724 million and Other of ¥204,870
million.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Changes following the application of Partial Amendments to Accounting Standard for Tax Effect Accounting)Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No.28, February 16, 2018)(hereinafter, the “Partial Amendments”) has been applied from this consolidated fiscal year and “26. Deferred Tax Assets
and Liabilities” have been changed.
In “26. Deferred Tax Assets and Liabilities”, the items specified in Note 8 (excluding the total amount of valuation
allowance) and Note 9 of Accounting Standard for Tax Effect Accounting set forth in from Article 3 to Article 5 of the Partial
Amendments have been added. However, the items concerning the previous consolidated fiscal year have not been
disclosed in accordance with the transitional treatment set forth in Article 7 of the Partial Amendments.
(2) For the fiscal years ended March 31, 2019 and 2018, the reconciliation of the statutory tax rate of MHFG to the effective
income tax rate was as follows:
For the Fiscal Year ended March 31,

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Change in undistributed earnings of subsidiaries
Tax Rate Differences between theConsolidated Subsidiaries
Equity in Income from Investments in Affiliates
Change in unrecognized tax benefits
Other
Effective Income Tax Rate

2019

2018

30.62%

30.86%(4.35)(4.91)(7.67)(1.18)(11.63)(0.08)(11.66)(1.95)(13.49)(0.83)

8.10
7.93(2.15)%―
2.04
23.95%(Change in Presentation of Financial Statements)
Other included within Change in undistributed earnings of subsidiaries and Equity in Income from Investments in Affiliates
for the previous consolidated fiscal year has been separately presented from this consolidated fiscal year due to increasedmateriality.
In order to reflect the change in presentation of the financial statements, reclassification of the previous consolidated
fiscal year has been made accordingly.
As a result, Other of 1.13% presented in the consolidated statements for the previous consolidated fiscal year has been
reclassified as Change in undistributed earnings of subsidiaries of (0.08)% and Equity in Income from Investments in
Affiliates of (0.83)%, Other of 2.04%.

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27. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business
operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess
of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder,
net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations wasrevalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of
the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on
March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on
the basis of the appraisal valuation stipulated in Paragraph 5.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total bookvalue of the land after such revaluation was ¥64,217 million ($578,484 thousand) and ¥100,007 million as ofMarch 31, 2019 and 2018, respectively.

28. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2019 and 2018 were as follows:
Number of shares
As of March 31, 2019
Class of stock

Common Stock

Authorized*2

Issued andoutstanding*1

Interimcash
dividend

48,000,000,000

25,392,498,945¥3.75

Per share (Yen)
Year-end
cash Liquidation
dividend
value

¥3.75

¥―

With
Convertible Redemption
or notor notNo

No

Notes: 1. Treasury Stock is included. The number is as follows:
Common Stock
6,520 thousand shares
2. Each total number of other shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Number of shares
As of March 31, 2018
Class of stock

Common Stock

Authorized*2

Issued andoutstanding*1

Interimcash
dividend

48,000,000,000

25,389,644,945¥3.75

Per share (Yen)
Year-end
cash Liquidation
dividend
value

¥3.75

¥―

With
Convertible Redemption
or notor notNo

Notes: 1. Treasury Stock is included. The number is as follows:
Common Stock
6,487 thousand shares
2. Each total number of other shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

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29. Stock Options
Outline of stock options and changes
For the fiscal year ended March 31, 2019(1) Outline of stock options

As of March 31, 2019

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
14

71

5,409,000

Second Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
14

71

5,835,000

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
12

71

6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
August 27, 2010
February 17, 2009
September 28, 2009
to August 26, 2030
to February 16, 2029
to September 25, 2029

170

Stock Options

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2019

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2019

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period*1: Shown in number of shares

171

Stock Options

Fourth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
6
26

130
12,452,000

Fifth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6
11
23

150

Common stock

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of
MHFG, MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

Seventh Series of Stock
Acquisition Rights of MHFG

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

2
12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK, MHTB
or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
36
22

134
7,932,000

February 17, 2014
The grantee may exercise theStock Acquisition Rights whichhave been allotted based on
his or her capacity as a
Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC.
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Size of stock options and changes(i) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2019

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Non-vested
As of March 31, 2018
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2018
VestedExercised
Forfeited
Outstanding

124,000──
124,000─

220,000──
220,000─

331,000──
279,000
52,000612,000──
341,000
271,000

1,474,000
──
627,000
847,000─
124,000
124,000───
220,000
220,000───
279,000
279,000───
341,000
341,000───
627,000
627,000──For the Fiscal Year ended
March 31, 2019

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

1,305,000
──
414,000
891,000

3,150,000
──
966,000
2,184,000

─
414,000
414,000───
966,000
966,000──

Non-vested
As of March 31, 2018
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2018
VestedExercised
Forfeited
Outstanding

Note: The above table is shown in number of shares.
(ii) Price information

As of March 31, 2019

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2019

Exercise price
Average stock priceupon exercise
Fair value at grant date

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share¥1 per share¥196.20¥196.20¥196.20¥196.20¥196.20¥190.91
per share¥168.69
per share¥119.52
per share¥91.84per share¥113.25
per share

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥196.20¥195.21¥192.61
per share¥186.99
per share

172

Stock Options

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(3) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.
For the fiscal year ended March 31, 2018
(1) Outline of stock options

As of March 31, 2018

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

173

Stock OptionsFirst Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
14

71

5,409,000

Second Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
14

71

5,835,000

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
12

71

6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
April 1, 2009
April 1, 2010
July 1, 2008
to March 31, 2010
to March 31, 2011
to March 31, 2009
September 28, 2009
August 27, 2010
February 17, 2009
to September 25, 2029
to August 26, 2030
to February 16, 2029

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2018

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2018

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Fourth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
6
26

130
12,452,000

Fifth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6
11
23

150

Common stock

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of
MHFG, MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
36
22

134
7,932,000

February 17, 2014
The grantee may exercise theStock Acquisition Rights whichhave been allotted based on
his or her capacity as a
Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC.
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

Seventh Series of Stock
Acquisition Rights of MHFG

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

2
12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK, MHTB
or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

*1: Shown in number of shares

174

Stock Options

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Size of stock options and changes(i) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2018

Non-vested
As of March 31, 2017
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2017
VestedExercised
Forfeited
Outstanding

For the Fiscal Year ended
March 31, 2018

Non-vested
As of March 31, 2017
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2017
VestedExercised
Forfeited
Outstanding

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

124,000───
124,000

220,000───
220,000

331,000───
331,000

966,000──
354,000
612,000

2,207,000
──
733,000
1,474,000

─
─
─
─
─

─
─
─
─
─

─
─
─
─
─

─
354,000
354,000───
733,000
733,000──

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

2,049,000
──
744,000
1,305,000

4,922,000
──
1,772,000
3,150,000

─
744,000
744,000───
1,772,000
1,772,000
──

Note: The above table is shown in number of shares.
(ii) Price information

As of March 31, 2018

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2018

Exercise price
Average stock priceupon exercise
Fair value at grant date175

Stock OptionsFirst Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share¥1 per share

─

─

─

¥205.20¥205.16¥190.91
per share¥168.69
per share¥119.52
per share¥91.84per share¥113.25
per share

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥205.16¥205.06¥192.61
per share¥186.99
per share2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(3) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.

30. Interest Income and Interest Expenses
For the Fiscal Years ended March 31,

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Receivables under Resale
Agreements
Guarantee Deposits Paid under
Securities Borrowing
Transactions
Other Interest Income
Total
Interest Expenses:
Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses
Total
Net

Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥1,253,970
302,768
5,510
123,545¥999,385
282,801
5,569
119,839$11,296,011
2,727,401
49,641
1,112,922

229,637

127,923

2,068,617

25,081
115,813¥2,056,327

17,172
69,662¥1,622,354

225,941
1,043,267$18,523,800¥610,345
11,030¥373,551
4,995$5,498,116
99,363

374,524

230,554

3,373,787

7,292
19,30435,522
235,826¥1,293,846¥762,480

5,500
8,284
28,285
163,817¥814,988¥807,366

65,689173,901
319,991
2,124,374$11,655,221$6,868,579

176

Stock Options、Interest Income and Interest Expenses

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

31. Trading Income and Trading Expenses
For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for
Trading Transactions
Total
Trading Expenses:
Net Losses on Trading Securities
Total
Net

Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥230,874¥180,502$2,079,765

68,481¥299,355

96,113¥276,616

616,891$2,696,656

1,987¥1,987¥297,367

829¥829¥275,786

17,906$17,906$2,678,750

2018

Thousands of U.S. dollars
2019¥94,92172,682¥84,187
70,832$855,075
654,741

11,214
133,996¥312,815

12,635
136,558¥304,214

101,020
1,207,069$2,817,905

2018

Thousands of U.S. dollars
2019¥88,755
2,045
50,959¥141,760$1,577,103
11,343442,983$2,031,429

2018

Thousands of U.S. dollars
2019¥351,049¥316,471$3,162,327

51,215

21,474

461,357

10,395

12,20393,645

7,841

26,03270,642

4,357

159,062

39,255

3,438
19,001¥447,300

3,723
26,715¥565,683

30,973
171,168$4,029,367

32. Other Operating Income
For the Fiscal Years ended March 31,

Gains on Foreign Exchange
Transactions
Gains on Sales of Bonds
Gains on Derivatives other thanfor Trading or Hedging
Other
Total

Millions of yen
2019

33. Other Operating Expenses
For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Losses on Devaluation of Bonds
Other
Total

Millions of yen
2019¥175,074
1,259
49,175¥225,509

34. Other Income
For the Fiscal Years ended March 31,

Gains on Sales of Stock
Share of profit of entities
accounted for using
equity method
Recovery on Written-off Loans
Gains on Cancellation of
Employee Retirement
Benefit TrustReversal of Reserves for
Possible Losses on Loans
Gains on Disposition of Fixed
AssetsOther
Total

Millions of yen
2019

177

Trading Income and Trading Expenses、Other Operating Income、Other Operating Expenses、Other Income2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

35. Other Expenses
For the Fiscal Years ended March 31,

Losses on Impairment of Fixed
Assets
Losses on Sales of Stocks
System migration-related expenses
Write-offs of Loans
Stock-related derivatives expenses
Losses on Disposition of Fixed
AssetsOther
Total

Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥503,612¥6,960$4,536,639

45,84729,28526,36624,54228,09255,39815,542
11,169413,006
263,808
237,514221,084

5,414
77,858¥712,927

5,219
69,731¥192,113

48,774
701,364$6,422,189

36. Comprehensive Income
Reclassification adjustments and the related tax effects concerning Other Comprehensive Income
Millions of yen
For the Fiscal Years ended March 31,

Net Unrealized Gains on Other Securities:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Net Unrealized Gains on Other Securities
Deferred Gains or Losses on Hedges:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Revaluation Reserve for Land
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive Income

2019

Thousands of U.S. dollars
2018

2019

¥(44,354)(229,208)(273,563)
66,057(207,505)¥408,416(258,697)
149,718(47,385)
102,332$(399,558)(2,064,752)(2,464,310)
595,064(1,869,246)

59,3006,032
65,333(19,942)
45,391(98,763)(12,064)(110,828)
33,622(77,205)

534,189
54,346
588,535(179,643)
408,892

—
—
—
—
—

—
—
—
(133)
(133)

—
—
—
—
—

(23,882)—(23,882)—(23,882)(10,949)—(10,949)—(10,949)(215,137)—(215,137)—(215,137)(13,638)(38,208)(51,846)
16,268(35,577)

216,314(141)
216,172(66,699)
149,473(122,855)(344,187)(467,042)
146,550(320,492)(7,730)¥(229,304)(6,284)¥157,233(69,637)$(2,065,620)

178

Other Expenses、Comprehensive Income2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

37. Changes in Net Assets
For the fiscal year ended March 31, 2019(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Thousands of Shares
As ofMarch 31, 2019
Remarks

As ofApril 1, 2018

Increase during
the fiscal year

Decrease during
the fiscal year

25,389,644
25,389,644

2,854
2,854

—
—

25,392,498
25,392,498*1

24,82924,82915,78815,788

6,656
6,656

33,96233,962*2*1 Increases are due to exercise of stock acquisition rights (stock options) (2,854 thousand shares).
*2 Increases are due to acquisition of treasury stock by BBT trust account (10,676 thousand shares) and repurchase of shares constituting less than one unit

and other factors (5,112 thousand shares). Decreases are due to distribution and sale of treasury stock through BBT trust account (5,078 thousand shares),exercise of stock acquisition rights (stock options) (117 thousand shares), and repurchase of shares constituting less than one unit and other factors (1,460
thousand shares). The number of shares as of March 31, 2019 includes the number of treasury stock held by BBT trust account (18,917 thousand shares).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)
Balance asof March
31, 2019(Thousandsof
U.S.dollars)

As ofApril 1,
2018

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2019

Balance as ofMarch 31,2019
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

$—
(—)

—

707

6,369

—

—
(—)

—
(—)

—

¥707
(—)

$6,369
(—)

MHFG

Total

179

Changes in Net Assets—

Remarks

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2019

Resolution

May 15,2018(

The Board of
Directors

Type)

November 14,
2018(

The Board of
Directors

)

Cash
Cash
Dividends
Dividends(Millions of (Thousands ofyen)
U.S. dollars)

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)Common Stock¥95,186$857,462

¥3.75

$0.03

Common Stock¥95,197$857,560

¥3.75

$0.03

¥190,384$1,715,022

/

/

Total

RecordDate

Effective
Date

March 31,2018

June 4,2018

September 30, December 6,
2018
2018

(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2018 include ¥49 million of
cash dividends on treasury stock held by BBT trust account.
2. Cash dividends based on the resolution of the Board of Directors held on November 14, 2018 include ¥71 millionof cash dividends on treasury stock held by BBT trust account.
Cash dividends with record dates falling in the fiscal year ended March 31, 2019 and effective dates coming after the end of
the fiscal year

Resolution

May 15,2019(

The Board of
Directors

Total

Type

)

Common Stock

Cash
Cash
Dividends
Dividends(Millions of (Thousands ofyen)
U.S. dollars)¥95,197$857,557¥95,197$857,557

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)

Retained
Earnings

¥3.75

$0.03

/

/

Record Effective
Date
Date

March 31, June 4,
2019
2019

(Note) Cash dividends based on the resolution of the Board of Directors held on May 15, 2019 include ¥70 million of cash
dividends on treasury stock held by BBT trust account.

180

Changes in Net Assets

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the fiscal year ended March 31, 2018(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Thousands of Shares
As ofMarch 31, 2018
Remarks

As ofApril 1, 2017

Increase during
the fiscal year

Decrease during
the fiscal year

25,386,307
25,386,307

3,337
3,337

—
—

25,389,644
25,389,644*1

19,992
19,992

12,01812,018

7,181
7,181

24,82924,829*2*1 Increases are due to exercise of stock acquisition rights (stock options) (3,337 thousand shares).
*2 Increases are due to acquisition of treasury stock by BBT trust account (8,130 thousand shares) and repurchase of shares constituting less than one unit andother factors (3,888 thousand shares). Decreases are due to distribution of treasury stock through BBT trust account (3,810 thousand shares), exercise ofstock acquisition rights (stock options) (266 thousand shares), and repurchase of shares constituting less than one unit and other factors (3,104 thousand
shares). The number of shares as of March 31, 2018 includes the number of treasury stock held by BBT trust account (13,319 thousand shares).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2017

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2018

Balance as ofMarch 31,2018
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

MHFG

Total

181

Changes in Net Assets

—

—

1,163

—

—
(—)

—

¥1,163(—)

Remarks

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2018

Resolution

May 15,2017(

The Board of
Directors(

Cash
Dividends
per Share(Yen)

Common Stock¥95,173¥3.75

Common Stock¥95,186¥3.75¥190,360

/

Type

)

November 13,
2017
The Board of
Directors

Cash
Dividends(Millions of
yen)

)

Total

RecordDate

Effective
Date

March 31,2017

June 5,2017

September 30, December 5,
2017
2017

(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2017 include ¥33 million of
cash dividends on treasury stock held by BBT trust account.
2. Cash dividends based on the resolution of the Board of Directors held on November 13, 2017 include ¥49 millionof cash dividends on treasury stock held by BBT trust account.

Cash dividends with record dates falling in the fiscal year ended March 31, 2018 and effective dates coming after the end of
the fiscal year

Resolution

May 15,2018(

The Board of
Directors

Total

Type

)

Common Stock

Cash
Dividends(Millions ofyen)¥95,186¥95,186

Cash
Resource Dividendsof per ShareDividends(Yen)

Retained
Earnings¥3.75

Record Effective
Date
Date

March 31, June 4,
2018
2018

/

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

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

38. Cash Flows
1. Cash and Cash Equivalents on the consolidated statement of cash flows reconciles to Cash and Due from Banks on the
consolidated balance sheet as follows:
As of March 31,

Cash and Due from Banks
Less: Due from Banks excluding duefrom Central Banks
Cash and Cash Equivalents

Millions of yen
2019

2018

Thousands of U.S. dollars
2019¥45,108,602¥47,725,360$406,347,202(853,728)¥44,254,874(1,391,026)¥46,334,334(7,690,551)$398,656,651

2. Significant non-fund transactions:
Trust & Custody Services Bank, Ltd. (“TCSB”), a consolidated subsidiary of MHFG, implemented joint share transfer withJapan Trustee Services Bank, Ltd. (“JTSB”) and incorporated “JTC Holdings, Ltd.” (“JTCHD”), a holding company whose
shareholders are TCSB’s and JTSB’s existing shareholders. As a result, TCSB and JTSB became wholly-owned
subsidiaries of JTCHD. During the fiscal year ended March 31, 2019, TCSB was excluded from the scope of consolidation
as a result of the aforementioned joint share transfer. Amount and breakdown of Assets and Liabilities decreased as aresult of the exclusion from the scope of consolidation are as follows:
As of March 31,

a. Assets

Total Assets
Cash and Due from Banksb. Liabilities Total Liabilities
Due to Trust Accounts

Millions of yen
2019¥9,081,132
5,044,091¥9,022,063
3,620,825

2018

Thousands of U.S. dollars
2019

¥―
―
¥―
―

$81,804,638
45,438,171$81,272,530
32,617,107

39. Lease Transactions
Finance Leases (Lessees)
Finance lease transactions that do not transfer ownership:(1) Lease Assets:• Tangible fixed assets: mainly equipment• Intangible fixed assets: software(2) The method for computing the amount of depreciation is described in “5 Standards of Accounting Method (8) Lease
Assets.”Operating Leases
The future lease payments subsequent to the end of the fiscal year for non-cancelable operating lease transactions are
summarized as follows:
Lessees:
As of March 31,

Due in One Year or Less
Due after One Year
Total

Millions of yen
2019¥51,329
175,386¥226,715

2018

Thousands of U.S. dollars
2019¥51,996
193,996¥245,992$462,384
1,579,917$2,042,301

2018

Thousands of U.S. dollars
2019

¥632
7,267
¥7,899$10,961
70,251$81,212

Lessors:
As of March 31,

Due in One Year or Less
Due after One Year
Total

183

Cash Flows、Lease Transactions

Millions of yen
2019¥1,216
7,798¥9,015

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40. Financial Instruments

1. Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments
Mizuho Financial Group (MHFG), which primarily engages in banking business, incurs financial liabilities such as
customer deposits and market deposits on the funding side while holding financial assets such as customer loans,stocks and bonds on the investment side, and also engages in trading business for certain financial products. Someconsolidated subsidiaries conduct securities business and other financial business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

(2) Contents and Risk of Financial Products
The main financial assets of the Mizuho group consist of loans to customers, government bonds and stocks. These
financial assets are subject to various types of risk that may cause the Group to incur losses due to a decline in, or total
loss of, the value of assets, as a result of deterioration in a counterparty’s and/or an issuer’s financial position (“creditrisk”), or due to a decline in the value of assets caused by fluctuations in interest rates, stock prices and foreignexchange rates and so on (“market risk”). The Group may also be exposed to the risk of incurring losses when it
becomes impossible to execute transactions in the market because of market confusion or losses arising fromtransactions at prices that are significantly less favorable than usual (“market liquidity risk “).
The main financing source of the Mizuho group is a stable source of deposits from its customers in addition to direct
funding from the financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising fromfunding difficulties due to market disruption or a deterioration in our financial position that makes it difficult for us to raise
the necessary funds or that forces us to raise funds at significantly higher interest rates than usual.
In addition, the Mizuho group uses derivative financial products to control the interest rate risk related to the assets
and liabilities of the Group, as part of our asset and liability management (“ALM”). The Group primarily utilizes theportfolio hedge by grouping numerous financial assets and liabilities such as loans and deposits into similar interest risk
units in accordance with risk management policies. Some derivative products like interest rate swaps are used as
hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to the majority ofthese products, treating them as deferred hedges. The effectiveness of the hedges is assessed periodically byregression analysis and other methods to ensure whether the derivative financial products effectively work in order tooffset the exposure to changes in fair value and variable cash flows from hedged items. It should be noted that theMizuho Group uses derivative financial products for trading purposes and so on as well.

(3) Risk Management for Financial Products(a) Commitment to Risk Management
We recognize the conducting of operations tailored to the risks and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures.
We maintain basic policies for risk management established by our board of directors that are applicable to theentire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth the organizational
structure and provide for the human resources training necessary for appropriate levels of risk management. The
policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In linewith these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk
management system.
(b) General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk, liquidity risk
and operational risk, and manage each type of risk according to its characteristics.
In addition to managing each type of risk individually, we have established a risk management structure to identify
and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms.
More specifically, we allocate risk capital to core group companies, including their respective subsidiaries, tocontrol risk within the limits set for each company. We also control risk within managerially acceptable limits by

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

working to ensure that the overall risk we hold on a consolidated basis does not exceed the Group’s financial
strength. To ensure the ongoing financial health of Mizuho Financial Group, we regularly monitor the manner inwhich risk capital is being used in order to obtain a proper grasp of the risk profile within this framework. Reports arealso submitted to the board of directors and other committees of each company.
(c) Credit Risk Management
The board of directors of Mizuho Financial Group determines basic matters pertaining to credit risk management. In
addition, we have established the Risk Management Committee, as one of its business policy committees. This
committee broadly discusses and coordinates basic policy in connection with credit risk management and matters inconnection with overall credit portfolio management and credit risk monitoring for the Mizuho group. Under thecontrol of the Chief Risk Officer of Mizuho Financial Group, the Credit Risk Management Department and the Risk
Management Department jointly monitor, analyze and submit suggestions concerning credit risk and formulate andexecute plans in connection with basic matters pertaining to credit risk management.
We have adopted two different but mutually complementary approaches in credit risk management. The first
approach is “credit management,” in which we manage the process for each individual transaction and individual
obligor from execution until collection, based on our assessment of the credit quality of the customer. Through thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”). We
recognize two types of risk arising from allowing unexpected loss to become too large. One type is “credit
concentration risk,” which stems from granting excessive credit to certain individual counterparties or corporategroups. The other type is “chain-reaction default risk,” which arises from granting excessive credit to certain areas,industrial sectors and other groupings. We manage these risks appropriately in line with our specific guidelines foreach.
The board of directors of each of our principal banking subsidiaries and other core group companies determines
key matters pertaining to credit risk by establishing their respective basic policies in line with the basic policies for
credit risk management set forth by Mizuho Financial Group. Their respective business policy committees are
responsible for discussing and coordinating overall management of their individual credit portfolios and transaction
policies towards obligors.
The chief risk officer of each principal banking subsidiary and core group company is responsible for mattersrelating to planning and implementing credit risk management. Departments in charge of credit risk management are
responsible for planning and administering credit risk management and conducting credit risk measuring andmonitoring. Credit Departments determine policies and approves/disapproves individual transactions regarding
review and management of and collection from customers in accordance with the lines of authority set forth by eachprincipal banking subsidiary. In addition, each of our principal banking subsidiaries has also established internal audit
groups that are independent of the business departments in order to ensure appropriate credit risk management.
(d) Market Risk Management
The board of directors of Mizuho Financial Group determines basic matters pertaining to market risk management
policies. In addition, we have established the Risk Management Committee, as one of its business policy
committees. The committee broadly discusses and coordinates matters concerning basic policy and operations inconnection with market risk management and market risk monitoring, and proposes measures to be taken in
emergencies such as sudden market changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Department of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the department assesses and manages the overall market risk of
the Mizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries andother core group companies. The department also submits reports to the President & CEO on a daily basis and to
our board of directors and the executive management committee of Mizuho Financial Group on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital
allocated to market risk corresponds to VAR and additional costs that may arise in order to close relevant positions.

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For trading and banking activities, we set limits for VAR and for losses. For banking activities, we set position limits
based on interest rate sensitivity as needed.
The board of directors of each of our principal banking subsidiaries and other core group companies determine
key matters pertaining to market risk by establishing their respective basic policies in line with the basic policies formarket risk management set forth by Mizuho Financial Group. Based on a common Mizuho Group risk capital
allocation framework, the above-mentioned companies manage market risk by setting limits according to the risk
capital allocated to market risk by Mizuho Financial Group. They have the same market risk management structure
as the Mizuho Financial Group, such as their business policy committees being responsible for overall discussion
and coordination of the market risk management.
In addition, they have established middle offices specializing in risk management that are independent of theirfront offices, which engage in market transactions, and their back offices, which are responsible for book entries andsettlements. This system enables them to achieve mutual checks and control over market operations.
When VAR is not adequate to control risk, the middle offices manage risk using additional risk indices such as 10
BPV (Basis Point Value), carry out stress tests and set stop loss limits as needed.
(e) Situation of Market Risk
i. Banking Business
The following table shows the VAR figures relating to our banking activities for the fiscal years indicated:
Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
AverageThousands of U.S. dollars

2019

2018

2019

¥194.4
298.5
194.4
255.5

¥268.4
307.2
210.8
267.8

$1,751,347
2,689,054
1,751,347
2,302,489[Definition of Banking Business]
The following transactions are categorized as banking business, with trading business and cross-shareholdings
being categorized separately.
(1) Deposits and loans as well as related funding activities, and hedge against interest rate risk.
(2) Equity (excluding cross-shareholdings), bonds, investment trusts, etc. and hedges against related market
risk.
The core deposit of liquid deposits is to be specified and incorporated into the measurement of market risk.
Banking business VAR used to calculate Market Risk Equivalent is based on the following:• VAR : historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of three years.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal years indicated :Billions of yen

Thousands of U.S. dollars

For the Fiscal Years ended March 31,

2019

2018

2019

As of fiscal year end
Maximum
Minimum
Average

¥2.6
9.2
2.4
3.4

¥3.0
6.2
2.2
3.0

$23,986
83,74822,22030,713[Definition of Trading Business](1) Transactions held for the purpose of short-term resale.
(2) Transactions held for the purpose of making a profit from price fluctuations over a short period as well as
fixing a profit from arbitrage activities.
(3) Deals that have both aspects of (1) and (2) above.
(4) Deals held for broking business or market making business.
Trading business VAR used to calculate Market Risk Equivalent is based on the following:• VAR: historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one trading day; and• historical observation period of three years.
iii. Cross-shareholdings
For cross-shareholdings, we take the same market risk management approach as that for Banking and Tradingbusinesses with the use of VAR and risk indices.
The risk index for the cross-shareholdings (sensitivity of the portfolio to a 1% change in the equity index of
TOPIX) is ¥28.0 billion ($252,983 thousand) and ¥33.0 billion for the fiscal years ended March 31, 2019 and 2018,
respectively.
iv. Risk management using VAR
VAR is a commonly used market risk management technique with statistical assumptions to measure maximum
possible loss in the market, which will be incurred to the holding portfolio in a certain period with some probability.
It should be noted that in general VAR model has the following shortcomings:• VAR estimates could differ by assumptions of holding period, confidence interval level and approaches forthe measurement.
• VAR which is calculated based on historical data does not necessarily indicate an accurate future possible
maximum loss.
• VAR might underestimate the probability of extreme market movements when the market gets inactive as
VAR assumes sales of holding portfolio and hedges in the market during the holding period for the
calculation.
• The use of a 99% confidence level neither takes account of, nor makes any statement about, any losses
that might occur beyond this confidence level.
The historical simulation method used as the measurement technique of VAR assumes that change in a market
movement follows an empirical distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. We check the validity of themarket risk measurement made by VAR approach periodically by the back-test which compares VAR with actual
profit and loss. In addition to VAR, we make a wide variety of management and controls such as risk indicesmonitoring, implementation of stress tests, loss limit monitoring in order to make strict risk management by
capturing carefully all risks, including what VAR approach is not able to cover.
(f) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure describedabove (“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of
Mizuho Financial Group is additionally responsible for matters relating to planning and running cash flow
management operations, while the Financial Planning Department is responsible for monitoring and adjusting

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the cash flow management situation and for planning and implementing cash flow management. Reports on the
cash flow situation are submitted to the Risk Management Committee, the Balance Sheet Management Committee,
the executive management committee and the President & CEO.
We measure liquidity risk using indices pertaining to cash flow, such as limits on funds raised in the market. Limits
on liquidity risk are discussed and coordinated by the Risk Management Committee, discussed further by the
executive management committee and determined by the President & CEO. We have established classifications forthe cash flow conditions affecting the Group, ranging from “normal” to “anxious” and “crisis,” and have establishedprocedures for dealing with cases which are deemed to fall into the “anxious” or “crisis” categories. In addition, we
have constructed a system under which we will be able to respond smoothly in the event of emergency situations
that affect our funding by establishing action plans.

(4) Supplementary Explanation of Matters Relating to Fair Value of Financial Instruments and Others
Fair values of financial instruments include the values based on market prices, and the values deemed as market prices
obtained by the reasonable estimate when the financial instruments do not have market prices. Since certain
assumptions and others are adopted for calculating such values, they may differ when adopting different assumptions
and others.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

2. Matters Relating to Fair Value of Financial Instruments and Others
The following are the consolidated balance sheet amounts, fair values and differences between them as of March 31,
2019 and 2018. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded
from the table below (see (Note 2)).
Millions of yen
As of March 31, 2019(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference¥45,106,880
647,711
12,997,628¥45,106,880
647,711
12,997,628¥―――

2,578,133
2,828,702

2,578,133
2,828,704―
1

5,968,848
349,897

5,968,848
349,897――

1,602,209
27,532,818
78,456,935(249,276)
78,207,658¥177,820,489¥124,311,025
13,338,571
2,841,931
14,640,439

1,609,588
27,532,818

7,378
―

79,261,612¥178,881,824¥124,307,964
13,338,148
2,841,931
14,640,439

1,053,954¥1,061,334¥(3,060)(423)――

1,484,584

1,484,584―

2,579,940
3,061,504
8,351,071
1,102,073¥171,711,141

2,579,940
3,054,910
8,459,713
1,102,073¥171,809,706―(6,594)
108,642―¥98,565¥441,593¥―¥216,790
224,803¥441,593*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

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Millions of yen
As of March 31, 2018

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Reserves for Derivative Transactions *1
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference¥47,723,757
714,870
8,080,873¥47,723,757
714,870
8,080,873¥―――

4,350,527
2,713,345

4,350,527
2,713,347―
1

5,188,400
336,203

5,188,400
336,203――2,515,830
31,103,130
79,421,473(275,439)
79,146,034¥181,872,972¥125,081,233
11,382,590
2,105,293
16,656,828

2,521,846
31,103,130

6,016
―

80,053,839¥182,786,795¥125,063,500
11,382,089
2,105,293
16,656,828

907,804¥913,822¥(17,733)
(500)
―
―

1,566,833

1,566,833―

3,185,101
4,896,218
7,544,256
4,733,131¥177,151,488

3,185,101
4,886,962
7,591,266
4,733,131¥177,171,007―(9,256)47,009―¥19,519¥501,212¥―¥267,784
234,783(1,355)¥501,212*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
As of March 31, 2019(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference$406,331,690
5,834,714
117,085,207$406,331,690
5,834,714
117,085,207$―――

23,224,336
25,481,511

23,224,336
25,481,528―
17

53,768,569
3,151,944

53,768,569
3,151,944――

14,433,022
248,021,062
706,755,565(2,245,535)
704,510,030$1,601,842,085$1,119,818,262
120,156,486
25,600,682
131,883,966

14,499,489
248,021,062

66,467―714,004,260$1,611,402,799$1,119,790,694
120,152,674
25,600,682
131,883,966

9,494,230$9,560,714$(27,568)(3,812)――

13,373,429

13,373,429―

23,240,609
27,578,633
75,228,098
9,927,700$1,546,807,865

23,240,609
27,519,233
76,206,772
9,927,700$1,547,695,759―(59,400)
978,674―$887,894$3,977,962$―$1,952,888
2,025,074$3,977,962*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

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2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Note 1) Calculation method of fair value of financial instruments
Assets(1) Cash and Due from Banks
For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem thebook values to be fair values. For Due from Banks which have maturity, since contractual terms of these items aremainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values
to be fair values.
(2) Call Loans and Bills Purchased, (3) Receivables under Resale Agreements and (4) Guarantee Deposits Paid under
Securities Borrowing Transactions
Since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items
approximate book values, we deem the book values to be fair values.
(5) Other Debt Purchased
Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonableestimate such as those obtained from brokers and financial information vendors.
(6) Trading Assets
Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.
(7) Money Held in Trust
As to securities managed as trust assets in a directed money trust for separate investment with the management of
securities as its primary purpose, fair values of these items are calculated using the method stated in (8). For other
Money Held in Trust, since fair values of these items approximate book values, we deem the book values to be fairvalues.
The notes to Money Held in Trust based on holding purpose are stated in “41.Fair Value of Securities and Money
Held in Trust.”(8) Securities
Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on themarket prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are
based on the disclosed net asset value and others. Fair values of private placement bonds are calculated by discounting
the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss
and various risk factors by categories according to the internal ratings and terms.
Fair values of securitized products are based on valuations obtained from brokers and others, and reasonably
calculated prices based on the reasonable estimates of our management. In deriving reasonably calculated prices
based on the reasonable estimates of our management mentioned above, we used the discounted cash flow method.
The price decision variables include default rates, recovery rates, pre-payment rates, and discount rates.
Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices
may not reflect the fair value, are based on the reasonably calculated prices as book value. In deriving the reasonably
calculated prices, we used the discount cash flow method as well as other methods. The price decision variables include
the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese
Government Bonds as underlying assets.
The notes to Securities based on holding purpose are stated in “41.Fair Value of Securities and Money Held in Trust.”(9) Loans and Bills Discounted
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at
interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to thetypes, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors,
substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated
based on the present value of the expected future cash flows or the estimated amounts that we would be able to collectfrom collateral and guarantees, fair values approximate the amount of Debentures and others minus the amount of

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Reserves for Possible Losses on Loans in the consolidated balance sheet as of the consolidated balance sheet date
and we thus deem such amount to be fair values.
Of the Loans and Bills Discounted, for those without a fixed maturity due to loan characteristics such as limiting loans
to within the value of pledged assets, we deem book values to be fair values since fair values are expected toapproximate book values based on the estimated loan periods, interest rates and other conditions.
Liabilities(1) Deposits (2) Negotiable Certificates of Deposit
For demand deposits, we deem the payment amounts required on the consolidated balance sheet date (i.e., bookvalues) to be fair values. In addition, fair values of fixed deposits and negotiable certificates of deposits are calculated byclassifying them based on their terms and by discounting the future cash flows. The discount rates used in suchcalculations are the interest rates. Since fair values of those whose deposit terms are short (i.e., within six months)
approximate book values, we mainly deem the book values to be fair values.
(3) Call Money and Bills Sold, (4) Payables under Repurchase Agreements and (5) Guarantee Deposits Received under
Securities Lending Transactions
Since contractual terms of these financial instruments are mainly short (i.e., within six months) and fair values
approximate book values, we deem the book values to be fair values.
(6) Trading Liabilities
Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.
(7) Borrowed Money
Fair values of Borrowed Money are calculated mainly by discounting the total amount of the principal and interest ofsuch Borrowed Money classified by certain period at the interest rates considered to be applicable to similar loans.
(8) Bonds and Notes
Fair values of Bonds and Notes issued by MHFG and its consolidated subsidiaries are based on the market prices for
Bonds and Notes which have market prices, and calculated by discounting the total amount of principal and interest by
the interest rates considered to be applicable to similar Bonds and Notes for those which do not have market prices.
(9) Due to Trust Accounts
Due to Trust Accounts of consolidated trust banking subsidiaries is used for transactions in which consolidated trust
banking subsidiaries manage fund entrusted to them in bank accounts of consolidated trust banking subsidiaries. As the
purpose is considered to approximate demand deposit, we deem the book values to be fair values.
Derivative Transactions
Derivative transactions include interest rate-related transactions (futures, options, swaps and others), currency-relatedtransactions (futures, options, swaps and others), bond-related transactions (futures, futures options and others), andare based on the prices on securities exchanges, discounted value of future cash flows, option pricing models andothers.

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2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Note 2) Consolidated balance sheet amounts of financial instruments whose fair values are deemed to be extremely
difficult to determine are indicated below, and are not included in “Assets (7) Money Held in Trust” and “Assets (8)Other Securities” in fair value information of financial instruments.

2019
Consolidated Balance
Sheet Amount

2018
Consolidated Balance
Sheet AmountThousands of U.S.
dollars
2019
Consolidated Balance
Sheet Amount¥178,677
126,533
2,077¥307,288¥204,081
104,569
1,263¥309,913$1,609,560
1,139,841
18,713$2,768,114

Millions of yen
As of March 31,
Category(i) Unlisted Stocks *1(ii) Investments in Partnerships and others *2(iii) Other
Total *3

*1 We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult todetermine fair values.

*2 Of the Investments in Partnerships and others, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are

deemed extremely difficult to determine fair values as being subject to disclosure of fair values.

*3 During the fiscal years ended March 31, 2019 and 2018, the amounts of impairment (devaluation) were ¥2,316 million ($20,871 thousand) and ¥3,794

million, respectively, on a consolidated basis.

(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥44,406,145¥0¥―Call Loans and Bills Purchased
648,254――
Other Debt Purchased
2,587,337
57,64958,456
12,495,355
4,481,569
1,277,419
Securities *1
Bonds Held to Maturity
640,000―
380,000
Japanese Government Bonds
640,000―
380,000
Foreign Bonds―――
Other Securities with Maturities
11,855,355
4,481,569
897,419
Japanese Government Bonds
7,832,924
2,308,100
10,220Japanese Local Government
7,217
66,73451,431
Bonds
Japanese Corporate Bonds
355,767
639,809563,669
Foreign Bonds
3,643,312
1,451,173
196,210
Other
16,13415,75275,88828,990,334
17,588,913
12,332,623
Loans and Bills Discounted *2
Total¥89,127,427 ¥22,128,133 ¥13,668,500

¥―
―
4,004
657,610100,000
100,000―
557,610105,200¥――
5,551
2,466,845―――
2,466,845
1,319,200¥――
114,741
2,450,426
454,614―454,614
1,995,812
245,000

14,96962,416

4,766

306,147
99,09732,195
6,127,745¥6,789,360

231,077825,986
28,1654,810,240¥7,282,638

578,595
1,099,720
67,7307,386,646¥9,951,814

As of March 31, 2019
Types of Financial Instruments

Within 1 year

1-3 years

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥46,715,934¥200¥0Call Loans and Bills Purchased
715,149——
Other Debt Purchased
2,468,141
64,33840,744
10,525,858
5,374,758
3,753,350
Securities *1
Bonds Held to Maturity
840,000
640,000
100,000
Japanese Government Bonds
840,000
640,000
100,000
Foreign Bonds———
Other Securities with Maturities
9,685,858
4,734,758
3,653,350
Japanese Government Bonds
6,281,356
3,146,400
1,841,800
Japanese Local Government
31,942
25,48092,288
Bonds
Japanese Corporate Bonds
459,476792,243
488,381
Foreign Bonds
2,887,975
760,999
1,147,715
Other
25,106
9,635
83,16433,417,990
16,156,883
11,446,603
Loans and Bills Discounted *2
Total¥93,843,074 ¥21,596,181 ¥15,240,697

¥—
—
4,573
1,824,092
380,000
380,000—
1,444,092
355,425¥——
5,273
2,949,807———
2,949,807
1,494,800¥——
129,730
3,069,029
522,783—
522,783
2,546,245
100,000

57,001

24,141

4,444

As of March 31, 2018
Types of Financial Instruments

As of March 31, 2019
Types of Financial Instruments

Within 1 year

Within 1 year

1-3 years

1-3 years

3-5 years

219,019799,771
12,8755,495,875¥7,324,541

201,658
790,625
1,192,863
1,599,648
36,34351,527
4,725,641
7,044,731¥7,680,722 ¥10,243,490

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

Due from Banks$400,019,330
$1
$—
$—
$—
$—
Call Loans and Bills Purchased
5,839,602—————
Other Debt Purchased
23,307,244
519,318
526,592
36,07650,012
1,033,611
112,560,633
40,370,863
11,507,248
5,923,887 22,221,834 22,073,926
Securities *1
Bonds Held to Maturity
5,765,246—
3,423,115
900,820—
4,095,256
Japanese Government Bonds
5,765,246—
3,423,115
900,820——
Foreign Bonds
—
—
—
—
—
4,095,256
Other Securities with Maturities 106,795,387
40,370,863
8,084,133
5,023,067 22,221,834 17,978,670
Japanese Government Bonds 70,560,527
20,791,821
92,064
947,662 11,883,614
2,207,008
Japanese Local Government
65,013
601,156
463,306
134,850
562,256
42,934
Bonds
Japanese Corporate Bonds
3,204,823
5,763,528
5,077,644
2,757,841
2,081,588
5,212,101
Foreign Bonds
32,819,678
13,072,459
1,767,499
892,688
7,440,652
9,906,501
Other
145,346
141,899
683,620
290,026
253,724
610,126
261,150,658 158,444,410 111,094,707 55,199,939 43,331,599 66,540,370
Loans and Bills Discounted *2
Total$802,877,467 $199,334,592 $123,128,547 $61,159,902 $65,603,445 $89,647,907*1 Securities include those of which fair values are extremely difficult to determine.
*2 Amounts do not include loans to bankrupt, substantially bankrupt, and intensive control obligors and other loans, of which redemption amounts cannot be

projected, of ¥388,952 million ($3,503,762 thousand) and ¥353,132 million, and loans with no maturities of ¥831,478 million ($7,490,120 thousand) and¥780,615 million as of March 31, 2019 and 2018, respectively.

195

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2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Note 4) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money,
and other interest-bearing liabilities
As of March 31, 2019
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total¥120,184,354¥3,166,200¥703,893¥61,692¥53,935¥140,948

12,964,482
2,841,931
970,310355,539
1,010,378
1,102,073¥139,429,069

377,476—
1,058,972—
1,494,347—¥6,096,997——
304,205—
1,158,429—¥2,166,528——
258,013—
1,014,681—¥1,334,388——
225,203—1,464,885—¥1,744,024——
244,798—
623,757—¥1,009,504

As of March 31, 2018
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years¥121,278,407¥2,974,182¥691,786¥86,972¥41,370¥8,514

11,021,750
2,105,293
2,221,554
362,185
740,960
4,733,131¥142,463,282

357,705—
1,541,595—
1,145,772—¥6,019,255

4,062—
309,410—
1,883,455—¥2,888,714——
260,283—
626,680—¥973,936——
303,808—
1,375,904—¥1,721,082——
259,565—
532,969—¥801,049

Within 1 year

1-3 years

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years
Over 10 years$1,082,644,393$28,521,759$6,340,812$555,742$485,863$1,269,693

116,786,614
25,600,682
8,740,745
3,202,767
9,101,693
9,927,700$1,256,004,594

3,400,382—
9,539,437—
13,461,378—$54,922,956——
2,740,348—
10,435,360—$19,516,520——
2,324,236—
9,140,454—$12,020,432——
2,028,678—
13,195,978—$15,710,519——
2,205,189—
5,618,934—$9,093,816

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total
As of March 31, 2019
Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Bonds and Notes with no maturities of ¥1,585,000 million ($14,277,993 thousand) and ¥1,239,000 million as of March 31, 2019 and2018, respectively.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

41. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities, Short-term Bonds, certain other items in“Trading Assets,” Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt
Purchased,” certain items in “Other Assets,” and “Money Held in Trust.”
Millions of yen

As of March 31, 2019

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥1,602,209¥1,609,588¥7,378¥1,119,898
1,119,898―¥1,139,806
1,139,806―¥19,907
19,907―¥482,311―
482,311¥469,782―
469,782¥(12,528)―(12,528)
Millions of yen

As of March 31, 2018

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥2,515,830¥2,521,846¥6,016¥1,959,909
1,959,909—¥1,984,382
1,984,382—¥24,472
24,472—¥555,920—
555,920¥537,464—
537,464¥(18,455)—(18,455)

Thousands of U.S. dollars

As of March 31, 2019

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

197

Fair Value of Securities and Money Held in Trust

Consolidated
Balance
Sheet Amount

Fair value

Difference$14,433,022$14,499,489$66,467$10,088,268
10,088,268―$10,267,597
10,267,597―$179,329
179,329―$4,344,754―
4,344,754$4,231,892―
4,231,892$(112,862)―(112,862)

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Millions of yen

As of March 31, 2019

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference¥27,847,545¥26,157,679¥1,689,866*2¥17,628,160
2,960,189
9,221,413
7,535,858
156,467―
1,529,088
5,446,557
4,855,723
72,221
518,612¥15,744,723
1,185,729
9,184,129
7,527,102
154,795―
1,502,230
5,374,864
4,820,417
70,840483,606¥1,883,436
1,774,459
37,284
8,755
1,671
―
26,857
71,69235,3061,380
35,005¥10,219,384
183,371
5,565,535
4,360,275
53,424―
1,151,835
4,470,477
2,562,598
93,894
1,813,985¥10,412,955
234,169
5,597,550
4,363,110
53,512―
1,180,927
4,581,235
2,574,210
94,084
1,912,940¥(193,570)(50,797)(32,014)(2,834)(87)―(29,092)(110,757)(11,611)(190)(98,955)¥4,641¥4,641¥—

198

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen

As of March 31, 2018

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

199

Fair Value of Securities and Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference¥31,581,138¥29,626,911¥1,954,226*2¥14,261,162
3,402,250
7,512,070
5,786,004
151,508—
1,574,556
3,346,841
2,641,061
74,171
631,608¥12,002,479
1,351,285
7,474,247
5,775,747
148,605—
1,549,894
3,176,946
2,629,413
72,973474,559¥2,258,682
2,050,964
37,822
10,257
2,903—
24,662
169,894
11,647
1,198
157,048¥17,319,975
179,989
9,023,533
7,546,089
87,82499
1,389,519
8,116,452
5,688,079
112,361
2,316,011¥17,624,431
213,582
9,055,945
7,555,729
88,10599
1,412,009
8,354,904
5,865,823
112,641
2,376,439¥(304,455)¥3,199¥3,199¥—(33,592)(32,411)(9,640)(280)—(22,489)(238,451)(177,743)(279)(60,428)

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Thousands of U.S. dollars

As of March 31, 2019

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference$250,856,187$235,633,538$15,222,649*2$158,797,949
26,665,969
83,068,317
67,884,504
1,409,486―
13,774,327
49,063,663
43,741,316
650,584
4,671,763$141,831,583
10,681,286
82,732,452
67,805,630
1,394,432―
13,532,390
48,417,845
43,423,272
638,149
4,356,424$16,966,366
15,984,683
335,865
78,874
15,054―
241,937
645,818
318,044
12,435
315,339$92,058,238
1,651,846
50,135,446
39,278,226
481,259―
10,375,961
40,270,946
23,084,392
845,817
16,340,737$93,801,955
2,109,443
50,423,837
39,303,761
482,047―
10,638,029
41,268,675
23,188,992
847,534
17,232,149$(1,743,717)(457,597)(288,391)(25,535)(788)―(262,068)(997,729)(104,600)(1,717)(891,412)$41,816$41,816$―*1 The fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.

The fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date.
*2 Unrealized Gains (Losses) or Difference include gains of ¥38,000 million ($342,319 thousand) and ¥28,273 million which were recognized in the statements

of income for the fiscal years ended March 31, 2019 and 2018, respectively, by applying the fair-value hedge method.

Note: A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains andlosses recognized in the statement of income are as follows: *Millions of yen
Unrealized
gains (losses)

Unrealized
gains (losses)

Thousands of U.S. dollars
2019
Unrealized
gains (losses)¥15,812¥(51,558)$142,439
Thousands of U.S. dollars
2019
Unrealized
Fair value gains (losses)

2019
As of March 31,

Trading Securities

2018

Millions of yen
2019

2018

As of March 31,

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)

Money Held in Trust for
Investment¥347,247¥(175)¥334,230¥381$3,128,072$(1,578)* Fair values of trading securities as of March 31, 2019 and 2018 are described in “40. Financial Instruments.”

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amountof losses
Proceedsof gains
on salesfrom sales
on sales

For the Fiscal Year ended March 31,
2019

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥398,587
19,662,280
18,749,068¥217,587
24,42020,981¥25,532
14,55814,287$3,590,551
177,121,706
168,895,311$1,960,073
219,984
189,010$229,999
131,149
128,702108,741

1,747

7

979,562

15,73863

804,470
18,208,373¥38,269,240

1,691
208,878¥450,886

264
176,851¥216,942

7,246,833
164,024,620$344,736,877

15,236
1,881,619$4,061,676

2,384
1,593,111$1,954,259

Millions of yen
Total amount Total amountof losses
Proceedsof gains
on salesfrom sales
on sales

For the Fiscal Year ended March 31,
2018

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

Thousands of U.S. dollars
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales¥362,292
29,552,146
28,948,271¥185,676
26,102
22,739¥4,547
10,7289,781

97,4441,205

54506,429
12,647,126¥42,561,564

2,158
168,482¥380,262

893
102,863¥118,139

Note: The above table contains Other Securities that are deemed extremely difficult to determine fair values.

Unrealized Gains/Losses on Other Securities
Unrealized Gains/Losses on Other Securities as of March 31, 2019 and 2018 are as follows:

As of March 31,

Difference between Acquisition Cost and Fair Value*1
Other Securities*2
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Non-controlling Interests
Amount Corresponding to Net Unrealized Gains (Losses) on
Other Securities Owned by Affiliated Companies, which is
attributable to MHFGNet Unrealized Gains (Losses) on Other Securities

2018

Thousands of
U.S. dollars
2019¥1,651,704
1,651,704(452,032)
1,199,672
16,592¥1,925,837
1,925,837(518,090)
1,407,747
20,790$14,878,884
14,878,884(4,071,999)
10,806,885
149,467

3,322

5,436

29,925¥1,186,401¥1,392,392$10,687,343

Millions of yen
2019*1 The difference between acquisition cost and fair value excludes ¥(38,000) million ($(342,319) thousand) and ¥(28,273) million which were recognized in thestatements of income for the fiscal years ended March 31, 2019 and 2018, respectively, by applying the fair-value hedge method.
*2 Other Securities includes translation differences regarding securities which do not have readily determinable fair value.

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42. Derivatives Information
The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as ofMarch 31, 2019 and 2018 is shown in the tables below. In the following tables:(i) Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
Contract value amounts do not indicate the market risk related to derivative transactions.
(ii) Fair values of listed contracts are based on the closing prices of the Osaka Exchange, the Tokyo Financial
Exchange, the New York Mercantile Exchange and others. Fair values of over-the-counter contracts and intercompany or internal transactions are based on the discounted value of future cash flows, option pricing models andothers.

(1) Derivative Transactions not Qualifying for Hedge Accounting
Transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated
statement of income.
(a) Interest Rate-Related Transactions

As of March 31, 2019

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Contract valueOver one year
Total

Fair value

Millions of yen
Unrealized
gains (losses)¥5,271,028
4,937,314¥1,170,467
1,038,597¥(11,769)
10,720¥(11,769)
10,72068,982366,497

5,426
26,713

(88)
145

(49)
(11)

24,986,558
23,745,677

337,427
356,242(7,444)
4,439(7,444)4,439

437,805,612
432,199,871
96,243,012
490,281355,064,104
349,054,509
74,473,472
471,171

5,073,779(4,958,342)
27,9996,110

5,073,779(4,958,342)
27,9996,110

7,659,317
5,682,687

5,756,825
4,079,574(21,010)
21,875(21,010)
21,8755,728,950
11,983,010/

5,514,595
10,549,204/

179,713(185,847)¥140,280

179,713(185,847)¥140,163

202

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2018

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

203

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥7,629,009
7,382,738¥2,781,286
2,527,389¥24,873(26,372)¥24,873(26,372)

148,802
318,186

38,606
―

(157)
715

119
22

29,881,631
28,470,832

657,637
641,350(6,103)
4,272(6,103)
4,272

408,239,583
404,255,318
89,307,829
613,586

335,944,031
328,525,087
68,275,480
556,686

3,331,370(3,350,175)
42,651
5,675

3,331,370(3,350,175)
42,651
5,675

6,348,557
3,925,710

4,448,904
2,669,122(20,162)
19,766(20,162)
19,7665,802,848
10,811,184/

5,629,482
9,824,803/(42,404)
114,074¥98,024(42,404)
114,074¥97,607

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2019

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$47,482,465
44,476,308$10,543,803
9,355,889$(106,024)
96,574$(106,024)
96,574621,4093,301,486

48,881
240,645

(799)
1,312

(449)
(100)

225,083,856
213,905,751

3,039,617
3,209,106(67,065)
39,989(67,065)
39,9893,943,839,404
3,893,341,784
866,976,060
4,416,554

3,198,487,565
3,144,351,947
670,871,743
4,244,407

45,705,611(44,665,731)
252,227
55,04645,705,611(44,665,731)
252,227
55,046

68,996,641
51,190,772

51,858,617
36,749,611(189,267)
197,061(189,267)
197,061

51,607,515
107,945,328/

49,676,565
95,029,316/

1,618,896(1,674,151)$1,263,679

1,618,896(1,674,151)$1,262,617

204

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Currency-Related Transactions

As of March 31, 2019

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

As of March 31, 2018

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

205

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥14,389
56,061¥56
11,939¥――¥――51,184,817

37,680,355

169,30987,121

69,961,828
34,177,574

2,808,061
1,235,536(197,466)
210,658(197,466)
210,658

3,711,388
3,742,133

1,164,432
949,891(38,603)43,7579,808(8,809)2,980,292

2,126,659(132,328)

20,267

10,465/―/

84¥55,41184¥121,663

Fair value

Millions of yen
Unrealized
gains (losses)

Contract value
Total
Over one year

¥21,239
92,245¥1,86022,828¥——¥——49,506,179

34,820,751

245,294

164,945

67,299,060
30,337,434

2,966,015
1,229,813

537,765(469,341)

537,765(469,341)

2,451,245
2,308,666

1,087,293
919,460(39,530)
66,225

14,894
8,218

3,190,555

2,362,942(250,755)

18,009165,472/—/(2,090)¥87,568(2,090)¥272,402

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2019

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$129,627
505,013$507
107,558

$―
―

$―
―

461,082,941

339,432,084

1,525,174

784,805

630,229,969
307,878,337

25,295,572
11,129,953(1,778,815)
1,897,650(1,778,815)
1,897,650

33,432,916
33,709,878

10,489,440
8,556,811(347,750)
394,179

88,357(79,359)

26,847,061

19,157,371(1,192,045)

182,571

94,274/―/761$499,154761$1,095,970

Fair value

Millions of yen
Unrealized
gains (losses)(c) Stock-Related Transactions

As of March 31, 2019

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Contract value
Total
Over one year

¥719,406
304,830¥――¥(8,846)971¥(8,846)971

1,564,602
1,520,734

550,466
387,167(72,756)
53,882

6,380(16,787)

332,369

295,630

27,124

27,124

494,539
201,329

340,842
116,343(52,538)
69,367(52,538)
69,367―
371,911/―257,348/―283¥17,487―283¥25,955

206

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2018

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

As of March 31, 2019

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

207

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥345,159
677,676¥10,570—¥1,986
8,524¥1,986
8,524

1,788,049
1,733,309

422,988371,505(78,493)
71,196(3,245)
1,012

242,490

220,351

13,93813,938705,136
334,443

412,365
141,885(73,573)
103,731(73,573)
103,731

164,010434,136/

37,531
303,637/(1,004)37,958¥84,265(1,004)37,958¥89,329

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$6,480,560
2,745,971$――$(79,695)
8,756$(79,695)
8,756

14,094,251
13,699,072

4,958,707
3,487,682(655,409)
485,387

57,480(151,222)

2,994,053

2,663,098

244,346244,3464,454,907
1,813,613

3,070,379
1,048,043(473,281)
624,877(473,281)
624,877―
3,350,249/―
2,318,245
/

―
2,550
$157,531―
2,550$233,811

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(d) Bond-Related Transactions
Millions of yen
2019

2018

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Contract value
Fair
Unrealized
value gains (losses)

Total

Over
one year

Total

Over
one year¥792,227
674,829¥――¥(6,496)
7,354

129,948
252,433――

632,942
633,054
139,680
129,465/

Unrealized
Fairvalue gains (losses)¥(6,496)
7,354¥795,996
626,268¥——¥(4,155)
4,206¥(4,155)
4,206

(124)
189

(37)
(26)

265,529
158,042

—
—

(246)
184

(104)
48

207,161
207,161(8,098)
7,455(7,291)
6,632

827,444827,685

283,966
283,966(26,511)26,040(25,779)
25,702――/(1,313)696¥(336)(1,313)696¥(482)

357,473
297,989
/

—
—
/

(664)
271
¥(875)(664)
271¥(475)

Thousands of U.S. dollars
2019
Contract value
As of March 31,

Total

Listed:Futures:Sold$7,136,539
Bought6,078,997
Futures Options:Sold
1,170,598
Bought2,273,967
Over-the-Counter:
Options:
Sold
5,701,675
Bought
5,702,681
Other:
Sold
1,258,272
Bought1,166,254
Total
/

Over
One year

Fair
Unrealized
value gains (losses)$――$(58,518)
66,251$(58,518)
66,251――(1,119)
1,706

(339)
(242)

1,866,154
1,866,154(72,954)
67,162(65,682)
59,743――/(11,832)
6,272$(3,032)(11,832)
6,272$(4,347)

208

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(e) Commodity-Related Transactions
Millions of yen
2019

2018

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
Over-the-Counter:
Swaps
Options:
Sold
BoughtTotal

Contract value
Fair
Unrealized
value gains (losses)

Total

Over
one year

Total

Over
one year¥9,482
15,634¥557
2,425¥(707)
1,996

233

―

―
205,339
206,872/¥(707)
1,996¥22,101
32,891¥3,108
8,979¥(3,563)5,675¥(3,563)
5,675

(11)

3

—

—

—

—

―

―

―

2,516

—

0

0

50,214
48,150/(2,572)
3,898¥2,603(2,572)
3,898¥2,618147,475
130,003/

50,06840,133/(7,871)
7,508¥1,749(7,871)
7,508¥1,749Thousands of U.S. dollars
2019
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
Over-the-Counter:
Swaps
Options:
Sold
BoughtTotal

Fair
Unrealized
value gains (losses)

Total

Over
one year$85,424
140,835$5,024
21,849$(6,370)
17,981$(6,370)
17,981

2,100

―

(105)

34

―

―

―

―

1,849,740
1,863,544/

452,343433,749/(23,175)
35,120$23,451(23,175)
35,120$23,590

Note: Commodities include oil, copper, aluminum and others.

209

Derivatives Information

Unrealized
Fairvalue gains (losses)

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(f) Credit Derivative Transactions

As of March 31, 2019

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2018

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2019

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

Contract value
Total
Over one year

¥1,465,454
1,628,301/¥1,139,869
1,260,718/

Contract value
Total
Over one year

¥1,302,042
1,541,030/¥973,507
1,147,481/

Contract value
Total
Over one year

$13,201,108
14,668,059/$10,268,172
11,356,801/

Fair value

Millions of yen
Unrealized
gains (losses)¥15,200(13,856)¥1,343¥15,200(13,856)¥1,343

Fair value

Millions of yen
Unrealized
gains (losses)¥19,445(22,392)¥(2,947)¥19,445(22,392)¥(2,947)

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$136,928(124,823)$12,105$136,928(124,823)$12,105

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

210

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions
Millions of yen
As of March 31, 2019

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds
and notes, borrowings andothersContract value
Total
Over one year

Fair value¥22,394,730
7,569,787¥19,101,815
7,339,228¥289,554(206,003)

14,967

14,382

94

69,176/37,388/Other securities and others

Loans and others
Note 2¥83,646
Millions of yen

As of March 31, 2018

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Float / Pay Fixed
Total

211

Derivatives Information

Primary
hedged items

Loans, deposits, bonds
and notes, borrowings andothersContract valueOver one year
Total

Fair value¥25,251,272
7,281,066¥20,768,457
7,076,303¥(32,646)
29,562335,553

325,4215,724

57,478/51,379/Other securities and others

Loans and others
Note 2¥2,6402019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2019

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds
and notes, borrowings andothersThousands of U.S. dollars
Contract value
Total
Over one year
Fair value$201,736,151
68,190,142$172,072,925
66,113,218$2,608,368(1,855,717)

134,827

129,564854

623,151/

336,803/

Other securities and others

Loans and others
Note 2$753,505

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24,
February 13, 2002).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of loans andborrowings, hedged items, those fair values are included in fair values of such loans and borrowings in “40.
Financial Instruments.”(b) Currency-Related Transactions
Millions of yen
As of March 31, 2019

Primary Method :Swaps
Forwards:
Sold
Total

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersContract value
Total
Over one year

Fair value¥6,492,483¥2,891,166¥148,252

10,465/―/(84)¥148,167
Millions of yen

As of March 31, 2018

Primary Method :Swaps
Forwards:
Sold
Total

As of March 31, 2019

Primary Method :Swaps
Forwards:
Sold
Total

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersPrimary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersContract value
Total
Over one year

Fair value¥6,940,073¥2,739,832¥238,620

166,448
/

―
/

2,083
¥240,704

Thousands of U.S. dollars
Contract valueOver one year
Total
Fair value$58,485,571$26,044,197$1,335,485

94,274
/

―
/

(761)
$1,334,724

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.
25, July 29, 2002).
2. Forward Exchange Contracts qualifying for the allocation method are treated as a unit of short-term bonds,
hedged items.

212

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions
Millions of yen
As of March 31, 2019

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

Primary
hedged items

Contract value
Total
Over one year

Fair value

Other securities¥153,791/¥143,123/¥(7,010)¥(7,010)
Millions of yen

As of March 31, 2018

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

As of March 31, 2019

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

213

Derivatives Information

Primary
hedged items

Contract valueOver one year
Total

Fair value

Other securities¥161,773/

Primary
hedged items¥146,226/¥(8,561)¥(8,561)

Thousands of U.S. dollars
Contract valueOver one year
Total
Fair value

Other securities$1,385,385/$1,289,283/$(63,155)$(63,155)

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43. Segment Information
Segment Information by Management Approach

1. Summary of Reportable Segment
MHFG has introduced an in-house company system based on the group’s diverse customer segments. The aim of thissystem is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking,trust and securities functions under a holding company structure, to speedily provide high-quality financial services thatclosely match customer needs.
Specifically, the company system is classified into the following five in-house companies, each based on a customer
segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company,
the Global Markets Company, and the Asset Management Company. The services that each in-house company is incharge of are as follows:
Retail & Business Banking Company:
Services for individual customers, small and medium-sized enterprises and middle market firms in Japan
Corporate & Institutional Company:
Services for large corporations, financial institutions and public corporations in Japan
Global Corporate Company:
Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.
Global Markets Company:
Investment services with respect to interest rates, equities and credits, etc., and other services
Asset Management Company:
Development of products and provision of services that match the asset management needs of its wide rangeof customers from individuals to institutional investors.
The reportable segment information, set forth below, is derived from the internal management reporting systems used bymanagement to measure the performance of the Group’s operating segments.
Management measures the performance of each of the operating segments in accordance with internal managerial
accounting rules and practices.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts) + Net
Gains or Losses Related to ETFs and Others, Net Business Profits or Losses (excluding the amountsof credit costs of trust accounts, before reversal of (provision for) general reserve for losses onloans) + Net Gains or Losses Related to ETFs and Others, and Fixed Assets by Reportable Segment
The following information of reportable segment is based on internal management reporting:Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others isthe total amount of Interest Income, Fiduciary Income, Fee and Commission Income, Trading Income, Other Operating
Income,and Net gains or losses related to ETFs and others.
Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for)general reserve for losses on loans) + Net gains or losses related to ETFs and others is the amount of which General andadministrative expenses (excluding non-recurring expenses and others), Equity in income from investments in affiliates,
Amortization of goodwill and others (including amortization of intangible assets),and Others (consolidation adjustments) are
deducted from, or added to, Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses
related to ETFs and others.
Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others
relating to transactions between segments is based on the current market prices.
Fixed assets disclosed as asset information by segment are the total amount of tangible fixed assets and intangible fixed
assets. Fixed assets pertaining to Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd.
have been allocated to each segment.

214

Segment Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3. Gross Profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related
to ETFs and others, Net Business Profits or Losses (excluding the amounts of credit costs of trust
accounts, before reversal of (provision for) general reserve for losses on loans) + Net Gains or
Losses Related to ETFs and Others, and Fixed Assets by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2019

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others¥
General andadministrative
expenses(excluding NonRecurring Losses
and others)
Equity in income
from investments
in affiliates
Amortization of
goodwill andothersOthersNet businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others ¥Fixed assets¥

215

Segment Information

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others(Note 2)

Total

707,151 ¥473,809 ¥416,096 ¥192,048 ¥49,657 ¥(11,039) ¥ 1,827,721

713,735

198,135

251,877

203,349

27,232

46,2781,440,606

18,130

872

7,348

－

1,280

23,585

51,215

363
－

425
－

369
－

2,346
－

8,000
－

2,067
(16,386)

13,570(16,386)

11,183 ¥499,314 ¥

276,121 ¥
225,821 ¥

171,198 ¥
176,921 ¥(13,647) ¥92,608 ¥

15,705 ¥111 ¥(52,186) ¥408,373
662,462 ¥ 1,657,237

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Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2018

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others¥
General andadministrative
expenses(excluding NonRecurring Losses
and others)
Equity in income
from investments
in affiliates
Amortization of
goodwill andothersOthersNet businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others ¥Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others(Note 2)

Total

726,879 ¥431,395 ¥

340,687 ¥389,185 ¥50,093 ¥57,316 ¥1,995,555

724,749

202,553

250,907

201,135

27,60837,295

1,444,247

12,674

1,038

2,256

—

2,916

2,590

21,474

363
—

425
—

369
—

2,346
—

8,000
—

2,371
(20,888)

13,874(20,888)

14,441 ¥229,445 ¥

91,667 ¥

185,704 ¥17,401 ¥(648) ¥

538,019

216

Segment Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2019

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others$ 6,370,156 $ 4,268,165 $ 3,748,275 $ 1,730,006 $General andadministrative
expenses(excluding NonRecurring Losses
and others)
6,429,466
1,784,839
2,268,958
1,831,808
Equity in income
from investments
in affiliates
163,319
7,855
66,192—
Amortization of
goodwill andothers
3,270
3,828
3,324
21,133
Others————Net businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others $100,739 $ 2,487,353 $ 1,542,185 $ (122,935) $Fixed assets$ 4,497,919 $ 2,034,240 $ 1,593,740 $
834,231 $Asset
Management
Company

Others(Note 2)

Total

447,320 $(99,446) $ 16,464,476

245,311416,884

12,977,266

11,530212,461

461,357

72,066—

18,623(147,614)

122,244(147,614)

141,473 $ (470,106) $ 3,678,709
1,000 $ 5,967,597 $ 14,928,727

Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others is reported
instead of sales reported by general corporations.Net gains or losses related to ETFs and others amounted to ¥ 14,984 millionand ¥80,198 million, of which ¥ 7,280 million and ¥ 70,129 million are included in the Global Markets Company for the fiscal year
ended March 31 2019 and 2018, respectively.
2.“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
3.Fixed assets have been allocated to each segment to enhance the sophistication of management accounting capabilities from thefiscal year ended March 31, 2019.
4.“Others” in Fixed assets includes assets of headquarters that have not been allocated to each segment, Fixed assets pertaining toconsolidated subsidiaries that are not subject to allocation, consolidated adjustments, and others. Among Fixed assets that havenot been allocated to each segment, some related expenses are allocated to each segment using the reasonable criteria of
allocation.
5.Following the change in allocation method for transactions between each segment and “Others” made in April, 2018,
reclassification was made on the above table for the fiscal year ended March 31 2018, to reflect the relevant change.

217

Segment Information

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4. The Difference between the Total Amounts of Reportable Segments and the Recorded Amounts inConsolidated Statement of Income, and the Contents of the Difference (Matters relating toadjustment to difference)
The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related
to ETFs and others and that of Net business profits (excluding the amounts of credit costs of trust accounts, before
reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others derived
from internal management reporting by reportable segment are different from the amounts recorded in Consolidated
Statement of Income.
The contents of the difference for the period are as follows:(a) The Total of Gross Profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to
ETFs and others of Segment Information and Ordinary Profits recorded in the Consolidated Statement of Income
Millions of yen
2019

Gross Profits(excluding the amounts of credit costs of trust accounts) + Net
gains or losses related to ETFs and others¥
Net gains or losses related to ETFs and others
Other Ordinary Income
General and Administrative Expenses
Other Ordinary Expenses
Ordinary Profits recorded in Consolidated Statement of Income ¥1,827,721 ¥(14,984)
436,019(1,430,850)(203,788)
614,118 ¥2018

Thousands of
U.S. dollars
2019

1,995,555 $
16,464,476(80,198)(134,982)
535,927
3,927,752(1,488,973)(12,889,381)(179,863)(1,835,764)
782,447 $5,532,101(b) The Total of Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others of Segment
Information and Income before Income Taxes Recorded in Consolidated Statement of Income
Millions of yen
2019

Net Business Profits(excluding the amounts of credit costs of trust accounts, before
reversal of (provision for) general reserve for losses on loans) +Net Gains (Losses) related to ETFs and others¥
Credit Costs for Trust Accounts
General and Administrative Expenses (non-recurring losses)
Expenses Related to Portfolio Problems (including reversal of(provision for) general reserve for losses on loans)
Gains on Reversal of Reserves for Possible Losses on Loansand others
Net Gains (Losses) Related to Stocks- Net Gains (Losses) related
to ETFs and others
Net Extraordinary Gains (Losses)
OthersIncome before Income Taxes Recorded in Consolidated¥
Statement of Income

2018

Thousands of
U.S. dollars
2019408,373 ¥—
23,326

538,019 $—(30,851)

3,678,709—
210,130(30,710)(17,014)(276,643)

11,156173,327

100,498

259,879(497,858)(57,907)

191,837
17,506(72,870)

2,341,047(4,484,810)(521,639)

116,259 ¥

799,953 $1,047,292

218

Segment Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

5. Related Information(a) Information about Geographic Areas(i) Ordinary income
Millions of yen
2019

Ordinary Income

Japan

¥

2,292,945 ¥Americas766,900 ¥EuropeAsia/Oceania
excluding Japan

276,061 ¥589,742 ¥Total

3,925,649
Millions of yen

2018

Ordinary Income

Japan

¥

2019

Ordinary Income

2,404,030 ¥

Japan

$

20,655,310 $Americas552,140 ¥Americas6,908,391 $EuropeAsia/Oceania
excluding Japan

195,497 ¥Europe409,457 ¥Total

3,561,125

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total

2,486,814 $

5,312,515 $

35,363,030

Notes: 1.Geographic analyses are presented based on geographic contiguity, similarities in economic activities, andrelation of business operations. The above table shows Ordinary Income instead of sales of non-financial
companies.
2.Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas
branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, theUnited States of America and others, Europe includes Ordinary Income of consolidated subsidiaries andbranches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated
subsidiaries and branches in Hong Kong, the Republic of Singapore and others.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2019 and 2018 is not disclosed sincetangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.
(b) Information about Major Customers
Information about major customers is not disclosed since there are no outside customers accounted for more than
10% of Ordinary Income of the Company.

219

Segment Information

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6. Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2019

Retail & BusinessBanking Company

Impairment Loss¥

491,343 ¥Corporate &Institutional
Company

Global Corporate
Company

6,229 ¥

Global Markets
Company

2,469 ¥

6,844 ¥

Asset
Management
Company— ¥Others(3,272) ¥Total

503,612

Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2018

Retail & BusinessBanking Company

Impairment Loss¥

— ¥Corporate &Institutional
Company

Global Corporate
Company— ¥Global Markets
Company

— ¥

— ¥

Asset
Management
Company— ¥Others6,960 ¥

Total

6,960

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2019

Retail & BusinessBanking Company

Impairment Loss

$ 4,426,115 $Corporate &Institutional
Company

56,112Global Corporate
Company$

Global Markets
Company

22,241 $61,652 $AssetManagement
Company— $OthersTotal(29,481) $ 4,536,639

220

Segment Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

7. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2019

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Total

Others

¥

— ¥

— ¥

360 ¥

— ¥

3,000 ¥

720 ¥

4,080

¥

— ¥

— ¥

4,427 ¥

— ¥46,688 ¥14,380 ¥65,495

Millions of yen
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2018

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

¥

— ¥

— ¥

360 ¥

— ¥

3,000 ¥

794 ¥

4,154

¥

— ¥

— ¥

5,640 ¥

— ¥49,356 ¥15,519 ¥

70,515

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2019

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company— $3,243 $

— $27,024 $6,487 $

36,754

$

— $

— $

39,879 $— $420,575 $

129,539 $

589,993

For the fiscal years ended March 31, 2019 and 2018
・There is no applicable information.

44. Related Party
For the fiscal years ended March 31, 2019 and 2018
・There are no material additions to the current scope subject to disclosure.

Segment Information、Related Party

Total

— $

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment

221

Others$2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

45. Per Share Information
Per share information as of or for the fiscal years ended March 31, 2019 and 2018 are calculated based on the following
information:
Yen
As of or for the fiscal years ended March 31,

Net Assets per Share of Common Stock
Profit Attributable to Owners of Parent per Share ofCommon Stock
Diluted Profit Attributable to Owners of Parent per
Share of Common Stock

2019

2018

U.S. dollars
2019¥345.00¥357.41

$3.11

3.80

22.72

0.03

3.80

22.72

0.03

Notes: 1. Total Net Assets per Share of Common Stock is based on the following information.
Millions of yen
As of March 31,

Total Net Assets
Deductions from Total Net Assets
Stock Acquisition Rights
Non-Controlling Interests
Net Assets (year-end) related to Common
StockYear-end Outstanding Shares of Common
Stock, based on which Total Net Assets
per Share of Common Stock was
calculated

2019

2018

Thousands of U.S. dollars
2019¥9,194,038
445,232707
444,525¥9,821,246
755,403
1,163
754,239$82,821,710
4,010,742
6,369
4,004,373

8,748,805

9,065,843

78,810,968

25,358,536 Thousand shares 25,364,815 Thousand shares/

2. Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Profit Attributable to Owners of Parent
Amount not attributable to Common Stock
Profit Attributable to Owners of Parent
related to Common Stock
Average Outstanding Shares of Common
Stock (during the period)

2019

2018

Thousands of U.S. dollars
2019¥96,566—¥576,547—$869,887—

96,566

576,547

869,887

25,362,375 Thousand shares 25,366,345 Thousand shares/

3. Diluted Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Adjustment to Profit Attributable to Ownersof Parent
Increased Number of Shares of Common
Stock
Stock Acquisition Rights
Description of Dilutive Securities whichwere not included in the Calculation of
Diluted Profit Attributable to Owners of
Parent per Share of Common Stock asthey have no Dilutive effects

2019

2018

Thousands of U.S. dollars
2019

¥—

¥—

$—

4,522 Thousand shares
4,522 Thousand shares—

7,585 Thousand shares
7,585 Thousand shares

—

/
/

/

222

Per Share Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. In the calculation of Net Assets per Share of Common Stock, MHFG shares outstanding in BBT trust account thatwere recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted fromthe number of issued shares. The number of such Treasury Stock shares deducted during the period is 18,917
thousand and 13,319 thousand as of March 31, 2019 and 2018, respectively.
In the calculation of Profit Attributable to Owners of Parent per Share of Common Stock and Diluted Profit
Attributable to Owners of Parent per Share of Common Stock, such Treasury Stock shares are included in
Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during
the period. The average number of such Treasury Stock shares deducted during the period is 17,195 thousand
and 11,815 thousand as of March 31, 2019 and 2018, respectively.

46. Subsequent Events
Mizuho Financial Group, Inc. decided to redeem in full preferred securities issued by its group's overseas special purpose
subsidiaries on May 15, 2019, as set forth below.
(1) Issuer(2) Type of securities(3) Total redemption amount(4) Scheduled redemption date(5) Major reasons for the redemption

223

Per Share Information、Subsequent Events

Mizuho Capital Investment (JPY) 3 Limited
Non-cumulative Perpetual Preferred Securities
Series A ¥249,500 million, Series B ¥53,500 million
June 30, 2019
Arrival of optional redemption date

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Non-Consolidated Financial Statements ofMizuho Financial Group, Inc. and Three Subsidiaries[Under Japanese GAAP]

Mizuho Financial Group, Inc.
225

Non-Consolidated Balance Sheet

226

Non-Consolidated Statement of Income

Mizuho Bank, Ltd.
227

Non-Consolidated Balance Sheet

229

Non-Consolidated Statement of Income

Mizuho Trust & Banking Co., Ltd.
230

Non-Consolidated Balance Sheet232

Non-Consolidated Statement of Income

Mizuho Securities Co., Ltd.
233

Non-Consolidated Balance Sheet

236

Non-Consolidated Statement of Income

224

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries-Index

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheet
Millions of yen
2019

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains ( Losses) on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets¥

176,648
100,367
76,281
11,460,467
222,738
11,072
6,074,549
5,152,106¥ 11,637,116¥¥

5,518,013
2,256,767
1,196,673
1,196,659
13
2,070,749
4,350
2,066,399
2,066,399(6,176)(0)(0)
707
5,518,720
11,637,116

106,000
23,491
82,508
10,481,718
211,622
13,441
6,074,554
4,182,100¥ 10,587,719¥¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

225

Non-Consolidated Balance Sheet

2018

¥

982,626
945,505
37,121
5,135,769
6,118,395

Thousands of
U.S. dollars
2019

$

$

1,591,282
904,127
687,155
103,238,157
2,006,471
99,74754,720,745
46,411,194
104,829,439

1,109,452
1,083,135
26,317
4,036,923
5,146,375$

5,354,533
2,256,548
1,196,478
1,196,440
37
1,906,557
4,350
1,902,207
1,902,207(5,050)85,64585,645
1,163
5,441,343
10,587,719

49,707,358
20,329,408
10,779,870
10,779,746
124
18,653,718
39,186
18,614,532
18,614,532(55,638)
(6)
(6)
6,369
49,713,721
104,829,439$

8,851,690
8,517,296
334,394
46,264,028
55,115,718

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income
Millions of yen
2019

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries andAffiliates
Operating Expenses
General and Administrative Expenses
Operating Profits
Non-Operating Income
Non-Operating Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

331,315
291,116¥2018

305,097
256,044

Thousands of
U.S. dollars
2019$2,984,555
2,622,435

40,19840,67940,679290,635
196,744
116,300
371,078

49,05338,66038,660266,436
72,86980,556
258,749

362,120
366,451
366,4512,618,104
1,772,310
1,047,662
3,342,752

22,606(6,104)
354,576

2,272
(715)
257,192

203,646(54,989)
3,194,095¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

226

Non-Consolidated Statement of Income2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Prepaid Pension Cost
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

227

Non-Consolidated Balance Sheet

2018

Thousands of
U.S. dollars
2019¥38,625,732
366,290
639,352―
443,136
3,467,593
3,076
33,189,959
70,997,730
1,994,728
6,406,960
805,831304,180
409,880
24,304
14,36853,097
799,723
198,776
17,012583,935
457,453
6,186,894(259,853)(319)¥164,124,289$378,743,025
4,649,002
38,069,010
905,334
4,425,514
33,410,981
4,536
265,524,513
685,049,667
18,411,627
53,123,557
6,568,147
2,275,684
3,570,663
195,301
128,701
397,798
3,189,952
757,278
48,0782,384,596
4,340,831
58,489,371(2,180,672)(3,335)$1,552,721,060

Millions of yen
2019¥42,044,263
516,085
4,226,040
100,501
491,276
3,708,952
503
29,475,876
76,047,363
2,043,874
5,897,245
729,129
252,623
396,379
21,68014,28744,159354,116
84,065
5,337
264,713481,875
6,492,905(242,076)(370)¥172,367,564

2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Balance Sheet—(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2018

Thousands of
U.S. dollars
2019¥132,323,772
1,308,045
5,162,334¥121,068,919
1,165,198
7,200,312$1,191,998,668
11,783,130
46,503,333

305,032
941,1812,577,856
7,998,715
925,879
1,968,205
5,169,812
22,362
1,100
630
100
16,98725,56628,33863,315
6,492,905
165,332,144

610,357
710,391
2,797,942
8,958,612
689,958
2,421,033
4,530,602
22,741
1,293
1,075
56
18,09730,760181,914
66,186
6,186,894
156,662,350

2,747,796
8,478,350
23,221,838
72,054,013
8,340,506
17,729,982
46,570,691
201,449
9,916
5,684
907
153,027
230,304
255,282
570,358
58,489,371
1,489,344,605

5,854,129
1,404,065
2,286,328
655,418
1,630,910
2,163,735
315,177
1,848,557
1,848,557
1,181,291
1,071,157(27,639)
137,772
7,035,420

6,234,632
1,404,065
2,286,328
655,418
1,630,910
2,544,238
266,664
2,277,574
2,277,574
1,227,306
1,159,210(76,180)
144,277
7,461,939

52,735,150
12,648,095
20,595,703
5,904,135
14,691,568
19,491,352
2,839,178
16,652,174
16,652,174
10,641,305
9,649,203(248,981)
1,241,083
63,376,455¥172,367,564¥164,124,289$1,552,721,060

Millions of yen
2019

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

228

Non-Consolidated Balance Sheet2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)

2018

Thousands of
U.S. dollars
2019¥1,678,702
1,126,596
281,807471,196
61,855
158,466
257,901
2,628,122¥1,329,397
881,798
264,815
463,170
56,629157,685
491,277
2,498,159$15,122,084
10,148,604
2,538,581
4,244,632
557,207
1,427,501
2,323,223
23,674,647

1,028,946
577,801
90,934377
174,935
840,607
699,784
2,835,586

651,748
340,252
92,481
567
83,246905,103
182,103
1,915,250

9,268,957
5,204,953
819,153
3,402
1,575,851
7,572,361
6,303,796
25,543,520(207,463)

582,908(1,868,873)

94,923(157,943)¥(144,444)

135,348(1,332)¥448,893

855,094(1,422,783)$(1,301,184)

Millions of yen
2019

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

229

Non-Consolidated Statement of Income2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Prepaid Pension Cost
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total Assets

2018

Thousands of
U.S. dollars
2019¥1,751,680
2,869
220,934
7,989
79,551
3,199
1,091,950
3,433,750
2,268
171,731
21,762
9,605
9,185
2,972
35,041
11,367
23,67349,592
20,056(1,850)¥6,890,529$21,927,304
219,960
2,991,769
60,284
1,005,919
41,816
7,581,492
30,224,068
36,693
1,696,975
185,208
81,19182,74021,277294,244
79,057215,187
502,353
152,111(20,943)$66,899,253

Millions of yen
2019¥2,434,150
24,417332,116
6,692
111,667
4,641
841,6213,355,173
4,073
188,381
20,559
9,013
9,185
2,361
32,664
8,776
23,88755,766
16,885(2,324)¥7,426,486

230

Non-Consolidated Balance Sheet2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Reserve for Reimbursement of Deposits
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2018

Thousands of
U.S. dollars
2019¥3,819,608
947,104
22,198¥3,878,768
469,882
53,135$34,407,790
8,531,704
199,964

362,246
107,096379,706
10,0001,102,073
68,806
2,125
467
2,081
6,631
16,885
6,847,033

180,728
69,367
387,490
10,0001,134,182
78,418
2,097
511
1,913
13,646
20,0566,300,200

3,263,184
964,750
3,420,475
90,082
9,927,699
619,826
19,145
4,212
18,74859,740152,11161,679,430

504,764
247,369
15,505
15,505
241,889
36,719205,170
205,170
74,68776,295(1,608)579,452

489,445
247,369
15,505
15,505
226,570
31,970
194,599
194,599
100,882
99,2581,624
590,328

4,547,021
2,228,355
139,674
139,674
2,178,992
330,779
1,848,213
1,848,213
672,802687,290(14,488)5,219,823¥7,426,486¥6,890,529$66,899,253

Millions of yen
2019

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

231

Non-Consolidated Balance Sheet2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income

2018

Thousands of
U.S. dollars
2019¥54,997
42,795
26,691
13,78670,3071,552
8,319
31,650209,621¥54,819
43,672
25,38813,731
65,373954
4,103
37,019205,942$495,431
385,509240,440
124,195
633,339
13,98374,941
285,111
1,888,314

16,415
1,103
33,391－
6,037
82,39518,190156,430

12,595
1,079
31,04260
10,71787,276
7,641
149,333

147,872
9,938
300,800－
54,391
742,235
163,862
1,409,160

53,19056,609479,154

12,544
1,582¥39,063

13,097(761)¥44,272

113,002
14,259$351,893

Millions of yen
2019

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

232

Non-Consolidated Statement of Income2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Cash Segregated as Deposits for Customers and Others
Trading Assets
Trading Securities and Others
Derivatives
Operating Investment Securities
Receivables Related to Margin Transactions
Loans Receivable under Margin Transactions
Cash Collateral for Borrowed Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-receivable
Deposits Paid for Securities Borrowed
Securities Purchased under Agreements to Resell
Advances Paid
Short-term Guarantee Deposits
Securities: Fail to Deliver
Variation Margin Paid
Short-term Loans Receivable
Advance Payments
Prepaid Expenses
Accounts Receivable-otherAccrued income
Other Current Assets
Less: Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Long-term Guarantee Deposits
Prepaid Pension Cost
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Less: Allowance for Possible Losses on Securities
Total Noncurrent Assets
Total Assets

233

Non-Consolidated Balance Sheet

2018

Thousands of
U.S. dollars
2019¥388,516
335,712
6,061,110
3,064,131
2,996,979
28,64034,162
23,975¥294,441
323,923
4,923,373
2,493,898
2,429,474
25,362
127,764
49,424$3,499,832
3,024,169
54,599,683
27,602,303
26,997,380
258,003
307,746
215,977

10,187
3,871,953
2,353,557
1,518,395
488
387,042
9,613―
52,652
733
3,208
7,082
35,006
1,410(3)
11,217,332

78,3394,998,221
4,572,426
425,795
431
404,739
29,956
1,548
55,741535
2,978
21,697
27,4066,538(9)11,244,651

91,76934,879,322
21,201,314
13,678,008
4,405
3,486,551
86,603―474,307
6,606
28,90263,801
315,343
12,708(36)
101,047,945

12,52750,829315,137
244,677
10,966
18,616
19,79026,637(3,488)(2,062)
378,493

14,64755,378317,378
252,068
11,202
16,71625,345
15,528(3,482)―
387,404

112,847
457,880
2,838,817
2,204,101
98,791
167,701
178,274
239,960(31,426)(18,584)
3,409,544¥11,595,825¥11,632,056$104,457,489

Millions of yen
20192019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
Payables - unsettled trades
Payables Related to Margin Transactions
Borrowings on Margin Transactions
Cash Collateral for Loaned Securities under Margin Transactions
Collateralized Short-term Financing Agreements-payable
Deposits Received for Securities Loaned
Securities Sold under Agreements to Repurchase
Deposits Received
Guarantee Deposits Received
Securities: Fail to Receive
Variation Margin Received
Short-term Borrowings
Commercial Paper
Bonds and Notes Due within One year
Lease Obligations
Advances Received
Accounts Payable-otherAccrued Expenses
Income Taxes Payable
Reserve for Bonus Payments
Provision for Variable Compensation
Provision for Bonus Point Redemption
Other Current Liabilities
Total Current Liabilities
Noncurrent Liabilities
Bonds and Notes
Long-term Borrowings
Lease Obligations
Provision for Retirement Benefits
Other Noncurrent Liabilities
Total Noncurrent Liabilities
Statutory Reserves
Reserve for Financial Instrument Transaction Liabilities
Total Statutory Reserves
Total Liabilities

2018

Thousands of
U.S. dollars
2019¥4,340,952
1,511,888
2,829,063
36,88853,591
10,77342,8183,575,497
914,264
2,661,233
308,251
297,4722,064
3,426
773,484
333,200
76,393
174
193
1,812
34,869
2,220
9,359
927
686
497
9,851,965¥4,311,658
2,068,613
2,243,045
62,24344,1768,814
35,361
3,739,715
1,212,841
2,526,874
267,579
198,003
2,930―
833,668
334,200
46,672364
174
961
33,127
3,984
9,563
954
639
187
9,890,805$39,104,158
13,619,394
25,484,764
332,301
482,765
97,051
385,71432,208,788
8,235,872
23,972,916
2,776,790
2,679,695
18,59530,868
6,967,703
3,001,531
688,171
1,569
1,740
16,329314,113
19,99884,309
8,356
6,185
4,485
88,748,449

679,688
173,000―
19,7992,263
874,751

571,334
277,000
139
19,744
1,540
869,758

6,122,769
1,558,418―
178,357
20,388
7,879,932

2,473
2,473

2,361
2,361

22,281
22,281¥10,729,189¥10,762,925$96,650,662

Millions of yen
2019

234

Non-Consolidated Balance Sheet2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid in Capital
Other Capital Surplus
Total Capital Surpluses
Retained Earnings
Other Retained Earnings
Retained Earnings Brought Forward
Total Retained Earnings
Total Shareholders’ Equity
Valuation and Translation Adjustments
Net Unrealized Gains on (Operating) Investment Securities, net ofTax
Net Deferred Gains or Losses on Hedges, net of Tax
Total Valuation and Translation Adjustments
Total Net Assets
Total Liabilities and Net Assets

2018

Thousands of
U.S. dollars
2019¥125,167¥125,167$1,127,531

285,831
95,817
381,649

285,831
95,817
381,649

2,574,826
863,147
3,437,973

346,585
346,585
853,401

346,786
346,786
853,602

3,122,109
3,122,109
7,687,613

23,023(9,789)13,23327,497(11,969)
15,527

207,399(88,185)
119,214

Millions of yen
2019866,635

869,130

7,806,827¥11,595,825¥11,632,056$104,457,489

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

235

Non-Consolidated Balance Sheet2019/09/02 10:05:07 / 19516220_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

Operating Revenues
Commissions
Brokerage Commissions
Underwriting and Selling Fees, and Commissions from
Solicitation to Qualifying Investors
Offering, Selling, and Other Commissions and Fees, andCommissions from Solicitation to Qualifying Investors
Other commissions and Fees
Net Gain on Trading
Net Gain on Operating Investment Securities
Interest and Dividend Income
Total Operating Revenues

2018

Thousands of
U.S. dollars
2019¥151,810
23,947¥142,534
30,818$1,367,537
215,725

36,912

24,966

332,519

27,772
63,177
93,5685,287
90,465341,131

31,37855,370114,858
2,300
67,061
326,755

250,181569,112842,879
47,630814,935
3,072,981

Millions of yen
2019Interest Expenses

77,794

57,147700,785

Net Operating Revenues
Selling, General and Administrative Expenses
Transaction-related Expenses
Personnel Expenses
Real Estate Expenses
Administrative Expenses
Depreciation and Amortization
Taxes and Dues
Provision of Allowance for Doubtful Accounts
Other
Operating Income
Non-operating Income
Non-operating Expenses
Ordinary Income
Extraordinary gain
Gain on Sales of Noncurrent Assets
Gain on Sales of Investment Securities
Gain on Sales of Shares of Subsidiaries and Affiliates
Extraordinary loss
Loss on Disposal of Noncurrent Assets
Loss on Sale of Investment Securities
Loss on Impairment of Investment Securities
Loss on Impairment of Golf Club Membership
Impairment Losses
Loss on Software Development
Loss on Computer System Failure
Provision of Allowance for Possible Losses on Securities
Provision of Reserve for Financial Instruments Transaction
Liabilities
Income before Income Taxes
Income Taxes – current
Income Taxes – deferred
Total Income Taxes
Net Income

263,337
236,229
53,157
86,66225,58543,374
18,931
5,452
2
3,064
27,1079,044
196
35,955
2,512
1
2,511
―
16,467
1,463
338
163
―
8,763
―
410
5,215

269,607236,574
49,67685,562
26,63049,272
17,346
4,854
(58)
3,290
33,032
6,947
1,400
38,580
4,286
63
3,668
553
5,015
314
6
60
0
2,758
1,805
―
―

2,372,196
2,128,004
478,849
780,671
230,482
390,725
170,543
49,11318
27,603244,192
81,476
1,771
323,897
22,636
16
22,620―148,346
13,186
3,052
1,470
―
78,945―
3,695
46,986

112

70

1,012

22,000
3,006
6,600
9,607
¥12,393

37,850
4,092
1,596
5,689
¥32,161

198,187
27,08759,45886,545$111,642

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.01=US$1.00, the foreign exchange rate on March 31, 2019, has been used for translation.

236

Non-Consolidated Statement of Income2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

237

白頁

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

239

Key Metrics

240

Status of Mizuho Financial Group's
Consolidated Capital Adequacy

240

Scope of Consolidation

241

Risk-based Capital

258

Summary of Risk Management and Risk-weighted
Assets (RWA)260

Linkages between Financial Statements
and Regulatory Exposures

265

Credit Risk

283

Counterparty Credit Risk

291

Securitization Exposures

298

Market Risk

300

Investment or Equity Exposure

300

Operational Risk

301

Composition of Leverage Ratio

302

TLAC Regulations

304

Geographical distribution of credit exposures usedin the countercyclical capital buffer

305

Indicators for Assessing Global Systemically
Important Banks (G-SIBs)

306

Status of Sound Management of Liquidity Risk

306

Liquidity Coverage Ratio

308

Status of Major Liquid Assets

308

Status of Major Funding

309

Compensation of Directors and Employees

238

Basel Regulatory Disclosures2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Key Metrics

Under the capital adequacy ratio regulations agreed upon by the Basel Committee on Banking Supervision, banks are
required to meet certain minimum capital requirements. We calculate our capital adequacy ratio on a consolidated basis
based on “the criteria used by a bank holding company for deciding whether or not the adequacy of equity capital of thebank holding company and its subsidiaries is appropriate in light of the assets owned by the bank holding company and its
subsidiaries pursuant to Article 52-25 of the Banking Law” (Financial Services Agency, or FSA, Notice No.20 issued in2006).
We also calculate our leverage ratio on a consolidated basis according to “the criteria for evaluating the soundness of theleverage, prescribed as supplemental requirements of the criteria used by a bank holding company in deciding whether or
not the adequacy of equity capital of the bank holding company and its subsidiaries is appropriate in light of the assets
owned by the bank holding company and its subsidiaries, pursuant to Article 52-25 of the Banking Law” (FSA Notice No.12
issued in 2019.)
Liquidity standards agreed upon by the Basel Committee on Banking Supervision require our liquidity coverage ratio tosurpass certain minimum standards. We calculate our consolidated liquidity coverage ratio (the “Consolidated LCR”) in
accordance with the regulation “The Evaluation Criterion on the Sound Management of Liquidity Risk Defined, Based on
Banking Law Article 52-25, as One of Criteria for Bank Holding Companies to Evaluate the Soundness of Their
Management and the Ones of Their Subsidiaries and Others, which is also One of Evaluation Criteria on the Soundness of
the Banks' Management”(the FSA Notice No. 62 of 2014 (the “Notice No. 62”)).

■ Key Metrics
KM1: Key Metrics
Basel III
Template
No.

Capital1
Common Equity Tier 1 capital
2
Tier 1 capital3
Total capital
Risk weighted assets
4
Risk weighted assets
Capital ratio
5
Common Equity Tier 1 capital ratio
6
Tier 1 capital ratio
7
Total capital ratio
Capital buffer8
Capital conservation buffer requirement
9Countercyclical buffer requirement
10
Bank G-SIB/D-SIB additional requirements
11
Total of bank CET1 specific buffer requirements
CET1 available after meeting the bank's
12minimum capital requirements
Leverage ratio
13
Total exposures
14
Leverage ratio
Liquidity coverage ratio (LCR)
Total HQLA allowed to be included in the15
calculation
16
Net cash outflows
17
LCR
Note: Base Ⅲ Template No. from 15 to 17 are quarterly averages.

239

Key Metrics(millions of yen, except percentages)a
As ofMarch 31,
2019

b

c

As of
As of
December 31, September 30,
2018
2018

d

e

As of
June 30,
2018

As of
March 31,2018

¥7,390,058
9,232,160
10,917,507¥7,326,381
9,175,195
10,920,208¥7,607,267
9,434,893
11,214,088¥7,631,486
9,112,127
10,859,912¥7,437,048
9,192,244
10,860,440

57,899,567

61,655,523

60,240,051

60,157,998

59,528,983

12.76%
15.94%
18.85%

11.88%
14.88%
17.71%

12.62%
15.66%
18.61%

12.68%
15.14%
18.05%

12.49%
15.44%
18.24%

2.50%
0.05%
1.00%
3.55%

1.87%
0.03%
0.75%
2.65%

1.87%
0.02%
0.75%
2.64%

1.87%
0.02%
0.75%
2.64%

1.87%
0.01%
0.75%
2.63%

8.26%

7.38%

8.12%

8.18%

7.99%

208,557,401
4.42%

209,483,123
4.37%

216,920,174
4.34%

217,040,028
4.19%

214,277,824
4.28%

59,797,149

59,793,333

62,485,008

62,777,196

60,159,630¥41,447,805
144.3%¥41,184,048
145.2%¥48,045,874
130.1%¥51,729,447
121.3%¥50,079,075
120.1%

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

The information disclosed herein is in accordance with "Matters Separately Prescribed by the Commissioner of the
Financial Services Agency Regarding Status of the Adequacy of Equity Capital Pursuant to Article 19-2, Paragraph 1, Item
5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law" (the FSA Notice No. 7 issued in 2014).

■ Scope of Consolidation(1) Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation Rules for
Preparation of Consolidated Financial Statements (the “Scope of Accounting Consolidation”)
None as of March 31, 2019 and 2018(b) Number of Consolidated Subsidiaries
Consolidated subsidiaries

As of March 31, 2019

As of March 31, 2018

117

124

Our major consolidated subsidiaries are Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co.,Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2019:

Name

Country oforganization

Domestic
Mizuho Bank, Ltd. ...........................................Japan
Mizuho Trust & Banking Co., Ltd. ...................Japan
Mizuho Securities Co., Ltd. .............................Japan
Mizuho Research Institute Ltd. .......................Japan
Mizuho Information & Research Institute, Inc. . Japan
Asset Management One Co., Ltd. .................. Japan
Mizuho Private Wealth Management Co., Ltd. Japan
Mizuho Credit Guarantee Co., Ltd. .................Japan
Mizuho Realty Co., Ltd. ...................................Japan
Mizuho Factors, Limited ..................................Japan
Mizuho Realty One Co., Ltd. ...........................Japan
Defined Contribution Plan Services Co., Ltd. ..Japan
Mizuho-DL Financial Technology Co., Ltd. .....JapanUC Card Co., Ltd. ...........................................Japan
J.Score CO., LTD............................................Japan
Mizuho Trust Systems Company, Limited. ..... Japan

Mizuho Capital Co., Ltd. ..................................Japan

Main businessBanking
Trust and banking
Securities
Research andconsulting
Information technology
Investment
management
Consulting
Credit guarantee
Real estate agency
Factoring
Holding company
Pension planrelated business
Application andSophisticationof Financial Technology
Credit cardLending
Subcontracted
calculation services,
software development
Venture capital

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0%
100.0
95.8
98.6

100.0%
100.0
95.8
98.6

91.5
70.0

91.5
51.0

100.0
100.0
100.0
100.0
100.0
60.0

100.0
100.0
100.0
100.0
100.0
60.0

60.0

60.0

51.0
50.0
50.0

51.0
50.0
50.0

50.0

50.0

240

Scope of Consolidation

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Name

Country oforganization

Overseas
Mizuho Americas LLC .....................................U.S.A.
Mizuho Bank (China), Ltd. .............................. China
Mizuho International plc ..................................U.K.
Mizuho Securities Asia Limited .......................China
Mizuho Securities USA LLC ............................U.S.A.
Mizuho Bank Europe N.V. ...............................Netherlands
Banco Mizuho do Brasil S.A. .......................... Brazil
Mizuho Trust & Banking (Luxembourg) S.A. ...Luxembourg
Mizuho Bank (USA) ........................................U.S.A.
Mizuho Securities Europe GmbH ....................Germany
Mizuho Capital Markets LLC .......................... U.S.A.
PT. Bank Mizuho Indonesia ............................Indonesia

Main businessHolding company
Banking
Securities and banking
Securities
Securities
Banking and securities
Banking
Trust and banking
Banking and trust
Securities
Derivatives
Banking

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

(c) Corporations Providing Financial Services for Which Article 9 of the FSA Notice No. 20 is Applicable
None as of March 31, 2019 and 2018.
(d) Companies that are in the Bank Holding Company’s Corporate Group but not Included in the Scope of
Accounting Consolidation and Companies that are not in the Bank Holding Company’s Corporate Group but
Included in the Scope of Accounting Consolidation
None as of March 31, 2019 and 2018.
(e) Restrictions on Transfer of Funds or Capital within the Bank Holding Company’s Corporate Group
None as of March 31, 2019 and 2018.
(f) Names of Any Other Financial Institutions, etc., Classified as Subsidiaries or Other Members of the Bank
Holding Company that are Deficient in Regulatory Capital
None as of March 31, 2019 and 2018.

■ Risk-based Capital(1) Summary of Approach to Assessing Capital Adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct thefollowing assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring
structure.

Maintaining a sufficient BIS capital ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether
our risk-based capital is adequate in qualitative as well as quantitative terms, in light of our business plans and strategic
targets to match the increase in risk-weighted assets acquired for growth, in addition to maintaining our capital above theminimum requirements of common equity Tier 1 capital ratio, Tier 1 capital ratio, total capital ratio, capital buffer ratio,
adequate leverage ratio and TLAC ratio.

Balancing risk and capitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overallrisk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating
capital that corresponds to the amount of risk to the principal banking subsidiaries, etc., within the bounds of our capital,
and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. Whenmaking these assessments, we calculate the potential losses arising from assumed stress events and risk volumes, which
we assess whether they balance with the group’s capital. Stress events are based on risk scenarios that are formulated
based on the current economic condition and the economic outlook, etc. In addition, we examine whether an appropriate
return on risk is maintained in the assessments.

241

Scope of Consolidation、Risk-based Capital2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Composition of Capital, etc.
(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2019
31, 2018
CC2

Common Equity Tier 1 capital: instruments and reserves
1a+2-1c-26(1)Directly issued qualifying common share capital plus related stock
surplus and retained earnings¥7,207,427¥7,292,638

1aof which: capital and stock surplus

3,395,217

3,391,471

2of which: retained earnings

3,915,111

4,002,350

1cof which: treasury stock (-)

7,703

5,997

26

of which: national specific regulatory adjustments (earnings to
be distributed) (-)

95,197

95,186

-

-

707

1,163

of which: other than above
1b

Subscription rights to common shares

3

Accumulated other comprehensive income and other disclosed
reserves

1,445,770

1,677,534

5

Common share capital issued by subsidiaries and held by third
parties (amount allowed in group CET1)

6,460

14,344

6

Common Equity Tier 1 capital: instruments andreserves

8,660,365

8,985,680

8+9

Total intangible assets (net of related tax liability, excluding thoserelating to mortgage servicing rights)

459,991

794,953

8

of which: goodwill (net of related tax liability, including thoseequivalent)

73,003

85,1039of which: other intangibles other than goodwill and mortgage
servicing rights (net of related tax liability)

386,987

709,850

10

Deferred tax assets that rely on future profitability excluding thosearising from temporary differences (net of related tax liability)

36,56642,352

11

Deferred gains or losses on derivatives under hedge accounting¥(22,282)¥(67,578)

Common Equity Tier 1 capital: regulatory adjustments

(A)

(a)

(2)

242

Composition of Capital Disclosure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template
12

Shortfall of eligible provisions to expected losses

13

Securitization gain on sale

14

Reference
As of March As of March
to Template31, 2019
31, 2018
CC2¥96,090¥61,964--

Gains and losses due to changes in own credit risk on fair valued
liabilities

13,0063,960

15Net defined benefit asset

682,142

691,380

16

Investments in own shares (excluding those reported in the net
assets section)

4,792

1,457

17

Reciprocal cross-holdings in common equity

-

-

18

Investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, netof eligible short positions, where the bank does not own more than
10% of the issued share capital (amount above the 10% threshold)-

20,14019+20+21 Amount exceeding the 10% threshold on specified items

-

-

19

of which: significant investments in the common stock offinancials

-

-

20

of which: mortgage servicing rights

-

-

21

of which: deferred tax assets arising from temporary differences(net of related tax liability)

-

-

-

-

22

Amount exceeding the 15% threshold on specified items

23

of which: significant investments in the common stock offinancials

-

-

24

of which: mortgage servicing rights

-

-

25

of which: deferred tax assets arising from temporary differences(net of related tax liability)

-

-

-

-

(B)

1,270,307

1,548,631(C)¥7,390,058¥7,437,048

27

Regulatory adjustments applied to Common Equity Tier 1 due toinsufficient Additional Tier 1 and Tier 2 to cover deductions

28

Common Equity Tier 1 capital: regulatory
adjustments

Common Equity Tier 1 capital (CET1)
29

Common Equity Tier 1 capital (CET1) ((A)-(B))

243

Composition of Capital Disclosure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2019
31, 2018
CC2

Additional Tier 1 capital: instruments

(3)

30

31a

Directly issued qualifying Additional Tier 1 instruments plus related
stock surplus of which: classified as equity under applicableaccounting standards and the breakdown

¥-

¥-

30

31b

Subscription rights to Additional Tier 1 instruments

-

-

30

32

Directly issued qualifying Additional Tier 1 instruments plus related
stock surplus of which: classified as liabilities under applicableaccounting standards

1,570,000

1,220,000

Qualifying Additional Tier 1 instruments plus related stock surplus
issued by special purpose vehicles and other equivalent entities

-

-

30
34-35

Additional Tier 1 instruments issued by subsidiaries and held by
third parties (amount allowed in group AT1)

28,50231,31733+35

Eligible Tier 1 capital instruments subject to phase-out
arrangements included in Additional Tier 1 capital: instruments

303,000

577,500

33

of which: directly issued capital instruments subject to phaseout from Additional Tier 1

303,000

577,500

35

of which: instruments issued by subsidiaries subject to phase
out

-

-

1,901,502

1,828,817

2,900

-

¥-

¥-

36

Additional Tier 1 capital: instruments(D)

Additional Tier 1 capital: regulatory adjustments
37

Investments in own Additional Tier 1 instruments

38

Reciprocal cross-holdings in Additional Tier 1 instruments

244

Composition of Capital Disclosure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2019
31, 2018
CC2

39

Investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, netof eligible short positions, where the bank does not own more than
10% of the issued common share capital of the entity (amountabove 10% threshold)40

Significant investments in the capital of banking, financial andinsurance entities that are outside the scope of regulatory
consolidation (net of eligible short positions)42

Regulatory adjustments applied to Additional Tier 1 due toinsufficient Tier 2 to cover deductions

43

Additional Tier 1 capital: regulatory adjustments

¥-

¥121

56,50073,500--(E)59,40073,621(F)

1,842,102

1,755,195(G)

9,232,160

9,192,244

46

Directly issued qualifying Tier 2 instruments plus related stock
surplus of which: classified as equity under applicable accounting
standards and the breakdown

-

-

46

Subscription rights to Tier 2 instruments¥-¥-

Additional Tier 1 capital (AT1)44

Additional Tier 1 capital ((D)-(E))

Tier 1 capital (T1 = CET1 + AT1)
45

Tier 1 capital (T1 = CET1 + AT1) ((C) + (F))

Tier 2 capital: instruments and provisions

245

Composition of Capital Disclosure(4)

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2018
31, 2019
CC2

46

Directly issued qualifying Tier 2 instruments plus related stock
surplus of which: classified as liabilities under applicableaccounting standards¥1,002,257¥828,702

46

Tier 2 instruments plus related stock surplus issued by special
purpose vehicles and other equivalent entities

166,150

159,405

7,777

10,378506,118

674,824

48-49

Tier 2 instruments issued by subsidiaries and held by third parties(amount allowed in group Tier 2)

47+49

Eligible Tier 2 capital instruments subject to phase-out
arrangements included in Tier 2:instruments and provisions

47of which: directly issued capital instruments subject to phaseout from Tier 2

102,237

135,13549

of which: instruments issued by subsidiaries subject to phaseout

403,880539,688

50

Total of general allowance for loan losses and eligible provisions
included in Tier 2

4,377

4,794

4,377

4,794

-

-

1,686,680

1,678,105

1,333

1,892

50a

of which: general allowance for loan losses

50bof which: eligible provisions

51

Tier 2 capital: instruments and provisions

Tier 2 capital: regulatory adjustments

(H)
(5)

52

Investments in own Tier 2 instruments

53

Reciprocal cross-holdings in Tier 2 instruments and other TLAC
liabilities

-

-

54

Investments in the capital and other TLAC liabilities of banking,financial and insurance entities that are outside the scope of
regulatory consolidation, net of eligible short positions, where thebank does not own more than 10% of the issued common sharecapital of the entity (amount above the 10% threshold)¥-¥8,016

246

Composition of Capital Disclosure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2019
31, 2018
CC2

54a

Investments in the other TLAC liabilities of banking, financial andinsurance entities that are outside the scope of regulatory
consolidation, where the bank does not own more than 10% of theissued common share capital of the entity: amount previously
designated for the 5% threshold but that no longer meets theconditions

¥-

¥/

55

Significant investments in the capital and other TLAC liabilities ofbanking, financial and insurance entities that are outside the scopeof regulatory consolidation (net of eligible short positions)

-

-

57

Tier 2 capital: regulatory adjustments

(I)

1,333

9,908

(J)

1,685,347

1,668,196(K)

10,917,507

10,860,440

Tier 2 capital (T2)58

Tier 2 capital (T2) ((H)-(I))

Total capital (TC = T1 + T2)
59

Total capital (TC = T1 + T2) ((G) + (J))

Risk weighted assets
60

Risk weighted assets

Capital ratio and buffers (consolidated)
61

Common Equity Tier 1 capital ratio (consolidated) ((C)/(L))

247

Composition of Capital Disclosure

(6)
(L)

¥57,899,567 ¥59,528,983(7)12.76%

12.49%

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2019
31, 2018
CC2
15.94%
15.44%

62

Tier 1 capital ratio (consolidated) ((G)/(L))

63Total capital ratio (consolidated) ((K)/(L))

18.85%

18.24%

64

Total of bank CET1 specific buffer requirements

3.55%

2.63%

65

of which: capital conservation buffer requirement

2.50%

1.87%

66

of which: countercyclical buffer requirement

0.05%

0.01%

67

of which: bank G-SIB/D-SIB additional requirements

1.00%

0.75%

68

CET1 available after meeting the bank's minimum capitalrequirements

8.26%

7.99%

Regulatory adjustments

(8)

72

Non-significant investments in the capital and other TLAC liabilitiesof other financials that are below the thresholds for deduction(before risk weighting)¥540,695¥745,717

73

Significant investments in the common stock of financials that are
below the thresholds for deduction (before risk weighting)

250,095

142,40774

Mortgage servicing rights that are below the thresholds fordeduction (before risk weighting)

-

-

75

Deferred tax assets arising from temporary differences that are
below the thresholds for deduction (before risk weighting)

233,628

185,172

Provisions included in Tier 2 capital: instruments andprovisions

(9)

76

Provisions (general allowance for loan losses)

4,377

4,794

77

Cap on inclusion of provisions (general allowance for loan losses)

43,521

43,67878

Provisions eligible for inclusion in Tier 2 in respect of exposuressubject to internal ratings-based approach (prior to application ofcap) (if the amount is negative, report as "nil")

-

-

79

Cap for inclusion of provisions in Tier 2 under internal ratingsbased approach

278,991

284,521624,941

833,255--

Capital instruments subject to phase-out arrangements

(10)

82

Current cap on AT1 instruments subject to phase-out arrangements

83

Amount excluded from AT1 due to cap (excess over cap after
redemptions and maturities) (if the amount is negative, report as"nil")

84

Current cap on T2 instruments subject to phase-out arrangements

506,118

674,824

85

Amount excluded from T2 due to cap (excess over cap after
redemptions and maturities) (if the amount is negative, report as"nil")¥37,812¥7,304

Notes: 1. The above figures are calculated based on the international standard applied on a consolidated basis under the FSA Notice No. 20.
2. As an external audit of calculating the consolidated capital adequacy ratio, we underwent an examination under the procedures agreed with by Ernst & Young ShinNihon
LLC, on the basis of "Practical guidance on agreed-upon procedures for the calculation of capital adequacy ratio" (Practical Guideline for specialized fields No. 4465 of theJapanese Institute of Certified Public Accountants). Note that this examination is not a part of the audit performed on our consolidated financial statements or internal
controls over financial reporting. Ernst & Young ShinNihon LLC does not give its opinion or conclusion concerning the capital adequacy ratio or our internal control structure
regarding the calculation of the capital adequacy ratio. Instead, it performs an examination to the extent both of us agreed to and reports the results to us.

248

Composition of Capital Disclosure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) CC2:Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
a

Items

b

Consolidated balance Consolidated balance
sheet as in published sheet as in publishedfinancial statements financial statementscdReference toTemplate CC1

Cross-reference toAppended template

As of March 31, 2019 As of March 31, 2018
(Assets)
Cash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives other than for Trading Assets
Other Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for Acceptances andGuarantees
Reserves for Possible Losses on Loans
Total Assets(Liabilities)
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for Trading Liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Net Defined Benefit Liability
Reserve for Director and Corporate Auditor
Retirement Benefits
Reserve for Possible Losses on Sales of
Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws
Deferred Tax Liabilities¥45,108,602
648,254
12,997,628¥47,725,360
715,149
8,080,873

2,578,133

4,350,527

2,828,959
12,043,608
351,889
29,774,489
78,456,935
1,993,668
1,328,227
4,229,589
1,037,006
620,231
982,804
37,9602,713,742
10,507,133
337,429
34,183,033
79,421,473
1,941,677
1,807,999
4,588,484
1,111,128
1,092,708
996,173
47,8396,062,053

5,723,186(287,815)¥200,792,226(315,621)¥205,028,300¥124,311,025
13,338,571
2,841,931
14,640,439¥125,081,233
11,382,590
2,105,293
16,656,828

1,484,584

1,566,833

941,181
8,325,520
3,061,504
669,578355,539
8,351,071
1,102,073
1,165,602
4,512,325
68,1172,867
60,873710,391
8,121,543
4,896,218
445,804
362,1857,544,256
4,733,131
1,514,483
3,685,585
66,872
3,242
58,890

1,389

1,460

630

1,075

4,910
19,06825,5662,473¥185,974

5,622
20,011
30,7602,361¥421,002

249

Reconciliation of regulatory capital to consolidated balance sheet

6-a2-b, 6-b
6-c
6-d
6-e
2-a
3
4-a

6-f
8-a
8-b
6-g

4-b

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(b) CC2:Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
a

Items

b

Consolidated balance Consolidated balance
sheet as in published sheet as in publishedfinancial statements financial statementscdReference toTemplate CC1

Cross-reference toAppended template

As of March 31, 2019 As of March 31, 2018
Deferred Tax Liabilities for Revaluation
Reserve for Land
Acceptances and Guarantees
Total Liabilities(Net Assets)
Common Stock
Capital Surplus
Retained Earnings
Treasury Stock
Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other
Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Total Accumulated Other Comprehensive
IncomeStock Acquisition Rights
Non-Controlling Interests
Total Net Assets
Total Liabilities and Net Assets¥63,315¥66,186

6,062,053¥191,598,188

5,723,186¥195,207,054

2,256,767
1,138,449
3,915,521(7,703)¥7,303,034

2,256,548
1,134,922
4,002,835(5,997)¥7,388,309

1,186,401

1,392,392(22,282)
137,772(111,057)
254,936(67,578)
144,277(85,094)
293,536¥1,445,770¥1,677,534

707
444,525¥9,194,038¥200,792,226

1,163
754,239¥9,821,246¥205,028,300

4-c

1-a
1-b
1-c
1-d

5

(a)
7

Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.

250

Reconciliation of regulatory capital to consolidated balance sheet

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended template
1. Shareholders' Equity(1) Consolidated Balance Sheet(Millions of yen)

Ref.

Consolidated balance sheet items

As of March
31, 2019

1-a
1-b
1-c
1-d

Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity¥2,256,767
1,138,449
3,915,521(7,703)¥7,303,034(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Directly issued qualifying commonshare capital plus related stock
surplus and retained earnings
1a
2
1c

31a

of which: capital and stock surplusof which: retained earningsof which: treasury stock (-)
of which: other than above
Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified as equity
under applicable accounting standards
and the breakdown

251

Reconciliation of regulatory capital to consolidated balance sheet

As of March
31, 2018¥2,256,548
1,134,922
4,002,835(5,997)¥7,388,309

Remarks(Millions of yen)
As of March
31, 2018

Remarks¥7,302,625¥7,387,824

Shareholders' equity
attributable to common shares(before adjusting national
specific regulatory adjustments(earnings to be distributed))

3,395,217
3,915,111
7,703-

3,391,471
4,002,350
5,997
-

-

-

As of March
31, 2019

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2. Intangible Fixed Assets(1) Consolidated Balance Sheet(Millions of yen)
As of March
31, 2019

As of March
31, 2018

Ref.

Consolidated balance sheet items

2-a
2-b

Intangible fixed assets
Securitiesof which: share of goodwill ofcompanies accounted for using theequity method¥620,231
29,774,489¥1,092,708
34,183,033

7,508

14,588

Income taxes related to above¥(167,749)¥(312,342)(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Goodwill (net of related tax liability,
including those equivalent)
Other intangibles other than goodwill
9 and mortgage servicing rights (net of
related tax liability)
Mortgage servicing rights (net of
related tax liability)
Amount exceeding the 10%
20
threshold on specified items
Amount exceeding the 15%
24
threshold on specified items
Mortgage servicing rights that are74
below the thresholds for deduction(before risk weighting)83

As of March
31, 2018¥73,003¥85,103386,987

709,850

-

-

-

-

-

-

-

-

15

Remarks

Software and other(Millions of yen)

Consolidated balance sheet items

As of March
31, 2019

As of March
31, 2018

Net defined benefit asset¥982,804¥996,173

Income taxes related to above¥(300,661)¥(304,793)(2) Composition of CapitalBasel III
template

Share of goodwill of companies
accounted for using the equity
method(Millions of yen)
As of March
31, 2019

3. Net defined Benefit Asset(1) Consolidated Balance Sheet
Ref.

Remarks

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2019

As of March
31, 2018

Net defined benefit asset¥682,142¥691,380

Remarks

252

Reconciliation of regulatory capital to consolidated balance sheet

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Deferred Tax Assets(1) Consolidated Balance Sheet(Millions of yen)
As of March
31, 2019

As of March
31, 2018

Ref.

Consolidated balance sheet items

4-a
4-b

Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land

¥37,960
185,974¥47,839
421,00263,31566,186

Tax effects on intangible fixed assets
Tax effects on net defined benefit asset¥167,749
300,661¥312,342
304,7934-c(2) Composition of CapitalBasel III
template

10

21
25

75

Composition of capital disclosure(Millions of yen)
As of March
31, 2019

As of March
31, 2018

Deferred tax assets that rely on future
profitability excluding those arisingfrom temporary differences (net of
related tax liability)¥36,566¥42,352

Deferred tax assets that rely on future
profitability arising from temporary
differences (net of related tax liability)

233,628

185,172

-

-

-

-

233,628

185,172

Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Deferred tax assets arising from
temporary differences that are
below the thresholds for deduction(before risk weighting)253

Reconciliation of regulatory capital to consolidated balance sheet

Remarks

Remarks

This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.
This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

5. Deferred Gains or Losses on Derivatives under Hedge Accounting(Millions of yen)
(1) Consolidated Balance Sheet
Ref.

5

Consolidated balance sheet items

As of March
31, 2019

As of March
31, 2018

Deferred gains or losses on hedges¥(22,282)¥(67,578)(2) Composition of CapitalBasel III
template

11

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2019

As of March
31, 2018

Deferred gains or losses onderivatives under hedge accounting¥(22,282)¥(67,578)

Remarks

6. Items Associated with Investments in the Capital of Financial Institutions(Millions of yen)
(1) Consolidated Balance Sheet
As of March
31, 2019

As of March
31, 2018¥12,043,608¥10,507,133

6-b Securities
6-c Loans and bills discounted
Derivatives other than for trading
6-dassets6-e Other assets

29,774,489
78,456,935

34,183,033
79,421,473

1,328,227

1,807,999

4,229,589

4,588,484

6-fTrading liabilities

8,325,520

8,121,543

6-gDerivatives other than for trading
liabilities

1,165,602

1,514,483

Ref.

Consolidated balance sheet items

6-a

Trading assets

Remarks

Including trading accountsecurities and derivatives for
trading assets
Including subordinated loans

Including money invested
Including trading accountsecurities sold

254

Reconciliation of regulatory capital to consolidated balance sheet

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalBasel III
template

16
37
52

17
38
53

18
39
54

72

19
23
40
55

73

Composition of capital disclosure

Investments in own capital instruments
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in thecapital of banking, financial andinsurance entities
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital and other TLAC
liabilities
Investments in the capital of banking,financial and insurance entities thatare outside the scope of regulatory
consolidation, net of eligible shortpositions, where the bank does not
own more than 10% of the issued
share capital (amount above 10%threshold)Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital and other TLAC
liabilities
Non-significant investments in thecapital and other TLAC liabilities ofother financials that are below thethresholds for deduction (before risk
weighting)Significant investments in the capitalof banking, financial and insurance
entities that are outside the scope of
regulatory consolidation, net of eligible
short positions
Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Additional Tier 1 capital
Tier 2 capital and other TLAC
liabilities
Significant investments in thecommon stock of financials that are
below the thresholds for deduction(before risk weighting)255

Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
As of March
31, 2019

As of March
31, 2018¥9,026
4,792
2,900
1,333

¥3,349
1,457
1,892

-

-

-

-

-

-

540,695

773,996-

20,140
121

-

8,016

540,695

745,717306,595

215,907

-

-

-

-

56,50073,500--250,095

142,407

Remarks

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

7. Non-Controlling Interests(1) Consolidated Balance Sheet
Ref.

7(Millions of yen)

Consolidated balance sheet items

As of March
31, 2019

As of March
31, 2018

Non-Controlling interests¥444,525¥754,239(2) Composition of CapitalBasel III
template

530-31ab-32

34-35

46

48-49

Composition of capital disclosure

Common share capital issued bysubsidiaries and held by third parties(amount allowed in group CET1)
Qualifying additional Tier 1
instruments plus related stock surplus
issued by special purpose vehicles
and other equivalent entities
Additional Tier 1 instruments issued bysubsidiaries and held by third parties(amount allowed in group AT1)
Tier 2 instruments plus related stock
surplus issued by special purpose
vehicles and other equivalent entities
Tier 2 instruments issued bysubsidiaries and held by third parties(amount allowed in group Tier 2)(Millions of yen)
As of March
31, 2019

As of March
31, 2018¥6,460¥14,344

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)--

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)

28,50231,317

166,150

159,405

7,777

10,3788. Other Capital Instruments(1) Consolidated Balance Sheet
Ref.

Consolidated balance sheet items

8-a
8-b

Borrowed money
Bonds and notes
Total

Remarks

Remarks

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)(Millions of yen)
As of March
31, 2019

As of March
31, 2018¥3,061,504
8,351,071¥11,412,575¥4,896,218
7,544,256¥12,440,475

Remarks

256

Reconciliation of regulatory capital to consolidated balance sheet

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Directly issued qualifying additional
Tier 1 instruments plus related stock
32 surplus of which: classified asliabilities under applicable accounting
standards
Directly issued qualifying Tier 2
instruments plus related stock surplus
46
of which: classified as liabilities underapplicable accounting standards

257

Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
As of March
31, 2019

As of March
31, 2018¥1,570,000¥1,220,000

1,002,257

828,702

Remarks

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Summary of Risk Management and Risk-weighted Assets (RWA)(1) Summary of Our Group’s Risk Profile, Risk Management Policies/ Procedures and Structure
See pages 73 to 78 for a summary of our group’s risk profile and risk management policies, etc.
(2) Summary of RWA(A) OV1: Overview of Risk-weighted Assets (RWA)(Millions of yen)

a

b
RWA

Basel III
TemplateNo.

cdcapital requirements

As of March
31, 2019¥37,656,623

As of March
31, 2018¥38,823,030

As of March
31, 2019¥3,177,419

As of March
31, 2018¥3,275,858

1,738,523
34,352,032
1,566,067

1,820,063
35,420,038
1,582,929

139,081
2,913,052
125,285

145,605
3,003,619
126,634

1
2
3

Credit risk (excluding counterparty credit risk)of which: standardized approach (SA)of which: internal rating-based (IRB) approachof which: significant investmentsof which: estimated residual value of lease transactions
others4
54,491,743

4,531,171

364,208

366,994

6Counterparty credit risk (CCR)
of which: SA-CCR
of which: current exposure methodof which: expected positive exposure (EPE) methodof which: credit valuation adjustment (CVA) riskof which: central counterparty-related
Others139,720
878,8452,457,535
190,997824,644

216,424
887,8432,539,780
193,088694,035

11,51873,961
196,602
15,27966,846

17,72374,632
203,182
15,44756,0097

Equity positions in banking book under market-based approach

2,492,949

2,972,073

211,402

252,03189Equity investments in funds - Look-through approach
Equity investments in funds - Mandate-based approach
Equity investments in funds - Simple approach (subject to 250% RW)
Equity investments in funds - Simple approach (subject to 400% RW)
Equity investments in funds - Fall-back approach
Fund exposures - standardized approach
Fund exposures - regarded method

2,620,615
598,267
19,489
/
/

/
/
/
/
/
3,515,582

220,993
50,733
1,563
/
/

/
/
/
/
/
297,28911

Settlement risk

12
13
14
15

Securitization exposures in banking bookof which: Securitisation IRB approach (SEC-IRBA) or internal assessment approach(IAA)of which: Securitisation external ratings-based approach (SEC-ERBA)
of which: Securitisation standardised approach (SEC-SA)of which: IRB ratings-based approach (RBA) or IRB internal assessment approach (IAA)of which: IRB supervisory formula approach (SFA)of which: SA/simplified supervisory formula approach (SSFA)of which: 1250% risk weight is applied

2,705
1,050,204

4,574
379,016229
84,016386
32,003735,081304,189///
10,933///
110,551
231,492
25,711
11,26158,80624,335
/
/
/
874

/
/
/
9,374
19,630
2,056
941

16
17
18

Market riskof which: standardized approach (SA)of which: internal model approaches (IMA)

2,034,213

2,470,321

162,737

197,625

1,172,343
861,870

1,406,398
1,063,922

93,787
68,949112,51185,113

19
20
21
22

Operational riskof which: basic indicator approachof which: standardized approachof which: advanced measurement approach

3,236,495

3,411,289

258,919

272,903628,1102,608,385

591,0832,820,206

50,248208,670

47,286225,616

23

Exposures of specified items not subject to regulatory adjustments
Amounts included in RWA subject to phase-out arrangements
Floor adjustment
Total (after applying the scaling factor)

1,209,277¥57,899,567

818,950¥59,528,983

99,743¥4,631,965

67,224¥4,762,318

10

24
25

258

Overview of RWA

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) Credit Risk Weighted Assets by Asset Class and Ratings Segment(Billions of yen)
As of March 31, 2019

Internal ratings-based approach
Corporate, etc.
Corporate (except specialized
lending)
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1
Sovereign
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1Bank
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1
Specialized lending
RetailResidential mortgage
Qualifying revolving loan
Other retail
Equities
PD/LGD approach
Market-based approach
Regarded-method exposure
Securitizations
OthersStandardized approach
Equity investments in funds
Securitization exposures
CVA risk
Central counterparty-related
Total

As of March 31, 2018

EAD
¥188,866.1
171,471.5

RWA¥42,309.2
29,822.5

Risk
Weight(%)
22.40
17.39

EAD
¥188,162.7
162,853.7

RWA¥47,619.7
29,536.1

Risk
Weight(%)
25.30
18.13

87,608.9

27,339.1

31.20

79,917.9

27,232.1

34.07

65,892.5
20,261.6
867.6
587.1
77,227.7
77,117.9
108.0
1.8
0.0
6,461.1
5,951.3
508.5
0.0
1.2
173.5
11,046.3
8,716.2
642.9
1,687.1
4,407.4
3,559.8
847.6//
1,940.7
4,620.6
2,262.8
4,185.2//¥199,934.8

13,942.5
12,045.7
1,105.3
245.4
963.2
886.3
73.8
3.0
0.0
1,338.4
1,027.1
310.7
0.0
0.3
181.6
3,526.3
2,338.3
504.2
683.7
7,183.3
4,445.9
2,737.4//
1,776.9
3,282.2
3,416.1
972.7
2,457.5
190.9¥52,628.8

21.15
59.45
127.39
41.81
1.24
1.14
68.33
169.08
40.96
20.71
17.25
61.10
153.4032.33
104.67
31.92
26.82
78.42
40.52
162.98124.89322.95
/
/
91.56
71.03
150.96
23.24
/
/
24.99

58,776.0
19,376.2
1,182.2
583.3
76,803.1
76,674.5
128.2
0.3
0.0
5,986.3
5,447.4
537.5
0.0
1.2
146.3
11,629.8
9,046.0
673.7
1,910.0
5,136.2
4,162.6
973.5
2,102.9
4,169.4
2,270.5
18,603.6////¥206,766.4

13,840.5
11,569.6
1,625.0
196.7
833.9
758.3
75.2
0.2
0.0
1,313.1
1,002.1
310.5
0.0
0.3
156.9
3,818.0
2,508.1
513.0
796.8
8,436.2
5,279.2
3,157.0
3,716.1
371.5
1,741.5
3,294.7//
2,539.7
193.0¥53,647.3

23.54
59.71
137.45
33.73
1.08
0.98
58.70
82.31
39.56
21.93
18.39
57.77
129.81
29.94
107.22
32.83
27.72
76.14
41.72
164.25126.82324.26
176.70
8.91
76.70
17.71
/
/
/
/
25.94

Note1: "Specialized lending" is specialized lending exposure under supervisory slotting criteria.
Note2: "Equity investments in funds" is total of look-though approach, mandate-based approach, simple approach and fall-back approach.
Note3: "Equity investments in funds" and "Securitization exposures" as of March 31, 2019 are disclosed out of Internal ratings-based approach due to revision of FSA Notice No.20.

259

RWA by asset class and ratings segment

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Linkages between Financial Statements and Regulatory Exposures(A) LI1: Differences between Accounting and Regulatory Scopes of Consolidation and Mapping of Financial
Statement Categories with Regulatory Risk Categories(Millions of yen)a

AssetsCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under
Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives Other than for Trading
AssetsOther Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for
Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total assetsb

As of March 31, 2019def
Carrying values of items:cCarrying
Carrying
values as
valuesreported inunderpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥45,108,602
648,254
12,997,628¥45,108,602
648,254-¥12,997,628

2,578,133-

2,828,959
12,043,608
351,889
29,774,489
78,456,935
1,993,668

2,205,129
351,889
28,542,167
77,017,297
1,993,668

1,328,227gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

2,578,133---

6,074,759
456-

589,2111,168,312
1,439,181-

12,043,608-

34,61964,008--

1,328,227---

4,229,589
1,037,006
620,231
982,804
37,9601,465,349
1,037,006
167,749
300,661
1,393

1,557,007
-

6,724
-

-

1,200,507
452,482
682,142
36,566

6,062,053

6,060,193

7

1,852

-

-

(287,815)¥200,792,226(287,794)¥164,611,568¥24,536,221¥3,205,281¥12,043,608(20)¥2,470,306

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

260

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

LI1-(Continued)(Millions of yen)ab

Carrying
values as
Carrying
reported in values underpublished scope offinancial regulatory
statements consolidation
Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for trading
liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for variable compensation
Net Defined Benefit Liability
Reserve for Director and Corporate
Auditor Retirement Benefits
Reserve for possible losses onsales of loans
Reserve for contingencies
Reserve for reimbursement of deposits
Reserve for reimbursement ofdebentures
Reserves under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Acceptances and Guarantees
Total liabilities

As of March 31, 2019def
Carrying values of items:cSubject tocreditrisk
framework

Subject tocounterparty Subject to thecredit risk securitization
framework
frameworkg
Not subject tocapitalrequirements
or subject todeductionfrom capital

Subject tothe market
risk
framework¥124,311,025
13,338,571
2,841,931

¥-

¥-

¥-

¥- ¥124,311,025
13,338,571
2,841,931

14,640,439-

14,640,439--

1,484,584-

1,484,584---

941,181
8,325,520
3,061,504
669,578355,539
8,351,071
1,102,073-

5,745,580--

8,325,520-

941,181
3,061,504
669,578355,539
8,351,071
1,102,073

1,165,602-

1,165,602---

4,512,325
68,1172,867
60,873-55,033---

4,457,291
68,1172,867
60,873

1,389

-

-

-

-

1,389

-

630

-

-

-

-

630

4,910
19,068

100
-

-

-

-

4,809
19,06825,566----25,566

2,473
185,974

-

-

-

-

2,473
185,974

63,315----63,315

6,062,053¥191,598,188¥100¥23,091,239¥-

6,062,053¥8,325,520 ¥165,926,908

Notes: 1. Since the scope of accounting consolidation and that of regulatory consolidation are the same, the column (a) and (b) have been combined.
2. Market risk includes foreign exchange risk and commodities risk in the banking book, but only those items in the trading book are recorded.

261

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AssetsCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under
Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives Other than for Trading
AssetsOther Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for
Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total assetsb

As of March 31, 2018def
Carrying values of items:cCarrying
Carrying
values as
valuesreported inunderpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥47,725,360
715,149
8,080,873¥47,725,360
715,149-¥8,080,873

4,350,527-

2,713,742
10,507,133
337,429
34,183,033
79,421,473
1,941,677

2,127,247
337,429
32,788,339
77,937,924
1,941,677

1,807,999gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

4,350,527---

5,318,732
1,305-

551,092
1,287,391
1,475,430-

10,507,133-

35,402
2,249
107,303
6,812--

1,807,999---

4,588,484
1,111,128
1,092,708
996,173
47,8391,549,959
1,111,128
312,342304,793
5,487

1,936,112
-

4,161
-

-

1,098,251
780,365
691,380
42,352

5,723,186

5,722,952

234

-

-

-

(315,621)¥205,028,300(314,330)¥172,265,461¥21,495,785¥3,318,075¥10,507,133(1,291)¥2,762,827

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

262

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

LI1-(Continued)(Millions of yen)ab

Carrying
values as
Carrying
reported in values underpublished scope offinancial regulatory
statements consolidation
Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for trading
liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for variable compensation
Net Defined Benefit Liability
Reserve for Director and Corporate
Auditor Retirement Benefits
Reserve for possible losses onsales of loans
Reserve for contingencies
Reserve for reimbursement of deposits
Reserve for reimbursement ofdebentures
Reserves under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Acceptances and Guarantees
Total liabilities

As of March 31, 2018def
Carrying values of items:cSubject tocreditrisk
framework

Subject tocounterparty Subject to thecredit risk securitization
framework
frameworkg
Not subject tocapitalrequirements
or subject todeductionfrom capital

Subject tothe market
risk
framework¥125,081,233
11,382,590
2,105,293

¥-

¥-

¥-

¥- ¥125,081,233
11,382,590
2,105,293

16,656,828-

16,656,828--

1,566,833-

1,566,833---

710,391
8,121,543
4,896,218
445,804
362,1857,544,256
4,733,131-

4,936,441--

8,121,543-

710,391
4,896,218
445,804
362,1857,544,256
4,733,131

1,514,483-

1,514,483---

3,685,585
66,872
3,242
58,890-76,599---3,608,986
66,872
3,242
58,890

1,460

-

-

-

-

1,460

1,075

-

-

-

-

1,075

5,622
20,011

56
-

-

-

-

5,566
20,011

30,760----30,7602,361
421,002

-

-

-

-

2,361
421,002

66,186----

66,186

5,723,186¥195,207,054¥56¥24,751,187¥-

5,723,186¥8,121,543 ¥167,270,708

Notes: 1. Since the scope of accounting consolidation and that of regulatory consolidation are the same, the column (a) and (b) have been combined.
2. Market risk includes foreign exchange risk and commodities risk in the banking book, but only those items in the trading book are recorded.

263

Linkages between Financial Statements and Regulatory Exposures-2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(B) LI2: Main Sources of Differences between Regulatory Exposure Amounts and Carrying Values in Financial
Statements(Millions of yen)

a

Total
1
2
3
4
5
6
7
8
9

Asset carrying value amount under scope of
regulatory consolidation (as per template LI1)
Liabilities carrying value amount under regulatory
scope of consolidation (as per template LI1)
Total net amount under regulatory scope of consolidation
Off-balance sheet amounts
Differences due to consideration of provision forloan losses and write-offs
Differences due to derivative transactions, etc.
Differences due to repurchase transactions
Other differences
Exposure amounts considered for regulatory purposes

As of March 31, 2019bcde
Items subject to:Counterparty
credit risk Securitization Market risk
Credit risk
framework
framework
framework
framework¥198,321,920¥164,611,568¥24,536,221¥3,205,281¥12,043,608

25,671,280

100

23,091,239-

8,325,520

172,650,640
18,704,303

164,611,467
17,707,842

1,444,982-

3,205,281
996,461

3,718,088-

372,837

372,837---

1,818,614
11,473,212(21,575)¥204,998,031(350,755)¥182,341,391

1,818,614
11,473,212¥14,736,809¥4,201,743¥3,718,088

Notes: 1. Column (a) is not necessarily equal to the sum of columns (b) to (e) due to assets being riskweighted more than once.
2. Differences between regulatory exposure amounts and carrying values in consolidated financial statements and the main sources of the differences are as follows.
･ Off-balance sheet amounts correspond to the differences produced mainly by adding exposures to undrawn commitments and by multiplying customer liabilities for
acceptances and guarantees by the credit conversion factor (CCF) assigned to off-balance sheet items under the regulatory capital requirements.
･ Differences due to consideration of provision for loan losses, and write-offs are produced mainly by adding general provisions for loan losses, specific provisions for loan
losses and partial direct bad debt write-offs to those assets subject to the advanced internal ratings-based approach.
･ Differences due to derivative transactions, etc. are produced mainly by incorporating future market value fluctuations and the effect of netting into regulatory exposureamounts. Derivative transactions, etc. include long-settlement transactions.
･ Differences due to repurchase transactions are mainly produced by adding the exposure amounts related to assets pledged as collateral and considering the effect of
netting and collateral.
･ Other differences are produced mainly by considering the offsetting of deferred tax assets against deferred tax liabilities and the regulatory recognized effectiveness ofhedging and making regulatory prudential adjustments.

(Millions of yen)

a

Total
1
2
3
4
5
6
7
8
9

Asset carrying value amount under scope of
regulatory consolidation (as per template LI1)
Liabilities carrying value amount under regulatory
scope of consolidation (as per template LI1)
Total net amount under regulatory scope of consolidation
Off-balance sheet amounts
Differences due to consideration of provision forloan losses and write-offs
Differences due to derivative transactions, etc.
Differences due to repurchase transactions
Other differences
Exposure amounts considered for regulatory purposes

As of March 31, 2018bcde
Items subject to:Counterparty
credit risk Securitization Market risk
Credit risk
framework
framework
framework
framework¥202,265,473¥172,265,461¥21,495,785¥3,318,075¥10,507,133

27,936,345

56

24,751,187-

8,121,543

174,329,127
17,311,153

172,265,405
16,446,822(3,255,401)-

3,318,075
864,3312,385,589-

401,252

401,252---

1,887,980
17,310,011(523,103)¥210,716,420(907,644)¥188,205,836

1,887,980
17,310,011¥15,942,589¥4,182,406¥2,385,589

Notes: 1. Column (a) is not necessarily equal to the sum of columns (b) to (e) due to assets being riskweighted more than once.
2. Differences between regulatory exposure amounts and carrying values in consolidated financial statements and the main sources of the differences are as follows.
･ Off-balance sheet amounts correspond to the differences produced mainly by adding exposures to undrawn commitments and by multiplying customer liabilities for
acceptances and guarantees by the credit conversion factor (CCF) assigned to off-balance sheet items under the regulatory capital requirements.
･ Differences due to consideration of provision for loan losses, and write-offs are produced mainly by adding general provisions for loan losses, specific provisions for loan
losses and partial direct bad debt write-offs to those assets subject to the advanced internal ratings-based approach.
･ Differences due to derivative transactions, etc. are produced mainly by incorporating future market value fluctuations and the effect of netting into regulatory exposureamounts. Derivative transactions, etc. include long-settlement transactions.
･ Differences due to repurchase transactions are mainly produced by adding the exposure amounts related to assets pledged as collateral and considering the effect of
netting and collateral.
･ Other differences are produced mainly by considering the offsetting of deferred tax assets against deferred tax liabilities and the regulatory recognized effectiveness ofhedging and making regulatory prudential adjustments.

264

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Credit Risk
(1) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
See pages 105 to 108 for a summary of our credit risk profile and credit risk management policies, etc.
(2) Summary of Provision for Loan Losses and Write-offs
See page 107 for a summary of provision for loan losses and write-offs.
(3) Quantitative Disclosure on Credit Risk
Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from theamount of credit risk exposures below.
(A) CR1: Credit Quality of Assets(Millions of yen)

As of March 31, 2019abcGross carrying values of
NonDefaulted
defaulted
exposures
exposures
Reserve
1
2
3
4
5
6
7
8

On-balance sheet exposures
Loans
Debt securities
Other on-balance sheet debt exposures
Total on-balance sheet exposures (1+2+3)
Off-balance sheet exposures
Guarantees
Commitments
Total off-balance sheet exposures (5+6)
Total
Total assets (4+7)

dNet values(a+b-c)¥626,537
5,616
8,724
640,879¥76,391,257
22,665,487
49,282,616
148,339,361¥250,708
2,506
253,215¥76,767,086
22,671,103
49,288,834
148,727,025

18,741
15,21630,1686,043,311
26,990,138
31,247,288

30,71730,717

6,031,335
27,005,354
33,036,689¥674,836 ¥181,372,812¥283,933 ¥181,763,715

Notes: 1. Other on-balance sheet debt exposures include deposits, call loans, bills purchased, other debt purchased, money held in trust and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.
3. Reserve corresponds to the amount of reserves for possible loan losses(Millions of yen)

As of March 31, 2018abcGross carrying values of
NonDefaulted
defaulted
exposures
exposures
Reserve
1
2
3
4
5
6
7
8

On-balance sheet exposures
Loans
Debt securities
Other on-balance sheet debt exposures
Total on-balance sheet exposures (1+2+3)
Off-balance sheet exposures
Guarantees
Commitments
Total off-balance sheet exposures (5+6)
Total
Total assets (4+7)

dNet values(a+b-c)¥645,060
5,946
2,652
653,659¥77,305,616
26,116,905
51,697,897
155,120,419¥271,369
2,526
273,896¥77,679,307
26,122,851
51,698,023
155,500,182

13,776
15,24929,026

5,709,421
25,189,759
30,899,180

30,81930,8195,692,378
25,205,009
30,897,388¥682,685 ¥186,019,600¥304,715 ¥186,397,570

Notes: 1. Other on-balance sheet debt exposures include deposits, call loans, bills purchased, other debt purchased, money held in trust and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.
3. Reserve corresponds to the amount of reserves for possible loan losses

265

Credit Risk、Quantitative Disclosure on Credit Risk

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(B) Breakdown of Credit Risk Exposures(a) Breakdown by Geographical Area

(Billions of yen)

As of March 31, 2019
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Domestic¥65,407.9 ¥18,914.7
Overseas
43,521.4
7,804.6
Asia
11,448.8
2,068.7
Central and South America
3,421.1
69.0
North America
15,596.8
2,811.5
Eastern Europe
338.1
Western Europe
8,700.7
2,199.6
Other areas
4,015.7
655.4
Total¥108,929.4 ¥26,719.3
Standardized approach portion//

As of March 31, 2018

Loans,
commitments
and other
non-derivative
off-balancesheet
OthersTotal
exposures Securities¥40,872 ¥125,194.7 ¥62,042.2 ¥21,449.0
10,834.2
62,160.3
39,785.8
9,122.3
1,812.5
15,330.0
10,263.4
1,961.2
1,058.2
4,548.4
2,947.5
52.0
5,624.2
24,032.6
14,172.5
5,074.6
6.8
345.0
346.0
1,983.9
12,884.3
7,876.3
1,313.7
348.5
5,019.7
4,179.8
720.5¥51,706.3 ¥187,355.1 ¥101,828.0 ¥30,571.3///
3,446.8

OthersTotal¥37,376.2 ¥120,867.5
10,527.5
59,435.7
1,947.9
14,172.7
1,136.3
4,135.9
5,917.4
25,164.6
10.0
356.1
844.5
10,034.6
671.1
5,571.5¥47,903.8 ¥180,303.2/
16,604.4

Notes: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA
2. Exposure to non-Japanese residents is included in Overseas.
3. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.

(b) Breakdown by Industry(Billions of yen)

As of March 31, 2019
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Manufacturing¥24,669.8¥1,961.9
Construction
1,745.6
230.3
Real estate
10,741.9
872.3
Service industries
5,800.9
418.9
Wholesale and retail
10,268.6
702.8
Finance and insurance
16,080.8
2,960.3
Individuals
11,667.7
Other industries
26,389.4
6,574.3
Japanese Government; Bank of Japan
1,564.4
12,998.3
Total¥108,929.4 ¥26,719.3
Standardized approach portion//

As of March 31, 2018

Loans,
commitments
and other
non-derivative
off-balancesheet
OthersTotal
exposures Securities¥383.6 ¥27,015.4 ¥22,348.0¥2,335.3
11.3
1,987.3
1,834.4
235.7
5.9
11,620.1
9,576.2
814.1
34.3
6,254.2
5,455.8
440.1
662.7
11,634.2
9,536.2
755.6
11,484.8
30,525.9
13,028.8
2,395.8
10.3
11,678.1
12,145.6
9.9
2,729.5
35,693.3
25,827.4
8,314.1
50,946.2
36,383.5
2,075.1
15,270.3¥51,706.3 ¥187,355.1 ¥101,828.0 ¥30,571.3///
3,446.8

OthersTotal¥551.1 ¥25,234.5
65.5
2,135.6
18.0
10,408.5
714.2
6,610.2
744.0
11,036.0
3,706.3
19,131.0
114.1
12,269.6
9,790.1
43,931.7
49,545.6
32,200.0¥47,903.8 ¥180,303.2/
16,604.4

Notes: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA.
2. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)(c) Breakdown by Residual Contractual Maturity
As of March 31, 2019
As of March 31, 2018
Loans,
Loans,
commitments
commitments
and otherand other
non-derivative
non-derivative
off-balanceoff-balancesheet
sheet
exposures Securities
OthersTotal
exposures Securities
Others
Total
Less than one year
¥28,047.5 ¥12,158.2¥7,605.5 ¥47,811.3 ¥30,139.5 ¥10,117.3¥6,135.9 ¥46,392.7
From one year to less than three years
28,129.7
4,153.6
17.4
32,300.8
22,692.1
4,828.9789.9
28,311.0
From three years to less than five years
23,229.0
1,252.1
13.8
24,495.0
20,637.6
3,738.5
14.5
24,390.7
Five years or more
29,160.9
4,980.4
38.1
34,179.5
27,872.8
7,042.5
165.4
35,080.9
48,568.3
46,127.8
Other than above
362.1
4,174.8
44,031.3
485.8
4,843.9
40,798.0
Total¥108,929.4 ¥26,719.3 ¥51,706.3 ¥187,355.1 ¥101,828.0 ¥30,571.3 ¥47,903.8 ¥180,303.2
Standardized approach portion
/
/
/
/
/
/
3,446.8
16,604.4
Notes: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA
2. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.

(C) Exposure to Obligors Claims of Whom Meet the Stipulations in the Article 4 Paragraph 2, 3 or 4 of theOrdinance for Enforcement of the Act on Emergency Measures for the Revitalization of the Financial Functions
Enacted in Japan(a) Breakdown by Geographical Area

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Other areas
Total
Standardized approach portion

As of March 31, 2019
Exposure
Reserve
Write-offs¥580.0¥110.0
¥15.9
185.1
61.0
9.4
51.9
28.3
8.9
20.2
2.9
0.5
78.1
19.5
0.2
0.2
22.2
4.0
0.0
12.3
5.7
¥765.2¥171.0
¥25.4
8.8
3.0
0.9

(Billions of yen)

As of March 31, 2018
Exposure
Reserve
Write-offs¥598.8¥121.9
¥13.7
193.0
35.9
1.4
28.6
2.4
0.0
63.1
4.3
19.9
0.3
0.4
0.4
71.4
24.8
1.3
9.2
3.4
¥791.8¥157.8
¥15.2
14.1
6.9
0.3

Note: Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit RWA(b) Breakdown by Industry

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Standardized approach portion(Billions of yen)

As of March 31, 2019
Exposure
Reserve
Write-offs¥151.1
¥48.2
¥3.2
21.2
6.3
9.4
52.8
2.2
0.0
89.2
15.3
0.9
148.1
29.3
8.3
26.3
3.9
0.0
82.3
10.2
3.0
193.7
55.3
0.4
¥765.2¥171.0
¥25.4
8.8
3.0
0.9

As of March 31, 2018
Exposure
Reserve
Write-offs¥190.9
¥50.4
¥2.8
7.8
0.8
0.1
43.5
1.8
0.2
73.6
12.9
1.9
198.2
55.0
5.7
21.5
1.9
103.3
12.3
3.3
152.6
22.4
0.8
¥791.8¥157.8
¥15.2
14.1
6.9
0.3

Note: Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of
calculating credit RWA.

267

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2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(D) Exposure by Past Due Period(Billions of yen)

As of March 31, 2019
From one month to less From two months to lessthan two months
than three months
Three months or more
Less than one month¥385.6¥117.3¥24.7¥119.5

Total¥647.3

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions as well as high risk claims stipulated in the Article 4 paragraph 3.

(Billions of yen)

As of March 31, 2018
From one month to less From two months to lessthan two months
than three months
Three months or more
Less than one month¥100.7
¥46.1
¥15.1
¥29.4

Total
¥191.5

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions as well as high risk claims stipulated in the Article 4 paragraph 3.

(E) Exposure to Obligors Claims of Whom have been Restructured for the Purpose of Corporate Restructuring or
Supporting the Customer(Billions of yen)

As of March 31, 2019

Exposure¥263.2

Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥225.4

Others¥37.7

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions, high risk claims stipulated in the Article 4 paragraph 3 or claims overdue for more than three months stipulated in the Article 4paragraph 4.

(Billions of yen)

As of March 31, 2018

Exposure¥322.7

Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥280.6

Others¥42.0

Notes: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions, high risk claims stipulated in the Article 4 paragraph 3 or claims overdue for more than three months stipulated in the Article 4paragraph 4.

268

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2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(4) Credit Risk under Internal Ratings-Based (IRB) Approach(i) Summary of Internal Ratings-Based (IRB) Approach
We have adopted Advanced Internal Ratings-Based (AIRB) Approach as a method to calculate credit risk weighted
assets (RWA) since March 31, 2009. The following business units have adopted AIRB approach:Mizuho Financial Group, Inc., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Credit Guarantee Co., Ltd.,
Mizuho Trust Realty Company Limited, Mizuho Bank (China), Mizuho Bank (USA), Ltd., Mizuho Bank Europe N.V., andMizuho Capital Markets LLC.
Note: Special purpose companies (SPCs) controlled by the above companies have also adopted the AIRB approach due to theirbusiness operations integrated with their parent companies.

The application scope of AIRB is determined through taking into account the importance for each business unit, such as
the ratio of its credit RWA to that of the entire group. AIRB is generally applied to those assets held by the business
units that have adopted AIRB except for some asset classes considered immaterial for the purpose of calculating credit
RWA .In addition, AIRB is used for all equity exposures regardless of what approach the business unit has adopted.
With respect to credit RWA exposures under Regarded-Method, AIRB is used for those of which the look-throughapproach is applied except for cases where it is difficult to accurately calculate credit RWA regarding their underlying
assets based on the IRB Approach and therefore reliability of credit RWA cannot be secured. The standardized
approach will be applied to any of those business units and asset classes that do not meet the above conditions.
(ii) Summary of Our Internal Rating System
See pages 105 to 107 for a summary of our internal rating system and rating assignment procedures.

Estimation of parameters and validation
We use our own estimates for the parameters indicated below in the calculation of credit RWA under the Basel
Framework. We generally validate the parameters by backtesting or other methods on an annual basis. Methods of
estimation and validation as well as results are approved by the Chief Risk Officer.
Probability of default (likelihood of default of an obligor over a period of one year)
PD
LGD
Loss given default
EAD
Exposure at default
The definition of default conforms to the Notice issued by Japan’s Financial Services Agency.

Details of Estimates:
We estimate PD of corporate, sovereign and bank exposures per obligor rating, and that of retail exposures per pool
allocations. In making estimations, we make conservative adjustments such as accounting for estimation error on thelong-term average of internal default records. We supplement estimations for low default portfolios with external data.
We apply the regulatory floor PD (0.03%) to A1-rated obligors in the measurement of credit RWA, except for sovereign
exposures. The estimated parameters in almost all the PD categories such as obligor rating or pool allocations
exceeded actual defaults in the last three years. The differences stemmed from such reasons as: actual defaults in thelast few years were lower than the long-term average of the defaults over the entire period, which was the basis for ourestimation; conservative adjustments have been made to estimated parameters.
We estimate LGD based on obligor classifications in our self-assessments or pool allocations, and protection coverage.
For LGD per obligor classifications, we estimate LGD under normal economic circumstances based on prior defaulted
obligor data, making adjustments in consideration of periods of economic downturn using stochastic methods. Ourestimation is based on validation of the time between the default event and the closure of the exposure as well as LGD
for low default portfolios etc. With regard to protection, we estimate LGD per type of collateral using some external data.
We estimate EAD based on prior defaulted obligor data.
(iii) Asset Class-based EAD Ratios to the Total EAD by Credit RWA Calculation Approach
Internal Ratings-based Approach
Corporate
RetailEquities
Purchase Receivables
OthersStandardized Approach
Total

As of March 31, 201998.08%
86.81
6.12
2.44
1.62
1.07
1.91%
100.00%

As of March 31, 201891.18%
79.20
6.24
2.75
1.75
1.21
8.81%
100.00%Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. As for any portfolio to which the standardized approach is applied, exposure instead of EAD is used for calculation.

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PD scale
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

a
b
c
d
e
f
g
h
Original
Offon-balance balance
EAD
sheet
sheet Average post CRM Average Number Averagegross exposures CCF
and
PD
of
LGD Average
exposure pre CCF(%)
post-CCF(%)
obligors(%)
maturity
As of March 31, 2019

Sovereign¥66,209,608¥413,709
79.43 ¥67,797,332
0.00 to <0.15
0.15 to <0.25
22,190
1,474
75.00
11,1240.25 to <0.50
0.50 to <0.75
138,214
4,995
75.00
85,5050.75 to <2.50
61,800
5,173
75.00
1,489
2.50 to <10.00
16,436
1,428
10.00 to <100.00
2
2
100.00 (Default)
66,448,251
425,35379.31 67,896,882
Sub-total
Banks
3,592,231
725,966
74.88
4,596,204
0.00 to <0.15
0.15 to <0.25
237,686
40,584
60.92
278,5220.25 to <0.50
0.50 to <0.75
219,123
29,303
84.78
216,764
0.75 to <2.50
21,103
22,332
74.21
21,9942.50 to <10.00
10.00 to <100.00
1,027
1,027
100.00 (Default)
4,071,173
818,186
74.53
5,114,513
Sub-total
Corporate (except SME and specialized lending)
40,813,958 24,147,753
73.81 59,581,637
0.00 to <0.15
0.15 to <0.25
7,720,193
2,298,649
74.72
8,953,178
0.25 to <0.50
0.50 to <0.75
4,813,838
1,175,144
75.42
5,206,907
0.75 to <2.50
1,460,606
388,260
66.82
1,284,345
2.50 to <10.00
528,967
156,905
78.38
439,761
10.00 to <100.00
427,003
27,531
75.69
428,303100.00 (Default)
55,764,567 28,194,244
73.88 75,894,134
Sub-total
SME
203,291
31,16673.21
229,1780.00 to <0.15
0.15 to <0.25
1,375,014
60,68674.30
1,398,157
0.25 to <0.50
0.50 to <0.75
1,354,712
45,02277.81
1,353,538
0.75 to <2.50
489,549
13,80880.96
483,191
2.50 to <10.00
173,990
3,889
70.49
169,776
10.00 to <100.00
134,811926
76.62
126,842100.00 (Default)
3,731,369
155,49975.61
3,760,684
Sub-total
Specialized Lending
2,709,198
333,675
76.43
2,561,400
0.00 to <0.15
0.15 to <0.25
683,188291,892
77.22
695,724
0.25 to <0.50
0.50 to <0.75
383,404
81,83974.89
326,4390.75 to <2.50
77,2696,208
92.47
44,5332.50 to <10.00
24,9186,265
77.55
16,30310.00 to <100.00
29,225363
100.0027,175100.00 (Default)
3,907,204
720,24476.74
3,671,578
Sub-total
Equities (PD/LGD approach)
3,123,409
11,603100.003,135,013
0.00 to <0.15
0.15 to <0.25
119,829
119,829
0.25 to <0.50
0.50 to <0.75
70,861
70,8610.75 to <2.50
11,93011,9302.50 to <10.00
1,164
1,164
10.00 to <100.00
4,084
4,084
100.00 (Default)¥3,331,279¥11,603100.00 ¥3,342,883
Sub-total

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.34
1.11
3.91
14.89
100.00
0.00

0.3
0.0
0.0
0.0
0.0
0.0
0.3

38.03
36.76
37.97
38.01
33.77
30.41
38.03

1.3
3.9
1.1
1.4
3.0
1.0
1.3

¥671,312
6,566
55,620
1,573
2,429
0
737,504

0.99
59.03
65.04
105.67170.03
38.64
1.08

¥930
13
361
22
71
0
1,400

¥/
/
/
/
/
/
/
/
870

0.05
0.36
1.09
3.07
100.00
0.15

0.3
0.1
0.0
0.0
0.0
0.5

37.91
36.95
37.02
41.05
96.59
37.84

1.5
1.6
0.9
2.6
5.0
1.5

688,280
107,045
154,486
26,736313
976,862

14.97
38.43
71.26
121.56
30.50
19.09

919
326
882
277
967
3,372

/
/
/
/
/
/
/
/
2,097

0.06
0.36
1.15
3.55
14.89
100.00
0.88

7.4
8.8
4.9
325.4
3.1
2.7
352.5

37.97
33.72
32.17
30.88
28.10
45.25
36.94

2.4
2.7
2.8
2.8
2.5
1.7
2.5

11,710,662
4,145,489
3,721,758
1,217,196
605,761
172,313
21,573,181

19.65
46.30
71.47
94.77
137.7440.23
28.42

14,916
11,02919,267
14,174
18,409180,058
257,855

/
/
/
/
/
/
/
/
160,329

0.06
0.37
1.16
3.19
14.89
100.00
5.01

0.0
7.0
6.0
110.3
1.8
1.0
126.4

34.50
25.12
22.44
21.16
17.62
39.69
24.37

3.2
3.0
3.3
3.8
3.2
2.2
3.2

47,184427,172
580,133
261,443
126,925
42,527
1,485,386

20.58
30.55
42.86
54.10
74.76
33.52
39.49

49
1,298
3,600
3,316
4,456
46,94559,667

/
/
/
/
/
/
/
/
37,099

0.08
0.33
0.93
3.46
14.89
100.00
1.05

0.4
0.1
0.0
0.0
0.0
0.0
0.7

34.94
38.38
38.87
37.55
38.01
62.73
36.19

4.3
4.1
4.4
3.7
3.9
4.4
4.2

736,152
444,157
320,941
55,28432,615
14,536
1,603,687

28.74
63.84
98.31
124.13200.04
53.48
43.67

725
915
1,186
582
923
15,884
20,218

/
/
/
/
/
/
/
/
12,571

0.04
0.33
1.19
4.01
14.89
100.00
0.22

1.0
0.7
0.2
0.0
0.0
0.1
2.2

90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
5.0
5.0
5.0
5.0
5.0
5.0

3,165,376
202,127
192,32145,342
7,520
45,948¥3,658,637

100.96
168.67271.40380.06646.001,125.00
109.44

/
/
/
/
/
/
/
/
¥/

/
/
/
/
/
/
/
/
¥/

270

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

CR6-(Continued)(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
i
j
Original
OffEADon-balance balance
post CRM
RWA
sheet
sheet Average
andAverage Number Averagedensitygross exposures CCF
PDofLGD Average
postPD scale
exposure pre CCF
(%)
(%)
CCF
(%)
obligors(%)
maturity RWA
As of March 31, 2019
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,072,913¥550,531
78.15 ¥2,503,107
0.06
0.6
38.33
1.5
¥338,704
13.53
1 0.00 to <0.15
2 0.15 to <0.25
232,216
74,542
76.53
289,269
0.37
0.2
38.01
1.7
127,78744.17
3 0.25 to <0.50
4 0.50 to <0.75
83,73822,631
86.29
103,268
0.93
0.0
38.01
1.1
62,88360.89
5 0.75 to <2.50
18,3182,873
94.31
21,029
3.08
0.0
38.01
1.3
20,30396.55
6 2.50 to <10.00
0
17,891
75.08
13,434
14.89
0.0
38.01
1.0
23,247173.037 10.00 to <100.00
217
217
100.00
0.0
31.88
4.3
91
42.30
8 100.00 (Default)
2,407,405
668,47078.23
2,930,326
0.22
1.0
38.28
1.5
573,018
19.55
9 Sub-total
Purchased receivables (Retail) - Default Risk Equivalent
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables (Dilution Risk Equivalent)
1,039,561
80,631100.001,120,192
0.07
0.1
38.01
145,295
12.97
1 0.00 to <0.15
2 0.15 to <0.25
72,202
72,202
0.33
0.0
37.89
24,99234.61
3 0.25 to <0.50
4 0.50 to <0.75
94,637
94,637
1.37
0.0
38.01
65,98969.72
5 0.75 to <2.50
6,623
6,623
3.54
0.0
38.01
6,473
97.73
6 2.50 to <10.00
7 10.00 to <100.00
7,126
7,126
100.00
0.0
46.87
3,825
53.67
8 100.00 (Default)
1,220,150
80,631100.001,300,781
0.74
0.1
38.05
246,577
18.95
9 Sub-total
Retail – qualifying revolving retail exposures (QRRE)/
1 0.00 to <0.15
25
0.19
0.8
77.69
/
2
8.14
2 0.15 to <0.25
30
0.33
0.7
78.44
/
3
12.65
3 0.25 to <0.50/
4 0.50 to <0.75
237,551865,682
14.27
361,157
2.34
593.9
78.44
/
204,53956.63
5 0.75 to <2.50
170,152
892,9167.95
241,079
4.14
2,067.1
78.45/
199,358
82.69
6 2.50 to <10.00
34,125
17,631
33.62
40,054
19.89
205.0
78.45
/
71,273177.937 10.00 to <100.00
482
1,229
11.44
619
100.00
1.9
71.90
/
522
84.32
8 100.00 (Default)
442,3121,777,459
11.28
642,966
4.20
2,869.6
78.44/
475,700
73.98
9 Sub-total
Retail – Residential mortgage
1,944,487
1,979,064
0.08
248.9
28.72
/
115,4225.83
1 0.00 to <0.15
1,147,939
1,150,775
0.20
114.5
31.96
/
150,495
13.07
2 0.15 to <0.25
1,988,711
1,988,027
0.34
231.1
32.65
/
388,60719.54
3 0.25 to <0.50
1,880,714
88,38797.55
1,928,162
0.64
284.0
35.67
/
639,405
33.16
4 0.50 to <0.75
1,501,250629
100.001,503,498
1.09
198.7
35.64
/
703,10746.76
5 0.75 to <2.50
70,6802,380
100.0073,417
9.45
10.4
37.38
/
121,737
165.816 2.50 to <10.00
26,3062,136
100.0028,456
46.92
4.3
39.43
/
54,817
192.637 10.00 to <100.00
63,491
1,315
100.0064,871100.005.4
44.36/
32,38349.91
8 100.00 (Default)
8,623,582
94,84897.72
8,716,274
1.43
1,097.6
33.00/
2,205,975
25.30
9 Sub-total
Other retail22259,936
0.05
37.7
47.73
/
18,7167.20
1 0.00 to <0.15
668,228
0.18
4.8
46.76
/
12,32818.06
2 0.15 to <0.25
117,62232
100.00118,210
0.35
5.2
47.57
/
32,83627.77
3 0.25 to <0.50
94,978266
75.25
93,320
0.66
88.6
46.78
/
36,40939.01
4 0.50 to <0.75
953,276
3,252
80.96
890,437
1.36
27.1
46.54
/
443,075
49.75
5 0.75 to <2.50
352,855
1,980
61.13
156,726
6.46
11.1
19.31
/
44,90928.65
6 2.50 to <10.00
88,4199,336
52.40
45,890
17.80
15.0
32.98
/
31,23368.06
7 10.00 to <100.00
67,6292,590
90.22
53,369100.002.8
47.47/
25,17547.17
8 100.00 (Default)
1,674,812
17,45764.76
1,686,119
5.04
192.7
43.95
/
644,68438.23
9 Sub-total
70.89 ¥174,957,145
0.66
4,644.3
38.17
2.00 ¥34,181,215
19.53
Total (all portfolios) ¥151,622,109 ¥32,964,000

k

l

EL

Provisions

¥657
413
366
246
760
61
2,506

¥/
/
/
/
/
/
/
/
1,558

-

/
/
/
/
/
/
/
/
-

313
91
493
89
3,034
4,022

/
/
/
/
/
/
/
/
/

0
0
6,653
7,829
6,251
403
21,139

/
/
/
/
/
/
/
/
13,144

475
756
2,253
4,434
5,783
2,592
5,272
26,19247,762

/
/
/
/
/
/
/
/
29,697

73
60
197
287
5,181
1,593
2,940
23,32333,658¥451,605

/
/
/
/
/
/
/
/
20,927¥278,296

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. On-balance sheet exposures, pre-CCF and pre- CRM off-balance sheet exposures, and the average CCF are allocated to the PD ranges based on pre- CRM PD
estimates.
3. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.

271

Quantitative Disclosure on Credit Risk under IRB approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Millions of yen, %, number in the thousands, year)

PD scale
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

a
b
c
d
e
f
g
h
Original
Offon-balance balance
EAD
sheet
sheet Average post CRM Average Number Averagegross exposures CCF
and
PD
of
LGD Average
exposure pre CCF(%)
post-CCF(%)
obligors(%)
maturity
As of March 31, 2018

Sovereign¥65,282,123¥493,305
78.14 ¥67,094,685
0.00 to <0.15
0.15 to <0.25
30,742
3,142
75.00
9,343
0.25 to <0.50
76,127
14,762
75.00
76,6460.50 to <0.75
80,202
163
75.00
28,7980.75 to <2.50
62,602
9,186
75.00
947
2.50 to <10.00
16,952
2675.00
217
10.00 to <100.00
1,819
19
100.00 (Default)
65,550,571
520,586
77.97 67,210,657
Sub-total
Banks
3,444,364
704,05072.47
4,274,768
0.00 to <0.15
0.15 to <0.25
106,079
34,292
83.00
157,228
0.25 to <0.50
197,750
55,03572.89
211,024
0.50 to <0.75
130,564
9,911
75.32
138,6430.75 to <2.50
20,652
18,12867.96
24,0452.50 to <10.00
10.00 to <100.00
1,287
1,287
100.00 (Default)
3,900,699
821,41872.87
4,806,998
Sub-total
Corporate (except SME and specialized lending)
35,728,142 21,717,226
73.81 52,701,719
0.00 to <0.15
0.15 to <0.25
4,154,221
1,464,926
75.16
4,954,125
0.25 to <0.50
3,335,203
874,325
74.03
3,808,160
0.50 to <0.75
4,212,757
926,47875.97
4,518,372
0.75 to <2.50
1,967,931
684,28170.34
1,912,682
2.50 to <10.00
478,359
172,02177.99
418,948
10.00 to <100.00
420,603
22,23080.22
414,611100.00 (Default)
50,297,219 25,861,490
73.92 68,728,619
Sub-total
SME
82,86920,92674.99
98,5620.00 to <0.15
0.15 to <0.25
552,499
29,15273.71
562,058
0.25 to <0.50
688,348
26,43074.25
690,992
0.50 to <0.75
1,243,471
29,19275.43
1,226,916
0.75 to <2.50
454,790
12,35476.30
446,427
2.50 to <10.00
147,430
5,173
92.75
140,309
10.00 to <100.00
146,588623
66.96
137,093
100.00 (Default)
3,315,998
123,85375.47
3,302,360
Sub-total
Specialized Lending
2,375,330
262,27277.84
2,206,165
0.00 to <0.15
0.15 to <0.25
386,629
139,79777.89
373,2810.25 to <0.50
230,853
74,91877.70
215,900
0.50 to <0.75
413,034
107,07875.36
331,8110.75 to <2.50
76,132
14,241
76.45
51,7442.50 to <10.00
40,737
1,342
94.02
9,364
10.00 to <100.00
29,001389
100.0025,293100.00 (Default)
3,551,720
600,03977.41
3,213,563
Sub-total
Equities (PD/LGD approach)
3,704,926
21,305100.003,726,232
0.00 to <0.15
0.15 to <0.25
90,06790,0670.25 to <0.50
43,662
43,6620.50 to <0.75
40,38740,3870.75 to <2.50
113,095
113,095
2.50 to <10.00
915
915
10.00 to <100.00
5,710
5,710
100.00 (Default)¥3,998,766¥21,305
100.00 ¥4,020,072
Sub-total

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.27
0.50
1.46
3.30
15.16
100.00
0.00

0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.3

37.99
37.97
37.97
37.44
37.97
8.17
28.17
37.99

1.6
3.5
1.1
1.6
2.6
1.1
1.2
1.6

¥633,434
4,931
35,07622,0581,068
83
7696,660

0.94
52.77
45.76
76.59
112.71
38.66
37.33
1.03

¥828
9
146
158
11
2
4
1,163

¥/
/
/
/
/
/
/
/
792

0.06
0.27
0.50
1.00
3.13
100.00
0.16

0.3
0.0
0.0
0.0
0.0
0.0
0.5

37.38
34.08
36.75
36.73
40.38
96.57
37.26

1.4
1.5
1.4
1.4
2.2
4.9
1.4

693,677
45,560103,707
102,51228,335363
974,158

16.22
28.97
49.14
73.93
117.84
28.25
20.26

1,011
123
378
504
304
1,214
3,536

/
/
/
/
/
/
/
/
2,408

0.07
0.27
0.50
1.18
3.86
15.16
100.00
0.99

6.5
5.3
3.8
5.2
1.9
0.7
0.7
24.3

37.97
33.22
33.57
31.97
32.58
28.23
38.96
36.78

2.4
2.6
2.7
2.6
3.0
2.2
2.1
2.5

11,485,859
1,978,399
2,073,698
3,145,660
2,026,392
574,489
127,172
21,411,672

21.79
39.93
54.45
69.61
105.94137.1230.67
31.15

15,7864,556
6,434
17,16924,92017,943
151,385
238,196

/
/
/
/
/
/
/
/
162,210

0.07
0.27
0.50
1.19
3.25
15.16
100.00
5.83

0.0
3.0
3.3
5.9
1.7
0.7
0.6
15.4

31.64
24.31
23.91
20.75
19.05
17.98
42.41
22.89

2.3
2.8
3.0
3.4
3.7
3.1
2.2
3.2

14,696142,029
229,938
491,630
214,824
106,804
43,356
1,243,280

14.91
25.26
33.27
40.07
48.12
76.12
31.62
37.64

24
378
831
3,124
2,802
3,828
54,67865,667

/
/
/
/
/
/
/
/
44,718

0.09
0.27
0.50
1.02
4.38
15.16
100.00
1.13

0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.6

36.49
38.49
43.42
38.49
38.19
37.97
64.04
37.64

4.3
4.1
4.1
4.5
3.5
3.9
4.2
4.2

707,374
219,941
185,680
335,100
68,274
18,836
12,473
1,547,680

32.06
58.92
86.00
100.99131.94201.13
49.31
48.16

759
397
471
1,312
867
539
15,201
19,549

/
/
/
/
/
/
/
/
13,313

0.05
0.27
0.50
1.15
3.76
15.16
100.00
0.33

1.0
0.5
0.3
0.2
0.0
0.0
0.1
2.3

90.00
90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0

3,795,623
142,515
89,021
107,668
425,736
5,851
64,245¥4,630,663

101.86158.23203.88266.58376.44638.79
1,125.00
115.18

/
/
/
/
/
/
/
/
¥/

/
/
/
/
/
/
/
/
¥/

272

Quantitative Disclosure on Credit Risk under IRB approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

CR6-(Continued)(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
i
j
Original
OffEADon-balance balance
post CRM
RWA
sheet
sheet Average
andAverage Number Averagedensitygross exposures CCF
PDofLGD Average
postPD scale
exposure pre CCF
(%)
(%)
CCF
(%)
obligors(%)
maturity RWA
As of March 31, 2018
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,148,219¥701,913
75.14 ¥2,671,876
0.08
0.9
38.23
1.9
¥472,908
17.69
1 0.00 to <0.15
2 0.15 to <0.25
129,026
94,17577.74
202,240
0.27
0.2
37.89
2.0
80,62239.86
3 0.25 to <0.50
102,644
31,136
79.27
127,326
0.50
0.1
37.89
1.8
66,99752.61
4 0.50 to <0.75
83,54628,52877.42
105,635
1.04
0.1
37.88
2.3
80,95676.63
5 0.75 to <2.50
122,256
30,434
75.58
144,774
5.78
0.0
37.97
1.4
177,211122.406 2.50 to <10.00
1,163
18,48475.71
15,159
15.16
0.0
37.97
1.6
27,179179.28
7 10.00 to <100.00
1,720
1,720
100.00
0.0
93.53
1.0
521
30.29
8 100.00 (Default)
2,588,578
904,67375.65
3,268,735
0.51
1.6
38.20
1.9
906,398
27.72
9 Sub-total
Purchased receivables (Retail) - Default Risk Equivalent
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables (Dilution Risk Equivalent)
895,557
16,505100.00912,062
0.02
0.1
7.96
166,81718.29
1 0.00 to <0.15
2 0.15 to <0.25
11,735
11,735
0.27
0.0
37.97
3,654
31.13
3 0.25 to <0.50
17,22917,229
0.50
0.0
37.31
7,609
44.16
4 0.50 to <0.75
97,2405,881
100.00103,122
1.39
0.0
19.96
69,05966.96
5 0.75 to <2.50
11,811
11,811
3.03
0.0
8.82
11,11694.11
6 2.50 to <10.00
923
923
15.16
0.0
37.97
1,553
168.25
7 10.00 to <100.00
2,139
2,139
100.00
0.0
47.79
1,087
50.85
8 100.00 (Default)
1,036,637
22,387100.001,059,024
0.41
0.1
10.06
260,898
24.63
9 Sub-total
Retail – qualifying revolving retail exposures (QRRE)
0
0.13
0.0
78.04
/
0
6.01
1 0.00 to <0.15
33
0.18
0.4
77.05
/
2
7.79
2 0.15 to <0.25
60
0.34
2.0
78.04
/
7
12.85
3 0.25 to <0.50/
4 0.50 to <0.75
246,700
882,61715.67
385,057
2.31
484.0
78.03
/
214,81655.78
5 0.75 to <2.50
171,502904,560
8.86
251,550
4.06
1,838.978.04/
204,438
81.27
6 2.50 to <10.00
30,33015,70738.33
36,349
18.49
111.4
78.04
/
64,164176.51
7 10.00 to <100.00
547
1,389
12.13
710
100.00
2.1
71.86
/
564
79.48
8 100.00 (Default)
449,080
1,804,276
12.45
673,761
3.94
2,439.0
78.03/
483,995
71.83
9 Sub-total
Retail – Residential mortgage
1,753,094
1,788,294
0.07
134.0
29.40
/
98,8805.52
1 0.00 to <0.15
1,555,463
1,557,206
0.19
98.7
31.48
/
196,694
12.63
2 0.15 to <0.25
1,995,206
1,996,178
0.35
137.5
33.88
/
411,553
20.61
3 0.25 to <0.50
1,913,740
106,001
97.52
1,976,720
0.66
176.4
36.68
/
684,89734.64
4 0.50 to <0.75
1,540,512869
100.001,543,115
1.08
118.2
36.58
/
736,80447.74
5 0.75 to <2.50
78,221
2,795
100.0081,793
9.58
6.9
37.92
/
138,206
168.97
6 2.50 to <10.00
31,3082,477
100.0033,807
47.05
3.2
40.24
/
66,608197.027 10.00 to <100.00
67,581
1,372
100.0068,903100.004.3
45.19/
32,53347.21
8 100.00 (Default)
8,935,128
113,51697.68
9,046,019
1.48
679.7
33.80
/
2,366,178
26.15
9 Sub-total
Other retail20
307,294
0.05
41.4
43.50
/
19,0346.19
1 0.00 to <0.15
255,690
0.18
4.5
43.16
/
9,068
16.28
2 0.15 to <0.25
121,031155
100.00137,772
0.34
4.1
46.55
/
37,29127.06
3 0.25 to <0.50
188,160
550
75.18
184,968
0.69
65.9
26.93
/
41,51422.44
4 0.50 to <0.75
1,017,097
3,472
78.21
940,438
1.36
26.4
53.29
/
528,41956.18
5 0.75 to <2.50
398,879
1,897
63.40
174,889
6.29
16.0
22.22
/
57,98133.15
6 2.50 to <10.00
98,4279,870
51.83
49,497
18.27
11.8
31.29
/
32,25365.16
7 10.00 to <100.00
73,064
3,023
94.67
58,600100.002.9
44.01/
25,89744.19
8 100.00 (Default)
1,896,684
18,97065.72
1,909,152
4.89
173.4
44.68
/
751,460
39.36
9 Sub-total
70.60 ¥167,238,965
0.72
3,337.8
38.21
2.20 ¥35,273,045
21.01
Total (all portfolios) ¥145,521,084 ¥30,812,518

k

l

EL

Provisions

¥818
212
242
419
3,180
873
1,567
7,314

¥/
/
/
/
/
/
/
/
4,980

-

/
/
/
/
/
/
/
/
-

411
12
32
463
140
53
935
2,050

/
/
/
/
/
/
/
/
/

0
0
0
6,961
7,973
5,245
465
20,647

/
/
/
/
/
/
/
/
14,060

396
984
2,400
4,785
6,054
2,969
6,406
28,53752,535

/
/
/
/
/
/
/
/
35,776

75
43
224
327
5,988
2,149
3,156
23,72235,688¥446,348

/
/
/
/
/
/
/
/
24,303¥302,564

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. On-balance sheet exposures, pre-CCF and pre- CRM off-balance sheet exposures, and the average CCF are allocated to the PD ranges based on pre- CRM PD
estimates.
3. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.

273

Quantitative Disclosure on Credit Risk under IRB approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(B) CR8:RWA flow statements of credit risk exposures under IRB approach(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2018

¥40,008.8
988.2(2,253.8)(224.1)294.4(29.9)¥38,783.5

Asset size
Portfolio quality
Model updates
Methodology and policy
Acquisitions and disposals
Foreign currency fluctuations
Other

Breakdown of changes during thisreporting period

RWA as of March 31, 2019

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Asset size corresponds to the amount of variation in RWA arising from changes in book size and composition, increased assets resulting from origination of new
businesses, decreased assets due to matured receivables, etc.
3. Portfolio quality corresponds to the amount of variation in RWA arising from changes in obligor’s and facilities’ ratings, changes in collateral values and guarantees, etc.
4. Methodology and policy corresponds to the amount of variation in RWA arising from methodological changes in calculations driven by regulatory policy changes including
revisions to existing regulations.
5. Foreign currency fluctuations correspond to the amount of variation in RWA arising from the effect of fluctuations in foreign exchange rates involving exposures totransactions denominated in foreign currencies.

(C) CR9: IRB - Backtesting of Probability of Default (PD) per Portfolio(%, the number of data)ab

Portfolio

PD
Range
(%)

As of March 31, 2019
d
e

c

i
AverageArithmeticof which:
Weighted
historical
average
Defaulted
newaverageannual
PD byobligors defaulted
As of
As of
PD
default
obligors
March
March in the year obligors
(%)
rate
(%)
in the year
31, 2018 31, 2019(%)

External rating equivalent

0.00 to<0.10
0.10 to<0.20
Corporate, 0.20 to
<1.00
etc.
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
Retail –0.10 to<0.20
qualifying
torevolving retail 0.20
<1.00
exposures
1.00 to<5.00(QRRE)
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –to
Residential 0.20
<1.00
mortgage 1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Other
0.20 to<1.00
retail1.00 to<5.00
5.00 to<100.00f
Number ofobligorsgh

Moody’
Fitch
s

R&I

JCR

AAA～A-

Aaa～A3 AAA～A-

AAA～A-

AAA～A-

0.05

0.05

2,404

2,381

-

-

-

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.13

0.14

5,295

5,295

2

-

0.03

S&P

BBB+～BBB-

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.48

0.51

21,25921,605

44

1

0.22

B+～B-

2.24

2.15

9,037

8,453

115

2

1.29

B1～B3

B+～B-

B+～B-

B+～B-

10.79

13.08

2,144

1,882

140

2

7.77

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

2.40

2.81

376,296

363,146

7,834

913

1.88

/

/

/

/

/

10.75

6.73

109,372

115,560

11,704

709

8.95

/

/

/

/

/

0.06

0.06

96,887

87,230

38

-

0.02

/

/

/

/

/

0.15

0.15

78,36278,900

39

1

0.06

/

/

/

/

/

0.53

0.53

396,443

385,619

871

5

0.24

/

/

/

/

/

1.30

1.26

75,66482,718

363

-

0.51

/

/

/

/

/

21.24

22.41

8,551

9,024

961

-

10.77

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

0.77

0.67

389,084

273,543

1,343

25

0.32

/

/

/

/

/

2.38

3.20

273,668

207,228

1,508

12

0.48

/

/

/

/

/

18.47

22.85

47,23934,136

2,579

5

4.46

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC～C

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Exposures to sovereign and bank is included in the category of corporate, etc. because their obligors can be presumably specified. Likewise, exposures to corporate(except specialized lending), specialized lending, equity and purchased receivables (corporate) is included in the category of corporate, etc. because the data of therespective portfolios is not separately used for PD estimation. Since purchased receivables (retail) account for a small portion of the entire exposure, they areincorporated with any one of QRRE, residential mortgage or other retail depending on the portfolio classification of the purchased receivables.
3. PD Range indicates the ranges of PD estimates for multiple consolidated internal ratings groups.
4. The following shows the percentages accounted for by the respective portfolios among the credit RWA calculated by the AIRB: Corporate, etc. : 75%, QRRE: 1%,
Residential mortgage : 7%, Other retail : 2%
5. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.
6. The back testing covers the period from September 30, 2017 to September 30, 2018.

274

Quantitative Disclosure on Credit Risk under IRB approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(%, the number of data)ab

Portfolio

PD
Range
(%)

As of March 31, 2018
d
e

c

i
AverageArithmeticof which:
Weighted
historical
average
Defaulted
newaverageannual
PD byobligors defaulted
As of
As of
PD
default
obligors
March
March in the year obligors
(%)
rate
(%)
in the year
31, 2017 31, 2018(%)

External rating equivalent

0.00 to<0.10
0.10 to<0.20
Corporate, 0.20 to
<1.00
etc.
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 toRetail –<0.20
qualifying
0.20 torevolving retail <1.00
exposures
1.00 to(QRRE)<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –0.20 toResidential <1.00
mortgage 1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Other
0.20 to<1.00
retail1.00 to<5.00
5.00 to<100.00f
Number ofobligors

g

h

S&P

Moody’
Fitch
s

R&I

JCR

AAA～A-

Aaa～A3 AAA～A-

AAA～A-

AAA～A-

0.05

0.06

2,330

2,395

-

-

-

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.15

0.15

5,072

5,272

2

-

0.03

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.48

0.52

20,736

21,267

52

-

0.21

B+～B-

B+～B-

2.06

2.15

9,832

9,041

112

2

1.29

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC～C

12.59

12.86

2,500

2,144

197

4

8.02

BBB+～BBB-

B1～B3

B+～B-

B+～B-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

2.35

2.80

316,263

338,973

5,789

1,004

1.68

/

/

/

/

/

10.17

6.24

137,011

146,695

12,315

1,232

7.85

/

/

/

/

/

0.05

0.05

77,64971,310

20

-

0.02

/

/

/

/

/

0.14

0.14

101,477

103,939

44

-

0.07

/

/

/

/

/

0.53

0.53

413,756

395,746

966

3

0.28

/

/

/

/

/

1.26

1.22

62,37475,664

303

-

0.57

/

/

/

/

/

19.03

20.36

11,209

8,551

1,014

-

11.81

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

0.80

0.66

429,469

340,586

1,333

27

0.31

/

/

/

/

/

2.20

3.08

440,253

322,169

2,020

180

0.73

/

/

/

/

/

17.74

22.92

73,04447,241

3,113

13

4.23

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Exposures to sovereign and bank is included in the category of corporate, etc. because their obligors can be presumably specified. Likewise, exposures to corporate(except specialized lending), specialized lending, equity and purchased receivables (corporate) is included in the category of corporate, etc. because the data of therespective portfolios is not separately used for PD estimation. Since purchased receivables (retail) account for a small portion of the entire exposure, they areincorporated with any one of QRRE, residential mortgage or other retail depending on the portfolio classification of the purchased receivables.
3. PD Range indicates the ranges of PD estimates for multiple consolidated internal ratings groups.
4. The following shows the percentages accounted for by the respective portfolios among the credit RWA calculated by the AIRB: Corporate, etc. : 76%, QRRE: 1%,
Residential mortgage : 7%, Other retail : 3%
5. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.
6. The back testing covers the period from September 30, 2016 to September 30, 2017.

275

Quantitative Disclosure on Credit Risk under IRB approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(D) CR10: IRB -Specialized Lending under the Slotting Criteria Approach and Equity Exposures under the Marketbased Approach etc.
(Millions of yen, %)As of March 31, 2019
a
b
c
d
e
f
g
h
i
Specialized lending under slotting criteria approach
Other than HVCRE
OnOffExposure amount
Regulatory
Remainingbalance balance
RW
categories
maturity
sheet
sheet
PF
OF
CF
IPRE
amount amountLess than 2.5 years¥¥- 50%¥¥¥¥Equal to or more
Strong- 70%
24,98324,983than 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good
Satisfactory
Weak
Default
Total
Regulatory
categories
StrongGood

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures towhich a risk weight of
100% is appliedl

RWA

Expected
losses¥-¥-¥-24,983

17,488

99

-

-

70%

-

-

-

-

-

-

-

-

90%

-

504

-

-

504

454

4

3,735
9,962
3,081
42,267

10,422 115%
- 250%
10,422-

HVCRE

11,553
10,1099,312
56,463--

11,553
10,1099,312
56,463

13,28625,27356,502

323
808
4,656
5,892

OnOffbalance balance
RW
sheet
sheet
amount amountLess than 2.5 years
8,449
- 70%

Satisfactory
Weak
Default
Total

Total

k

504

Remainingmaturity

Equal to or morethan 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

j72,936

ExposureamountExpected
losses

RWA

8,449

5,914

33

83,601

79,421

334

14,206

95%

2,010

-

95%

2,010

1,910

8

8,654

18,530 120%

22,55527,06690

116,618

114,313466

ExposureamountRWA- 140%- 250%
92,05032,736Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amount721,228

30,289 300%

751,517 2,254,553

57,192

1,694 400%

58,463233,852

-

-

-

-

-

778,420
31,984Equity exposures to which a risk weight of 100% is applied

4,543- 100%

809,980 2,488,405
4,543

4,543

Notes:1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. PF, OF, CF and IPRE respectively stand for project finance, object finance, commodity finance and income-producing real estate.

276

Quantitative Disclosure on Credit Risk under IRB approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %)As of March 31, 2018
a
b
c
d
e
f
g
h
i
Specialized lending under slotting criteria approach
Other than HVCRE
OnOffExposure amount
Regulatory
Remainingbalance balance
RW
categories
maturity
sheet
sheet
PF
OF
CF
IPRE
amount amountLess than 2.5 years¥¥- 50%¥¥¥¥Equal to or more
Strong
24,919- 70%
24,919than 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good
Satisfactory
Weak
Default
Total
Regulatory
categories
Strong-Satisfactory
Weak
Default
Total

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures towhich a risk weight of
100% is applied

RWA

Expected
losses¥-¥-¥-24,91917,443

99

-

-

-

70%

-

-

90%

-

-

-

-

-

-

-

- 115%- 250%
-

HVCRE

3,464
11,147
9,312
48,844--

3,464
11,147
9,312
48,844

3,984
27,86849,296

97
891
4,656
5,744

OnOffbalance balance
RW
sheet
sheet
amount amountLess than 2.5 years
2,698
700 70%-l-

Remainingmaturity

Equal to or morethan 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good

-

Total

k

3,464
11,1083,081
42,574-jExposureamountExpected
losses

RWA

3,225

2,257

12

55,022

16,356

95%

67,29063,925

269

13

-

95%

13

13

0

3,970 120%

26,25031,500105

96,77997,696387

23,260- 140%- 250%
80,99621,026Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amountExposureamountRWA

841,626

68,014 300%

909,640 2,728,922

58,551

1,510 400%

59,683

238,735

-

-

-

-

-

900,177
69,524Equity exposures to which a risk weight of 100% is applied

4,415- 100%

969,324 2,967,658
4,415

4,415

Notes:1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. PF, OF, CF and IPRE respectively stand for project finance, object finance, commodity finance and income-producing real estate.

277

Quantitative Disclosure on Credit Risk under IRB approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(5) Credit Risk under Standardized Approach(i) Status of portfolios to which the standardized approach is applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which thestandardized approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and S&P Global Ratings
overseas.
We apply a risk weight of 100% for all of our corporate exposure.
(ii) Quantitative disclosure on credit risk under standardized approach(A) CR5: Standardized Approach - Exposures by Asset Classes and Risk Weights(Millions of yen)

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Risk weight
Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central
banksBank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for
Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business
operators conducting the type I
financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporations, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

0%

As of March 31, 2019
b
c
d
e
f
g
h
i
j
Credit exposures amount (post CCF and post-CRM)
10% 20% 35% 50% 75% 100% 150% 250% 1,250%

k
Total

¥116
465,728
46,903¥-¥39,562¥-¥123,316¥-¥55,915

¥-

¥-

¥-

¥116
465,728
265,699

1,043
-

-

1,103

-

61

-

28

-

-

-

1,043
1,194

6
-

1

-

-

-

-

-

-

-

-

6
1

-

2,328
-

238,960-

45,431-62,702

-

-

-

2,328
347,093

-

-

-

-

87

- 1,479,276
17

21

-

- 1,479,276
126

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥- ¥1,597,940

¥21

¥-

¥- ¥2,562,615¥513,798¥2,330 ¥279,627¥- ¥168,897

Note: Counterparty credit risk exposures, credit risk related to securitization transactions, and fund exposures are excluded from the amount of credit risk exposures above.

278

Credit Risk under Standardized Approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Risk weight
Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central
banksBank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for
Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business
operators conducting the type I
financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporations, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

0%

As of March 31, 2018
b
c
d
e
f
g
h
i
j
Credit exposures amount (post CCF and post-CRM)
10% 20% 35% 50% 75% 100% 150% 250% 1,250%

k
Total

¥10,169
12,698,108
75,651¥-¥34,791¥-¥64,684¥-¥75,963¥-¥-¥- ¥10,169- 12,698,108- 251,091

1,089
-

-

7,731

-

38

-

16

-

-

-

1,089
7,786

2,983
-

36,192

-

-

-

-

-

-

-

-

2,983
36,192-

523,138-

703,187-

19,773-48,083---523,138
771,044

-

-

-

-

60

- 1,484,951
12

27

-

- 1,484,951
100

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥12,788,002 ¥559,331 ¥745,710¥-¥84,557¥- ¥1,609,027

¥27

¥-

¥- ¥15,786,656

Note: Counterparty credit risk exposures, credit risk related to securitization transactions, and exposures which are underlaid with the plural number of assets and transactions are
excluded from the amount of credit risk exposures above.

279

Credit Risk under Standardized Approach2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(6) Credit Risk Mitigation Techniques(i) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, weevaluate the value of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also
conduct periodical subsequent re-evaluations. Furthermore, we monitor any concentration of risks in a particularclassification, keeping an eye on the concentration of collateral type and/or of credit risks in particular companies
including indirect credit exposure such as guarantees. When calculating the credit risk weighted assets for capital
adequacy ratio regulations, the effect of credit risk mitigation through financial collateral (mainly deposits and securities),
other collateral (mainly real estate) and guarantees by "sovereign, banks or corporations above a certain credit rating" isreflected.
(ii) Quantitative Disclosure on Credit Risk Mitigation Techniques
Counterparty risk exposures, securitization exposures, and regarded-method exposures are excluded from the amountof credit risk exposures below.
(A) CR3: Credit Risk Mitigation Techniques - Overview(Millions of yen)

a

1
2
3
4
5

Loans
Debt securities
Other on balance debt assets
Total (1+2+3)
Of which defaulted

Exposures
unsecured¥60,910,902
22,289,542
49,191,702¥132,392,148
261,864

As of March 31, 2019bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥15,856,184¥6,365,790¥7,169,389¥3,137
381,561
212,479
95,79097,131
3,037
78,503¥16,334,877¥6,581,306¥7,343,683¥3,137220,226
101,305
47,220-Notes: 1. Other on-balance debt assets include deposits, call loans, bills purchased, monetary claims bought, money held in trust, and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.

(Millions of yen)

a

1
2
3
4
5

Loans
Debt securities
Other on balance debt assets
Total (1+2+3)
Of which defaulted

Exposures
unsecured¥64,898,669
25,670,926
51,653,415¥142,223,012
461,445

As of March 31, 2018bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥12,780,637¥5,990,412¥6,784,828¥5,397451,924
179,920
272,00344,607
5,016
39,591¥13,277,170¥6,175,349¥7,096,423¥5,397
192,214135,384
56,830-Notes: 1. Other on-balance debt assets include deposits, call loans, bills purchased, monetary claims bought, money held in trust, and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.

280

Credit Risk Mitigation Techniques2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) CR4: Standardized Approach - Credit Risk Exposure and Credit Risk Mitigation (CRM) Effects(Millions of yen, except percentages)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

a
b
Exposures before CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥116¥465,728
265,699
1,043-

As of March 31, 2019cdExposures post-CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥116¥465,728
265,699
1,043
-

e

f

¥125,486-

RWA
density
0.00
0.00
47.22
0.00

RWA

1,194

-

1,194

-

280

23.48

6
1
2,328
-

-

6
1
2,328
-

-

0
232
-

0.00
10.00
10.00
-

315,793

63,536315,325

31,768133,21038.37

1,274,106-

258,259-

1,274,106-

205,170-

1,479,220
-

99.99
-

126

-

126

-

93

73.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥2,326,144¥321,795¥2,325,677¥236,938¥1,738,523

67.84(Millions of yen, except percentages)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

281

Credit Risk Mitigation TechniquesabExposures before CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥10,169¥12,698,108
251,091
1,089-

As of March 31, 2018cd
Exposures post-CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥10,169¥12,698,108
251,091
1,089
-

e

f

¥115,264-

RWA
density
0.00
0.00
45.90
0.00

RWA

7,786

-

7,786

-

1,581

20.31

2,983
36,192
523,138--

2,983
36,192
523,138--100
19,531
-

0.00
0.27
3.73
-

770,920774

770,657387

198,60725.75

1,282,944-

261,731-

1,282,944-

202,006-

1,484,893
-

99.99
-

100

-

100

-

83

83.26

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥262,506 ¥15,584,262¥202,393¥1,820,063

11.52¥15,584,525

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(C) CR7: IRB - Effect on RWA of Credit Derivatives Used as CRM Techniques(Millions of yen)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Portfolios
Sovereign - FIRB
Sovereign - AIRB
Banks - FIRB
Banks - AIRB
Corporate (except Specialized lending) - FIRB
Corporate (except Specialized lending) - AIRB
Specialized lending - FIRB
Specialized lending - AIRB
Retail - qualifying revolving retail exposures (QRRE)
Retail - residential mortgage exposures
Other retail exposures
Equity - FIRB
Equity - AIRB
Purchased receivables - FIRB
Purchased receivables - AIRB
Total

As of March 31, 2019ab
Pre-credit
Actual RWA
derivatives RWA¥¥640,973
640,973
906,425
906,425
23,135,521
23,133,739
1,866,300
1,866,300
475,700
475,700
2,205,975
2,205,975
644,684
644,684
3,658,637
3,658,637
819,595
819,595¥34,353,814¥34,352,032

Portfolios
Sovereign - FIRB
Sovereign - AIRB
Banks - FIRB
Banks - AIRB
Corporate (except Specialized lending) - FIRB
Corporate (except Specialized lending) - AIRB
Specialized lending - FIRB
Specialized lending - AIRB
Retail - qualifying revolving retail exposures (QRRE)
Retail - residential mortgage exposures
Other retail exposures
Equity - FIRB
Equity - AIRB
Purchased receivables - FIRB
Purchased receivables - AIRB
Total

As of March 31, 2018ab
Pre-credit
Actual RWA
derivatives RWA¥¥577,518
577,518
930,901
930,901
22,718,567
22,715,534
1,796,490
1,796,490
483,995
483,995
2,366,178
2,366,178
751,460
751,460
4,640,872
4,640,872
1,167,296
1,167,296¥35,433,279¥35,430,246(Millions of yen)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

(7) Equity investments in funds(Millions of yen)

Equity investments in funds - Look-through approach
Equity investments in funds - Mandate-based approach
Equity investments in funds - Simple approach (subject to 250% RW)
Equity investments in funds - Simple approach (subject to 400% RW)
Equity investments in funds - Fall-back approach
Total

As of March 31, 2019
Exposure¥2,111,716
149,567
1,559¥2,262,842

As of March 31, 2018
Exposure¥/////¥2,102,954

Notes: 1. "Total" as of March 31, 2018 is the amount of fund exposures that the regarded method is applied.
2. There are no fund exposures that the standardized approach is applied as of March 31, 2018.

282

Credit Risk Mitigation Techniques、Equity investments in funds

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Counterparty Credit Risk
(1) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
In managing the risk pertaining to counterparty credit risk (including central counterparty) in derivatives transactions andrepurchase transactions etc., we generally allocate risk capital together with loans, etc., (we take into account wrong
way risk for derivatives transactions). For derivatives transactions and repurchase transactions, in cases in which abilateral netting agreement is valid in light of the legal system of the relevant jurisdiction, we take its effect into
consideration. As to derivatives transactions with financial institutions, etc., we periodically, where necessary, deliver
and receive collateral to and from the counterparty based on the replacement cost to mitigate credit risk (collateralized
derivatives transactions). In conducting such transactions, there is a risk in which we may be required to provide
additional collateral in cases where our credit profile deteriorates.
(2) Quantitative Disclosure on Counterparty Credit Risk
(A) CCR1: Analysis of Counterparty Credit risk (CCR) Exposure by Approach(Millions of yen)

1
2
3
4
5
6

SA-CCR
Current Exposure Method
Expected Positive Exposure Method
Simple Approach for credit risk mitigation
Comprehensive Approach for credit
risk mitigation
VAR for SFTs
Total

As of March 31, 2019cdAlpha used forcomputingregulatory
EEPE
EAD
/
1.4
/
/
¥1,994,045
1.4
/
/

a

b

e

f

Replacement
cost¥170,412//

Potential
futureexposure¥200,077
/
/

/

/

/

/

10,176,903

793,601

/
/

/
/

/
/

/
/

/

¥1,843,210

EAD
post-CRM¥370,490
2,791,664
41,823RWA¥139,720
878,845
31,043(Millions of yen)

1
2
3
4
5
6

SA-CCR
Current Exposure Method
Internal Model Method
Simple Approach for credit risk mitigation
Comprehensive Approach for credit
risk mitigation
VAR for SFTs
Total

As of March 31, 2018cd
Alpha used forcomputingregulatory
EEPE
EAD
/
1.4
/
/
¥1,944,443
1.4
/
/

a

b

e

f

Replacementcost¥323,382//

Potential
futureexposure¥230,084
/
/

/

/

/

/

10,332,329

654,325

/
/

/
/

/
/

/
/

/

¥1,798,303

EAD
post-CRM¥535,507
2,722,221
763,521RWA¥216,424
887,843
39,710(B) CCR2: Credit Valuation Adjustment (CVA) Capital Charge(Millions of yen)

As of March 31, 2019a
EAD post-CRM
1
2
3
4
5

b
RWA

¥/
/
3,162,959¥3,162,959

Total portfolios subject to the Advanced CVA capital charge(i) VAR component (including the 3×multiplier)(ii) Stressed VAR component (including the 3×multiplier)
All portfolios subject to the Standardized CVA capital charge
Total subject to the CVA capital charge¥2,457,535¥2,457,535(Millions of yen)

As of March 31, 2018a
EAD post-CRM
1
2
3
4
5

Total portfolios subject to the Advanced CVA capital charge(i) VAR component (including the 3×multiplier)(ii) Stressed VAR component (including the 3×multiplier)
All portfolios subject to the Standardized CVA capital charge
Total subject to the CVA capital charge

283

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk¥//
3,552,645¥3,552,645b
RWA¥2,539,780¥2,539,780

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(C) CCR3: Standardized Approach - CCR Exposures by Regulatory Portfolio and Risk Weights(Millions of yen)

As of March 31, 2019
b
c
d
e
f
g
h
Credit exposures amount (post CCF and post-CRM)
10%
20%
50%
75%
100% 150% Other

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Risk weight
Regulatory portfolio
Japanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Other assets
Total

0%

i
Total

¥68,027822-¥-¥8,120
-

¥532
-

¥-

¥697
-

¥-

¥-

¥68,027
10,173---25,043

3,945

-

19

-

-

29,008

7,933
-

819
-

-

-

-

-

-

-

7,933
819
-

-

-

499,625

16,438-31,460--547,524¥76,784¥819¥532,788¥20,916¥-

686,087¥718,265¥-

686,087¥- ¥1,349,574(Millions of yen)

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Risk weight 0%
Regulatory portfolio
Japanese sovereigns and Bank of Japan
¥742,381
Foreign central sovereigns and central banks
4,065Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
15,357
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Other assets
Total¥761,805

As of March 31, 2018
b
c
d
e
f
g
h
Credit exposures amount (post CCF and post-CRM)
10%
20%
50%
75%
100% 150% Other¥-¥3,934
-

¥361
-

¥-

¥289
-

¥-

¥-

i
Total

¥742,381
8,650
-

-

6,843

1,504

-

12

-

-

8,361

1,076
-

-

-

-

-

-

-

15,357
1,076--

665,336

13,269-41,948--

720,554¥1,076¥676,114¥15,135¥-

679,087¥721,337¥-

679,087¥- ¥2,175,469

284

Quantitative Disclosure on Counterparty Credit Risk

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(D) CCR4: IRB - CCR Exposures by Portfolio and PD Scale(Millions of yen, %, number in the thousands,year)

1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

PD scale
Sovereign0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalBanks
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total
Corporate
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total

As of March 31, 2019cde
Number of
Average
Averagecounterparty LGD (%)
maturityaEAD
post-CRMb
AveragePD (%)¥8,930,341
500
3,527
43
8,934,414

0.00
0.27
0.91
3.06
0.00

0.0
0.0
0.0
0.0
0.0

38.01
38.01
38.01
38.01
38.01

4.6
2.9
4.5
1.3
4.6

¥118,295
240
3,388
42
121,967

1.32
48.11
96.04
97.12
1.36

1,290,871
22,216110794
196
1,314,189

0.05
0.29
1.07
3.06
100.00
0.07

0.3
0.0
0.0
0.0
0.0
0.4

38.01
37.98
37.74
38.01
96.59
38.01

2.3
1.5
1.2
0.5
5.0
2.3

266,984
10,872
73709
60
278,700

20.68
48.94
66.63
89.25
30.50
21.20

1,207,074
72,626
68,94022,183
3,476
1,436¥1,375,738

0.06
0.36
1.08
3.23
14.89
100.00
0.32

2.4
2.1
1.3
0.3
0.1
0.1
6.6

37.89
34.74
36.25
33.42
33.95
41.93
37.56

3.2
2.7
2.6
2.9
2.5
2.9
3.2

287,136
34,39752,73622,351
5,813
408¥402,844

23.78
47.36
76.49
100.75167.20
28.45
29.28

285

Quantitative Disclosure on Counterparty Credit Risk

f
RWA

g
RWA density(%)

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

CCR4-(Continued)

PD scaleSME
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Specialized Lending
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Retails
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Total (all portfolios)(Millions of yen, %, number in the thousands,year)aEAD
post-CRM

As of March 31, 2019cde
Number of
Average
Averagecounterparty LGD (%)
maturityb
AveragePD (%)fg
RWA density
(%)

RWA

¥828
13,396
10,122
5,463
1,123
605
31,538

0.10
0.35
1.13
3.08
14.89
100.00
3.50

0.0
1.3
1.1
0.3
0.0
0.0
2.9

19.39
23.89
22.40
21.83
28.90
32.29
23.28

3.3
3.3
3.6
4.0
3.1
3.1
3.5

¥105
4,208
4,667
3,056
1,404
215
13,656

12.71
31.41
46.11
55.94
125.0435.54
43.30

230,919
104,070
34,753
1,057
606
2,530
373,938

0.09
0.35
1.04
3.77
14.89
100.00
0.96

0.1
0.0
0.0
0.0
0.0
0.0
0.3

40.54
38.01
38.01
38.01
38.01
54.96
39.68

4.5
4.6
4.4
3.9
3.8
4.9
4.5

86,486
71,49834,152
1,383
1,208
1,504
196,232

37.45
68.70
98.26
130.80199.35
59.45
52.47

-

-

-

-

-

-

-

951
8
38
3
1,001
¥12,030,820

1.85
3.95
14.57
100.00
2.69
0.08

0.9
0.0
0.0
0.0
1.0
11.4

28.36
4.41
23.05
53.05
28.04
37.97

/
/
/
/
/
343
/
0
/
16
/
1
/
361
4.2 ¥1,013,762

36.04
6.36
43.25
48.18
36.12
8.42

286

Quantitative Disclosure on Counterparty Credit Risk

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %, number in the thousands,year)

1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

PD scale
Sovereign0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalBanks
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total
Corporate
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total

As of March 31, 2018cde
Number of
Average
Averagecounterparty LGD (%)
maturityaEAD
post-CRMb
AveragePD (%)¥9,213,266
419
682
2,944
84
9,217,397

0.00
0.27
0.50
1.28
6.34
0.00

0.0
0.0
0.0
0.0
0.0
0.0

37.97
37.97
37.97
37.97
37.97
37.97

4.5
2.3
3.0
4.9
1.6
4.5

¥40,100
180
440
3,291
108
44,120

0.43
42.94
64.52
111.77129.200.47

1,121,064
26,824
3,623
130
1,506
1,153,150

0.06
0.27
0.50
1.11
3.13
0.07

0.3
0.0
0.0
0.0
0.0
0.4

37.97
37.97
37.97
35.50
37.97
37.96

2.0
1.0
4.0
1.1
0.9
2.0

239,768
11,354
3,472
78
1,431
256,105

21.38
42.32
95.81
59.96
95.04
22.20

1,276,093
71,73945,44341,705
22,7792,328
1,301¥1,461,390

0.07
0.27
0.50
1.23
3.58
15.16
100.00
0.30

2.3
1.3
0.9
1.3
0.4
0.1
0.1
6.6

37.87
34.64
34.76
34.66
33.64
30.64
51.99
37.45

3.3
2.8
2.4
2.8
2.2
2.2
2.5
3.2

338,813
31,462
24,11732,92922,0503,445
446¥453,264

26.55
43.85
53.07
78.95
96.80
147.92
34.31
31.01

287

Quantitative Disclosure on Counterparty Credit Risk

f
RWA

g
RWA density(%)

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

CCR4-(Continued)

PD scaleSME
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Specialized Lending
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Retails
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Total (all portfolios)(Millions of yen, %, number in the thousands,year)aEAD
post-CRM

As of March 31, 2018cde
Number of
Average
Averagecounterparty LGD (%)
maturityb
AveragePD (%)fg
RWA density
(%)

RWA

¥147
7,928
5,688
6,843
4,172
999
559
26,340

0.07
0.27
0.50
1.16
3.16
15.16
100.00
3.69

0.0
0.5
0.5
0.9
0.2
0.0
0.0
2.5

14.18
21.80
22.58
23.24
23.43
22.64
40.35
22.98

2.7
3.2
3.3
3.2
3.8
3.0
3.5
3.3

¥12
1,954
1,892
3,136
2,612
984
126
10,718

8.33
24.64
33.27
45.82
62.61
98.44
22.51
40.69

209,425
36,81330,15934,864
2,966
1,194
2,768
318,190

0.10
0.27
0.50
0.96
3.60
15.16
100.00
1.21

0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.3

40.14
38.75
37.97
37.97
37.97
37.97
55.90
39.64

4.5
4.6
4.3
4.1
4.0
3.4
4.9
4.5

84,82923,601
23,13532,817
3,861
2,348
1,540
172,134

40.50
64.11
76.70
94.12
130.20196.71
55.66
54.09

-

-

-

-

-

-

-

834
13
35
3
886
¥12,177,355

1.95
4.03
13.39
100.00
2.83
0.08

0.8
0.0
0.0
0.0
0.9
10.9

28.77
4.41
21.68
36.77
28.16
37.91

/
/
/
/
/
/
/
/
/
4.1

307
0
14
1
323
¥936,667

36.86
6.37
40.29
40.68
36.55
7.69

(E) CCR5: Composition of Collateral for CCR Exposure(Millions of yen)

As of March 31, 2019abcdCollateral used in derivative transactions
Fair value of collateral received Fair value of posted collateral

1
2
3
4
5
6
7
8
9

Cash – domestic currency
Cash – other currencies
Domestic sovereign debt
Other sovereign debt
Government agency debt
Corporate bonds
Equity securities
Other collateral
Total

e
f
Collateral used in SFTs

Fair value ofcollateral
Segregated Unsegregated Segregated Unsegregatedreceived¥11,079¥570,998¥4,056¥883,792¥1,704,049
14,465,337
336,654336,381260,207374,001
3,183,024
19,336324,357
106,721377,249
9,482,818
105,414
91,743306,088
118,358
206,703226
1,102,381
20
24,33120
5,077
1,645,752
93,877
86,874
13,411¥472,731¥1,441,690¥677,094¥1,845,353 ¥31,803,478

Fair value of
postedcollateral¥3,730,404
11,540,222
2,674,023
11,223,557
61,1301,777,925
1,311,029
433,352¥32,751,646

288

Quantitative Disclosure on Counterparty Credit Risk

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

As of March 31, 2018abcdCollateral used in derivative transactions
Fair value of collateral received Fair value of posted collateral

1
2
3
4
5
6
7
8
9

Cash – domestic currency
Cash – other currencies
Domestic sovereign debt
Other sovereign debt
Government agency debt
Corporate bonds
Equity securities
Other collateral
Total

e
f
Collateral used in SFTs

Fair value ofcollateral
Segregated Unsegregated Segregated Unsegregatedreceived¥3,458¥481,886¥5,310¥803,536¥1,695,567
343,180
385,532
257,532
536,166
16,529,816
1,951,674
27,877
303,956
122,227
265,2907,744,419
48,20569,742
253,988
184,402620,4551,234
481
493,22655
49,09421
3,141
1,904,428
254,472
128,584
4,464
7,806
4,944
¥424,012¥1,552,490¥639,562¥1,926,066 ¥30,944,054

Fair value of
postedcollateral¥2,996,441
9,267,379
2,364,378
13,853,163
1,070,112
603,156
1,413,438
394,305¥31,962,377(F) CCR6: Credit Derivatives Exposures(Millions of yen)

As of March 31, 2019a
Protection bought
Notionals
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Other credit derivatives
Total notionals
Fair values
7 Positive fair value (asset)
8 Negative fair value (liability)

1
2
3
4
5
6

b
Protection sold

¥1,108,432
350,692
14,431
1,100¥1,474,656¥1,109,082
330,91323,471¥1,463,467

2,653(14,162)

16,814(1,969)(Millions of yen)

As of March 31, 2018a
Protection bought
Notionals
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Other credit derivatives
Total notionals
Fair values
7 Positive fair value (asset)
8 Negative fair value (liability)

1
2
3
4
5
6

289

Quantitative Disclosure on Counterparty Credit Riskb
Protection sold

¥1,120,511
178,477¥1,298,988¥1,142,042
159,997¥1,302,040

2,480(18,489)

20,313(868)

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(G) CCR7: RWA flow statements of CCR exposures under EPE method(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2018

Breakdown of changes during thisreporting period¥887.834.7(56.1)
12.1
0.2¥878.8Asset size
Credit quality of counterparties
Model updates (EPE only)
Methodology and policy (EPE only)
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2019

(H) CCR8: Exposures to Central Counterparties(Millions of yen)

As of March 31, 2019a
EAD (post-CRM)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Exposures to QCCPs (total)
Exposures for trades at QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions
Exposures to non-QCCPs (total)
Exposures for trades at non-QCCPs (excluding initial margin and default
fund contributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions

/

b
RWA
¥190,997¥654,350¥4,670145,239
83,138425,973
167,185
478,110
219,871
/

501
1,931
2,237
/
9,317
177,009
-

-

-

-

/
(Millions of yen)

As of March 31, 2018a
EAD (post-CRM)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Exposures to QCCPs (total)
Exposures for trades at QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions
Exposures to non-QCCPs (total)
Exposures for trades at non-QCCPs (excluding initial margin and default
fund contributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions

/

b
RWA
¥193,088¥676,795¥3,053438,891
115,828122,076
95,392531,371
332,443
34,112
/

425
2,035
593
/
10,967
162,394
16,672
-

-

-

-

/
-

290

Quantitative Disclosure on Counterparty Credit Risk

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Securitization Exposures
We classify transactions as securitization exposures based on two characteristics, “non-recourse” and“senior/subordinated structure,” pursuant to the definitions set forth in the FSA Notice No.20, etc.; provided that thetransactions do not include those which fall within specialized lending exposure.
(1) Summary of Risk Management Regarding Securitization Exposures

Our role in securitization transactions
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book.
(a) Securitization of our assets (“Securitization as originator”)
For the purposes of mitigating credit risk and credit concentration risk, controlling economic capital and responding to
the needs of our investors, etc., we engage in securitization transactions, the underlying assets of which include
mortgage loans and loans to our corporate customers. When conducting a securitization as an originator, we consider
such transactions from various aspects, including the effects of reduction of economic capital and improvement ofreturn on risk as well as the practical effects of risk transfers, and make a comprehensive judgment on the structure
and appropriateness of such transactions.
(b) Securitization program (ABCP/ABL) sponsor
As a means of supporting our customers in the securitization of their account receivables and notes receivables, etc.,
we retain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions),
and providing asset-backed commercial paper (ABCP) backup lines (off-balance-sheet transactions), as sponsor to
special purpose companies (in the form of Cayman Islands Corporations, etc.). In such cases, in addition to gaining
firm understanding of the actual risk profile through due diligence from the viewpoint of investors, we assign internalratings and make evaluations by assessing such transactions and carefully managing the exposure together withother direct loan assets.
(c) Investment in alternative credit risk assets (“Securitization Transactions as an Investor”)
We hold securitization products, such as ABS, CMBS, RMBS, and CDO, and resecuritization products, the underlying
assets of which are mainly RMBS and CDO, etc., for the purpose of investing in alternative credit risk assets that are
different from conventional credit risk assets in order to diversify our investment portfolio. The Risk Management
Committee, etc. set limits on the amount of investment for Securitization Transactions as an Investor, and we
maintain a stringent structure for management of such transactions. In addition, we implement stress tests based on
scenarios under the market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., asa means of financing for our customers. We endeavor to understand the actual risk profile, including the underlying
assets, and to appropriately disclose the risks and terms of the program to the customers who invest in the product.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash
advance) and provide interest rate swaps to securitization conduits.
One of our affiliated entities ,IBJ Leasing Company, Ltd, holds securitization products in which we are involved asoriginators or sponsors.
The securitization conduits included within the scope of consolidation are as follows:ROCK FIELD CORPORATION, FANTASTIC FUNDING CORPORATION, ARTEMIS FUNDING CORPORATION,
N&M FUNDING CORPORATION, Denshi Saiken Kaitori Godo Kaisha, JAPAN SECURITIZATION CORPORATION,
Allstar Funding Co., Ltd, SPARCS FUNDING CORPORATION, PERPETUAL FUNDING CORPORATION,
Working Capital Management Co. L.P., ALWAYS CAPITAL CORPORATION, HORIZON CAPITAL CORPORATION
There are no securitization conduits that provide credit enhancement beyond what is provided in agreements.

Overview of risk profile of securitization transactions and monitoring system
In addition to price fluctuation and market liquidity risks, securitization and resecuritization products are exposed to risks
related to default, recovery and granularity of underlying asset portfolio. The structure of these products also contains
risks related to the originators, the administrators, trustees and managers of the underlying assets.
To address these risks, we also analyze the structure in terms of the underlying assets and credit events. We monitor
the ability, quality and operating performance of originators and managers in charge of controlling the underlying assets
as well as covenant information and credit status of the parties related to the program. In addition, for resecuritization
products, we pay attention to the underlying assets of the underlying securitization products. We also assign internalratings to all products and review the rating at least once a year. If there is a change in the credit situations, we will
review the internal rating as appropriate. As mentioned above, we have established a system to comprehensively
understand the risk characteristics of securitization exposures and manage these exposures.
We conduct credit risk measurements on all credit transactions, including securitization transactions. Furthermore, we
carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Risk Management Committee, etc.

291

Summary of Securitization Exposure and Its Risk Management

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Response to Basel Framework
In calculating credit risk-weighted assets of securitization exposure, we apply the internal-ratings-based approach(“IRBA”) if we have sufficient information regarding all the underlying assets for IRBA. If IRBA cannot be applied to acertain asset and it has a rating obtained from an eligible external credit assessment institution, we apply the Externalrating-based approach (“ERBA”) We apply the standardized approach (“SA”) in other cases pursuant to the FSA NoticeNo. 20. We apply a risk weight of 1,250% under Basel III when neither IRBA, ERBA nor SA can be applied.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt thestandardized measurement method and calculate market risk equivalent amounts in connection with the specific risks of
securitization products based on risk weights according to ratings assigned by eligible external credit assessment
institutions pursuant to the FSA Notice No. 20.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I),
Japan Credit Rating Agency, Ltd. (JCR), Moody's Investors Service Inc. (Moody's), Standard & Poor's (S&P) and Fitch
Ratings, Ltd. in determining securitization exposure risk weight.
(2) Accounting Policies for Securitization Transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized,
their evaluation and accounting treatment are pursuant to "Accounting Standards Relating to Financial
Products"(Business Accounting Standards No. 10).
(3) Quantitative Disclosure on Securitization Exposures(A) SEC1: Securitization Exposures in the Banking Book by Type of Underlying Assets(Millions of yen)

As of March 31, 2019
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥¥¥- ¥978,411¥- ¥978,411 ¥1,481,218¥- ¥1,481,218
1 Retail (total) - of which
2606,346
606,346
residential mortgage
3credit card
290,688
290,688
70,91070,9104other retail exposures
687,722687,722803,962
803,962
re-securitization
5
6 Wholesale (total) - of which
59,109341,145
400,254
201,905
201,905 1,139,953- 1,139,953
759,109341,145
400,254
538,872
538,872
loans to corporates
8commercial mortgage
184
184
9
lease and receivables
189,125
189,125
477,959
477,959
10
other wholesale
12,77912,779122,936
122,93611
re-securitization(Millions of yen)

As of March 31, 2018
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥0¥¥0 ¥882,415¥- ¥882,415 ¥1,745,598¥- ¥1,745,598
1 Retail (total) - of which
200842,644842,644
residential mortgage
3credit card
219,986
219,986
93,976
93,9764other retail exposures
662,429
662,429
808,977
808,977
re-securitization
5
6 Wholesale (total) - of which
422,098
422,098
219,123
219,123
913,169
913,1697
422,098
422,098
398,149
398,149
loans to corporates
8commercial mortgage
210
210
9
lease and receivables
219,123
219,123
414,345414,345
10other wholesale
100,463
100,46311
re-securitization-

292

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items
for Securitization Exposure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) SEC2: Securitization Exposures in the Trading Book by Type of Underlying Assets(Millions of yen)

As of March 31, 2019
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥¥¥¥¥¥¥20,847¥¥20,847
1 Retail (total) - of which2
13,727
13,727
residential mortgage
3credit card
6,243
6,243
4
other retail exposures875
875
re-securitization
00
5
6 Wholesale (total) - of which
7,091
7,091
7
7,091
7,091
loans to corporates
8commercial mortgage
9lease and receivables
10
other wholesale
11
re-securitization(Millions of yen)

As of March 31, 2018
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥¥¥¥¥¥¥11,560¥¥11,560
1 Retail (total) - of which
2
4,287
4,287
residential mortgage
3credit card
2,956
2,956
4
other retail exposures
4,316
4,316
re-securitization
00
5
6 Wholesale (total) - of which
11,541
11,541
7
11,240
11,240loans to corporates
8commercial mortgage
9lease and receivables
301
301
10
other wholesale
11
re-securitization-

293

Quantitative Disclosure Items for Securitization Exposure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(C) SEC3: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements Bank Acting as Originator or as Sponsor(Millions of yen)ab

As of March 31, 2019
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥1,183,396
1 ≤20% RW
2 >20% to 50% RW
324,215
3 >50% to 100% RW
36,795
4 >100% to <1250% RW
35,4835 1250% RW
680
Exposure values (by regulatory approach)
1,579,891
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)402,373
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
32,18914 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%680

i¥922,808
262,437
36,795
17,383-¥922,808
262,437
36,795
17,383-¥735,148
193,235
34,918
15,108-¥187,660
69,202
1,876
2,275
-

¥-

¥-

¥-

1,239,426-

1,239,426-

978,411-

261,014----345,603-345,603-282,384-

63,219----27,648-27,648-22,590
-

5,057
-

-

-

-

j

k

As of March 31, 2019
l
m

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥260,587
1 ≤20% RW
2 >20% to 50% RW
61,777
3 >50% to 100% RW
4 >100% to <1250% RW
18,1005 1250% RW
680
Exposure values (by regulatory approach)
340,465
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)
56,76910 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
4,541
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%680¥260,587
61,777
18,100680¥-¥260,587
61,777
18,100
680

¥-

¥-

¥-

340,465680-

340,465
680

-

-

-

56,7698,500-

56,769
8,500

-

-

-

4,541
680

-

4,541
680

-

-

-

294

Quantitative Disclosure Items for Securitization Exposure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)ab

As of March 31, 2018
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥1,478,354 ¥1,075,137 ¥1,075,137
1 ≤20% RW
2 >20% to 50% RW
25,51525,51525,515
3 >50% to 100% RW
886
886
886
4 >100% to <1250% RW
18,2015 1250% RW
680
Exposure values (by regulatory approach)
136,048
136,048
136,048
6 IRB RBA (including IAA)
7 IRB SFA
1,386,908
965,490
965,490
8 SA/SSFA
9 1250%680
RWA (by regulatory approach)
11,093
11,093
11,093
10 IRB RBA (including IAA)
11 IRB SFA
110,473
77,763
77,76312 SA/SSFA
13 1250%
8,500
Capital charge after cap
940
940
940
14 IRB RBA (including IAA)
15 IRB SFA
9,368
6,594
6,594
16 SA/SSFA
17 1250%
720
-

i

j

k

¥859,674
22,741-¥215,463
2,773
886
-

¥-

¥-

¥-

117,049
765,366-

18,999200,124
-

-

-

-

9,722
58,417-

1,370
19,345
-

-

-

-

824
4,953
-

116
1,640
-

-

-

-

As of March 31, 2018
l
m

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥403,216
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
18,2015 1250% RW
680
Exposure values (by regulatory approach)
6 IRB RBA (including IAA)
7 IRB SFA
421,418
8 SA/SSFA
9 1250%680
RWA (by regulatory approach)
10 IRB RBA (including IAA)
11 IRB SFA
32,710
12 SA/SSFA
13 1250%
8,500
Capital charge after cap
14 IRB RBA (including IAA)
15 IRB SFA
2,773
16 SA/SSFA
17 1250%720

295

Quantitative Disclosure Items for Securitization Exposure¥403,216
18,201
680¥-¥403,216
18,201
680

¥-

¥-

¥-

421,418680-

421,418
680

-

-

-

32,7108,500-

32,710
8,500

-

-

-

2,773
720

-

2,773
720

-

-

-

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(D) SEC4: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements Bank Acting as Investor(Millions of yen)ab

As of March 31, 2019
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥2,407,832 ¥2,407,832 ¥2,407,832 ¥1,318,476 ¥1,089,355
1 ≤20% RW
2 >20% to 50% RW
20,04420,04420,04420,044
3 >50% to 100% RW
162,557
162,557
162,557
137,995
24,5614 >100% to <1250% RW
30,54230,54230,542
4,701
25,8405 1250% RW
194
194
194
0
194
Exposure values (by regulatory
approach)
1,462,952 1,462,952 1,462,952
867,244595,708
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
1,158,024 1,158,024 1,158,024
613,974544,050
8 Standardised Approach (SEC-SA)
9 1250%
194
194
194
0
194
RWA (by regulatory approach)332,708
332,708
332,708
216,665
116,042
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
304,189
304,189
304,189
123,610
180,579
12 Standardised Approach (SEC-SA)
13 1250%
2,433
2,433
2,433
0
2,433
Capital charge after cap
26,616
26,616
26,616
17,333
9,283
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
24,33524,33524,3359,888
14,44616 Standardised Approach (SEC-SA)
17 1250%
194
194
194
0
194

i

j

k

As of March 31, 2019
l
m

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5 1250% RW
Exposure values (by regulatory
approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

296

Quantitative Disclosure Items for Securitization Exposure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)ab

As of March 31, 2018
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5 1250% RW
Exposure values (by regulatory
approach)
6 IRB RBA (including IAA)
7 IRB SFA
8 SA/SSFA
9 1250%RWA (by regulatory approach)
10 IRB RBA (including IAA)
11 IRB SFA
12 SA/SSFA
13 1250%
Capital charge after cap
14 IRB RBA (including IAA)
15 IRB SFA
16 SA/SSFA
17 1250%¥2,535,058 ¥2,535,058 ¥2,535,058 ¥1,677,283
107,393
107,393
107,393
68,315
7,415
7,415
7,415
8,678
8,678
8,678
220
220
220
0

¥857,775
39,078
7,415
8,678
220

¥-

¥-

¥-

1,381,546
1,264,262
12,737220

1,381,546
1,264,262
12,737220

1,381,546
1,264,262
12,737220

929,913815,585100
0451,633
448,677
12,637
220

-

-

-

99,457
121,018
25,711
2,761

99,457
121,018
25,711
2,761

99,457
121,018
25,711
2,761

67,76869,25720
031,68951,761
25,691
2,761

-

-

-

8,433
10,262
2,056
220

8,433
10,262
2,056
220

8,433
10,262
2,056
220

5,746
5,873
1
0

2,687
4,389
2,055
220

-

-

-

i

j

k

As of March 31, 2018
l
m

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5 1250% RW
Exposure values (by regulatory
approach)
6 IRB RBA (including IAA)
7 IRB SFA
8 SA/SSFA
9 1250%RWA (by regulatory approach)
10 IRB RBA (including IAA)
11 IRB SFA
12 SA/SSFA
13 1250%
Capital charge after cap
14 IRB RBA (including IAA)
15 IRB SFA
16 SA/SSFA
17 1250%297

Quantitative Disclosure Items for Securitization Exposure

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Market Risk
See pages 109 to 111 for information regarding our market risk management structure, etc.
(1) Trading Activities
In the calculation of the market risk equivalent amounts under the regulatory capital requirements, the risk arising fromfluctuations in common factors across the market as a whole (e.g. foreign exchange and interest rates, etc.) is referred toas general market risk, and the risk arising from a deterioration in creditworthiness or market liquidity inherent in bonds
and stocks is referred to as specific risk. In principle, we calculate market risk equivalent amounts by determining bothgeneral market risk and specific risk by applying the Internal Models Approach (IMA) to the former and the standardized
approach to the latter, and by simply adding up both amounts. The Internal Models Approach is applied to tradingtransactions and calculated by adding up VAR and stressed VAR.
(A) MR1：Market risk under standardized approach

No.
1
2
3
4
5
6
7
8
9

(Millions of yen)
As of March 31, 2019
RWA
(Risk equivalent / 8%)

Interest rate risk (general and specific)
Equity risk (general and specific)
Foreign exchange risk
Commodity risk
Options
Simplified approach
Delta-plus method
Scenario approach
Securitization
Total

As of March 31, 2018
RWA
(Risk equivalent / 8%)¥536,232
288,604
53,471
187,430¥405,247
652,526
81,926167,631

37,307
69,297¥1,172,343

24,62874,438¥1,406,398(B) MR2:RWA flow statements of market risk exposures under IMA(Billions of yen)
A

No.
1a
1b
1c
2
3
4
5
6
7
8a
8b
8c

VAR

RWA as of March 31, 2018
Adjustment to RWA as of March 31, 2018
IMA values as of March 31, 2018
Change in risk levels
Model updates/changes
Breakdown of
Methodology and policychanges during
this reporting
Acquisitions and disposals
periodForeign currency fluctuations
Other
IMA values as of March 31, 2019
Adjustment to RWA as of March 31, 2019
RWA as of March 31, 2019¥269.0
3.02
89.0
27.6
2.8
30.3
(83.9)
66.0
3.92
259.0

B
Stressed
VAR¥794.8
3.72
213.6
29.3
5.7
23.2
(54.1)
217.9
2.76
602.8

C

D

E

F

IRC

CRM

Other

Total

¥-

¥-

/ ¥1,063.9
/
3.51
/
302.6
/
57.0
/
8.5
/
/
/
53.6
/
(138.0)
/
283.9
/
3.03
/
861.8

298

Trading Activities2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(C) MR3：IMA values for trading portfolios
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

(Millions of yen)
As of March 31, 2019

VAR (10 day 99%)
Maximum value
Average value
Minimum value
Period end
Stressed VAR (10 day 99%)
Maximum value
Average value
Minimum value
Period end
Incremental Risk Charge (99.9%)
Maximum value
Average value
Minimum value
Period end
Comprehensive Risk Capital Charge (99.9％)
Maximum value
Average value
Minimum value
Period end
Floor (standardized measurement method)

As of March 31, 2018¥27,114
7,939
4,800
5,280

¥13,059
7,496
4,978
7,120

61,302
21,544
12,623
17,43427,27018,882
13,131
17,093----

Notes: 1. The historical simulation method is used for the calculation of VAR and stressed VAR under the Internal Models Approach.
2. VAR is measured based on the observation period of 3 years (801 business days), a 99% confidence interval and a 1-day holding period. This 1-day VAR is scaled up to 10business day VAR using the square-root-of-time (√T) rule. We update historical data on a daily basis, in principle, and do not weight such data. When re-pricing instruments,
we use the full revaluation method, a sensitivity-based approach and the like. We consider change width or rate as market volatility of risk factors according to productattributes.
3. When measuring stressed VAR, the same measurement approach as VAR is used except for the observation period of 1 year (265 business days). As a stressed period,
we select a period which has an adequate length of time and is considered the most stressful under a certain set of criteria established based on the most recent portfolio.
4. When applying the internal model, we regularly verify the preconditions used for VAR measurement.

(D) MR4：Back testing results of IMA
As of March 31, 2019

As of March 31, 2018

Note: In the past 250 business days, the number of times loss exceeded VAR was 0 as of March 31, 2019 (0 as of March 31, 2018), and the VAR model (one-tailed confidence level of99%) is considered to have sufficient accuracy.

(2) Banking Activities
To comply with Interest Rate Risk in the Banking Book (IRRBB) requirements, we are required to calculate expectedchanges in the economic value of equity (ΔEVE) arising from banking activities and expected changes in net interest
income (ΔNII) from the reference date until the date no later than 12 months from the reference date under interest rate
shock scenarios (i.e. parallel up and downwards shifts in the yield curve and the like). ΔEVE and ΔNII change according tochanges in the banking portfolio.

299

Trading Activities、Banking Activities2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(D) IRRBB1：Interest rate riska

ΔEVE
As of March
As of March
31, 2018
31, 2019

No.
1
2
3
4
5
6
7

b

Parallel up
Parallel down
Steepener
Flattener
Short rate up
Short rate down
Maximum¥673,609
0357,183
83,150229,43164,517
673,609¥895,4160436,819
90,789321,141
69,824895,416e
As of March 31, 20198

Tier1 capital¥9,232,160(Millions of yen)d
ΔNII
As of March
As of March
31, 2019
31, 2018c¥(376,420)
459,808////459,808¥(274,475)
370,566////
370,566f
As of March 31, 2018¥9,192,244

Notes: 1. Decreased economic values and interest income are shown as positive values.
2. As for some of those current deposits and ordinary deposits whose interest rates are not changed at predetermined intervals and from which depositors can withdraw
money as desired on demand, we measure the interest rate risk associated with such deposits by applying an appropriate method after recognizing them as core deposits.
The average repricing maturities are 0.8 years for yen deposits and 0.2 years for dollar deposits respectively. The longest repricing maturities are 10.0 years for yen
deposits and 5.0 years for dollar deposits respectively. We measure interest rate risk associated with term deposits and loans in an appropriate manner by estimating theirearly redemption rates based on their historical prepayment and cancellation data.
3. When aggregating the respective ΔEVE of multiple currencies, we use the internal model that estimates the correlations between the key currencies based on historical
data. When aggregating the respective ΔNII of multiple currencies, we simply add their respective ΔNII.
4. For the calculation of ΔEVE and ΔNII, we set an appropriate interest rate and spread according to a certain discount rate and reference rate.
5. When making the calculations above, we use regulatory defined preconditions including an interest rate shock scenario.

■ Investment or Equity Exposure(1) Summary of Risk Profile, Risk Management Policies/ Procedures and StructureWith regard to equities, we manage default risk through our credit risk management structure and price fluctuation risk
through our market risk management structure. With regard to subsidiaries and related companies in which we invest,
we manage their risks on a consolidated basis, and manage them appropriately in accordance with their managementclassification. In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted
market prices are valued based on the average quoted market price over the month preceding the consolidated balance
sheet date; other securities which have readily determinable fair values are valued at the quoted market price if
available, or otherwise based on their reasonable value at the consolidated balance sheet date (cost of securities sold is
calculated primarily by the moving average method); and other securities the fair values of which are extremely difficult
to determine are stated at acquisition cost or amortized cost and determined by the moving average method.

■ Operational risk
(1) Summary of Operational Risk Management and Procedures
See pages 113 to 116 for a summary of our operational risk management policies, etc.
(2) Approach Used for the Measurement of Operational Risk Equivalent
We use the Advanced Measurement Approach for the calculation of operational risk equivalent. See pages 114 to 116 a
for the outline of the Advanced Measurement Approach. In the measurement of operational risk equivalent, we do notrecognize the risk mitigating impact of insurance. The following entities have adopted the Advanced Measurement
Approach:Mizuho Financial Group, Inc.; Mizuho Bank., Ltd., Mizuho Trust & Banking Co., Ltd.; Mizuho Securities Co., Ltd.; Mizuho
Information & Research Institute, Inc.; Mizuho Operation Service, Ltd.; Mizuho Credit Guarantee Co., Ltd.; Mizuho
Business Service Co., Ltd.; Mizuho Trust Operations Co., Ltd.; Mizuho Trust Systems Co., Ltd.; Mizuho Trust Business
Operations Co., Ltd.; Mizuho Trust Retail Support Co., Ltd.; Mizuho Bank Europe N.V.; and Mizuho International plc.

300

Banking Activities、Summary of Risk Profile, Risk Management Policies/ Procedures and Structure、Summary of Operational Risk Management andProcedures、Approach Used for the Measurement of Operational Risk Equivalent2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Composition of Leverage Ratio(Millions of yen, except percentage)
Correspon Correspon
ding line # ding line #on Basel on Basel
As of March 31, As of March 31,
III
III
Item
2019
2018
disclosure disclosure
template
template(Table 2) (Table 1)(1)
On-balance sheet exposures
On-balance sheet exposures before deducting adjustment items¥170,866,057¥178,888,103
1
Total assets reported in the consolidated balance sheet
1
200,792,226
205,028,300
1a
The amount of assets of subsidiaries that are not included in
1b
2
the scope of the leverage ratio on a consolidated basis (-)
The amount of assets of subsidiaries that are included in the scope
1c
7of the leverage ratio on a consolidated basis (except those includedin the total assets reported in the consolidated balance sheet)
The amount of assets that are deducted from the total assets reported in the
29,926,169
26,140,197
1d
3
consolidated balance sheet (except adjustment items) (-)
The amount of adjustment items pertaining to Tier1 capital (-)
2
7
1,338,983
1,685,871
Total on-balance sheet exposures(a) ¥169,527,074
3¥177,202,231(2)
Exposures related to derivative transactions
RC multiplied by 1.4 associated with derivatives transactions, etc.
/
4
Replacement cost associated with derivatives transactions, etc.
1,965,230
2,655,175
PFE multiplied by 1.4 associated with derivatives transactions, etc.
5/
Add-on amount associated with derivatives transactions, etc.
6,846,996
6,524,621
The amount of receivables arising from providing cash margin885,366
858,877in relation to derivatives transactions, etc.
The amount of receivables arising from providing collateral,
6
provided where deducted from the consolidated balance/
sheet pursuant to the operative accounting framework
The amount of receivables arising from providing cash
130,942
263,112
margin, provided where deducted from the consolidatedbalance sheet pursuant to the operative accounting framework
The amount of deductions of receivables (out of those arising7
from providing cash variation margin) (-)
The amount of client-cleared trade exposures for which a
8bank holding company acting as a clearing member is not//
obliged to make any indemnification (-)
Adjusted effective notional amount of written credit derivatives
1,469,165
1,319,146
9
The amount of deductions from effective notional amount of
1,207,805
10
1,350,813
written credit derivatives (-)
Total exposures related to derivative transactions(b)
11
4¥9,946,886¥10,413,128(3)Exposures related to repo transactions
The amount of assets related to repo transactions, etc.
12
15,575,762
12,431,400
13
The amount of deductions from the assets above (line 12) (-)
4,961,226
4,196,150
The exposures for counterparty credit risk for repo
457,242
521,72814transactions, etc.
The exposures for agent repo transactions
15//
Total exposures related to repo transactions, etc.
(c)
16
5¥11,071,778¥8,756,979(4)
Exposures related to off-balance sheet transactions
Notional amount of off-balance sheet transactions
17
41,344,892
50,668,428
The amount of adjustments for conversion in relation to off32,762,942
18
23,333,230
balance sheet transactions (-)
Total exposures related to off-balance sheet transactions(d)19
6¥18,011,661¥17,905,485(5)Leverage ratio on a consolidated basis
The amount of capital (Tier1 capital)(e)20
9,232,160
9,192,244
Total exposures ((a)+(b)+(c)+(d))(f) ¥208,557,401
21
8¥214,277,824
Leverage ratio on a consolidated basis ((e)/(f))
22
4.42%
4.28%

301

Composition of Leverage Ratio

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ TLAC Regulations(1) TLAC1: TLAC composition for G-SIBs (at resolution group level)(Millions of yen, except percentage)a
Basel III
Template
Items
As of March 31,
No.
2019
(1)
Preferred resolution strategy
The SPE (Single Point of Entry) resolution strategy is considered to be the preferred resolution strategy for
Mizuho Financial Group, Inc. (MHFG) and its subsidiaries.
More concretely, at the time of a stress, following the relevant authority's determination that one or more of thematerial sub-groups, i.e. Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co., Ltd.
have reached the point of non-viability, losses incurred to them would be passed to MHFG, the ultimate holding
company. While this could lead to a resolution of MHFG, the material sub-groups are expected to continue theirbusiness as usual under the Specified Bridge Financial Institution, etc. incorporated by the Deposit Insurance
Corporation of Japan (DICJ) to which MHFG transfers its business.
(2)
Regulatory capital elements of TLAC and adjustments(A)
1
Common Equity Tier 1 capital (CET1)¥7,390,058
Additional Tier 1 capital (AT1) before TLAC adjustments
2(B)
1,842,102
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties(C)
Other adjustments
4(D)
5
AT1 instruments eligible under the TLAC framework ((B)-(C)-(D))
1,842,102(E)(F)
6Tier 2 capital (T2) before TLAC adjustments
1,685,347(G)
7
Amortised portion of T2 instruments where remaining maturity > 1 year
(189,764)
8
T2 capital ineligible as TLAC as issued out of subsidiaries to third parties(H)
9
Other adjustments
189,401(I)(J)
10
T2 instruments eligible under the TLAC framework ((F)-(G)-(H)-(I))
1,685,711(K)
11
TLAC arising from regulatory capital ((A) + (E) + (J))
10,917,871(3)
Non-regulatory capital elements of TLAC
External TLAC instruments issued directly by the bank and subordinated to excluded (L)122,537,990
liabilities
External TLAC instruments issued directly by the bank which are not subordinated to/13
excluded liabilities but meet all other TLAC term sheet requirements
14of which: amount eligible as TLAC after application of the caps/
15
External TLAC instruments issued by funding vehicles prior to 1 January 2022/
(M)
16
Eligible ex ante commitments to recapitalise a G-SIB in resolution
1,447,489
17
TLAC arising from non-regulatory capital instruments before adjustments ((L) + (M)) (N)3,985,479(4)
Non-regulatory capital elements of TLAC: adjustments(O)
18
TLAC before deductions ((K) + (N))
14,903,350(P)
Deductions of exposures between MPE resolution groups that correspond to items
19
eligible for TLAC (not applicable to SPE G-SIBs)(Q)
20
Deduction of investments in own other TLAC liabilities
2,587
(R)
21
Other adjustments to TLAC
(S)
22
TLAC after deductions ((O)-(P)-(Q)-(R))
14,900,763(5)
Risk-weighted assets and leverage exposure measure for TLAC purposes(T)
23
Total RWA
57,899,567(U)
24
Leverage ratio exposure measure
208,557,401(6)
TLAC ratios and buffers
TLAC before deduction of CET1 specific buffer requirement (as a percentage of25
25.73%RWA) ((S)/(T))
25a
TLAC as a percentage of RWA
22.18%
26
TLAC as a percentage of leverage ratio exposure measure ((S)/(U))
7.14%
27
CET1 available after meeting the bank's minimum capital requirements
8.26%
28
3.55%
Total of bank CET1 specific buffer requirements
29of which: capital conservation buffer requirement
2.50%
of which: countercyclical buffer requirement30
0.05%
of which: bank G-SIB/D-SIB additional requirements
31
1.00%

302

TLAC Regulations

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) TLAC2:Material subgroup entity – creditor ranking at legal entity level(Millions of yen)Mizuho Bank (Non-consolidated)
Creditor ranking
Basel III
Items
Template
1
Is the resolution entity the creditor/investor?
2

Description of creditor ranking

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 6 that is perpetual securities

10
11

1
most junior
✓
-

2

3

✓
Eligible Tier 2 capital
Other internal
Additional Tier 1 Tier 2 capital instruments subject
Common
TLAC eligible
capital instruments instruments
to phase-out
equityinstruments
arrangements
3,690,389- 1,873,004- 1,168,772- 166,515 601,000 2,537,990- 10,037,671
3,690,389- 1,873,004- 1,168,772- 166,515 601,000 2,537,990- 10,037,671
3,690,389- 1,570,004- 1,002,257- 2,537,990- 8,800,641- 1,480,946- 1,480,946- 907,257- 946,034- 1,853,291

3,690,389-

Sum of
1 to 55
most senior
✓
-

4

✓

-

-

✓

-

-

95,000---111,010- 1,570,004

-

-

-

-

-

-

-

206.010- 5,260,393*1 : Additional Tier1 capital instruments include eligible Tier 1 capital instruments subject to phase-out arrangements issued by SPC (303,000 million yen)

(Millions of yen)Mizuho Trust & Banking (Non-consolidated)
Creditor ranking
Basel III
Template
1

Items
Is the resolution entity the creditor/investor?

1
most junior✓-

2✓
Eligible Tier 2 capital instruments
subject to phase-out arrangements
10,00010,000-Sum of 13
to 3
most senior✓
Other internal TLAC eligible
instruments- 272,874- 272,874- 262,874-

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity , but
excluding perpetual securities
Subset of row 6 that is perpetual securities

262,874
262,874
262,874
-

-

-

-

-

-

-

-

-

262,874

-

-

-

-

-

262,87410
11(Millions of yen)Mizuho Securities (Non-consolidated)
Creditor ranking

Basel III
Template
1

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity, but
excluding perpetual securities
Subset of row 6 that is perpetual securities

485,530
485,530
485,530-

21,286
21,286
21,286
-

-

-

-

-

-

-

-

485,530

21,286----

506,816

11

TLAC Regulations

Is the resolution entity the creditor/investor?

Sum of 13
to 3
most senior✓✓Long-term subordinated
Other internal TLAC
debt/Short-term subordinated debt
instruments
90,000- 596,816
90,000- 596,816- 506,816
2

2

10

303

Items

1
most junior✓-2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(3) TLAC3:Resolution entity – creditor ranking at legal entity level(Millions of yen)Mizuho Financial Group (Non-Consolidated)
Basel III
Template

Items

1

Description of creditor ranking

2
3
4
5
6
7
8

Total capital and liabilities net of credit risk mitigation (A)Subset of row 2 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) - (B))
Subset of row 4 that are eligible as TLAC
Subset of row 5 with 1 year ≤ residual maturity < 2 years
Subset of row 5 with 2 years ≤ residual maturity < 5 years
Subset of row 5 with 5 years ≤ residual maturity < 10 years
Subset of row 5 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 5 that is perpetual securities

910

Creditor ranking
Sum of 1 to 41423
most juniormost senior
Additional Tier 1
Tier 2 capital
Unsecured
Commoncapital instruments instruments
senior debts
equity3,453,440
1,873,000
1,335,287
2,542,714
9,204,443
4,724
4,724
3,453,440
1,873,000
1,335,287
2,537,990
9,199,718
3,453,440
1,873,000
1,335,287
2,537,990
9,199,178
333,030
1,480,946
1,813,976
907,257
946,034
1,853,291--

95,000111,010206,010

3,453,440

1,873,000--

5,326,440*1 :Additional Tier1 capital instruments include eligible Tier 1 capital instruments subject to phase-out arrangements issued by SPC (303,000 million yen)
*2 :Tier2 capital instruments include eligible Tier 2 capital instruments subject to phase-out arrangements issued by SPC (166,515 million yen)
*3 :Internal transactions are excluded from unsecured senior debts*4 :Excluded liabilities are recognized on a conservative basis in consideration of the materiality of the amounts■ Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer(1) CCyB1: Geographical distribution of credit exposures used in the countercyclical buffer(Millions of yen, except percentage)
As of March 31, 2019abcd
Risk-weighted assets
GeographicalCountercyclicalused in the computation CountercyclicalCountercyclicalbreakdown
buffer rateof the countercyclicalbuffer requirements
buffer amountbufferHong Kong SAR
2.50%
506,903//
Sweden2.00%
38,767//
United Kingdom
1.00%
1,294,630//
Subtotal/
1,840,301
/
/
Total
/
46,499,620
0.05%
28,949Notes: Credit risk-weighted assets used in the computation of the countercyclical buffer of each country or region are calculated based on wherecounterparties are located.
Some equity exposures, regarded-method exposures, securitization exposures and standardized approach portion which are difficult to calculate
based on the locations of counterparties, are calculated based on the country or region in which the reporting office is located.

304

TLAC Regulations、Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Indicators for Assessing Global Systemically Important Banks (G-SIBs)(1) GSIB1:Disclosure of G-SIB indicators
Category
1
2
3
4
5
6
7
8
9
10
11
12

Cross-jurisdictional
activity
SizeInterconnectedness
Substitutability /Financial institution
infrastructure
Complexity

Individual indicator
Cross-jurisdictional claims
Cross-jurisdictional liabilities
Total exposures
Intra-financial system assets
Intra-financial system liabilities
Securities outstanding
Assets under custody
Payment activity
Underwritten transactions in debt and equity markets
Notional amount of over-the-counter (OTC) derivatives
Level 3 assets
Trading and available for sale (AFS) securities

305

Indicators for assessing Global Systemically Important Banks (G-SIBs)(Millions of yen)
As of March 31, As of March 31,
2019
2018
50,199,293
45,183,039
32,082,253
31,932,945
209,896,384
215,963,696
12,963,646
12,910,458
17,843,309
22,558,264
27,330,280
24,854,249
74,795,019
140,047,358
4,597,783,411 5,991,927,800
15,764,776
16,938,132
1,325,053,254 1,168,293,975
1,941,045
1,901,418
10,073,336
10,838,346

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Sound Management of Liquidity Risk

■Liquidity Coverage Ratio
The information disclosed herein is in accordance with "Matters Separately Prescribed by the Commissioner of the Financial
Services Agency Regarding Status of Sound Management of Liquidity Risk , etc. pursuant to Article 19-2, Paragraph 1, Item 5,
Sub-item (e) , etc. of the Ordinance for Enforcement of the Banking Law (the FSA Notice No. 7 of 2015).
(In million yen, the number of data)
Item

For the three months ended March 31, 2019

High-Quality Liquid Assets
1

Cash Outflows
2
3
4
5
6
7
8
9
10
11

(1)

Total high-quality liquid assets (HQLA)(2)Cash outflows related to unsecured retail fundingof which, Stable depositsof which, Less stable deposits
Cash outflows related to unsecured wholesalefundingof which, Qualifying operational deposits

For the three months ended December 31, 2018//¥59,797,149¥59,793,333

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

47,424,967

3,791,658

47,036,243

3,745,286

13,620,177

408,605

13,756,053

412,681

33,804,789

3,383,053

33,280,189

3,332,604

69,158,857

38,700,654

66,465,073

36,647,857

0

0

0

0

of which, Cash outflows related to unsecured
wholesale funding other than qualifying
operational deposits and debt securities

62,841,393

32,383,190

61,463,843

31,646,626

of which, Debt securities

6,317,464

6,317,464

5,001,230

5,001,230/

1,038,595/

1,216,944

24,666,425

6,969,601

25,318,942

7,217,613

1,836,239

1,836,239

2,206,890

2,206,890

18,141

18,141

18,666

18,666

Cash outflows related to secured funding, etc
Cash outflows related to derivative transactions,etc. funding programs, credit and liquidity facilitiesof which, Cash outflows related to derivatives
transactions, etc

12of which, Cash outflows related to funding
programs

13of which, Cash outflows related to credit andliquidity facilities

22,812,044

5,115,220

23,093,384

4,992,056

14

Cash outflows, etc. related to contractual funding
obligations

6,284,751

1,663,084

5,870,401

1,874,332

15

Cash outflows related to contingencies

75,277,900

723,445

75,954,584

728,36116

Total cash outflows/

52,887,041/

51,430,395

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

Cash Inflows

(3)

17

Cash inflows related to secured lending andinvestments, etc.

14,339,359

1,456,464

11,831,118

1,029,761

18

Cash inflows related to collections of loans, etc

11,456,961

7,945,763

10,571,333

7,395,647

19

Other cash inflows

7,208,397

2,037,008

7,516,139

1,820,938

20

Total cash inflows

33,004,717

11,439,235

29,918,592

10,246,347

Consolidated liquidity coverage ratio

(4)

/

/

21

Total HQLA allowed to be included in thecalculation/¥59,797,149/¥59,793,333

22

Net cash outflows/

41,447,805/

41,184,048

23

Consolidated liquidity coverage ratio/

144.3%/

145.2%

24

The number of data used to calculate the average
value

58

62

306

Liquidity Coverage Ratio

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Sound Management of Liquidity Risk

(2) Disclosure of qualitative information regarding Liquidity Coverage Ratio(A) Chronological changes in Liquidity Coverage Ratio
Our Consolidated LCR has remained stable over the past two years.
(B) Evaluation of the consolidated Liquidity Coverage Ratio Level
Our Consolidated LCR surpasses the final regulatory standard (100%), with no issues. Our Consolidated LCR disclosed
herein does not differ significantly from our original expectations, and we do not expect our Consolidated LCR to deviatesignificantly from the current level in the future.
(C) Composition of the total HQLA allowed to be included in the calculation
There are no significant changes in the composition, such as by currency or type, and geographic distribution of the HQLA
allowed to be included in the calculation. In addition, there is no significant currency mismatch between total amount of the
HQLA allowed to be included in the calculation and net cash outflow regarding main currencies (those currencies of which
the aggregate liabilities denominated amount to 5% or more of our total liabilities).
(D) Other matters regarding the Liquidity Coverage Ratio
We do not apply the "exception regarding qualifying operational deposits" in Article 28 of the Notice No. 62 and "theamount of additional collateral required due to market valuation changes to derivatives transactions estimated by the
scenario approach" in Article 37 of the Notice No. 62. "Cash outflows from other contracts" in Article 59 of the Notice No.
62 incluedes "cash outflows related to small consolidated subsidiaries." There are no material items that require detailed
explanation of "cash outflows from other contingent events" in Article 52 of the Notice No. 62 and "cash inflows from othercontracts" in Article 72 of the Notice No. 62. Monthly or quarterly data is used for our consolidated subsidiaries.

307

Liquidity Coverage Ratio

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Status of Major Liquid Assets(Billions of yen)
Item

As of March 31, 2019 As of March 31, 2018

Cash and Due from Banks (including Due from Central Banks)
Trading Securities
Securities
Bonds Held to Maturity
Other Securities
Japanese Stocks
Japanese Bonds
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other
Foreign Bonds
Other¥45,108.6
5,968.8
29,135.0
1,602.2
27,532.8
3,143.5
14,786.9
11,896.1
209.8
2,680.9
9,602.3
7,418.3
2,183.9

Total¥47,725.3
5,188.4
33,618.9
2,515.8
31,103.1
3,582.2
16,535.6
13,332.0
239.3
2,964.1
10,985.2
8,329.1
2,656.1

80,212.4

86,532.7

Portion pledged as collateral(9,691.9)(11,660.9)

Total after the deduction above¥70,520.5¥74,871.7

Notes: 1. All securities included in the above table have fair value.
2. Portion pledged as collateral mainly consists of securities and others collateralized for borrowed money, foreign and domestic exchange transactions or derivatives
transactions,or substituted for margins for futures transactions.
3. Figures in the above table do not represent high quality liquid assets.

■ Status of Major Funding(Billions of yen)
As of March 31, 2019
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years Over 10 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥120,184.3
12,964.4
2,841.9970.3
355.5
1,010.3
1,102.0¥3,166.2
377.4
1,058.9
1,494.3-¥703.8304.2
1,158.4
-

¥61.6
258.0
1,014.6
-

¥53.9
225.2
1,464.8-¥140.9
244.7
623.7
-

Total

¥139,429.0¥6,096.9¥2,166.5¥1,334.3¥1,744.0¥1,009.5(Billions of yen)

As of March 31, 2018
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥121,278.4
11,021.7
2,105.2
2,221.5
362.1
740.9
4,733.1¥2,974.1
357.7
1,541.5
1,145.7-¥691.74.0
309.4
1,883.4
-

¥86.9
260.2
626.6
-

¥41.3
303.8
1,375.9
-

¥8.5
259.5
532.9
-

Total

¥142,463.2¥6,019.2¥2,888.7¥973.9¥1,721.0¥801.07-10 years Over 10 years

Notes: 1. Regarding Deposits, Demand deposits are included in "Within 1 year"
2. Borrowed money or issued bonds with open ended, 0.0 billion, 1,239.0 billion, respectively, at March 31, 2018, and 0.0 billion, 1,585.0 billion, respectively, at March 31,
2019, are excluded.

308

Liquidity Coverage Ratio

2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory DisclosuresCompensation of Directors and Employees■ Compensation of Directors and Employees(1) Qualitative Disclosure(A) State of the Organizational System Relating to Compensation of "Subject Directors and Employees" of Mizuho
Group
1. Scope of "Subject directors and employees""Subject directors, etc." and "Subject employees, etc." subject to disclosure as provided for in the FSA Notice(collectively, "Subject directors and employees") are as follows:(1) Scope of "Subject directors, etc.""Subject directors, etc." are directors and executive officers as defined in the Companies Act of Mizuho Financial
Group, Inc. ("MHFG"). Outside directors are excluded.
(2) Scope of "Subject employees, etc.""Subject employees, etc." who are subject to disclosure are executive officers (as defined in our internal regulations),
specialist officers and employees of MHFG and directors and employees of its "Major consolidated subsidiaries",
who are "persons who receive large amounts of compensation" and "materially affect the operation of business or
the state of assets of Mizuho group or its major consolidated subsidiaries."(a) Scope of "Major consolidated subsidiaries"
A "Major consolidated subsidiary" is a consolidated subsidiary, etc., (i) whose total assets as a percentage ofconsolidated total assets exceeds 2% of a bank holding company or bank and (ii) who materially affects the
management of our group. Specifically, those are Mizuho Bank, Ltd. ("MHBK"), Mizuho Bank (USA) and othersubsidiaries who conduct banking business similar to a branch of MHBK, Mizuho Trust & Banking Co., Ltd.
("MHTB"), Mizuho Securities Co., Ltd. ("MHSC"), Mizuho Securities USA Inc. and Mizuho International Plc.
(b) Scope of "Persons who receive large amounts of compensation"
A "Person who receives large amounts of compensation" refers to a person who receives compensation thatexceeds the base amount from MHFG or its "Major consolidated subsidiaries." The base amount at MHFG has
been set at ¥60 million. Such base amount has been set based on the average amounts of the compensation of
directors and executive officers (as defined in the Companies Act) of MHFG, MHBK and MHTB for the last threefiscal years (excluding persons who resigned or retired during each of such fiscal years), taking into accountfluctuations in amounts of compensation over past fiscal years. The preceding base amount has been adopted
as the common base in order to unify the selection criteria of persons who receive large amounts ofcompensation at each of the companies in this paragraph.
(c) Scope of "Persons who materially affect the operation of business or the state of assets of Mizuho group"
A "Person who materially affects the operation of business or the state of assets of Mizuho group" means aperson who exerts significant influence on the operation of the business of MHFG or a "Major consolidated
subsidiary" through his or her work in conducting transactions or management, or who materially affects the stateof assets by incurring losses on transactions. Specifically, it includes executive officers (as defined in our internal
regulations) and specialist officers of MHFG and directors, executive officers (as defined in our internal
regulations), specialist officers and market department employees of "Major consolidated subsidiaries."
2. Decisions on compensation of "Subject directors and employees" and the name, composition and duties of thecommittee to supervise business execution and other major organizations relating to payment of compensation andother compensation, etc.
(1) State of maintaining and ensuring the Compensation Committee, etc.
MHFG is a Company with Three Committees, and has established the Compensation Committee as a statutory
committee.
The chairman of the statutory Compensation Committee shall be an outside director, and in principle its members
shall be appointed from among the outside directors (or at least non-executive directors) in order to ensure
objectivity and transparency in director and executive officer compensation. As of March 2019, all four members of
the Compensation Committee, including the chairman, were outside directors. The Compensation Committee shalldetermine the basic policy and compensation system for directors and executive officers of MHFG, MHBK, MHTB
and MHSC, determine the compensation for each individual director and executive officer (as defined in the
Companies Act) of MHFG, and exercise approval rights in MHFG for compensation for each individual director of
MHBK, MHTB and MHSC.
In addition, the president of each of MHBK, MHTB and MHSC determines the amount of compensation for each of
its executive officers and specialist officers.

309

Qualitative disclosure2019/09/02 10:07:08 / 19516221_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Decisions on compensation of "Subject employees, etc."
Matters relating to executive officers (as defined in our internal regulations) and specialist officers of MHFG anddirectors, executive officers (as defined in our internal regulations) and specialist officers of MHBK, MHTB and
MHSC are as set out in (1) State of maintaining and ensuring the Compensation Committee, etc.. With regard to thecompensation of directors of MHBK, MHTB and MHSC, it is determined through approval by the Compensation
Committee, pursuant to each statutory procedure for directors who are Audit & Supervisory Committee Members
and for directors who are not Audit & Supervisory Committee Members, and set within the scope of the total amountof compensation of directors resolved at the ordinary general meeting of shareholders.
The compensation of subject employees, etc., is decided and paid in accordance with the salary and bonus systemestablished by MHFG and the "Major consolidated subsidiaries." Such system is designed and put into writing by thehuman resources departments of MHFG and the "Major consolidated subsidiaries" which are independent of
departments furthering business. In terms of the compensation of overseas employees, each overseas office oroperation determines its own compensation policy based on local laws and regulations as well as employment
relationships.
3. Total amount of compensation paid to members of the compensation committee and number of meetings held by theCompensation Committee
Number of meetings held
(April 2018 – March 2019)
Compensation Committee(MHFG)

11

Note: The total amount of compensation is not set out above as it is not possible to separately calculate the amounts that are paid as consideration for the execution of duties by thecompensation committee.

(B) Evaluating the Appropriateness of the Design and Operation of the System Relating to Compensation of"Subject Directors and Employees" of Mizuho Group
1. Policies relating to compensation(1) Policies relating to compensation of "Subject directors, etc. "MHFG set out the “Mizuho Financial Group Compensation Policy” concerning the determination of compensation foreach individual director, executive officer and specialist officer (“Officers, etc.”) of MHFG as well as MHBK, MHTB
and MHSC (the “Three Core Companies”).
a. Philosophy and objectives
Executive compensation for MHFG and the Three Core Companies pursuant to such policy is determined based on
appropriate governance and control, and aims to function as incentive and compensation for each Officer, etc., toexercise their designated function to the fullest in our efforts to realize management that contributes to value creationfor various stakeholders and improve corporate value through continuous and stable corporate growth based on ourbasic management policies under our Corporate Identity.
b. Basic Policy
The basic policy with respect to the determination concerning the individual compensation of Officers, etc., of MHFG
and the Three Core Companies is set forth below:(i) The executive compensation shall be determined based on appropriate governance and control, and function as an
appropriate incentive in order to realize management that contributes to value creation for various stakeholders andimprove corporate value through continuous and stable corporate growth based on our basic management policies
under our Corporate Philosophy.
(ii) The executive compensation shall be based on the function and responsibility assigned to and the performance ofeach Officer, etc.
(iii) The executive compensation shall contribute to suppressing excessive risk-taking, improving corporate value andcreating value for various stakeholders not only in the short-term, but also over the medium- to long-term.
(iv) The executive compensation shall reflect the management environment and business performance of our group.
(v) The executive compensation shall enable compensation for securing expert personnel such as professionals witha competitive edge in the market.

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Basel Regulatory DisclosuresCompensation of Directors and Employees(vi) The compensation system and standards shall be timely and appropriately reevaluated and set at a competitive
and appropriate standard based on such factors as the economic and social conditions and survey data withrespect to management compensation provided by external specialized organizations.
(vii) Regulations and guidelines, etc., concerning executive compensation, both in Japan and overseas, shall becomplied with.
c. Compensation System
I. Compensation for Officers, etc., shall, in principle, consist of a “Basic Salary,” “Performance Payment” and “Stock
Compensation.”(i) “Basic Salaries” shall factor in the function and responsibility of each Officer, etc., in addition to the standard
amount for each position and payment will be made monthly in cash.
(ii) “Performance Payments” shall be made as a monetary incentive for Officers, etc., to achieve the annual budget
and as compensation for their achievement. The payment thereof shall reflect our company-wide results ofoperations, the results of organizations (our in-house companies and units, etc.) that each Officer, etc., is in chargeof and the performance or each Officer, etc., in addition to the standard amount for each position. A system shall be
adopted which, based on resolution by the Compensation Committee, etc., enables certain amount of deferredpayments of the performance payments over three years, as well as a decrease or forfeiture of the deferred amount
depending on performance, etc., of the company or the individual.
(iii) “Stock Compensation” shall be paid in the form of shares of common stock of MHFG consisting of “Stock
Compensation I” and “Stock Compensation II,” (together “Stock Compensation I and II”) acquired from the stock
market through a trust with an aim to align the interests of Officers, etc., with those of the shareholders andincrease the incentive to enhance corporate value.
(a) “Stock Compensation I” shall be paid at the time of retirement of each Officer, etc., in the form of shares ofcommon stock of MHFG calculated based on each position. A system shall be adopted which enables a decreaseor forfeiture of the amount by resolution of the Compensation Committee, etc., depending on performance of thecompany or the individual.
(b) “Stock Compensation II” shall be paid in accordance with our company-wide results of operations, the results oforganizations (our in-house companies and units, etc.) that each Officer, etc., is in charge of and the performanceof each Officer, etc., in addition to the standard amount for each position. A system shall be adopted whichenables the entire amount of deferred payments over three years, as well as a decrease or forfeiture of thedeferred amount by resolution of the Compensation Committee, etc., depending on performance of the company
or the individual.
II. Within the Officers, etc., the compensation system for the executive officers as defined in the Companies Act, thedirectors, the executive officers as defined in our internal regulations and the specialist officers responsible forbusiness execution (the "Officers Responsible for Business Execution") shall be separate from the compensation
system for the directors responsible for management supervision ("Non-Executive Officers Responsible forManagement Supervision").
(i) The basic compensation system for "Officers Responsible for Business Execution" shall be a “Basic Salary,”“Performance Payment” and “Stock Compensation I and II.”(a)The composition of the compensation shall, in principle, be 50%, 17.5% and 32.5% for “Basic Salary,”“Performance Payment” and “Stock Compensation I and II” respectively.
(b)“The upper limit of “Performance Payment” and “Stock Compensation II” shall be decided* in accordance with the
our annual results of operations taking into account the traits of business activities of MHFG as a Financial
Services Group. The payment to each officer shall reflect the performance of each officer and the results oforganizations (our in-house companies and units, etc.) that each Officer, etc., is in charge of, and be, in principle,
within the range of 0% to 150% of the standard amount for each position.
* The amount of funds for “Performance Payment” and “Stock Compensation II” is decided for each fiscal year bymultiplying the standard amount for each position in a respective year with the total number of officers in that year
and a coefficient based on the result from the fiscal year’s results of operations. The evaluation metric for thiscoefficient is decided by setting metrics based on our Consolidated Net Business Profits, and using such evaluation
metrics for the reference year and the current fiscal year (provided that, for Mizuho Securities Co., Ltd., the system
is linked to Ordinary Income, which is a metric that is equivalent to Consolidated Net Business Profits based on thetraits of business activities and financial structure of securities companies).
(ii) The compensation for Non-Executive Officers Responsible for Management Supervision, in principle, shall be in
the form of fixed compensation from the perspective of ensuring the effectiveness of the supervisory function. The
compensation system shall consist of “Basic Salaries” and “Stock Compensation” and the composition shall, in
principle, be 85% and 15% for “Basic Salaries” and “Stock Compensation,” respectively.

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III. There are cases where compensation for some personnel, including those officers recruited locally in countries
other than Japan, may be designed individually in compliance with local compensation regulations while taking into
consideration local compensation practices and the responsibilities, business characteristics and market value, etc.,
of each respective officer.
For cases where compensation is designed individually, payment of compensation is also made in accordance withthe performance of the company or the individual. Payment of compensation is designed to avoid excessive risktaking through a system which enables certain amount or a portion of deferred payments and non-monetary
payments such as stock, as well as a decrease or forfeiture of the deferred amount depending on the performance,
etc., of the company or the individual.
d. Compensation Determination Process
I. The Compensation Committee shall determine the determination policy of executive compensation for MHFG and
the Three Core Companies and the executive compensation system including the compensation system set out in“Compensation System” in order to effectively secure the transparency and objectivity of compensation, etc., forindividual Officers, etc. In addition, the Compensation Committee shall determine the compensation for eachindividual director and executive officer, as defined in the Companies Act, of MHFG and approve at MHFG thecompensation of each individual director of the Three Core Companies.
II. The President & CEO, pursuant to this policy and regulations and detailed rules, etc., shall determine thecompensation for each executive officer, as defined in our internal regulations, and specialist officer of MHFG andapprove at the MHFG the compensation of each individual executive officer and specialist officer of the Three Core
Companies.
III. The Compensation Committee will verify the validity of the compensation system and standards based on
economic and social conditions and survey data with respect to management compensation provided by external
specialized organizations.
IV. All members of the Compensation Committee shall be appointed from among outside directors (or at least nonexecutive directors) and the Chairman thereof shall be an outside director.
V. The Compensation Committee may have officers who are not members of the committee (including officers of theThree Core Companies) such as the President & CEO and external experts, etc., attend its meetings and provide
their opinion in order to facilitate adequate and appropriate discussions and determinations.
(2) Policies relating to compensation of "Subject employees, etc."
The policies relating to compensation for executive officers (as defined in our internal regulations) and specialist
officers of MHFG and directors, executive officers (as defined in our internal regulations) and specialist officers of
MHBK, MHTB and MHSC are also the same as the policies described in (1) Policies relating to compensation of"Subject directors, etc." above. Compensation for other employees, etc., is determined in accordance with theirduties and responsibilities. Some bonuses that are linked to performance are determined after comprehensively
evaluating the employee’s contribution to business, including any qualitative contributions to the organization, in amanner that does not place an excessive emphasis on results.
2. The effect of the overall level of compensation, etc., on equity capital
The Compensation Committee of MHFG receives reports on the amount of compensation paid to directors, executive
officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) and specialist
officers of MHFG, MHBK, MHTB and MHSC in the previous fiscal year and confirms that there is no material effect on
the Mizuho group’s performance or the adequacy of equity capital.

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Basel Regulatory DisclosuresCompensation of Directors and Employees(C) Compatibility between System for Compensation of "Subject Directors and Employees" of Mizuho Group and
Risk Management andMmatters Relating to Linking Compensation with Performance
1. Compatibility between system for compensation of "Subject directors and employees" and risk management
The compensation of employees in risk management department, compliance department and internal audit department
is decided in accordance with the salary and bonus system, and specific payment amounts are conclusively determinedin accordance with employee performance evaluations made by the relevant department and the human resources
department, independent from departments furthering business.
Each employee of the risk management department, the compliance department and the internal audit department sets
their own objectives in the employee performance evaluations, subject to the approval of their superiors. The degree towhich the objectives are achieved is evaluated by taking into account the degree of the employee's contribution to theestablishment of a system for risk management, compliance and internal audit.
2.Linking compensation of "Subject directors and employees" with performance
The performance payments and performance-based stock compensation for "Officers Responsible for Business
Execution" are made or paid based on the standard amount set for each position, with which each officer’s performanceshall be reflected, and determined in accord with a performance evaluation, etc., against the annual business plan. A
certain amount of the performance payments and the entire amount of the performance-based stock compensation shallbe made or paid in deferred payments over three years, and a decrease or forfeiture of the deferred amount may bemade depending on the performance, etc., of the company and such officer. It should be noted that certain "Subject
directors and employees" have entered into compensation-related contracts. Stock compensation for "Non-Executive
Officers Responsible for Management Supervision" shall be made in accordance with the standard amount set for eachposition, and the payment level shall not change based on the performance of each officer. With regard tocompensation for other employees, salary is determined according to their job duties and responsibilities. In addition,
the proportion linked to the performance bonus is determined through appropriately and comprehensively evaluating thecontribution to performance, including the degree of contribution to the organization, etc., so as not to become
excessively performance based.

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No.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Number of “Subject directors, etc.” and “Subject employees, etc.”
Fixed compensation amount (3+5+7)
Cash compensation amount
Of which, deffered amountFixedcompensation
Stock compensation amount or stock-based type compensation amount
Of which, deffered amount
Other compensation amount
Of which, deffered amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Variable compensation amount (11+13+15)
Cash compensation amount
Of which, deffered amount
Variablecompensation
Stock compensation amount or stock-based type compensation amount
Of which, deffered amount
Other compensation amount
Of which, deffered amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Retirement
Retirement benefits amountbenefits
Of which, deffered amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Other
Other compensation amountcompensation
Of which, deffered amount
Comensation amount (2+10+18+21)(Millions of yen, except people)ab“Subjectdirectors, etc.”“Subject
employees, etc.”

18
¥840
713
125
1
18
¥284
134
150
150
¥¥¥1,125219¥8,481
7,854
91
535
218
¥11,072
9,934
3,375
1,137
612
¥140
¥661
260
¥20,215

Notes: 1. Amounts of compensation of “Subject directors, etc.” include amounts of compensation received for duties performed as a director or executive officer of a "Major
consolidated subsidiary."
2. The number of employees is the actual number of persons (a) for the compensation for the fiscal year ended March 31, 2019 and (b) for the compensation for the fiscal year
ended March 31, 2018 for the payments made or anticipated payments for which the amount became clear during the fiscal year ended March 31, 2019 are stated.
3. The stated amount is the total amount for the fiscal year ended March 31, 2019 and the fiscal year ended March 31, 2018.
4. No. 7, “Fixed compensation,” “Other compensation amount,” includes condolence money insurance premiums , based on the decision of our Compensation Committee.
5. No. 11, “Variable compensation” “Cash compensation amount,” includes the recorded performance payment for the fiscal year ended March 31, 2018 for directors,
executive officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) and specialist officers of MHFG, MHBK, MHTB and MHSC.
For portions that exceed a certain amount, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2020.
6. No. 13, “Variable compensation” “Stock compensation amount or stock-based type compensation amount” includes the amount obtained by multiplying the stockcompensation and performance-based stock compensation ownership points (with one point to be converted into one share of MHFG stock) granted to the directors,
executive officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) and specialist officers of MHFG, MHBK, MHTB and MHSC for
the fiscal year ended March 31, 2018 by the book value of MHFG's shares (196.3922 yen per share). For stock compensation and performance-based stock compensation
for the fiscal year ended March 31, 2018, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2020.
7. Because the amounts of the stock compensation, performance payment and performance-based-type stock compensation for the directors, executive officers (as defined in
the Companies Act), executive officers (as defined in our internal regulations) and specialist officers of MHFG, MHBK, MHTB and MHSC for the fiscal year ended March 31,
2019 have not been determined at this time, they are not included in the above compensation. However, we have recorded the required reserves for accounting purposes.
8. The exercise periods for the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option agreements, exercise of theoptions is postponed, even during the exercise period, until the time of retirement of the director or employee.
[The exercise periods for stock options have been omitted from the table]

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Basel Regulatory DisclosuresCompensation of Directors and Employees(B) REM2：Special Compensation(Millions of yen, except people)abc“Subject directors, etc.”“Subject employees, etc.”

JPY

-

e

Lump sum payments
at the time of recruitment

Bonus guarantees
PeopledPeople¥-Additional retirement benefits

JPY

3

f

People¥260

11(C) REM3：Deferred Compensation¥445(Millions of yen)

a

b

c

d

e

Of which, thedeferredcompensation
amount subject
to adjustment orvariation

Regardingcompensation
after allocation,
variable amounts
adjusted but notlinked tovariations for the
relevant fiscal
year

Regardingcompensation
after allocation,
variable amounts
adjusted andlinked tovariations for the
relevant fiscal
year

Amount ofdeferredcompensation
paid in the
relavent fiscal
year

¥5

¥5

¥-

¥-

¥3

513

328

-

(22)

229

-

-

-

-

-

4,978

641

21

-

2,135

1,200

484

-

(19)

348

-

-

-

-

-

¥6,697¥1,459¥21¥(42)¥2,717

Deferredcompensation
amountCashcompensation
amountStockcompensation“Subjectamount or stockdirectors,
based type
etc.”
compensation
amountOther
compensation
amountCashcompensation
amountStockcompensation“Subjectamount or stockemployees,
based type
etc.”
compensation
amountOther
compensation
amountTotal amount

JPY(D) Other Relevant Matters Relating to Our System of Compensation for "Subject Directors and Employees" ofMizuho GroupNot applicable, other than those covered in the above.

315

Quantitative Disclosure Items

Disclosure Policy
1. Basic principles
We are committed to growing together with our customers
in a stable and sustainable manner and bringing together
our group–wide expertise to contribute to the prosperity of
economies and societies throughout the world as the leading
Japanese financial services group with a global presence
and a broad customer base. For this reason, we place one of
the highest management priorities on continuing to disclose
information to our customers, shareholders, and investors bothin and outside Japan in a fair, timely and appropriate manner,in order that they may form proper judgments and appraisalsof the group. To achieve this aim, we observe applicable
domestic and international laws and regulations as well as
stock exchange rules relating to corporate disclosure, and weestablish and implement appropriate Disclosure Controls andProcedures.
2. Disclosure Controls and Procedures(1) Establishment and implementation of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are establishedto observe applicable domestic and international laws andregulations as well as stock exchange rules and to implement
fair, timely and appropriate corporate disclosure. The
Disclosure Controls and Procedures are the process carriedout by directors, officers and employees of Mizuho Financial
Group and include Internal Controls over Financial Reporting
designed to provide reasonable assurance regarding
the reliability of Financial Reporting and the Preparationof Financial Statements. We have established the basic
principles underlying our Disclosure Controls and Procedures
as well as our internal rules related to Disclosure Controls andProcedures that govern the management framework for theentire Mizuho Financial Group including group companies,
and we endeavor to establish, implement and continuously
improve our Disclosure Controls and Procedures. Our
Disclosure Committee is the Business Policy Committeethat is responsible for discussing and coordinating mattersrelating to Disclosure Controls and Procedures.
(2) Evaluation of effectiveness of Disclosure Controls andProcedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our Disclosure
Controls and Procedures is conducted regularly byreviewing the contents of such documentation and theirimplementation. In addition, evaluation of the effectivenessand appropriateness of Disclosure Controls and Proceduresis conducted through internal audits.
(3) Others
We established a “Code of Ethics for Financial Professionals”
to be observed by all directors and executive officers, as well
as all managers and other employees within Mizuho Financial
Group who engage in financial reporting, accounting or
disclosure. We have also developed the “internal control andaudit hotline”, a system designed for reporting questionableaccounting, internal control, or auditing matters from both
inside and outside Mizuho Financial Group.

laws and regulations as well as stock exchange rules, wefollow the defined disclosure procedures such as publishingsuch information in business reports (Jigyo–Hokoku),
annual securities reports (Yukashoken–Hokokusho),Integrated Report (Annual Review) and other disclosure
publications, as well as providing such information throughthe information distribution systems of domestic andinternational stock exchanges and through press releases.
We also endeavor to disclose other information in a fair,timely and appropriate manner. When we disclose suchinformation, we basically publish on our website theinformation we disclose. In addition, we endeavor to utilize
the latest disclosure methods and tools to provide more fair
and widespread disclosure.
(2) Investor relations activities
Investor relations activities to market participants both inand outside Japan such as shareholders, investors andsecurities analysts are conducted by the President & Group
CEO, Group CFO, Chief IR Officer, and executives andemployees designated by them. In accordance with ourbasic principles described in section 1 above, and with due
attention to two–way communication, we endeavor sincerely
to facilitate a proper understanding of our management
strategies, financial condition and other matters. In thisway, we aim to earn the trust of the market and obtain an
appropriate market reputation.
Beginning with the disclosure required by applicable
domestic and international laws and regulations aswell as stock exchange rules, we endeavor to grasp
properly the types of information desired by the market
and to disclose useful and appropriate information
voluntarily and proactively, in accordance with the socalled Fair Disclosure Rule (“FDR”). Regarding disclosureof information we consider particularly important, we
communicate such information on an ad hoc basis as andwhen necessary, even if a press release has already been
issued, through such means as special briefing sessions.
In addition, we respect various disclosure principles
including fair disclosure. Accordingly, at individual calls,
private meetings or conferences hosted or attended byrepresentatives of Mizuho Financial Group we endeavor tolimit carefully our explanations to matters already disclosed
and facts commonly known.
Should we happen to disclose important information suchas information subject to insider trading regulations and/or
undisclosed financial results that might have a significant
influence on stock prices, we endeavor to take necessary
action such as officially announcing the information as soon
as possible, in accordance with FDR.
(3) Correction of misconceptions in the markets
If we identify significant misconceptions regarding Mizuho
Financial Group in the market due to the spread of rumors
or otherwise, we endeavor to investigate their causes andcorrect such misconceptions promptly.

3. Disclosure methods, other(1) Disclosure methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and international

2019 Integrated Report316

Mizuho Financial Group, Inc.
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
www.mizuho-fg.com

This PDF version of the Integrated Report is a digital version of the Forest StewardshipCouncil (FSC)-certified published version, which is printed on FSC-certified paper.