Financial Highlights of Mizuho Financial Group, Inc. (Consolidated)
Millions of yen
2008

For the Fiscal Years ended March 31,

Total Income
Total Expenses
Income before Income Taxes and Minority Interests
Net Income
Cash Dividends*

¥

2007

4,649,081
4,163,019
486,062311,224
133,898¥

Thousands of U.S. dollars
2008

4,348,066
3,373,167
974,898
620,965
103,056$

46,398,024
41,547,102
4,850,922
3,106,033
1,336,311*Non-consolidated basis.

Millions of yen
2008

As of March 31,

Total Assets
Securities
Loans and Bills Discounted
Deposits
Net Assets¥ 154,412,105
33,958,537
65,608,705
86,264,041
5,694,159

2007

Thousands of U.S. dollars
2008¥ 149,880,031
36,049,983
65,964,301
83,608,304
6,724,408$ 1,541,038,981
338,907,562
654,777,501
860,918,578
56,827,943

2007

U.S. dollars
2008

Yen
For the Fiscal Years ended March 31,

2008

Per Share of Common StockNet Income
Cash Dividends per Share*
Common Stock
Preferred Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock¥

25,370.25¥

51,474.49$

253.2010,000

7,000

99.80

20,00030,00020,00030,000199.60299.40*Non-consolidated basis.

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)

2008

2007

11.70%

12.48%

Ratings
R&I
JCR
Moody's
Standard & Poor's
Fitch
Long Term Short Term Long Term Short Term Long Term Short Term Long Term Short Term Long Term Short Term

Mizuho Financial Group, Inc.
Mizuho Corporate Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Mizuho Securities Co., Ltd.

A
A+
A+
A+
A+

a–1
a–1
a–1
a–1
a–1

—
AA–
AA–
AA–
AA–

—
—
—
—
J–1+

—
Aa2
Aa2
Aa2
Aa2*

P–1
P–1
P–1
P–1
P–1*

A
A+
A+
A+
—

—
A–1
A–1
A–1
—

A+
A+
A+
A+
—

F1
F1
F1
F1
—

*Credit ratings for EMTN programme (Joint Medium-term Note Programme with Mizuho International, based on keepwell agreement with Mizuho Corporate Bank).
(As of August 31, 2008)

2008 Mizuho Financial Group Annual Review

ProfileContents

The Mizuho Financial Group is one of the

A Message from the President & CEO of
Mizuho Financial Group, Inc.

2

A Message from the President & CEO of
Mizuho Corporate Bank, Ltd.

6

A Message from the President & CEO of
Mizuho Bank, Ltd.

9

Securities, Trust and Asset Management Business
Strategies

12

Business Outline

14

Office Network

16

Business Approaches Adopted by Each Global Group18

CSR Activities

42

Brand Strategy

44Management Structure46

Dai-Ichi Kangyo Bank (DKB), The Fuji BankInternal Control Systems

51(Fuji) and The Industrial Bank of Japan (IBJ).

Financial Analysis [Under Japanese GAAP]

69

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]109

Non-Consolidated Financial Statements ofMizuho Financial Group, Inc. and Four
Subsidiaries [Under Japanese GAAP]

165

Status of Capital Adequacy

181

Senior Executives

225

Location of Overseas Offices

226

Investor Information229

largest financial institutions in the world,
offering a broad range of financial services
including banking, securities, trust and asset
management, credit card, private banking
services, venture capital through its groupcompanies. The group has approximately
49,000 staff working in over 800 offices
inside and outside Japan, and total assets ofover $1.5 trillion (as of March 2008). The
group was created in September 2000
through the establishment of a holding company of our three predecessor banks, The

Under the umbrella of the holding company
Mizuho Financial Group, our principal groupcompanies include Mizuho Corporate Bank,
Mizuho Bank, Mizuho Securities and Mizuho
Trust & Banking.

All figures contained in this report are calculated using accounting principles generally accepted in Japan (“Japanese GAAP”).

Forward-Looking Statements
This Annual Review contains statements that constitute forward-looking statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995. 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. Thesestatements 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, including
as a result of the impact of the dislocation in the global financial markets stemming from U.S. subprime mortgage loan issues; changes in interest
rates; foreign currency fluctuations; revised assumptions or other changes related to our pension plans; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effectiveness of our operational, legal and other risk management policies; our ability to
avoid reputational harm; and effects of changes in general economic conditions in Japan.
Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key
Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our latest annual report on Form 20-F filed with the
U.S. Securities and Exchange Commission (“SEC”). In addition, information regarding market developments after March 31, 2008 and theireffects on our financial condition and results of operations is included in the report on Form 6-K furnished to the SEC on July 31, 2008 containing financial information for the first quarter of this fiscal year under accounting principles generally accepted in Japan. These reports are available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC's web site at www.sec.gov.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter ourforward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of theTokyo Stock Exchange.

1

A Message from the President & CEO of Mizuho Financial Group, Inc.

Under our Business Portfolio Strategy, we reorganized our businesses into three global groups to address
the needs of our customers. On leveraging their respective strengths and capabilities, these three groups
offered products, services and solutions optimally suited
to our customers.
In our Global Corporate Group, Mizuho Corporate
Bank took initiatives to strengthen structures and capabilities for offering solutions globally by, for example,
establishing new overseas branches and offices andconcluding strategic alliances with leading financial
institutions in Asia.
In our Global Retail Group, Mizuho Bank worked tooffer highly convenient services to individual customers
by expanding its network of “Mizuho Personal Square,”a branch designed to focus on serving individual customers, and by enhancing the services of Mizuho
Mileage Club. It also responded actively to the fundingneeds of small and medium-sized enterprises (SMEs)
In fiscal 2007 ended March 31, 2008, the year of con-and middle-market corporations.

cluding our business strategy, the “Channel to

The Global Asset & Wealth Management Group

Discovery” plan, we continued to work to increase ourmade significant advances in its initiatives to strengthen

corporate value by strengthening profitability throughits trust and asset management business and strength-

implementing our Business Portfolio Strategy andened cooperation with other group companies.
As part of the implementation of our Corporate

improving our internal control systems through carrying out our Corporate Management Strategy.

Management Strategy, we made further enhancement ofManagement Structure of Mizuho
GlobalCorporateGroup*
Mizuho Corporate Bank, Ltd. (MHCB)

Mizuho Securities Co., Ltd. (MHSC)

Shinko Securities Co., Ltd.

MizuhoFinancial
Group, Inc.
(MHFG)

GlobalRetailGroup

GlobalAsset & WealthManagement
Group

Group
Strategy
Affiliates

Mizuho Bank, Ltd. (MHBK)

Mizuho Trust & Banking Co., Ltd. (MHTB)

Mizuho Investors Securities Co., Ltd. (MHIS)

Trust & Custody Services Bank, Ltd. (TCSB)
Mizuho Asset Management Co., Ltd. (MHAM)

Mizuho Private Wealth Management Co., Ltd. (MHPW)DIAM Co., Ltd. (DIAM)

Mizuho Financial Strategy Co., Ltd. (MHFS)
Mizuho Research Institute Ltd. (MHRI)
Mizuho Information & Research Institute, Inc. (MHIR)* Subject to the approval of the shareholders' meetings of both companies and the relevant authorities, MHSC andShinko Securities will merge as of a target date of May 7, 2009.

2

our framework for disclosure in accordance with U.S.

obligors, especially those with lower credit ratings,

generally accepted accounting principles (GAAP). In addi-

amid uncertainty over the future of the economy.

tion, we strengthened internal controls and enhanced thetransparency of corporate disclosure in line with requirements of the U.S. Sarbanes-Oxley Act. We also continued
our activities to fulfill our corporate social responsibility(CSR), providing support for financial education, reducing environmental burden, and remodeling branches ofMizuho Bank to make them more barrier-free.

Performance in Fiscal 2007
Consolidated net business profits* 1 decreased to¥511.1 billion by ¥480.4 billion compared with theprevious fiscal year. This decrease was mainly because
Mizuho Securities recorded losses (a decrease of¥479.9 billion in consolidated ordinary profits compared with the previous fiscal year), as it suffered fromthe dislocation in the global financial market stemmingfrom the U.S. subprime loan issues.
*1. Consolidated net business profits = consolidated gross profits –G&A expenses (excluding non-recurring losses) + equity inincome from investments in affiliates and certain other consolidation adjustments.

Net business profits of Mizuho Corporate Bank,
Mizuho Bank, and Mizuho Trust & Banking (the Three
Banks) increased to ¥861.7 billion by ¥17.1 billion com- Net Interest Income
The average loan balance of the Three Banks for thesecond half of fiscal 2007 decreased to ¥64.3 trillion by¥0.8 trillion compared with the first half of fiscal 2007.
But, after excluding the effect of foreign currency
exchange rate changes, the average loan balance actually continued to increase, mainly driven by an expansion of overseas lending. In addition, the domestic
loan-and-deposit rate margin for the second half of fiscal 2007 steadily improved to 1.47% by 0.03% compared with the first half of fiscal 2007. As a result of
these and other factors, although consolidated net
interest income for fiscal 2007 declined to ¥1,063.6
billion by ¥26.6 billion compared with the previous fiscal year, net interest income of the Three Banks
increased to ¥954.0 billion by ¥1.4 billion, backed by
the improvement in the domestic loan-and-deposit rate
margin and other factors.
Loan Balance (MHFG Consolidated)(Loan balance: trillions of ¥)75.0
Loan balance (*2)
Loan-and-deposit
rate margin (*3)
70.0

(Loan-and-deposit rate margin: %)
1.50

1.40

pared with the previous fiscal year, which was higher
than the original estimates in May 2007. This was
because market-related income was strong, while

65.0

1.30

60.0

1.20

income from Customer Groups declined because of
intensified competition among banks and other factors.
Consolidated net income decreased to ¥311.2 billion by ¥309.7 billion compared with the previous fiscal
year. This decline was primarily due to the impact of
the global financial market dislocation stemming fromthe U.S. subprime loan issues, which was partially offset by a rebound in net gains related to stocks. The
overall aforementioned impact of the market dislocation on our consolidated P&L (profit-and-loss statement) was a loss of approximately ¥645.0 billion.

0

0
Fiscal 2006
(first half)Loan¥63.5 tn.
balance
Loan-and-deposit 1.31%
rate margin the first

Fiscal 2006(second half)

Fiscal 2007
(first half)

Fiscal 2007(second half)¥65.0 tn.

¥65.1 tn.

¥64.3 tn.

1.37%

the third
quarter 1.29% quarter 1.35%
the second
the fourth
quarter 1.32% quarter 1.39%

1.44%

1.47%

the first
quarter 1.44%
the second
quarter 1.44%

the third
quarter 1.47%
the fourth
quarter 1.48%*2. Aggregate average balance of the Three Banks for the period,
excluding trust account and loans to MHFG.
*3. Aggregate figures of domestic operations of MHCB and MHBK
after excluding loans to MHFG, Deposit Insurance Corporationof Japan and the Japanese Government.

Credit-related costs for the Three Banks increased to¥92.5 billion by ¥69.2 billion compared with the previous fiscal year as Mizuho Bank, in addition to losses onsales of loans and other factors, conducted a review of Non-interest Income
Net fee and commission income of the Three Banks forfiscal 2007 declined to ¥351.7 billion by ¥49.1 billion

3

A Message from the President & CEO of Mizuho Financial Group, Inc.

to the sales of investment trusts and individual annu-

Impact of Global Financial Market
Dislocation Stemming from U.S. Subprime
Loan Issues

ities for fiscal 2007 decreased compared with the previ-

We regret to report that we failed to accomplish theous fiscal year, reflecting the effects of the global

original earnings estimates mainly because of the sub-financial market dislocation in the second half andstantial losses recorded by Mizuho Securities as a result

other factors, while the balance of individual annuitiesof the global financial market dislocation. We thor-

continued to increase. Regarding our business withoughly reviewed the issues that led to these losses andcorporate customers, fee and commission income fromstrengthened internal control systems such as risk man-solutions-related business, foreign exchange businessagement and related issues. These efforts shall be put

and others declined, reflecting intensified competition

to best use in the conduct of the group management

among banks and other factors.

going forward. Especially within Mizuho Securities, we

compared with the previous fiscal year. Regarding ourbusiness with individual customers, fee income related

Net Fee and Commission Income (The Three Banks)(billions of ¥)500

are strengthening the risk management systems andimplementing the “Business Restructuring Program,”
which we initiated in April 2008, without delay, with

400

+22.4

the objective of making drastic reforms in the operat-–49.1

ing systems. Please note that the merger of Mizuho

300

Securities and Shinko Securities has been postponed
200

taking into consideration the continuing global financial market turmoil and the upcoming implementation

1000

Net Fee andCommission
Incomeof the electronic share certificate system in January
Fiscal 2005

Fiscal 2006

Fiscal 20072009. The merger is now scheduled to take place in¥378.4 bn.

¥400.8 bn.

¥351.7 bn.

May 2009.

Disciplined Capital Management
Financial Soundness
Although unrealized gains on other securities
decreased and net deferred tax assets increased due tostagnant stock market conditions, we maintained ourfinancial soundness at a high level, as reflected in the
consolidated capital adequacy ratio (Basel II BIS standard) of 11.70% and in the non-performing loan ratioof the Three Banks of 1.61%.
Please note that as of March 31, 2008, the balanceof securitization products for the group in total
amounted to ¥4.4 trillion, of which the total balance of
foreign currency denominated residential mortgage

 Issuance and Redemption of “Non-Dilutive”
Preferred Debt Securities
In January 2008, we issued ¥274.5 billion of preferreddebt securities through an overseas special purpose
subsidiary so as to increase the group's Tier 1 capital tosecure the agility and to improve the flexibility of our
future capital strategy. In addition, in July 2008, weissued ¥303.0 billion of preferred debt securities
through an overseas special purpose subsidiary. In themeantime, in June 2008, we fully redeemed preferreddebt securities of ¥118.5 billion and US$2.6 billion,
which became redeemable at the issuer's option.

backed securities (RMBS) and collateralized debt obligations (CDOs) amounted to ¥0.5 trillion (on a managerial accounting and fair value basis).
Note: Regarding the detailed information on our securitization products held and others prepared basically in view of the“Leading-Practice Disclosures for Selected Exposures” includedin the Financial Stability Forum (FSF) report, please refer to thepages 86-93.

4

 Response to the Potential Dilutive Effect ofPreferred Shares (see note 2)
On May 15, 2008, the Board of Directors resolved to
set up a limit for repurchasing own shares (common
stock) up to a maximum of ¥150.0 billion. As with therepurchase of our common shares that we conductedlast year (the repurchased and cancelled amount:

is focusing especially on further expansion of its network¥149.9 billion), this repurchase will be made for theof manned branches, increase in the number of its finan-

purpose of, among other things, offsetting the poten-

cial consultants, proactive installation of “Planet Booths”

tial dilutive effect of the conversion of the Eleventh(consulting booths of Mizuho Investors Securities in the

Series Class XI Preferred Stock (¥943.7 billion in aggre-

lobbies of Mizuho Bank branches (joint branches)), andgate issue amount) in consideration of the possibility

enhancement of consulting-based marketing drawing onthat the number of shares of our common stock will

the group's trust function. For SMEs and middle-market

increase after the commencement of the conversion

corporations, Mizuho Bank is offering the highest-quality

period from July 1, 2008.

solutions to address their financial and business issues by

We will continue to address the potential dilutive
effects described above, aiming to complete the process

working in close cooperation with the banking, securities, trust companies and others in the group.

in about two years, by establishing additional repur-

The Global Asset & Wealth Management Groupchase limits and repurchasing and canceling our own

aims to offer sophisticated professional services such as

shares based on market conditions, our earning trends

trust business services to customers of Mizuho Bankand other factors (Expected total amount of repurchas-and other group companies by further enhancing its

es for this fiscal year is approximately ¥400.0 billion).

consulting and product development capabilities.

Considering our consolidated earnings and the condition of retained earnings, we increased the cash dividends

We aim to be “A financial partner that helps cus-

per share of common stock for fiscal 2007 to ¥10,000

tomers shape their future and achieve their dreams”,

and we paid dividends on preferred stock as prescribed.

and will work to increase our corporate value by continuing to steadily implement our business strategies

Initiatives Going Forward

under the solid internal control systems, while also ful-

Our three global groups continue to draw on theirfilling our responsibilities to society and our mission torespective strengths and implement their businessserve the public interest. Accordingly, we look forward

strategies. At the same time, we will work to achieve

to your continuing support.

the improvement in cooperation among group companies and offer the highest-quality financial services toJuly 2008

our customers.
The Global Corporate Group continues to expand
and develop its coverage of investment banking business by combining its banking and securities capabili-

Terunobu Maeda

ties, based on solid risk management systems, while

President & CEO

taking full account of the current uncertainties in the

Mizuho Financial Group, Inc.

market environment. Mizuho Corporate Bank isstrengthening its global business by expanding its overseas network in China and other areas and is forging
strategic alliances with overseas financial institutions.
Besides, all possible measures will be taken in order tofacilitate the merger of Mizuho Securities and Shinko
Securities smoothly.
The Global Retail Group emphasizes improving its
capabilities for offering consulting services to its individual customers and working to increase assets undermanagement. To attain these objectives, Mizuho Bank

Notes: 1. The above message, which was prepared prior to ourannouncement of our financial results for the first quarterof fiscal 2008, contains statements that constitute forwardlooking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. See the disclaimer at the bottom of page 1 of this Annual Review for
information regarding factors that could cause actual results
to differ from those in the forward-looking statements.
2. In July 2008, we repurchased our own shares (commonshares) of ¥150.0 billion (283.500 shares). We plan to cancel all the common shares repurchased, except the shares
to be assigned for the exercise of Stock Compensation-type
Stock Options (Stock Acquisition Rights) that we plan toissue in the future.

5

A Message from the President & CEO of Mizuho Corporate Bank, Ltd.

Establishing a Leading Brand as a Global Investment Bank

investment banking strategy. We are also working to create a globally based management infrastructure, including risk management, as we work with Mizuho Securities
to become Japan's No.1 global investment bank.

Intensified Drive toward Globalization
To step up our drive toward globalization, we areaccelerating the implementation of our global strategy.
To further expand the scope of our overseas network, we began the last fiscal year by opening abranch in Milan, Italy, in April and followed this withthe opening and commencement of operations at six
offices overseas. Our plans call for continuing to
expand our international network strategically and flexibly during the current fiscal year. Especially in China,

Accelerating the pace and deepening
the scope of our “Global Strategy” and“Investment Banking Strategy”

where we began operations at Mizuho Corporate Bank
(China) in June 2007, we became the first Japanesebank in China to make the transition to banking subsidiary status. As a result, we are now positioned toprovide services in yuan at the new branches in China,
and are able to obtain the early approval of licenses for

As the core bank of the Global Corporate Group, we

entering new business activities and accelerating thebelieve that expanding our global network and further

expansion of our network in China.

developing our investment banking services are indis-

On the other hand, for those geographic and prod-

pensable for establishing our presence among theuct areas that our group's network does not cover, weworld's financial institutions. Based on our “Global

are supplementing our capabilities through stronger

Declaration” and “Investment Bank Declaration,” westrategic alliances with leading financial institutions by

are deploying a business model that promotes andconcluding business cooperation agreements and/or

combines our commercial banking and investment

making equity investments in those institutions.

banking capabilities.

6

Also, as a result of the acquisition of financial hold-As we have implemented initiatives to attain ouring company status in the United States in 2006, wegoal of being a global investment bank, the subprime

are now positioned to provide comprehensive invest-

loan issues originating in the United States have had ament banking services not only in Europe, Japan, andserious impact on global financial markets. Although

the rest of Asia but also in the United States, which isthe effects have not been as great as in the United

the world's largest financial market, working together

States and Europe, they are beginning to have anwith Mizuho Securities. Mizuho Securities USA has

impact on Japan's financial markets and the economy.

already become the first Japanese-affiliated investment

Unfortunately, we have been obliged to report lossesbank to secure lead manager positions for bond issues

on our holdings such as securitization products.

of U.S.-based corporations, and is steadily expanding its

Amid these conditions, we are allocating our man-record of accomplishments in the underwriting of U.S.

agement resources selectively and flexibly, after giving

corporate bonds and equities. Although trends in U.S.

full consideration to the current uncertainties in thefinancial markets are currently uncertain, we are work-

market environment, as we continue to move ahead

ing to win available business opportunities and expand

with the implementation of our global strategy andour investment banking activities.

Gaining the Trust of Customers andBecoming a “Long-Term Partner”

As the review of firewall restrictions between banking

Looking over recent trends in the domestic and inter-

combination will further strengthen our business model

national economies and financial markets suggests thatof close collaboration between our banking and secu-

business sentiment in Japan is worsening reflecting therities businesses.

and securities operations continues, this businessslowing of exports, resulting from the strengthening

Building on our enhanced capabilities for offeringof the yen, and the weakening of corporate perfor-

financial products as well as our stringent compliancemance owing to the adverse impact of higher oil andsystems, we will strengthen our ties with Mizuho

raw material prices. Turning to the international econo-

Securities and aim to be the most-trusted “long-term

my, conditions in the United States are decelerating

partner” of our clients. We will work to build a strong

sharply as a result of the impact of the subprime loan

reputation for our global offerings of high-quality,

issues and other factors, while the economies ofcomprehensive financial solutions that help our clients

Europe are showing growing signs of a slowdown,

address their increasingly diverse and sophisticatedthus creating concerns about the spillover on the inter-management issues.

national economy as a whole.
corporations and global companies are faced not only

Creating a Global-Level Management
Infrastructurewith financial issues, such as fund-raising and enhanc-

We are also moving ahead with initiatives to create a

ing financial efficiency, but also with an increasingly

management infrastructure that will enable us to fur-

broader range of issues. These include such medium-

ther develop our business activities on a global level.

Amid these conditions, our clients among majorterm, structural issues as finding solutions to environ-

The first of these initiatives is to strengthen our risk-

mental problems and responding appropriately to thecontrol systems based on our sophisticated risk man-decline in birthrate, as well as the appreciation of theagement structure. In view of the turbulence in finan-

yen and rising prices of energy and raw materials. Keycial markets caused by the subprime loan issues, we

strategic issues our clients confront include how to

are working to substantially enhance our systems forconsolidate their marketing and operating positions inmanaging credit, market, and other forms of risk.

Japan and how to seek new growth opportunities inStrengthening these systems is essential in rapidly

overseas markets.

changing global financial markets and indispensable

With this understanding of the operating environ-for strengthening our risk-control capabilities.

ment, we are taking a range of multifaceted approach-

The second initiative is to further improve the quality

es that go beyond existing concepts and frameworks.

of our human resources. With the objective of substan-

To offer our clients fast, effective, cutting-edge solu-

tially strengthening personnel capabilities, we aretions to help them address their management issues,

implementing changes to respond to the evolution of

we offer comprehensive global investment banking

our business model, such as enhancing professional

services.

capabilities, and initiating wide-ranging diversification

In addition to maintaining the top market share inmeasures such as, among other things, enabling

Japan's syndicated loan market in 2007, we were also

national staff at our overseas offices to become heads

among the global market leaders in project finance inof branches and other operations. To continue to pro-

2007, ranking number five worldwide and number one

vide training and opportunities for advancement to ain the Americas. Moreover, subject to the approval ofdiverse range of personnel, we are actively implement-

the relevant authorities, we are planning to merge

ing diversification policies.

Mizuho Securities and Shinko Securities in May 2009 to

Our third initiative is to create a sophisticated compli-

form a full-service securities company that will rival theance structure suited to our business model. To this end,

current three leaders of the Japanese securities market.

we are aiming to develop significantly more advanced

7

A Message from the President & CEO of Mizuho Corporate Bank, Ltd.
Establishing a Leading Brand as a Global Investment Banksystems that take full account of our responsibilities asa financial institution, including our response to thereview of the firewalls between banking and securities
operations.
As competition among the world's financial institutions grows ever more intense, to establish our presence as a global investment bank, we must build abusiness model of our own, founded on strong andstrict risk-management, and compliance structures.
We will continue the full-scale implementation of
the global strategy that I have outlined and aim toestablish a leading brand presence as a global investment bank. The senior executive officers and employees of Mizuho Corporate Bank share a common awareness and will promote the development of our businessmodel. We look forward to earning your ongoing support and trust.
July 2008

Hiroshi Saito
President & CEO
Mizuho Corporate Bank, Ltd.

8

A Message from the President & CEO of Mizuho Bank, Ltd.

Aiming to Be “Japan's Strongest Retail Bank”

carried out a series of corporate social responsibility(CSR) activities.

We want to grow with our customers sothat they mean it when they say Mizuho
is their “Best Partner.”

A Retrospective on the Year: Aiming toCreate a Rock-Solid Growth Trend
Fiscal 2007, ended March 31, 2008, was the concluding year of the group's “Channel to Discovery” plan. To
gain the maximum benefits from initiatives adopted
thus far and to achieve steady and stable growth inbusiness activities, we identified three elements to support our activities. These were: (a) winning the maximum trust of our customers, (b) creating a rock-solid
growth trend, and (c) working to build the optimalbusiness infrastructure.
About 25 million individual customers have accounts
with Mizuho Bank, and about 100,000 companies, primarily small and medium-sized enterprises (SMEs) andmiddle-market corporations, rely on us for financing. A
common theme we must address is meeting theincreasingly diverse and sophisticated financial needs ofboth individuals and corporations. For that purpose, weoffered speedy services tailored to meet the requirements of our customers based on closer collaboration
among group companies and worked to upgrade ourlineup of services. At the same time, we proactively
promoted a full enforcement of compliance issues and Services for Individual Customers
Mizuho Bank opened new domestic branches during
fiscal 2007 in Ashiya, Gakuenmae, Senri Chuo, andMusashi Sakai, and proceeded with the active openingof “Mizuho Personal Squares,” which are brancheswith a greater focus on convenience for individual customers. Also, to enhance consulting services, weassigned about 2,800 financial consultants (FCs),
who are capable of offering advice in all specialized
areas, to our branches nationwide in Japan andinstalled “Premium Salons,” which are consultation
booths for our customers in branches throughout
Japan. Moreover, we stepped up our installation ofMizuho Investors Securities “Planet Booths” in the lobbies of our branches, thus making available one-stop
services to meet the securities-related needs of customers of the group.
As for our products and services for mass retail customers, we further enhanced the attractiveness of thevarious services offered to members of the Mizuho
Mileage Club, including preferential charges on certain
services. Total membership in this club has now exceeded five million people. Also, to offer peace of mind to
our customers regarding their bank transactions, we
promoted the dissemination of ATM cards incorporating IC chips and biometric authentication (through finger vein verification). In addition, to deal properly withlosses due to forgery and card theft, we provide compensation for such losses involving ATM cards, as provided for under Japan's Depositor Protection Law. Also,in April 2008, we began to provide compensation fordamages arising from the theft of bank passbooks andillegal Internet banking transactions.
In June 2008, legislation to prevent fraud involving
requests for bank transfers went into effect. We areworking proactively to prevent such fraudulent activities and provide assistances including returning money
to customers who have incurred losses due to suchactivities.
Among loan products, we have expanded our lineupof housing loan related services and, through a tie-up

9

A Message from the President & CEO of Mizuho Bank, Ltd.
Aiming to Be “Japan's Strongest Retail Bank”

with Orient Corporation, have created systems thatenable us to respond to a wide range of customer borrowing needs, including the provision of uncollateralized loans.

 Services for Corporate Customers
In our corporate customer business, while stepping up
our activities to develop relationships with new customers, we responded to a wide range of financing
needs in the SMEs and middle-market corporations.
We also worked to provide solutions to customer
needs, such as facilitating business succession and
M&A, providing services for introducing customers ofour bank who best satisfy the business needs of othercustomers (business matching services), and offering
assistance to companies entering or expanding theiroperations in markets outside Japan. As part of ourbusiness matching services, we held the “Environment
Business Matching Forum” in February 2008. This event
had the goal of helping our SME and middle-market
corporation customers to deal with their environmentrelated needs, and it was well received.
Our solution business services are provided as a joint
effort by specialists in our headquarters and by relationship managers of our branches in an effort toendeavor to cover a wide spectrum of management
issues and needs. In addition, we draw on the comprehensive capabilities of the group to respond to customer needs for consultation and services related to
IPOs (initial public offerings), and making arrangements
for business succession. Group companies working in
partnership with us to provide such consultation andservices include Mizuho Investors Securities, Mizuho
Capital, and Mizuho Trust & Banking.
For small-scale companies, we have formed theMizuho Business Finance Center, a subsidiary with a
total of more than 600 experienced staff, which is dedicated to financing small companies and responding
proactively to their needs for funding.
Also, for both individual and corporate customers,
we are continuing to upgrade our Internet-based banking services and actively developing new services formobile phones.

10 Looking to Fiscal 2008: Initiatives Going Forward
We have positioned the current fiscal year as the time
to target establishing Mizuho Bank as “Japan's
Strongest Retail Bank.” To attain this goal, we must
consolidate our management foundations by: (a)strengthening our customer base, (b) enhancing thecapabilities of our human resource base, and (c) creating a powerful earnings base, all with the ultimate
objective of earning a sincere evaluation from individual
and SME and middle-market corporation customers aswell as their owners, for being their “Best Partner.”
To consolidate our management foundations, we will:(a) Strengthen our customer base by building unshakeable bonds of trust with our customers and winning their satisfaction;(b) Enhance the capabilities of our human resourcebase by creating top-level personnel in all areas; and(c) Create a powerful earnings base by achieving aminimal but powerful cost structure and a highly
efficient business model.
The major assumptions behind strengthening thesethree bases — customer base, human resource base,and earnings base — are continued strict emphasis oncompliance and customer protection combined withthe proactive pursuit of our CSR activities, as typified
by our “Heartful Project.”
In individual customer business, we will substantiallystrengthen our marketing activities, increase the volume of customer assets under management, andexpand our interface with customers through improving our core products such as Mizuho Mileage Club,and work to achieve leaps forward in this area.
In the human resources field, we will aim for
expanding our FC staff to 4,000 in three years, whilefurther improving the quality of services they can offer.
In our manned business locations, we will promote theestablishment of offices serving individual customers,
with the goal of increasing the number of offices from
423 as of March 31, 2008, to 500 in three years.
In corporate customer business, we will strengthen
the capabilities of our personnel and improve skills incredit management, and, drawing on the comprehensive capabilities of the group, work to achieve steady
growth. In human resources, we will make further

upgrades in our professional staff training project that
we began last year, and work to deepen relationships
with our customers. In addition, we will continue tostrengthen our ties with Mizuho Investors Securities
and Mizuho Trust & Banking through the exchange of
personnel and other means, with the aim of drawing
to the maximum extent possible on the comprehensive
capabilities of the group.
We will also endeavor to move collaboration within
the group to a higher level. In April 2008, we established the Consulting Division, which has the objectiveof responding to the needs of business owners both intheir capacity as corporate managers and as individuals.
In addition, we formed a new business division, theBusiness Promotion Division for Employees of Corporate
Customers, which will be responsible for marketing
individual banking services to employees of corporate
customers, including clients of Mizuho Corporate Bank.
These activities are intended to establish our strengths
through collaboration across corporate and individual
customers and among group companies.
To make our customers really mean it when they say“Mizuho Bank is our Best Partner,” the senior executive officers and employees of Mizuho Bank are working as one and exerting their fullest efforts. As we continue to work toward our objectives, we look forward
to your continuing support.
July 2008

Seiji Sugiyama
President & CEO
Mizuho Bank, Ltd.

11

Securities, Trust and Asset Management Business Strategies

Basic Strategy for the Securities Businessconnection with their capital structure planning. In thisIn order to pursue greater synergies by strengthening

way, it aims to become the customer's first choice ascooperation between group banks and securities com-the most trusted securities company by providing care-panies and exploiting its overall strengths, the groupfully tailored, high-quality products and securities ser-has promoted integrated banking and securities opera-

vices in a speedy manner.

tions based on customer segmentation, while ensuringthat the securities companies make the most of their

Shinko Securities

capabilities and advantages.

Shinko Securities is a comprehensive securities company with a nationwide network that offers a full range

Strengths and Characteristics of the Group's
Three Securities Companiesof services from underwriting to brokerage. ThroughMizuho Securities

nies, it uses its full-line functions to provide middle

MHSC is a wholesale securities company that offers

market/retail customers with a wide selection of finan-

high-quality, specialized solutions in response to thecial products and services. Its cooperation with groupwide-ranging needs of domestic and international insti-

companies include cooperating with MHBK in the sales

tutional investors, corporations, financial institutionsof wrap accounts and trust businesses for MHTB as anand public sector entities.

agent.

dynamic and efficient cooperation with group compa-

It occupies a top position among the major securities companies in the area of bond underwriting and

Because the turmoil in the financial markets is ongoing

boasts a strong presence in bond sales. In the equity-and the electronic share certificate system is scheduled

related business, it offers a full range of services andto be implemented in January 2009, the merger

has raised its market standing to a position close to

between MHSC and Shinko Securities has been post-that of the major securities companies.

poned from May 2008 to May 2009 (scheduled).

It has already established a top-level presence in the

Mizuho Securities, the merged new entity, will offer

area of M&A and other financial advisory services forcompetitive cutting-edge financial services on a global

Japanese clients, and has a track record in structured

basis through the combining of MHSC's global invest-

finance that puts it among the market leaders in Japan.

ment banking business platform, and Shinko Securities'

MHSC also aims to satisfy the diversified needs ofnationwide customer base and business network as aclients who are active at home and abroad by offering
seamless domestic and overseas business services
through its network of overseas securities subsidiaries.
Mizuho Investors Securities
MHIS is working to expand its cooperative channels
with MHBK by proactively establishing a network ofjoint branches. It is also strengthening ties with thegroup, promoting a financial instruments intermediaryservice with MHBK, a trust business with MHTB as anagent and its IPO business through cooperative efforts
with other group companies. With this as its operational base, MHIS responds to customers' asset investment needs by offering various securities-related solutions, and to their funding needs by offering stock andbond underwriting services, and consulting services in

12full-service securities company covering all of Japan.

Basic Strategy for the Trust Businessbusiness providing advisory services in connection with

The group is working to deliver the best solutions tolegal matters affecting stocks.

clients through MHTB, which offers a full range of trust

As the environment affecting the trust businessservices as the core of the Global Asset & Wealthrapidly evolves, MHTB will proactively develop and offer

Management Group, and Trust & Custody Services

new products and services that accurately match clients'

Bank (TCSB), which offers high-level custody services.

needs by seizing the opportunities presented by legisla-

By promoting greater cooperation between the group's

tive and other environmental changes, and promoting

banking, securities and asset management companies,

greater cooperation among the group companies.

and offering products and services through businesstie-ups with external entities, we will respond toclients' diversifying needs quickly and accurately.

Mizuho Trust & Banking
MHTB gives top priority to identifying clients' opinions
and needs, and to speedily and accurately offering
them solutions in the form of original products and services that make full use of the highly specialized consulting expertise and the rich know-how it has accumulated over many years. In this way, it aims to enhance
its reputation and become “the trust bank that clientstrust most.”
For individual clients, it offers all kinds of services
pertaining to wealth management, from consulting inconnection with overall asset management and investment to the management and execution of wills, loan
products, deposits and investment trusts, and asset
management products that utilize its trust functions. In
the area of testamentary trusts in particular, MHTB's
experienced professionals have earned an excellent
reputation for their carefully-tailored services. MHTB is
offering services to an even larger number of clients
through its network of agents at MHBK, and has oneof the highest balances of such trusts in the sector.
MHTB offers a wide range of services and optimal
solutions for managing the assets of corporate clients.
These cover brokerage, securitization and otheraspects of the real estate business; structured products
business offering new services in the area of asset
securitization using trust schemes to the maximum;
pension and other asset management business; pension business ranging from pension trusts and consulting to actuarial and management services; asset
administration business from investment trusts toinvesting and managing securities; and stock strategy

Trust & Custody Services Bank
Based on its advanced systems infrastructure and highly transparent internal control systems, TCSB provides
financial institutions, institutional investors and otherclients with high-quality, high value-added trust andcustody services, and comprehensive asset administration services. TCSB also responds to clients' high-level
custody requirements through participation in the“account-management institution business,” developed in response to securities settlement systems andinfrastructure reform in Japan, and through the provision of securities lending services.

Basic Strategy for the Asset Management
Business
In the investment trust and pensions markets, we aim tobecome one of the world's leading players in terms ofboth quality of services and assets under management.
On July 1, 2007, Dai-Ichi Kangyo Asset Management
and Fuji Investment Management merged to become
Mizuho Asset Management (MHAM). On January 1, 2008,
DLIBJ Asset Management changed its name to DIAM.
Our asset management companies, MHAM and
DIAM, both make the most of their individual specialties in offering high-quality products and services toboth group and non-group clients. In the distributionof investment trusts, they offer a widely varied line-upof products designed to meet the increasingly complex
and sophisticated needs of clients.
In the Japanese defined contribution pension business, we are channeling our total resources into providing solutions for corporate management issues by supporting the formation of assets for individuals to enjoy
in their retirement.

13

Business Outline

We precisely and swiftly provide products, services and business solutions to meet the diversified
financial needs of our customers by actively pursuing group synergies.

Mizuho Securities(MHSC)*1

Securities
Business

A wholesale securities
company whose mainclients are institutional
investors, corporations,and financial and public
institutions.

Mizuho Corporate Bank(MHCB)MHCB focuses its business on corporate finance, primarily serving
large corporations (such as thoselisted on the first sections of domestic stock exchanges), financial
institutions and their group companies, public sector entities, andoverseas corporations including
subsidiaries of Japanese companies.

Trust and
Asset
Management
Business

MizuhoTrust & Banking(MHTB)
A trust bank that possesses strengths in boththe corporate and individual markets.

UC CardMizuho Bank(MHBK)

Other
Businesses

MizuhoResearch
Institute(MHRI)MHBK serves primarily
individuals, SMEs, andmiddle-market corporations,and local governments in Japan.

A think tank.

Overseas
Subsidiaries

14

A leader among
credit cardcompanies in Japan.

Banking Subsidiaries
Derivatives Subsidiaries
Securities Subsidiaries
Trust Banking
Subsidiaries
Asset Management
Subsidiaries, etc.

MizuhoInvestors
Securities(MHIS)A securities company
that focuses on serving
the group's customers.

ShinkoSecurities*1
A full-service securities
company that focuseson the middle andretail markets.

Trust & Custody
Services Bank(TCSB)

DefinedContribution
Plan Services(DCPS)

Mizuho AssetManagement(MHAM)*2

DIAM*3A highly specialized
trust bank focusing on
the custody business.

An entity that specializes in managing defined contribution pension plans.

An assetmanagement company.

An assetmanagement company.

MizuhoPrivate WealthManagement(MHPW)

MizuhoTrust Realty
Company

MizuhoCreditGuarantee

MizuhoCapitalMizuhoFactors

A wealth management
services company.

A real estate agency.

A credit guarantee
and real estate
research company.

A principal
venture capitalcompany.

A factoring company.

MizuhoInformation &Research Institute(MHIR)

Mizuho-DL
Financial
Technology

MizuhoFinancial
Strategy(MHFS)An IT-relatedcompany.

A research anddevelopment companyof financial technology.

An advisory company
for financial institutions.

*1. Subject to the approval of the shareholders' meetings of both companies and the relevant authorities, MHSC and Shinko
Securities will merge as of a target date of May 7, 2009.
*2. Dai-Ichi Kangyo Asset Management and Fuji Investment Management merged as of July 1, 2007 and became Mizuho AssetManagement (MHAM).
*3. DLIBJ Asset Management changed the company name to DIAM as of January 1, 2008.

15

Office Network

We utilize our office network, which covers every prefecture in Japan as well as major overseas cities,
to respond to our customers' diversified and globalizing financial needs while supporting the smooth
progress of economic activities.

International Network (As of July 31, 2008)
MHCB
 Overseas branch or relevant office Overseas representative office Major overseas subsidiary or relevant office
MHSC Overseas subsidiary Overseas representative office
MHTB Overseas subsidiary Overseas representative office

Beijing
LondonAmsterdam

TianjinDüsseldorf
Frankfurt
DalianLuxembourg
Moscow

Brussels

Qingdao
Seoul

Vienna

Paris

Wuxi

Nanjing
Wuhan
XiamenZurichTehranMilan

Shenzhen

New Delhi
Bahrain
Dubai

ShanghaiTaipeiTaichung
Kaohsiung

Guangzhou
Hong Kong
Mumbai
Hanoi

ManilaBangkok
Ho Chi Minh City

Kuala Lumpur
Singapore
SydneyLabuanJakarta16

MHCB's Newly Established Offices (April 2007 — July 2008)
2007
April

Milan Branch opened

May

Mexico Representative Office commenced business promotion activities

June

Mizuho Corporate Bank (China) established.
Mizuho Corporate Bank (USA) established four representative offices in the U.S. (Atlanta, Chicago, Houston, Los
Angeles)Dubai Branch opened

TorontoJuly

Mizuho Corporate Bank (China) Tianjin Branch opened

OctoberMizuho Corporate Bank (China) Dalian Economic &Technological Development Area Sub-Branch opened

November Canada Branch and Vancouver Office opened
2008
January

April

MHCB and its subsidiary acquired 100% of the issued
and outstanding shares of Michinoku Bank (Moscow),
renaming it the ZAO Mizuho Corporate Bank (Moscow)in April 2008
Taichung Branch opened
Qingdao Branch opened

Vancouver
ChicagoSan Jose
Los Angeles
New York
HoustonCaymanMexico City

Atlanta

Network in Japan (As of July 31, 2008)
MHCB
Head Office and Branches: 18

MHBK
Head Office and Branches: 406
Sub-branches: 37
Agencies: 47

São PauloMHSC
Head Office and Department: 2

MHTB
Head Office and Branches: 35
Sub-branch: 217

Business Approaches Adopted by Each Global Group

Global Corporate Group

Approaches to Large and Global Corporations, and Other Entities
Business Environment and Overview of the Global Corporate Group
Business sentiment in the Japanese economy is deteriorating because softer export prices caused by the rising yen and soaring prices for crude oil and raw materials are eroding corporate earnings. There are concerns that a sharp deceleration in
the U.S. economy due to the subprime loan problem and growing signs of a slowdown in Europe's economy will affect the
global economy.
Under these conditions, clients among large, global corporations and other entities expect financial institutions to do
more than simply resolve their financial issues in areas such as funding and financial efficiency. Indeed, their needs have
expanded to include medium-term structural issues such as the environment and Japan's falling birthrate, as well as the
yen's appreciation and higher prices for energy and raw materials.
For a financial group to enhance its competitiveness in satisfying these needs, it is essential to offer sophisticated, innovative solutions that transcend conventional concepts and frameworks by combining financial functions such as banking,securities and trusts.
To respond to the needs of large and global corporations and other entities, the Global Corporate Group provides highly
specialized, innovative solutions by leveraging its all-round financial capabilities, and promoting closer cooperation between
the global corporate banking sector and the wholesale securities sector.

18

GLOBAL CORPORATE GROUPKey Group Companies

Highlights

 Mizuho Corporate Bank MHCBMHCB provides optimal solutions to the increasingly• Opened several new offices, including the Milan
Branch, the Dubai Branch, and the Canada Branch,and became the first Japanese bank to establish an
overseas subsidiary in China. Also acquired 100% of
the issued and outstanding shares of Michinoku Bank
(Moscow) from Michinoku Bank, and renamed it“ZAO Mizuho Corporate Bank (Moscow).”

diverse and sophisticated needs of clients in the areas ofboth finance and business strategies, focusing its efforts
on serving major corporations (such as those listed on
the first sections of domestic stock exchanges), financial
institutions and their group companies, public sector
entities, and overseas corporations including subsidiaries
of Japanese corporations.
Specifically, it is revamping its organization to dramatically strengthen its ability to provide solutions
through competitive services at the global level.
In addition to taking full advantage of the functionsof other group companies such as MHBK, MHSC and
MHTB, it is cooperating with foreign investment banks
and various types of investment funds as it pursues a“deal after deal” marketing strategy that offers clients
cutting-edge financial solutions on a continuous, multifaceted basis.

 Mizuho Securities
MHSC is a wholesale securities company that offers
high-quality, specialized solutions in response to thewide-ranging needs of domestic and overseas institutional investors, corporations, financial institutions andpublic sector entities.
Its Global Investment Banking Groups offer services
ranging from stock and bond underwriting and support
for IPOs to financial and capital policy advisory services,
M&A advisory services and structured finance. The
Global Markets & Products Groups engage in stock andbond trading, and offer research reports and investment• Continued to promote business and capital ties withfinancial institutions in other countries, such as thealliance agreement with the State Bank of India.
• Proactively engaged in investment banking operations, leveraging its financial holding company (FHC)
status in the U.S., which it obtained in 2006.
• Claimed the number five spot in the Thomson Reutersworld ranking of project finance arrangers, and was
number one in the U.S.

 MHSC• Postponed the effective date of the merger with
Shinko Securities until May 7, 2009, due to continuing financial and capital market dislocation stemmingfrom U.S. subprime loan issues, and the implementation of the electric share certificate system scheduled
for January 2009. The merger is subject to theapproval of the shareholders' meetings of both companies and the relevant authorities.
• Implemented the “Business Restructuring Program”
with a view to reforming its business operations
structure.
• Established a wholly-owned subsidiary, Mizuho
Investment Consulting (Shanghai), to provide Chinarelated consulting services.
• Received the Thomson Reuters “Innovative Straight
Bond Deal of the Year” and “Samurai Bond of theYear” awards.

instruments.

19

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Development of Global Strategies
Strengthening Global Business in Response to the Changing Market Environment
MHCB is expanding its overseas network with a focus on growing markets in Asia, while at the same time strengthening
business ties with overseas financial institutions through alliances and investments.
In order to provide a full range of investment banking services in the U.S., MHCB is aggressively utilizing its financial
holding company (FHC) status, which it obtained in 2006. Although the dislocation in the financial markets in fiscal 2007
had a measurable effect on business, the Global Corporate Group has been strengthening the integration between its
banking and securities operations, resulting in a solid performance in U.S. corporate bonds and equity underwriting.
Glossary FHC Status
This status enables a banking group to engage in a broad range of investment banking businesses in the U.S., including the underwriting of salesof corporate bonds and equities.

Building a Solid Management Framework to Promptly Respond to Changes in the Market Environment
By adopting advanced portfolio management methods and diverse, sophisticated hedging methods, as well as enhancing
its ability to respond to the price risk in credit products, MHCB is building a robust management framework that can
respond quickly to changes in the market environment and deal with credit and market risk.
In this way, MHCB is deploying a globally-based strategy that reflects changes in the market environment, and building
a solid risk management structure, as it aims to establish itself as a top brand name in global investment banking andbecome the most trusted “bank of choice” among its clients.

Further Progress in Globalization
Strengthening the Global Network
As its clients' business activities become increasingly global, MHCB continues to enhance its network of branches and subsidiaries, enabling it to continue to meet clients' needs overseas promptly and efficiently.
In fiscal 2007, MHCB opened the Milan Branch (April) and the Toronto Branch (November). Also, in June, MHCB established Mizuho Corporate Bank (China) and placed its five existing China branches (Shanghai, Beijing, Shenzhen, Dalianand Wuxi) under the new subsidiary, which then opened its Tianjin Branch in July. Other new offices include the Mexico
Representative Office (May), the Dubai Branch (June), and the Vancouver Office (November). Additionally, MHCB and oneof its subsidiaries acquired 100% of the issued and outstanding shares of Michinoku Bank (Moscow), renaming it the“ZAO Mizuho Corporate Bank (Moscow)” in April 2008.
Also in April 2008, MHCB opened the Taichung Branch in Taiwan, while Mizuho Corporate Bank (China) opened its
Qingdao Branch. MHCB will continue to carefully analyze medium- to long-term economic forecasts and client trends inthese regions with a view to maintaining its flexible, proactive office-network development strategy.

Promoting Strategic Alliances
Aiming to meet the needs of its clients in regions and for products not covered by its network, MHCB is strengthening
and enhancing relationships with leading local financial institutions through business tie-ups and equity investments.
In October 2007, it concluded a Memorandum of Understanding for a business alliance with China CITIC Bank
Corporation, and in January 2008, signed an alliance agreement with the State Bank of India, India's largest bank. MHCB
will continue to build collaborative relationships to enable it to continue meeting the increasingly diverse and sophisticatedneeds of clients.
20

GLOBAL CORPORATE GROUP
Sharing Clients' Global Growth Strategies
Based on its “Global Declaration” and its “Investment Bank Declaration,” MHCB is drawing on its robust, long-term relationships with clients in the area of commercial banking operations to develop its “solutions business,” and thus help
raise its clients' corporate value over the medium- to long-term.
Acting as relationship managers (RMs) for the entire group and employing a “strategic advisory service-based solutions
business approach” as their code of behavior, MHCB's RMs identify the management issues clients face amidst intensifying global competition. They offer M&A advisory services, various forms of securitization, syndicated loans, pensions andcash management systems (CMS), and make maximum use of the banking, securities, trust and other specialist functions
embodied within the group to offer the best possible financial solutions on a global basis.
The environment facing clients is changing rapidly as a result of growing activity in the area of strategic cross-bordercorporate alliances and increasingly fierce competition for market share in emerging markets overseas. MHCB's Industry
Research Division has led the field of domestic industrial research for many years, and has now established its offices in
New York and London to strengthen its industrial research capabilities on a global basis, allowing it to work with its
clients in tackling management issues and strengthening its functions as a global partner.
Combining CB (Commercial Banking) and IB (Investment Banking) Functions
Strategic advisory functions from the perspective of enhancing clients' corporate value

Support for global operations(CB business)
Lending, settlement

Identify andshare clients'
global growthstrategies

Support for global growth strategies(IB business)
Cross-border M&A, Financial solutions

Use the IB business to create and supplement CB business

Solutions for Financial Institutions and Public Sector Entities Financial Institutions
MHCB offers the financial institutions among its clientele appropriate proposals for comprehensive solutions in such areas
as financial strategies and risk management. In order to respond to clients' increasingly diverse and sophisticated investment needs, MHCB's investment proposals have come to embrace new products and investment instruments, including
crossborder syndicated loans, and investment products incorporating tailor-made investment trusts and structured credit
products. MHCB also draws on the financial functions of group companies for creating proposals for high-quality advisory
services and solutions to management issues associated with strengthening clients' management structures. These include
capital policies, removing assets from the balance sheet, offering products for retail and internal control schemes.

 Public Sector Entities
As administrative and fiscal reforms of local governments, special public corporation reforms and other reforms affecting
the public sector are progressing, MHCB endeavors to propose optimal solutions to the highly diverse and sophisticatedneeds of public sector clients by bringing together the extensive expertise and know-how of group companies. In the areaof diversifying financial needs, examples include the introduction of private finance initiatives (PFI), the arrangement ofsyndicated loans and asset securitization, as well as advisory entrustment and the proposal of derivative products to meetincreasingly complex risk management needs.
In the public bond business, MHCB provides issuers with stable support for funding using its strong record and richexperience as a leading bank.

21

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Offering Financial Solutions at the Global Level
Sophisticated Financial Services to Match Clients' Needs
 Business Finance
When arranging business finance, it is essential to be able to identify business risk and utilize sophisticated financial engineering skills that bring together expertise in the law, accounting and taxation. A typical example of MHCB's expertise inthis area is the ¥10 billion syndicated loan it lead-managed for a systems project to allow different services to make common use of Suica and PASMO IC cards.
In another form of business financing, MHCB served as joint lead manager in a ¥1,450 billion business securitizationfor Softbank's acquisition of Vodafone Japan's business, a major, top-class deal in the global market.

 Leveraged Finance and MBOs
MHCB has endeavored to help clients raise their corporate value through business restructuring by promoting leveraged
finance. In the MBO/LBO sectors in particular, it provides various solutions and arranges finance in large-scale businessrestructurings including divestitures of clients' business divisions and subsidiaries. It has also adopted a proactive
approach to cross-border deals and compiled an excellent track record in the sector for leveraged finance transactions at
the global level.
Group companies, Mizuho Corporate Advisory and Mizuho Capital Partners, provide advisory services in connection
with MBOs and financial strategies, as well as responding to clients' increasingly sophisticated financial needs throughinvestments by their managed MBO funds and mezzanine funds.

 Project Finance
Project finance has to be tailored to different businessstructures depending on the deal in question, andrequires sophisticated skills and a rich store of knowl-

Project Finance Global Mandated Lead Arranger Table(January to December 2007)

Rank Company nameedge. MHCB is a key player in this area, ranking fifth in
the world and first in the U.S. on an arrangement value
basis in 2007.
Thanks to its record in this area, its appointment as anindependent financial advisor (FA) for the Panama Canal
expansion project in 2007 was followed by its selection
by Singapore's Energy Market Authority as an independent FA for a project to develop a LNG receiving terminal
in 2008. In Japan, it acted as lead manager in arranging a¥90 billion syndicated loan for the “Construction,

1
2
3
4
5
6
7
8
9
10

BNP Paribas
RBS
Dexia
CalyonMizuho Financial GroupBank of Scotland
Societe Generale
SMBC
SBI Capital
Mitsubishi UFJ Financial

Amount(millions of US$)No. oftransactions

14,580.2
11,760.4
9,230.8
8,346.3
7,280.5
6,551.7
6,193.1
4,872.9
4,870.1
4,772.2

94
68
61
55
51
31
42
49
16
33

Source: Thomson Reuters

Maintenance and Management Project of The
International Passenger Terminal Building of Tokyo
International Airport.”
MHCB thus provides optimal solutions to the diverse
needs of its clients by arranging limited recourse financeand giving financial advice on various projects in Japanand overseas.

 Real Estate Finance
MHCB, as a leading player in the real estate finance business, has always dealt with such cutting-edge projects as largescale development finance projects associated with urban renewal, including the Tokyo Midtown Project, which redeveloped a site once occupied by the Defense Agency.

22

GLOBAL CORPORATE GROUPAs globalization fuels rapid changes and expansion in the real estate market, it is providing clients with optimal solutions for their efforts in areas like financial and business strategies, and domestic and overseas real estate deals. In doingso, it draws on its strong record and rich experience in real estate finance, its real estate-related advisory functions and its
links with overseas branches.

 Asset Finance
MHCB supports clients' financial strategies by offering optimal solutions through the arrangement of securitization programs. These services satisfy clients' needs to diversify funding with asset securitization, as well as needs to improve their
management indices through removing assets from the balance sheet.
It offers sophisticated, specialist products and solutions, and satisfies investors' diverse needs by utilizing a wide rangeof finance solutions using securitization methods such as inventory finance and structured lease, as well as using syndication methods.

Promoting the Value-Added and Globalization of the Syndication Business
MHCB has been engaged in the syndication businesssince its inception and has played a major part in the

Trends in Japan's Syndicated Loan Market andMizuho's Sharedevelopment of a sound market. In addition to fostering(Trillions of ¥)market growth, MHCB has provided many products thatoffer high added value by making proactive use of the30
25

syndication function. These include “Ninja Loans” forforeign companies and sovereign entities raising funds in
the Japanese market. They also include earthquake disaster response deals known as “Renaissance Commitment
Lines” to facilitate financing when disastrous earth-20

Arrangement of Syndicated
Loans in Japan (Fiscal 2007)
Mizuho's
Share:
36%

15
10

quakes occur. In the area of loan trading — an effective
tool for managing the credit portfolios of financial institutions — MHCB made a major contribution to thedevelopment of the loan trading market, handling deals
amounting to almost ¥1 trillion in fiscal 2007.
Having deployed syndication specialists at its offices in

50Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Sources: Fiscal 1998 – Fiscal 2002: Thomson Reuters
Fiscal 2003 – Fiscal 2007: Bank of Japan statistics(Market share calculated by MHCB)New York, London and Asia, and strengthened its global
syndication framework through tie-ups around theworld, it will continue to provide appropriate solutions
for clients expanding their global businesses in a wide
range of areas.
MHCB will continue to proactively respond to its
clients' wide-ranging needs by making use of its syndication functions from a global perspective without being
hidebound by traditional methodologies.

Global Portfolio Management Diversifies and Becomes more Sophisticated
MHCB has been proactively engaged in global portfolio management (GPM) as part of its efforts to promote its “originate
to distribute” business model. It is working to maintain and enhance the soundness and profitability of its global credit
portfolio by strategically rebalancing its assets and controlling credit risk by utilizing the credit market to respond tochanges in the status of the bank's entire credit portfolio and the macro economic situation.

23

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Specifically, MHCB is expanding its efforts in loan sales and hedging through credit derivatives and securitization targeting the credit of domestic and foreign companies. In addition, it endeavors to sophisticate and diversify its operation,for example, responding to the credit price fluctuation risk that emerged as a result of the subprime loan issues.
In order to respond more flexibly and timely to its clients' increasingly global and diversified finance needs, it intends tostrengthen its efforts in the area of GPM.

Promoting the Global Transaction Business e-Business
MHCB responds to clients' needs for greater efficiency in fund operations by offering the Mizuho Advanced CMS cash management system as its core solution product for pooling, agency payment services and other solutions for managing funds.
It also offers sophisticated cash management solutions at a global level to clients with overseas offices through theMizuho Global CMS and the Mizuho Global Pooling Service.

 Trade BusinessSpecialist divisions, and domestic and overseas offices cooperate in business promotion by proposing global-based solutions.
MHCB proposes solutions to clients for hedging the potential currency exchange risk in their balance sheet and cash
flow, issues guarantees for large value transactions in various export products and provides accounts for projects inemerging countries. In addition, we support our customers by providing the most advanced financial products optimized
for all of their trade-related financial needs and overseas investments, by, for example, providing structured trade finance,
commodity finance and ECA finance (finance co-working with various Export Credit Agencies in developing countries).

 Yen Cash and Securities Settlements BusinessAs a leading player in the area of yen cash and securities settlement services such as foreign exchange settlement and custody, MHCB has continued to upgrade its systems, make operations more solid and efficient, and enhance its service quality with a view to better responding to ongoing fund and securities settlement reforms, and clients' increasingly diversified
needs. Recently, Euroclear, the world's largest international securities settlement service provider, has designated MHCB
as the sole custodian for JGB transactions.

 Pensions Business
Drawing on total group strengths to offer comprehensive pension services, MHCB has a top class number of participantsin the field of defined contribution pension plans in Japan. MHCB also acts as a trust agent for MHTB.

Approaches to the Global Alternative Investment Business
Against the background of the diversifying investment
needs of institutional investors, MHCB is engaged in a

The Positioning of the Alternative Investment BusinessIndex funds

rapidly growing and expanding area of the global whole-

Real estate

Hedge funds

sale market — the “alternative” asset management business aimed at professional investors such as institutional

Listed investment
trusts The Alternative Asset Management Business
The alternative asset management business provides global institutional investors with sophisticated investment products that go
beyond traditional investment assets like stocks and bonds. They
include commodity funds, real estate funds and credit funds, andsophisticated investment products such as hedge funds created via
various investment strategies, including arbitrage transactions.

24

GrowthGlossary

Averageinvestors and pension funds.

Marketrelated
segments

Private equity
funds
Quantsproducts
Alternative segments
Huge
potential

Money market
Stocks
Bonds
Traditional segments

Fee level

GLOBAL CORPORATE GROUP
Although the market environment has been extremely unstable since fiscal 2007, diversification of investment assets
remains a hot topic among institutional investors and pension funds, and continuing demand is expected for alternative
investments such as hedge funds, because they have little correlation with traditional investment assets such as equities
and bonds.

 Mizuho Alternative Investments Registered with the SEC in the U.S.
In April 2007, MHCB and MHSC jointly established an asset management company called Mizuho Alternative Investmentsin the U.S. The company is engaged in business in connection with CLOs, systems trading and credit arbitrage funds.
In addition to expanding its product lineup, which has a strategic focus on asset management business centered onalternative investment products, the company completed procedures for registering with the SEC as an investment advisory company in February 2008 as part of its efforts to improve its standing as an investment management company.

 Future Business Development
In light of the recent market environment, MHCB has been strengthening its risk management structure and plans toestablish an investment company in Tokyo to create more attractive investment products that reflect changes in clients'
needs, and will work to expand its business further.
It is also offering services that draw on the all-round strengths of group companies through appropriate tie-ups with
MHSC, MHTB, and Mizuho's asset management companies.

Boosting Global Sales and Trading Capabilities
In the sales and trading business, MHCB is working to consolidate its market reputation as a top-level “solutions provider”
by offering optimal solutions that use cutting-edge financial technologies to satisfy clients' diversified financial and business risk control needs.
MHCB has established a position as a top global player alongside the leading Western investment banks in the interest
rate- and exchange-related derivatives segments, earning top five placings in Risk magazine's “Corporate End-User Survey
2008” in four areas — yen interest rate swaps, dollar/yen currency swaps, yen interest exotics, and yen FRA.
It has expanded its product lineup from basic areas such as interest rates and foreign exchange to oil, metals, weather
and other commodity derivatives, and ultra-long-term, low-liquidity currency derivatives. It continues to offer high-quality
solutions to increasingly globalized clients by expanding its product range for local currency transactions in countries
around the world and to strengthen its trading capabilities, thus maintaining its efforts to become the most relied-on“bank of choice.”Through its tie-up with Mizuho-DL Financial Technology (a group company specializing in the development of financial
technology), it offers sophisticated risk control methodologies that incorporate dynamic foreign exchange hedging — astatistical/probabilistic exchange risk hedging method that eliminates market views and arbitrariness — and loans thatincorporate commodity derivatives, to take care of areas that are not covered by existing risk management methods.

25

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Global Investment Bank
As an investment bank operating at the global level, MHSC offers high-quality, specialized solutions in response to thewide-ranging needs of clients such as domestic and international institutional investors, corporations, financial institutions,businesses and public sector entities. It aims to contribute to the realization of a better society that will continue to develop on an ongoing basis by ensuring strict legal compliance while helping to nurture and develop the capital market
through corporate activities.

Reinforcing Internal Control Systems and Business Operation Structures
In light of the large losses posted by its CDO-related business, MHSC has already reviewed its risk management and otherinternal control systems, and is working on implementing strengthening measures. MHSC is also engaged in comprehensive
reforms of its business operation structures as part of efforts to rapidly implement the Business Restructuring Program
announced in April 2008.
More specifically, it is endeavouring to recover and strengthen its earning power by further improving the balance of its
management resources allocation. It is also making steady progress in strengthening risk management corresponding tomarket-related businesses and the management framework for its overseas offices. To ensure that the organization is managed with greater efficiency and agility, MHSC is moving quickly to streamline its operations by reducing the number of
departments by 50%, downsizing its workforce by approximately 300 through voluntary resignations and other means,
reducing consolidated expenses by 20% compared with fiscal 2007, and decreasing compensation for board members.

Global Investment Banking Groups
In the area of bond underwriting operations, one of its
longstanding strengths, MHSC has maintained its sectorterm relationships of trust with clients as a result of its
powerful bond selling capabilities, its ability to set prices to

Rank Company nameleading performance. It is also continuing to build long-reflect clients' demand with precision, and respond rapidly
to changes in the market. MHSC is strengthening its initiatives in the equities underwriting business, which it views
as a strategic sector, and has grown to occupy a place as amajor player by winning mandates as the lead manager inmajor finance deals.
In the area of M&A advisory services, it is able to draw
on its advanced sectoral knowledge and know-how to provide advice that suits clients' management strategies, winning a top-class reputation for capabilities that consistently
place it on the top rung of advisory rankings. Furthermore,
MHSC is continuing to reinforce its ability to put forwardand execute proposals in line with clients' business strategy
needs, and create new business opportunities. It is now

26

Total SB League Table(including samurai bonds and municipal bonds, and excluding
retail-targeted)*Lead managing amount basis. Total amount of issues: ¥13,590.9 billion.
(April 2007-March 2008)

1
2
3
4
5

Mizuho Securities
Mitsubishi UFJ Securities
Daiwa Securities SMBC
Nomura Securities
Nikko Citigroup

Amount(billions of ¥)2,916.6
2,546.4
2,293.7
2,290.0
1,337.3

Share
(%)
21.46
18.74
16.88
16.85
9.84

Source: Calculated by MHSC, based on data from I-N Information Systems

GLOBAL CORPORATE GROUP
ranked among the market leaders in Japan in the structured finance sector, notably in securitizing real estate and monetary claims, due to its superior human resources and know-how.

Global Markets & Products Groups
Having carved for itself a position as a market leader in the bond business from the beginning, MHSC continues to provide products that best suit its clients' investment strategies, engaging proactively in market-making and offering highquality information. In the equity business, it is enhancing its market presence and responding effectively to clients'
increasingly sophisticated needs. Furthermore, MHSC's ability to respond to client needs and expand market presenceboth at home and overseas is being continually enhanced in areas that include selling to overseas investors, engaging in
trading in overseas stocks, and arranging and offering a variety of high value-added products.
MHSC is also rapidly adapting to the change in money flow as the shift away “from savings toward investments”
spreads to individuals as well as institutional investors and corporations, proactively engaging in financial instrumentsintermediary service (securities sales agency) through regional financial institutions.

Further Strengthening Global Operations
As a core company responsible for the Global Corporate Group's securities business, MHSC has deployed securities subsidiaries in the U.K., the U.S., Hong Kong, Switzerland and other overseas financial markets. This has strengthened its
operating structure as a global investment bank that underwrites and sells equities and corporate bonds, and engages in
the M&A advisory business. When MHCB obtained financial holding company (FHC) status in the U.S. in December 2006,
it became possible for Mizuho Securities USA to engage in the full-licensed securities business in the U.S.

Merger with Shinko Securities
MHSC and Shinko Securities had been in negotiation regarding the amendment of the merger agreement, in which theeffective date of merger was to be initially postponed until May 2008. However, in light of the continuing dislocation in
the financial and capital markets triggered by subprime loan issues in the U.S., and the implementation of the electricshare certificate system scheduled for January 2009, the planned merger has now been rescheduled to come into force
on May 7, 2009. The merger is subject to the approval of the shareholders' meetings of both companies and the relevant authorities.

27

Business Approaches Adopted by Each Global Group

Global Retail Group

Targeting Individuals, SMEs and Middle-Market Corporations
Business Environment and Overview of the Global Retail Group The Environment Facing Individual Customers
Against the background of an aging society with falling birthrates and other societal changes, as well as recent trends ininterest rates and changes in the economic environment, customers' needs have diversified and become more sophisticated,while progress in deregulation has engendered new banking products and services. Furthermore, although technologicaldevelopments like the Internet have encouraged these trends, new issues have arisen in such areas as the handling of personal information and security. In this more complex financial society, banks must offer products that better match the customer's life stage, and have superior security functions and convenient channel networks. They must also build up relationships of even greater trust with customers through sincere communications based on accountability.

 The Environment Facing SMEs and Middle-Market Corporations
Although business sentiment in the Japanese economy is deteriorating because the rising yen, soaring prices for crude oiland raw materials, and weak consumer spending are eroding corporate earnings, it is essential to instill a new sense ofvitality into the Japanese economy by promoting the creation and development of SMEs and middle-market corporations
with growth potential, and venture businesses with a revolutionary, challenging spirit. Banks are strongly required torespond to these corporate customers' needs for stable lending services and management issue resolution.
With the close cooperation of the group companies of Mizuho and leading domestic and international companies, theGlobal Retail Group provides top-level products and services on a global scale in response to the increasingly diversified
and globalized needs of individuals, SMEs and middle-market companies.

28

GLOBAL RETAIL GROUPKey Group Companies

Highlights

 Mizuho Bank Mizuho BankMHBK is proactively establishing “Mizuho Personal

Approaches to Individual Customers

Squares” — branches with a greater focus on conve-• Membership of the “Mizuho Mileage Club” hastopped the 5 million mark.

nience for individual customers — as part of its services
for individuals. In order to strengthen its consulting services, it is training up more financial consultants andexpanding its framework for providing more competitive
products through tie-ups with companies inside and outside the group. In the area of personal loans, it is reinforcing its abilities to develop products that will enable it torespond more flexibly to customers' needs. It is also
encouraging customers to deepen and expand theirbanking transactions through the “Mizuho Mileage
Club,” a membership services package for individual cus-

• There are now 135 branches with “Mizuho Personal
Squares” offering greater focus on individual customers, with the addition of four new ones.
• MHBK continues to strengthen its consulting capabilities, establishing over 312 “Premium Salons” throughout the country.
• The number of “Planet Booths” jointly established by
MHBK and MHIS has reached 134.
• It launched the new “Childrearing Support Service”
for customers who make use of its housing loans.

tomers, while improving the convenience of settlement

Targeting SMEs and Middle-Market Corporations

channels using “Mizuho Direct”, its online banking service• Strengthened contacts with customers by redeploying
headquarters personnel with business experience tobranches.

and ATMs, and strengthening security of those channels.
As for the needs of SMEs and middle-market corporations for funding and resolution of management issues, it
makes use of the financial functions and networks ofMizuho and business tie-ups to offer optimal products, services and solutions to customers ranging from those who arejust starting up in business to those who seek to expand.

 Mizuho Investors Securities
In line with its aspirations to become “the securities company that customers know and trust most,” MHIS is working with MHBK to establish joint branches and promote
financial instruments intermediary service while cooper-• Reinforced its support initiatives for customers
among SMEs and middle-market corporations whoare environmentally-conscious.
Promoting Offering Services by Transcending theBoundaries between “Corporate” and “Individual”
Customers• Established a new “Consulting Division” and a“Business Promotion Division for Employees ofCorporate Customers” to deal more flexibly with thediversifying needs of SMEs and middle-market corporate customers, and individual customers.

ating with Mizuho's group companies to satisfy wideranging securities transaction needs in areas like IPOs.

 UC Card
Through its strategic tie-up with Credit Saison, UC Card
has built the strongest business structure in the credit
card sector by becoming the first company in Japan to
specialize in both the management business of affiliatedmerchants and the processing business, offering highly
convenient and innovative services.

 Mizuho CapitalMizuho Capital ranks among the top domestic venture
capital companies in performance, making full use of its
rich pool of know-how and Mizuho's domestic and overseas network in its proactive approach to investment
and consulting.
29

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs and Middle-Market Corporations —Approaches to Individual Customers

Mizuho Personal Squares
MHBK is proactively deploying popularly called “Mizuho Personal Squares” with a view to providing more attractive
branches that customers can visit for consultations with greater ease.
During fiscal 2007, it continued its expansion program, establishing four new “Mizuho Personal Squares” — inMusashi-sakai in the Tokyo Metropolitan Area, and Ashiya, Gakuen-mae and Senri-chuo in the Kansai region — upgrading 16 sub-branches to branch status and refurbishing several existing branches, bringing the total to 135 as of the end of
March 2008.
As part of its efforts to reinforce services for individual customers, it has increased the number of branches providing
consultations on asset management and housing loans on Saturdays. This is aimed at customers who are too busy to visit
the bank on weekdays and couples who want weekend consultation services in a relaxed atmosphere. As of the end of
March 2008, there were 17 such branches, some of which also operate on Sundays.
MHBK is working proactively to strengthen its branch network and services to offer greater convenience for individual
customers.

EBM, A New Way for Marketing Products and Services
Using a new market method known as “Event Based Marketing” (EBM), MHBK is endeavoring to provide customers withproposals that are truly useful and satisfying for them.
With EBM based on the data such as customers' historical transaction records and their balances, MHBK estimates
what the customers' true financial needs are and when those needs are more likely to arise, and it submits proposals on
appropriate financial products and services at an appropriate time.
MHBK provides customers with information on those products and services through branches, call centers and direct
mails. Even when such information is delivered via a call center or a direct mail, every effort is made to meet the customers' consultation needs smoothly by working closely with the branches close to customers.

“Mizuho Mileage Club” Membership Services Enhanced
As of November 2007, over 5 million people had signed up for MHBK's “Mizuho Mileage Club” membership service, oneof MHBK's strategic products for individual customers.
In October 2007, MHBK started to offer the “Mizuho Mileage Club Card/ANA” in a tie-up with All Nippon Airways(ANA). The new card embodies an IC ATM card with biometric identification and an IC credit card, together with its frequent flyers' program “ANA Mileage Club,” easy check-in service “Skip” and Electronic Money “Edy” functions in a single card, and incurs no annual fees.
When MHBK invited customers to participate in the “Mizuho Happy Travel Photo Contest,” held from January 2008 on thetheme “Travel,” to commemorate the launch of the “Mizuho Mileage Club Card/ANA,” over 11,000 photos were submitted.
MHBK continues with its initiatives designed to match customers' needs. From February through the end of April 2008,
it held a campaign to present applicants with an original bag, a glass tumbler or a book cover in a tie-up with “BEAMS,”
which has attracted popular support among young people especially.

30

GLOBAL RETAIL GROUPMHBK will keep on strengthening Mizuho Mileage Club's functions to make it a more convenient service that continues to deliver customer satisfaction and improve.

Responding to Consulting Needs
Strengthening Consulting Capabilities
MHBK is putting a great deal of effort into strengthening consulting capabilities that are designed to build long-term
relationships with customers based on trust by responding more precisely to their diverse consulting needs centered on
asset management.
In addition to continuing its program for training financial consultants who can provide appropriate specialist consultations, MHBK had established “Premium Salons” at 312 branches throughout the country as of the end of March 2008.
These private spaces are designed to allow customer to consult its staff in a relaxed and comfortable atmosphere.
It also holds seminars on asset management, inheritance and wills, as well as seminars and consultations on asset management at irregular intervals on weekdays and holidays.

“Special Consulting Program for Retirees” Launched
MHBK offers services under the “Special Consulting Program for Retirees,” which provides comprehensive retirement
allowance management proposals to members of the generation who are starting to plan for a new life following
retirement.
It responds to customers' needs for consultations in connection with post-retirement lifestyle planning or managing
retirement allowances by offering information through “Money Life Simulations” and the informational magazine “The
Second Act.”
Customers who are thinking seriously about retirement allowance management can avail themselves of the proposals
put forward in the “Mizuho Money Plan Set — Retirement Allowance Investment Plan” and the “Special Interest Rate
Plan for Retirement Allowance Time Deposits.”

Expanding Asset Management and Deposit Products
To support customers' asset investment needs, MHBK is endeavoring to expand its product lineup in such areas as investment trusts, insurance and foreign currency deposits.
In the area of investment trusts, it has started selling the Fidelity Three Basic Fund, the World Bond Fund and the DIAM
Emerging Bond Fund.
In the insurance product segment, it has started handling the “Nenkin Tayori” variable annuity, which is underwritten by
the Dai-ichi Frontier Life Insurance. Also, following the complete removal of the ban on over-the-counter sales of insurance
products at banks, MHBK began to sell two products that combine variable annuity and lifetime medical insurance,“Nagaiki Sekkei” (underwritten by ALICO Japan) and “Sukoyaka Life” (underwritten by Sumitomo Life Insurance Company).
In light of its customers' increasingly varied needs, moreover, it has again started handling variable interest rate time
deposits, which vary according to the interest rate situation.

Expanding Comprehensive Financial Services through Cooperation with Group Companies
MHBK is working to enhance its comprehensive financial services by strengthening its ties with group companies.
The number of “Planet Booths” set up by MHIS in the lobbies of MHBK branches had reached 134 as of the end of
March 2008, continuing MHBK's proactive efforts to satisfy customers' needs for one-stop banking and securities services nationwide.

31

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs and Middle-Market Corporations —MHBK also handles various MHTB trust products at head office and all branches using the agent system for trust banking business. In particular, there is steady annual growth in the number of consultations in connection with testamentary
trust services and estate distribution services, which handle complicated inheritance procedures on behalf of customers.

Personal Loans
Housing Loans
To satisfy customers' diversified needs in respect of housing loans more flexibly, MHBK offers various products and services that take into consideration factors like life stage variations and changes in the interest rate environment.
In December 2007, it launched the new “Childrearing Support Service” for customers who make use of its housing
loans. This service supports customers in bringing up their children by making them eligible to use financial products andnon-financial services at key stages of the childrearing process.
It is also working to enhance customer convenience by enabling the Mizuho Direct Internet Banking service to allow
customers to switch between housing loan interest methods and accept partial accelerated repayments of housing loans.

Unsecured LoansMHBK is working proactively to expand the number of customers using unsecured "Mizuho Orico Card Loans" by advertising on the Internet, in trains and in stations.
To better accommodate customers' wide-ranging needs, it runs a campaign offering preferential rates on children's
educational loans to coincide with the schools admissions season.

Targeting SMEs and Middle-Market Corporations

MHBK supports customer growth in the SME and middle-market corporate segments by offering solutions to their wideranging needs. It aims to win “their maximum trust” and “establish a solid customer base” by reinforcing its efforts to lay
down the foundations for larger, more stable profits in the future.

Strengthening Proposal Capabilities and Customer Contact Points
MHBK has established a solutions business promotion framework to enable it to respond to the varied and sophisticatedneeds of SMEs and middle-market corporations, and offer highly specialized services.
By reviewing its existing branch network and redeploying its RMs, it will build up a framework that will allow it to offer
even more expert services. At the same time, it will further strengthen its points of contact with customers by strategicallyredeploying headquarters personnel with business experience to branches. It believes that this kind of framework will
enable it to make the most of its strengths in a wide range of areas, from consulting on asset management to improving
the efficiency of settlement operations and making proposals on management issues, as well as funding.

32

GLOBAL RETAIL GROUP
Approach to Funding Needs
In order to respond promptly and proactively to funding demand among SMEs and middle-market corporations, MHBK isstrengthening its lineup of products that can meet their needs with precision. In addition to the ¥1 trillion “Super Wide”
strategic loan fund, these include “earthquake disaster finance,” which makes funding lines available to satisfy the type offunding demand envisaged at times of earthquakes and other disasters, and “Mizuho Eco-assist,” which offers preferential interest rates on funding for capex that leads to environmental improvement.
It is also developing and offering new loan products that do not rely excessively on real estate collateral or personal
guarantees. To this end, it proposes loan asset securitization schemes from the perspective of balance sheet controls. It
also extends “Machinery Collateral Loans,” which use movables such as machinery and equipment as collateral, andasset-based loans, which use accounts receivable or inventories and other operating revenue assets as collateral.
Additionally, it is improving its responses to new business funding needs by developing a variety of funding schemes,
including schemes to exploit intellectual property rights.

Approach to Small-Scale Corporate Customers
MHBK is proactively engaged in the lending business, and has concentrated its overall lending operations for small-scalecompanies in Mizuho Business Financial Center, a subsidiary specializing in lending.
Mizuho Business Financial Center has increased its staff to 600, most of them veterans who are well versed in the lending business, and works proactively to satisfy the funding needs of small-scale customers mainly through loans with guarantees from the Credit Guarantee Corporation.
It endeavors to support the management of small-scale companies. These efforts include “Mizuho Business Channel,”a service for providing useful management information to customers of the Mizuho Business Financial Center, jointly provided with MHRI.

Approach to Solutions Businesses
Further Promoting the Solutions Business
MHBK has deployed solutions support experts at headquarters to work closely with its branches in assisting SMEs andmiddle-market corporations with a wide range of management issues, including business and financial strategies.
More specifically, the solutions offered are very diverse, ranging from financing deals in areas like structured financeand syndicated loans to solutions associated with business strategies such as business inheritance, M&As and businessmatching, and advisory services on overseas business expansion.
In the area of support for business inheritance, MHBK established a new “Consulting Division” in April 2008 tostrengthen its consulting capabilities for customers, whether they be corporations or individuals.

Business Matching
MHBK is proactively engaged in business matching services, introducing customers of Mizuho who best satisfy the business needs of other customers. These services include introducing new sales and purchasing partners, and partners who
can help in the area of cost reduction.
Whether it is a matter of developing new products, diversifying the business, increasing logistic efficiency, computerizing operations, or creating an environmentally-friendly culture within the company, MHBK delivers strategic business33

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs and Middle-Market Corporations —solutions by using its extensive network and experience to provide truly effective advice and support in connection withthe various management issues customers face.
In particular, MHBK has started handling the “Mizuho Save the Earth — Business Matching Program” to support corporate customers who practice environmentally conscious business management. Among other things, it meets thedemands of customers who have adopted environmental improvement initiatives by introducing other Mizuho customers
who manufacture environmental equipment offering sophisticated solutions. To support customers with their environmental initiatives, MHBK held the “Environment Business Matching Forum” in Tokyo in February 2008, attracting visitorsfrom some 800 companies.
“Business Matching Forums” are designed to bring corporate customers together to engage in individual businessnegotiations, and have been extremely well received.

Defined Contribution Pensions
Environmental changes arising from the scheduled abolition of Tax-Qualified Pension Plans and the consolidation of pension schemes through M&A have presented customers with the need to restructure their corporate pension schemes. In
response, the Defined Contribution Pension Office offers integrated services extending from feasibility studies to actual
introduction, management and administration. These services cover pension consulting centered on defined contribution
pension schemes, support for introducing these schemes, investment products and aftercare for policyholders.
MHBK also provides support for various defined contribution pension schemes to suit a variety of requirements, including
the Mizuho “SogoGata (comprehensive package) DC Plan” for SMEs and the “Mizuho Personal DC Plan” for individuals.

Financial Instruments Intermediary Service
Now that MHBK handles financial instruments intermediary service aimed at corporate customers, the bank itself isable to respond proactively to customers' diversifying investment needs by engaging in areas that were once the exclusive province of securities companies, such as solicitation and agency business in connection with structured bonds andother instruments.
The Asset Management Office for Corporate proposes solutions to corporate customers' investment needs, and its
expert staff offer securities and other investment products to suit customers' requirements.

Mobilizing Group Strengths
 IPO Support
MHBK responds to the needs of customers planning IPOs through organized collaboration with other group companies:
MHIS provides broadly based support as a securities company; Mizuho Capital serves as a venture capital investor and provides advice on going public; and MHTB provides advisory and stock transfer agency services.

 Support for New Businesses
In the new business market, MHBK has highly sophisticated know-how.
Specialist staff with expert knowledge concerning advanced technologies, intellectual property rights and other areasof the new business market conduct analyses from various perspectives, including the future potential of the customer's
business itself. Based on a true understanding of the situation, they then provide proactive support for business growthand funding for those customers who will head the next generation of businesses.

 Support for Overseas Business Expansion
Japanese companies are increasingly looking abroad, and while some are just moving into overseas markets, others aredeveloping businesses they have already established there. In order to satisfy these diverse needs, the bank provides
proactive support for customers' local overseas projects through the group's Asian network, which is the most extensiveof any Japanese bank.

34

GLOBAL RETAIL GROUP
Specialist staff in Japan and overseas who are well versed in overseas business provide the best possible information
accurately and quickly according to the needs of the business in question and its development stage — local feasibility
study, overseas business strategy formulation, establishment of local subsidiary, post-establishment business management,
and so on.
Its specialist staff proactively provide the Mizuho Global CMS and other solutions in response to customers' wideranging overseas business needs, from managing funds at foreign subsidiaries to operational support for imports andexports, and exchange risk mitigation.
The bank draws on Mizuho's collective group strengths to provide powerful backup for customers' global strategies,
offering thoughtful, meticulous support in connection with every individual issue they face.

Promoting Offering Services by Transcending the Boundaries between “Corporate” and “Individual” Customers“Consulting Division” EstablishedAs the needs of customers in the SME, middle-market corporation and individual segments become more diverse, financial institutions are increasingly required to respond flexibly to needs that transcend the boundaries between “corporate”
and “individual” customers.
For example, one of the most important management issues facing customers in the SME and middle-market corporate
sector is business inheritance because it simultaneously raises succession issues pertaining to the company's ownershipand the owner's own assets.
To deal swiftly with such needs, MHBK established a new “Consulting Division” to bring together the corporate consulting functions that were once dispersed among various divisions, private banking functions for high net worth customers and trust business promotion functions.
MHBK will respond to various customers' needs through comprehensive services for the requirements of both companies and individuals, and comprehensive financial services in cooperation with MHTB, MHIS and other group companies.
Through these initiatives, MHBK will build up permanent relationships with customers and establish a firm position as
Japan's strongest retail bank.

“Business Promotion Division for Employees of Corporate Customers” EstablishedThe bank has established the “Business Promotion Division for Employees of Corporate Customers” to provide products
and services that satisfy the various needs of senior executives and employees of its own corporate customers and thoseof MHCB as they face various life events.
It is working to satisfy the needs of each individual senior executive and employee by offering products and services tailored to their requirements, whether they be comprehensive proposals on post-retirement lifestyle planning or managing
retirement allowances, or consultations on housing loans for new house purchases.
Six offices have been established around the country to enhance services and provide speedy and courteous responses
to the diverse needs of these senior executives and employees.

35

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group

Dealing with Clients' Demands for Asset Management and Administration
Business Environment and Overview of the Global Asset & Wealth Management Group
Against the background of structural changes to society accompanying the dwindling birthrate and aging population, as
well as reforms to legislative and accounting systems, the need for asset management and administration is increasing
among individuals and corporates alike.
In the world of trusts, moreover, revisions to the Trust Business Law in December 2004 lifted restrictions limiting theassets that could be placed in trust, and expanded the scope for trust agents and the business they can handle. Further revisions to the Trust Law in December 2006 allowed for new formats, such as purpose trusts, leading to a steady increase in
the number of opportunities to offer solutions that make use of trust functions.
The Global Asset & Wealth Management Group provides world-class products and services to meet diverse and sophisticated client needs in the areas of trust and custody services as well as private banking services.

36

GLOBAL ASSET & WEALTH MANAGEMENT GROUPKey Group Companies

Highlights

 Mizuho Trust & Banking

 MHTB

Trust banks may engage in trust business and related• The number of testamentary trusts entrusted to MHTB
exceeded 12,500 contracts as of the end of March2008.

operations as well as banking business. One particularfeature that sets trust banks apart from other banks istheir asset management function, which allows them tomanage and administer clients' assets.
MHTB offers a full range of trust services to individual• The balance of securitized assets (real estate) underadministration increased by ¥0.6 trillion to ¥5.3 trillion.
• The pension assets under administration reached the¥20 trillion mark.

and corporate clients, and is working on strengthening
its asset administration divisions, handling pensions, TCSBasset management, real estate, securitization and stock• The balance of assets under administration increasedby ¥87 trillion during fiscal 2007 and exceeded ¥287
trillion as of the end of March 2008.

transfer agency business.

 Trust & Custody Services BankTCSB is a highly specialized trust bank focusing on asset
administration services, offering high-quality, high valueadded trust and custody services to financial institutions
and institutional investors.

 Asset Management Companies
Mizuho's asset management companies Mizuho AssetManagement (MHAM)* and DIAM* constantly pursue

 Asset Management Companies• On July 1, 2007, Dai-Ichi Kangyo Asset Management
and Fuji Investment Management merged to become
Mizuho Asset Management (MHAM).
• As of January 1st, 2008, DLIBJ Asset Managementchanged its name to DIAM.
• The above two companies were awarded by multiple
evaluation organizations.

optimal investment results in both the investment trust
and the investment advisory businesses as they strive to
respond accurately to clients' increasingly diversified andsophisticated asset management needs.
*Refer to the Highlights.

 Mizuho Private Wealth Management
As a full-fledged wealth management services company,
MHPW provides optimal, high-quality comprehensive,
integrative and continued products and services tailoredto the needs of individual clients.

37

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Clients' Demands for Asset Management and Administration —Expanding the Trust Market
In the years since the Trust Law and the Trust Business Law were enacted in 1922, money trusts, securities trusts andother forms of trusts have made an enormous contribution to the lives of the Japanese people.
In December 2004, the system underwent the change when the revised Trust Business Law was passed. This abolishedrestrictions that had originally limited the assets that could be placed in trust to six categories, including money and land,
and made it possible to place intellectual property rights such as copyrights in trust. For all practical purposes, only financial
institutions were originally allowed to participate in the trust business, but it has now been opened up to ordinary business corporations and the scope for adopting the agent system for trust businesses has been expanded. Further revisions
to the Trust Law in December 2006 rationalized the trustee's obligations, enhanced the effectiveness and flexibility of thebeneficiary to exercise rights, took other steps to strengthen discipline, and allowed new formats, such as purpose trusts.
This means the trust function has come into much more general use and the trust market is expected to grow further.
MHTB sees expansion of the trust market as a new business opportunity and will provide Mizuho clients with sophisticated trust solutions.

Sophisticated Trust Solutions
Asset Management Trusts
In the case of its “Asset Management Trust” products, MHTB separately establishes and manages trusts for each client,primarily by accepting their stocks, bonds and other securities. Making the most of the know-how it has accumulated
through its asset management business as a trust bank, it uses its trust functions to provide solutions to various issues
ranging from support for asset management and investment to methods for dealing with acquisitions or disposals of treasury stocks, which require special care.

Testamentary Trusts
MHTB's testamentary trust business covers three services: consent to allow the bank to undertake the execution of wills sothat their provisions are fulfilled; will custody trust services; andMHTB's Testamentary Trusts Entrusted(No. of deals)
13,000entrustment by all heirs to allow the bank to act as their agent

12,500in the inheritance and thus the distribution of the estate. In

12,000contemporary Japan, the advent of an aging society with falling

11,500birthrates, and a heightened awareness of individual rights

11,000have fueled an increase in the number of inheritance problems.
Each year, more and more clients are making use of the trustbanks' testamentary trust business as a means of preventing
such inheritance problems from arising. As of the end of March
2008, over 12,500 clients had entrusted MHTB with their wills,
thereby placing the futures of their families in its hands whereasset inheritance is concerned.

38

0March 2006

March 2007

March 2008

GLOBAL ASSET & WEALTH MANAGEMENT GROUP
Securitization of Monetary Claims and Other Claims
MHTB makes full use of its trust functions in developing and proposing stable asset securitization schemes on a made-toorder basis.
Utilizing the high-level structuring capabilities it has built up on the basis of its strong track record, MHTB offers various
solutions to corporate clients' needs for fund procurement, cutbacks in assets and liabilities, and better financial indices.
As a result, the balance of monetary claims in trust exceeded ¥7.0 trillion at the end of March 2008.
MHTB led the industry in developing the “Noteless” lump-sum accounts. The scheme allows accounts receivable to be
accepted in trust from clients who have transactions with large enterprises in such a way as to provide them with a service
that allows due-date collections and pre-maturity conversion into funds of the receivables in question. “Noteless” hasbeen well-received because it reduces the cost of issuing notes and allows fund procurement on more favorable terms
than discounting bills. At the end of March 2008, over 120,000 companies used “Noteless” accounts and the balance offunds in these accounts exceeded ¥1.5 trillion.
At the same time, MHTB provides new investment instruments in the form of asset securitization products to investors
with asset investment needs. The “Chochiku no Tatsujin” automobile loan securitization product for individuals has beenwell-received because it focuses on balancing safety with profitability, and its outstanding sales topped the ¥700 billion
mark as of the end of March 2008.

Real Estate Securitization
In recent years, real estate securitization has come into increasingly active use because of the growing need to make more

MHTB's Securitized Assets (Real Estate) under
Administration as Trustee

efficient use of assets and to diversify fund investment and pro-(Trillions of ¥)6

curement, as well as the need to overhaul strategies relating toreal estate holdings in response to changes in the businessenvironment such as accounting systems.

5

Fully utilizing the know-how it has built up over many years,
MHTB is engaged in many securitization deals involving office4buildings and commercial facilities. At the same time, it is proactively engaged in real estate development methods that utilize
securitization mechanisms. MHTB's capabilities and performance0

March 2006

March 2007

March 2008

in arranging real estate securitization deals have earned highmarks among Japanese and overseas rating agencies andinvestors. As of the end of March 2008, it boasted a balance ofover ¥5.3 trillion in securitized assets under administration.
It will put forward sophisticated proposals that will satisfy all
real estate needs by making the most of the overall strengths
generated through the combination of its arrangement capabilities and financial functions.

39Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Clients' Demands for Asset Management and Administration —Pensions Business
As the population ages and birthrates fall in Japan, Japanesecompanies now face massive retirements among baby boomers
as well. Securing manpower has become a crucial issue, turning
the spotlight once again on to the importance of corporate pension schemes.
MHTB offers the services and product packages needed forcorporate pension schemes, which range from pension plan
design and the management of pension policyholders and recip-

Retirement Benefit Funds under Administrationas Trustee(Solely operated designated money trust + Pension trust +Pension specified money trust)(Trillions of ¥)
21
20
19
18

ients to asset investment and management. In order to provide
17

tailor-made responses to clients' increasingly diversified needs, it
is strengthening its service lineup. In the area of comprehensive
consulting services pertaining to defined benefit pension plans

0March 2006

March 2007

March 2008

and defined contribution pension plans, it works to satisfy
clients' needs in cooperation with Mizuho Pension ResearchInstitute, which specializes in these areas. As a result of these
efforts, the pension assets under administration reached the ¥20
trillion mark as of the end of March 2008.

TCSB Industry’s Leading Assets under Administration
In cooperation with the group companies of Mizuho, TCSB has
worked to expand its transactions with clients among financial
institutions and institutional investors. As a result, the balanceof assets under administration exceeded ¥287 trillion as of the

TCSB's Assets under Administration(Trillions of ¥)
300

260

end of March 2008, increasing by ¥87 trillion compared to theprevious fiscal year and maintaining the leading position

220

among trust banks specializing in asset administration services.
It will continue to exploit the economies of scale that result

180

from its strong base of assets under administration to provide
high-quality, high value-added trust and custody services thatmatch the needs of its clients.

40

0March 2006

March 2007

March 2008

GLOBAL ASSET & WEALTH MANAGEMENT GROUP
Mizuho's Asset Management Performance Rated Highly
Mizuho's asset management companies have earned anAward-Winning

excellent reputation among investment trust evaluation organizations for their investment expertise and unique productcharacteristics.
By offering investment products that make the most of theexpertise of each company, they will continue to satisfy clients'
asset management needs.

MHAM
Lipper Fund Awards Japan 2008
Best Fund
DIAM
Morningstar Fund of the Year 2007
Best Fund Award
Fund of the Year
Lipper Fund Awards Japan 2008
Best Fund

Full-Fledged Wealth Management Services
Mizuho offers the best solutions to individual clients' diversified needs.
Mizuho Private Wealth Management is providing ultra-high-networth clients* with comprehensive, integrative andcontinued services similar to those available in the U.S. and Europe to the extent permitted under Japanese laws andregulations.
Based on the open-architecture concept of “providing clients with the best from around the globe,” it will continue tooffer products and services of the highest level.
With regard to non-financial services, it will provide premium services to meet clients' diverse needs in relation to art,
automobiles and similar areas, in collaboration with prestigious companies, as well as high-quality solutions in connection
with areas such as philanthropy and concierge services.
*Clients who have entrusted Mizuho with extremely large amounts of investment assets.

41

CSR Activities

As business activities expand in scope and markets become increasingly globalized, Mizuho is required to give greater
consideration to pro-social, pro-environmental initiatives. We believe our CSR initiatives are essential if we are to coexist
with society and ensure mutually sustainable development.
Mizuho sees CSR as an indispensable element for achieving coexistence and sustainable development together withsociety, and promotes CSR activities while continuing an ongoing dialog with its stakeholders.
We therefore believe it is our intrinsic business responsibility not only to offer quality, leading-edge financial products
and services, but also to remain fully aware of our public mission as part of the economic and social infrastructure, facilitating the flow of money and contributing to the healthy and sustainable development of the economy and society inJapan and abroad.
In addition to fulfilling the responsibilities inherent in our core business activities, we will pursue corporate activities
that will fulfill our social responsibilities through initiatives associated with our core business.
For details, please refer to our CSR REPORT, which is available on MHFG's website.
http://www.mizuho-fg.co.jp/english/csr/report/index.html

Mizuho's Materiality — A Key Area of CSR
Intrinsic Business Responsibilities

Support for Financial Education

 Maintain trust and protect depositors.

 Support financial education for the next generation on Contribute to the healthy and sustainable development

whom society's future depends to enable them not onlyof the global economy by working to facilitate financing,to acquire financial awareness but also to cope with theand making responsible loans and investments.

issues they will face in their daily lives.

 Earn the unwavering trust of customers and society as awhole by faithfully carrying out business activities

Enhance Corporate Governancethrough sound and appropriate management.

 Establish a corporate governance structure capable ofearning a reputation for excellence in global financial

Environmental Initiatives

and capital markets by maintaining fairness and integrity Recognizing that restricting and reducing impact on thein our corporate activities.

global environment is a shared challenge, provide financial services in line with environmental policies to prevent

Highly Responsive Communications

global warming, etc. and reduce our own consumption

 Realize responsive communications with stakeholders byof resources.

further promoting information disclosure to ensure
greater transparency in corporate activities.

Lectures and Courses for Universities
Senior executive officers and employees of Mizuho who work at the cutting-edge of the finance business also act as
instructors at lectures for courses established by Mizuho at Kyoto University, Keio University, the University of Tokyo,
Hitotsubashi University and Waseda University.

Practical Financial Education at Elementary and Secondary Schools
Mizuho employees also participate in lessons that use textbooks and glossaries developed through joint researchwith Tokyo Gakugei University.

42

Environmental Initiatives through Core Activities
MHFG recognizes that maintaining and preserving the natural environment are the cornerstones of sustainable socialand economic development, and is working to strengthen its initiatives in these areas through its financial services.

 Finance for Environment-Related Businesses
MHCB is proactively involved in renewable energy businesses such as wind power generation, and its outstanding investments as of the end of March 2008 exceeded ¥70.0 billion. It is also promoting finance forwaste disposal facilities as part of its contribution to the creation of a recycling-based society.

 The Mizuho “Save the Earth” Project
MHBK has launched the “Save the Earth” Project to improve its response to customers' needs in the area ofenvironmental policies. A business-matching event that took the environment as its theme attracted a large
number of visitors when it was held in February 2008.

 Emissions Trading Business
Three group companies — MHCB, MHTB and MHIR — are working on initiatives in the emissions trading business from various angles.

Barrier-Free Initiatives
MHBK is promoting multifaceted barrier-free initiatives in the form of the Heartful Project to enable anyone to use its
facilities and services easily, regardless of age, gender or disability.
It has brought in experts in universal design to spearhead initiatives in creating barrier-free branches, facilities andequipment, design product pamphlets and websites that are easy to understand, and promote education aimed at
improving interaction with customers.
Development of Barrier-Free Facilities (Work completed at 422 manned branches as of March 31, 2008.)
Automatic entrance doors

377

Step-free design

353
333

Wider corridors

418

312

Guidance facilities for the visually impaired409

155 159

Parking spaces for wheelchair users

180 189

Customer elevators*
120

Installation of wheelchair accessible elevators*

130
304

285

Customer toilets
158

Multifunction/wheelchair toilets

175
410

ATMs equipped for visually impaired users
Number of branches with these facilities installed
Number of branches where these facilities are to be installed

415
388

0

100

200

300

400
500
(Number of Branches)* The total does not include branches where these facilities are not required, such as single-story branches.

43Brand Strategy

We are pursuing a strategy to transform the Mizuho name into a brand that befits a leading global financial services
group.
Under this branding strategy, we will make a clear declaration of the kind of value we can provide to customers. This is
our Brand Promise.
Our Promise, however, is mere words and is not enough on its own to win customer approval for our efforts to provide
value. In order to fulfill our Brand Promise, therefore, we will share and put into practice the strengths and challenges
embodied in the expression “enterprising, open, and leading-edge” in our daily work activities.

Brand Promise
To customers ranging from domestic retail, corporate to international,
Mizuho Financial Group is comprised of enterprising, spirited professionals
who use creative and original methods to respond to customer needs today,
while helping them achieve a bright future tomorrow.
Because we want to play a meaningful role in our customers' lives
by always being available to them, we offer a full range of leading-edge products and services
designed to help them achieve their goals and make their lives more enjoyable and gratifying.

Brand Strength
EnterprisingOpen

Leading-edge“Enterprising” means we have the“Open” means we are flexible and are“Leading-edge” means we have thepassion and power to help customers

open to new ideas and new ways toforesight to “light the future.”find the right path.

serve our customers.

In other words, each of us should

We think creatively about our busi-

We listen sincerely to our customers

anticipate how society and customers

ness and each of us is empowered toand treat them with fairness and kind-change. As a result of this, we intro-

make a difference in our customers'

ness any time we have the chance.

duce the most advanced and unique

lives. We keep focused on our cus-

We want to be open all the time.

products and services to better serve

tomer needs and continuously strive to

our customers. Because of our innova-

help them achieve their dreams.

tive mindset, we help our customers

We act enterprising all the time.

achieve a better and brighter future.
We want to be leading-edge all the
time.

44

We believe we will only achieve our aspiration to become “A financial partner that helps customers shape their future andachieve their dreams” when our customers truly feel we are “enterprising, open, and leading-edge” and have fulfilled ourBrand Promise.
We will continue to declare our Brand Promise through various kinds of communications activities under the group's
unified Brand Slogan, “Channel to Discovery.”

Brand Vision“A financial partner that helps customers shape their future and achieve their dreams.”

Brand Slogan

The slogan expresses the role Mizuho will play, not only to realize today's dreams,
but also to discover new possibilities that lie ahead and to create a better future.
“Discovery” stands for Mizuho's customers discovering their dreams and new possibilities, and“Channel” stands for the role Mizuho will play in providing the ways and means to its customers
so that they can realize their dreams and new possibilities.

45

Management Structure
Corporate GovernanceCorporate Governance Structure Board Members and Board of Directors

Corporate Governance Policy

MHFG's board of directors, which consists of nine mem-

We have been working to achieve a streamlined and nim-bers, determines important matters pertaining to the man-ble management structure while strengthening our cor-agement policy of MHFG and its group companies andporate governance by inviting outside directors to joinmonitors the business conduct of directors and executive

our board, etc. We will continue our efforts to enhance

officers. Three of the directors are outside directors thatthe transparency and efficiency of our management

do not engage in the day-to-day management of MHFG.

through corporate governance, with strict observance of

Their participation serves to strengthen the management

all laws and regulations, pursuing our business activities

and monitoring functions of the board of directors.

in a fair and honest manner that does not conflict with
the norms accepted by society.

In order to ensure transparency and impartiality inmatters of personnel decisions affecting the board of

In addition, we established the “Mizuho Code of

directors and directors' compensation, a Nomination

Conduct” which is a set of common values and ethicalCommittee and a Compensation Committee made up ofprinciples shared by the corporate officers and employees

directors including outside directors have been estab-of the group.

lished to advise the board of directors on these matters.

 Corporate Auditors
Social Responsibility and Public Mission:

The Board of Corporate Auditors receives reports on

We are acutely conscious at all times of our social respon-

important issues about audit matters, discusses them andsibilities and public mission as Japan's leading compre-

makes decisions. Three of the five corporate auditors arehensive financial services group. We therefore work to

outside corporate auditors.

ensure that we maintain close communication with the

The Corporate Auditors audit the performance of thecommunities in which we operate and pursue corporate

directors' duties and review our business performance

activities in a manner that is in harmony with societal

and financial condition by attending board meetings andexpectations.

other important meetings to receive reports on the busi-

Placing Our “Customers First”:

ness from directors and other corporate officers, inspect-

We place our customers first and always offer the best

ing important documents and receiving reports from theservice possible. We believe that being trusted by ourInternal Audit Division, subsidiaries and accounting audi-

customers is the basis for the trust by our shareholders,

tors, among others.

society and all other stakeholders.

 Execution of Duties

Strict Compliance with Laws, Regulations and

MHFG introduced the executive officer system in order toInternal Rules:

separate managerial decision making and its implementa-

We are committed to strict observance of all laws andtion and to clarify levels of authority and responsibility.

regulations and pursuing our business in a fair and hon-In respect of the execution of duties, the President &est manner that does not conflict with the norms accept-

CEO manages MHFG according to the fundamental man-ed by society. As a global financial services group, weagement policies determined by the board of directors.

also strive to respect the laws, customs and cultures of

The Executive Management Committee was establishedthe foreign countries in which we operate.

to serve as an advisory body for the President & CEO and

Respect for Human Rights:

discusses important matters concerning the execution of

We respect the human rights of our customers, corporate

business operations. Business Policy Committees were

officers, employees and other individuals and strive toestablished to discuss cross-sectional issues.

achieve a corporate culture that promotes human rights.
Disavowal of Anti-Social Elements:

46<Business Policy Committees>

We will firmly oppose the activities of any anti-social

Portfolio Management Committee:

elements that threaten the rule of law, public order

Discusses, coordinates and monitors basic portfolioand safety.

policies and their implementation.

ALM & Market Risk Management Committee:

specific issues. These committees discuss, disseminate

Discusses, coordinates and measures performance of

information and promote policies concerning operations

basic ALM policies, risk planning, fund procurement

under their jurisdiction.

and investment, and market risk control.
Compliance Committee:

Business Continuity Management Committee:

With the participation of external experts (one lawyer

Discusses, disseminates information and promotes

and one certified public accountant (CPA)) as special

basic Business Continuity Management policies.

members, discusses and coordinates legal compliance

Human Rights Awareness and Promotion Committee:

oversight, and matters related to antisocial elements

Discusses, disseminates information and promotes

and the handling of accidents.

policies concerning human rights initiatives.

Information Security Management Committee:

Committee to Encourage Employment of People

Discusses and coordinates the promotion of policies onwith Disabilities:

information management, risk management pertaining

Discusses, disseminates information and promotes

to information security, compliance with the Law

policies concerning the employment of handicapped

Concerning the Protection of Personal Information,

people and securing their role in the workplace.

and rules and regulations concerning information

Social Contribution Committee:

management.

Discusses, disseminates information and promotes

Disclosure Committee:

policies concerning activities that contribute to society.

Discusses, coordinates and measures performance ofEnvironmental Issues Committee:

basic disclosure policies and controls.

Discusses, disseminates information and promotes

CSR Committee:

policies concerning global environmental initiatives.

Discusses and coordinates matters concerning the status of CSR related initiatives, key matters to be Internal Audit Function and Others

addressed, action plans and CSR reports.

The Internal Audit Committee fulfills an internal audit
function under the President & CEO. The committee dis-Five other committees have been established sepa-

cusses and determines important matters concerning

rately from the Business Policy Committees to deal withinternal audit on the basis of the basic policy determined

MHFG's Corporate Governance Structure
General Meeting of Shareholders

Nomination Committee
Compensation Committee

Board of Directors

Includes outside directors

Outside Directors

Audit

Corporate Auditors
Board of Corporate Auditors
Outside Corporate Auditors

Supervision
Management
Executive Management
Committee

Chief Executive Officer(CEO)Internal Audit Committee
Includes outside advisors

Business Policy Committees
Strategic Planning Group,
Financial Control andAccounting Group, etc.

Internal Audit Group47

Management Structureby the board and reports all decisions made by theProfit Management Systemcommittee to the board.
To ensure independence of the internal audit function
Group from the groups which it audits and establish it asProfit Management System Based on Legally
Separate Subsidiaries in Accordance with
Customer Segmentation and Business Functions

an independent group in its own right under the control

We aim to reinforce our financial strength by vigorouslyof the Internal Audit Committee.

increasing profitability and cutting costs. Centered onfrom the audited sections, we separate the Internal Audit

External experts in their field (consisting at present of

MHFG, we manage profits for the group based primarily

one lawyer and one CPA) are also on the Internal Audit

on our principal banking subsidiaries and other core

Committee to strengthen the specialist nature and impar-

group companies.
More specifically, we have clarified the strategic posi-

tiality of the committee.
The internal audit infrastructure MHFG has establishedtions of our principal banking subsidiaries and other coreis as follows: MHFG has set up an Internal Audit Divisiongroup companies within the group on the basis of ourto carry out internal audits based on the basic audit poli-group business portfolio strategy and, having ensured

cies and the internal audit regulations determined by thetheir autonomy and independence while bringing themboard of directors. It also checks the internal control

closer together through the unifying force of MHFG, we

structure of the principal banking subsidiaries and otherare seeking to maximize group corporate value.

core group companies* on the basis of the reports it

Based on our principal banking subsidiaries and otherreceives from them of the results of internal audits andcore group companies, MHFG is making efforts to opti-

problems and issues that have been investigated bymize its business portfolio through the following:them. Thus, all information on the status of the principal• formulating plans for gross profits, net businessbanking subsidiaries and other core group companies'

profits and net income, and carrying out perfor-internal audits is held and controlled by MHFG's Internalmance management,• allocating management resources such as invest-

Audit Division.
The results of both MHFG's and the principal banking
subsidiaries and other core group companies' internal

ments and expenses, personnel, risk capital and risk
assets, andaudits are reported to the Internal Audit Committee on a

• risk controls and profitability assessments based on

regular basis and at other times as necessary by the head

the allocation of risk capital drawn from equity capi-of the Internal Audit Group who is the director with

tal and other sources.
Further, our principal banking subsidiaries and certain

responsibility for internal audits.
The Internal Audit Division, Corporate Auditors andother core group companies establish their own profit

the accounting auditors exchange opinions and informa-plans for and manage the performance of their respectivetion on a regular basis and as necessary to strengthen

company's business group/units based on the manage-

cooperation so as to enhance effectiveness and efficiency

ment policy, overall profit plans and resource allocationsof the overall audit function.

drawn up by MHFG.

* Principal banking subsidiaries and other core group companies:
MHCB, MHBK, MHTB, MHSC, MHIS, TCSB, MHAM, DIAM, MHRI, MHIR,
MHFS, MHPWThe above group companies have also introduced theallocation of risk capital among each company's businessgroups/units, which is one of the most important man-

(As of June 26, 2008)

agement frameworks of the group. Each group company
engages in business activities within the limits of that risk
capital and RAROC is then used as a performance index
to evaluate the return on allocated risk capital.
Glossary RAROC (Risk Adjusted Return on Capital)
RAROC is a measure of the profitability of allocated capital and is used as anindex for assessing capital efficiency. RAROC is calculated by dividing riskadjusted profits (profits adjusted to reflect statistically expected risk) by capital.

48

Basically, the group companies have adopted a com-

Human Resources System

mon profit management system and framework, but in
actual operations, each adopts a flexible, rapid-action
approach that is optimized for its individual business

Vision for Human Resources: ROE on Human
Resources Investment

models.

The group and its employees have set a shared vision forhuman resources as follows:

Consolidated Profit Management“We promote the ‘ROE’ principle for human resources

While each principal banking subsidiary or core groupwith a view to lasting value creation and creating an attrac-

company works to enhance its own profitability, we man-tive and fulfilling working environment for employees.”age their profits on a consolidated basis as a means ofIn this vision, “ROE” stands for the following:building a balanced, optimized business portfolio for theentire group and improving capital efficiency.

ROE on Human Resources Investment

Specifically, in addition to our principal banking subResponsibility:

Observe the principles of
independent judgment andself-accountability.

Opportunity:

Provide equal opportunity.

Employability:

Develop expertise to enhancecompetitiveness.

sidiaries and other core group companies, we formulate
profit plans and manage performance for the strategicallyimportant subsidiaries and include their profits with thoseof our principal banking subsidiaries and other coregroup companies.
MHFG also manages profits for business segments
centered on three global groups, publicly disclosing segment information for each global group, and RAROC bysegment.
Profit Management System

Establishing a Corporate Culture Full of Vitality

MHFG

We have established the following five values as thegroup's common code of conduct. These values, serving• Profit plans and performance management• Allocation of management resources• Risk controls and profitability assessments

as the axis of our personnel evaluation system used bygeneral managers, along with the 360-degree employee
performance evaluation*, are being instilled in all
employees of the group.

MHCB, MHBK, and other(1) Possessing a “customer-first” corporate objective.

core group companies

Each company manages its own groups,
units and branches, etc.

(2) Facing the challenges of innovation.
(3) Being rational and fair in making decisions.
(4) Placing importance on speed.

Subsidiaries of the above group companies(As of June 26, 2008)(5) Being accountable for all actions.
*Personnel evaluation scheme whereby personal evaluations of managers
involve subordinates and persons from other divisions with whom they
have close working relationships.

49

Management Structure

We also introduced a group-wide “job application sys-

Optimizing the Uniqueness of Group
Companies and Synergiestem” and a “rookies' job request system“ for young

Employees are employed by one of the group companies

employees who have not experienced personnel transfers(MHFG, MHCB, MHBK, MHTB, MHSC, MHIR) with theto encourage employees to acquire greater specialization

aim of creating a group of specialists that can deliverin which employees can apply for specific positions

maximum innovativeness and speed.

throughout the group. We intend to strengthen thisAt the same time, facilitated by the group's common
compensation system (group-wide common platform for

scheme further by expanding the number of positions
available for the “job application system.”

human resources), we are able to maximize group synergy through cross-company personnel transfers to place

Positive Action Initiatives

the right person in the right job.

With the aims of invigorating our organization by proactively recruiting women, and of improving the morale ofPromoting the “Professional Career Path”

female employees, we are taking joint measures in our

We have put in place multi-featured compensation sys-

approach to positive action*.

tems that meet the needs of employees and the increas-*Initiatives that a company adopts proactively and autonomously in order toeliminate gender discrimination in recruitment and to promote the utilizationof womens' capabilities to the fullest extent possible.

ingly fluid labor market.
One example is the promotion of the “Professional
Career Path,” with a salary system that is in line withmarket standards.

Note: Contents appearing in this section describe the group's human resources
system in Japan.
(As of June 26, 2008)

Rejuvenating the Organization and Pursuing
Specialization
In January 2003, we launched an internal job application
system for branch general manager positions to encourage the quick development and advancement of younger
employees. As of May 31, 2008, we achieved a dynamic
rejuvenation of the organization by selecting 61 applicants in their thirties and appointing them as branch general managers.
Common Platform for Human Resources
MHFG

MHCB

MHBK

MHTB

MHSC

MHIR

Management-class platform
Reflect the independenceof each group company
through market pricing,risk/return structure
and value-added.

Promote cross-company personnel exchanges using a portable retirement benefits system, etc.,
while maintaining the culture and autonomy of each group company.

Proactive personnel exchanges across group companies.
Welfare benefits platform(Health insurance association, employees' pension funds, cafeteria plan, etc.)
Human resources framework platform(Job groups, job grades, job application system, etc.)

50

CommonPlatform

Internal Control Systems
Compliance Structure

administrator at each unit reviews the status of compliance.
MHFG has established the Internal Controls and Audit

Basic Compliance Policy

Hotline, a system designed for obtaining concerns

As one of Japan's leading comprehensive financial

regarding questionable accounting or auditing mattersgroups, we remain conscious of the importance of ourfrom in and outside the company.

social responsibilities and public mission at all times. We

Other core group companies such as MHTB and MHSC

define compliance as “the strict observance of all laws

have also established compliance structures adapted toand regulations and the pursuit of fair and honest corpo-

the characteristics of their respective businesses.

rate activities that conform to the norms accepted by

MHFG monitors the status of compliance of the groupsociety” and view ongoing compliance as one of the basic

through reports submitted by our principal banking sub-principles of sound business management. Each of oursidiaries and other core group companies and adopts

group companies maintains its own compliance structure

appropriate responses when necessary.

in line with the basic policies established by MHFG.

Compliance at subsidiaries of our principal banking
subsidiaries and other core group companies is moni-Compliance Structure

tored and managed by their respective parent.

The chief executive officer of MHFG, MHCB and MHBK
each generally oversees compliance matters of the respec-

Compliance Activities

tive company, and such chief executive officers also head

We have established the “Mizuho Code of Conduct,”their respective compliance committees at which impor-which sets forth clear and concrete standards of ethicaltant matters concerning compliance are discussed. The
three companies also have individual compliance divisions
under a chief compliance officer. These divisions are
responsible for compliance planning and implementationand control overall compliance management at therespective companies. At the level of each organizational
unit (such as branches and divisions) at the three companies, the head of the unit is responsible for guidance andimplementation related to compliance matters withinsuch unit, and the compliance officer or the compliance
Compliance Structure

MHFG
Board of Directors
Chief Executive Officer (CEO),
Compliance Committee(Chairman: Chief Executive Officer (CEO))
Chief Compliance Officer (CCO)(Compliance and Legal Affairs Division)
Every organizational unit
Compliance Officer/
Compliance Administrator

Head of each unit

MHCB, MHBK, and othercore group companies

Subsidiaries of the above group companies“Internal Controls and Audit Hotline”—A system designed for obtaining concerns regarding
questionable accounting or auditing matters—
Reporting Items:
MHFG has established a hotline to receive reports fromin and outside the company in connection with problems
concerning internal controls and audits of accounts andfinancial reports.
Contact Point:
This hotline has been established within an external law
office. Please use conventional mail or e-mail forreporting.
Conventional mail:
6F Round–Cross Ichibancho Bldg., Ichibancho 13-banchi,
Chiyoda-ku, Tokyo 102-0082
Mizuho Accounting Hotline, c/o Ohta Ishii Law OfficeE-mail : mizuho-kaikei@ohta-ishii.com
 When reported matters are within the scope of thereporting items, MHFG will do reasonable efforts toinvestigate the facts behind the information received
and report back on the results.
 Anonymous tips are also acceptable, but there arecases where it will not be possible to fully satisfy theintentions behind such tips owing to constraints on
investigations and the inability to report back.
 Information on persons making such reports is not disclosed to third parties other than the group companies
except in cases where the assent of the person inquestion has been obtained or such disclosure isrequired under laws and ordinances, etc.

51

Internal Control Systems

behavior, and distributed it to all directors, senior management and employees of the group so that they areManagement of customer protection refers to thewell aware of its content and act accordingly.

management required for achieving the following

Each of our group companies has also prepared afrom the perspective of improving the protection ofcompliance manual, which serves as a practical guide-

our customers and improving customer convenience.

book for rigorous compliance enforcement and clarifies

1. Ensuring the adequacy and sufficiency of thethe laws and regulations that the group companies must

explanation of transactions, products etc. as wellobserve in pursuing their business activities and the com-as the provision of information (explanation ofpliance activities they are required to follow.

products etc.) to customers regarding transac-

We conduct compliance training for directors, seniortions and products.

management and employees so that they are fully

2. Ensuring the adequacy and sufficiency of han-acquainted with the contents of the manual. We moni-dling customer consultations and complaints

tor the status of compliance levels through self assess-(customer service).

ments conducted by individual organizational units and3. Ensuring the adequacy of the management ofmonitoring conducted by the compliance division ofcustomer information (customer informationeach company.

management).

Every fiscal year, each of our group companies estab-

4. Ensuring the adequacy of managing customers

lishes a compliance program, which contains concreteand customer information in the event that ourmeasures for compliance enforcement such as measures

operations are outsourced (management of out-

related to the management of the compliance frame-

sourcing).

work, training and assessments. Progress regarding theimplementation of the compliance program is monitored
every six months.

In addition to designating the compliance department
as the customer protection general management depart-(As of June 26, 2008)

ment, each company establishes its own management
structure by stipulating which departments are in chargeof management of explanation of products etc., management of customer service, management of customer

Management of Customer Protection
Structure

Customer Protection Structure
Board of Directors

MHFG

Basic Approach
We give first priority to our customers, and based on the

Chief Executive Officer(CEO)

Executive
Management Committee

policy that earning the trust of our customers is the basis
for ensuring sound management and earning the trust ofother stakeholders, we will continuously verify andimprove the operations of the group from the perspectiveof customers in order to ensure adequacy of operations
and improve customer convenience as well as compliance,and manage customer protection uniformly in the group.

Officers responsible for the general managementof customer protection(Compliance and Legal Affairs Division)
Departments in charge of managementof customer protection
Explanation of products
etc. management

Customer service
management

Customer information
management

Outsourcing
management

Overview of Management of Customer Protection
We define management of customer protection as
described below, clarifying the group management struc-

MHCB, MHBK, and othercore group companies

ture as well as management methods, and ensuring thateach company draws up customer protection management regulations.

52

Subsidiaries of the above group companies

information and management of outsourcing (hereinafter
customer management tasks).

Overview of the Information Security
Management System

The chief executive officer of MHFG appoints officers

We have clarified the group management system as well

responsible for the general management of customer

as management methods for information security man-protection in order to promote appropriate management

agement, and each company has drawn up its own regu-

of customer protection. The Compliance and Legal

lations concerning information security management. We

Affairs Division is in charge of general management andare also building an information security managementmonitor management of each customer management

system, stipulating that the compliance departments oftask. The department responsible for each customer

the individual companies are to act as information secu-

management task draws up and implement proposals

rity management departments.

concerning the management tasks under their jurisdic-

The chief executive officer of MHFG appoints a chieftion. MHFG also provides centralized monitoring andinformation security officer who supervises planning, pro-management of customer protection management at theposals and implementation in connection with overall

principal banking subsidiaries and other core group com-group information security management, and the infor-

panies. The principal banking subsidiaries and other coremation security management committee handles discus-

group companies also manage customer protection man-sions and coordination of cross-divisional issues relating

agement at their own group companies.

to overall group information security management. In(As of June 26, 2008)

addition, the Information Security Management Officehas been established within the Compliance and Legal
Affairs Division to specialize in information security management and provide centralized monitoring and control

Information Security Management
Systemof the information security management situation at our
principal banking subsidiaries and other core group companies. The information security management situation at

Basic Approachsubsidiaries of our principal banking subsidiaries and otherAs the advanced information-telecommunication society

core group companies is monitored and managed by our

evolves and use of information increases exponentially,

principal banking subsidiaries and other core group com-appropriate protection of the informational assets held by

panies themselves. In every organizational unit, the heada company becomes a social responsibility, while appropriate usage of the same assets becomes the foundationof the company's competitiveness. As a provider of com-

Information Security Management System
Board of Directors

MHFG

prehensive financial services in Japan and abroad, we
believe that appropriate protection and use of informa-

Chief Executive Officer(CEO)tional resources are extremely important issues.

Information Security
Management Committee

We are striving to strengthen our information security
management system, defining information security management as all acts associated with the appropriate protection and use of group informational assets. This
includes adopting information security management
measures to ensure the confidentiality, integrity andExecutive
Management Committee

Chief Information Security Officer(Division in charge: Information Security Management
Division, Compliance and Legal Affairs Division)
Every organizational unit
Information
Security Officer

Head of each unitavailability of our informational assets, and responding torequests for disclosure from “data subjects” (the people
to whom specific information pertains) concerning per-

MHCB, MHBK, and othercore group companies

sonal information.
Subsidiaries of the above group companies

53

Internal Control Systemsof each unit is also responsible for information security
management, and an information security management

Strengthening Disclosure Controls andProcedures

officer is appointed to check on how information is handled and ensure that personnel are fully aware of andBasic Principles

well trained in safety management measures.

We aim to win the highest regard of our shareholders

Based on this information security management sys-and the market and to earn the trust of society as Japan'stem, we have drawn up and published the Privacy Policy

leading comprehensive financial services group. For thisRegarding Customer Information* that complies withreason, we place one of the highest management priori-Japan's Law Concerning the Protection of Personalties on continuing to disclose information to our cus-

Information. We are also building a system to deal withtomers, shareholders, and investors both in and outside

requests for disclosure, and strengthening our safety

Japan in a fair, timely and appropriate manner, in ordermanagement measures.

that they may form proper judgments and appraisals of*The Privacy Policy Regarding Customer Information includes the policy andprocedures for management of customer information. Our group companies
have each established privacy policies regarding customer information, which
are published on their individual websites, in this annual review, and via otherdisclosure tools.

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 we establish and implement appropriate Disclosure
Controls and Procedures.

MHFG Acquires Certification for
Information Security Management

Outline of Disclosure Controls and Procedures

MHFG obtained certifications for the Information

 Establishment and Implementation of Disclosure

Security Management Systems of all divisions of theControls and Procedures

company under both the Conformity Assessment

Our Disclosure Controls and Procedures are established

Scheme, “ISO/IEC27001: 2005,” the international

to observe applicable domestic and international laws

standard, and “JIS Q 27001: 2006,” the domestic

and regulations as well as stock exchange rules and to

standard. MHBK also obtained the same certifica-

implement fair, timely and appropriate corporate disclo-tions for its “Planning, promotion and sales sup-sure. The Disclosure Controls and Procedures are theporting divisions of financial products and services

process carried out by directors, officers and employees

for individuals, corporate and public sector cus-of our group and include internal controls designed to

tomers” of the head office.

provide reasonable assurance regarding the reliability of

MHFG is striving to strengthen its information

financial reporting and the preparation of financial state-

management procedures by promoting efforts toments. We have established the basic principles underly-

obtain a broader range of credentials. This includes

ing our Disclosure Controls and Procedures as well as our

encouraging our principal banking subsidiaries andinternal rules related to Disclosure Controls andother core group companies to acquire certification

Procedures that govern the management framework forin specific operational sectors.

the entire group including group companies, and we(As of June 26, 2008)

endeavor to establish, implement and continuously
improve our Disclosure Controls and Procedures. Our disclosure committee is the principal management body thatis responsible for discussing and exploring matters relating to Disclosure Controls and Procedures.

 Evaluation of Effectiveness of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our
Disclosure Controls and Procedures is conducted regularly
by reviewing the contents of such documentation and54

their implementation. In addition, evaluation of the effec-

Risk Management Structure

tiveness and appropriateness of Disclosure Controls andProcedures is conducted through internal audits.

Commitment to Risk Management

 Others
We established a “Code of Ethics for Financial Profession-

Basic Approachals” to be observed by all directors and executive officers,

Progress in financial deregulation and internationalization

as well as all managers and other employees within our

has led to rapid growth in the diversity and complexity ofgroup who engage in financial reporting, accounting orbanking operations, exposing financial institutions to vari-

disclosure. We have also developed the “Internal

ous risks, including credit, market operations, information

Controls and Audit Hotline”, a system designed fortechnology, legal, settlement and other risks. We recog-

obtaining concerns regarding questionable accounting or

nize the conducting of operations tailored to the risks

auditing matters from both inside and outside the groupand managing such risks as a key issue relating to overall(Please refer to page 51).

management. In order to implement our business strat-

Moreover, we established “Disclosure Policy” which

egy while maintaining our financial stability, we maintain

includes basic principles regarding disclosure and frame-

comprehensive risk management and control measures.

work of disclosure controls and procedures, andWe maintain basic policies for risk management estab-announce on our website as well as this annual review.

lished by our board of directors that are applicable to theDisclosure Controls and Procedures System
Board of Directors

MHFG

entire group. These policies clearly define the kinds ofrisks to be managed, set forth the organizational structure and provide for the human resources training necessary for appropriate levels of risk management. The

Chief Executive Officer(CEO)

Disclosure Committee

policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In

Chief Financial Officer(in charge of Disclosure Controls and Procedures)and Other Heads of Groupssures to strengthen and enhance the sophistication of
our risk management system.

Every organizational unit
Head of each unit

line with these basic policies, we maintain various mea-

Disclosure Control
Officer

Risk Management Structure
Each of our subsidiaries adopts appropriate risk manageMHCB, MHBK, and otherment measures for its business based on the size andcore group companies

nature of its risk exposures, while MHFG controls risk
management for the group as a whole. MHFG regularly

Subsidiaries of the above group companies

receives reports and applications concerning the risk
management situation from our principal banking sub-(As of June 26, 2008)

sidiaries and other core group companies and gives themappropriate instructions concerning risk management. Our
principal banking subsidiaries and other core group companies each maintains its own system for managing various types of risk, regularly receiving reports on the statusof risk at their respective subsidiaries, and gives themappropriate instructions concerning risk management.

55

Internal Control Systems

Risk Management StructureManage overall group risk
Manage risk of core group companies
Set risk management policies.
Give instructions concerning
risk management.

MHFG
Report therisk management situation.

Principal banking
subsidiaries and othercore group companies
MHCB
MHBK
MHTB
, etc.

Give instructions
concerning
risk management.

Report the risk
management situation.

Subsidiaries
managed by theprincipal banking
subsidiaries andother core groupcompanies

Approach to Basel II

each type of risk individually, we have established a risk

The BIS Regulations, the regulations for international

management structure to identify and evaluate overall

standards of the health of banks first implemented

risk and, where necessary, to devise appropriate

in 1992, have been revised in light of developments

responses to keep risk within limits that are manageriallyin risk management methods in order to better

acceptable in both qualitative and quantitative terms. In

reflect the actual substance of the risks. Theseline with the basic policies relating to overall risk manage-

amended regulations, known as “Basel II,” focus on

ment laid down by MHFG, companies within the group

three main points. The first is minimum capital

identify risk broadly and take a proactive and sophisticat-

requirements relating to risk which should be main-

ed approach to risk management, including methodolo-

tained by banks, with respect to which the calcula-gies for operations that involve exposures to multiple cat-tion method for credit risk was changed andegories of risk such as settlement and trust businesses.

operational risk was added. The second is a supervisory review process with respect to assessment of

Risk Capital Allocation

risks that cannot be fully addressed through mini-

We endeavor to obtain a clear grasp of the group's over-

mum capital requirements alone. The third is market

all risk exposure and have implemented measures to keep

discipline allowing for assessment by the market

such risks within the group's financial base in accordance

through appropriate disclosure. We have obtainedwith the risk capital allocation framework. More specifi-

the necessary approvals from government authori-

cally, we allocate risk capital to our principal banking sub-ties on calculation methods for each type of risk andsidiaries, including their respective subsidiaries, and otherhave been calculating capital adequacy ratios based

core group companies to control risk within the limits set

on Basel II from March 31, 2007, when the Basel II

for each company. We also control risk within manageri-

was implemented in Japan. In addition, we are plan-

ally acceptable limits by working to ensure that the over-ning and preparing to apply advanced approaches

all risk we hold on a consolidated basis does not exceed

for calculating credit risk and operational risk thatshareholders' equity and other measures of financial

can reflect our risk profiles more appropriately.

strength. To ensure the ongoing financial health of
MHFG, our principal banking subsidiaries and other coregroup companies, we regularly monitor the manner inGeneral Concept of Risk Management

which risk capital is being used in order to obtain aproper grasp of the risk profile within this framework.

56

Basic Approach

Reports are also submitted to the board of directors andWe classify our risk exposures according to the various

other committees of each company. Risk capital is allo-kinds of risk, including credit risk, market risk, liquidity

cated to MHCB, MHBK, MHTB and MHSC by risk cate-risk and operational risk, and manage each type of risk

gory, and is further allocated within their respective

according to its characteristics. In addition to managing

business units based on established frameworks.

Allocation of Risk Capital(Example)
MHCB

MHFG

MHCB

Capital account, etc.

Principal
banking
subsidiaries
and othercore groupcompanies'
risk exposure*

MHBK
MHTB

Allocated risk capital

The group's risk
exposure

The group's financial
strength

Risk limits, etc., based on risk capital are set, and controls are
imposed on each type of risk.

Credit risk
Market risk

Allocation toeach business unit

Equity risk
Operational riskGroupcompanies, etc.

MHSC
MHBK
MHTB

Other risk exposure

MHSC*Including risk exposures of the subsidiaries of the core group companies.

Credit Risk Management

management committee of MHFG discusses and coordinates basic credit risk policy and overall credit portfolio

Basic Approach

management and monitoring for the group. The chief

We define credit risk as the group's exposure to the risk

risk officer of MHFG is responsible for matters relating toof losses that may be incurred due to a decline in, or total

credit risk management planning and operations. The

loss of, the value of assets and off-balance-sheet instruments, as a result of deterioration in a counterparty's
financial position. We have established the methods andCredit Risk Management Structure

MHFG

Board of Directors

structures necessary for grasping and managing credit
risk, which has become increasingly complex due tofinancial deregulation, internationalization and the growing sophistication of transactions. MHFG manages credit

Executive Management
Committee

Chief Executive Officer(CEO)
Head of Risk Management
Group (CRO)

Portfolio Management
Committee

risk for the group as a whole. More specifically, we haveadopted two different but mutually complementary
approaches in credit risk management. The first approachis “credit management,” in which we manage theRisk Management Division, Credit Risk Management Division•Set risk management policies•Give instructions concerning
risk management•Report the risk
management situation

process for each individual transaction and individual
Principal banking subsidiaries andother core group companies

obligor from execution until collection, based on ourassessment of the credit quality of the customer. Throughthis process, we curb losses in the case of a credit event.

MHCB

MHBK

MHTB

MHSC

Other coregroup
companies

The second is “credit portfolio management,” in which
we utilize statistical methods to assess the potential for
losses related to credit risk. Through this process, we
identify credit risk and respond appropriately.

Credit Risk Management Structure Credit Risk Management of MHFG
Our board of directors determines the group's basic cred-

Board of Directors

Chief Executive Officer
Senior executive officers
responsible for risk management

Principal Banking
Subsidiaries
Executive Management
Committee
Business Policy Committees

Divisions responsible for credit risk management(Risk Management Division, Credit Risk Management Division)

it risk management policies. In addition, the portfolio

57

Internal Control Systems

58

Risk Management Division and the Credit Risk

determined in light of fundamental principles focusing on

Management Division of MHFG jointly monitor, analyze

public welfare, safety, growth and profitability.

and submit suggestions concerning credit risk and formu-

 Internal Rating System

late and execute plans in connection with basic matters

One of the most important elements of the risk manage-

pertaining to credit risk management.

ment infrastructure of our principal banking subsidiaries

 Credit Risk Management at Our Principal Banking

is the use of an internal rating system that consists of

Subsidiaries and Other Core Group Companies
Our principal banking subsidiaries and other core groupcredit ratings and pool allocations. Credit ratings consist

companies manage their credit risk according to the scaleof the obligor, and transaction ratings which represent

and nature of their exposures in line with basic policies set

the possibility of ultimately incurring losses related toforth by MHFG. Each company's board of directors deter-each individual claim by taking into consideration themines key matters pertaining to credit risk. Our principal

nature of any collateral or guarantee and the seniority ofbanking subsidiaries have each established business pol-the claim. In principle, obligor ratings apply to all obligors

icy committees to discuss and coordinate overall manage-

and are subject to regular reviews at least once a year toment of their individual credit portfolios and transaction

reflect promptly the fiscal period end financial results ofpolicies towards obligors. The senior executive officer ofthe obligors, as well as special reviews as required when-each principal banking subsidiary responsible for risk

ever the obligor's credit standing changes. This enables

management oversees matters relating to credit risk man-our principal banking subsidiaries to monitor both indi-

agement planning and operations. The credit risk manage-

vidual obligors and the status of the overall portfolio in ament division of each principal banking subsidiary istimely fashion. Because we consider obligor ratings to be

responsible for credit management and credit risk measur-

an initial phase of the self-assessment process regarding

ing and monitoring, and such division regularly presents

the quality of our loans and off-balance-sheet instru-

reports regarding the risk management situation of suchments, such obligor ratings are closely linked to the oblig-banking subsidiary to MHFG. Individual credit examination

or classifications and are an integral part of the process

divisions approve individual transactions in accordancefor determining the reserves for loan losses and write-offs

with the lines of authority set forth in the basic policies forin our self-assessment of loans and off-balance-sheet

credit risk management. To provide checks and balances,

instruments (Please refer to Connection between Obligor

each of our principal banking subsidiaries has also estab-Ratings, Definition of Obligor Classifications of Self-

lished credit review divisions to function as internal audi-

Assessments, Claims Disclosed under the FRL and Non-of obligor ratings which represent the level of credit risk

tors that are independent of the business divisions.

Accrual, Past Due & Restructured Loans). Pool allocations

 Individual Credit Management

are applied to small claims that are less than a specified

Our principal banking subsidiaries use a unified credit rat-

amount by pooling customers and claims with similar risk

ing system and credit risk measurement tools to ascertain

characteristics and assessing and managing the risk forand monitor the status of their portfolios. They are alsoeach such pool. We efficiently manage credit risk andimproving their credit decisions and post- transaction

credit screening by dispersing a sufficient number ofmanagement functions by examining individual transac-

small claims within each pool. We generally review thetions from these viewpoints, providing internal audits andappropriateness and effectiveness of our approach torisk management guidance to individual business promo-

obligor ratings and pool allocations once a year in accor-

tion offices. MHSC and other core group companies fol-dance with predetermined procedures.

low credit risk management procedures that suit the Self-Assessment, Reserves and Write-Offs

characteristics of their respective business sectors.

We conduct self-assessment of assets to ascertain the Credit Policies

status of assets both as an integral part of credit risk

The basic code of conduct for all of our officers andmanagement and in preparation for appropriate account-employees engaged in the credit activities is set forth ining treatment, including reserves for loan losses and off-

our credit policies. Seeking to fulfill the bank's publicbalance-sheet instruments and write-offs. During theand social role, our basic policy for credit activities is

process of self-assessment, obligors are categorized intoConnection between Obligor Ratings, Definition of Obligor Classifications of Self-Assessments,
Claims Disclosed under the FRL and Non-Accrual, Past Due & Restructured Loans
Definition of Obligor
Obligor Classifi- Ratings
cations of Self- (Major
Assessment Category)Definition of Ratings

Category I(NonCategorized)

Category II

Category III

Claims Non-Accrual,
Category IV
Disclosed Past Due &(Nonunder the RestrucCollateralized)
tured Loans
FRL

Obligors whose certainty of debt fulfillment

A1–A3 is very high, hence their level of credit risk is
excellent.
Obligors whose certainty of debt fulfillment poses

B1–B2 no problems for the foreseeable future, hence
NormalObligors

their level of credit risk is sufficient.
Obligors whose certainty of debt fulfillment
C1–C3 and their level of credit risk pose no problems for the foreseeable future.

All credit given
to Normal
Obligors.

NormalClaimsObligors whose current certainty of debt fulfill-

D1–D3 ment poses no problems, however, their resistance to future environmental changes is low.

E1
Watch
Obligors

E2 R

Intensive
Control
Obligors

F1

Substantially
Bankrupt
Obligors

G1

Bankrupt
Obligors

H1

Obligors who require close watching going
forward because there are problems with
their borrowings, such as reduced or suspended interest payments, problems withfulfillment such as de facto postponements
of principal or interest payments, or problems with their financial positions as a resultof their poor or unstable business conditions.

Credit given to
Watch Obligors
other than thoseincluded in
Category I.

Claims forSpecialAttention

Restructured
Loans
Loans Past Duefor 3 Months
or MoreObligors who are not yet bankrupt but arein financial difficulties and are deemed to bevery likely to go bankrupt in the future
because they are finding it difficult to makeprogress in implementing their management
improvement plans (including obligors who
are receiving ongoing support from financial
institutions).

Credit given to
Credit toIntensive Conobligors which
trol Obligors
Claims withhas pledgedother than thoseCollection
collateral or is
included in CatRisk
covered by
egory
I
and
Catguarantees,
Non-Accrual
egory II.
considered ofDelinquent
Credit to oblighigh quality,
Loans
ors
which
is
covsuch as deposit
The difference
Obligors who have not yet gone legally or
Credit to Bankeredbygeneralbetween theformally bankrupt but who are substantially collateral.
collateral, such assessed value and rupt and Substan- Claims
bankrupt because they are in serious finantially Bankrupt
as real estatemarket value of colcial difficulties and are not deemed to beagainst Bankand guarantees. lateral on credit to Obligors, othercapable of restructuring.
than those in Cat- rupt and SubBankrupt and Subegory I, Category stantiallystantially Bankrupt
II and Category III Bankrupt
Obligors (i.e., the(credit that is
Obligors, and Loans toportion of loans for
Obligors who have already gone bankrupt,
judged to be
Bankrupt
equivalent
which final collection
from both a legal and/or formal perspective.
unrecoverable or
Obligors
problems or losses
without value).
are anticipated).

Method for Reserves and Write-Offs
Normal Obligors

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
for Possible 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

Substantially
Bankrupt Obligors
Bankrupt 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
based on 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.

certain groups taking into consideration their financial

accounting treatment, including reserves for loan losses

condition and their ability to make payments, and credit

and off-balance-sheet instruments and write-offs.

ratings are assigned to all obligors, in principle, to reflect

Specifically, the credit risk management division of eachthe extent of their credit risks. The related assets are thenof our principal subsidiaries is responsible for the overall

categorized into certain classes based on the risk ofcontrol of the self-assessment of assets of the respective

impairment. This process allows us to identify and control

banking subsidiaries, cooperating with the administrative

the actual quality of assets and determine the appropriate

divisions specified for each type of asset, including loan59

Internal Control Systems

portfolios and securities, in executing and managing

Loss Distribution

self-assessments.

Frequency

 Credit Screening
Prevention of new non-performing loans through routine

Averagecredit management is important in maintaining the quality of our overall loan assets. Credit decisions involve
analysis and screening of each potential transaction

This amount depends on theconfidence interval. For
example, if the confidence
interval is set at 99%, it is the
9,900th smallest loss figureout of 10,000 trials.

within the relevant business division. In case the screening exceeds the authority of the division, the credit divi-

Loss amountsion at headquarters carries out the screening. The credit

Credit VaRdivision has specialist departments for different indusExpected
loss

tries, business sizes and regions, carries out timely andUnexpected loss

specialized examinations based on the characteristics ofthe customer and its market, and provides appropriate

Portfolio Management

advice to the business division. In addition, in the case of Risk Measurement

obligors with low obligor ratings and high downside

We use statistical methods to manage the possibility ofrisks, the business division and credit division jointly clar-loan losses by measuring the expected average loss for a

ify their credit policy and in appropriate cases assist oblig-

one-year risk horizon (“expected loss”) and the maximum

ors at an early stage in working towards rehabilitation.

loss within a certain confidence interval (“credit VaR”).

 Collection and Disposal of Non-Performing Loans

In establishing transaction spread guidelines for credit

With respect to collection and disposal of non-performing

transactions, we aim to ensure an appropriate return fromloans, our specialist unit maintains central control andthe transaction in light of the level of risk by utilizing

pursues corporate revitalization or collection efforts, as

expected losses as a reference. Also, we monitor ourappropriate, toward taking the non-performing loans off-credit portfolio from various perspectives and set certainbalance. Specifically, we believe that supporting the revi-

limits so that losses incurred through a hypothetical real-talization efforts of corporations is an important role for

ization of the full credit VaR amount would be within thefinancial institutions, and we support corporations under-amount of risk capital and loan loss reserves.

going revitalization by reviewing business plans, advising Risk Control Methods

on revitalization methods and utilizing corporate revital-

We recognize two types of risk arising from allowing too

ization schemes such as divestitures and mergers andlarge a proportion of overall credit risk to be allocated inacquisitions, taking advantage of our group-widecertain areas. One type is “credit concentration risk,” which

resources. These efforts have been steadily producing sat-stems from granting excessive credit to certain individual

isfactory results. In addition, we work on final disposal ofcounterparties. The other type is “chain-reaction default

non-performing loans efficiently and swiftly by conduct-risk,” which arises from granting excessive credit to certain

ing bulk sales and by utilizing Mizuho Servicing, our sub-corporate groups, industrial sectors and other groupings.

sidiary that specializes in performing debt collection

We manage these risks in line with our specific guidelines

services for our group companies.

for each. The individual risk management divisions of our

Allocation of Risk Capital and Control of Credit Risk
Credit VaR

Allocation of risk capital
Credit concentration risk
 Individual company ratings-based
credit guidelines

MHCB: Sets , , , 
MHBK: Sets , , 
MHTB: Sets , , 60

Chain reaction default risk

Control

Equivalent to credit concentration risk amounts

 Corporate group-based credit guidelines Geographical area/country-based
credit guidelines
 Industrial sector-based credit guidelines

Equivalent to chain reaction default risk amounts

principal banking subsidiaries are responsible for monitor-

Market and Liquidity Risk Management

ing adherence to these guidelines and reporting to theirrespective business policy committees. (Please refer to

Basic Approach

Allocation of Risk Capital and Control of Credit Risk.)

We define market risk as the risk of losses incurred by the Portfolios of Our Principal Banking Subsidiaries

group due to fluctuations in interest rates, stock prices

and Certain Other Core Group Companies

and foreign exchange rates. Our definition includes the

While MHCB's credit portfolio consists primarily of loansrisk of losses incurred when it becomes impossible to exe-

to Japanese public companies and other major Japanesecute transactions in the market because of market confu-

enterprises, it also includes a significant proportion ofsion or losses arising from transactions at prices that areloans to overseas corporations, including foreign sub-significantly less favorable than usual. We define liquidity

sidiaries of Japanese corporations that are diversified inrisk as the risk of losses arising from funding difficulties

terms of the regions in which the borrowers are located.

due to a deterioration in our financial position that makes

MHBK's portfolio is diversified among relatively small

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

accounts centered on individuals, domestic corporations

to raise funds at significantly higher interest rates thanincluding mainly small and medium-sized enterprises andusual. MHFG manages market and liquidity risk for the

middle-market corporations, public sector entities andgroup as a whole.

other customers in Japan. While retaining the principalfeatures of each of the two banking subsidiaries' respec-

Market Risk Management Structure

tive portfolios, we aim to reduce expected losses while Market Risk Management of MHFG

simultaneously utilizing sophisticated financial tools

Our board of directors determines key matters pertaining

based on which they make strategic acquisitions andto market risk management policies. The ALM & market

sales of assets. While closely monitoring the potential forMarket and Liquidity Risk Management Structure

unexpected losses, they also aim to raise overall group
capital efficiency, boost profitability and shareholder

MHFG

Board of Directors

value, and enhance the sophistication of their credit risk
management. To control credit concentration in certain
companies, MHTB and MHSC have set credit limits
according to their customers' creditworthiness and con-Chief Executive Officer(CEO)

Executive Management
Committee
ALM & Market Risk
Management Committee

Head of Risk Management
Group (CRO)trol their portfolios in an appropriate manner by adhering

Risk Management Division

to these limits.
•Set risk management policies•Approve limits•Give instructions concerning
risk management

MHCB's Credit Portfolio
Asia

Other

•Report the risk
management situation•Apply for limits

EuropePrincipal banking subsidiaries andother core group companies

Japan
North
AmericaMHCB

MHBK's Credit Portfolio
Other

Individuals

MHBK

MHTB

Board of Directors

Domestic SMEs
and middle-market
corporations
Publicsectorentities

Chief Executive Officer (CEO)Senior executive officers
responsible for risk management

MHSC

Other
core groupcompanies

Principal banking
subsidiaries and othercore group companies
Executive Management Committee
ALM & Market Risk
Management Committee

Offices
Risk Management Division

Middle Offices
Front Offices

61Internal Control Systems

risk management committee of MHFG broadly discusses

management while their chief executive officers are

and coordinates matters relating to basic asset and liability

responsible for controlling market risk. Their respective

management policies, risk planning and market risk man-business policy committees, including their ALM & market

agement and proposes responses to emergencies such as

risk management committees, are responsible for overall

sudden market changes. The chief risk officer of MHFG is

discussion and coordination of market risk management.

responsible for matters relating to market risk manage-

Specifically, these committees discuss and coordinate mat-ment planning and operations.

ters relating to basic asset and liability management poli-

The Risk Management Division of MHFG is responsible

cies, risk planning and market risk management andfor monitoring market risk, reports and analyses, propos-

propose responses to emergencies such as sudden market

als, setting limits and guidelines, and formulating andchanges. The chief risk officer of each subsidiary is respon-

implementing plans relating to market risk management.

sible for matters pertaining to planning and implementing

The Risk Management Division assesses and manages

market risk management. Based on a common group risk

overall market risk of the group. It also receives reports

capital allocation framework, the above-mentioned sub-from our principal banking subsidiaries and other coresidiaries manage market risk by setting limits according togroup companies on their market risk management thatthe risk capital allocated to market risk by MHFG.

enable it to obtain a solid grasp of the risk situation, sub-

These companies have established specialized company-

mitting reports to the chief executive officer on a dailywide market risk management divisions to provide inte-basis and to our board of directors and the executive

grated monitoring of market risk, submit reports, analyses

management committee of MHFG on a regular basis.

and proposals, set limits and formulate and implement

To manage market risk, we set limits that correspondplans relating to market risk management. The risk man-to risk capital allocations according to the risk profiles ofagement divisions of each company submit reports on theour principal banking subsidiaries and other core group

status of market risk management to their respective chief

companies and thereby prevent market risk from exceed-

executive officers and top management on a daily basis,ing our ability to withstand losses based on our financial

and to their board of directors and executive management

strength represented by capital, etc. The amount of risk

committee on a regular basis. They also provide regular

capital allocated to market risk corresponds to VaR andreports to MHFG. To provide a system of mutual checks

additional costs that may arise in order to close relevant

and balances in market operations, they have establishedpositions. For trading and banking activities, we set limits

middle offices specializing in risk management that arefor VaR and for losses. For banking activities, we set posi-

independent of their front offices, which engage in market

tion limits based on interest rate sensitivity as needed.

transactions, and their back offices, which are responsible

These limits are discussed and coordinated by the ALM

for book entries and settlements. When VaR is not ade-& market risk management committee, discussed further

quate to control risk, the middle offices manage risk using

by the executive management committee, then deter-

additional risk indices, carry out stress tests and set stop

mined by the chief executive officer. Various factors areloss limits as needed. They monitor their market liquidity

taken into account including business strategies, historicalrisk for individual financial products in the market while

limit usage ratios, risk-bearing capacity (profits, total capi-

taking turnover and other factors into consideration.

tal and risk management systems), profit targets and the62market liquidity of the products involved.

Liquidity Risk Management Structure Market Risk Management at Our Principal

 Liquidity Risk Management of MHFG

Banking Subsidiaries and Other Core Group

Our liquidity risk management structure is generally theCompanies

same as the market risk management structure described

Our principal banking subsidiaries and MHSC which

above. However, the head of the Financial Control &account for most of the group's exposure to market risk

Accounting Group of MHFG is additionally responsible forhave formulated their basic policies in line with the basic

matters relating to planning and running cash flow man-policies determined by MHFG. Their boards of directors

agement operations, while the Financial Planning Division

determine important matters relating to market risk

is responsible for monitoring and adjusting the cash flowmanagement situation and for planning and implementing
cash flow management. Reports on the cash flow situa- Our Response to Dislocation in Global Financial
Marketstion are submitted to the ALM & market risk management

A steep rise in the U.S. subprime loan delinquency ratecommittee, the executive management committee andcaused a sharp drop in the price of related securitization

the chief executive officer.

products. Thereafter, the price of securitization and otherWe measure liquidity risk using indices pertaining to

products, including securitization products not directly

cash flow, such as limits on funds raised in the market.

related to subprime loans, declined sharply in global

Limits on liquidity risk are discussed and coordinated byfinancial markets as market liquidity was diminished.

the ALM & market risk management committee, discussed

During the fiscal year ended March 31, 2008, the global

further by the executive management committee andfinancial markets thus experienced a significant stress sit-

determined by the chief executive officer. We have estab-uation as a result of such market dislocation.

lished classifications for the cash flow conditions affecting

Because market risk measurements and management

the group, ranging from “normal” to “cause for concern”

using the value-at-risk method is based on historical data,and “critical,” and have established procedures for dealing

they are subject to limitations in such market environ-with cases which are deemed to fall into the “cause forment. We thus (i) strengthened the management of max-

concern” or “critical” categories. In addition, we have con-imum exposure limits for securitization products and (ii)structed a system under which we will be able to respondconducted stress testing based on diminished market liq-smoothly in the event of emergency situations that affectuidity for securitization products.

our funding by establishing action plans.

 Liquidity Risk Management at Our Principal

Status of MHFG's Market Risk

Banking Subsidiaries and Other Core Group Back Testing

Companies

In order to evaluate the effectiveness of market risk mea-

The liquidity risk management structures of MHCB,

surements calculated using the value-at-risk method, we

MHBK, MHTB and MHSC are generally the same as the

carry out regular back tests to compare value-at-risk withaforementioned market risk management structures, but

assumptive profits and losses. Assumptive profits andthe senior executives responsible for risk management

losses accounts for general market risk. The graph below

are responsible for matters pertaining to planning andshows daily value-at-risk of trading activities for the fiscal

conducting liquidity risk management, while the senioryear ended March 31, 2008, and the corresponding

executives of the asset and liability management andpaired distribution of profits and losses:

trading units are responsible for matters pertaining toplanning and conducting cash flow management.
The methodologies used for ensuring precise control ofliquidity risk include the formulation of management
indices pertaining to cash flow, such as limits on funds
raised in the market. As with MHFG, the above-mentioned
companies have established classifications for the cash
flow affecting them, ranging from “normal” to “cause forconcern” and “critical,” and have established procedures

Fiscal 2007 Back Testing
Assumptive profit or loss (billions of yen)
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0
(1.0)
(2.0)
(3.0)
(4.0)
(5.0)
(6.0)
(7.0)
(8.0)

0

1.0

2.0

3.0

concern” or “critical” categories.
Each subsidiary has adopted stringent controls that call

4.0

5.0

6.0

7.0

8.0

VaR (billions of yen)for cases which are deemed to fall into the “cause for

We had no cases where profits/losses exceeded valueat-risk during the period.

for the submission of reports on liquidity risk management

 Stress Testing

and cash flow management to the ALM & market risk

Because the value-at-risk method is based on statisticalmanagement committee and other business policy com-assumptions, we conduct stress testing to simulate themittees, the executive management committee and thelevels of losses that could be incurred in cases where thechief executive officer of each subsidiary.

market moves suddenly to levels that exceed these63Internal Control Systems

assumptions. The stress testing methods we use include

fluctuations occur under stress conditions. The results ofthe calculation of losses on the basis of the largest fluctu-

calculations of losses in the banking book show that they

ations occurring over a period of more than five years

are 8.8% of broadly-defined capital. Because the amountand the calculation of losses based on market fluctua-of risk on the banking book is therefore well under thetions occurring during historical market events. We also

20% threshold and within controllable limits, we do not

added stress testing based on a sharp drop in the price offall under the “outlier” category.

securitization and other products due to diminished mar-

 Value-at Risk

ket liquidity stemming from the U.S. subprime loan

We use the value-at-risk (VaR) method, supplemented

issues. The table below shows the assumed maximum

with stress testing, as our principal tool to measure mar-loss results of stress testing in trading activities using the

ket risk. The value-at-risk method measures the maxi-

methods described above:

mum possible loss that could be incurred due to market
movements within a certain time period (or holding

Fiscal 2007 Stress Testing
At March 31, 2008 (billions of yen)period) and degree of probability (or confidence interval).

Trading Activities
Assumed maximum loss result calculated by stress testing(holding period: one month)

48.2

Assumed maximum loss result calculated by stress testing
based on a sharp drop in the price of securitization andother products due to diminished market liquidity(holding period: one year)

42.4

VaR related to our trading activities is based on the following:• variance co-variance model for linear risk and montecarlo simulation for non-linear risk;• confidence interval: one-tailed 99.0%;

 Outlier Criteria• holding period of one day; andAs part of the new capital adequacy requirements under• historical observation period of one year.

Basel II, the losses arising from a banking book in hypothetical interest rate shock scenarios under certain stress

The following tables show the VaR related to our trad-

conditions are calculated and compared with the sum of

ing activities by risk category for the fiscal years ended

Tier 1 and Tier 2 capital. If the interest rate risk of the

March 31, 2006, 2007 and 2008 and as of March 31,

banking book leads to an economic value decline of more

2006, 2007 and 2008:

than 20% of the sum of Tier 1 and Tier 2 capital, we will
be deemed an “outlier” and may be required to reduce

VaR by Risk Category (Trading Activities)(billions of yen)

the banking book risk or adopt other responses. We measure losses arising from our banking book each month asa part of our stress tests.

Fiscal 2005
Interest rate
Foreign exchange

The table below shows the results of calculations oflosses in the banking book in cases where interest rate

Equities
Commodities
Total

Daily average

Maximum

Minimum

At March 31

1.7
1.1
1.4
0.2
3.2

2.7
1.8
3.2
1.7
5.5

1.1
0.3
0.5
0.0
2.0

2.4
0.9
3.0
0.1
5.1

Daily average

Maximum

Minimum

At March 31

2.3
1.2
1.8
0.2
4.3

3.9
4.0
3.5
0.4
6.5

1.4
0.5
0.7
0.0
3.2

1.5
1.8
1.8
0.3
3.9

Daily average

Maximum

Minimum

At March 31

2.3
2.0
1.6
0.2
4.4

3.8
6.4
2.8
0.3
7.9

1.5
0.9
0.8
0.1
3.0

2.6
4.4
1.3
0.1
6.7

Fiscal 2006

Fiscal 2007 Results of Calculations under the
Outlier Framework(billions of yen)

At March 31, 2006
At March 31, 2007
At March 31, 2008
Effect of yen interest rate
Effect of dollar interest rate
Effect of euro interest rate

Amountof loss

Broadlydefined Loss ratio
capital to capital

Foreign exchange

161.3
626.1
679.3
391.2
230.2
44.3

8,993.2
8,841.3
7,708.3

Commodities

1.8%
7.1%
8.8%

Notes:1. In the above results of calculations of losses, a part of demand
deposits without fixed intervals for amending applicable interest
rates is deemed core deposits and is treated accordingly in thecalculation.
2. For the interest rate shock scenario used in connection with theabove figures, we generate annual rate fluctuation data for five
years derived from daily raw historical interest rate data of thepast six years and then apply the actual fluctuation data, whichshow a rise in interest rates, at a 99.0% confidence level to theshock scenario.

64

Interest rate
Equities
Total

Fiscal 2007
Interest rate
Foreign exchange
Equities
Commodities
Total

The following graph shows VaR figures of our trading
activities for the fiscal year ended March 31, 2008:

Characteristics of VaR Model

Fiscal 2007 VaR (Trading Activities)

VaR is a commonly used market risk management(VaR: billions of yen)
8.0

technique. However, VaR models have the following

7.0

shortcomings:

6.0• By its nature as a statistical approach, VaR estimates

5.0
4.0

possible losses over a certain period at a particular

3.0
2.0

confidence level using past market movement data.

1.0

Past market movement, however, is not necessarily agood indicator of future events, particularly potential

07.04.02
07.04.16
07.04.30
07.05.14
07.05.28
07.06.11
07.06.25
07.07.09
07.07.23
07.08.06
07.08.20
07.09.03
07.09.17
07.10.01
07.10.15
07.10.29
07.11.12
07.11.26
07.12.10
07.12.24
08.01.07
08.01.21
08.02.04
08.02.18
08.03.03
08.03.17
08.03.31

0future events that are extreme in nature.
• VaR may underestimate the probability of extreme

The following table shows VaR figures of our trading• The use of a 99.0% confidence level does not takeactivities for the fiscal years indicated:account of, nor makes any statement about, any loss-

VaR (Trading Activities)(billions of yen)es that might occur beyond this confidence level.

Fiscal 2005

Fiscal 2006

Fiscal 2007

5.5
2.0
3.2

6.5
3.2
4.3

7.9
3.0
4.4

• VaR does not capture all complex effects of various

no casesno casesno cases

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

market movements.

risk factors on the value of positions and portfolios
and could underestimate potential losses.

 Interest Sensitivity Analysis
Non-Trading Activities

We also conduct interest sensitivity analyses of interest

The VaR related to our banking activities is based on therisk, our main source of market risk. The following tablesame conditions as those of trading activities, but theshows sensitivity to yen interest risk in our banking activi-

holding period is one month.

ties as of the dates indicated. As shown in the table, we

The graph below shows the VaR related to our bank-have reduced overall sensitivity to the risk of future

ing activities excluding our strategic equity portfolio forincreases in interest rates. Interest rate sensitivity (10 BPV)

the year ended March 31, 2008.

shows how much net present value varies when interest
rates rise by 10 basis (0.1%), and it explains the impact of

Fiscal 2007 VaR (Banking Activities)

interest rate movements on net present value when short-(VaR: billions of yen)

(%)

400

1.6

350

1.4

300

1.2

250

1.0

200

0.8

150

0.6

Up to one year

0.4

From one to five years

50

0.2

Over five years

0

0.0

Total

100

JGB Yield (5-Year)07.04.02
07.04.16
07.04.30
07.05.14
07.05.28
07.06.11
07.06.25
07.07.09
07.07.23
07.08.06
07.08.20
07.09.03
07.09.17
07.10.01
07.10.15
07.10.29
07.11.12
07.11.26
07.12.10
07.12.24
08.01.07
08.01.21
08.02.04
08.02.18
08.03.03
08.03.17
08.03.31

VaR

and long-term interest rates behave differently.
Interest Sensitivity by Maturity
At March 31, (billions of yen)
2006

2007

2008 Change

(7)
(14)
(6)
(27)

(6)
(21)
(20)
(48)

(7)
(14)
(27)
(48)

(1)
7
(7)
(0)

 Market Risk Equivalent
The following table shows the VaR figures relating toour banking activities for the fiscal years indicated:

Minimum
Averagemeet the capital requirements relating to market risk (the“market risk equivalent”), we apply internal models to

VaR (Banking Activities)
Maximum

In order to calculate the amount of capital necessary to(billions of yen)calculate general market risk (risks related to factors that

Fiscal 2005

Fiscal 2006

Fiscal 2007

247.2
152.8
213.9

251.5
103.1
179.4

303.9
160.5
226.8

apply generally to the market, e.g., interest rates, foreignexchange rates) and the standardized measurement
method to calculate specific risks (risks other than generalmarket risk, e.g., credit quality and market liquidity of an65

Internal Control Systems

individual security or instrument). In addition, our internal
models are applied to trading transactions with market

Operational Risk Management Structure

liquidity based on the relevant holding period. Under theinternal models, the market risk equivalent is calculated

Chief Executive Officer(CEO)by taking the greater of (i) VaR on the calculation dateand (ii) the average VaR for the preceding 60 businessdays (including the calculation date) multiplied by a multi-

MHFG

Board of Directors

Executive Management
Committee

Senior executive officers
responsible for each typeof risk management

plication factor ranging from 3.00 to 4.00 that is deter-

Operational risk management(Risk Management Division)mined based on the number of times VaR is exceeded
upon back testing.

IT risk management
division
Operations risk
management division

The following table shows total market risk equivalent
as of the dates indicated calculated using the standard-

Divisions
responsible foreach type of risk
management

ized measurement method and internal models:
Fiscal 2007 Market Risk Equivalent
At March 31, (billions of yen)
2007

2008

ChangeCalculated using standardized
measurement method

138.2

112.9

(25.3)

Calculated using internal models

36.7
174.9

51.2
164.2

14.5
(10.7)

Total market risk equivalent•Set risk management policies•Give instructions concerning
risk management

Note: VaR used to calculate Market Risk Equivalent is based on the following:• variance co-variance model for linear risk and monte-carlo simulation for non-linear risk;• confidence interval: one-tailed 99.0%;• holding period of 10 days; and• historical observation period of one year.

•Report the risk
management situation

Principal banking subsidiaries andother core group companies
MHCB, MHBK, MHTB, MHSC, etc.

environment and internal management.
We have established and are strengthening management methods and systems to appropriately identify,

Operational Risk Management

assess, measure, monitor and control the operationalrisks which arise from the growing sophistication andBasic Approachdiversification of financial operations and developments

We define operational risk as the risk of loss that we may

relating to information technology by utilizing control

incur resulting from inadequate or failed internal

self-assessments and improving measurement methods.

processes, people and systems or from external events.

Operational risk was introduced under Basel II with

We recognize that operational risk includes information

respect to regulatory capital requirements from Marchtechnology risk, operations risk, legal risk, human31, 2007 and MHFG selected the standardized approach

resources risk, tangible asset risk, regulatory change risk

for the calculation of operational risk capital charge,

and reputational risk. We have determined risk manage-

which calculates operational risk by dividing its activities

ment policies concerning risk management structures andinto eight business lines and multiplying gross income of

methods for each kind of risk. MHCB, MHBK, MHTB,

each of those business lines by the applicable factor

MHSC, MHIS and TCSB each manage operational risk inassigned to each of the business lines.

an appropriate manner pursuant to risk management

 Control Self-Assessments

Operational Risk Management Structure

An autonomous method of risk management in which risk inherent in operations is identified and, after evaluating and monitoring risks that remains
despite implementing risk control, the necessary measures are implemented toreduce risk.

MHFG MHCB, MHBK, MHTB, MHSC, MHIS and TCSB
share common rules for data gathering, and we measure
operational risk on a regular basis, taking into accountpossible future loss events and the changes in the business

66

Glossary

policies determined by MHFG.

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

Definition

Principal Risk Management Methods

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

• Identify and evaluate the risk by setting specific standards that need to be complied withand implementing measures tailored based on evaluation results to reduce the risk.
• Ensure ongoing project management in systems development and quality control.
• Strengthen security to prevent information leaks.
• 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 thegroup 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 by headquarters.
• Introduce information technology, office automation and centralization 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 otherlegal 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.

Information
Technology Risk

Human Resources
Risk

Tangible Asset Risk

Regulatory Change
Risk

Reputational Risk

Risk that the group may incur losses due to drain
or loss of personnel, deterioration of morale,• Conduct employee satisfaction surveys.
inadequate development of human resources,• Understand the status of vacation days taken by personnel.
inappropriate working schedule, inappropriate• Understand the status of voluntary resignations.
working and safety environment, inequality or
inequity in human resource management or discriminatory conduct.
Risk that the group may incur losses from damage to tangible assets or a decline in the qualityof working environment as a result of disasters,
criminal actions or 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,
etc., and respond appropriately to such damage.

• Understand important changes in regulations or systems that have significant influence
Risk that the group may incur losses due toon our business operations or financial condition in a timely and accurate manner.
changes in various regulations or systems, such
• Analyze degree of influence of regulatory changes and establish countermeasures.
as those related to law, taxation and accounting.
• Continuously monitor our regulatory change risk management mentioned above.
Risk that the group may incur losses due to dam• Establish framework to identify and manage, on an integrated basis, information thatage to our credibility or the value of themay have a serious impact on group management and respond to such risk in a manner“Mizuho” brand when market participants orappropriate to its scale and nature.
others learn about, or the media reports on, vari• Swiftly identify rumors and devise appropriate responses depending on the urgency andous adverse events, including actual materializapossible impact of the situation to minimize possible losses.
tion of risks or false rumors.

We also recognize and manage “Information Security Risk” and “Compliance Risk”, which constitute a combination of more than one of theabove components of operational risk, as operational risk.
(As of June 26, 2008)67

Internal Control Systems

Internal Audit Structure

MHCB and MHBK have established internal audit divisions and credit review divisions to conduct internal audits

Basic Approachat their respective domestic and overseas business offices,

Internal audits are designed as an integrated process,head office divisions and group companies. Specifically,

independent from other business operations, for evaluat-

the internal audit divisions assess the suitability and effec-

ing the extent to which internal control achieves its objec-

tiveness of business activities associated with compliancetives in key areas, including appropriate risk management,

and risk management. The credit review divisions audit

efficient and effective business operations, reliable finan-credit ratings and the status of credit management incial reporting and compliance with laws, regulations andaddition to auditing the self-assessment of assets to verify

internal rules. We conduct internal audits from an objec-

the accuracy and suitability of matters deemed necessary

tive and comprehensive standpoint, independent of oper-

to assure the soundness of assets.

ational reporting lines, and offer advice and remedial Other Core Group Companies

recommendations in connection with any problems that

MHTB, MHSC and our other core group companies havemay be identified. Through this process, internal audits

also established effective and efficient internal audit struc-assist the boards of directors of each of our group com-tures adapted to the characteristics of their respective

panies to fulfill their managerial duties efficiently andbusinesses.

effectively.
In line with the Basic Policy for Internal Audit estab-

Internal Audit Management Structure

lished by MHFG, our principal banking subsidiaries and

MHFG

other core group companies conduct internal audits,

Board of Directors

which include the auditing of their respective subsidiaries.

Chief Executive Officer (CEO)Chairman of Internal
Audit Committee

In addition, with respect to the management of risks
applicable across the group, we coordinate internal audits

Internal Audit Committee

throughout the group to assess the risk management status of the group as a whole.

Everyorganizational
unit

Internal Audit Management Structure MHFG
Our internal audit committee determines all importantmatters concerning internal audits. The committee ischaired by our president and chief executive officer and isindependent of our other business operations.

Management
by MHFG

Audit

Head of Internal
Audit Group
Division in charge:
Internal Audit Division

Advice, guidance
and remedialrecommendations

Report theresults of internal
audit, etc.

MHCB, MHBK, and othercore group companies

Our internal audit committee monitors and manages
internal audits at our principal banking subsidiaries andSubsidiaries of the above group companies

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 othercore group companies and submits the results, together
with the results of their examination of the internal audit
reports, to our board of directors.

 MHCB and MHBKMHCB and MHBK have also established internal audit
committees that are independent of their other business
operations.

68(As of June 26, 2008)

Financial Analysis[Under Japanese GAAP]Key Indicators of Mizuho Financial Group, Inc.

70

Financial and Economic Environment

72

Results for the Fiscal Year ended March 31, 2008

74

Status of Asset Quality

94

69

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,

Total Income
Net Income (Loss)
Net Assets (Note 1)
Total Assets (Note 1)
Deposits
Debentures
Loans and Bills Discounted
Securities
Net Assets per Share (Yen) (Note 2)
Net Income per Share (Yen) (Note 2)
Diluted Net Income per Share (Yen) (Note 2)

2008

¥

4,649.0
311.2
5,694.1
154,412.1
86,264.0
3,159.4
65,608.7
33,958.5

2007¥

4,348.0620.9
6,724.4
149,880.0
83,608.3
4,723.8
65,964.3
36,049.9

2006¥

3,732.1
649.9
4,804.9
149,612.7
82,367.1
6,606.3
65,408.6
37,702.9

2005¥

3,455.6
627.3
3,905.7
143,076.2
80,368.0
7,795.0
62,917.3
36,047.0

2004¥

3,342.9406.9
3,644.3
137,750.0
77,487.4
9,459.5
66,205.8
32,071.6

254,722.01
25,370.25
24,640.00

336,937.64
51,474.49
48,803.07

274,906.95
55,157.14
46,234.51

131,016.15
54,625.61
37,719.13

61,980.34
36,153.27
18,754.94

Capital Adequacy Ratio (BIS Standard) (Note 3)

11.70%

12.48%

11.59%

11.91%

11.35%Net Return on Equity
PER (Times)

8.5%
14.38 x16.7%
14.74 x26.3%
17.45 x54.3%
9.28 x135.2%
12.39 xCash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities

170.7(1,118.7)(85.0)(3,104.9)
3,221.2(417.2)(1,669.1)(99.2)(446.6)

4,418.0(3,788.1)(557.7)

6,014.9(7,402.2)(130.9)Cash and Cash Equivalents at the end of the fiscal year

2,055.7

3,089.0

3,387.9

5,602.0

5,529.6

Notes: 1. “Net Assets” and “Total Assets” are calculated in accordance with “Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9, 2005), commencing with the fiscal year ended March 31, 2007.
2. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (Financial
Accounting Standard No. 2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002). “Net Deferred Hedge Losses, net of Taxes” isincluded for calculation of net assets per share commencing with the fiscal year ended March 31, 2007 in accordance with the revision of the ASBJ Guidance No.4.
3. Capital Adequacy Ratio (BIS Standard) is based on the “Standards for Bank Holding Company to Consider the Adequacy of Its Capital Based on Assets and Others Held by It and Its Subsidiaries
Pursuant to Article 52-25 of the Banking Law” (Financial Services Agency Ordinance Announcement No.20, March 27, 2006), commencing with the fiscal year ended March 31, 2007.

70

Key Indicators of Mizuho Financial Group, Inc. (Non-Consolidated)
Billions of yen

As of or for the Fiscal Years ended March 31,

Operating Income
Net Income
Common Stock and Preferred Stock
Number of Shares Issued and Outstanding
Common StockFirst Series Class I Preferred Stock
Second Series Class II Preferred Stock
Third Series Class III Preferred Stock
Fourth Series Class IV Preferred Stock
Sixth Series Class VI Preferred Stock
Seventh Series Class VII Preferred Stock
Eighth Series Class VIII Preferred Stock
Ninth Series Class IX Preferred Stock
Tenth Series Class X Preferred Stock
Eleventh Series Class XI Preferred Stock
Twelfth Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock
Net Assets (Note 1)
Total Assets (Note 1)

2008

¥

806.5
811.0

2007

¥

1,250.0
1,239.7

2006

¥

128.9
790.2

2005

¥

26.4
30.8

2004

¥

25.7
9.9

1,540.9

1,540.9

1,540.9

1,540.9

1,540.9

11,396,254.66 shares
/
/
/
/
/
/
/
/
/
943,740 shares/
36,690 shares
3,512.8
4,658.9

11,872,195.49 shares
/
/
/
/
/
/
/
/
/
943,740 shares/
36,690 shares
3,176.4
4,764.0

12,003,995.49 shares///
150,000 shares
150,000 shares////
943,740 shares/
36,690 shares
2,752.3
4,793.0

12,003,995.49 shares/
100,000 shares
100,000 shares
150,000 shares
150,000 shares
125,000 shares
125,000 shares
33,000 shares
140,000 shares
943,740 shares/
36,690 shares
2,986.2
3,178.6

11,926,964.67 shares
33,000 shares
100,000 shares
100,000 shares
150,000 shares
150,000 shares
125,000 shares
125,000 shares
140,000 shares
140,000 shares
943,740 shares
5,500 shares
36,690 shares
3,533.4
3,600.0

Net Assets per Share (Yen) (Note 2)
220,538.65
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock
10,000First Series Class I Preferred Stock/
Second Series Class II Preferred Stock/
Third Series Class III Preferred Stock/
Fourth Series Class IV Preferred Stock/
Sixth Series Class VI Preferred Stock/
Seventh Series Class VII Preferred Stock/
Eighth Series Class VIII Preferred Stock/
Ninth Series Class IX Preferred Stock/
Tenth Series Class X Preferred Stock/
Eleventh Series Class XI Preferred Stock
20,000
Twelfth Series Class XI Preferred Stock/Thirteenth Series Class XIII Preferred Stock
30,000Common Stock—First Series Class I Preferred Stock/
Second Series Class II Preferred Stock/
Third Series Class III Preferred Stock/
Fourth Series Class IV Preferred Stock/
Sixth Series Class VI Preferred Stock/
Seventh Series Class VII Preferred Stock/
Eighth Series Class VIII Preferred Stock/
Ninth Series Class IX Preferred Stock/
Tenth Series Class X Preferred Stock/
Eleventh Series Class XI Preferred Stock—
Twelfth Series Class XI Preferred Stock/Thirteenth Series Class XIII Preferred Stock—Net Income (Loss) per Share (Yen) (Note 2)
68,658.41
Diluted Net Income per Share (Yen) (Note 2) (Note 4)
64,138.22

183,338.04

94,861.81

41,782.20

46,670.33

7,000
/
/
/
/
/
/
/
/
/
20,000/30,000
—
/
/
/
/
/
/
/
/
/
—
/
—
102,168.76
95,550.05

4,000
/
/
/
47,60042,000—///20,000/30,000
—
/
/
/
—
—
—
/
/
/
—
/
—
63,040.65
53,235.99

3,500
/
8,200
14,00047,60042,00011,000
8,000
—
5,380
20,000—30,000
—
/
—
—
—
—
—
—
—
—
—
—
—
(588.84)—

3,000
22,5008,200
14,00047,60042,00011,0008,000
17,5005,380
20,0002,500
30,000
—
—
—
—
—
—
—
—
—
—
—
—
—
(2,846.42)
—

7.42x
6.85%

15.27x
6.34%

—x
—%

—x
—%

PER (Times) (Note 4)
Dividend Propensity (Note 3)

5.31x
14.56%

Notes: 1. “Net Assets” and “Total Assets” are calculated in accordance with “Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9, 2005), commencing with the fiscal year ended March 31, 2007.
2. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (Financial
Accounting Standard No.2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002). “Net Deferred Hedge Losses, net of Taxes” isincluded for calculation of net assets per share commencing with the fiscal year ended March 31, 2007 in accordance with the revision of the ASBJ Guidance No.4.
3. Dividend Propensity: Cash Dividends Declared per Share (Common Stock) / Net Income per Share (Common Stock). Dividend Propensity is not required to be disclosed due to loss position of
earnings per share for the fiscal year ended March 31, 2004 and 2005.
4. “Diluted Net Income per Share” and “PER” are not required to be disclosed due to loss position of earnings per share for the fiscal year ended March 31, 2004 and 2005.

71

Financial Analysis

Financial and Economic Environment

Economic Conditions in Japan and Overseas
Looking back over the global economic climate during the fiscal year ended March 31, 2008, in addition to the sharp slowdownof the U.S. economy due to slower growth in personal consumption, declines in housing investment or other causes attributable
mainly to the subprime loan problem, the European economy also seems to be slowing down and there has been concern about
its effect on the world economy, including Asia. Especially during the latter half of the fiscal year, the turmoil caused by the subprime loan problem, such as rapidly rising concerns over liquidity risks on securitized instruments, expanded in the international
financial and capital markets. As a result, global financial institutions announced one after another significant losses and theircapital reinforcement to cover such losses, and the unstable situation still continues. As for the Japanese economy, while soaring
prices of crude oil and raw materials are damping growth of corporate earnings, the turmoil in the financial and capital markets
and the rapid rise in the yen's exchange rate started to have an influence on the actual economy in 2008. As a result, businesssentiment is worsening.

Financial Sector
Japanese stock prices held firm during the first half of the fiscal year but dropped substantially during the latter half of the period
in the wake of an increasingly intensified downturn in the U.S. economy. In spite of a temporary rise in long-term yen interest
rates at the beginning of the fiscal year, the rates turned downward during the latter half of the period due to the declining
trends in U.S. interest rates, etc., and remained below the levels at the beginning of the fiscal year.
Financial institutions are required to further strengthen the system of internal controls in response to global concerns over the
economic slowdown and turmoil in the financial and capital markets, especially at a time when financial deregulation, including
the broadening of the scope of services that may be offered, is being promoted. In this changing economic environment, it
becomes ever more important for us to secure a competitive edge over our rivals and further strengthen profitability while further
enhancing corporate governance such as risk management.

72

Trends in Interest Rates in Japan
(%)

(%)

3.0

1.00
0.95

Long-Term Prime Rate (left scale)

Euroyen TIBOR (3-month) (right scale)

2.5

0.90
0.85
0.80

2.0

0.75

Short-Term Prime Rate (left scale)

0.70

Newly Issued Government Bond Yield (10-Year)(left scale)

0.65
0.60

1.5

0.55
0.50
1.0

0.45
0.40

Call Rate (Uncollateralized overnight) (right scale)

0.35

0.5

0.30
0.25
0.0

Apr. 2007

July 2007

Oct. 2007

Jan. 2008

Apr. 2008

0.20

Trends in TOPIX and Yen / Dollar Exchange Rate
(Point)(Yen / Dollar)
125

1,900

Yen / Dollar Exchange Rate (right scale)

1,800

120

1,700

TOPIX (left scale)

115

1,600
1,500

110

1,400

105

1,300
100
1,200
95

1,100
1,000

Apr. 2007

July 2007

Oct. 2007

Jan. 2008

Apr. 2008

9073

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

Consolidated Accounts of Mizuho Financial Group, Inc. (MHFG)
1. Scope of Consolidation and Application of the Equity Method
Companies

As of March 31,

2008

2007

ChangeNumber of consolidated subsidiaries
Number of affiliates under the equity method

146
21

133
19

13
2

2008

2007

2. Consolidated Profits and Losses
Billions of yen

For the Fiscal Years ended March 31,

Consolidated Gross Profits
Net Interest Income
Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income¥

General and Administrative Expenses
Expenses related to Portfolio Problems (including
Provision for (Reversal of) General Reserve for Possible Losses on Loans)

1,660.9
1,063.6
64.3
494.5
56.1
(17.7)¥

2,117.3
1,090.2
66.9
551.1
261.5
147.5

Change¥(456.4)(26.6)(2.6)(56.5)(205.3)(165.2)

1,124.5

1,091.6

32.9

201.7

142.6

59.0

253.3

(109.5)

362.8

9.0

9.3

(0.2)

Other

(111.0)191.9(302.9)

Income before Income Taxes and Minority Interests

486.0

974.8

(488.8)

Income Taxes–Current

32.2

43.2

(11.0)

Income Taxes–Deferred

118.5

223.6

(105.1)

Minority Interests in Net Income

24.0

86.9

(62.8)Net Gains (Losses) related to Stocks
Equity in Income from Investments in Affiliates

Net Income

¥

311.2

¥

620.9

Net Income per Share of Common Stock (Yen)¥ 25,370.25¥

51,474.49¥(309.7)¥ (26,104.24)

Credit-related Costs

¥

83.0

¥

40.1

¥

42.8

(Reference) Consolidated Net Business Profits

¥

511.1

¥

991.6

¥

(480.4)

Notes: 1. Credit-related Costs = Expenses related to Portfolio Problems (including Provision for (Reversal of) General Reserve for Possible Losses on Loans) + Reversal of Reserves for Possible Losses on
Loans, etc. + Credit Costs for Trust Accounts.
2. Consolidated Net Business Profits = Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates andcertain other consolidation adjustments.

74

Use and Source of Funds (Consolidated)
Billions of yen

Average balance
2008
2007

Change2008

Interest
2007

1,126.6
224.9(249.6)530.1¥ 2,864.7
73.7
12.8
460.3

¥ 2,562.6
76.5
19.5
470.3

(99.9)
241.0
596.5

46.4
671.7
1,507.4

22.8
592.8
1,302.1

2,281.6
958.5(1,673.1)(474.5)863.8¥ 1,801.1
709.5
23.7
58.0
606.8

¥ 1,472.3
584.6
34.0
31.9
609.6

618.0
(16.6)
1,030.6

70.5
0.0
70.2

29.0
0.0
38.9

For the Fiscal Years ended March 31,

2008

Yield
2007

ChangeUse of Funds
Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Securities
Loans and Bills Discounted

2.30%
3.35
3.86
5.23

2.08%
3.87
3.36
5.68

0.22%
(0.52)
0.49(0.45)

0.60
1.88
2.29

0.29
1.67
2.00

0.30
0.21
0.29

1.44%
0.84
0.59
0.91
4.62

1.20%
0.70
0.60
0.46
4.97

0.24%
0.14
(0.00)
0.44(0.34)

1.03
0.39
1.41

0.47
0.14
0.98

0.56
0.25
0.42

For the Fiscal Years ended March 31,

Use of Funds
Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Securities
Loans and Bills Discounted¥ 124,172.7
2,198.2
332.6
8,796.9¥ 123,046.0
1,973.2
582.2
8,266.8

7,740.4
35,704.8
65,577.8

7,840.3
35,463.8
64,981.2

Source of Funds¥ 124,490.6
Deposits
83,500.0
Debentures
3,966.9
Call Money and Bills Sold
6,373.8
Payables under Repurchase Agreements
13,115.4
Guarantee Deposits Received under Securities
Lending Transactions
6,795.1
Commercial Paper
20.0
Borrowed Money
4,970.5¥ 122,208.9
82,541.5
5,640.1
6,848.4
12,251.6
6,177.1
36.6
3,939.9¥¥

Change

¥

302.1
(2.7)
(6.7)
(9.9)
23.6
78.9
205.3

¥

328.7
124.9
(10.3)
26.0
(2.8)
41.5
0.0
31.2
%

Source of Funds
Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities
Lending Transactions
Commercial Paper
Borrowed Money

Net Fee and Commission Income (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2008

2007

Change¥ 494.5¥ 551.1¥ (56.5)

Fee and Commission Income
Deposits, Debentures and Lending Business
Securities-related Business
Remittance Business
Trust-related BusinessAgency Business
Guarantee Business
Safe Custody and Safety Deposit Box Business¥ 596.7
121.7
90.3
117.0
58.6
34.1
32.6
5.9

¥ 658.8
155.5
101.4
116.0
63.2
54.9
30.2
6.2

¥ (62.1)(33.7)(11.0)
0.9(4.6)(20.7)
2.4(0.2)

Fee and Commission Expenses
Remittance Business¥ 102.2
36.3¥ 107.7
33.7¥

Net Fee and Commission Income

(5.5)
2.6

75

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

3. Consolidated Assets, Liabilities and Net Assets
Billions of yen

As of March 31,

2008

2007

ChangeTotal Assets
Cash and Due from Banks
Trading Assets
Securities
Loans and Bills Discounted¥ 154,412.1
3,483.8
13,856.2
33,958.5
65,608.7¥ 149,880.0
3,993.3
10,414.5
36,049.9
65,964.3¥ 4,532.0(509.5)3,441.6(2,091.4)(355.5)

Total Liabilities
Deposits
Debentures
Call Money and Bills Sold

148,717.9
86,264.0
3,159.4
6,693.7

143,155.6
83,608.3
4,723.8
6,924.1

5,562.3
2,655.7(1,564.3)(230.4)

6,724.4
3,360.0
1,551.2
1,813.1¥ (1,030.2)
65.6(1,074.8)(21.0)Net Assets
Shareholders' Equity
Valuation and Translation Adjustments
Minority Interests¥

5,694.1
3,425.6
476.4
1,792.0¥

Fair Value of Other Securities (Consolidated)
Billions of yen

As of March 31, 2008

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 31,898.9
3,149.9
17,557.0
11,192.0¥ 32,576.8
4,126.6
17,458.8
10,991.2

Gross unrealized
Gains

¥

1,286.5
1,188.0
21.6
76.9

¥

Losses

608.7
211.3
119.7
277.6

Net unrealized*2
gains (losses)

¥

677.8
976.7
(98.1)(200.7)
Billions of yen

As of March 31, 2007

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 28,289.6
3,317.0
15,554.6
9,417.9¥ 30,730.7
6,010.8
15,397.1
9,322.7

Gross unrealized
Gains

¥

2,803.3
2,741.8
3.9
57.5

¥

LossesNet unrealized*2
gains (losses)

362.2
48.0
161.4
152.7

¥ 2,441.1
2,693.7(157.4)(95.2)

LossesNet unrealized
gains (losses)

246.4
163.2
(41.6)
124.9¥ (1,763.2)(1,717.0)
59.3(105.5)

Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost¥

3,609.3(167.0)2,002.3
1,774.0

Gross unrealized
Gains

Fair value¥

1,846.0(1,884.1)
2,061.7
1,668.5¥(1,516.7)(1,553.7)
17.6
19.3

¥

Notes: 1. In addition to the balances shown in the above table, Other Securities include securities which do not have readily determinable fair values such as follows:
As of March 31, 2008
Non-publicly offered bonds¥1,912.5 billion
Unlisted stock¥ 427.8 billion
Unlisted foreign securities¥ 554.5 billion
Other¥ 262.7 billion
As of March 31, 2007
Beneficial certificate of loan trust and other¥2,161.3 billion
Non-publicly offered bonds¥2,231.5 billion
Unlisted foreign securities¥1,264.8 billion
Other¥ 475.2 billion
2. Net unrealized gains (losses) include ¥37.2 billion and ¥3.9 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2008 and 2007, respectively, byapplying the fair-value hedge method. As a result, the base amount to be recorded directly to Net Assets after tax and consolidation adjustments as of March 31, 2008 and 2007 were ¥640.6
billion and ¥2,437.1 billion, respectively.

76

(Reference)
Unrealized Gains (Losses) on Other Securities (the base amount to be recorded directly to Net Assets after tax and consolidation adjustments)
For certain Other Securities (which have readily determinable fair values), unrealized gains (losses) were recognized in the statement of income by applying the fair-value hedge method. They were excluded from unrealized gains (losses) on Other Securities.
These adjusted unrealized gains (losses) were the base amount, which was to be recorded directly to Net Assets after tax and consolidation adjustments.
The base amount was as follows:
Billions of yen

As of March 31,

Other Securities
Japanese Stocks
Japanese Bonds
Other

2008

¥

2007

640.6
976.7
(124.7)(211.3)¥

Change2,437.1
2,693.7(164.1)(92.4)¥(1,796.5)(1,717.0)
39.4(118.8)

Consolidated Capital Adequacy Ratio (BIS Standard)%, Billions of yen

As of March 31,

2008

2007

Consolidated Capital Adequacy Ratio
Tier 1 Capital Ratio

11.70%
7.40%

12.48%
6.96%

Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital¥

4,880.1
3,221.8
393.6

Total Risk-based Capital¥

7,708.3

Risk-weighted Assets¥ 65,872.8¥

4,933.5
4,092.6
184.7¥

8,841.3¥ 70,795.4

77Financial Analysis

Results for the Fiscal Year ended March 31, 2008

Aggregated Figures of the Three Banks
1. Differences between Consolidated Figures and Aggregated Figures of the Three Banks
Billions of yen, %For the Fiscal Years ended March 31,

Gross Profits
Net Interest Income
Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income

MHFG(Consolidated)(a)¥Credit-related Costs

2008
AggregatedFigures of theThree Banks (b)1,660.9 ¥1,063.6
64.3
494.5
56.1
(17.7)(a) – (b) (b) / (a)1,721.8 ¥ (60.9) 103.6%
954.0
109.6
89.6
63.0
1.3
97.9
351.7
142.8
71.1
368.9
(312.8) 657.1(15.8)(1.8) 89.3

83.0

92.5

MHFG
(Consolidated)(a)¥(9.5) 111.5
117.6

2007
AggregatedFigures of theThree Banks (b)2,117.3 ¥1,090.2
66.9
551.1
261.5
147.5

1,700.2
952.5
66.1
400.8
129.4
151.3

40.1

23.3

(a) – (b) (b) / (a)¥ 417.1 80.3%
137.7 87.3
0.8 98.7
150.2 72.7
132.1 49.4
(3.8) 102.5
16.8

57.9

Net Income¥

311.2 ¥

193.5 ¥

62.1%¥

620.9 ¥

598.2

¥

22.7

96.3%

Net Business Profits¥

511.1 ¥

861.7 ¥ (350.5) 168.5%¥

991.6 ¥

844.5

¥ 147.0

85.1%

Notes: 1. Credit-related Costs = Expenses related to Portfolio Problems + Provision for General Reserve for Possible Losses on Loans + Reversal of Reserves for Possible Losses on Loans, etc. + Credit Costs
for Trust Accounts.
2. Consolidated Net Business Profits = Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates andcertain other consolidation adjustments.

Billions of yen, %

78

2008
AggregatedFigures of theThree Banks (b)As of March 31,

MHFG(Consolidated)(a)Total Assets
Securities
Loans and Bills Discounted¥ 154,412.1 ¥ 145,912.9 ¥ 8,499.1
94.4%
33,958.5
34,320.9(362.4) 101.0
65,608.7
65,666.7(58.0) 100.0(a) – (b) (b) / (a)MHFG(Consolidated)
(a)

2007
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)¥ 149,880.0 ¥ 139,572.6 ¥10,307.3 93.1%
36,049.936,403.4(353.4) 100.9
65,964.3
66,826.1(861.8) 101.3

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

For the Fiscal Years ended March 31,

Domestic Gross Profits
International Gross Profits

2008

¥

1,213.9
507.9

2007

¥

1,231.2
469.0

Change¥(17.3)
38.9

Gross Profits
Net Interest Income
Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income
Net Gains (Losses) related to Bonds

1,721.8
954.0
63.0
351.7
368.9
(15.8)
84.7

1,700.2
952.5
66.1
400.8
129.4
151.3
25.5

21.6
1.4
(3.1)
(49.1)
239.5(167.1)
59.1

General and Administrative Expenses (excluding Non-Recurring Losses)
Expense Ratio

860.1
49.9%

855.7
50.3%

4.4
(0.3)%Net Business Profits (before Provision for (Reversal of) General Reserve
for Possible Losses on Loans)Excluding Net Gains (Losses) related to Bonds

861.7
776.9

844.5
819.0

17.1
(42.0)

Provision for (Reversal of) General Reserve for Possible Losses on Loans

12.0

17.3

(5.2)

Net Business Profits

849.6

827.2

22.3

Net Non-Recurring Gains (Losses)
Net Gains (Losses) related to Stocks
Expenses related to Portfolio Problems
Other(519.9)240.1(214.8)(545.2)(18.8)(115.3)(111.1)207.6(501.0)355.5(103.7)(752.9)

Income before Income Taxes(478.7)

329.6

808.3

Income Taxes–Current

0.5

0.5

(0.0)

Income Taxes–Deferred

135.5

209.5

(74.0)Net Income

¥

193.5

¥

598.2

¥

(404.7)

Credit-related Costs

¥

92.5

¥

23.3

¥

69.2

Notes: 1. Net Business Profits (before Provision for (Reversal of) General Reserve for Possible Losses on Loans) of MHTB exclude the amounts of Credit Costs for Trust Accounts.
2. Credit-related Costs = Expenses related to Portfolio Problems + Provision for (Reversal of) General Reserve for Possible Losses on Loans + Reversal of Reserves for Possible Losses on Loans, etc. +Credit Costs for Trust Accounts.

Breakdown of Gross Profits (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Interest Income
Domestic Operations
International Operations

2008

¥

954.0
852.4
101.5

2007

¥

952.5
858.7
93.8

Change

¥

1.4
(6.2)
7.7

Fiduciary Income
Domestic Operations
International Operations

63.0
63.0
/

66.1
66.1
/

(3.1)
(3.1)
/

Net Fee and Commission Income
Domestic Operations
International Operations

351.7
276.7
75.0

400.8
319.5
81.3

(49.1)(42.7)(6.3)

Net Trading Income
Domestic Operations
International Operations

368.9(11.7)
380.7

129.4
1.3
128.0

239.5
(13.1)
252.7

Net Other Operating Income
Domestic Operations
International Operations(15.8)
33.5(49.3)

151.3(14.5)
165.8(167.1)48.0(215.2)Gross Profits¥

1,721.8¥

1,700.2

¥

21.6

79

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

Breakdown of Net Interest Income (MHCB and MHBK)
Billions of yen, %Change

2008

Yield
2007

2,380.7
72.1
155.7

2.04%
2.19
1.83

1.82%
1.90
1.63

0.21)%
0.28
0.20

111,166.3
86,213.5

1,891.4(1,535.8)

1.25
0.83

1.01
0.71

0.23
0.11

/

/

/

0.79

0.81

(0.02)

/

/

/

1.35

1.18

0.16

Domestic Operations
Use of Funds
Loans and Bills Discounted
Securities

88,568.1
52,350.1
24,496.2

87,586.5
53,160.9
25,676.3

981.5(810.8)(1,180.0)

1.35
1.65
0.95

1.15
1.39
0.88

0.19
0.26
0.07

Source of Funds
Deposits and Debentures

88,840.4
71,386.6

88,364.3
72,716.3

476.1(1,329.7)

0.44
0.31

0.23
0.16

0.21
0.15

Interest Margins

/

/

/

0.90

0.92

(0.01)

Loan and Deposit Margin

/

/

/

1.34

1.22

0.11

International Operations
Use of Funds
Loans and Bills Discounted
Securities

26,168.3
9,849.3
9,945.1

23,648.4
8,966.4
8,609.3

2,519.9882.9
1,335.8

4.31
5.02
4.00

4.31
4.97
3.85

(0.00)
0.05
0.14

Source of Funds
Deposits and Debentures

25,548.1
13,291.0

23,011.9
13,497.1

2,536.1(206.0)

4.03
3.62

4.03
3.71

0.00
(0.09)

Interest Margins

/

/

/

0.27

0.28

(0.00)

Loan and Deposit Margin

/

/

/

1.40

1.25

0.14

For the Fiscal Years ended March 31,

2008

Average balance
2007

Total
Use of Funds
Loans and Bills Discounted
Securities¥ 113,405.8
62,199.4
34,441.4¥ 111,025.1
62,127.3
34,285.6

Source of Funds
Deposits and Debentures

113,057.8
84,677.7

Interest Margins
Loan and Deposit Margin¥

ChangeBreakdown of Net Fee and Commission Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2008

2007

Change¥ 351.7¥ 400.8¥ (49.1)

Fee and Commission Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Guarantee Business
Safe Custody and Safety Deposit Box Business¥ 453.5
124.0
116.6
42.1
26.5
33.8
5.9

¥ 500.8
155.3
116.2
54.3
28.0
29.7
6.2

¥ (47.3)(31.3)
0.3(12.2)
(1.4)
4.0
(0.2)

Fee and Commission Expenses
Remittance Business¥ 101.8
36.2¥ 100.0
33.4¥

Net Fee and Commission Income

80

1.8
2.8

Breakdown of Net Other Operating Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Other Operating Income
Total
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

2008

2007

Change¥(15.8)¥ 151.3¥ (167.1)¥(15.8)(112.8)84.7¥ 151.3
139.1
25.5¥ (167.1)(252.0)
59.1

33.5
31.1

(14.5)
(6.7)

48.0
37.8

(49.3)(112.8)
53.5

165.8
139.1
32.2

(215.2)(252.0)21.3

Domestic Operations
Net Losses related to Bonds
International Operations
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

Breakdown of General and Administrative Expenses (excluding Non-Recurring Losses) (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2008

2007

¥ 229.2¥ 244.9

Non-personnel Expenses

581.6

561.4

Miscellaneous Taxes

49.2

49.3

¥ 860.1¥ 855.7

2008

2007

Change¥ 240.1
319.7(6.5)(92.6)(2.0)
21.6¥ (115.3)
217.3
(2.3)
(330.6)(0.0)
0.3¥ 355.5
102.4
(4.1)
238.0
(2.0)
21.3

Expenses related to Portfolio Problems(214.8)(111.1)(103.7)

Other(545.2)207.6(752.9)(18.8)¥ (501.0)

Personnel Expenses

Total

Change¥(15.6)
20.1
(0.0)

¥

4.4

Breakdown of Net Non-Recurring Gains (Losses) (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Gains (Losses) related to Stocks
Gains on Sales
Losses on Sales
Losses on Devaluation
Provision for Reserve for Possible Losses on Investments
Gains (Losses) on Derivatives other than for Trading

Net Non-Recurring Gains (Losses)¥ (519.9)¥(Reference) Breakdown of Credit-Related Costs (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Credit-related Costs
Credit Costs for Trust Accounts
Reversal of General Reserve for Possible Losses on Loans
Losses on Write-offs of Loans
Provision for (Reversal of) Specific Reserve for Possible Losses on Loans
Reversal of Reserve for Possible Losses on Loans to Restructuring Countries
Provision for (Reversal of) Reserve for Contingencies
Other (including Losses on Sales of Loans)

2008

¥

92.5
—
30.7
91.3
(100.5)
(2.6)
1.0
72.5

2007

¥

23.3
—
(121.8)
(8.5)
184.3
(0.3)
(28.2)(1.9)

Change

¥

69.2
—
152.6
99.9
(284.8)
(2.2)
29.3
74.5

81

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

3. Aggregated Assets, Liabilities and Net Assets
Assets and Liabilities (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31,

Total Assets
Cash and Due from Banks
Call Loans
Securities
Loans and Bills Discounted
Total Liabilities
Deposits
Debentures
Call Money
Bills Sold
Net Assets
Shareholders' Equity
Valuation and Translation Adjustments

2008

2007

Change¥ 145,912.9
4,973.1
4,950.6
34,320.9
65,666.7¥ 139,572.6
5,093.6
4,690.5
36,403.4
66,826.1¥ 6,340.3(120.5)260.0(2,082.4)(1,159.3)

141,103.9
87,159.8
3,171.0
10,982.3—

133,482.9
84,408.5
4,767.3
10,918.2—

7,621.0
2,751.3(1,596.3)
64.1—

4,809.0
4,262.0546.9

6,089.7
4,533.4
1,556.2(1,280.7)(271.3)(1,009.3)

Note: Loans to MHFG are included as follows:
As of March 31, 2008: ¥1,000.0 billion (from MHCB ¥500.0 billion; from MHBK ¥500.0 billion)
As of March 31, 2007: ¥1,380.0 billion (from MHCB ¥690.0 billion; from MHBK ¥690.0 billion)

Balance of Housing and Consumer Loans (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

Housing and Consumer Loans
Housing Loans for Owner's Residential Housing

2008

2007

¥ 12,121.7
9,778.7¥ 12,115.5
9,684.3

Change

¥

6.2
94.3

Loans to Small and Medium-Sized Enterprises (SMEs) and Individual Customers (the Three Banks)(Banking Accounts and Trust Accounts)
Billions of yen, %As of March 31,

Loans to SMEs and Individual Customers
Percentage of Loans to SMEs
and Individual Customers, of Total Domestic Loans

2008

2007

Change¥ 35,560.7¥ 37,850.1¥ (2,289.3))

60.1%

62.0%

(1.9)%

Notes: 1. Loans to MHFG are included as follows:
As of March 31, 2008: ¥1,000.0 billion (from MHCB ¥500.0 billion; from MHBK ¥500.0 billion)
As of March 31, 2007: ¥1,380.0 billion (from MHCB ¥690.0 billion; from MHBK ¥690.0 billion)
2. Above figures do not include loans booked at overseas offices and offshore loans.
3. The definition of SMEs is as follows:Enterprises of which the capital is ¥300 million or below (¥100 million or below for the wholesale industry, and ¥50 million or below for the retail and service industries), or enterprises withfull-time employees of 300 or below (100 or below for the wholesale industry, 50 or below for the retail industry, and 100 or below for the service industry.)82

Fair Value of Other Securities (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31, 2008

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 31,393.3
3,190.3
17,266.5
10,936.3¥ 31,995.2
4,085.9
17,167.8
10,741.3

Gross unrealized
Gains

¥

1,226.3
1,126.3
21.0
78.9

¥

Losses

624.4
230.7
119.7
274.0

Net unrealized*2
gains (losses)

¥

601.9
895.6
(98.6)(195.0)Billions of yen

As of March 31, 2007

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 27,767.8
3,355.4
15,343.7
9,068.7¥ 30,124.7
5,965.2
15,186.4
8,972.9

Gross unrealized
Gains

¥

2,717.1
2,656.6
3.9
56.5

¥

LossesNet unrealized*2
gains (losses)

360.2
46.8
161.2
152.2

¥ 2,356.8
2,609.8(157.2)(95.7)

LossesNet unrealized
gains (losses)

264.2
183.8
(41.4)
121.7¥ (1,754.9)(1,714.2)
58.5(99.3)

Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost¥

3,625.4(165.0)1,922.8
1,867.6

Gross unrealized
Gains

Fair value¥

1,870.4(1,879.3)
1,981.4
1,768.3¥ (1,490.7)(1,530.3)
17.1
22.4

¥

Notes: 1. In addition to the balances shown in the above table, Other Securities includes securities which do not have readily determinable fair values.
2. Net unrealized gains (losses) include ¥37.2 billion and ¥3.9 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2008 and 2007, respectively, byapplying the fair-value hedge method. As a result, the base amount to be recorded directly to Net Assets after tax adjustments as of March 31, 2008 and 2007 were ¥564.7 billion and¥2,352.9 billion, respectively.

(Reference)
Unrealized Gains (Losses) on Other Securities (the base amount to be recorded directly to Net Assets after tax adjustments)
For certain Other Securities (which have readily determinable fair values), unrealized gains (losses) were recognized in thestatement of income by applying the fair-value hedge method. They were excluded from unrealized gains (losses) on Other
Securities. These adjusted unrealized gains (losses) were the base amount, which was to be recorded directly to Net Assets after
tax adjustments.
The base amount was as follows:
Billions of yen

As of March 31,

Other Securities
Japanese Stocks
Japanese Bonds
Other

2008

¥

564.7
895.6
(125.2)(205.6)2007¥

2,352.9
2,609.8(163.9)(92.9)

Change¥(1,788.2)(1,714.2)
38.6(112.6)83

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

Segment Information by Global Group
Total of the Global Corporate Group
MHCB
Domestic International
For the Fiscal Year ended March 31, 2008

Gross Profits
Net Interest Income
Net Non-interest Income

¥

384.2
368.8
15.4

¥

606.4
293.6
312.8

¥

286.5
180.5
106.0

¥

141.4
73.4
68.0

MHSC

OthersTradingand others

¥

178.5
39.7
138.8

¥

36.1 ¥ (258.3)
(5.6)
80.8
41.7
(339.1)

General and Administrative Expenses

394.0

236.2

85.5

67.1

83.6

66.4

91.4

Others(48.3)

0.0

0.0

0.0

0.0

0.0

(48.3)(58.1) ¥370.2

Net Business Profits

¥

¥

201.0

¥

74.3

¥

94.9 ¥(30.3) ¥ (398.0)

Note: Credit-related costs for Trust Accounts are excluded from Gross Profits.

Total of the Global Corporate Group
MHCB
Domestic International
For the Fiscal Year ended March 31, 2007

Gross Profits
Net Interest Income
Net Non-interest Income

¥

785.3
407.7
377.6

¥

547.9
306.5
241.4

¥

310.6
202.4
108.2

¥

133.0
73.4
59.6

MHSC

Others105.7 ¥
(0.2)
105.9

131.7
101.4
30.3

Tradingand others

¥

104.3
30.7
73.6

¥

General and Administrative Expenses

377.0

241.0

88.3

61.5

91.2

61.1

74.9

Others(44.3)

0.0

0.0

0.0

0.0

0.0

(44.3)Net Business Profits

¥

364.0

¥

306.9

¥

222.3

¥

71.5

¥

13.1

¥

44.6

¥

12.5

Note: Credit-related costs for Trust Accounts are excluded from Gross Profits.

Notes: 1. Data on this page are calculated in accordance with the standards for disclosures described in FAS131 (Disclosuresabout Segments of an Enterprise and Related Information), same as the business segment information contained in
the registration statement on Form 20-F, which was filed with the U.S. Securities and Exchange Commission.
2. “Others” in each of the Global Groups includes elimination of transactions between companies within the respective
Global Groups. “Others” in MHFG includes elimination of transactions between the Global Groups.
3. Data on this page are based on the internal management figures and are the aggregates of the described segments inaccordance with the fiscal 2006 management accounting rules. As fractions on this page have been rounded to thenearest whole, some of the figures on this page are different from those on the other charts and so on.

84Billions of yen

Total of the Global Retail Group
MHBK

MHIS
Retailbanking¥ 1,039.8
654.4
385.4

¥

¥

942.8
606.9
335.9

¥

353.7
311.0
42.7

Corporatebanking

Tradingand others

¥

¥

503.4
328.9
174.5

85.7 ¥(33.0)
118.7

53.0
0.7
52.3

Others¥Total of the Global Asset & Wealth Management GroupMHTB
Others44.0 ¥
46.8
(2.8)

231.1
55.4
175.7

¥

172.7
53.5
119.2

¥

OthersConsolidated
Figures of
MHFG

58.4 ¥
1.9
56.5

5.8 ¥ 1,660.9(15.0)
1,063.6
20.8
597.3

580.8

537.2

214.8

229.3

93.1

45.2

(1.6)

127.6

86.8

40.8

(9.1)

1,093.3(14.7)

0.0

0.0

0.0

0.0

0.0

(14.7)

(1.5)

0.0

(1.5)

8.1

(56.4)

274.1 ¥

(7.4) ¥

7.8

16.1 ¥

23.0 ¥

511.2

444.3

¥

405.6

¥

138.9

¥

¥

30.9

¥

102.0

¥

85.9

¥

Billions of yen

Total of the Global Retail Group
MHBK

MHIS
Retailbanking¥ 1,105.4
640.6
464.8

¥

¥

978.5
593.8
384.7

¥

316.0
262.6
53.4

Corporatebanking

Tradingand others

¥

¥

559.9
326.6
233.3

102.6
4.6
98.0

¥

62.2
1.2
61.0

Others

¥

64.7
45.6
19.1

Consolidated
Figures of
MHFG

Total of the Global Asset & Wealth Management GroupMHTB
OthersOthers¥49.7 ¥
1.6
48.1

3.1 ¥ 2,117.4(11.8)
1,090.3
14.9
1,027.1

223.6
53.8
169.8

¥

173.9
52.2
121.7

¥

588.5

527.0

199.3

245.2

82.5

43.4

18.1

126.2

87.8

38.4

(15.8)(11.5)

0.0

0.0

0.0

0.0

0.0

(11.5)

(1.2)

0.0

(1.2)

7.1

(49.9)

10.1 ¥

26.0 ¥

991.6

505.4

¥

451.5

¥

116.7

¥

314.7

¥

20.1

¥

18.8

¥

35.1

¥

96.2

¥

86.1

¥

1,075.985

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

The Impact of the Dislocation in Global Financial Markets Stemming from U.S. Subprime
Loan Issues
The following is an excerpt from information (managerial accounting basis) that we disclosed in presentation materials used in our
IR presentation regarding our financial results for the fiscal year ended March 31, 2008 that we held on May 21, 2008 regarding
the detailed status of our holdings of securitization products, etc., following the recommendations in “Report of the Financial
Stability Forum (“FSF”) on Enhancing Market and Institutional Resilience” announced on April 11, 2008. The presentation materials can be found under “IR Presentations” on our website.

 Summary
Income Statement Impact of the Dislocation in the Global Financial Markets
Billions of yen, round figures

Fiscal 2007 ended Mar. 31, 2008

Total Realized Losses(A)+(B)¥

3 Banks (incl. Overseas Subsidiaries)(1) Losses on Sales of Securitization Products, etc.

(645)
(47)

(2) Provision of Reserve for Possible Losses on Investments on Securitization Products(46)(3) Credit-Related Costs Associated with SIVs

(21)(4) Losses Associated with ABCP programs(95)(5) Provision of Reserve for Possible Losses on Sales of Loans(51)(6) Profits from Hedging by CDS (related to Securitization Products)
Subtotal

29
(A)

(232)

Mizuho Securities (incl. Overseas Subsidiaries)*1(7) Trading Losses on Securitization Products, Net of Hedges(349)(8) Losses Associated with US Financial Guarantors (Monolines)
Subtotal

(64)
(B)

¥

(413)

Supplemental Information (Mar. 31, 2008)<3 Banks (incl. overseas subsidiaries)>(1) Total balance of foreign currency denominated securitization products: approx. ¥889 billion·········································· P87(2) Reserve for Possible Losses on Investments on securitization products: ¥46 billion··························································· P87(3) Investments and loans associated with SIVs
• Balance became nil after write-offs (FY2007 Credit Cost: approx. ¥21 billion)• There was no SIVs established and provided liquidity support and other assistance by Mizuho(4) Overseas ABCP program related ·····································································································································P87• The total assets acquired by our overseas ABCP conduits were approx. ¥257 billion (preliminary figure)• A loss of ¥95 billion was incurred at Mizuho Corporate Bank by acquiring an underlying CDO*2 as a substitution
payment of loans provided to the ABCP conduit(5) Balance of loans held for sale (overseas LBO finances and others)*3 ················································································ P88• Approx. ¥806 billion (Reserve for Possible Losses on Sales of Loans: ¥51 billion, reserve ratio 6.3%)(6) Hedging activities related to foreign currency denominated securitization products ·······················································P87<Mizuho Securities (incl. overseas subsidiaries)>*1(7) Total balance of foreign currency denominated securitization products: approx. ¥105 billion·········································· P89(8) CDS related to securitization products (including those with US financial guarantors (monolines)) ·································· P90<Other relevant information> (3 Banks + securities companies incl. overseas subsidiaries)(i) Warehousing loan business*4 related to US subprime mortgage loans• Nil(ii) Loans to mortgage lenders in US (working capital, etc.)• Approx. ¥68 billion (all of the lenders concerned had investment grade ratings, of which approx. 70% had ratingsof “A” or higher)(iii) Securitization products and loans guaranteed by US monolines ···················································································· P88*1. The balance of securitization products and the related gains/losses of Mizuho Investors Securities were negligible*2. The proportion of US subprime mortgage loan related assets to total underlying assets of this CDO was up to approximately 30%*3. Included commitments which had not yet been drawn but the documentations had been concluded*4. Loans provided to other financial institutions, which structure securitization products, until such products are sold86 Banking Subsidiaries
Foreign Currency Denominated Securitization Products
3 Banks (incl. Overseas Subsidiaries) = Banking AccountBillions of yen, round figures

Foreign Currency Denominated
Securitization Products
ABSCDO, CDO

Balances
as of
Dec.07(Fair Value)

Changes in 4Q
Forex
Sales,
rates
etc.

¥ 1,087¥ (86) ¥ (112)Balances Marks (%)
Unrealized
Realized
as of
as of Gains/Losses Gains/Losses
Mar.08 as of Mar.08 for FY07*1
Mar.08*1(Fair Value) (=Fair Value/
Face Value)

¥

889

78%

¥

(69)

¥

(Reference)
Hedgedproportions*2(208) approx.40%

131

(11)

6

126

51

(7)

(127) approx.10%

CDOs backed by RMBS

—

—

36

*3

36

28

0

(100)

—

CDOs except above

131

(11)

(30)

*4

90

77

(7)

(27)

approx.20%

CDOs backed by Claims against Corporations 131

(11)

(30)

90

77

(7)

(27)

approx.20%

CDOs backed by CMBS

—

—

—

—

—

—

—

—

350

(18)

(13)

319

86

(22)

(33) approx.50%

RMBS

*5

RMBS with Underlying Assets in US
RMBS except above(RMBS with Underlying Assets mainlyin UK and Europe)
ABS, CLOs and others

—

*5

—

*5

—

*5

—

*5

—

*5

—

*5

(1)

—
approx.50%

350

(18)

(13)

319

86

(22)

(32)

606

(58)

(105)

444

85

(41)

(48) approx.40%

CLOs

292

(34)

(63)

195

86

(32)

(7)

approx.40%

ABS

216

(18)

(28)

169

93

(4)

(14)

approx.20%

CMBS

95

(5)

(11)

79

89

(4)

(6)

approx.50%

SIV-Related

3

(0)

(3)

—

—

—

(21)

—

*1. Except for the securitization products which were the reference assets of our securitization schemes for transferring credit risks to third parties (hedged portion), approx. ¥46 billion of Reserve for
Possible Losses on Investments was newly provided as of Mar. 31, 2008 against unrealized losses on securitization products related with the discontinuation of business regarding credit investments
primarily in Europe, which had been made as an alternative to loans (the provisioned losses were included in the above Realized Gains/Losses for FY2007)
Since securities were recognized at fair value on the consolidated balance sheet, the above balances as of Mar. 31, 2008 were offset against Reserve for Possible Losses on Investments.
*2. The proportions of balances (fair value) of the securitization products, as of Mar. 31, 2008, which were the reference assets of our securitization schemes (with CDS and other means) for transferring
credit risks to third parties until maturity.
In some of the securitization schemes, a portion of credit risk of the reference assets remained with Mizuho Group through our retaining a small first loss position and a portion of senior tranches.
(Reference) CDS* counterparties:
Banking subsidiary (AA rating) of a multi-line insurance company: approx. ¥213 billion
Government-affiliated financial institution (AA rating): approx. ¥100 billion* Notional amount basis. Ratings were based on the lowest external ratings as of Mar. 31, 2008.
*3. Mizuho Corporate Bank acquired a CDO as a substitution payment of loans provided to its sponsoring overseas ABCP conduit in FY2007. The information on this CDO was disclosed in our 3Q FY2007
financial results in which it was referred to as a CDO of approx. ¥150 billion included as an underlying asset in the ABCP program. The proportion of US subprime mortgage loan related assets to total
underlying assets of this CDO was up to approx. 30%. The entire balance (fair value) consisted of Super Senior tranche.
*4. The entire balance consisted of securitization products backed by original assets (non-securitized assets).
*5. Excludes US agency bonds (Ginnie Mae, etc.). <Reference> Balance of US agency bonds as of Mar. 31, 2008: approx. ¥1.2 trillion, Unrealized gains: approx. ¥10 billion (Ginnie Mae)

Note: See P91 for details of breakdown by credit rating and geographic distribution and P92 for details of yen denominated securitization products.

Overseas ABCP program related (Mar. 2008)<Assets Acquired by Overseas ABCP Conduits (all in US)>
Balance as of Mar. 2008: approx. ¥257 billion
Breakdown of Acquired Assets*1
18%

43%

Credit card receivables*2
Account receivables
Auto lease (rent-a-car) receivables*2
Loans against auto dealers
Others*2 (Note)

11%

14%
14%

*1. Mizuho Corporate Bank acquired a CDO as a substitution payment of loans provided toits sponsoring overseas ABCP conduit in FY2007.
The information on this CDO was disclosed in our 3Q FY2007 financial results in which
it was referred to as a CDO of approx. ¥150 billion (*) included as an underlying asset in
the ABCP program but is not included in the above chart.
(*) The proportion of US subprime mortgage loan related assets to total underlying
assets of this CDO was up to approx. 30%.
*2. Includes approx. ¥170 billion of securitization products backed by these assets (of whichapprox. ¥30 billion was guaranteed by US monolines as described below).
In Apr. 2008, credit card receivable backed securitization products of approx. ¥57 billion
were redeemed in full at maturity (of which approx. ¥7 billion was guaranteed by a US
monoline as described on P88).
(Note) No US subprime related assets were included.

87

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

Securitization Products and Loans Guaranteed by US Monolines (Mar. 2008)<Securitization Products Guaranteed by US Monolines>
Approx. ¥30 billion of securitization products backed by auto lease receivables, credit card receivables and others, included in theacquired assets of the above-mentioned overseas ABCP conduits sponsored by Mizuho Corporate Bank (of which approx. ¥7 billion was redeemed at maturity in Apr. 2008).
Although a part of monolines, which provided the above guarantees, were rated non-investment grade (based on external ratings), there were no particular concerns about the conditions of the underlying assets as of Mar. 31, 2008.
<Loans Guaranteed by US Monolines>
Approx. ¥16 billion of Mizuho Corporate Bank's loan commitments to overseas infrastructure projects (of which approx. ¥4 billion
was drawn down). No US subprime mortgage loan related exposures were included.
Although a part of monolines, which provided the above guarantees, were rated non-investment grade (based on external ratings), there were no particular concerns about the credit conditions of the projects as of Mar. 31, 2008.

Loans Held for Sale

Balance of Loans Held for Sale including Overseas LBO Transactions
Balance of Loans Held for Sale including Overseas LBO Transactions
Billions of yen

Loans held for sale

Sep. 07
Dec. 07
Forex Rate Impact

¥

862

¥

988
approx. (100)

New Underwrite
Sales, etc.

Reserve for Possible
Losses on Sales of Loans

Reserve ratio

23

2.7%

28
—

2.8%
—

approx. 70——

approx. (150)

—

—

*

50

6.3%

Mar. 08806*incl. approx. ¥90 billion commitments(Additional explanation)• Reserve for Possible Losses on Sales of Loans was provided based on the priorityof the following valuation methods: (1) market prices, (2) market prices ofsimilar transactions, (3) prices calculated by proprietary model reflecting factors
relative to each loacl market conditions.
• Top 5 transactions accounted for approx. 70%• Reserve ratio for just LBO/MBO transactions was 7.5%

By Geographic Distribution (Mar. 2008)
14%

3%

3%

80%

Americas
Asia<(Reference) Leveraged Loans> (Held for Sale + own loan portfolio)
Balance as of Mar. 2008: approx. ¥1.4 trillion(of which held for sale: approx. ¥0.6 trillion)

EuropeJapan

By Geographic Distribution (Mar. 2008)
5%
10%

14%

(Additional explanation)• Incl. commitments which had not been drawn but the documentations had
been concluded

71%

AmericasAsia

88EuropeJapan Securities Subsidiaries
Foreign Currency Denominated Securitization Products
Mizuho Securities (incl. Overseas Subsidiaries) = Trading AccountBillions of yen, round figures

Balances
as of
Dec.07(Fair Value)

Foreign Currency Denominated
Securitization Products¥ (57)¥ (124)

276

(102)

(34)

(90)

163

(93)

(20)

(26)

*2

(5)

*3

11

*4

26

83

(15)

16

92

(12)

*3

CDOs except above
CDOs backed by Claims against Corporations*3

CDOs backed by CMBS
RMBS
RMBS backed by US Subprime Mortgage Loans
RMBS except above(RMBS backed by Mid-Prime Loans, Prime
Loans and others)
RMBS backed by Mid-Prime Loans (Alt-A)
ABS, CLOs and others

*5

30

*3

(10)

*3

(4)

*3

114

(9)

(14)

(65)

98

(6)

(12)

(64)

81

*3

(4)

*3

(10)

*3

(67)

¥ 105

Realized
Gains/Losses
for FY07¥ (184)

CDOs backed by RMBS

Hedged by CDS with a Non-Investment
Grade Financial Guarantor

Sales,
etc.*1

Balances
Marks (%)
as of
as of
Mar.08Mar.08(Fair Value) (=Fair Value/
Face Value)¥ 470

ABSCDO, CDO
Hedged by CDS with a Non-Investment
Grade Financial Guarantor

Changes in 4Q
RealizedForexlosses
rates

*3

22%

¥ (404)

50

18

(235)

24

10

(220)

0

*3

*3

17

—

*3

*3

(54)

(10)

4

(3)

(0)

(1)

0

8

(4)

176

(79)

(22)

(22)

53

27

(164)

30

(8)

(4)

(3)

15

31

(35)

146

*5

(72)

*5

(18)

*5

(18)

*5

38

*5

26
*5

53

(34)

19

(129)

26

18

(3)

(2)

(11)

2

67

(5)

CLOs

8

(2)

(1)

(3)

2

73

(2)

CMBS

9

(2)

(1)

(6)

0

43

(3)

*1. Incl. impact of forex rate changes on realized gains/losses in 1Q to 3Q (Apr. 2007 - Dec. 2007)*2. The proportion of US subprime mortgage loan related assets to total underlying assets was approx. 20%.
Approx. 70% of the balance (fair value) consisted of Super Senior tranche.
*3. CDO exposures hedged by CDS with a non-investment grade* US financial guarantor (monoline), net of allowances.
* based on external ratings as of Dec. 31, 2007 or Mar. 31, 2008.
*4. The entire balance consisted of securitization products backed by original assets (non-securitized assets).
*5. Excludes US agency bonds (Ginnie Mae, etc.). <Reference> Balance of US agency bonds as of Mar. 31, 2008 was negligible.

Note: See P91 for details of breakdown by credit rating and geographic distribution and P92 for details of yen denominated securitization products.

89

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

CDS related to Securitization Products
By Credit Ratings of Counterparties*1 and Reference Assets
Billions of yen, round figures

Notional
Amount(A)

Fair valueof reference
asset
(B)

¥ 366
83

¥ 302
74

As of Mar. 2008

Totalof which Counterparties are US Monolines
AAA

Allowance
against
NPV
(D)

¥

¥

43
9

0
0

168

142

26

0

RMBS CDOs

—

—

—

—

Other CDOs (backed by Claims against Corporations)

168

142

26

0

83

74

9

0
0

of which Counterparties are US MonolinesAA
RMBS CDOs

192

159

13

*2 60

*2 40

*2 0

0

132

119

13

0

Other CDOs (backed by Claims against Corporations)A-BBB
RMBS CDOs
Other CDOs (backed by Claims against Corporations)
Non-Investment Grade or no Ratings
RMBS CDOs
Other CDOs (backed by Claims against Corporations)

3

0

3

0

3

0

3

0

—

—

—

—

*3 2

*3 1

*3 2

*3 0

2

1

2

0

—

—

—

—

<CDS Transactions with Monolines, etc. (Concept Chart)>

Notional
amount ofCDS(A)

Decline in value of thereference assets*1. Categorized by the lowest grade (external credit ratings as of Mar. 2008) in case of crossovercredit. When the counterparty was guaranteed by third parties, categorized by the higher
grade of either of them. In case of SPVs which do not have issuer ratings, categorized by theparties to which final risk resided.
*2. The balance of difference between the notional amount and fair value of reference asset(approx. ¥20 billion) have been received in cash from CDS protection seller, thus the NPV forthat portion became nil. (=no counterparty risk).
*3. CDS protection purchased from a non-investment grade US financial guarantor (monoline) was
deemed ineffective and the fair value of the reference assets (securitization products) weredirectly reflected on B/S and P/L, respectively. As a result, the relevant CDS was not
represented on this table.  The balances and gains/losses of such reference assets are shownin the lines titled “Hedged by CDS with a non-investment grade financial gurantor” in theabove table of Securities Subsidiaqries “Foreign Currency denominated Securitization
Products”.

90

Amount to beclaimed at thesettlement (NPV)(C)

Amount to beclaimed at thesettlement(NPV) (C)Cashreceived
Fair value ofthe reference
asset
(B)

(Provide allowance
if necessary)(D)
Please refer tofootnote *2 on left Other Supplemental Information
Foreign Currency Denominated Securitization Products by Credit Rating and Geographic Distribution
Foreign Currency Denominated Securitization Products by Credit Rating and Geographic Distribution(Banking Subsidiaries)
Billions of yen, round figures

RMBS CDO

Balance as of Mar. 08 (Fair Value)¥

36

Other CDO¥

90

Banking Subsidiaries (incl. overseas subsidiaries)
RMBS
CLO
ABS
CMBS

¥

319

¥

195

¥

169

¥

Total

79

¥

889

By Credit Rating
AAA

0%

35%

10%

94%

11%

32%

AA

0%

30%

38%

0%

8%

40%

22%

A

0%

28%

38%

0%

38%

28%

26%
14%

BBB

33%

0%

7%

13%

0%

43%

0%

BB or Lower, no Ratings

100%

0%

0%

6%

0%

0%

5%

Total

100%

100%

100%

100%

100%

100%

100%

U.S.

100%

36%

0%

90%

42%

0%

36%

Europe

0%

61%

91%

10%

58%

100%

61%

Asia

0%

2%

9%

0%

0%

0%

3%

100%

100%

100%

By Geography

Total

100%

100%

*1

100%

*1: By country
UK
50%
Netherlands 19%
Spain
16%
Others15%

100%*1: Vintage
2004
8%2005 38%
2006 33%
2007 19%*2*2: Major underlying assets
Credit card receivables
Lease / Auto loan receivables
Others57%
34%
9%Foreign Currency denominated Securitization Products by Credit Rating and Geographic Distribution(Securities Subsidiaries)
Billions of yen, round figures

RMBS CDO

Balance as of Mar. 08 (Fair Value)¥

24

Securities Subsidiaries (incl. overseas subsidiaries)
Other CDO
US subOther
CLO
prime RMBS
RMBS

¥

26

¥

15

¥

38

¥

2

Total

¥

105

By Credit Rating
AAA

2%

32%

0%

61%

0%

30%

AA

9%

21%

0%

31%

39%

19%

A

2%

0%

0%

2%

0%

1%

BBB

50%

46%

70%

0%

0%

33%

BB or Lower, no Ratings

37%

0%

30%

6%

61%

16%

Total

100%

100%

100%

100%

100%

100%

U.S.

100%

61%

100%

100%

100%

90%

Europe

0%

0%

0%

0%

0%

0%

Asia

0%

38%

0%

0%

0%

9%

Total

100%

100%

100%

100%

100%

100%

By Geography

Vintage2005
3%2006 20%
2007 74%

Note: The above proportions are calculated before reduction of Reserve for Possible Losses on Investments.

91

Financial Analysis

Results for the Fiscal Year ended March 31, 2008

Yen Denominated Securitization Products
Yen Denominated Securitization Products (Banking Subsidiaries)
Billions of yen, round figures

Banking Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 08
Unrealized Gains/Losses(Fair Value)
as of Mar. 08

Yen Denominated Securitization Products

¥

3,150

ABSCDO, CDO

¥

*1

(6)

115

(5)

CDOs backed by RMBS——

CDOs except above

115

(5)

106

(5)

8

(0)

CDOs backed by Claims against Corporations
CDOs backed by CMBSRMBS*2

1,344

4ABS, CLOs and others

1,691

(6)

CMBS

1,015

(6)

ABS

590

0

CLOs

86

(0)

*1. Realized losses for banking subsidiaries in FY2007 was ¥1 billion*2. Represented RMBS originated by Japanese financial institutions and others (Japan Housing Finance Agency Bonds were excluded)<Reference> Balance of Japan Housing Finance Agency Bonds as of Mar. 2008 was ¥250 billion with unrealized gains of ¥1 billion.

(Reference)
Billions of yen, round figures

Banking Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 08
Unrealized Gains/Losses(Fair Value)
as of Mar. 08

Foreign Currency Denominated Securitization Products
Total Securitization Products (Yen and Foreign Currency Denominated)

92

¥

889
4,039

¥

(69)
(75)

Yen Denominated Securitization Products (Securities Subsidiaries)
Billions of yen, round figures

Securities Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 08
Realized Gains/Losses(Fair Value)
for Fiscal Year 07

Yen Denominated Securitization Products¥

246

ABSCDO, CDO

¥

(9)

52

(11)

CDOs backed by RMBS——

CDOs except above

52

(11)

*1

CDOs backed by Claims against Corporations
CDOs backed by CMBS

*1

52
—

(11)
—

RMBS*221

1ABS, CLOs and others

174

1

CMBS

12

(0)

ABS

162

1

CLOs

—

—

*1. Incl. a large transaction of which credit rating was downgraded*2. Represented RMBS originated by Japanese financial institutions and others (Japan Housing Finance Agency Bonds were excluded)<Reference> Balance of Japan Housing Finance Agency Bonds as of Mar. 2008 was ¥250 billion with unrealized gains of ¥1 billion.

(Reference)
Billions of yen, round figures

Securities Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 08
Realized Gains/Losses(Fair Value)
for Fiscal Year 07

Foreign Currency Denominated Securitization Products
Total Securitization Products (Yen and Foreign Currency Denominated)

¥

105
351

¥

(404)
(413)

93

Financial Analysis

Status of Asset Quality

 Disposal of Non-performing Loans (NPLs) in the Fiscal Year ended March 31, 2008
Consolidated Credit-related Costs resulted in ¥83.0 billion and Credit-related Costs in the aggregated figures of MHCB, MHBK
and MHTB (the Three Banks) resulted in ¥92.5 billion, as Mizuho Bank, in addition to losses on sales of loans and other factors,
conducted a review of obligors, especially those with lower credit ratings, amid uncertainty over the future of the economy.

 Outstanding Balance of NPLs
Status of Disclosed Claims
The Three Banks' aggregated figures of Disclosed Claims under the Financial Reconstruction Law (FRL) decreased by ¥43.4 billion
from the end of the previous fiscal year to ¥1,203.2 billion. The classifications of those loans are shown in the table on page 98.
Of the total, Claims with Collection Risk or worse claims decreased by ¥207.9 billion to ¥512.8 billion. At the same time,
Claims for Special Attention increased by ¥164.4 billion to ¥690.4 billion.
NPL Ratio
The aggregated NPL ratio for the Three Banks as of the end of March 2008 decreased by 0.03 percentage points to 1.61% dueto the decrease of Claims with Collection Risk or worse claims.
 Activities in Removal of NPLs from the Balance SheetWith respect to collection and disposal of impaired loans, our specialist unit maintains central control and pursues corporate revitalization or collection efforts, as appropriate, toward taking the non-performing loans off-balance.
In particular, we consider support for corporate revitalization to be an important mission for a financial institution. We aredoing our utmost to provide such support including verification of business plans of corporations tackling revitalization, provisionof advice pertaining to reconstruction measures and utilization of corporate rehabilitation schemes including transfer of businessand M&A. These efforts have achieved steady results.
In addition, we strive to realize efficient and expeditious final disposals of NPLs through bulk sales and activities of Mizuho
Servicing Co., Ltd., a servicer of the group.

Results of Removal of NPLs from the Balance Sheet
The Three Banks removed ¥837.0 billion in NPLs in fiscal 2007, increasing by ¥543.5 billion from the previous fiscal year. As aresult, the removal ratio for NPLs amount categorized before fiscal 2006 has exceeded approximately 95% as of the end of Marchin 2008, so removal from the balance sheet is almost complete.
The group will steadily proceed with removal of NPLs from the perspective of improvement of asset quality.

94 Credit-Related Costs
Credit-Related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

Credit-related Costs
Expenses related to Portfolio Problems (including Provisionfor (Reversal of) General Reserve for Possible Losses on Loans)

2008

¥

Losses on Write-offs of Loans
Reversal of Reserves for Possible Losses on Loans, etc.
Credit Costs for Trust Accounts

83.0

2007

¥

40.1

Change

¥

42.8

201.7

142.6

59.0

128.0
(118.6)—67.1(102.4)—60.9(16.2)
—

2008

2007

Credit-Related Costs (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Credit-related Costs
Credit Costs for Trust Accounts
Reversal of General Reserve for Possible Losses on Loans
Losses on Write-offs of Loans
Provision for (Reversal of) Specific Reserve for Possible Losses on Loans
Reversal of Reserve for Possible Losses on Loans to Restructuring Countries
Provision for (Reversal of) Reserve for Contingencies
Other (including Losses on Sales of Loans)

¥

92.5
—
30.7
91.3
(100.5)
(2.6)
1.0
72.5

¥

23.3
—
(121.8)
(8.5)
184.3
(0.3)
(28.2)(1.9)

Change

¥

69.2
—
152.6
99.9
(284.8)
(2.2)
29.3
74.5

95

Financial Analysis

Status of Asset Quality

 Overview of NPLs as of March 31, 2008 (the Three Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Category IV
Category III (Non-Collateralized)

Categorization

NonCategorization Category II

Bankrupt and Substantially
Bankrupt Obligors
137.2

Collateral, Guarantees, etc.:
118.0
Reserves for Possible Losses:
19.2

Reserve
Ratio
100%

326.1

46.2

Collateral, Guarantees, etc.:
218.5
Reserves for Possible Losses:
107.5

Reserve
Ratio
69.9%

Obligor

137.2

Watch Obligors

Intensive Control
Obligors
372.3

Claims for Special
Attention
690.4

Reserve Ratio against
Uncovered Portion
31.6%
Collateral, Guarantees, etc.:
127.9
Reserves for Possible Losses:
178.2

DirectWrite-offs

2. Disclosed Claims
under the FRL

3. Non-Accrual, Past
Due & Restructured
Loans

Claims against Bankrupt
and Substantially Bankrupt
Obligors
137.2

Loans to Bankrupt Obligors
24.9

Coverage Ratio 100%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors·Coverage Ratio: 47.2%·Reserve Ratiofor Uncovered Portion: 31.5%·Reserve Ratio
against Entire Claim: 24.3%

Claims with Collection Risk
372.3

Non-Accrual
Delinquent Loans
419.3

Coverage Ratio 87.5%
65.4 (Note 2)

Claims for Special
Attention (Note 1)
690.4
Coverage Ratio 44.3%

Loans Past Due forThree Months or More
8.4
Restructured Loans
681.8

Special Attention Obligors
Other Watch Obligors
Normal Obligors

Total
74,320.5

Reserve Ratio
against Total Claims·Other Watch Obligors: 5.35%·Normal Obligors: 0.11%

Total Coverage
Ratio 64.1%

Total
1,200.1

Total
1,134.7

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 Disclosed Claims under the FRL represents the amount of claims other than loans included in Disclosed Claims under
the FRL.

96 Status of Disclosed Claims under the FRL
Disclosed Claims under the FRL (Consolidated)(Consolidated)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2008

¥

154.2
379.3
703.7

2007

¥

Change

139.0
596.3
528.6

¥

15.2
(216.9)175.1¥ 1,237.4¥ 1,263.9¥(26.5)

2008

2007

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

¥

502.0

¥

536.3

Change¥(34.2))(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

2008

2007

Change

¥

0.0
3.1
—

¥

—
7.7
0.1

¥

0.0
(4.5)
(0.1)

¥

3.1

¥

7.8

¥

(4.6)

(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

2008

¥

154.3
382.5
703.7

¥ 1,240.5

2007¥

Change

139.0
604.0
528.7

¥

15.2
(221.5)175.0¥ 1,271.8¥(31.2)

97

Financial Analysis

Status of Asset Quality

Disclosed Claims under the FRL (the Three Banks) (Banking Accounts 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

2008

¥

137.3
375.5
690.4

2007

¥

122.2
598.4
526.0

Change¥15.0(222.9)164.4

Subtotal

1,203.2

1,246.7(43.4)

Normal Claims

73,157.1

74,313.0(1,155.8)¥ 74,360.4¥ 75,559.7

Total

¥

(1,199.3)

Notes:1. Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
2. Reserve for Indemnification of Impairment and Reserve for Possible Losses on Entrusted Loans of ¥0.6 billion and ¥1.3 billion as of March 31, 2008 and 2007, respectively, are not included in theabove figures for Trust Accounts.
Billions of yen

2008

Amount of Partial Direct Write-offs

¥

475.1

2007

¥

502.8

Change¥(27.7))

Ratio of Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)%

As of March 31,

2008

2007

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

0.18%
0.50
0.92

0.16%
0.79
0.69

0.02%
(0.28)
0.23

Subtotal

1.61

1.65

(0.03)

Normal Claims

98.38

98.34

0.03

100.00%100.00%/Total
Note: Above figures are presented net of partial direct write-offs.

Disclosed Claims under the FRL and Coverage Amount (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Claims with Collection Risk
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Claims for Special Attention
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Total
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Note: Above figures are presented net of partial direct write-offs.

98

2008

2007

Change

¥

137.2
118.0
19.2
372.3
218.5
107.5
690.4
127.9
178.2

¥

122.2
102.2
20.0
590.7
185.8
281.9
525.9
184.2
111.4

¥

15.0
15.7
(0.7)
(218.3)32.6(174.4)164.5(56.2)
66.7¥

1,200.1
464.5
305.0

¥

1,238.9
472.3
413.4

¥

(38.8)(7.7)(108.3)

Coverage on Disclosed Claims under the FRL (the Three Banks) (Banking Accounts)
Billions of yen, %As of March 31,

Coverage AmountReserves for Possible Losses on Loans
Collateral, Guarantees, and equivalent

2008

¥

769.6
305.0
464.5

¥

2007

Change

885.8
413.4
472.3

¥ (116.1)(108.3)(7.7)

Coverage Ratio
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)

64.1%
100.0
87.5
44.3
47.2

71.4%
100.0
79.1
56.2
57.8

(7.3)%—
8.3(11.8)(10.6)

Reserve Ratio against Non-collateralized Claims
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)

100.0%
69.9
31.6
31.5

100.0%
69.6
32.6
32.2

—%
0.2)
(0.9)
(0.6)

(Reference) Reserve Ratio
Claims against Special Attention Obligors
Claims against Watch Obligors excluding Claims against Special Attention Obligors
Claims against Normal Obligors

24.38%
5.35
0.11

20.05%
7.39
0.11

4.32 %(2.04)(0.00)

Note: Above figures are presented net of partial direct write-offs.

99

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,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2008

¥

27.7
434.3
8.4
695.1

2007

¥

Change

30.8
633.1
10.4
517.9

¥

(3.0)
(198.7)
(1.9)
177.1

¥ 1,165.7¥ 1,192.3¥(26.6)

2008

2007

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

¥

478.3

¥

518.3

Change¥(40.0)

Ratio to Total Loans%

As of March 31,

2008

2007

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.04%
0.66
0.01
1.05

0.04%
0.95
0.01
0.78

(0.00)%(0.29)(0.00)
0.27

1.77%

1.80%

(0.03)%

2008

2007

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

¥

684.4
510.9
173.4
0.0

¥

856.3
500.8
352.3
3.1

Change¥(171.8)10.0(178.8)(3.0)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2008

Amount of Partial Direct Write-offs

¥

515.8

2007

¥

536.9

Change¥(21.1)

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2008

2007

ChangeAfter Partial Direct Write-offs

58.71%

71.81%(13.09)%Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

100

(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2008

2007

Change

¥

—
3.1
—
—

¥

—
7.7
0.1
—

¥

—
(4.5)
(0.1)
—

¥

3.1

¥

7.8

¥ (4.6)

Ratio to Total Loans%

As of March 31,

2008

2007

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

.—%
7.90
.—.
.—.

.—%
14.58
0.22
.—

.—%
(6.67)(0.22).—

7.90%

14.80%(6.90)%

2008

2007

Change

30.8
640.8
10.5
517.9

¥ (3.0)(203.3)
(2.0)
177.1

¥ 1,168.8¥ 1,200.2¥ (31.3)

As of March 31,

2008

2007

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.04%
0.66
0.01
1.05

0.04%
0.97
0.01
0.78

(0.00)%(0.30)(0.00)
0.27

1.78%

1.81%

(0.03)%

Non-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

¥

27.7
437.4
8.4
695.1

¥

Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans%

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

101

Financial Analysis

Status of Asset Quality

 Status of Non-Accrual, Past Due & Restructured Loans (the Three Banks)(Banking Accounts and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2008

¥

24.9
422.5
8.4
681.8

2007

¥

Change

27.5
627.2
10.5
515.2

¥

(2.6)
(204.7)
(2.0)
166.5

¥ 1,137.8¥ 1,180.7¥(42.8)

2008

2007

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

¥

452.1

¥

485.6

Change¥(33.5)

Ratio to Total Loans%

As of March 31,

2008

2007

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.03%
0.64
0.01
1.03

0.04%
0.93
0.01
0.77

(0.00)%(0.29)(0.00)
0.26

1.73%

1.76%

(0.03)%

2008

2007

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

¥

589.0
472.1
116.7
0.0

¥

741.1
446.3
291.6
3.1

Change¥(152.0)25.8(174.8)(3.0)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2008

Amount of Partial Direct Write-offs

¥

488.3

2007

¥

503.1

Change¥(14.7)

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2008

2007

ChangeAfter Partial Direct Write-offs

51.91%

63.18%(11.27)%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

102 Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)

Billions of yen, %As of March 31,

2008
Outstanding
Balance Composition

2007
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 55,463.8
7,095.8
33.0
0.8
1.8
101.2
1,330.6
674.1
658.0
2,677.6
5,592.0
4,972.5
6,441.7
7,080.4417.4
5,390.1
12,995.9

100.00%
12.79
0.06
0.00
0.00
0.18
2.40
1.22
1.19
4.83
10.08
8.97
11.61
12.77
0.75
9.72
23.43

¥ 57,078.7
7,073.2
37.1
1.0
2.4
138.9
1,366.8735.2
720.7
2,724.7
5,850.3
4,950.3
6,645.8
7,712.3
374.8
5,724.9
13,019.5

100.00%
12.39
0.07
0.00
0.01
0.24
2.40
1.29
1.26
4.77
10.25
8.67
11.64
13.51
0.66
10.03
22.81

¥ (1,614.9)
22.5
(4.0)
(0.1)
(0.5)
(37.7)(36.1)(61.0)(62.6)(47.1)(258.3)22.2(204.0)(631.8)42.5(334.8)(23.5)/
0.40)%(0.01)
0.00(0.01)(0.06)
0.00(0.07)(0.07)
0.06(0.17)
0.30(0.03)(0.74)
0.09(0.31)
0.62

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

10,144.8
343.6
1,934.3
7,866.8

100.00
3.39
19.07
77.54

8,885.5
298.9
1,587.4
6,999.1

100.00
3.36
17.87
78.77

1,259.3
44.6
346.9
867.7

/
0.03
1.20
(1.23)¥ 65,608.7/¥ 65,964.3/(355.5)

/

Total

¥

Note: 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.

Outstanding Balances by Industry (the Three Banks) (Banking Accounts and Trust Accounts)

Billions of yen, %As of March 31,

2008
Outstanding
Balance Composition

2007
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 59,111.4
7,098.4
33.0
0.8
1.8
101.2
1,331.2
674.1
1,938.7
2,678.2
5,592.3
6,619.9
6,508.0
7,101.8433.9
5,340.1
13,657.1¥ 60,963.0
7,081.1
37.1
1.0
2.4
138.9
1,366.8735.2
2,079.9
2,728.8
5,853.2
6,754.3
6,711.8
7,723.9393.4
5,704.9
13,649.5¥ (1,851.6)
17.2
(4.0)
(0.1)
(0.5)
(37.7)(35.6)(61.0)(141.1)(50.5)(260.8)(134.4)(203.7)(622.0)40.4(364.8)
7.5

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

8,946.1
342.7
2,253.8
6,349.4

100.00
3.83
25.19
70.98

8,158.5
295.7
1,846.0
6,016.6

100.00
3.62
22.63
73.75

787.6
46.9
407.8
332.8

/
0.21
2.56
(2.77)¥ 68,057.5/¥ 69,121.5/¥ (1,064.0)

/

Total

100.00%
12.01
0.06
0.00
0.00
0.17
2.25
1.14
3.28
4.53
9.46
11.20
11.01
12.02
0.74
9.03
23.10

Note: Loans to Finance & Insurance sector include loans to MHFG as follows:
As of March 31, 2008: ¥1,000.0 billion (from MHCB ¥500.0 billion; from MHBK ¥500.0 billion)
As of March 31, 2007: ¥1,380.0 billion (from MHCB ¥690.0 billion; from MHBK ¥690.0 billion)

100.00%
11.62
0.06
0.00
0.00
0.23
2.24
1.21
3.41
4.48
9.60
11.08
11.01
12.67
0.64
9.36
22.39

/
0.39)%
0.00
0.00
0.00
(0.06)
0.01(0.07)(0.13)
0.05(0.14)
0.12
0.00(0.65)
0.10(0.33)
0.71

103

Financial Analysis

Status of Asset Quality

Disclosed Claims under the FRL by Industry and Coverage Ratio (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen, %As of March 31,

2008
Disclosed Claims
under the FRL Coverage Ratio

2007
Disclosed Claims
under the FRL Coverage Ratio

ChangeDisclosed Claims
under the FRL Coverage Ratio

Domestic Total(excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 1,163.9
120.6
0.3
—
0.1
0.1
54.2
0.0
10.8
117.1
218.8
177.5
100.6
189.5
30.6
—
143.1

¥ 1,203.0
86.4
0.0
0.0
0.1
0.0
54.5
0.0
6.4
181.4
192.7
278.0
114.1
124.0
31.4
—
133.1

¥

Overseas Total(including Loans Booked Offshore)
Governments
Financial Institutions
Other

39.2
0.0
0.0
39.1

Total

¥ 1,203.2

63.5%
65.7
61.7
—
104.4
60.8
66.1
100.0
64.0
47.2
55.2
38.6
86.3
64.0
100.0
—
93.0
84.5
67.6
99.9
84.5
64.1%

43.7
4.6
7.3
31.7
¥ 1,246.7

71.9%
72.1
100.0
68.4
19.4
17.2
57.6
100.0
66.6
73.1
56.5
70.4
85.8
63.5
100.0
—
90.9
64.5
17.2
94.2
64.5
71.4%

¥

(39.0)
34.2
0.2
(0.0)
0.0
0.0
(0.3)
(0.0)
4.4
(64.3)
26.1(100.5)(13.5)
65.5
(0.8)
—
9.9

(8.3)%(6.4)(38.2)(68.4)
84.9
43.6
8.5
—
(2.6)
(25.9)(1.3)(31.7)
0.5
0.4
—
—
2.0

(4.4)
(4.5)
(7.2)
7.3

20.0
50.4
5.7
19.9

(43.4)(7.3)%

Non-Accrual, Past Due & Restructured Loans by Industry (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

2008

2007

Domestic Total(excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 1,100.4
115.5
0.3
—
0.1
0.0
53.2
0.0
9.1
113.7
211.8
177.5
100.0
186.2
3.0
—
129.4

¥ 1,140.2
80.2
0.0
0.0
0.1
0.0
52.6
0.0
5.9
180.3
188.2
272.4
113.8
121.3
3.9
—
120.8

Overseas Total(including Loans Booked Offshore)
Governments
Financial Institutions
Other

37.4
0.0
—
37.3

40.4
4.6
6.4
29.3

¥ 1,137.8¥ 1,180.7

Total

104

Change¥(39.8)
35.3
0.2
(0.0)
0.0
—
0.5
(0.0)
3.1
(66.5)
23.6(94.9)(13.8)
64.9
(0.9)
—
8.6
(2.9)
(4.5)
(6.4)
8.0

¥

(42.8)

 Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2008

As of March 31, 2007

Billions of yen, %Uruguay
Tanzania
Others (2 Countries)

¥

0.6
0.1
0.0

Indonesia
Others (3 Countries)¥ 28.90.1

Total
Ratio to Total Assets

¥ 0.8
0.00%

Total
Ratio to Total Assets¥ 29.1
0.01%

Billions of yen, %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.

Balance of Loans to Restructuring Countries (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen, Number of countries

As of March 31,

2008

Loan Amount
Number of Restructuring Countries

¥

0.8
4

¥

2007

Change45.6
4¥ (44.8)—

Notes: 1. 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.
2. Number of Restructuring Countries refers to obligors' countries of residence.

Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Nationality of Borrowers (the Three Banks)(Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

2008
Non-Accrual,
Outstanding
Past Due &Restructured Loans
Balance

Outstanding
Balance

Non-Accrual,
Past Due &Restructured Loans

Asia
Hong Kong
Korea
Singapore
China¥ 2,066.9
433.9
341.1
335.5
24.3

5.9
0.2
—
—
1.4

¥ 2,482.7
401.5
441.9
297.9
420.4

¥ 18.0
0.8
—
1.1
7.6

¥ (415.8)
32.4(100.8)37.6(396.1)¥

2007

ChangeNon-Accrual,
Outstanding
Past Due &Balance
Restructured Loans¥(12.0)
(0.5)
—
(1.1)
(6.1)

Central and South America

2,292.5

0.1

2,164.2

0.2

128.3

(0.1)

North America

2,353.6

4.1

2,123.6

5.7

229.9

(1.6)

Eastern Europe

88.6

—

42.0

—

46.5

—

Western Europe

3,262.9

23.6

2,480.8

5.8

782.1

17.8

Other

1,045.0

3.9

858.4

4.0

Total

¥ 11,109.7¥ 37.8¥ 10,152.0¥ 33.9

186.5
¥

957.7

(0.0)
¥

3.9

Note: The decrease in china is due to the affect of the establishment of Mizuho Corporate Bank (China), Ltd in June 2007 and other.

105

Financial Analysis

Status of Asset Quality

 Results of Removal of NPLs from the Balance Sheet
Outstanding Balances of Claims against Bankrupt and Substantially Bankrupt Obligors and Claims with Collection Risk
(under the FRL) (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Up to Fiscal As of September As of March As of September As of March As of September As of March
2004
30, 2005
31, 2006
30, 2006
31, 2007 30, 2007 (a) 31, 2008 (b)Amount Categorized as below
up to Fiscal 2004
of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2005

¥ 9,546.1 ¥ 715.2 ¥ 253.6¥ 204.6¥ 142.7¥ 121.5

114.9

57.8

67.0

38.6

31.4

20.5

(10.9)

2,322.6
7,223.4

133.9
581.3

98.8
154.8

80.5
124.0

50.5
92.2

46.0
75.4

30.3
54.0

(15.6)(21.4)

148.9

81.6

50.6

28.1

20.4

15.5

(4.9)

23.0

12.1

7.0

5.4

5.1

3.6

(1.5)

27.5
121.4

15.8
65.8

7.8
42.7

5.9
22.2

5.6
14.7

4.1
11.4

(1.5)
(3.3)

150.8

82.4

56.4

43.0

24.9

(18.0)

14.4

8.5

5.4

3.7

2.6

(1.0)

16.2
134.5

9.7
72.7

8.3
48.1

4.9
38.0

3.6
21.2

(1.2)
(16.8)

122.8

88.0

64.9

50.2

(14.7)

12.2

10.2

6.0

5.2

(0.8)

16.6
106.1

38.3
49.6

34.0
30.9

33.1
17.0

(0.8)
(13.9)

405.3

77.8

48.8

(28.9)

17.9

12.4

8.8

(3.5)

19.1
386.1

12.4
65.3

8.8
39.9

(3.5)
(25.4)

432.2

91.9

(340.3)

26.4

17.7

(8.6)

57.9
374.3

22.2
69.6

(35.6)(304.6)

196.9

196.9

31.2

31.2

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2005of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2006of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2006of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2007of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2007of which the amount in the processof being removed from the balance sheet/ ¥ 864.2 ¥ 486.1

34.7
34.7
162.1
162.1
¥ 512.8 ¥ (247.2)¥ 460.5¥ 720.7¥ 760.0of which the amount in the processof being removed from the balance sheet

/

138.0

84.4

94.9

77.7

85.4

89.9

4.5

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

/
/

161.4
702.7

130.8
355.2

114.8
345.7

122.2
598.4

161.0
598.9

137.3
375.5

(23.7)(223.4)

Note: Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

106¥ 84.4 ¥ (37.1)

997.6

of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Total

Change(b)-(a)Progress in Removal from the Balance Sheet (Accumulated Removal Amount and Removal Ratio)(the Three Banks) (Banking Accounts and Trust Accounts)
AmountNewly
Categolized

Up to Fiscal 2004
First Half of Fiscal 2005
Second Half of Fiscal 2005
First Half of Fiscal 2006
Second Half of Fiscal 2006
First Half of Fiscal 2007
Second Half of Fiscal 2007
Total

Balance
as of March 31,
2008

Billions of yen%

Accumulated
RemovalAmountAccumulated
Removal Ratio

ModifiedAccumulated
Removal Ratio

99.1%
89.5
83.4
59.1
87.9
78.7
/

99.3%
91.9
85.2
63.4
90.1
82.8
/

/

/

¥ 9,546.1
148.9
150.8
122.8
405.3
432.2
196.9

¥

84.4
15.5
24.9
50.2
48.8
91.9
196.9

¥

9,461.7
133.3
125.8
72.6
356.4
340.3
/

¥11,003.2

¥

512.8

¥ 10,490.4

Notes: 1. Modified accumulated removal ratios are based on the accumulated removal amount including the amount which was in the process of being removed from the balance sheet.
2. Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

Breakdown of Reasons for Removal from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Newly Categorized as Claims against Bankrupt and Substantially Bankrupt Obligors or Claims with Collection Risk Amount Removed
Up toFirst Half of Second Half ofFirst Half of Second Half ofFirst Half of from BS in the Second
Fiscal 2004
Fiscal 2005
Fiscal 2005
Fiscal 2006
Fiscal 2006
Fiscal 2007 Half of Fiscal 2007

Liquidation¥(27.7)

¥

(0.0)

¥

(1.2)

¥

(4.9)

¥

(1.7)

¥

(0.1)

¥

(35.8)

Restructuring

(0.2)

(0.0)

(0.2)

(1.8)

(0.2)

—

(2.6)

Improvement in Business Performancedue to Restructuring
Loan Sales—(15.1)

—
(2.1)

—
(3.7)

—
(4.2)

(0.0)
(5.1)

(0.0)
(30.5)(0.0)(60.9)

Direct Write-off

48.4

3.0

4.8

8.7

(0.4)

(36.9)

27.8

Other
Debt Recovery
Improvement in Business Performance(42.4)(26.5)(15.9)

(5.8)
(4.2)
(1.6)

(17.6)(11.4)(6.2)(12.4)(2.5)(9.9)(21.4)(16.8)(4.6)(272.6)(77.3)(195.3)(372.5)(138.8)(233.6)(28.9)¥ (340.3)

Total

¥

(37.1)

¥

(4.9)

¥

(18.0)¥(14.7)¥¥(444.1)(Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Up to First
Half of Fiscal 2005

Breakdown of Amount Removed
In Second Half
In First Half In Second Half
In First Halfof Fiscal 2005 of Fiscal 2006 of Fiscal 2006 of Fiscal 2007¥(40.7)

¥

(6.3)

¥

(6.9)

¥

Accumulated Removed
Amount from BS
In Second Halffrom Second Halfof Fiscal 2007of Fiscal 2000

Liquidation¥ (1,328.7)(30.0)¥ (35.8)¥ (1,448.5)

Restructuring(1,612.6)(55.8)(104.7)(55.5)(11.0)(2.6)(1,842.5)

Improvement in Business Performancedue to Restructuring
Loan Sales(176.3)(4,075.7)(3.1)(47.6)(0.0)(34.4)(1.0)(38.0)(1.0)(26.2)(0.0)(60.9)(181.7)(4,282.9)

Direct Write-off

2,891.8

45.8

155.4

81.0

46.5

27.8

3,248.4

Other
Debt Recovery
Improvement in Business Performance(4,529.2)//(427.3)(217.0)(210.2)(158.2)(113.8)(44.3)(124.5)(67.7)(56.8)(371.0)(67.9)(303.0)(372.5)(138.8)(233.6)(5,982.9)//¥ (8,830.8)¥ (528.9)¥ (148.4)¥ (145.1)¥ (392.9)¥ (444.1)¥ (10,490.4)

Total

Notes: 1. Up to First Half of Fiscal 2005 denotes the term from the Second Half of Fiscal 2000 to the First Half of Fiscal 2005.
2. Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

107

Financial Analysis

Status of Asset Quality

Write-Offs of Loans (the Three Banks) (Banking Accounts)
Billions of yen

For the Fiscal Years ended March 31,

Write-offs of Loans
Note: The above figures are included in Other Expenses on the statement of income.

108

2008

¥

126.7

2007

¥

64.3

Change¥62.3

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]
Report of Independent Auditors

110

Consolidated Financial Statements

111

Notes to Consolidated Financial Statements

120

109

Financial Data of Mizuho Financial Group, Inc.

Report of Independent Auditors

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated balance sheets of Mizuho Financial Group, Inc. and consolidated subsidiaries(the “Company”) as of March 31, 2007 and 2008, and the related consolidated statements of income, changes in net assets, andcash flows for the years then ended, all expressed in yen. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial positionof Mizuho Financial Group, Inc. and consolidated subsidiaries at March 31, 2007 and 2008, and the consolidated results of theiroperations and their cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2008
are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 1.

Ernst & Young ShinNihon LLC
June 26, 2008110

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheets
Millions of yen
2008

As of March 31,

AssetsCash and Due from Banks (Notes 12, 31 and 38)
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased (Note 38)
Trading Assets (Notes 4, 12 and 38)
Money Held in Trust (Note 38)
Securities (Notes 5, 12, 22 and 38)
Loans and Bills Discounted (Notes 6 and 12)
Foreign Exchange Assets (Note 7)
Other Assets (Notes 8 and 12)
Tangible Fixed Assets (Notes 9, 12 and 23)
Intangible Fixed Assets
Deferred Debenture Charges (Note 10)
Deferred Tax Assets (Note 33)
Customers' Liabilities for Acceptances and Guarantees (Note 22)
Reserves for Possible Losses on Loans (Note 11)
Reserve for Possible Losses on Investments
Total Assets¥

3,483,802
248,728
7,233,199
9,069,138
3,388,461
13,856,237
32,82733,958,537
65,608,705
803,141
10,984,529
802,692
284,825—
607,920
4,733,852(684,465)
(30)

¥

2007

3,993,362
302,3369,430,397
8,624,211
3,351,499
10,414,573
49,55836,049,983
65,964,301
894,797
5,739,458
796,746
255,695
22
389,024
4,480,551(856,314)(174)

Thousands of
U.S. dollars (Note 1)
2008$

34,768,487
2,482,317
72,187,624
90,510,361
33,816,986
138,285,801
327,617338,907,562
654,777,501
8,015,387
109,626,046
8,010,907
2,842,574—
6,067,067
47,244,042(6,830,994)(304)¥ 154,412,105¥ 149,880,031$ 1,541,038,981

Liabilities and Net Assets
Liabilities
Deposits (Notes 12 and 13)¥ 86,264,041
Debentures (Note 14)
3,159,443
Call Money and Bills Sold (Notes 12 and 15)
6,693,712
Payables under Repurchase Agreements (Note 12)
11,511,019
Guarantee Deposits Received under Securities Lending Transactions (Note 12)
6,927,740
Commercial Paper (Note 16)
30,000
Trading Liabilities (Note 4)
8,313,072
Borrowed Money (Notes 12 and 17)
4,818,895
Foreign Exchange Liabilities (Note 7)
222,652
Short-term Bonds (Note 18)
787,784
Bonds and Notes (Note 19)
4,052,189
Due to Trust Accounts
1,119,946
Other Liabilities (Notes 12 and 20)
9,795,054
Reserve for Bonus Payments
43,375Reserve for Employee Retirement Benefits (Note 21)
36,019Reserve for Director and Corporate Auditor Retirement Benefits
7,057
Reserve for Possible Losses on Future Sales of Loans
50,895Reserve for Contingencies
14,095Reserve for Frequent Users Services
8,349
Reserve for Reimbursement of Deposits
9,614
Reserves under Special Laws
2,680
Deferred Tax Liabilities (Note 33)
11,354
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 23)
105,096
Acceptances and Guarantees (Note 22)
4,733,852¥ 83,608,304
4,723,806
6,924,136
12,821,752
5,946,781
30,0008,297,301
4,563,438
339,817849,870
3,237,525
1,135,358
5,770,656
40,97237,641
6,484—
13,046——2,680
218,224
107,272
4,480,551$¥ 143,155,622$ 1,484,211,038

Total Liabilities¥ 148,717,945

860,918,578
31,531,371
66,803,516
114,880,437
69,139,128
299,401
82,964,800
48,092,767
2,222,081
7,862,120
40,441,012
11,177,113
97,755,034
432,888359,478
70,438507,941
140,676
83,32595,95726,754
113,314
1,048,867
47,244,042

111

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheets
Millions of yen
2008

As of March 31,

Net Assets
Common Stock and Preferred Stock (Note 24)
Capital Surplus
Retained Earnings
Treasury Stock (Note 24)¥

Total Shareholders' Equity

1,540,965
411,1101,440,310(32,330)$

15,378,892
4,102,731
14,731,830(25,029)3,360,055

34,188,424

401,375
5,985
147,467(78,394)
476,434

1,550,628(111,042)
150,616(38,964)
1,551,237

4,005,741
59,737
1,471,733(782,377)
4,754,834

1,792,045

1,813,115

17,884,685

5,694,159

6,724,408

56,827,943¥ 154,412,105¥ 149,880,031$ 1,541,038,981

Minority Interests
Total Net Assets
See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

112¥

3,425,680

Net Unrealized Gains on Other Securities, net of Taxes (Note 38)
Net Deferred Hedge Gains (Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes (Note 23)
Foreign Currency Translation Adjustments
Total Valuation and Translation Adjustments

Total Liabilities and Net Assets

1,540,965
411,093
1,476,129(2,507)

2007

Thousands of
U.S. dollars (Note 1)
2008

Consolidated Statements of Income
Millions of yen
2008

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 25)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 26)
Other Operating Income (Note 27)
Other Income (Note 29)¥

Total Income
Expenses
Interest Expenses (Note 25)
Fee and Commission Expenses
Trading Expenses (Note 26)
Other Operating Expenses (Note 28)
General and Administrative Expenses
Other Expenses (Note 30)
Total Expenses
Income before Income Taxes and Minority Interests
Income Taxes:
Current
Deferred
Minority Interests in Net Income
Net Income¥

2,864,796
64,355596,759
249,076
294,356
579,737¥2007

2,562,642
66,958658,899
265,802
270,945522,816

Thousands of
U.S. dollars (Note 1)
2008$

28,590,784
642,266
5,955,688
2,485,795
2,937,692
5,785,799

4,649,081

4,348,066

46,398,024

1,801,156
102,233
192,927
312,094
1,124,527
630,079

1,472,378
107,775
4,258
123,438
1,091,602
573,714

17,975,618
1,020,294
1,925,421
3,114,717
11,222,834
6,288,218

4,163,019

3,373,167

41,547,102

486,062

974,898

4,850,922

32,212
118,546
24,07943,267
223,699
86,965

321,479
1,183,095
240,315

311,224¥

620,965$

3,106,033

Per Share of Common StockYen
As of March 31,

Net Income:
Basic
DilutedCash Dividends

2008

¥

25,370.25
24,640.00
10,000.00

2007¥

51,474.49
48,803.07
7,000.00

U.S. dollars (Note 1)
2008$

253.20245.9199.80

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

113

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Shareholders' Equity
Common Stockand Preferred Stock

CapitalSurplusRetained
Earnings

TreasuryStock

Total Shareholders'Equity¥ 1,540,965¥ 411,160¥ 1,498,143¥ (46,814)¥ 3,403,455

Changes during the Fiscal Year
Cash Dividends*1——(79,849)—(79,849)

Board Members' Bonuses*1

—

—

(36)

—

(36)

Net Income——

620,965—

620,965

Repurchase of Treasury Stock

—

—

—

(604,331)(604,331)

Disposition of Treasury Stock

—

32

—

50

83

Cancellation of Treasury Stock
Transfer from Revaluation
Reserve for Land, net of Taxes
Decrease in Stock Issued by MHFG
Held by Equity-Method Affiliates
Net Changes in Items other thanShareholders' Equity

—

(83)

(618,680)

618,763———

19,768—19,768

—

—

—

0

0

—

—

—

—

—

Total Changes during the Fiscal Year

—

(50)

(57,832)

14,483(43,399)¥ 1,540,965¥ 411,110¥ 1,440,310¥ (32,330)¥ 3,360,055

For the Fiscal Year ended March 31, 2007

Balance as of March 31, 2006

Balance as of March 31, 2007

*1 Appropriation of Retained Earnings approved at the ordinary general meeting of shareholders in June 2006
See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

114

Millions of yen

Net Unrealized Gains
on Other Securities,
net of Taxes

Valuation and Translation Adjustments
Net Deferred
Revaluation
Foreign Currency
Hedge Losses,
Reserve for Land,
Translation
net of Taxes
net of Taxes
Adjustments

Total Valuation
and Translation
Adjustments¥

Minority Interests

Total Net Assets—¥ 170,384¥ (48,062)¥ 1,401,538¥ 1,359,122¥ 6,164,116

—

—

—

—

—

—

(79,849)

—

—

—

—

—

—

(36)

—

—

—

—

—

—

620,965

—

—

—

—

—

—

(604,331)

—

—

—

—

—

—

83

—

—

—

—

—

—

—

—

—

—

—

—

—

19,768

—

—

—

—

—

—

0

¥ 1,279,216

271,411(111,042)(19,768)

9,098

149,698

453,992

603,691

271,411(111,042)(19,768)

9,098

149,698

453,992

560,292¥ 1,550,628¥ (111,042)¥ 150,616¥ (38,964)¥ 1,551,237¥ 1,813,115¥ 6,724,408

115

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Shareholders' Equity

For the Fiscal Year ended March 31, 2008

Balance as of March 31, 2007

Common Stockand Preferred Stock¥ 1,540,965¥

CapitalSurplusRetained
Earnings

411,110¥ 1,440,310¥

TreasuryStock

Total Shareholders'Equity(32,330)¥ 3,360,055

Effect of Unification of Accounting
Policies Applied to Foreign Subsidiaries

—

—

2,867

—

2,867

Changes during the Fiscal Year
Cash Dividends——(101,229)—(101,229)

Net Income——

311,224—

311,224

Repurchase of Treasury Stock

—

—

—

(150,464)(150,464)

Disposition of Treasury Stock

—

—

(1)

100

98

Cancellation of Treasury Stock
Transfer from Revaluation
Reserve for Land, net of Taxes
Effect of Exclusion of an Affiliate
from the Scope of the Equity Method
Effect of Decrease in the Equity
Position of an Affiliate
Increase in Stock Issued by MHFG
Held by Equity-Method Affiliates
Net Changes in Items other thanShareholders' Equity——(180,189)

180,189

—

—

—

3,148

—

3,148

—

(16)

—

—

(16)

—

(0)

—

—

(0)

—

—

—

(3)

(3)

—

—

—

—

—

Total Changes during the Fiscal Year

—

(16)

32,951

29,82262,757411,093¥ 1,476,129(2,507)¥ 3,425,680

Balance as of March 31, 2008

¥ 1,540,965¥¥

Shareholders' Equity
Common Stockand Preferred Stock

CapitalSurplusRetained
Earnings

TreasuryStock

Total Shareholders'Equity$ 15,378,892$ 4,102,900$ 14,374,354$ (322,658)$ 33,533,488

Effect of Unification of Accounting
Policies Applied to Foreign Subsidiaries——

28,615—28,615

Changes during the Fiscal Year
Cash Dividends——(1,010,276)—(1,010,276)

Net Income——

3,106,033—

3,106,033

Repurchase of Treasury Stock

—

—

—

(1,501,639)(1,501,639)

Disposition of Treasury Stock

—

—

(15)

1,000

985

Cancellation of Treasury Stock
Transfer from Revaluation
Reserve for Land, net of Taxes
Effect of Exclusion of an Affiliate
from the Scope of the Equity Method
Effect of Decrease in the Equity
Position of an Affiliate
Increase in Stock Issued by MHFG
Held by Equity-Method Affiliates
Net Changes in Items other thanShareholders' Equity——(1,798,303)

1,798,303———

31,422—

31,422

—

(160)

—

—

(160)

—

(9)

—

—

(9)

—

—

—

(35)

(35)

—

—

—

—

—

Total Changes during the Fiscal Year

—

(169)

328,861

297,629626,321$ 15,378,892$ 4,102,731$ 14,731,830(25,029)$ 34,188,424

For the Fiscal Year ended March 31, 2008

Balance as of March 31, 2007

Balance as of March 31, 2008

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

116$Millions of yen

Net Unrealized Gains
on Other Securities,
net of Taxes¥ 1,550,628¥

Valuation and Translation Adjustments
Net Deferred Hedge
Revaluation
Foreign Currency
Gains (Losses),
Reserve for Land,
Translation
net of Taxes
net of Taxes
Adjustments¥(111,042)¥

Total Valuation
and Translation
Adjustments

Minority Interests

Total Net Assets

150,616¥ (38,964)¥ 1,551,237¥ 1,813,115¥ 6,724,408

—

—

—

—

—

—

2,867

—

—

—

—

—

—

(101,229)

—

—

—

—

—

—

311,224

—

—

—

—

—

—

(150,464)

—

—

—

—

—

—

98

—

—

—

—

—

—

—

—

—

—

—

—

—

3,148

—

—

—

—

—

—

(16)

—

—

—

—

—

—

(0)

—

—

—

—

—

—

(3)

(1,149,253)

117,028(3,148)(39,429)(1,074,803)(21,070)(1,095,873)(1,149,253)

117,028(3,148)(39,429)(1,074,803)(21,070)(1,033,116)

147,467¥ (78,394)

476,434¥ 1,792,045¥ 5,694,159

401,375

¥

5,985

¥

¥

Thousands of U.S. dollars (Note 1)

Net Unrealized Gains
on Other Securities,
net of Taxes

Valuation and Translation Adjustments
Net Deferred Hedge
Revaluation
Foreign Currency
Gains (Losses),
Reserve for Land,
Translation
net of Taxes
net of Taxes
Adjustments

Total Valuation
and Translation
Adjustments

Minority Interests

Total Net Assets$ 15,475,335$ (1,108,213)$ 1,503,155$ (388,865)$ 15,481,412$ 18,094,969$ 67,109,869

—

—

—

—

—

—

28,615

—

—

—

—

—

—

(1,010,276)

—

—

—

—

—

—

3,106,033

—

—

—

—

—

—

(1,501,639)

—

—

—

—

—

—

985

—

—

—

—

—

—

—

—

—

—

—

—

—

31,422

—

—

—

—

—

—

(160)

—

—

—

—

—

—

(9)

—

—

—

—

—

—

(35)

(11,469,594)

1,167,950(31,422)(393,512)(10,726,578)(210,284)(10,936,862)(11,469,594)

1,167,950(31,422)(393,512)(10,726,578)(210,284)(10,310,541)

59,737$ 1,471,733$ (782,377)$ 4,754,834$ 17,884,685$ 56,827,943$ 4,005,741$

117

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Cash Flows
Millions of yen
For the Fiscal Years ended March 31,

2008

I. Cash Flow from Operating Activities
Income before Income Taxes and Minority Interests¥
486,062
Depreciation
132,721
Losses on Impairment of Fixed Assets
2,698
Amortization of Goodwill
27,688Equity in Income from Investments in Affiliates(9,083)
Increase (Decrease) in Reserves for Possible Losses on Loans(163,096)
Increase (Decrease) in Reserve for Possible Losses on Investments(144)
Increase (Decrease) in Reserve for Possible Losses on Future Sales of Loans
50,895
Increase (Decrease) in Reserve for Contingencies
1,048
Increase (Decrease) in Reserve for Bonus Payments
5,152
Increase (Decrease) in Reserve for Employee Retirement Benefits(655)
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits
565
Increase (Decrease) in Reserve for Frequent Users Services (Note 31)
4,575
Increase (Decrease) in Reserve for Reimbursement of Deposits
9,614Interest Income—accrual basis(2,864,796)
Interest Expenses—accrual basis
1,801,156
Losses (Gains) on Securities(180,014)
Losses (Gains) on Money Held in Trust(238)
Foreign Exchange Losses (Gains)—net
998,555
Losses (Gains) on Disposition of Fixed Assets(1,700)Losses (Gains) on Cancellation of Employee Retirement Benefit Trust—
Net Decrease (Increase) in Trading Assets(3,723,814)
Net Increase (Decrease) in Trading Liabilities
299,439
Net Decrease (Increase) in Loans and Bills Discounted(590,397)
Net Increase (Decrease) in Deposits
3,828,635
Net Increase (Decrease) in Debentures(1,563,995)
Net Increase (Decrease) in Borrowed Money (excluding Subordinated
225,338
Borrowed Money)
Net Decrease (Increase) in Due from Banks (excluding Due from Central Banks)
Net Decrease (Increase) in Call Loans, etc.
Net Decrease (Increase) in Guarantee Deposits Paid under Securities
Borrowing Transactions
Net Increase (Decrease) in Call Money, etc.
Net Increase (Decrease) in Commercial Paper
Net Increase (Decrease) in Guarantee Deposits Received under Securities
Lending Transactions
Net Decrease (Increase) in Foreign Exchange Assets
Net Increase (Decrease) in Foreign Exchange Liabilities
Net Increase (Decrease) in Short-term Bonds (Liabilities)
Net Increase (Decrease) in Bonds and Notes
Net Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Board Members' Bonuses
Other—net (Note 31)
Subtotal
Cash Paid in Income Taxes
Net Cash Provided by (Used in) Operating Activities

118

2007

¥

974,898
132,2284,281
758(9,324)34,099(1,034)—(32,520)
4,385(1,076)6,484——(2,562,642)
1,472,378
84,020(41)(180,289)
428(125,961)(255,216)
246,107(153,790)
721,639(1,884,284)

Thousands of
U.S. dollars (Note 1)
2008$

4,850,922
1,324,563
26,930276,328(90,651)(1,627,710)(1,440)507,941
10,46751,418(6,538)5,644
45,66895,957(28,590,784)
17,975,618(1,796,549)(2,379)9,965,623(16,969)—(37,163,816)
2,988,421(5,892,193)
38,209,937(15,608,734)

1,841,174

2,248,889(523,301)
845,166

751,656(3,267,835)(5,222,567)
8,434,799(444,926)

19,358(4,440,387)

266,469—(446,971)(20,000)

2,659,379—

980,959(1,354,758)

9,790,012

51,635(99,831)(54,086)
825,207(15,412)2,922,168(1,803,557)—(1,603,353)(75,975)(50,229)(535,229)
753,664(219,530)
2,482,364(1,387,389)(70)(19,684)

515,326(996,319)(539,783)
8,235,600(153,814)
29,163,354(17,999,572)—(16,001,532)

123,352
47,362(3,053,924)(51,009)

1,231,059
472,677

170,714(3,104,934)

1,703,736

Consolidated Statements of Cash Flows
2008

2007

Thousands of
U.S. dollars (Note 1)
2008

II. Cash Flow from Investing Activities
Payments for Purchase of Securities(83,933,854)
Proceeds from Sale of Securities
66,532,713
Proceeds from Redemption of Securities
16,585,885
Payments for Increase in Money Held in Trust(23,000)
Proceeds from Decrease in Money Held in Trust
39,869Payments for Purchase of Tangible Fixed Assets(84,804)
Payments for Purchase of Intangible Fixed Assets(128,392)
Proceeds from Sale of Tangible Fixed Assets
18,450
Proceeds from Sale of Intangible Fixed Assets
10,216
Payments for Purchase of Stocks of Subsidiaries (affecting the scope of consolidation) (136,627)
Proceeds from Sales of Stocks of Subsidiaries (affecting the scope of consolidation)
838(59,052,804)
35,176,618
27,231,259(56,289)
56,401(77,699)(104,524)
48,000
1,050
(800)
—

(837,663,215)
663,999,138
165,527,801(229,541)
397,898(846,355)(1,281,360)
184,132
101,965(1,363,544)
8,368

Millions of yen

Net Cash Provided by (Used in) Investing Activities(1,118,704)

3,221,212(11,164,713)

III. Cash Flow from Financing Activities
Proceeds from Issuance of Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Investments by Minority Shareholders
Repayments to Minority Shareholders
Cash Dividends Paid
Cash Dividends Paid to Minority Shareholders
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock

129,859(83,000)
239,704(142,589)
288,196(185,500)(101,115)(80,277)(150,464)
98

64,600(112,000)
309,334(350,000)
415,734—(79,793)(60,908)(604,331)
83

1,296,003(828,343)
2,392,255(1,423,053)
2,876,217(1,851,297)(1,009,133)(801,169)(1,501,639)
984

Net Cash Provided by (Used in) Financing Activities(85,087)(417,280)(849,175)

(160)

2,103

(1,597)

V. Net Increase (Decrease) in Cash and Cash Equivalents(1,033,237)(298,898)(10,311,749)

VI. Cash and Cash Equivalents at the Beginning of the Fiscal Year3,089,030

3,387,929

30,828,648

—

(0)

—

IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents

VII. Net Decrease in Cash and Cash Equivalents for Exclusionfrom Scope of Consolidation
VIII. Cash and Cash Equivalents at the End of the Fiscal Year (Note 31)¥

2,055,793¥

3,089,030$

20,516,899

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

119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 Japanand the Financial Instruments and Exchange Law (formerly, the Securities 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 the consolidated 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 ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation. The inclusion of suchamounts is not intended to imply that Japanese yen has been or could be readily converted, realized or settled into U.S. dollars atthat rate or any other rate.

2. Principles of Consolidation(1) Scope of Consolidation
The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, the“Group”), including Mizuho Corporate Bank, Ltd. (“MHCB”), Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd.
(“MHTB”), Mizuho Securities Co., Ltd. (“MHSC”) and certain other subsidiaries. The number of consolidated subsidiaries as ofMarch 31, 2008 and 2007 was 146 and 133, respectively. In the fiscal year ended March 31, 2008, Mizuho Corporate Bank
(China), Ltd. and 22 other companies were newly consolidated upon their establishment and so on. UC Card Co., Ltd. and 9other companies were excluded from the scope of consolidation as a result of partial disposal of their shares, and other factors.
The number of affiliates under the equity method as of March 31, 2008 and 2007 was 21 and 19, respectively. Investments
in affiliates include The Chiba Kogyo Bank, Ltd., Shinko Securities Co., Ltd., and certain other affiliates.
In the fiscal year ended March 31, 2008, UC Card and Co., Ltd. and 4 other companies were newly included in the scope ofthe equity method. In the fiscal year ended March 31, 2008, Japan Mortgage Co., Ltd. and 2 other companies were excluded
from the scope of the equity method as a result of the disposal of its shares, and other factors.
Non-consolidated subsidiaries, including Asian-American Merchant Bank Limited and certain other affiliates, are notaccounted for under the equity method, as they are not significant to the consolidated financial statements of MHFG.
In consolidation, all significant intercompany accounts and transactions have been eliminated. In addition, all significant
unrealized profits included in assets resulting from transactions within the Group have been eliminated.
The accounting standards applicable to the consolidated financial statements require a company to consolidate all subsidiaries of which the company controls the operations, irrespective of whether or not the company owns a majority of theirshares. Control is considered to exist where the company has (a) the power to appoint or remove the majority of the Board of
Directors or an equivalent governing body, and/or (b) the power to cast the majority of the votes at a meeting of the Board of
Directors or an equivalent governing body.
27 special purpose entities, assumed not to be the subisidiaries of the investors under Article 8-7 of “Regulation for Financial
Statements,” are excluded from the scope of consolidation. The summary of the above special purpose entities are described in“Special Purpose Entities Subject to Disclosure.”As “Implementation Guidance on Disclosures about Certain Special Purpose Entities” (ASBJ Guidance No.15, March 29,2007) has been applied from the fiscal year commencing with April 1, 2007, MHFG applied the guidance from this fiscal year.
(2) Year-end Dates of Consolidated Subsidiaries
The accompanying consolidated financial statements include the accounts of subsidiaries whose fiscal year-ends are other thanMarch 31. Fiscal year-ends of such subsidiaries are principally December 31.
Consolidated subsidiaries with fiscal year-ends of the day before the last business day of June, of September 30 (in 2007)
and of October 31 performed tentative closings and prepared financial statements as of and for the period ended December
31. Other consolidated subsidiaries were consolidated based on their financial statements as of their respective balance
sheet dates.

120

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.

(3) Evaluation of Assets and Liabilities of Consolidated Subsidiaries
Assets and liabilities of consolidated subsidiaries, including the portion attributable to minority shareholders, are valued at fairvalue as of the respective date of acquisition.
(4) Amortization of Goodwill and Negative Goodwill
Goodwill of Mizuho Securities Co., Ltd. was entirely written off in the fiscal year ended March 31, 2008, in accordance withlosses recognized on the impairment of its stocks. As for other goodwill and negative goodwill in the fiscal year ended March
31, 2008, the entire amount is reflected in the income statement in the period of occurrence as the amount has no material
impact on MHFG's consolidated financial statements.
3. Summary of Significant Accounting Policies(1) Trading Assets and Trading Liabilities
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 and recorded in
Trading Assets or Trading Liabilities on the consolidated balance sheet.
Securities and other short-term credit instruments held for trading purposes are stated at fair value at the consolidated balance sheet date. Derivative financial products, such as swaps, forward contracts and option transactions, are stated at their fairvalues, assuming that such transactions were terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and interest paid during the fiscal year, the gains or losses
resulting from any change in the value of securities and monetary claims between the beginning and the end 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.
(2) 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 and affiliates, 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, determined by the moving average method.
(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 or losses, 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 with a quoted market price 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 consolidated balance sheet date (costof securities sold is calculated primarily by the moving-average method). Other securities which do not have readily determinable fair values are stated at acquisition cost or amortized cost as determined by the moving-average method.
Net unrealized gains/losses on Other securities, net of taxes, have been receiving greater focus because of the considerable change in the market circumstances these days, and the values of securities deemed as market prices such as thoseobtained from brokers and financial information vendors have been more available. Hence, taking into account the convergence of global accounting standards, if the values deemed as market prices could be obtained by the reasonable estimate,
Other securities formerly measured at acquisition cost as securities without fair values are measured at such values. This valuation decreased Securities by ¥49,948 million ($498,488 thousand), net unrealized gains/losses on Other securities, net oftaxes by ¥36,246 million ($361,739 thousand), respectively, and increased Other Debt Purchased by ¥152 million ($1,524
thousand) and Deferred Tax Assets by ¥13,549 million ($135,225 thousand), respectively, on the consolidated balance sheet
as of March 31, 2008. Among Other securities valued at acquisition cost, Reserve for Possible Losses on Loans are provided
for the bonds which are issued by private placement (Article 2 Paragraph 3 of the Financial Instruments and Exchange Law).
In addition, investments in non-consolidated subsidiaries and affiliates which are not under the equity method are stated atacquisition cost as determined by the moving average-method.

121

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities above.
Certain Other Securities which have readily determinable fair value are reduced to the fair value, and the difference between
the acquisition cost and the fair value is treated as a loss for the fiscal year (“impairment”), 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) unless it is deemed that there is a possibility of a recovery in the fair value. The amount of impairment was¥79,482 million ($793,243 thousand) and ¥3,247 million for the fiscal years ended March 31, 2008 and 2007, respectively.
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 price maintains
a certain level or lower(3) Securities Lending and Borrowing Transactions
Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥4,794 million ($47,851 thousand) and ¥5,093 million as of March 31, 2008 and 2007, respectively, and are included in trading securities under Trading
Assets. 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 total of securities repledged were ¥7,435,947 million($74,211,055 thousand) and ¥8,769,615 million as of March 31, 2008 and 2007, respectively, securities re-loaned were ¥24
million ($246 thousand) and ¥262 million as of March 31, 2008 and 2007, respectively, and securities neither repledged nor reloaned were ¥6,535,867 million ($65,228,220 thousand) and ¥5,528,908 million as of March 31, 2008 and 2007, respectively.
(4) Bills Discounted
In accordance with JICPA Industry Audit Committee Report No.24, bills discounted are accounted for as financing transactions.
The banking subsidiaries have rights to sell or pledge these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills. The face value of these bills amounted to ¥826,360 million ($8,247,108 thousand) and ¥861,428 million asof March 31, 2008 and 2007, respectively.
(5) Derivatives
Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives qualifying ashedges are mainly accounted for using either the fair-value hedge method or the deferral method of hedge accounting (see thefollowing note).
(6) Hedge Accounting
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied ashedge accounting methods.
The portfolio hedge for a large volume of small-value monetary claims and liabilities of domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by the method stipulated in the “Accounting
and Auditing Treatment relating to Adoption of Accounting Standards for Financial Instruments for Banks”( JICPA Industry
Audit Committee Report No.24).
The effectiveness of hedging activities for the portfolio hedge for a large volume of small-value monetary claims and liabilities
is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both the hedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, in the same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between the base interest rate index of the hedged cash flow and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the correlation between the fluctuation in the market or cash
flows of the hedged instruments and that of the hedging instruments.
Net Deferred Hedge Gains (Losses), net of Taxes recorded on the consolidated balance sheet resulted from the application of
the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of AccountingStandards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), under which the overall interest
rate risks inherent in loans, deposits and other instruments are controlled on a macro-basis using derivatives transactions. Thesedeferred hedge gains/losses are amortized as interest income or interest expenses over the remaining maturity and averageremaining maturity of the respective hedging instruments.
The unamortized amounts of gross deferred hedge losses, before net of applicable income taxes, were ¥154,316 million($1,540,088 thousand) and ¥241,602 million as of March 31, 2008 and 2007, respectively. The unamortized amounts of gross122deferred hedge gains on the macro-hedges, before net of applicable income taxes, were ¥143,643 million ($1,433,564 thousand) and ¥229,553 million as of March 31, 2008 and 2007, respectively.
Domestic consolidated banking subsidiaries and a domestic consolidated trust banking subsidiary apply the deferred methodof hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities denominated in foreign currencies as stipulated in “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Foreign
Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25). The effectiveness of the hedge is assessed byconfirming both the amount for the foreign currency position of the hedging instruments of currency-swap transactions,exchange swap transactions and similar transactions as the method of hedging the foreign exchange risks of monetary claims
and liabilities denominated in foreign currencies and the amount for the foreign currency position of the hedged monetaryclaims and liabilities denominated in foreign currency are equivalent.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method to portfolio
hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates in foreign currency and Other
securities 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 exceed the amount of acquisition cost of the hedged foreign
securities in foreign currency.
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 recognizedin the statement of income or deferred under hedge accounting, because these inter-company derivatives are executed according to the criteria for appropriate outside third-party cover operations which are treated as hedge transactions objectively inaccordance with JICPA Industry Audit Committee Reports Nos.24 and 25.

(7) Translation of Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic banking subsidiaries anda domestic trust banking subsidiary are translated into Japanese yen primarily at the exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in non-consolidated subsidiaries and affiliates not under theequity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the above transactions, aretranslated into Japanese yen primarily at the exchange rates in effect at each balance sheet date.
(8) Tangible Fixed Assets
Depreciation of buildings is computed mainly by the straight-line method, and that of equipment is computed mainly by the
declining-balance method with the following range of useful lives:
Buildings
3 years to 50 years
Equipment
2 years to 20 years
In accordance with the revision of the Corporate Tax Law of 2007, depreciation of the tangible fixed assets acquired on orafter April 1, 2007 is computed by the procedure stipulated in the revised law. As a result, Income before Income Taxes andMinority Interests decreased by ¥2,211 million ($22,066 thousand) compared with the corresponding amounts under the previously applied method.
As for the tangible fixed assets acquired before April 1, 2007 and depreciated to their allowable limit for depreciation, theirsalvage values are depreciated using the straight-line method in the following five fiscal years. As a result, Income before
Income Taxes and Minority Interests decreased by ¥1,687 million ($16,837 thousand) compared with the corresponding
amounts under the previously applied method.
(9) Intangible Fixed Assets
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally used software are capitalized and amortized over their estimated useful lives of mainly five years as determined by MHFG and consolidated subsidiaries.
(10) Deferred Assets• Bond issuance costs• Bond issuance costs are expensed as incurred.
• Debenture issuance costs• Debenture issuance costs are expensed as incurred. Debenture issuance costs booked on the consolidated balance sheet as ofMarch 31, 2006 are amortized under the straight-line method within a certain period by applying the previous accounting

123Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

method based on the tentative measure stipulated in “Tentative Solution on Accounting for Deferred Assets” (theAccounting Standards Board of Japan (“ASBJ” Report No.19, August 11, 2006).
• Bond discounts• Bonds are stated at amortized costs computed by the straight-line method on the consolidated balance sheet. Bond discounts
booked on the consolidated balance sheet as of March 31, 2006 are amortized under the straight-line method over the termof the bond by applying the previous accounting method and the unamortized balance is directly deducted from bonds,
based on the tentative measure stipulated in the “Tentative Solution on Accounting for Deferred Assets” (ASBJ Report No.19,
August 11, 2006).

(11) Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance with internallyestablished standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under the Company
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 expectedamounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive Control
Obligor”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of the amounts ofclaims 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 6 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 is applied,
under which method the reserve is determined as the difference between the book value of the loan and its present valueof 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 the losses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experience andother factors.
• Reserves for Possible Losses on Loans to Restructuring Countries are 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 the assessments are verified andexamined by the independent examination departments. Reserves for Possible Losses on Loans are provided on the basis ofsuch verified assessments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed by athird party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale of collateralpledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are written off
against the respective claims balances. The total directly written-off amounts were ¥515,809 million ($5,147,800 thousand)and ¥536,916 million as of March 31, 2008 and 2007, respectively.
For the fiscal year ended March 31, 2008, the claims above include corporate bonds which are issued by private placement(Article 2, Paragraph 3 of the Financial Instruments and Exchange Law) and others. For the fiscal year ended March 31, 2007,
the claims above include corporate bonds which are guaranteed by domestic consolidated banking subsidiaries and are issued
by private placement (Article 2, Paragraph 3 of the Securities and Exchange Law) and others in securities.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experience and otherfactors for general claims and the assessment for each individual loan for other claims.
(12) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments in securities, after
taking into consideration the financial condition and other relevant factors concerning the investee company. Except for securitization products which are included as reference assets of another securitization schemes of the Group's domestic banking
subsidiary, Reserve for Possible Losses on Investments is provided against unrealized losses on securitization products relatedwith the discontinuation of business regarding credit investments primarily in Europe which was made as an alternative to loansby the Group's domestic banking subsidiary. Since securities are recognized at fair value on the consolidated balance sheet, the124balance of Securities is offset against that of Reserve for Possible Losses on Investments by ¥45,939 million($458,478 thousand).

(13) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amount accruedat the end of the fiscal year, based on the estimated future payments.
(14) Reserve for Employee Retirement Benefits
Reserve for Employee Retirement Benefits (including Prepaid Pension Cost), which is provided for future benefit payments toemployees, is recorded as the required amount, based on the projected benefit obligation and the estimated plan asset
amounts at the end of the fiscal year. Unrecognized actuarial differences are recognized as income or expenses from thefollowing fiscal year under the straight-line method over a certain term within the average remaining service period of theemployees of the respective fiscal year.
(15) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement pension payments todirectors, corporate auditors and executive officers, is recognized at the amount accrued at the end of the respective fiscal year,
based on the internally established standards.
Until the fiscal year ended March 31, 2006, MHFG and certain domestic consolidated subsidiaries recognized director andcorporate auditor retirement benefits as expenses at the time of payment. However, in accordance with the public announcement of the “Accounting Standard for Directors' Bonus” (ASBJ Statement No.4, November 29, 2005) and the “Auditing
Treatment relating to Reserve defined under the Special Tax Measurement Law, Reserve defined under the Special Law andReserve for Director and Corporate Auditor Retirement Benefits” (The Japanese Institute of Certified Public Accountants(“JICPA”) Auditing and Assurance Practice Committee Report No.42, April 13, 2007), these benefits are recorded as Reserve for
Director and Corporate Auditor Retirement Benefits at the required amount commencing with the fiscal year ended March 31,
2007, based on internally established standards. As a result, for the fiscal year ended March 31, 2007, Income before Income
Taxes and Minority Interests decreased by ¥5,788 million, compared with the corresponding amounts under the previously
applied method.
(16) Reserve for Possible Losses on Future Sales of Loans
Reflecting the considerable changes in the market circumstances these days, Reserve for Possible Losses on Sales of Loans isprovided for possible losses on future sales of loans at the amount deemed necessary based on a reasonable estimate of possible future losses.
(17) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies, which are not covered by otherspecific reserves, in off-balance transactions, trust transactions and others. The balance is an estimate of possible future losses,
on an individual basis, considered to require a reserve.
(18) Reserve for Frequent Users Services
Reserve for Frequent Users Services is provided mainly to meet the future use of points of Mizuho Mileage Club at the amountdeemed necessary based on the reasonable estimate of the future usage of points.
While the Reserve was formerly included within Other Liabilities because of its limited materiality, it has been stated separately from this fiscal year due to its increased materiality with the increase in the number of members.
Reserve for Frequent Users Services formerly included within Other Liabilities on the consolidated balance sheet as of March
31, 2007 was ¥3,773 million.
(19) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided for the deposits derecognized from the liabilities at the estimated amount of
future claims for withdrawal. In accordance with “Auditing Treatment relating to Reserve defined under the Special Tax
Measurement Law, Reserves defined under the Special Law and Reserve for Directors and Corporate Auditor Retirement
Benefits” (The Japanese Institute of Certified Public Accountants (“JICPA”) Auditing and Assurance Practice Committee report
No.42, April 13, 2007) effective from the fiscal year 2007, MHFG has adopted the report from this fiscal year. As a result,
Income before Income Taxes and Minority Interests decreased by ¥9,614 million ($95,957 thousand) compared with the corresponding amount under the previously applied method.

125

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(20) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥2,680 million($26,754 thousand). This is the reserve pursuant to Article 46-5, Paragraph 1 and Article 48-3, Paragraph 1 of the Financial
Instruments and Exchange Law to indemnify the losses incurred from accidents in the purchase and sale of securities, othertransactions or derivative transactions.
Reserve for Contingent Liabilities from Futures Transactions and Reserve for Contingent Liabilities from Securities
Transactions, which were recognized under Article 81 of the Financial Futures Transaction Law and under Article 51 of the
Securities and Exchange Law, respectively, are stated as Reserve for Contingent Liabilities from Financial Instruments andExchange from this fiscal year because of the enforcement of the Financial Instruments and Exchange Law on
September 30, 2007.
Reserve for Contingent Liabilities from Securities Transactions as of March 31, 2007 was ¥2,575 million, and Reserve forContingent Liabilities from Futures Transactions as of March 31, 2007 was ¥104 million.
(21) Lease Transactions
Finance leases of MHFG and domestic consolidated subsidiaries that do not involve the transfer of ownership to the lessee areaccounted for as operating leases.
(22) Scope of Cash and Cash Equivalents in Consolidated Statements of Cash Flows
In the Consolidated Statements 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.
(23) Income Taxes
Deferred income taxes are recorded for corporate tax, inhabitants' taxes and enterprise taxes based on the differences between
the tax bases of assets and liabilities and those reported in the consolidated financial statements and tax losses carried forward,
using enacted tax rates which will be in effect when the differences are expected to be reversed. The assets and liabilities
method is used to determine deferred income taxes.
(24) Consumption Taxes
MHFG and its domestic consolidated subsidiaries are subject to Japanese consumption taxes. Japanese consumption taxes are
excluded from transaction amounts.

126

(25) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2008(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock
Total

As of
March 31, 2007

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2008

11,872
943
36

—
—
—

475
—
—

11,396943
36

12,852—475

12,376

265

215

476

4

265

215

476

4

Treasury stock
Common stock
Total

Remarks*1*2*1 Decreases are due to cancellation of treasury stock (common stock).
*2 Increases are due to repurchase of treasury stock (215 thousand shares of common stock) and repurchase of fractional shares (0 thousand
shares), decreases are due to cancellation of treasury stock (475 thousand shares of common stock) and additional purchase of fractional
shares (0 thousand shares).

(ii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2008
Cash Dividends
Cash Dividends
Resolution

June 26,
2007

(

)

Ordinary
General Meetingof Shareholders

Types(Millions of yen)

Common Stock¥ 83,081(Thousand of
U.S. dollars)$

829,156

Cash Dividends
per Share

Cash Dividends
per Share(Yen)(U.S. dollars)

¥

7,000

$

RecordDate

69.86

March 31,2007

Eleventh Series Class XI
Preferred Stock18,874

188,371

20,000199.60March 31,
2007

Thirteenth Series Class XIII
Preferred Stock

1,100

10,98530,000299.40March 31,2007

¥ 103,056$ 1,028,512

/

/

Total

Effective
Date

June 26,
2007

Cash dividends with record dates falling in the fiscal year ended March 31, 2008 and effective dates coming after the end of
the fiscal year
Cash Dividends
Cash Dividends
Resolution

June 26,
2008

(

)

Ordinary
General Meetingof Shareholders

Total

Resource ofDividends

Cash Dividends Cash Dividends
per Shareper Share

Types(Millions of yen)(Thousand of
U.S. dollars)Common Stock¥ 113,922$1,136,955

Retained
Earnings¥ 10,000

Eleventh Series Class XI
Preferred Stock18,874

188,371Retained
Earnings

Thirteenth Series Class XIII
Preferred Stock

1,100

10,985Retained
Earnings¥ 133,898$1,336,311(Yen)(U.S. dollars)

RecordDate

99.80

March 31,2008

20,000199.60March 31,2008

30,000299.40March 31,
2008

/

/

$

Effective
Date

June 26,
2008

127

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the fiscal year ended March 31, 2007(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Fourth Series Class IV Preferred Stock
Sixth Series Class VI Preferred Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock
Total

As of
March 31, 2006

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2007

12,003
150
150
943
36

—
—
—
—
—

131
150
150
—
—

11,872——943
36

13,284—431

12,852

396
—
—

0
150
150

131
150
150

265
—
—

396

300

431

265

Treasury stock
Common stock
Fourth Series Class IV Preferred Stock
Sixth Series Class VI Preferred Stock
Total

Remarks

*1
*2
*2

*3
*2
*2

*1 Decreases are due to cancellation of treasury stock (common stock).
*2 Increases and decreases are due to repurchase and cancellation of treasury stock (preferred stock).
*3 Increases are due to repurchase of fractional shares (0 thousand shares), decreases are due to cancellation of treasury stock (131 thousand
shares of common stock) and additional purchase of fractional shares (0 thousand shares).

(ii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2007
Cash Dividends
Resolution

June 27,
2006

(

)

Ordinary
General Meetingof Shareholders

Types(Millions of yen)

Common Stock¥ 48,005

Cash Dividends
per Share (Yen)¥RecordDate

4,000March 31,2006

Fourth Series Class IV
Preferred Stock

7,140

47,600March 31,2006

Sixth Series Class VI
Preferred Stock

6,300

42,000March 31,2006

Eleventh Series Class XI
Preferred Stock18,87420,000March 31,
2006

Thirteenth Series Class XIII
Preferred Stock

1,100

30,000March 31,2006

¥ 81,421/

Total

Effective
Date

June 27,2006

Cash dividends with record dates falling in the fiscal year ended March 31, 2007 and effective dates coming after the end of
the fiscal year
Cash Dividends
Resolution

June 26,
2007

(

)

Ordinary
General Meetingof Shareholders

Total

Resource ofDividends

Types(Millions of yen)

Common Stock¥ 83,081

Retained
Earnings

Eleventh Series Class XI
Preferred Stock18,874Thirteenth Series Class XIII
Preferred Stock

1,100¥ 103,056

Cash Dividends
per Share (Yen)RecordDate

7,000

March 31,2007

Retained
Earnings

20,000March 31,2007

Retained
Earnings

30,000March 31,2007¥

Effective
Date

June 26,
2007/(iii) “Accounting Standards for Statement of Changes in Net Assets” (ASBJ Statement No.6, December 27, 2005) and“Guidance on Accounting Standards for Statement of Changes in Net Assets” (ASBJ Guidance No.9, December 27, 2005)
took effect as of the fiscal year ended on or after the enforcement date of the Company Law. Thus, the standards and guidance were adopted commencing with the fiscal year ended March 31, 2007, with the “Consolidated Statement of Changes
in Net Assets” newly prepared instead of the former “Consolidated Statement of Capital Surplus and Retained Earnings.”
128

(26) Changes in Presentation Required by the Revision of “Banking Law Enforcement Regulations”
The appendix forms of “Banking Law Enforcement Regulations” (Ministry of Finance Ordinance No.10, 1982) have beenrevised by the “Cabinet Office Ordinance to Amend Part of Detailed Enforcement Regulations on Mutual Loan Business Law
and Banking Law” (Cabinet Office Ordinance No.60, April 28, 2006). In accordance with the application of the revised“Banking Law Enforcement Regulations” commencing with the fiscal year beginning on or after April 1, 2006, presentation of
account items has been changed as follows:(1) The net realized and unrealized losses from hedging instruments formerly included in “Other Assets” as deferred hedge
losses are presented as “Net Deferred Hedge Losses, net of Taxes” included in Valuation and Translation Adjustments, netof applicable income taxes.
(2) “Minority Interests” formerly listed after Liabilities is included in Net Assets.
(3) Former “Premises and Equipment” is classified into “Tangible Fixed Assets,” “Intangible Fixed Assets” and “Other
Assets.”(4) Software and other items formerly included in “Other Assets” are presented in “Software” and “Other Intangible Fixed
Assets” included in “Intangible Fixed Assets.”(5) Amortization of consolidation differences formerly recognized as “Other Expenses” is included as amortization of intangible fixed assets in “General and Administrative Expenses.”(6) Former “Amortization of Consolidation Differences” is included in “Amortization of Goodwill” on the consolidated statement of Cash Flows.
(7) Former “Losses (Gains) on Disposition of Premises and Equipment” on the consolidated statement of Cash Flows is presented as “Losses (Gains) on Disposition of Fixed Assets” and others following the new classification of former “Premises
and Equipment” on the consolidated balance sheet into “Tangible Fixed Assets,” “Intangible Fixed Assets” and others.
Former “Payments for Purchase of Premises and Equipment” is presented as “Payments for Purchase of Tangible Fixed
Assets” and others, and former “Proceeds from Sale of Premises and Equipment” is presented as “Proceeds from Sale ofTangible Fixed Assets” and others.
(8) Payments for purchase and proceeds from sale of software and others formerly included in “Other—net” under “CashFlow from Operating Activities” are included in “Payments for Purchase of Intangible Fixed Assets” and “Proceeds from
Sale of Intangible Fixed Assets” under “Cash Flow from Investing Activities.”
There were no changes in presentation required by the revision of “Banking Law Enforcement Regulations” for the fiscal year
ended March 31, 2008.
(27) Changes in the Basis for Presentation of Consolidation
For the fiscal year ended March 31, 2008
1. Practical Solutions on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements
Given that the “Practical Solutions on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” (ASBJ Report No.18, May 17, 2006) can be adopted from the fiscal year beginning on or before March
31, 2008, MHFG has adopted the new standards commencing with this fiscal year. The effect of this adoption on the consolidated statement of income is immaterial.
2. Accounting Standards for Financial Instruments
The definitions of securities in “Accounting Standards for Financial Instruments” (ASBJ Statement No.10) and in “Practical
Guidelines on Accounting Standards for Financial Instruments” (JICPA Laws and Regulations Committee Report No.14) werepartially revised on June 15, 2007 and on July 4, 2007, respectively, which is applicable from the fiscal year ending on orafter the enforcement date of the Financial Instruments and Exchange Law. MHFG has adopted the revised standards andguidelines commencing with this fiscal year.
3. Practical Guidelines for Tax Effects on Consolidated Financial Statements
As for the tax effects of sales of investments (such as subsidiaries' stocks) within the Group, MHFG has adopted Paragraph30-2 of “Practical Guidelines for Tax Effects on Consolidated Financial Statements” (JICPA Laws and Regulations Committee
Report No.6, March 29, 2007) from this fiscal year. The effect of this application on the consolidated balance sheet
is immaterial.
For the fiscal year ended March 31, 2007
1. Accounting Standards for Presentation of Net Assets in the Balance Sheet“Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9,2005) have been adopted from the fiscal year ended March 31, 2007. The amount corresponding to former “Shareholders'Equity” as of the end of the fiscal year ended March 31, 2007 was ¥5,022,335 million. Former “Shareholders' Equity” is
129Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

presented as “Net Assets” and classified into “Shareholders' Equity,” “Valuation and Translation Adjustments” and“Minority Interests.”
2. Treasury Stock, Capital Reserve and Appropriated Reserve“Accounting Standards for Treasury Shares and Appropriation of Legal Reserve” (ASBJ Statement No.1, February 21, 2002)
and “Guidance on Accounting Standards for Treasury Shares and Appropriation of Legal Reserve” (ASBJ Guidance No.2,
February 21, 2002) were partially revised as of December 27, 2005 and August 11, 2006. Given that the revisions apply toprocedures stipulated by the Company Law, MHFG has applied the above standards and guidance commencing with the fiscal year ended March 31, 2007. The effect of this application on the consolidated balance sheet is immaterial.
3. Report on the response to Investment Associations
In response to the “Practical Solution on Application of Control Criteria and Influence Criteria to Investment Associations”(ASBJ Report No.20, September 8, 2006) effective from the fiscal year ending upon or after the public announcement, MHFG
adopted the new accounting standard commencing with the fiscal year ended March 31, 2007. This adoption has no effecton the consolidated balance sheet since investment associations deemed subsidiaries in the ASBJ report had alreadybeen consolidated.

(28) Per Share Information
Per share information as of or for the fiscal years ended March 31, 2008 and 2007 are calculated based on thefollowing information:
Yen
As of or for the fiscal years ended March 31,

Net Assets per Share of Common StockNet Income per Share of Common Stock
Diluted Net Income per Share of Common Stock

2008

2007

¥ 254,722.01
25,370.25
24,640.00¥ 336,937.64
51,474.49
48,803.07

U.S. dollars
2008$

2,542.14
253.20245.91

Notes: 1.Net Assets per Share of Common Stock is based on the following information.
Millions of yen
2008

As of March 31,

Net Assets
Deductions from Net Assets
Paid-in Amount of Preferred Stock
Cash Dividends on Preferred Stock
Minority Interests
Net Assets (year-end) related to Common Stock
Year-end Outstanding Shares of Common Stock, on which
Net Assets per Share of Common Stock was calculated¥

5,694,159
2,792,451
980,430
19,975
1,792,045
2,901,708¥

11,391 Thousand shares

2007

Thousands of U.S. dollars
2008

6,724,408
2,813,521
980,430
19,975
1,813,115
3,910,887$

11,607 Thousand shares

56,827,943
27,868,773
9,784,731
199,356
17,884,686
28,959,170/

2.Net Income per Share of Common Stock is based on the following information.
Millions of yen
2008

For the fiscal years ended March 31,

Net Income¥
Amount not attributable to Common Stock
Cash Dividends on Preferred Stock
Deemed Dividends on Cancellation of Preferred StockNet Income related to Common Stock
Average Outstanding Shares of Common Stock (during the period)

311,224¥
19,975
19,975—291,249
11,479 Thousand shares

2007

Thousands of U.S. dollars
2008

620,965$
23,472
19,975
3,497
597,492
11,607 Thousand shares

3,106,033
199,356
199,356—
2,906,677/

3.Diluted Net Income per Share of Common Stock is based on the following information.
Millions of yen
2008

For the fiscal years ended March 31,

Adjustments to Net Income
Cash Dividends on Preferred Stock
Increased Number of Shares of Common Stock
Preferred Stock
Description of Dilutive Securities which Were not Includedin the Calculation of Diluted Net Income per Share ofCommon Stock as they have no dilutive effects

130¥

18,874¥
18,874
1,106 Thousand shares
1,106 Thousand shares—

2007

Thousands of U.S. dollars
2008

18,874$
18,874
1,022 Thousand shares
1,022 Thousand shares—

188,371
188,371///

4. Trading Assets and Liabilities
Millions of yen
2008

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

2007

8,628,467
1,686,781
99,324

Thousands of U.S. dollars
2008¥ 10,004,618
3,705,984
145,633¥$

99,846,496
36,985,876
1,453,429¥ 13,856,237¥ 10,414,573$ 138,285,801¥

4,533,279
3,609,823
169,969¥

6,350,602
1,831,668
115,030$

45,242,309
36,026,187
1,696,304¥

8,313,072¥

8,297,301$

82,964,800

Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 16,712,496
120,063
5,997
3,071,320
4,645,478
9,403,181¥ 15,490,025
139,208
6,905
3,019,395
6,452,909
10,941,537$ 166,791,382
1,198,238
59,85330,651,900
46,362,059
93,844,130¥ 33,958,537¥ 36,049,983$ 338,907,562

5. Securities
As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2Total*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥90,936 million ($907,550 thousand) and ¥89,230 million as of March 31, 2008 and 2007, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥4,978 million ($49,687 thousand) and ¥4,106 million as of March 31, 2008 and 2007, respectively.

131

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

6. Loans and Bills Discounted
Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 51,489,837
10,865,091
2,745,257
387,198
118,035
3,284¥ 51,035,595
11,211,926
3,073,674
412,437
228,0622,604$ 513,870,636
108,434,049
27,397,784
3,864,258
1,177,999
32,775¥ 65,608,705¥ 65,964,301$ 654,777,501

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, 2008 and 2007 include the following:
Millions of yen
2008

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

2007

Thousands of U.S. dollars
2008¥

27,769434,330
8,492
695,144¥

30,838633,107
10,458517,986$

277,1444,334,631
84,751
6,937,570¥

1,165,736¥

1,192,392$

11,634,096*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 therestructuring 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, the deferral 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.
*5 The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

Commitment Line for Loans
Overdraft protection on current accounts and contracts for 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 is in breachof contract conditions. The unutilized balance of these contracts amounted to ¥55,431,471 million ($553,208,303 thousand) and¥53,899,937 million as of March 31, 2008 and 2007, respectively. Of these amounts, ¥46,637,717 million ($465,446,280 thousand) and ¥44,504,074 million relate to contracts in which the original contractual maturity is one year or less, or which areunconditionally cancelable at any time as of March 31, 2008 and 2007, respectively.
Since many of these contracts expire without the rights exercised, the unutilized balance itself does not necessarily affect future
cash flows. A provision is included in many of these contracts that entitles the consolidated subsidiaries to refuse the execution ofloans, or reduce the maximum amount under contracts when there is a change in the financial situation, necessity to preserve aclaim, or other similar reasons. The banking subsidiaries obtain, moreover, real estate or securities as collateral at the time thecontracts are entered into, if needed, and periodically monitor a customer's business condition, based on and in accordance withestablished internal procedures, and take measures to control credit risks such as making amendments to contracts, if needed.

132

7. Foreign Exchange Assets and Liabilities
Millions of yen
2008

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:
Advance from Foreign Banks
Due to Banks (Foreign)
Foreign Bills Payable
Foreign Bills Sold
Total

2007

Thousands of U.S. dollars
2008¥

446,044
200,185
139,507
17,404¥

460,893
225,339
150,768
57,796$

4,451,541
1,997,862
1,392,290
173,694¥

803,141¥

894,797$

8,015,387¥

7,540
189,447
16,933
8,730¥

157,926
154,576
16,104
11,209$75,255
1,890,694
168,999
87,133¥

222,652¥

339,817$

2,222,081

Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 6,185,988
381,790
18,172
4,398,578¥ 2,707,768
440,167
19,176
2,572,345$ 61,736,412
3,810,287
181,358
43,897,989¥10,984,529¥ 5,739,458$109,626,046

8. Other Assets
As of March 31,

Derivatives
Accrued Income
Prepaid Expenses
Other
Total

9. Tangible Fixed Assets
Millions of yen
2008

As of March 31,

Land
Buildings
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on Sales of Replaced Assets and Others¥

395,873274,751
7,044
125,023¥¥

2007

Thousands of U.S. dollars
2008¥

398,988
265,4393,010
129,308$3,950,830
2,742,032
70,306
1,247,739

802,692¥

796,746$

8,010,907

704,635
40,229¥705,047
42,659$7,032,288
401,495

10. Deferred Debenture Charges
Millions of yen
2008

As of March 31,

Deferred Debenture Issuance Costs
Total

2007

Thousands of U.S. dollars
2008

¥

—

¥

22

$

—

¥

—

¥

22

$

—

133

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

11. Reserves for Possible Losses on Loans
Millions of yen
2008

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

2007

Thousands of U.S. dollars
2008¥(510,956)(173,423)(84)¥(500,863)(352,317)(3,133)$(5,099,370)(1,730,778)
(846)

¥

(684,465)¥(856,314)$(6,830,994)

Millions of yen
2008

2007

12. Assets Pledged as Collateral
The following assets were pledged as collateral:
As of March 31,

Trading Assets
Securities
Loans and Bills Discounted
Other Assets
Tangible Fixed Assets¥

5,395,565
12,510,007
5,347,130
13,565133¥

4,260,215
11,394,744
5,887,983
1,405
211

Thousands of U.S. dollars
2008$

53,847,964
124,850,378
53,364,579
135,382
1,333

The following liabilities were collateralized by the above assets:
Millions of yen
2008

As of March 31,

Deposits
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Borrowed Money
Other Liabilities¥

921,280
2,230,560
5,877,444
6,174,017
2,975,997
—

¥

2007

640,082
2,143,279
5,604,841
5,238,721
2,985,346
8,623

Thousands of U.S. dollars
2008$

9,194,421
22,261,078
58,657,126
61,616,945
29,700,578—

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and other werecollateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥9,185 million ($91,670
thousand) and ¥7,428 million, Trading Assets of ¥421,623 million ($4,207,818 thousand) and ¥306,986 million, Securities of¥2,529,793 million ($25,247,442 thousand) and ¥2,973,539 million, and Loans and Bills Discounted of ¥604,444 million($6,032,383 thousand) and ¥360,776 million as of March 31, 2008 and 2007, respectively. None of the assets were pledged ascollateral in connection with borrowings by the non-consolidated subsidiaries and affiliates.
Other Assets included guarantee deposits of ¥122,807 million ($1,225,627 thousand) and ¥120,724 million as of March 31,
2008 and 2007, respectively, collateral pledged for derivatives transactions of ¥1,172,978 million ($11,706,376 thousand) and¥489,876 million as of March 31, 2008 and 2007, respectively, margins for futures transactions of ¥20,782 million ($207,409
thousand) and ¥25,814 million as of March 31, 2008 and 2007, respectively, and other guarantee deposits of ¥13,448 million($134,212 thousand) and ¥3,888 million as of March 31, 2008 and 2007, respectively.

13413. Deposits
Millions of yen
2008

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other

¥

Total

5,122,429
32,780,475
570,449
33,320,074
10,088,721
4,381,890¥ 86,264,041

¥

2007

6,308,211
32,193,121
663,895
29,891,912
8,805,239
5,745,923¥ 83,608,304

Thousands of U.S. dollars
2008$

51,122,050
327,150,449
5,693,110
332,535,675
100,685,847
43,731,447$ 860,918,578*1 Ordinary Deposits include savings deposits.

14. Debentures
As of March 31,
IssuerDescription

MHCB

Coupon Debentures

MHBK

Discount Debentures

MHBK

Millions of yen
2008

2007

0.35%–1.20% 0.35%–1.20%—

319,486—— 0.08%–0.37%

Discount Debentures(custody only)—

102,087—— 0.05%–0.34%

MHBK

Coupon Debentures

20,033[4,634]33,490199,938[46,257]

0.10%–0.56% 0.10%–0.56%

MHBK

Coupon Debentures(with compound interest)

206,238[33,405]

347,958

2,058,270[333,386]

0.10%–0.56% 0.10%–0.56%

MHBK

Coupon Debentures(saving-type)672,553[92,228]

685,3716,712,109[920,449]

0.10%–0.66% 0.10%–0.56%

MHBK

Coupon Debentures(saving-type with compound interest)

73,127[14,175]

75,972729,816[141,476]

0.10%–0.66% 0.10%–0.56%

4,723,806$ 31,531,371

3,159,443¥

Interest rates
2008$ 21,831,238[7,684,431]¥

2,187,490[769,980]

2007

3,159,440

Total

¥

Thousands of
U.S. dollars
2008¥

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. Repayments for Debentures are scheduled for the next five years as follows:
Fiscal year ending March 31, 2009 ¥ 914,425 million ($ 9,125,999 thousand)2010 ¥ 891,191 million ($ 8,894,128 thousand)2011 ¥ 930,499 million ($ 9,286,421 thousand)2012 ¥ 229,881 million ($ 2,294,231 thousand)2013 ¥ 193,445 million ($ 1,930,591 thousand)3. No collateral was provided for the above debentures.

15. Call Money and Bills Sold
Millions of yen
2008

As of March 31,

2007

Thousands of U.S. dollars
2008

Call Money
Bills Sold¥

6,693,712—¥

6,924,136—$ 66,803,516
—

Total

¥

6,693,712¥

6,924,136$ 66,803,516

135

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

16. Commercial Paper
Millions of yen
2008

As of March 31,

Commercial Paper¥

30,000¥2007

30,000

Average interest rates*1
2008
2007

Thousands of U.S. dollars
2008$

299,401

0.78%

0.66%

*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.

17. Borrowed Money
Millions of yen
2008

As of March 31,

Other Borrowings*2,3¥

4,818,895¥

2007

Thousands of U.S. dollars
2008

4,563,438$ 48,092,767

Average interest rates*1
2008
2007

1.09%

1.10%

*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 ¥791,061 million ($7,894,825 thousand) and ¥745,002 million as of March 31, 2008 and 2007, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal year ending March 31, 2009
¥3,501,160 million($34,941,717 thousand)2010¥ 53,211 million($ 531,054 thousand)2011¥ 93,614 million($ 934,272 thousand)2012¥ 112,065 million($ 1,118,421 thousand)2013¥ 130,961 million($ 1,307,006 thousand)

18. Short-term Bonds
Major components of Short-term Bonds at March 31, 2008 were as follows:
Issuer

Issue

MHFG

Jan. 2008

MHCB

Jan. 2008–Mar. 2008

MHSC
*1

Millions of yen

Thousands of U.S. dollars

Apr. 2008

490,000[490,000]

4,890,220[4,890,220]

0.65%–0.80%

Apr. 2008–
Aug. 2008

Nov. 2007–Mar. 2008

257,900[257,900]

2,573,852[2,573,852]

0.55%–0.80%

Apr. 2008–
Sep. 2008

Nov. 2007–Mar. 2008

19,884[19,884]

198,447[198,447]

0.54%–0.80%

Apr. 2008–
Jun. 2008

787,784

$

Due

0.85%

¥

20,000[20,000]

Interest rates

199,601[199,601]

Total

¥

$

7,862,120

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.
*1 indicates the total amount of short-term bonds issued by the domestic consolidated subsidiary Mizuho Investors Securities Co., Ltd.

Major components of Short-term Bonds at March 31, 2007 were as follows:
Issuer

Issue

MHFG

Jan. 2007–Feb. 2007

Millions of yen

Interest rates

45,0000.56%–0.69%

Apr. 2007

MHCB

Feb. 2007–Mar. 2007

402,600

0.48%–0.75%

Apr. 2007–
Jul. 2007

MHSC

Sep. 2006–Mar. 2007

360,200

0.41%–0.70%

Apr. 2007–
Sep. 2007*1

Jan. 2007–Mar. 2007

34,0700.44%–0.77%

Apr. 2007–
Jun. 2007*2

Mar. 2007

8,000

0.86%

Apr. 2007

Total

¥

¥

849,870

Note: No collateral was provided for the above short-term Bonds.
*1 indicates the total amount of Short-Term Bonds issued by the domestic consolidated subsidiary Mizuho Investors Securities Co., Ltd.
*2 indicates the total amount of Short-Term Bonds issued by the domestic consolidated subsidiary UC Card Co., Ltd.

136

Due

19. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2008 were as follows:
IssuerDescription

Issue

Millions of yen

Thousands of U.S. dollars

Interest rates

Due

MHCB

Straight Bonds

Sep. 1995–
Mar. 2008¥ 1,426,971[—]$ 14,241,237[—]

0.59%–
3.65%

Sep. 2010 –Jul. 2027

MHBK

Straight Bonds

Sep. 2004–
Jan. 2008

662,500[—]

6,611,776[—]

0.96%–
2.87%

Sep. 2014 –MHTBStraight Bonds

Nov. 2003–
Apr. 2007

162,200[—]

1,618,763[—]

1.01%–
3.31%

Nov. 2013 –*1

Straight Bonds

Jan. 2004–
419,231Mar. 2004[—](US$3,000,000 thousand)(EUR 750,000 thousand)

4,183,950[—]

4.75%–
8.37%

Apr. 2014 –*2

Straight Bonds

Feb. 1997–
Sep. 2004

208,200[—]

2,077,844[—]

1.36%–
4.35%

Aug. 2010 –*3Straight Bonds

Jul. 1995–
Dec. 2007

513,132[—](US$1,488,549 thousand)(EUR 65,000 thousand)

5,121,078[—]

0.93%–
8.62%

Apr. 2010 –*4Straight Bonds

Feb. 2000–
659,953
Mar. 2008[65,472](US$ 125,118 thousand)(EUR
4,920 thousand)(AUD
1,520 thousand)

6,586,364[653,414]

0.00%–
20.00%

Apr. 2008 –Jul. 2047¥ 4,052,189$ 40,441,012

Total

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currencies 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, 2009 ¥ 65,472 million ($ 653,414 thousand)2010 ¥ 84,805 million ($ 846,360 thousand)2011 ¥129,850 million ($1,295,910 thousand)2012 ¥682,992 million ($6,816,295 thousand)2013 ¥682,130 million ($6,807,689 thousand)4. Bonds and Notes as of March 31, 2008 included subordinated bonds and notes of ¥2,135,234 million ($21,309,725 thousand).
5. No collateral was provided for the above Bonds and Notes.
*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Financial Group (Cayman) Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance (Curaçao) N.V.
*4 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiary, Mizuho International plc, and AArdvark ABS
CDO 2007-1.

137

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2007 were as follows:
IssuerDescription

Issue

Interest rates

Due

MHCB

Straight Bonds

Sep. 1995–¥ 738,809(US$74,000 thousand)Jan. 2007

0.74%–
5.71%

Jul. 2007 –Aug. 2014

MHBK

Straight Bonds

Sep. 2004–
Jan. 2007

522,500

0.80%–
2.87%

Sep. 2014 –MHTBStraight Bonds

May 2001–
Mar. 2006

152,200

0.88%–
2.88%

May 2012 –*1

Straight Bonds

Jan. 2004–
472,286
Mar. 2004(US$3,000,000 thousand)(EUR 750,000 thousand)

4.75%–
8.37%

Apr. 2009 –Apr. 2014*2

Straight Bonds

Jul. 1997

10,000

3.50%

Jul. 2012*3

Straight Bonds

Feb. 1997–
299,189
Sep. 2004 (US$110,000 thousand)

1.13%–
6.15%

Aug. 2010 –*4Straight Bonds

Jul. 1995–
538,640
Sep. 2006 (US$1,472,709 thousand)(EUR 65,000 thousand)

0.84%–
8.62%

Apr. 2007 –*5

Straight Bonds

May 1997–
503,899
Mar. 2007 (US$ 78,045 thousand)(EUR 25,040 thousand)

0.00%–
19.00%

Apr. 2007 –Apr. 2037

Total

Millions of yen¥ 3,237,525

Notes: 1. The amounts of foreign currencies denominated bonds are shown in original currencies in parentheses ( ).
2. Bonds and Notes as of March 31, 2007 included subordinated bonds and notes of ¥2,117,302 million.
3. No collateral was provided for the above Bonds and Notes.
*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary Mizuho Financial Group (Cayman) Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary Mizuho TB (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary Mizuho Finance (Aruba) A.E.C.
*4 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries Mizuho Finance (Cayman) Limited and Mizuho Finance (Curaçao) N.V.
*5 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary MHSC and the overseas consolidated subsidiary Mizuho International plc.

20. Other Liabilities
As of March 31,

Derivatives
Accrued Expenses
Unearned Income
Income Taxes Payable
Other
Total

138

Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 5,633,810
263,371
148,273
28,7103,720,888¥ 3,014,998
289,143
147,237
28,6402,290,636$ 56,225,657
2,628,460
1,479,772
286,532
37,134,613¥ 9,795,054¥ 5,770,656$ 97,755,034

21. Reserve for Employee Retirement Benefits(1) MHFG and domestic consolidated subsidiaries adopt the Corporate Pension Fund Plans (“Kigyo Nenkin Kikin Seido”), the Taxqualified Pension Plans (“Tekikaku-Taishoku-Nenkin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”)
as Defined-Benefit Corporate Pension Plans. In addition, MHFG and certain domestic consolidated subsidiaries adopt DefinedContribution Pension Plans. Certain domestic consolidated subsidiaries established employee retirement benefit trusts.
(2) Reserve for Employee Retirement Benefits was reconciled as follows:
Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 1,171,273(1,295,219)¥ 1,176,329(1,592,882)$ 11,689,352(12,926,344)

Unfunded Projected Benefit Obligations
Unrecognized Actuarial Differences(123,946)(405,558)(416,552)(36,822)(1,236,992)(4,047,490)

Net Amounts
Prepaid Pension Cost

(529,505)
565,524(453,374)
491,016(5,284,482)
5,643,960

As of March 31,

Projected Benefit Obligations
Plan Assets

Reserve for Employee Retirement Benefits¥

36,019¥37,641$

359,478

Notes: 1. The above Projected Benefit Obligations do not include additional retirement benefits paid to employees.
2. The above Projected Benefit Obligations include the amount measured by certain consolidated subsidiaries under the
non-actuarial method.

(3) Breakdown of Employee Retirement Benefit Expenses (Gains) was as follows:
Millions of yen
2008

For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Other (such as additional retirement benefits)¥

Net Retirement Benefit Expenses (Gains)
Gains on Cancellation on Employee Retirement Benefit Trust
Net Expenses (Gains) related to Employee Retirement Benefits

22,003
28,910(93,521)
23,355
6,559¥(12,692)—¥(12,692)

2007

Thousands of U.S. dollars
2008

22,76028,089(69,567)
821
6,798

$

(11,098)(125,961)¥(137,059)

219,593
288,526(933,345)
233,084
65,466(126,676)—$(126,676)

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 non-actuarial method for calculating projected benefit
obligations are included in Service Cost in full.

(4) Assumptions used in calculation of the above information were as follows:
Discount Rate
Expected Rate of Return on Plan Assets
Method of Attributing the Projected Benefits to Periods of Service
Prior Service Cost
Amortization of Unrecognized Actuarial Differences

2008
Mainly 2.5%
Mainly 4.3%6.86%
Straight-line basis
Charged to Income(Loss) in the year
Primarily 10-12 years

2007
Mainly 2.5%
Mainly 3.7%
Straight-line basis
Charged to Income(Loss) in the year
Primarily 10-12 years

139Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

22. Acceptances and Guarantees(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra- accounts Acceptances and Guarantees and Customers' Liabilities for Acceptances and Guarantees.
The outstanding balances of the accounts were as follows:
As of March 31,

Guarantees
Letters of Credit
Acceptances
Total

Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 4,581,251
134,051
18,550¥ 4,301,411
171,052
8,087$ 45,721,069
1,337,837
185,136¥ 4,733,852¥ 4,480,551$ 47,244,042

Note: 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 ¥1,438,495 million($14,356,247 thousand) and ¥1,583,072 million as of March 31, 2008 and 2007, respectively.
Commencing with the fiscal year ended March 31, 2007, the respective amounts of “Acceptances and Guarantees” and “Customers'
Liabilities for Acceptances and Guarantees” relating to the liabilities for guarantees are netted, excluding the amounts guaranteed by theCredit Guarantee Corporations which have already been netted, in accordance with the revision of the appendix forms of “Banking Law
Enforcement Regulations” (Ministry of Finance Ordinance No.10, 1982) by the “Cabinet Office Ordinance to Amend Part of Banking Law
Enforcement Regulations” (Cabinet Office Ordinance No.38, April 17, 2007) effective from the fiscal year which began on or after
April 1, 2006.
As a result, for the fiscal year ended March 31, 2007 both “Acceptances and Guarantees” and “Customers' Liabilities for Acceptances andGuarantees” decreased by ¥1,537,996 million, compared with corresponding amounts under the previously applied method.

(2) The principal amounts promised to be indemnified for money trusts and loan trusts, which are entrusted to domestic consolidated trust banking subsidiaries, were ¥908,537 million ($9,067,236 thousand) and ¥86,775 million ($866,019 thousand) as
of March 31, 2008, respectively, and ¥987,910 million and ¥172,055 million as of March 31, 2007 respectively.

23. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34, dated March 31, 1998), land used for business operations ofdomestic consolidated banking subsidiaries was revalued on March 31, 1998. In accordance with Article 2, Item 4 of the
Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119, promulgated on March 31, 1998),
the revaluation was performed by the method of calculating the value along with reasonable adjustments, such as for the condition of the land.
The applicable income taxes on the entire excess of revaluation is included in Deferred Tax Liabilities for Revaluation Reserve forLand under Liabilities, and the remainder, net of applicable income taxes, is stated as Revaluation Reserve for Land, net of Taxes
included in Net Assets.
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 book value of the land after
such revaluation was ¥114,251 million ($1,140,233 thousand) and ¥139,972 million as of March 31, 2008 and2007, respectively.

140

24. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2008 and 2007 were as follows:
Number of shares
As of March 31, 2008
Class of stock

Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Authorized

Issued andoutstanding

Per share (Yen)With
Liquidation Convertible Redemption
value
or notor notInterimYear-end
cash dividend cash dividend

24,392,259 11,396,254.66
1,398,500
943,740
1,500,000
36,690¥———¥ 10,000 ¥—
20,000 1,000,000
30,000 1,000,000

No
Yes
No

No
No
Yes

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
4 thousand shares
2.The total number of shares of Class XII Preferred Stock, which are authorized to be issued, is 1,500,000.

Number of shares
As of March 31, 2007
Class of stock

Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Authorized

Issued andoutstanding

Per share (Yen)InterimYear-end
cash dividend cash dividend

24,868,200 11,872,195.49
1,398,500
943,740
1,500,000
36,690

¥

—
—
—

With
Liquidation Convertible Redemption
value
or notor not¥ 7,000 ¥—20,000 1,000,000
30,000 1,000,000

No
Yes
No

No
No
Yes

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock 265 thousand shares
2.The total number of shares of Class XII Preferred Stock, which are authorized to be issued, is 1,500,000.

25. 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
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses

Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 1,507,449
671,783
12,84773,783
460,390
46,492
92,049¥ 1,302,102
592,863
19,58676,527
470,335
22,84778,379$ 15,044,410
6,704,425
128,217736,367
4,594,718
463,993918,654¥ 2,864,796¥ 2,562,642$ 28,590,784

709,586
23,74658,020606,806
70,59678
70,255
262,065584,603
34,08331,937
609,642
29,08352
38,980143,994

7,081,698
236,991
579,051
6,055,954
704,556787
701,155
2,615,426

Total

1,801,156

1,472,378

17,975,618

Net¥ 1,063,639¥ 1,090,264$ 10,615,166

141

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

26. Trading Income and Trading Expenses
Millions of yen
2008

For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for Trading Transactions

¥

Total

¥

249,076

Trading Expenses:
Net Losses on Trading Securities
Total
Net

15,952
233,124¥2007

110,672
155,130

Thousands of U.S. dollars
2008$

265,802

159,2072,326,588
2,485,795

192,927

4,258

1,925,421

192,927

4,258

1,925,421

56,149¥261,544

Millions of yen
2008

2007

$

560,374

27. Other Operating Income
For the Fiscal Years ended March 31,

Gains on Foreign Exchange Transactions
Gains on Sales of Bonds
Other
Total

Thousands of U.S. dollars
2008

¥

—
240,196
54,160¥140,257
79,95850,729$—2,397,170
540,522¥294,356¥

270,945$ 2,937,692

Millions of yen
2008

2007

Thousands of U.S. dollars
2008

28. Other Operating Expenses
For the Fiscal Years ended March 31,

Loss on Foreign Exchange Transactions
Losses on Sales of Bonds
Expenses on Derivatives other than for Trading or Hedging
Losses on Devaluation of Bonds
Amortization of Debenture Issuance Costs
Other

¥

110,248
143,611—6,869
81
51,284¥—53,903
11,283190
252
57,807$ 1,100,286
1,433,248—
68,553810
511,820¥

312,094¥

123,438$ 3,114,717

For the Fiscal Year ended March 31, 2008

Millions of yen

Thousands of U.S. dollars

Gains on Sales of Stock
Recovery on Written-off Loans
Reversal of Reserves for Possible Losses on Loans
Gains on Disposition of Fixed Assets
Other

¥

343,965
39,83275,779
9,915
110,243$ 3,432,789
397,531756,285
98,955
1,100,239¥

579,737$ 5,785,799

For the Fiscal Year ended March 31, 2007

Millions of yen

Thousands of U.S. dollars

Gains on Sales of Stock
Gains on Cancellation of Employee Retirement Benerfit Trust
Recovery on Written-off Loans
Reversal of Reserve for Contingencies
Gains on Disposition of Fixed Assets
Other

¥

231,265
125,961
77,38928,257
16,64243,300$ 1,958,380
1,066,660
655,340239,286
140,930
366,676¥

522,816$ 4,427,272

Total

29. Other Income

Total

Total

142

30. Other Expenses
For the Fiscal Year ended March 31, 2008

Millions of yen

Impairment Losses of Stocks
Write-offs of Loans
Losses on Disposition of Fixed Assets
Losses on Impairment of Fixed Assets
Provision for Reserve for Contingent Liabilities from Futures Transactions
Amortization of Goodwill of Security Subsidiary
Other

¥

102,621
128,089
8,215
2,698
0
25,715362,739$

1,024,164
1,278,335
81,987
26,9306
256,638
3,620,158¥

630,079$

6,288,218

Total

Thousands of U.S. dollars

Note: Other Expenses includes a loss of ¥95,289 million ($950,998 thousand) incurred in relation to receipt of securitized products as a substitution
payment of loans provided by the Group's domestic banking subsidiary to an overseas ABCP conduit, provision for Reserve for Possible Losses
on Future Sales of Loans of ¥50,895 million ($507,941 thousand), provision for Reserve for Possible Losses on Investments of ¥45,939 million($458,478 thousand), related with the discontinuation of business regarding credit investments primarily in Europe which was made as analternative to loans by the Group's domestic banking subsidiary.
For the Fiscal Year ended March 31, 2007

Millions of yen

Impairment Losses of Stocks
Provision for Reserves for Possible Losses on Loans
Write-offs of Loans
Losses on Disposition of Fixed Assets
Losses on Impairment of Fixed Assets
Provision for Reserve for Contingent Liabilities from Securities Transactions
Provision for Reserve for Contingent Liabilities from Futures Transactions
Other

¥

335,790
69,775
67,141
17,0714,281
307
21
79,324$

2,843,513
590,870
568,563
144,562
36,2592,608
181
671,727¥

573,714$4,858,283

Total

Thousands of U.S. dollars

31. Cash Flows(1) Cash and Cash Equivalents on the consolidated statements of cash flows reconciles to Cash and Due from Banks on the consolidated balance sheets as follows:

As of March 31,

Cash and Due from Banks
Less: Due from Banks excluding due from Central Banks
Cash and Cash Equivalents

Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 3,483,802(1,428,009)¥ 3,993,362(904,331)$ 34,768,487(14,251,588)¥ 2,055,793¥ 3,089,030$ 20,516,899(2) Increase (Decrease) in Reserve for Frequent Users Services (¥3,143 million for the previous fiscal year), formerly included in“Other – net” under “Cash Flow from Operating Activities”, is stated independently as “Increase (Decrease) in Reserve forFrequent Users Services” commencing with this fiscal year, due to the materiality of the amount.

143

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

32. Lease Transactions
Finance Leases (Lessees)
The Acquisition Cost Equivalents, Accumulated Depreciation Equivalents, Accumulated Impairment Loss Equivalents and Book
Value Equivalents relating to finance lease transactions accounted for as operating leases were summarized as follows:
Millions of yen

As of March 31,

Equipment

2008
Others

Total

Equipment

2007
Others

Total

Acquisition Cost Equivalents
Accumulated Depreciation Equivalents
Accumulated Impairment Loss Equivalents¥

46,15433,693—¥

2,105 ¥
1,319—

48,26035,013—¥47,222
31,14124¥

2,609 ¥
2,026—

49,831
33,16824

Book Value Equivalents¥

12,461¥786 ¥

13,247¥

16,056¥582 ¥

16,638

Thousands of U.S. dollars

As of March 31,

Equipment

2008
Others

Total

Acquisition Cost Equivalents
Accumulated Depreciation Equivalents$ 460,623
336,261$ 21,017 $ 481,640
13,171
349,432

Book Value Equivalents$ 124,362$

7,846 $ 132,208

Future lease payments subsequent to the end of the fiscal year for finance lease transactions accounted for as operating leases(including the interest portion thereon) were summarized as follows:
Millions of yen
2008

As of March 31,

Due in One Year or Less
Due after One Year
Total

2007

Thousands of U.S. dollars
2008

¥

8,397
14,601¥

8,804
18,466$83,804
145,727¥

22,999¥27,271$ 229,531

Impairment Loss Equivalent Account, Lease Expense, Depreciation Equivalents, Interest Expense Equivalents and Impairment
Losses relating to finance lease transactions accounted for as operating leases were summarized as follows:
Millions of yen
2008

As of March 31,

Impairment Loss Equivalent AccountLease Expense
Depreciation Equivalents
Interest Expense Equivalents
Impairment Losses

¥

—
8,854
7,516
777
—

2007

¥

24
10,701
10,006876
24

Thousands of U.S. dollars
2008

$

—
88,37075,0207,761—

Notes: 1. The method for computing the amount of depreciation equivalents is as follows:
Depreciation equivalents are calculated by the declining-balance method, computed by multiplying the amounts by 10/9, which itself iscomputed assuming that the useful life is the lease term and that the residual value at the end of the lease term is 10% of theacquisition cost.
2. The method for computing the amount of interest expenses equivalents is as follows:
The amounts are defined as the difference between total lease payments and acquisition cost equivalents, which are allocated over thelease term by the interest method.

144

Operating Leases
The future lease payments subsequent to the end of the fiscal year for operating lease transactions were summarized as follows:
Lessees:Millions of yen
2008

As of March 31,

Due in One Year or Less
Due after One Year
Total

¥

41,074
134,702¥ 175,776

2007¥

39,288
151,670

Thousands of U.S. dollars
2008$

409,923
1,344,338¥ 190,959$ 1,754,261

2007

Thousands of U.S. dollars
2008

Lessors:
Millions of yen
2008

As of March 31,

Due in One Year or Less
Due after One Year
Total

¥

—
—

¥

1,070
5,319

$

—
—

¥

—

¥

6,390

$

—

145

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

33. Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2008

2007

Thousands of U.S. dollars
2008¥ 1,323,244
515,968
312,021
190,596351,470¥ 1,543,353
432,648
387,648
185,110
335,478$ 13,206,031
5,149,386
3,113,985
1,902,162
3,507,686

2,693,300(1,501,783)

2,884,239(1,521,873)

26,879,250(14,987,857)¥ 1,191,517¥ 1,362,366$ 11,891,393¥(206,397)(214,192)(174,361)¥(178,208)(836,228)(177,129)$ (2,059,854))(2,137,654)(1,740,132)¥(594,951)¥ (1,191,565)$ (5,937,640)¥

596,566¥

170,800$

Millions of yen
2008

2007

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
Other
Deferred Tax Assets Subtotal:
Valuation Allowance
Total
Deferred Tax Liabilities:
Prepaid Pension Cost
Net Unrealized Gains on Other Securities
Other
Total
Net Deferred Tax Assets

5,953,753

Balances reported on the Consolidated Balance Sheets:
As of March 31,

Thousands of U.S. dollars
2008

Deferred Tax Assets
Deferred Tax Liabilities¥

607,920(11,354)¥

389,024(218,224)$

6,067,067(113,314)

Net Deferred Tax Assets¥

596,566¥

170,800$

5,953,753

Notes: 1. In addition to the balances shown in the above table, there is an equivalent amount of deferred tax assets corresponding to tax losses
carried forward of ¥1,079,359 million ($10,772,055 thousand) and ¥1,133,637 million as of March 31, 2008 and 2007, respectively.
Since the tax losses carried forward resulted from transactions among consolidated subsidiaries, the deferred tax assets in the above table
and in the balance sheet exclude the equivalent amount of deferred tax assets.
2. MHFG and domestic subsidiaries are subject to a number of different income taxes.

For the fiscal years ended March 31, 2008 and 2007, 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, 2008

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends Received)
Tax Rate Differences between the Consolidated Subsidiaries
Amortization of Goodwill
Other

40.69)%(15.90)(4.01)
7.28
2.31
0.64

Effective Income Tax Rate

31.01)%For the Fiscal Year ended March 31, 2007

146

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g. Cash Dividends Received)
Other

40.69)%(11.62)(3.52)
1.84

Effective Income Tax Rate

27.38)%

34. Segment Information(1) Segment Information by Type of Business
Segment information by type of business at March 31, 2008 and 2007 and for the fiscal years ended March 31, 2008 and 2007
was as follows:
Millions of yen

2008
Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits(Losses)

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets

CapitalExpenditure

Banking Business ¥ 3,950,412 ¥ 38,719 ¥ 3,989,132 ¥ 3,215,067 ¥ 774,064 ¥ 136,224,235 ¥ 118,034 ¥Securities Business
428,488
88,094
516,583
917,178(400,595)
22,359,454
10,938
Other
144,609140,531
285,141
255,372
29,7681,070,089
3,747

2,591 ¥ 166,150
430,819102
17,940Total
Elimination

4,523,510—

Consolidated
Results¥ 4,523,510 ¥

267,345(267,345)

4,790,856(267,345)

4,387,618(261,228)

403,237(6,117)

159,653,779(5,241,674)

132,721—2,698—

214,910—— ¥4,523,510 ¥4,126,390¥397,120¥154,412,105¥132,721¥2,698¥214,910
Millions of yen

2007
Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits

Banking Business ¥ 3,236,020 ¥ 33,728 ¥ 3,269,748 ¥ 2,672,194 ¥ 597,554
Securities Business
688,225
77,954
766,180646,254
119,925
Other
175,408
125,328
300,736
263,359
37,377
Total
Elimination

4,099,654—

Consolidated
Results¥ 4,099,654 ¥

237,011(237,011)

4,336,666(237,011)

3,581,808(230,323)

754,857(6,687)— ¥ 4,099,654 ¥ 3,351,484 ¥ 748,170

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets¥ 129,910,635 ¥ 115,394 ¥
22,232,798
9,037
1,272,374
7,796
153,415,808(3,535,777)

132,228—¥ 149,880,031 ¥ 132,228 ¥CapitalExpenditure

4,070 ¥ 158,439—
13,459211
11,045
4,281—

182,944—

4,281 ¥ 182,944
Thousands of U.S. dollars

2008Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits(Losses)

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets

CapitalExpenditure

Banking Business $39,425,274 $ 386,425 $39,811,699 $32,086,507 $7,725,192 $1,359,523,308 $1,177,990 $ 25,867 $1,658,187
Securities Business 4,276,335
879,184 5,155,519 9,153,478 (3,997,959)
223,148,249
109,17140
307,585
Other
1,443,206 1,402,513 2,845,719 2,548,624
297,095
10,679,541
37,402
1,023
179,047
Total
Elimination

45,144,815 2,668,122 47,812,937 43,788,609 4,024,328— (2,668,122) (2,668,122) (2,607,068)(61,054)

Consolidated
Results$45,144,815 $— $45,144,815 $41,181,541 $3,963,274

1,593,351,098 1,324,563(52,312,117)—

26,930 2,144,819——$1,541,038,981 $1,324,563 $ 26,930 $2,144,819

Notes: 1. Ordinary Income represents Total Income less certain special income, and Ordinary Expenses represent Total Expenses less certain
special expenses.
2. Ordinary Profits represent Ordinary Income less Ordinary Expenses.
3. Major components of type of business are as follows:(1) Banking Business: banking and trust banking business(2) Securities Business: securities business(3) Other: investment advisory business and other
4. Until the fiscal year ended March 31, 2006, MHFG and certain domestic consolidated subsidiaries recognized director and corporate
auditor retirement benefits as expenses at the time of payment. However, in accordance with the public announcement of the“Accounting Standard for Directors' Bonus” (ASBJ Statement No.4, November 29, 2005) and the “Auditing Treatment relating to Reserve
defined under the Special Tax Measurement Law, Reserve defined under the Special Law and Reserve for Director and Corporate Auditor
Retirement Benefits” (JICPA Auditing and Assurance Practice Committee Report No.42, April 13, 2007), these benefits are recorded as
Reserve for Director and Corporate Auditor Retirement Benefits at the required amount as of March 31, 2007, based on internallyestablished standards. As a result, for the fiscal year ended March 31, 2007 Ordinary Expenses increased by ¥5,144 million, ¥506 millionand ¥137 million for Banking Business, Securities Business and Other, respectively, and Ordinary Profits decreased by the same amounts
for respective business, compared with the corresponding amounts under the previously applied method.
5. In accordance with the revision of the Corporate Tax Law of 2007, depreciation of the tangible fixed assets acquired on or after April 1,
2007 is computed by the procedure stipulated in the revised law. As a result, Ordinary Profits decreased by ¥1,749 million ($17,463
thousand), ¥363 million ($3,627 thousand) and ¥97 million ($976 thousand) for Banking Business, Securities Business and Other,respectively, compared with the corresponding amounts under the previously applied method. As for the tangible fixed assets acquired
before April 1, 2007 and depreciated to their allowable limit for depreciation, their salvage values are depreciated using the straight-line
method in the following five fiscal years. As a result, Ordinary Profits decreased by ¥1,621 million ($16,181 thousand), ¥30 million ($302
thousand) and ¥35 million ($355 thousand) for Banking Business, Securities Business and Other, respectively, compared with thecorresponding amounts under the previously applied method.

147

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Segment Information by Geographic Area
Segment information by geographic area at March 31, 2008 and 2007 and for the fiscal years ended March 31, 2008 and 2007
was as follows:
Millions of yen

2008
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan¥ 3,301,156
642,019368,397
211,937¥

Total
Elimination
Consolidated Results

4,523,510—

Ordinary
IncomeOrdinary
Profits(Losses)

Ordinary
Expenses

Total Assets

39,867
174,985
61,8752,232¥ 3,341,023
817,004
430,273
214,170¥ 2,659,266 ¥
783,432
784,035
167,553

278,960(278,960)

4,802,471(278,960)

4,394,287(267,897)

408,183(11,063)

175,184,150(20,772,044)—¥ 4,523,510¥ 4,126,390 ¥

397,120¥ 154,412,105¥ 4,523,510¥

2007
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan¥ 2,822,824
614,136445,162
217,530¥

681,756 ¥ 135,347,671
33,571
18,913,933(353,761)
13,830,061
46,616
7,092,483

Millions of yen

Total
Elimination
Consolidated Results

4,099,654—

Ordinary
IncomeOrdinary
Expenses

Ordinary
Profits

Total Assets

33,941
166,460
51,2294,495¥ 2,856,765
780,597496,392
222,026¥ 2,276,141 ¥
700,757
441,505
183,878

580,623
79,84054,88638,148¥ 130,400,488
17,968,153
13,415,749
7,217,744

256,126(256,126)

4,355,781(256,126)

3,602,283(250,798)

753,498(5,328)169,002,136(19,122,104)—¥ 4,099,654¥ 3,351,484 ¥

748,170¥ 149,880,031

Ordinary
Expenses

Ordinary
Profits(Losses)

Total Assets¥ 4,099,654¥

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeOrdinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan$ 32,945,671
6,407,377
3,676,619
2,115,148$ 397,875
1,746,359
617,523
22,283$ 33,343,546
8,153,736
4,294,142
2,137,431$ 26,539,587 $ 6,803,959
7,818,686
335,050
7,824,700(3,530,558)
1,672,193
465,238$ 1,350,775,169
188,761,815
138,024,563
70,783,268

Total
Elimination

45,144,815—

2,784,040(2,784,040)

47,928,855(2,784,040)

43,855,166(2,673,625)

4,073,689(110,415)

1,748,344,815(207,305,834)$ 45,144,815$$ 45,144,815$ 41,181,541 $ 3,963,274$ 1,541,038,981

Thousands of U.S. dollars

2008
Geographic Area

Consolidated Results—

Notes: 1. Ordinary Income represents Total Income less certain special income, and Ordinary Expenses represent Total Expenses less certain
special expenses.
2. Ordinary Profits represent Ordinary Income less Ordinary Expenses.
3. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations.
4. Americas includes the United States of America and Canada. Europe includes the United Kingdom. Asia / Oceania includes Hong Kong andthe Republic of Singapore.

(3) Ordinary Income from Overseas Entities
Ordinary Income from Overseas Entities for the fiscal years ended March 31, 2008 and 2007 consisted of the following:
For the Fiscal Years ended March 31,

Ordinary Income of Overseas Entities
Total Ordinary Income
Ordinary Income of Overseas Entities' Ratio

Millions of yen
2008¥ 1,222,354
4,523,510
27.0%

¥

2007

Thousands of U.S. dollars
2008

1,276,830
4,099,654$ 12,199,144
45,144,815

31.1%

/

Notes: 1. Ordinary Income of Overseas Entities represents Ordinary Income recorded by overseas branches of MHCB and other overseas subsidiaries
excluding Inter-segment Ordinary Income.
2. Segment information on Ordinary Income from overseas entities is not presented as no such information is compiled.

14835. Related Party
Effective the year ended March 31, 2008, MHFG has adopted “Accounting Standard for Related Party Disclosures” (ASBJ
Statement No.11) and “Guidance on Accounting Standard for Related Party Disclosures” (ASBJ Guidance No.13) issued on
October 17, 2006 earlier than the effective date as permitted.
There is no material addition to the current scope subject to disclosure.
There is no material transaction with related parties to be reported for the fiscal year ended March 31, 2008, pursuant to thestandard and its guidance.
There is no applicable information on the parent company and on the selected financial statements of important
related companies.

36. Special Purpose Entities Subject to Disclosure
Summary of Special Purpose Entities Subject to Disclosure and Transactions with These Special Purpose Entities:
Mizuho Bank, Ltd. (MHBK), Mizuho Corporate Bank, Ltd. (MHCB), and Mizuho Trust & Banking Co., Ltd. (MHTB), which areconsolidated subsidiaries of MHFG, granted loans, credit facilities and liquidity facilities to 27 special purpose entities (mainly
incorporated in the Cayman Islands) in their borrowings and fund raising by commercial paper in order to support securitizationof monetary assets of customers. The aggregate assets and aggregate liabilities of these 27 special purpose entities at the latest
closing date amounted to ¥3,221,671 million ($32,152,408 thousand) and ¥3,220,723 million ($32,142,948 thousand),
respectively. For any of these special purpose entities, MHBK, MHCB and MHTB do not own any shares with voting rights in anyof these special purpose entities and have not dispatched any director and employee to them.
Major transactions with these special purpose entities subject to disclosure as of or for the fiscal year ended March 31, 2008
are as follows:
As of March 31, 2008

Millions of yen

Thousands of U.S. dollars

Loans
Credit and Liquidity Facilities¥ 2,186,649
1,002,696$ 21,822,850
10,006,955

For the Fiscal Year ended March 31, 2008

Millions of yen

Thousands of U.S. dollars

Interest Income on Loans
Fee and Commission Income, etc.

¥

27,002
2,950$

269,484
29,442149

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

37. Subsequent Events(i) The Board of Directors of MHFG resolved on April 18, 2008 to redeem preferred securities issued by MHFG's overseas specialpurpose subsidiaries, as described below.
(a) Issuer
1. Mizuho Preferred Capital (Cayman) 5 Limited
2. Mizuho Preferred Capital (Cayman) 6 Limited
3. Mizuho Preferred Capital (Cayman) 7 Limited
4. Mizuho Preferred Capital Company L.L.C.
5. Mizuho JGB Investment L.L.C.
(b) Type of security
Non-cumulative Perpetual Preferred Securities(c) Aggregate redemption amount1.
¥45,500 million ($454,092 thousand)2. • Series A: ¥19,500 million ($194,611 thousand)• Series B:¥2,500 million ($24,950 thousand)3.
¥51,000 million ($508,982 thousand)4.
US$ 1,000 million
5.
US$ 1,600 million(d) Scheduled redemption dateJune 30, 2008(e) Reason for the redemption
Arrival of optional redemption date(ii) The postponement of merger of Securities Subsidiaries
An affiliate of MHFG under the equity method, Shinko Securities Co., Ltd. and a subsidiary of MHFG, Mizuho Securities Co.,
Ltd. have been postponing the effective date of merger based on the merger agreement signed on March 29, 2007, initiallyfrom January 1, 2008 to May 7, 2008, and then to the earliest possible date in 2009.
Further, the respective board meetings of the two companies held on April 28, 2008, reconfirmed the basic policies andpoints in relation to proceeding with the merger, canceled the agreement mentioned above, and decided to sign a new “Basic
Agreement for Merger” which sets the effective date of merger on May 7, 2009.
(iii) MHFG, at the meeting of the Board of Directors held on May 15, 2008, set up a limit for repurchasing MHFG's commonshares up to the maximum amount of ¥150.0 billion as described below. As with the repurchase of our common shares that
we conducted last year, this repurchase will be made for the purpose of, among other things, offsetting the potential dilutive
effect of the conversion of the Eleventh Series Class XI Preferred Stock in consideration of the possibility that the number ofshares of our common stock will increase after the commencement of the conversion period from July 1, 2008.
Details of Repurchase(a) Type of shares to be repurchased:
Shares of common stock of Mizuho Financial Group, Inc.
(b) Aggregate number of shares to be repurchased:
Up to a maximum of 600,000 shares(c) Aggregate amount of repurchase:
Up to a maximum of ¥150.0 billion(d) Period of repurchase:
From June 10, 2008 to November 30, 2008(e) Method of repurchase:
Market transactions and others

150

(iv) The ordinary general meeting of shareholders resolved on June 26, 2008 to allot shares or fractions of a share without consideration to all the shareholders or the holders of fractional shares, pursuant to the provisions of Article 88 of the “Law
Concerning Adjustment and Coordination of Relevant Laws in Association with the Enforcement of the Company Law” (Law
No.87 of 2005), the “Adjustment Law”), because fractional shares will no longer be handled under the new “book-entry
transfer system” after the implementation of the electronic share certificate system due to the enforcement of the “Law for
Partial Amendments to the Law Concerning Book-entry Transfer of Corporate Bonds and Other Securities for the Purpose of
Streamlining the Settlement of Trades of Stocks and Other Securities” (Law No.88 of 2004, the “Settlement RationalizationLaw”) which is scheduled to take effect in January 2009.
The details are as follows:(a) Method of computing shares and fractions to be allotted
The allotment shall be conducted by allotting the same type of shares and fractions of a share respectively to the shareholders or the holders of fractional shares, depending on the number of shares of common stock, shares of each class ofpreferred stock and fractional shares held by the shareholders and holders of fractional shares, without any additional
consideration, and such allotment will be made at the rate of 999 shares per one (1) share and 9.99 shares per every
0.01 of a share.
(b) The effective date of the allotment of shares or fractions of a share without consideration shall be the day preceding theenforcement date of the “Settlement Rationalization Law”.
At the same time, MHFG will adopt the unit share system and the number of shares constituting one (1) unit of shares shallbe one thousand (1,000) pursuant to Article 88, Paragraph 5 of the Adjustment Law. In addition, in conjunction with the
adoption of the unit share system, in order to lower the minimum investment amount to one-tenth (1/10), it was resolved at
the meeting of the Board of Directors held on May 15, 2008 to make an amendment to the Articles of Incorporation, withwhich the number of shares constituting one (1) unit of shares will be lowered from 1,000 to 100 pursuant to Article 195 of
the Company Law, the day preceding the date the Settlement Rationalization Law becomes effective being the effective date.
Per share information as of or for the fiscal years ended March 31, 2008 and 2007, assuming that the allotment of shares or
fractions of a share without consideration were conducted at the beginning of the year, is as follows:
Yen
As of or for the Fiscal Years ended March 31,

Net Assets per Share of Common StockNet Income per Share of Common Stock
Diluted Net Income per Share of Common Stock

2008

¥

254.72
25.37
24.64

2007

¥

336.9351.47
48.80

U.S. dollars
2008

$

2.54
0.25
0.25

151

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

38. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities 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, 2008

Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Local Government Bonds
Other
Other Securities*2:
Japanese Stocks*3
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Gross unrealized
Gains

Acquisition cost¥

778,813489,92148,547240,344
31,898,991
3,149,964
17,557,001
16,321,913
67,4395,997
1,161,650
11,192,025
7,524,572
2,427,346
1,240,107

¥

1,507

5,018
204
15
4,799
1,286,586
1,188,056
21,603
15,813966—
4,823
76,926
48,747
8,910
19,268¥—Losses60
47
12—608,706
211,328
119,715
115,152206
04,355
277,661
114,006
8,757
154,898

Fair value¥

6783,771490,078
48,549245,143
32,576,871
4,126,691
17,458,889
16,222,574
68,198
5,997
1,162,118
10,991,290
7,459,314
2,427,498
1,104,476
1,500Millions of yen

As of March 31, 2007

Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Local Government Bonds
Other
Other Securities*2:
Japanese Stocks*3
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Money Held in Trust
Other Money Held in Trust

152

Gross unrealized
Gains

Acquisition cost¥

1,337,447
969,020
49,980318,445
28,289,657
3,317,061
15,554,634
14,673,319
85,441
6,906
788,966
9,417,961
686

¥

0
0
—
—
2,803,332*4
2,741,841
3,953
2,026
499
—
1,427
57,536—¥

Losses

8,064
1,829
183
6,051
362,210*4
48,058161,412
154,340
1,154
0
5,917
152,740—

Fair value¥

1,329,383
967,192
49,797
312,394
30,730,779
6,010,844
15,397,175
14,521,005
84,787
6,905
784,477
9,322,758
686

Thousands of U.S. dollars

As of March 31, 2008

Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Local Government Bonds
Other
Other Securities*2:
Japanese Stocks*3
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Gross unrealized
Gains

Acquisition cost$

7,772,592
4,889,438
484,505
2,398,649
318,353,205
31,436,766
175,219,573
162,893,353
673,048
59,857
11,593,315
111,696,866
75,095,537
24,225,012
12,376,318$

50,0892,038
153
47,898
12,840,183
11,856,851
215,607
157,819
9,646—
48,142
767,725
486,506
88,922
192,297

15,043$Losses

607
478
129
0
6,074,910
2,109,067
1,194,767
1,149,229
2,066
4
43,4682,771,076
1,137,786
87,3981,545,892—

Fair value$

67

7,822,074
4,890,998
484,5292,446,547
325,118,478
41,184,550
174,240,413
161,901,943
680,628
59,853
11,597,989
109,693,515
74,444,256
24,226,536
11,022,723
14,976*1 A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains and losses are as follows:

Millions of yen
2008
As of March 31,

Trading Securities
Money Held in Trust for Investment

Fair value¥10,004,618
31,3262007

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)¥ (10,143) ¥ 8,628,467—
48,872¥ 5,200
12

Thousands of U.S. dollars
2008
Unrealized
Fair value
gains (losses)$ 99,846,496
312,642$ (101,237)—*2 In addition to the balances shown in the above table, Other Securities included securities which do not have readily determinable fair values such as follows:
As of March 31, 2008
Non-publicly offered bonds¥1,912,519 million ($19,087,016 thousand)Unlisted stocks¥ 427,849 million ($ 4,269,959 thousand)Unlisted foreign securities¥ 554,581 million ($ 5,534,743 thousand)Other¥ 262,756 million ($ 2,622,324 thousand)As of March 31, 2007
Beneficial certificate of loan trust and other¥2,161,377 million
Non-publicly offered bonds¥2,231,551 million
Unlisted foreign securities¥1,264,857 million
Other¥ 475,292 million*3 Fair value of Japanese Stocks with a quoted market price is determined based on the average quoted market prices over the month preceding the consolidated balance sheet date.
*4 Unrealized Gains (Losses) include ¥37,202 million ($371,280 thousand) and ¥3,935 million, which were recognized in the statements of income for the fiscal years ended March 31, 2008 and 2007,
respectively, by applying the fair-value hedge method.
*5 Net Unrealized Gains/Losses on Other Securities, net of Taxes have been receiving greater focus because of the considerable change in the market circumstances these days, and the values of securities
deemed as market prices such as those obtained from brokers and financial information vendors have been more available. Hence, taking into account the convergence of global accounting standards,
if the values deemed as market prices could be obtained by the reasonable estimate, Other Securities formerly measured at acquisition cost as securities without fair values are measured at such values.
This valuation is included in Japanese Corporate Bonds (acquisition cost: ¥395,581 million ($3,947,915 thousand), Amount on Consolidated BS: ¥394,937 million ($3,941,490 thousand)), Foreign
Bonds (acquisition cost: ¥760,726 million ($7,592,076 thousand), Amount on Consolidated BS: ¥711,421 million ($7,100,014 thousand)), and Other Debt Purchased (acquisition cost: ¥2,427,346
million ($24,225,012 thousand), Amount on Consolidated BS: ¥2,427,498 million ($24,226,536 thousand)).

153

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Projected Redemption Amounts for Bonds Held to Maturity and Other Securities with Maturity
Millions of yen

As of March 31, 2008

Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Total

Within 1 year¥

8,962,093
8,485,205
47,0495,997
423,841
1,213,128

1–5 years¥

5–10 years

Over 10 years

7,134,763
5,518,927
37,362—
1,578,473
4,733,116¥

1,905,074
1,234,163
27,849—643,060
1,877,175¥

1,907,946
1,474,199
7,801—
425,9442,849,376¥ 10,175,222¥ 11,867,879¥

3,782,249¥

4,757,322

Within 1 year

1–5 years

Millions of yen

As of March 31, 2007

Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Total

5–10 years

Over 10 years¥

6,648,544
6,244,060
4,078
6,905
393,499
1,180,743¥

7,704,173
5,782,659
89,878—
1,831,635
4,208,060¥

2,501,038
2,050,467
36,960—413,6102,911,237¥

1,801,778
1,412,838
8,290—
380,649
3,838,161¥

7,829,288¥ 11,912,234¥

5,412,275¥

5,639,940

Within 1 year

1–5 years

5–10 years

Over 10 years$ 89,442,055
84,682,692
469,559
59,852
4,229,951
12,107,068$ 71,205,220
55,079,114
372,878—
15,753,228
47,236,694$ 19,012,715
12,317,003
277,938—
6,417,773
18,734,289$ 19,041,382
14,712,573
77,861—
4,250,948
28,436,887$101,549,123$118,441,914$ 37,747,004$ 47,478,269

Thousands of U.S. dollars

As of March 31, 2008

Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Total

154

Other Securities Sold during the Fiscal Year
Millions of yen

Proceeds
from sales

For the Fiscal Years ended March 31,

Other Securities

2008
Total amountof gains
on sales¥ 67,364,166 ¥Total amountof losses
on sales

584,138 ¥ 140,224

Proceeds
from sales

2007
Total amountof gains
on sales¥ 34,125,456 ¥

311,223

Total amountof losses
on sales¥

48,873Thousands of U.S. dollars

Proceeds
from sales

For the Fiscal Year ended March 31,

Other Securities

2008
Total amountof gains
on salesTotal amountof losses
on sales$672,297,075 $ 5,829,722 $1,399,446

Net Unrealized Gains on Other Securities
Net Unrealized Gains on Other Securities as of March 31, 2008 and 2007 are as follows:
2007

Thousands of U.S. dollars
2008¥ 640,580
640,587(6)¥ 2,437,367
2,437,367—$ 6,393,017
6,393,084(67)

Deferred Tax Assets
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes—
206,580
433,999343
836,571
1,601,139—
2,061,682
4,331,335

Amount Corresponding to Minority Interests
Amount Corresponding to Net Unrealized Gains on Other Securities
Owned by Affiliated Companies, which Corresponds to the
Shareholdings of Their Investor Companies
Net Unrealized Gains on Other Securities, net of Taxes

35,08956,618350,199

2,465

6,107

24,605¥ 401,375¥ 1,550,628$ 4,005,741

As of March 31,

Difference between Acquisition Cost and Fair Value
Other Securities
Other Money Held in Trust

Millions of yen
2008

Note: The difference between acquisition cost and fair value excludes ¥37,202 million ($371,280 thousand) and ¥3,935 million, which wererecognized in the statements of income for the fiscal years ended March 31, 2008 and 2007, respectively, by applying the fair-value hedge
method, and includes translation differences regarding securities which do not have readily determinable fair value.

155

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

39. Derivatives Information(1) Risk Control for Derivatives(a) Details of Derivative Financial Products
The Group transacts primarily in the following derivative financial products:(i) Interest rate-related products
Swaps, interest rate guarantees (FRA options), futures, futures options, and options(ii) Currency-related products
Futures, futures options, options, swaps, and forward trading(iii) Stock-related products
Index futures, index futures options, and over-the-counter options(iv) Bond-related products
Futures, futures options, and over-the-counter options(v) Other products
Credit derivatives, commodity derivatives, weather derivatives, etc.
(b) Purposes of Using Derivative Financial Products
The Group uses derivative financial products in response to the diverse needs of customers, to control the risk related to theassets and liabilities of the Group, as part of its asset and liability management (“ALM”), and for trading purposes.
To control the risk related to assets and liabilities, the Group primarily utilizes portfolio hedges, grouping numerous financial
assets and liabilities, such as loans and deposits with similar interest risk in accordance with risk management policies, using interest rate swaps, etc., as hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to themajority of these products, treating them as deferred hedges. The effectiveness of the hedges is assessed by periodically checking,by regression analysis and other methods, whether the derivative financial products highly reduce the exposure to changes in fairvalue and variable cash flows from hedged items.
(c) Trading Guidelines
In accordance with the purposes for which the Group uses derivative financial products, the Group deals in derivative financial
products based on the following guidelines:(i) Responding to customer needs
After obtaining an adequate understanding of customer requirements, the Group follows a common policy on selling financial
products by recommending the most appropriate financial vehicle for each customer's knowledge, experience, asset positionand purpose of trading. When actually making a sale, the Group endeavors to give full explanations to its customers to ensurethat they clearly understand the nature of each product, the risks involved and other important matters.
(ii) Risk control of assets and liabilities of MHFG (ALM)
MHFG's ALM & Market Risk Committee meets periodically to confirm or revise the trading guidelines for the purposes of
securing stable income while appropriately controlling risk.
(iii) Trading activities
The Group engages in trading activities to maximize income under reasonable risk limits and strict management.
(d) Details of Trading-Related Risk
The following are the main risks inherent in derivatives trading.
(i) Credit risk:
The risk of incurring a loss because the counter parties are unable to fulfill their obligations due to bankruptcy orother reasons.
(ii) Market risk:
The risk of incurring a loss because the value of the derivative products decreases due to fluctuations in market risk factors
such as interest rates, foreign exchange rates and bond and stock prices.
(iii) Market liquidity risk:
The risk of incurring a loss from the inability to execute transactions in the market and/or execution at unfavorable prices due
to illiquidity of the products.
(iv) Other risk:
The risk of incurring increased costs from the additional collateral because of downgrades in MHFG's, the banking subsidiaries' and others' credit rating.

156

(e) Derivative Trading Risk Control Structure(i) Credit risk management structure
The Board of Directors determines important items concerning credit risk in accordance with the Basic Policy for Credit Risk
Management. MHFG has established the Portfolio Management Committee as one of its business policy committees. This
committee conducts overall deliberation on and adjustment of the group's credit portfolio management procedures. Under
the authority of the Chief Risk Officer, the Risk Management Department and the Credit Risk Management Department
jointly formulate and implement plans for basic matters related to credit risk management. The Group applies the same manner of credit risk management to derivative transactions as it applies to the other credit transactions.
(ii) Market risk management structure
The Basic Policies for Market and Liquidity Risk Management are determined by the Board of Directors. MHFG's Risk
Management Department is responsible for monitoring market risk, reports and analyses, proposals, setting limits, and for formulating and implementing plans relating to market risk management as a specialized risk management section.
The Group has established a solid management structure for market risk including comprehensive management (ALM) ofinterest rate risk and other types of risk. Through this structure, it comprehensively ascertains and manages risk, while managing assets to secure stable income and appropriately controlling risk.
MHFG has established the ALM & Market Risk Committee as one of the business policy committees charged with conducting overall deliberation on and adjustment of market risk management procedures. The committee decides the entire group's
monthly funding and investment policies, discusses and coordinates matters relating to ALM policies, risk planning and market
risk management, and responds to emergencies, such as sudden market changes.
In regard to reporting, the Risk Management Department receives the relevant data from the five core subsidiaries, as well
as reports on risk profiles and compliance with risk limits, both on a regular basis and as considered necessary. Based on thesereports, MHFG obtains a solid grasp of the market risk management situation. Reports on the status of market risk and compliance with risk limits are submitted to the President on a daily basis, and to the Board of Directors and the Executive
Management Committee on a regular basis and as considered necessary.

157

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Fair Value of Derivatives
The fair value of derivatives as of March 31, 2008 and 2007 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.
(ii) Fair values of listed contracts are based on the closing prices of the Tokyo Stock Exchange, the Tokyo International Financial
Futures Exchange, the New York Mercantile Exchange and others. Fair values of over-the-counter contracts are based on the
discounted value of future cash flows, option pricing models and others.
(a) Interest Rate-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2008

Listed:Futures:
Sold
BoughtOptions:
Sold
Bought¥Over-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtTotal

40,089,136
34,836,900¥

9,700,733
8,364,065

Unrealized
gains (losses)

Fair value¥(458,095)
435,577¥(458,095)
435,577

32,958,088
41,812,738

662,205
1,459,112(18,904)
22,370(6,003)
6,126

31,566,475
29,522,601

463,203553,642

2,708(2,332)

2,708(2,332)

528,045,937
531,247,787
31,332,858
864,889355,617,343
348,293,281
21,095,417
638,051

6,214,617(5,867,479)(11,459)436

6,214,617(5,867,479)(11,459)436

36,347,067
36,149,611

17,800,270
17,526,834(27,942,854)
27,946,346(27,942,854)
27,946,346

/

/

/

¥

317,587
Millions of yen

Contract value
Total
Over one year

As of March 31, 2007

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
Bought
Total

158

¥

41,594,787
35,055,345¥

12,154,102
8,103,374

Unrealized
gains (losses)

Fair value

¥

4,000
(4,897)¥4,000(4,897)

65,776,981
75,845,945

3,095,374
7,207,495(20,194)
16,915

3,456
2,014

14,159,665
11,447,054

201,828
251,828(1,800)2,007(1,800)
2,007

496,543,289
502,046,228
30,005,692
193,518

323,972,575
319,514,883
19,963,526
180,375(169,559)(19,342)
6,150
3,016

(169,559)(19,342)
6,150
3,016

34,304,976
25,907,713

16,619,950
14,295,512(122,153)
126,719(122,153)
126,719

/

/

/

¥

(170,387)

Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2008

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
Bought$400,091,179
347,673,660$

96,813,705
83,473,705$

Fair value

Unrealized
gains (losses)(4,571,816)
4,347,079$ (4,571,816)
4,347,079

328,923,044
417,292,799

6,608,840
14,561,998(188,665)
223,255(59,912)
61,138315,034,684
294,636,746

4,622,792
5,525,369

27,028(23,274)

27,028(23,274)

5,269,919,537
5,301,874,129
312,703,180
8,631,628

3,549,075,284
3,475,980,850
210,533,111
6,367,776

62,022,127(58,557,677)(114,362)
4,356

62,022,127(58,557,677)(114,362)
4,356

362,745,189
360,774,566

177,647,413
174,918,507(278,870,807)
278,905,652(278,870,807)
278,905,652

/

/

/

Total

$

3,169,532)

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of AccountingStandards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.24) and others are excluded from theabove table.

(b) Currency-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2008

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtTotal¥

34,73735,365¥——

Unrealized
gains (losses)

Fair value

¥

(2)
2

¥

(2)
2

21,465,777

16,301,664(165,695)

209,037

23,317,703
17,546,250

162,928
2,642,584

1,139,294(999,982)

1,139,294(999,982)

12,097,577
13,072,365

7,102,086
8,005,802(1,213,748)
1,468,598(337,961)
748,091

/

/

/

¥

758,480

159

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen

Contract value
Total
Over one year

As of March 31, 2007

Listed:Futures:
Sold
Bought¥Over-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtTotal

20,66925,809¥——Unrealized
gains (losses)

Fair value

¥

(3)
6

¥

(3)
6

18,470,599

12,926,748

67,792

379,483

30,792,179
23,736,388

1,506,140
963,144(299,672)
180,585(299,672)
180,585

13,001,144
15,283,200

7,570,275
9,759,149(1,267,892)
1,120,801(351,281)
354,733

/

/

/

¥

263,850

Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2008

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtTotal$

346,684
352,949$——

Unrealized
gains (losses)

Fair value

$

(24)
25

$

(24)
25

214,229,314

162,691,265(1,653,646)

2,086,207

232,711,609
175,112,282

1,626,034
26,373,095

11,370,205(9,979,866)

11,370,205(9,979,866)

120,734,305
130,462,730

70,879,109
79,898,227(12,113,263)
14,656,674(3,372,871)
7,465,988///$ 7,569,663

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. The following transactions are excluded from the above table:•Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards
for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25) and others.
•Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the
consolidated balance sheets.
•Transactions denominated in foreign currencies which are eliminated in consolidation.

160

(c) Stock-Related Transactions
Millions of yen

2008

2007

Contract value
As of March 31,

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtOther:
Sold
Bought
Total

Total

¥ 406,910
25,112Contract valueOver
one year¥

Fair
Unrealized
value gains (losses)— ¥—(238) ¥
180

Over
one year

Total(238)) ¥ 317,565
180
24,975¥

Fair
Unrealized
value gains (losses)— ¥—(3,488) ¥(10)(3,488)(10)

104,667
214,655——(1,147)
1,611

303
(835)

47,71545,025

—
1,190

(559)
540

220
(350)

1,118,389
886,851

516,414442,317(141,432)
78,042(65,421)30,789997,948
971,469

398,456
371,788(100,747)
100,144(55,733)
62,461

28,500362,581

28,500354,426(4,602)
46,977(4,602)
46,9774,300
101,370

4,300
100,878

(849)
1,791

(849)
1,791

/

/

7,153

/

/

/ ¥

/ ¥

4,041

Thousands of U.S. dollars

2008
Contract value
As of March 31,

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Over
one year

Total$4,060,984
250,626— $—(2,383) $1,806(2,383)
1,806——(11,450)
16,0793,031(8,340)11,161,568 5,153,840 (1,411,507)
8,850,813 4,414,346
778,867(652,906)
307,277

284,431284,4313,618,579 3,537,194(45,930)
468,838

1,044,581
2,142,365

/

$

Fair
Unrealized
value gains (losses)/(45,930)
468,838/ $ 71,393

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.

161

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions
Millions of yen

2008

2007

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

¥ 1,666,812
1,519,789

Contract valueOver
one year¥

Fair Unrealized
value gains (losses)——¥ (5,239)
5,636

35,24961,837

—
—

(106)
224

20
(19)

331,990
341,449

—
5,990

(586)
350

/

/

/

Total

¥ (5,239) ¥ 458,455
5,636
891,068¥Over
one year¥

Fair Unrealized
value gains (losses)——¥ 1,471(1,263)¥ 1,471(1,263)445,036
136,864

765
—

(180)
156

48
(38)

209
(397)

318,435
299,427

12,00014,711

(708)
823

(70)
253

210

/

/

/

¥

Thousands of U.S. dollars

2008
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

$16,634,860
15,167,556

Over
one year$

Fair
Unrealized
value gains (losses)——$(52,292)
56,253$(52,292)
56,253351,794
617,142——(1,065)
2,243

204
(190)

3,313,283
3,407,683—
59,789(5,856)
3,500

2,092
(3,968)///$ 2,099

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.

162

400

(e) Commodity-Related Transactions
Millions of yen

2008

2007

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

¥

Contract valueOver
one year

Fair
Unrealized
value gains (losses)

13,605 ¥15,3692,131 ¥
2,962

(1,435) ¥ (1,435)
1,581
1,581

—
—

—
—

—
—

545,476
520,642

387,170
358,760

/

/

Total

Over
one year

Fair
Unrealized
value gains (losses)¥ 17,008 ¥18,271

1,919 ¥
1,633

27
114

¥

27
114

—
—

45,531
4,007

—
—

(96)
112

(96)
112

(173,221)
200,880(173,221)
200,880

544,304
546,535

397,233
393,256(129,352)
145,473(129,352)
145,473/¥ 27,804///¥ 16,278

Thousands of U.S. dollars

2008
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

Over
one year

Fair
Unrealized
value gains (losses)$ 135,788 $ 21,277 $ (14,331) $ (14,331)
153,383
29,566
15,785
15,785
—
—

—
—

—
—

—
—

5,443,876 3,863,973 (1,728,760) (1,728,760)
5,196,034 3,580,446 2,004,800 2,004,800///$277,494

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.
3. Commodities include oil, copper, aluminum and others.

163

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2008

Over-the-Counter:
Credit Derivatives
Sold
Bought¥ 12,933,582
14,896,086¥ 12,672,764
14,653,797

/

/

Total

Unrealized
gains (losses)

Fair value¥(387,287)
329,068¥(387,287)
329,068/¥(58,218)
Millions of yen

Contract value
Total
Over one year

As of March 31, 2007

Over-the-Counter:
Credit Derivatives
Sold
Bought¥5,470,755
7,247,444

Total

¥

5,327,411
7,095,001/¥

Fair value

Unrealized
gains (losses)

38,221(46,936)¥ 38,221(46,936)//¥(8,714)

Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2008

Over-the-Counter:
Credit Derivatives
Sold
BoughtFair value

Unrealized
gains (losses)$ (3,865,145)
3,284,121$ 129,077,666
148,663,540$ 126,474,700
146,245,486$ (3,865,145)
3,284,121

/

/

/

Total

$

(581,024)

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.
3. “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

(g) Weather Derivative Transactions
Millions of yen

2008

2007

Contract value
As of March 31,

Over-the-Counter:
Weather Derivatives:
Sold
Bought
Total

Total

¥

146
124

Contract valueOver
one year

¥

/

—
—
/

Fair Unrealized
value gains (losses)

¥

(1)
16

¥

(1))
16

/

¥

15

Total

¥

81
68
/

Over
one year¥——/

Fair Unrealized
value gains (losses)

¥

(1)
9

¥

(1)
9

/

¥

8

Thousands of U.S. dollars

2008
Contract value
As of March 31,

Over-the-Counter:
Weather Derivatives:
Sold
Bought
Total

Total

$ 1,457
1,239
/

Over
one year$

Fair
Unrealized
value gains (losses)——$ (18)
169$ (18)
169

/

/

$ 151

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Transactions are related to temperature, rainfall and others.

164Non-Consolidated Financial Statements ofMizuho Financial Group, Inc. and Four
Subsidiaries[Under Japanese GAAP]
Mizuho Financial Group, Inc.
Non-Consolidated Balance Sheets

166

Non-Consolidated Statements of Income

167

Mizuho Corporate Bank, Ltd.
Non-Consolidated Balance Sheets

168

Non-Consolidated Statements of Income

170

Mizuho Bank, Ltd.
Non-Consolidated Balance Sheets

171

Non-Consolidated Statements of Income

173

Mizuho Trust & Banking Co., Ltd.
Non-Consolidated Balance Sheets

174

Non-Consolidated Statements of Income

176

Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheets

177

Non-Consolidated Statements of Income

180

165

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheets
Millions of yen
2008

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
Short-term Bonds
Other Current Liabilities
Non-Current Liabilities
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
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Total Net Assets
Total Liabilities and Net Assets¥

176,094
10,440165,653
4,482,828
1,283
3,972
4,471,185
6,385

2007

258,349
2,726
255,622
4,505,687
952
4,199
4,496,431
4,104$

1,757,432
104,201
1,653,231
44,738,803
12,81439,65044,622,610
63,729¥ 4,658,922¥ 4,764,036$ 46,496,235¥ 1,142,276
1,000,000
140,000
2,276
3,800

¥ 1,585,093
1,380,000
203,000
2,093
2,538

$ 11,399,967
9,980,040
1,397,206
22,72137,925

1,146,076

1,587,631

11,437,892

3,512,873
1,540,965
385,241
385,241
1,589,114
4,350
1,584,764
1,584,764(2,447)(27)(27)

3,176,394
1,540,965
385,241
385,241
1,252,226
4,350
1,247,876
1,247,876(2,037)9
935,058,618
15,378,892
3,844,726
3,844,726
15,859,428
43,413
15,816,015
15,816,015(24,428)
(275)
(275)

3,512,845

3,176,404

35,058,343¥ 4,658,922¥ 4,764,036$ 46,496,235

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

166¥

Thousands of
U.S. dollars
2008Non-Consolidated Statements of Income
Millions of yen
2008

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries and Affiliates

2007

806,519
770,832
35,686¥ 1,250,099
1,220,997
29,102

Operating Expenses
General and Administrative Expenses

19,364
19,364

19,205
19,205

193,254
193,254

Operating Profits
Non-Operating Income
Non-Operating Expenses

787,155
38,922
15,1951,230,893
25,024
16,2807,855,840
388,452
151,653

Income before Income Taxes
Income Taxes:
Current
Deferred

810,882

1,239,637

8,092,639

11
(131)

5
(78)

115
(1,316)¥ 1811,002¥ 1,239,710

Net Income¥

Thousands of
U.S. dollars
2008

$

$

8,049,094
7,692,943
356,151

8,093,840

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

167

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Corporate Bank, Ltd.

Non-Consolidated Balance Sheets
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
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Deferred Debenture Charges
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets
Liabilities and Net Assets
Liabilities
Deposits
Debentures
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Possible Losses on Future Sales of Loans
Reserve for Contingencies
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities

168

2007

Thousands of
U.S. dollars
2008¥ 1,393,670
272,402
1,856,338
2,832,786
176,024
3,895,842
2,026
17,494,803
28,439,602
586,120
9,955,263
122,293
27,19056,342
1,998
36,76282,00567,51814,487—140,262
4,532,620(216,809)(1,491)¥ 2,029,748
290,596
1,742,202
1,614,829
204,9622,559,277
2,362
19,457,137
28,734,856
752,828
4,813,527
122,416
28,57856,342855
36,63967,49754,176
13,3200—4,072,678(353,347)(100)$ 13,908,884
2,718,588
18,526,331
28,271,326
1,756,728
38,880,664
20,226
174,598,837
283,828,373
5,849,509
99,353,926
1,220,495
271,360
562,304
19,941
366,890
818,422673,838
144,583—
1,399,827
45,235,735(2,163,769)(14,883)¥ 71,563,763¥ 66,111,474$ 714,209,219¥ 27,635,452
2,199,100
8,968,569
5,598,199
2,604,496
3,170,152
3,747,304
241,119490,000
1,426,971
8,327,179
3,570
2,459
50,895
1,505—
27,1404,532,620¥ 26,627,263
3,203,020
8,811,369
6,072,047
1,233,785
1,922,795
4,424,227
356,761
402,600
738,809
4,531,077
2,751
2,381
—
1,376
180,984
27,475
4,072,678$ 275,802,924
21,947,106
89,506,686
55,870,252
25,992,97831,638,252
37,398,247
2,406,384
4,890,220
14,241,237
83,105,586
35,63624,547507,941
15,023—
270,859
45,235,735

69,026,738

62,611,407

688,889,611

Millions of yen
2008Non-Consolidated Balance Sheets
Millions of yen
2008

As of March 31,

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 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

2,103,229
1,070,965
330,334
330,334
701,930
70,700631,229
631,229433,794
346,058
50,00637,7292007

Thousands of
U.S. dollars
2008

2,391,510
1,070,965
330,334
330,334
990,21030,700959,510959,510
1,108,556
1,135,629(65,292)
38,21820,990,317
10,688,273
3,296,749
3,296,749
7,005,295
705,598
6,299,697
6,299,697
4,329,291
3,453,680
499,069
376,5432,537,024

3,500,066

25,319,608¥ 71,563,763¥ 66,111,474$ 714,209,219

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

169

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Corporate Bank, Ltd.

Non-Consolidated Statements of Income
2007

Thousands of
U.S. dollars
2008¥ 1,423,492
742,022467,918
157,307248,743
204,379
387,126¥ 1,282,775
646,336
421,362
175,401
96,96165,061
317,081$ 14,206,511
7,405,418
4,669,848
1,569,940
2,482,473
2,039,719
3,863,538

2,421,050

1,937,281

24,162,181

1,129,888
518,447
20,91437,4903,467
256,718
239,138
764,492

976,269
501,579
32,032
39,836
4,160
52,062
237,866
183,571

11,276,334
5,174,128
208,728
374,161
34,6072,562,060
2,386,608
7,629,663

2,431,196

1,493,767

24,263,434(10,145)443,513(101,254)

38
78,581(88,764)38
120,343
323,131379
784,243(885,876)

Millions of yen
2008

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
Debentures
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¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

170

¥

$

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheets
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
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Deferred Debenture Charges
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets
Liabilities and Net Assets
Liabilities
Deposits
Debentures
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Frequent Users Services
Reserve for Reimbursement of Deposits
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities

2007

Thousands of
U.S. dollars
2008¥ 3,272,160
4,668,200
3,131,603
2,333,582
1,179,748
1,500
15,151,302
33,745,801
120,477
2,701,901
604,504
217,780
321,415
3,464
61,844130,249
104,920
25,329—372,563
1,157,505(347,614)(84,022)¥ 2,838,104
4,340,000
2,634,880
2,313,455
839,706686
15,226,739
34,065,059
131,895
2,530,250
603,955
207,937
324,276
1,921
69,819
119,882
91,782
28,10021
332,168
1,322,242(340,828)(83,430)$ 32,656,296
46,588,822
31,253,529
23,289,244
11,773,941
14,976151,210,606
336,784,450
1,202,367
26,965,085
6,032,983
2,173,456
3,207,737
34,576617,214
1,299,894
1,047,108
252,786—
3,718,199
11,551,951(3,469,208)(838,546)¥ 68,139,465¥ 66,874,790$ 680,034,589¥ 56,092,954
971,953
1,433,100
495,835
1,375,995
280,431
1,115,189
13,706
662,500
2,617,813
9,187
1,974
8,314
8,739
77,956
1,157,505¥ 54,347,498
1,564,366
1,509,400
2,999
1,499,943
231,277
1,177,230
13,703
522,500
2,509,448
7,644
1,676
3,773
—
79,797
1,322,242$ 559,809,921
9,700,133
14,302,395
4,948,459
13,732,487
2,798,721
11,129,640
136,796
6,611,776
26,125,879
91,696
19,702
82,981
87,216
778,007
11,551,951

66,323,157

64,793,501

661,907,760

Millions of yen
2008

171

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheets
Millions of yen
2008

As of March 31,

Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Net Deferred Hedge Losses, net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

1,774,352
650,000
762,345762,345
362,006
362,006
362,006
41,955(46,300)(21,482)
109,738

1,776,171
650,000
762,345762,345
363,825
363,825
363,825
305,118
251,748(59,027)
112,397

17,708,111
6,487,026
7,608,242
7,608,242
3,612,843
3,612,843
3,612,843
418,718(462,080)(214,393)
1,095,191

1,816,308

2,081,289

18,126,829¥ 68,139,465¥ 66,874,790$ 680,034,589

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

172

2007

Thousands of
U.S. dollars
2008Non-Consolidated Statements of Income
Millions of yen
2008

For the Fiscal Years ended March 31,

Thousands of
U.S. dollars
2008

2007

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income¥

Total Income

892,327
621,046
165,500
238,378
122,597
67,258144,854$

8,905,466
6,198,068
1,651,699
2,379,022
1,223,528
671,239
1,445,653

1,386,069

14,624,908

285,427
165,625
3,068
49,343—42,956558,913289,746

153,538
84,0992,545
45,6301,187
35,717536,875
328,838

2,848,582
1,652,946
30,619492,449—
428,707
5,577,983
2,891,686

1,226,388

1,101,788

12,239,407

239,027

284,280

2,385,501

502
42,997500
77,4905,012
429,117

Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income

747,368
539,736
137,793262,325
36,919167,984
171,470

1,465,415

Expenses
Interest Expenses
Deposits
Debentures
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses¥¥

195,527¥

206,289$

1,951,372

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

173

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheets
Millions of yen
2008

As of March 31,

AssetsCash and Due from Banks
Call Loans
Gurantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
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
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets
Liabilities and Net Assets
Liabilities
Deposits
Call Money
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Employee Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Contingencies in Trust Transactions
Reserve for Reimbursement of Deposits
Acceptances and Guarantees
Total Liabilities

174¥

307,347
10,00051,864335,964
40,465
1,674,882
3,481,359
1,428
204,768
31,953
13,763
14,442
3,746
17,701
17,406294
37,987
38,673(24,630)—¥

Thousands of
U.S. dollars
2008

2007

225,832
60,000—265,039
26,1701,719,550
4,026,203
307
192,993
32,781
13,825
14,576
4,379
17,227
16,932294
18,804
48,460(46,957)(7)$

3,067,338
99,800517,6113,352,939
403,845
16,715,395
34,744,106
14,2552,043,595
318,898
137,365
144,142
37,391
176,658
173,715
2,943
379,117385,965(245,814)—¥ 6,209,765¥ 6,586,407$ 61,973,708¥ 3,431,437
580,664442,549
32,30020,00012
162,200
952,087
67,513
1,901
10,852423
12,590875
38,673¥ 3,433,751
597,443
493,982
25,079257,932
15
152,200
996,495
48,8491,505
10,323322
11,670—48,460$ 34,245,879
5,795,060
4,416,666
322,356
199,601124
1,618,762
9,501,867
673,790
18,979108,310
4,231
125,654
8,742
385,965

5,754,083

6,078,031

57,425,986

Non-Consolidated Balance Sheets
Millions of yen
2008

As of March 31,

Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Net Deferred Hedge Gains, net of Taxes

384,478
247,231
15,367
15,367122,005
6,514
115,491
115,491(126)
71,20366,803
4,399

Total Net Assets
Total Liabilities and Net Assets

2007

Thousands of
U.S. dollars
2008

365,776
247,231
15,367
15,367103,287
4,904
98,383
98,383(110)
142,599
141,816782

3,837,111
2,467,384
153,367
153,367
1,217,621
65,011
1,152,610
1,152,610(1,261)
710,611
666,705
43,906455,681508,375

4,547,722¥ 6,209,765¥ 6,586,407$ 61,973,708

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

175

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Statements of Income
Millions of yen
2008

For the Fiscal Years ended March 31,

2007

Thousands of
U.S. dollars
2008

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¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

176

63,003
100,959
61,996
29,64557,886
1,108
15,05628,713¥

66,134
83,27855,79323,756
63,154893
6,144
23,304$

628,782
1,007,581
618,725
295,864
577,709
11,067150,268
286,560

266,729

242,9092,661,967

47,467
20,14415,012—
2,862
90,563
10,061

31,085
12,251
14,545
6
98
91,83324,753473,728
201,047
149,826—
28,564
903,827
100,417

165,967

162,322

1,656,362

100,761

80,586

1,005,605

20
13,97525
11,743

207
139,480

86,764¥

68,817$865,918

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheets
As of March 31,

AssetsCurrent Assets
Cash and Deposits
Cash Segregated as Deposits
Trading Assets
Trading Securities and Others
Loan Assets
Derivative Transactions
Operating Investment Securities
Operating Loan Receivables
Margin Transaction Assets
Loans Secured by Securities
Payments for Subscription
Guarantee Deposits
Securities: Fail to Deliver
Variation Margin Paid
Short-term Loan
Accrued Income
Tax Refundable
Short-term Deferred Tax Assets
OthersAllowance for Doubtful Accounts
Fixed Assets
Tangible Assets
Buildings
Furniture and Fixtures
Intangible Assets
Goodwill
Software
OthersInvestments
Investment Securities
Investment in Affiliates
Long-term Loan to Affiliates
Long-term Guarantee Deposits
Long-term Prepaid Expenses
Long-term Deferred Tax Assets
OthersTotal Assets

2007

Thousands of
U.S. dollars
2008¥ 12,476,240
39,462
16,915
7,543,860
7,002,202
40,279501,379
33,4332,012
1,974
4,657,424
820
99,606—
8,644
27,915
22,4605,949
11,4974,267(4)218,791
10,435
2,846
7,588
12,370—12,32049
195,986
7,260
148,781
8,970
6,197
1,397
22,018
1,361¥ 10,278,106
38,66518,198
5,671,001
5,485,135
8,421
177,443
40,091500
870
4,422,012
329
54,738991
2,674—
19,976
1,704
3,951
2,405
(5)
258,008
6,182
2,724
3,458
8,314
60
8,202
52
243,51072,042132,035
23,0003,660
511,544
1,221$ 124,513,381
393,836
168,81375,288,033
69,882,260
401,987
5,003,786
333,666
20,085
19,70546,481,287
8,192
994,080—
86,273
278,595
224,154
59,375
114,743
42,584(40)
2,183,546
104,143
28,40975,734
123,454—
122,961493
1,955,949
72,457
1,484,848
89,521
61,854
13,947219,741
13,581¥ 12,695,032¥ 10,536,114$ 126,696,927

Millions of yen
2008

177

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheets
As of March 31,

Liabilities and Net Assets
Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivative Transactions
Payable - Unsettled Trades
Margin Transaction Liabilities
Borrowings Secured by Securities
Deposits Received
Cash Collateral Received from Customers
Securities: Fail to Receive
Short-term Borrowings
Commercial Paper
Short-term Bonds and Notes
Advance Receipt
Accrued Expenses
Reserve for Bonuses
OthersFixed Liabilities
Bonds and Notes
Long-term Borrowings
Long-term Borrowings from Affiliates
Reserve for Retirement Benefits
Reserve for Retirement Benefits for Directors and Operating Officers
Statutory Reserves
Securities Transaction Liability Reserve
Futures Transaction Liability Reserve
Total Liabilities

178

2007

Thousands of
U.S. dollars
2008¥ 11,561,216
4,155,816
3,655,375
500,440
197,253
7,771
4,118,380
14,97434,78962,658,236
287,900
65,70011
16,6983,243
433
805,636
331,100
244,878
222,000
7,189
468
2,027
1,922
104

¥ 9,513,310
4,328,457
4,139,223
189,233
132,8458,716
2,834,477
18,6899,247
989
1,754,276
390,200
11,200765
16,0696,682
694
617,149
302,800
190,560
116,400
6,938
451
2,027
1,922
104

$ 115,381,398
41,475,210
36,480,791
4,994,419
1,968,596
77,561
41,101,605
149,444
347,19662
26,529,308
2,873,253
655,689
120
166,656
32,372
4,326
8,040,286
3,304,391
2,443,901
2,215,569
71,752
4,673
20,23819,191
1,047

12,368,880

10,132,488

123,441,922

Millions of yen
2008Non-Consolidated Balance Sheets
Millions of yen
2008

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid-in Capital
Retained Earnings
Legal Earned Reserve
Voluntary Reserve
Reserve for Special Depreciation
Other Reserve
Unappropriated Retained Earnings
Revaluation/Translation Difference
Net Unrealized Gains on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes

325,742
395,146
325,288
325,288(394,692)
870(395,562)—
1,500(397,062)
409
409
—

Total Net Assets
Total Liabilities and Net Assets

2007

Thousands of
U.S. dollars
2008

377,605
195,146
125,288
125,288
57,171
870
56,30012
1,500
54,78826,02029,174(3,154)

3,250,920
3,943,573
3,246,393
3,246,393(3,939,046)
8,686(3,947,732)—
14,970(3,962,702)
4,085
4,085
—

326,151

403,626

3,255,005¥ 12,695,032¥ 10,536,114$ 126,696,927

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

179

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Statements of Income
Millions of yen
2008

For the Fiscal Years ended March 31,

Operating Income
Commission Income
Trading Income
Net Gains on Operating Investment Securities
Interest and Dividend Income
Less: Interest Expense

¥

2007

93,91659,813(26,393)
5,626
54,86944,200¥ 135,932
72,221
34,967555
28,18820,631

49,716

115,300

496,168

79,96821,65728,013
15,122
5,405
5,486
60
2,012
2,209

71,771
18,07130,298
10,634
5,239
4,047
60
1,587
1,831

798,092
216,139
279,579
150,926
53,95154,754599
20,08922,055

Operating Profits(30,252)

43,529(301,924)

Non-Operating Income
Non-Operating Expenses

10,788
6,169

4,817
3,079

107,670
61,571

Ordinary Profits(25,633)

45,267(255,825)

Extraordinary Gains
Extraordinary Losses

18,452
439,0749
768

184,152
4,381,981(446,256)

44,508(4,453,654)

978(9,373)

12,892
3,780

9,761(93,550)

27,835$ (4,369,865)

Net Operating Income
Selling, General and Administrative Expenses
Commission and Other Transaction-related Expenses
Compensation and Benefits
Occupancy
Data Processing and Office Supplies
Depreciation
Amortization of Goodwill
Taxes and Dues Other than Income Taxes
OthersProfit before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Net Income¥ (437,860)

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥100.20=US$1.00, the foreign exchange rate on March 31, 2008, has been used for translation.

180

Thousands of
U.S. dollars
2008

¥

$

937,287
596,942(263,403)
56,148547,600
441,119

Status of Capital Adequacy
Capital Adequacy Ratio Highlights

182

Status of Consolidated Capital Adequacyof Mizuho Financial Group, Inc.

184

Scope of Consolidation

184

Consolidated Capital Adequacy Ratio

186

Risk-Based Capital

188

Credit Risk

199

Methods for Credit Risk Mitigation

211

Counterparty Risk in Derivatives Transactionsand Long-Settlement Transactions

213

Securitization Exposure214

Market Risk

223

Operational Risk

223

Equity Exposure

223

181

Status of Capital Adequacy

Capital Adequacy Ratio Highlights

The new capital adequacy framework (“Basel II”) that was under consideration by the Basel Committee on Banking Supervisionbecame effective in the fiscal year ended March 31, 2007. Substantial changes have been made to the method for calculating
capital adequacy ratios compared to the previous framework, such as the refinements in calculating credit risk-weighted assets
and inclusion of operational risk.
In Japan, disclosure of information is required for the items set forth in “The Matters Separately Prescribed by the Financial
Services Agency Regarding Capital Adequacy Conditions, etc., pursuant to Article 19-2, Paragraph 1, Item 5, Subsection 4, etc. of
the Ordinance for Enforcement of Banking Law (Ministry of Finance Ordinance Number 10 of 1982)” (FSA Notice Number 15 of2007).

Capital Adequacy Ratio Highlights
Mizuho Financial Group (Consolidated)
Billions of yen

As of March 31,

2008 (Basel II basis)

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital

2007 (Basel II basis)11.70%
7.40%¥

4,880.1
3,221.8
393.6

Total Risk-based Capital¥

7,708.3

Risk-weighted Assets¥ 65,872.8(Reference)
2008 (Basel I basis)12.48%
6.96%6.17
5.¥4,933.5
4,092.6
184.7¥

8,841.3

10.84%
6.29%¥

4,946.4
3,724.5
141.0¥

8,530.0¥ 70,795.4¥ 78,626.3

2007 (Basel II basis)(Reference)
2008 (Basel I basis)(Reference)
Mizuho Corporate Bank (Consolidated)
Billions of yen

As of March 31,

2008 (Basel II basis)

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital

12.17%
8.48%¥

2,982.4
1,620.5
324.1

Total Risk-based Capital¥

4,278.8

Risk-weighted Assets¥ 35,147.3

14.01%12.
8.56%¥

3,256.8
2,252.1
179.4¥

5,329.5

11.19%
7.15%¥

3,007.5
1,814.4
115.9¥

4,705.9¥ 38,024.4¥ 42,043.6

2008 (Basel II basis)2007 (Basel II basis)(Reference)
2008 (Basel I basis)13.99%
7.95%

15.22%
8.20%

12.18%
6.47%

Mizuho Corporate Bank (Non-Consolidated)
Billions of yen

As of March 31,

Non-consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital

182¥

2,505.9
2,082.3
177.1

Total Risk-based Capital¥

4,411.1

Risk-weighted Assets¥ 31,514.6¥

2,922.8
2,564.4
61.1¥

5,426.2¥ 35,631.2¥

2,539.5
2,261.5
22.5¥

4,778.5¥ 39,203.1

Mizuho Bank (Consolidated)
Billions of yen

As of March 31,

2008 (Basel II basis)2007 (Basel II basis)(Reference)
2008 (Basel I basis)11.97%
7.28%

11.74%
57.11%

10.56%
6.02%

Consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital¥

2,032.4
1,378.6
71.3

Total Risk-based Capital¥

3,339.6

Risk-weighted Assets¥ 27,888.8(Reference) Consolidated Capital Adequacy Ratio (BIS Standard)¥

2,067.7
1,385.6
40.5¥

3,412.8¥ 29,053.6

11.87%¥

2,060.7
1,591.3
35.7¥

3,616.3¥ 34,228.4

11.92%

10.94%

2008 (Basel II basis)2007 (Basel II basis)(Reference)
2008 (Basel I basis)11.70%
7.00%

12.12%
7.39%

10.39%
5.77%

Mizuho Bank (Non-Consolidated)
Billions of yen

As of March 31,

Non-consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital¥

1,887.1
1,377.9
111.3¥

1,965.3
1,324.2
66.3¥

1,954.0
1,588.8
27.0

Total Risk-based Capital¥

3,153.8¥

3,223.1¥

3,515.9

Risk-weighted Assets¥ 26,935.8(Reference) Non-consolidated Capital Adequacy Ratio (BIS Standard)

11.63%¥ 26,586.2
11.83%¥ 33,836.7
10.72%

183

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

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
None for the fiscal years ended March 31, 2008 and 2007.
(b) Number of Consolidated Subsidiaries
As of March 31,

2008

2007

Consolidated Subsidiaries

146

133

Our major consolidated subsidiaries are Mizuho Corporate Bank Ltd., Mizuho Bank Ltd., Mizuho Trust and Banking Co., Ltd. andMizuho Securities Co., Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2008:
Proportion of
VotingInterest (%)

Name

Main Business

Domestic
Mizuho Corporate Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Mizuho Securities Co., Ltd.
Mizuho Investors Securities Co., Ltd.
Trust & Custody Services Bank, Ltd.
Mizuho Asset Management Co., Ltd.
Mizuho Research Institute Ltd.
Mizuho Information & Research Institute Inc.
Mizuho Financial Strategy Co., Ltd.
Mizuho Private Wealth Management Co., Ltd.
Mizuho Factors, Limited
Mizuho Credit Guarantee Co., Ltd.
Mizuho Capital Co., Ltd.
Defined Contribution Plan Services Co., Ltd.

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

Banking
Banking
Trust and banking
Securities
Securities
Trust and banking
Investment management
Research and consulting
Information technology
Consulting
Consulting
Factoring
Credit guarantee
Venture capital
Pension plan-related business100.0%
100.0
75.1
89.8
66.6
54.0
98.7
98.4
91.5
100.0
100.0
100.0
100.0
50.0
60.0

100.0%
100.0
70.0
89.8
66.9
54.0
98.7
98.6
91.5
100.0
100.0
100.0
100.0
50.0
60.0

Overseas
Mizuho Bank (Switzerland) Ltd.
Mizuho Capital Markets Corporation
Mizuho Corporate Bank (Canada)
Mizuho Corporate Bank (China), Ltd.
Mizuho Corporate Bank (Germany) Aktiengesellschaft
Mizuho Corporate Bank (USA)Mizuho Corporate Bank Nederland N.V.
Mizuho International plc
Mizuho Securities USA Inc.
Mizuho Trust & Banking (Luxembourg) S.A.
Mizuho Trust & Banking Co. (USA)PT. Bank Mizuho Indonesia

Switzerland
U.S.A.
CanadaChina
Germany
U.S.A.
Netherlands
U.K.
U.S.A.
Luxembourg
U.S.A.
Indonesia

Trust and banking
Derivatives
Banking
Banking
Banking and securities
Banking
Banking and securities
Securities and banking
Securities
Trust and banking
Trust and banking
Banking100.0%
100.0
100.0
100.0
83.3
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0%
100.0
100.0
100.0
83.3
100.0
100.0
100.0
100.0
100.0
100.0
99.0

Note: Mizuho Trust & Banking and Mizuho Investors Securities are listed on the Tokyo Stock Exchange.

184

Proportion of
Ownership
Interest (%)

Country ofOrganization

(c) Corporations Providing Financial Services for which Article 9 of the Consolidated Capital Ratio Notice isApplicable
None for the fiscal years ended March 31, 2008 and 2007.
(d) Related Companies for which Deductions Set Forth in Article 8, Paragraph 1, Item 2, Subsections 1 to 3 of theConsolidated Capital Adequacy Ratio Notice are Applicable
None for the fiscal years ended March 31, 2008 and 2007.
(e) Companies described in Article 52-23, Paragraph 1, Item 10 of the Banking Law that are Mainly Engaged in
Businesses as Described in Subsection 1 of Such Item or Companies Set Forth in Item 11 of Such Paragraph,
but that are not in the Holding Company’s Corporate Group
None for the fiscal years ended March 31, 2008 and 2007.
(f) Restrictions on Transfer of Funds or Capital within the Holding Company's Corporate Group
None for the fiscal years ended March 31, 2008 and 2007.

185

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Consolidated Capital Adequacy Ratio
2. Summary Table of Consolidated Capital Adequacy Ratio (BIS Standard)%, Billions of yen

As of March 31,

2008

Tier 1 Capital
Common Stock and Preferred Stock
Non-cumulative Perpetual Preferred Stock
Advance Payment for New Shares
Capital Surplus
Retained Earnings
Less: Treasury Stock
Advance Payment for Treasury Stock
Less: Dividends (Estimate), etc
Less: Unrealized Losses on Other Securities
Foreign Currency Translation Adjustments
Rights to Acquire New Shares
Minority Interest in Consolidated Subsidiaries
Preferred Securities Issued by Overseas SPCs
Less: Goodwill Equivalent
Less: Intangible Fixed Assets Recognized as a Result of a Merger
Less: Capital Increase due to Securitization Transactions
Less: 50% of Excess of Expected Losses relative to Eligible Reserves
by Banks Adopting Internal Ratings-based Approach
Total of Tier 1 Capital before Deduction of Deferred Tax Assets (Total of Above Items)
Deduction for Deferred Tax Assets¥¥

1,540.9——411.1
1,439.9
32.3
—
101.2
—
(38.9)—
1,726.1
1,504.9
—
—
12.1

54.9
4,880.1——
4,933.5—

4,880.1
653.5
13.39%

4,933.5
608.4
12.33%

289.7
113.6
7.9
—
2,810.4
662.0
2,148.3

1,100.8
116.0
7.3
124.1
2,744.1
785.5
1,958.6(C)

3,221.8
3,221.8

4,092.6
4,092.6

Tier 3 Capital
Short-term Subordinated Debt
Tier 3 Capital Included as Qualifying Capital

(D)

—
—

—
—

Deductions for Total Risk-based Capital

(E)

393.6

184.7

Total Risk-based Capital

(F)

Total
Preferred Securities with a Step-up Interest Rate Provision
Ratio to Tier 1 = (B) / (A) X 100

(A)
(B)

Tier 2 Capital
45% of Unrealized Gains on Other Securities
45% of Revaluation Reserve for Land
General Reserve for Possible Losses on Loans
Excess of Eligible Reserves relative to Expected Losses by Banks Adopting Internal Ratings-based Approach
Debt Capital, etc.
Perpetual Subordinated Debt and Other Debt Capital
Dated Subordinated Debt and Redeemable Preferred Stock
Total
Tier 2 Capital Included as Qualifying Capital(A) + (C) + (D) - (E)Risk-weighted Assets
Credit Risk Assets
On-balance-sheet Items
Off-balance-sheet Items
Market Risk Equivalent Assets [(I) / 8%](Reference) Market Risk Equivalent
Operational Risk Equivalent Assets [(K) / 8%](Reference) Operational Risk Equivalent
Adjusted Floor Amount
Total

186

1,540.9——411.0
1,475.7
2.5
—
133.8
—
(78.3)—
1,733.4
1,539.7
—
—
11.3

2007

(G) + (H) + (J) + (L)(G)¥

7,708.3¥

8,841.3

(H)
(I)
(J)
(K)
(L)

60,183.8
48,988.0
11,195.8
2,052.9
164.2
3,636.0
290.8—

59,755.0
48,718.5
11,036.4
2,186.4
174.9
3,877.5
310.2
4,976.4(M)¥ 65,872.8¥ 70,795.4

Consolidated Capital Adequacy Ratio (BIS Standard) = (F) / (M) X 100

11.70%

12.48%

Tier 1 Capital Ratio = (A) / (M) X 100

7.40%

6.96%

Notes: 1. The above are based on the BIS standard applied on a consolidated basis following the Standards for Determining the Status of Capital
Adequacy in consideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking Law Article 5225 (FSA Notice No.20 of 2006 (the “Notice”)).
2. Because we cannot break down its common stock and preferred stock according to classes of stock, no value for non-cumulative
perpetual preferred stock is separately stated from capital.
3. In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with the certified
public accountant, on the basis of “Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy
ratio” (Industry Committee Report No.30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of theaccounting audit performed on our consolidated financial statements.
4. The amounts of net deferred tax assets as of March 31, 2008 and 2007 were ¥596.5 billion and ¥170.8 billion, respectively, and the
maximum amounts of deferred tax assets that can be recorded without diminishing the amount of Tier 1 capital for the purpose of
calculating capital adequacy ratios were ¥976.0 billion and ¥1.48 trillion, respectively.
5. The “adjusted floor amount” is the amount obtained by multiplying (i) 12.5 to (ii) the excess of the required capital under Basel I
multiplied by the rate prescribed in the Notice over the required capital under Basel II.
In the fiscal year ended March 31, 2007, because the amount derived by multiplying the required capital under Basel I by the rateprescribed in the Notice exceeded the required capital under Basel II, the excess was added to risk-weighted assets.

187

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Risk-Based Capital
3. Summary of Types of Capital Instruments(a) Summary of Preferred Securities
We have included each of the following preferred securities issued by our overseas special purpose companies and the various
preferred securities issued by the overseas special purpose companies of Mizuho Corporate Bank, Ltd. (Mizuho Preferred CapitalCompany L.L.C. and Mizuho JGB Investment L.L.C.), our consolidated subsidiary, as Tier 1 capital for the purposes of our consolidated capital adequacy ratios. Preferred securities issued by Mizuho Preferred Capital (Cayman) 5 Limited, Mizuho Preferred
Capital (Cayman) 6 Limited, Mizuho Preferred Capital (Cayman) 7 Limited, Mizuho Preferred Capital Company L.L.C. and Mizuho
JGB Investment L.L.C. were redeemed in full on June 30, 2008.
Preferred securities issued by SPCs of Mizuho Financial Group

188

IssuerMizuho Preferred Capital (Cayman) Limited (“MPC,” and thepreferred securities described below are referred to as the “MPC
Preferred Securities.”)Mizuho Preferred Capital (Cayman) 1 Limited (as “MPC1,” andthe preferred securities described below are referred to as the“MPC1 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Optionally redeemable on each dividend payment date falling in orafter June 2009 (subject to prior approval from regulatory
authorities)

Optionally redeemable on each dividend payment date falling in orafter June 2012 (subject to prior approval from regulatory
authorities)

Dividends

Floating dividend rate (No dividend rate step-up. As stated in“Dividend suspension events” below, dividend payments that aresuspended are non-cumulative.)

Floating dividend rate (No dividend rate step-up. As stated in“Dividend suspension events” below, dividend payments that aresuspended are non-cumulative.)

Dividend payment
date

Last business day of June in each year

Last business day of June in each year

Total amount issued¥176.0 billion¥171.0 billion

Issue date

March 15, 1999

February 14, 2002

Dividend suspension
eventsIf any of the following events arise, dividend payments are
suspended on a non-cumulative basis:(1) when Mizuho Financial Group issues to MPC a Loss
Absorption Certificate(1);(2) when dividends on Mizuho Financial Group's Preferred Stock(2)are suspended;(3) when Mizuho Financial Group issues to MPC a Distributable
Amounts Limitation Certificate(4) stating that there are no
Available Distributable Amounts(3); and(4) when the dividend payment date is not a Mandatory Dividend
Payment Date(5), and Mizuho Financial Group issues to MPC a
dividend instruction instructing it not to pay any dividends onsuch dividend payment date.

If any of the following events arise, dividend payments are
suspended on a non-cumulative basis:(1) when Mizuho Financial Group issues to MPC1 a Loss
Absorption Certificate(1);(2) when dividends on Mizuho Financial Group's Preferred Stock(2)are suspended;(3) when Mizuho Financial Group issues to MPC1 a Distributable
Amounts Limitation Certificate(4) stating that there are no
Available Distributable Amounts(3); and(4) when the dividend payment date is not a Mandatory Dividend
Payment Date(5), and Mizuho Financial Group issues to MPC1
a dividend instruction instructing it not to pay any dividends onsuch dividend payment date.

Mandatory dividend
event

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, full dividends must be paid on Parity
Preferred securities(6) in June of the calendar year in which such
fiscal year ends. However, it is subject to the following conditions:(1) no Loss Absorption Certificate(1) has been issued; (2) nopreferred stock dividend limitation has arisen with respect thereto(partial dividend payments are made to the extent applicable); and(3) no Distributable Amounts Limitation Certificate(4) has been
issued with respect thereto (partial dividends are paid to the extent
applicable).

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, full dividends must be paid on Parity
Preferred securities(6) in June of the calendar year in which such
fiscal year ends. However, it is subject to the following conditions:(1) no Loss Absorption Certificate(1) has been issued; (2) nopreferred stock dividend limitation has arisen with respect thereto(partial dividend payments are made to the extent applicable); and(3) no Distributable Amounts Limitation Certificate(4) has been
issued with respect thereto (partial dividends are paid to the extent
applicable).

Distributableamounts limitation

When Mizuho Financial Group issues a Distributable Amounts
Limitation Certificate(4) to MPC, dividends are limited to the
Available Distributable Amounts(3).

When Mizuho Financial Group issues a Distributable Amounts
Limitation Certificate(4) to MPC1, dividends are limited to the
Available Distributable Amounts(3).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(2) are
reduced, dividends on Parity Preferred Securities(6) are also reduced
by an equal percentage.

When dividends on Mizuho Financial Group's Preferred Stock(2) are
reduced, dividends on Parity Preferred Securities(6) are also reduced
by an equal percentage.

Claims on residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(2)Same priority as Mizuho Financial Group's Preferred Stock(2)IssuerMizuho Preferred Capital (Cayman) 5
Limited (“MPC5,” and the preferred
securities described below are referred toas the “MPC5 Preferred Securities.”)Mizuho Preferred Capital (Cayman) 6
Limited (“MPC6,” and the preferred
securities described below are referred toas the “MPC6 Preferred Securities.”)Mizuho Preferred Capital (Cayman) 7
Limited (“MPC7,” and the preferred
securities described below are referred toas the “MPC7 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Mandatory
redemption date

None

None

None

Optional
redemption

Optionally redeemable on each dividend
payment date falling in or after June 2008
(subject to prior approval from regulatory
authorities)

Optionally redeemable on each dividend
payment date falling in or after June 2008
(subject to prior approval from regulatory
authorities)

Optionally redeemable on each dividend
payment date falling in or after June 2008
(subject to prior approval from regulatory
authorities)

Dividends

Floating dividend rate (A 100 basis point
step-up dividend rate is applied beginningthe dividend payment date falling in June
2013.) (As stated in “Dividend suspension
events” below, dividend payments that aresuspended are non-cumulative.)

Floating dividend rate for both Series A
and Series B (A 100 basis point step-up
dividend rate is applied beginning thedividend payment date falling in June
2013.) (As stated in “Dividend suspension
events” below, dividend payments that aresuspended are non-cumulative.)

Floating dividend rate (A 100 basis point
step-up dividend rate is applied beginningthe dividend payment date falling in June
2013.) (As stated in “Dividend suspension
events” below, dividend payments that aresuspended are non-cumulative.)

Dividend payment
date

Last business day of June in each year

Last business day of June in each year

Last business day of June in each year

Total amount issued¥45.5 billion

Series A : ¥19.5 billion
Series B : ¥ 2.5 billion¥51.0 billion

Issue dateAugust 9, 2002

Series A : August 9, 2002
Series B : August 30, 2002

August 30, 2002

Dividend suspension
eventsIf any of the following events arise,
dividend payments are suspended on a
non-cumulative basis:(1) when Mizuho Financial Group issues
to MPC5 a Loss Absorption
Certificate(1);(2) when dividends on Mizuho Financial
Group's Preferred Stock(2) aresuspended;(3) when Mizuho Financial Group issues to
MPC5 a Distributable Amounts
Limitation Certificate(4) stating that
there are no Available Distributable
Amounts(3); and(4) when the dividend payment date is not
a Mandatory Dividend Payment Date(5),and Mizuho Financial Group issues to
MPC5 a dividend instruction instructing
it not to pay any dividends on such
dividend payment date.

If any of the following events arise,
dividend payments are suspended on a
non-cumulative basis:(1) when Mizuho Financial Group issues
to MPC6 a Loss Absorption
Certificate(1);(2) when dividends on Mizuho Financial
Group's Preferred Stock(2) aresuspended;(3) when Mizuho Financial Group issues to
MPC6 a Distributable Amounts
Limitation Certificate(4) stating that
there are no Available Distributable
Amounts(3); and(4) when the dividend payment date is not
a Mandatory Dividend Payment Date(5),and Mizuho Financial Group issues to
MPC6 a dividend instruction instructing
it not to pay any dividends on such
dividend payment date.

If any of the following events arise,
dividend payments are suspended on a
non-cumulative basis:(1) when Mizuho Financial Group issues
to MPC7 a Loss Absorption
Certificate(1);(2) when dividends on Mizuho Financial
Group's Preferred Stock(2) aresuspended;(3) when Mizuho Financial Group issues to
MPC7 a Distributable Amounts
Limitation Certificate(4) stating that
there are no Available Distributable
Amounts(3); and(4) when the dividend payment date is not
a Mandatory Dividend Payment
Date(5), and Mizuho Financial Groupissues to MPC7 a dividend instruction
instructing it not to pay any dividends
on such dividend payment date.

189

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

190

Mandatory dividend
event

If Mizuho Financial Group pays any
dividends on its common stock withrespect to a fiscal year, full dividends mustbe paid on Parity Preferred Securities(6) inJune of the calendar year in which such
fiscal year ends. However, it is subject tothe following conditions: (1) no Loss
Absorption Certificate(1) has been issued;(2) no preferred stock dividend limitation
has arisen with respect thereto (partial
dividend payments are made to the extent
applicable); and (3) no Distributable
Amounts Limitation Certificate(4) has been
issued with respect thereto (partial
dividend payments are made to the extent
applicable).

If Mizuho Financial Group pays any
dividends on its common stock withrespect to a fiscal year, full dividends mustbe paid on Parity Preferred Securities(6) inJune of the calendar year in which such
fiscal year ends. However, it is subject tothe following conditions: (1) no Loss
Absorption Certificate(1) has been issued;(2) no preferred stock dividend limitation
has arisen with respect thereto (partial
dividend payments are made to the extent
applicable); and (3) no Distributable
Amounts Limitation Certificate(4) has been
issued with respect thereto (partial
dividend payments are made to the extent
applicable).

If Mizuho Financial Group pays any
dividends on its common stock withrespect to a fiscal year, full dividends mustbe paid on Parity Preferred Securities(6) inJune of the calendar year in which such
fiscal year ends. However, it is subject tothe following conditions: (1) no Loss
Absorption Certificate(1) has been issued;(2) no preferred stock dividend limitation
has arisen with respect thereto (partial
dividend payments are made to the extent
applicable); and (3) no Distributable
Amounts Limitation Certificate(4) has been
issued with respect thereto (partial
dividend payments are made to the extent
applicable).

Distributableamounts limitation

When Mizuho Financial Group issues aDistributable Amounts Limitation
Certificate(4) to MPC5, dividends arelimited to the Available Distributable
Amounts(3).

When Mizuho Financial Group issues aDistributable Amounts Limitation
Certificate(4) to MPC6, dividends arelimited to the Available Distributable
Amounts(3).

When Mizuho Financial Group issues aDistributable Amounts Limitation
Certificate(4) to MPC7, dividends arelimited to the Available Distributable
Amounts(3).

Dividend limitation

When dividends on Mizuho Financial
Group's Preferred Stock(2) are reduced,
dividends on Parity Preferred Securities(6)are also reduced by an equal percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(2) are reduced,
dividends on Parity Preferred Securities(6)are also reduced by an equal percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(2) are reduced,
dividends on Parity Preferred Securities(6)are also reduced by an equal percentage.

Claims on residual
assetsSame priority as Mizuho Financial Group's
Preferred Stock(2)Same priority as Mizuho Financial Group's
Preferred Stock(2)Same priority as Mizuho Financial Group's
Preferred Stock(2)IssuerMizuho Capital Investment (USD) 1 Limited (“MCI (USD) 1,” andthe preferred securities described below are referred to as “MCI
(USD) 1 Preferred Securities.”)Mizuho Capital Investment (EUR) 1 Limited (“MCI (EUR) 1,” andthe preferred securities described below are referred to as “MCI
(EUR) 1 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Starting from the dividend payment date falling in June 2016,
optionally redeemable on each dividend payment date in five-year
intervals (subject to prior approval from regulatory authorities)

Starting from the dividend payment date falling in June 2011,
optionally redeemable on each dividend payment date in five-year
intervals (subject to prior approval from regulatory authorities)

Dividends

Fixed dividend rate for the first ten years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2016. Dividend payments that are suspended are noncumulative.)

Fixed dividend rate for the first five years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2011. Dividend payments that are suspended are noncumulative.)

Dividend payment
date

June 30th and December 30th of each year

June 30th of each year until June 2011, and June 30th andDecember 30th of each year thereafter

Total amount issued

US$600 million=C500 million

Issue date

March 13, 2006

March 13, 2006

Dividend suspension
events(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8),Insolvency Event(9) or Governmental Action(10) has occurred toMizuho Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(11) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (USD) 1 Preferred Securities, and Mizuho Financial Groupissues a dividend suspension notice to MCI (USD) 1; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(USD) 1.

(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(12) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (EUR) 1 Preferred Securities, and Mizuho Financial Groupissues a dividend suspension notice to MCI (EUR) 1; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(EUR) 1

Mandatory
dividend event

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, dividend payments for the fullamount of MCI (USD) 1 Preferred Securities must be made on thedividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, dividend payments for the fullamount of MCI (EUR) 1 Preferred Securities must be made on
dividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (USD) 1 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(11).

Dividends for the MCI (EUR) 1 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(12).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (USD) 1 Preferred Securities arealso reduced by an equal percentage.

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (EUR) 1 Preferred Securities are also
reduced by an equal percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(13)Same priority as Mizuho Financial Group's Preferred Stock(13)IssuerMizuho Capital Investment (JPY) 1 Limited (“MCI (JPY) 1,” and thepreferred securities described below are referred to as “MCI (JPY)
1 Preferred Securities.”)Mizuho Capital Investment (JPY) 2 Limited (“MCI (JPY) 2,” and thepreferred securities described below are referred to as “MCI (JPY)
2 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Starting from the dividend payment date falling in June 2016,
optionally redeemable on each dividend payment date in five-year
intervals (subject to prior approval from regulatory authorities)

Starting from the dividend payment date falling in June 2018,
optionally redeemable on each dividend payment date (subject toprior approval from regulatory authorities)

Dividends

Fixed dividend rate for the first ten years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2016. Dividend payments that are suspended are noncumulative.)

Fixed dividend rate for the first ten years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2018. Dividend payments that are suspended are noncumulative.)

Dividend payment
date

June 30th and December 30th of each year

June 30th and December 30th of each year

Total amount issued¥400 billion¥274.5 billion

Issue date

January 12, 2007

January 11, 2008

191

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Dividend suspension
events(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8),Insolvency Event(9) or Governmental Action(10) has occurred toMizuho Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(14) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (JPY) 1 Preferred Securities and when Mizuho Financial
Group issues a dividend suspension notice to MCI (JPY) 1; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(JPY) 1

(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(15) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (JPY) 2 Preferred Securities and when Mizuho Financial
Group issues a dividend suspension notice to MCI (JPY) 2; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(JPY) 2

Mandatory
dividend event

If Mizuho Financial Group pays any dividends on its common stock
to holders of record as of a prescribed record date in theimmediately preceding fiscal year, dividend payments for the fullamount of MCI (JPY) 1 Preferred Securities must be made on
dividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

If Mizuho Financial Group pays any dividends on its common stock
to holders of record as of a prescribed record date in theimmediately preceding fiscal year, dividend payments for the fullamount of MCI (JPY) 2 Preferred Securities must be made on
dividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (JPY) 1 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(14).

Dividends for the MCI (JPY) 2 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(15).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (JPY) 1 Preferred securities are also
reduced by an equal percentage.

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (JPY) 2 Preferred securities are also
reduced by an equal percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(13)Same priority as Mizuho Financial Group's Preferred Stock(13)Notes:(1) Loss Absorption Certificate
Refers to a certificate that Mizuho Financial Group delivers to the issuer (in case of the loss
absorption event set forth in clause (iv) below, the issuance thereof is at our discretion) upon
any of the following events with respect to Mizuho Financial Group: (i) liquidation event thatshall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho
Financial Group or a competent court in Japan shall have (a) adjudicated Mizuho Financial
Group to be subject to bankruptcy proceedings or (b) approved a preparation of areorganization plan for abolishment of all business of Mizuho Financial Group; (ii)reorganization event that shall be deemed to occur if a competent court in Japan shall haveadjudicated (a) the commencement of a corporate reorganization proceeding of Mizuho
Financial Group under the Corporate Reorganization Law or (b) the commencement of a civil
rehabilitation proceeding of Mizuho Financial Group under the Civil Rehabilitation Law; (iii)
governmental action that shall be deemed to occur if the government authority in Japan (a)publicly declares Mizuho Financial Group is not able to pay its debts as they become due, (b)publicly declares Mizuho Financial Group's liabilities exceed its assets, (c) publicly declares
Mizuho Financial Group to be under public management or (d) issues an order that Mizuho
Financial Group be transferred to a third party; (iv) inadequate ratio event that shall bedeemed to occur if capital adequacy ratio or Tier 1 capital ratio fails to meet the minimum
requirement or would fall short as a result of a dividend payment on the relevant preferred
securities; (v) default event that shall be deemed to occur if Mizuho Financial Group is notable to pay its debts as they become due or would not be able to do so as a result of adividend payment on the relevant preferred securities; or (vi) insolvency event shall be deemed
to occur if the liabilities of Mizuho Financial Group exceeds its assets or would exceed its
assets as a result of a dividend payment on the relevant preferred securities.
(2) Preferred Stock
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking
most senior compared to other preferred stock of Mizuho Financial Group as to dividend
payments. It includes such preferred stocks that are issued in the future.
(3) Available Distributable Amounts
Refers to the maximum amount available for dividends (“Distributable Amounts”) calculated
based on the immediately preceding fiscal year's financial statements, less the aggregate
amount of dividends paid previously during the current fiscal year and scheduled to be paid
thereafter in respect of such fiscal year in respect of any Preferred Stock (provided that eachinterim dividend payment on Preferred Stock to be paid during such current Fiscal Year shallbe excluded in calculating Available Distributable Amounts). Notwithstanding the foregoing,
if there are securities issued by a company other than Mizuho Financial Group of which therights to dividends and the rights at the time of liquidation, etc., are determined by reference
to the financial condition and results of operation of Mizuho Financial Group and which rank,

192

in relation to MPC (with respect to the columns for MPC1, MPC5, MPC6 and MPC7, “MPC”
refers to MPC1, MPC5, MPC6 and MPC7, respectively), equal in point of subordination as theParity Preferred Securities (“Parallel Preferred Securities”), the Available Distributable Amounts
are adjusted as follows:
Available Distributable Amounts after the adjustment = Available Distributable Amounts x(Total of full dividend payment amount for Parity Preferred Securities in such fiscal year) /(Total of full dividend payment amount for Parity Preferred Securities in such fiscal year +Total amount of full dividend payment amount for Parallel Securities in such fiscal year)(4) Distributable Amounts Limitation Certificate
Refers to a certificate issued by Mizuho Financial Group on or before the annual general
meeting of shareholders to issuers if Available Distributable Amounts falls short of total
dividends to be paid on the dividend payment date, which shall set forth the Available
Distributable Amounts of such fiscal year.
(5) Mandatory Dividend Payment Date
Refers to a dividend payment date in June of a calendar year when a fiscal year of Mizuho
Financial Group ends with respect to which it paid dividends on its common stock.
(6) Parity Preferred Securities
Refers to the collective designation for preferred securities and MPC Preferred Securities
issued by MPC (with respect to the columns for MPC1, MPC5, MPC6 and MPC7, “MPC”
refers to MPC1, MPC5, MPC6 and MPC7, respectively) which are perpetual and the dividend
payment dates and the use of proceeds are the same as that of the relevant MPC Preferred
Securities (or MPC1 Preferred Securities, MPC5 Preferred Securities, MPC6 Preferred Securities
or MPC7 Preferred Securities, as the case may be). (In the case of MPC6, for example, Parity
Preferred Securities are the collective designation that includes Series A, Series B as well asother preferred securities that satisfy the above conditions if newly issued in the future.)(7) Liquidation Event
Shall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho
Financial Group or a competent court in Japan shall have (i) adjudicated Mizuho Financial
Group to be subject to bankruptcy proceedings or (ii) approved a preparation of areorganization plan for abolishment of all business of Mizuho Financial Group.
(8) Reorganization Event
Shall be deemed to occur if a competent court in Japan shall have adjudicated (i) thecommencement of a corporate reorganization proceeding of Mizuho Financial Group under
the Corporate Reorganization Law or (ii) the commencement of a civil rehabilitation
proceeding of Mizuho Financial Group under the Civil Rehabilitation Law.
(9) Insolvency Event
Shall be deemed to occur if (i) Mizuho Financial Group is not able to pay its debts as they
become due or would not be able to do so as a result of a dividend payment on the relevantpreferred securities, or (ii) if the liabilities of Mizuho Financial Group exceeds its assets orwould exceed its assets as a result of a dividend payment on the relevant preferred securities.
(10)Governmental Action
Shall be deemed to occur if the government authority in Japan (i) publicly declares Mizuho
Financial Group is not able to pay its debts as they become due, (ii) publicly declares Mizuho
Financial Group's liabilities exceed its assets, (iii) publicly declares Mizuho Financial Group to
be under public management or (iv) issues an order that Mizuho Financial Group betransferred to a third party.
(11)Available Distributable Amounts for MCI (USD) 1 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (USD) 1 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (USD) 1 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (USD) 1 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (USD) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date falling in June,
pro-rated between full dividends on MCI (USD) 1 Preferred Securities for the dividend
payment date falling in December and full dividends on Equivalent Securities paid in whole orin part or declared to be paid from the day after the dividend payment date of MCI (USD) 1
Preferred Securities falling in June up to the dividend payment date falling in December.
(12)Available Distributable Amounts for MCI (EUR) 1 Preferred Securities(Up to the dividend payment date falling in June 2011)
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend payment
amount on preferred securities for the then current fiscal year that are equivalently
subordinated in nature with MCI (EUR) 1 Preferred Securities (“Equivalent Securities”).
(From the dividend payment date falling in December 2011)(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend amounton Equivalent Securities to which dividends are paid in whole or in part or declared to be paidon or prior to the relevant dividend payment date of MCI (EUR) 1 Preferred Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Sock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (EUR) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent

Securities paid or declared to be paid on or prior to the dividend payment date falling in June,
pro-rated between full dividends on MCI (EUR) 1 Preferred Securities for the dividend
payment date falling in December and full dividends on Equivalent Securities paid in whole orin part or declared to be paid from the day after the dividend payment date of MCI (EUR) 1
Preferred Securities falling in June up to the dividend payment date falling in December.
(13)Preferred Stocks
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking
most senior compared to other preferred stock of Mizuho Financial Group as to dividend
payments and claims to residual assets.
(14)Available Distributable Amounts for the MCI (JPY) 1 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 1 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 1 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 1 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 1 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 1 Preferred
Securities falling in June up to the dividend payment date falling in December.
(15)Available Distributable Amounts for the MCI (JPY) 2 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 2 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 2 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 2 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 2 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 2 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 2 Preferred
Securities falling in June up to the dividend payment date falling in December.

193

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Preferred securities issued by SPCs of Mizuho Corporate Bank, Ltd. (the “Bank”)
IssuerMizuho Preferred Capital Company L.L.C. (“MPCC,” and thepreferred securities described below is referred to as “MPCC
Preferred Securities”)

Mizuho JGB Investment L.L.C. (“MJI,” and the preferred securities
described below is referred to as “MJI Preferred Securities”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Optionally redeemable on each dividend payment date falling in orafter June 2008 (subject to prior approval from regulatory
authorities)

Optionally redeemable on each dividend payment date falling in orafter June 2008 (subject to prior approval from regulatory
authorities)

Dividends

Fixed dividend rate for the first ten years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2008. In addition, a step-up dividend rate is applied
after such date. As stated in “Dividend suspension events” below,
dividend payments that are suspended are non-cumulative.)

Fixed dividend rate for the first ten years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2008. In addition, a step-up dividend rate is applied
after such date. As stated in “Dividend suspension events” below,
dividend payments that are suspended are non-cumulative.)

Dividend payment
date

Last business day of June and December of each year

Last business day of June and December of each year

Total amount issued

US$1.0 billion

US$1.6 billion

Issue dateFebruary 23, 1998

March 16, 1998

Dividend suspension
eventsIf any of the following events arise, dividend payments are
suspended on a non-cumulative basis (except in the case of amandatory dividend event described below):(1) when the capital adequacy ratio of the Bank or its Tier 1 capitalratio fails to meet the minimum requirements and a Dividend
Suspension Notice(1) has been issued regarding MPCC
Preferred Securities;(2) when a liquidation proceeding of the Bank is commenced,
bankruptcy of the Bank or reorganization plan for terminating
Bank's business is approved by a competent court;(3) when dividends on the Bank's Preferred Stock(2) are suspended
and the Bank notifies such suspension in writing or a Dividend
Suspension Notice(1) is issued regarding MPCC Preferred
Securities; or(4) when dividends on the Bank's stock are completely suspended
and Dividend Suspension Notice(1) is issued on MPCC Preferred
Securities.

If any of the following events arise, dividend payments are
suspended on a non-cumulative basis (except in the case of amandatory dividend event described below):(1) when the capital adequacy ratio of the Bank or its Tier 1 capitalratio fails to meet the minimum requirements and a Dividend
Suspension Notice(1) has been issued regarding MJI Preferred
Securities;(2) when a liquidation proceeding of the Bank is commenced,
bankruptcy of the Bank or reorganization plan for terminating
Bank's business is approved by a competent court;(3) when dividends on the Bank's Preferred Stock(2) are suspended
and the Bank notifies such suspension in writing or a Dividend
Suspension Notice(1) is issued regarding MJI Preferred
Securities; or(4) when dividends on the Bank's stock are completely suspended
and Dividend Suspension Notice(1) is issued on MJI Preferred
Securities.

Mandatory dividend
event

If the Bank pays any dividends on any of its stock with respect to a
fiscal year, dividend payments for the full amount of MPCC
Preferred Securities must be made (except in the case described inclause (2) of dividend suspension events above) on the relevant
dividend payment dates for two consecutive Dividend Periods(3)after the end of such fiscal year.

If the Bank pays any dividends on any of its stock with respect to a
fiscal year, dividend payments for the full amount of MJI Preferred
Securities must be made (except in the case described in clause (2)of dividend suspension events above) on the relevant dividend
payment dates for two consecutive Dividend Periods(3) after theend of such fiscal year.

Distributableamounts limitation

None

None

Dividend limitations

None

None

Claims on residual
assetsSame priority as the Bank's Preferred Stock(2)Same priority as the Bank's Preferred Stock(2)Notes:(1) Dividend Suspension Notice
Refers to the notice Mizuho Preferred Capital Holding Inc. (or, in the case of MJI, Mizuho JGB Investment Holdings Inc.) , the intermediate holding company of the Issuer in the United States,delivers to the Issuer ten days or more prior to a dividend payment date stating that MPCC (or MJI) will not pay dividends on the relevant dividend payment date.
(2) Bank's Preferred Stock
Refers to preferred stock of the Bank qualifying as Tier 1 capital and ranking most senior compared to other preferred stock of the Bank as to dividend payments. It includes such preferred stocks
that are issued in the future.
(3) Dividend Period
Refers to periods commencing on the day after the last business day of June and continuing to the last business day of December and periods commencing on the day after the last business day ofDecember and continuing to the last business day of June.

194

(b) Summary of Preferred Stock
The preferred stocks that have been issued as stated below are included in Tier 1 capital of Mizuho Financial Group's consolidated
capital adequacy ratio.
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Amount outstanding as of fiscal
year end¥943.74 billion¥36.69 billion

Preferred dividend payment

An annual dividend payment of ¥20,000 per preferredshare to holders of preferred stock in priority to dividend
payments to holders of common stock.

An annual dividend payment of ¥30,000 per preferredshare to holders of preferred stock in priority to dividend
payments to holders of common stock.

Non-cumulative clauseIn the event that all or part of the preferred dividends are
not paid during a given fiscal year, the shortfall is notaccumulated in or beyond the following fiscal year.

In the event that all or part of the preferred dividends are
not paid during a given fiscal year, the shortfall is notaccumulated in or beyond the following fiscal year.

Non-participation clauseNo distribution of surplus exceeding the preferred dividend
payment is made to holders of preferred stock.

No distribution of surplus exceeding the preferred dividend
payment is made to holders of preferred stock.

Preferred interim dividend
payment

If an interim dividend payment is made, ¥10,000 per shareis to be paid in priority to holders of common stock.

If an interim dividend payment is made, ¥15,000 per shareis to be paid in priority to holders of common stock.

Distribution of residual assets¥1,000,000 per preferred share is to be paid in priority toholders of common stock and no other distribution ofresidual assets is to be made.

¥1,000,000 per preferred share is to be paid in priority toholders of common stock and no other distribution ofresidual assets is to be made.

(1)

Conversion
requestConversion
periodFrom July 1, 2008 to June 30, 2016.

Initialconversion
price¥536,700.

Reset ofconversion
price

On July 1 of each year from July 1, 2009 to July 1, 2015
(hereafter, “Conversion Price Reset Date”), in the event themarket price of common stock on such date is below theeffective conversion price on the day before the relevant
Conversion Price Reset Date, the reset price is to be
adjusted as of the relevant Conversion Price Reset Date tosuch market price (minimum: ¥332,000), where market
price is defined as the average of the daily closing prices ofcommon stock as reported by the Tokyo Stock Exchange
for the 30 consecutive trading days commencing on the
45th trading day prior to the Conversion Price Reset Date.

n.a.

Adjustment of
the conversion
price

Adjustments to the conversion price are to be made upon
the issuance or disposition of common stock at a pricelower than the market price and in other specified
circumstances.

n.a.

Number ofshares ofcommon stock
to be provided
upon
conversion

The number obtained by dividing (i) the total issue price ofthe preferred stock submitted in connection with theconversion request by the holders of such preferred stockby (ii) the conversion price.

Mandatory conversion ofpreferred stock

n.a.

n.a.

Mizuho Financial Group shall acquire on July 1, 2016 any
preferred stock in respect of which a request for conversion
has not been made by June 30, 2016 and deliver common
stock to the holder of such preferred stock. The number ofshares of common stock to be delivered is obtained by
dividing ¥1,000,000 by the average of the daily closing
prices of common stock as reported by the Tokyo Stock
Exchange for the 30 consecutive trading days commencing
on the 45th trading day prior to July 1, 2016 (minimum:¥332,000).

n.a.

n.a.

195

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Conversion clausen.a.

On or after April 1, 2013, as determined by a resolution of
the general meeting of shareholders, all or a portion of thepreferred stock can be repurchased at the conversion priceset forth below.
The conversion price per share will be the sum of¥1,000,000 and the preferred dividend pro-rated for thenumber of days from the first day of the fiscal year during
which the conversion date falls; provided, however, that if
preferred interim dividends are paid, the conversion priceper share is to be reduced by the amount of such interim
dividend.

Voting rights

The holders of preferred stock shall not have voting rights
at a general meeting of shareholders; provided, however,that the holders of preferred stock may have voting rightsfrom the date of a general meeting of shareholders if a
proposal for the payment of preferred dividends is not
submitted to such general meeting of shareholders, orimmediately after the closing of a general meeting ofshareholders if a proposal on the preferred dividends isrejected at such general meeting of shareholders, until, ineither case, such time as a resolution of a general meetingof shareholders for the payment of preferred dividends isapproved.

The holders of preferred stock shall not have voting rights
at a general meeting of shareholders; provided, however,that the holders of preferred stock may have voting rightsfrom the date of a general meeting of shareholders if a
proposal for the payment of preferred dividends is not
submitted to such general meeting of shareholders, orimmediately after the closing of a general meeting ofshareholders if a proposal on the preferred dividends isrejected at such general meeting of shareholders, until, ineither case, such time as a resolution of a general meetingof shareholders for the payment of preferred dividends isapproved.

Preferential status

All classes of preferred stock rank pari passu with respect topreferred dividends, preferred interim dividends andresidual assets.

All classes of preferred stock rank pari passu with respect topreferred dividends, preferred interim dividends andresidual assets.

Note:(1) Conversion of the preferred stock is conducted through the acquisition of the relevant shares of preferred stock by Mizuho Financial Group followed by the delivery of the applicable number ofshares of common stock. As such, the word “acquisition” is used in lieu of “conversion” in our articles of incorporation.

(c) Summary of Debt Capital Instruments
1. Summary
The following debt capital instruments are included in Tier 2 capital:• Perpetual subordinated debt;• Dated subordinated debt; and• Dated preferred stock.
Of the above, perpetual subordinated debt and dated subordinated debt are in the form of subordinated bonds with subordination clause (corporate bonds with subordination clause) or subordinated loans (borrowing by means of loan agreement withsubordination clause) (collectively, “Subordinated Bonds, Etc.”). Specifically, such debt capital is raised as follows:(1) Subordinated bonds offered to investors in Japan and abroad;(2) Subordinated bonds using a Euro MTN program, etc.; and(3) Subordinated loans.
The Subordinated Bonds, Etc., are issued by or loaned to Mizuho Financial Group, its banking subsidiaries or overseas consolidated SPC subsidiaries.
In each case, the above instruments are based on terms that are in accordance with relevant public notices and supervisory
guidelines of the Financial Services Agency so as to ensure eligibility as Tier 2 capital.
At present, we have no dated preferred stock outstanding.
2. Subordination clause
Subordinated Bonds, Etc., include subordination clauses pursuant to which, in the event that certain grounds for subordinationarise, payments of principal and interest on the relevant Subordinated Bonds, Etc., are ranked lower in priority compared to the
execution of obligations relating to more senior claims which are obligations other than those that rank pari passu or junior tosuch Subordinated Bonds, Etc. (concerning the rights of holders of Subordinated Bonds, Etc., that seek payment, the order of priority in receiving payments in bankruptcy proceedings is junior to subordinated bankrupt claims as set forth in the Bankruptcy
Law). As a result, senior creditors have priority over holders of Subordinated Bonds, Etc., in the event of bankruptcy, corporate
reorganization and civil rehabilitation proceedings, etc.
196

3. Perpetual subordinated debt
Perpetual subordinated debt is a debt capital instrument with all of the following features:(1) Unsecured, fully paid and subordinated to other obligations;(2) Not redeemable or repayable, except when it is optional and the debtor anticipates that a sufficient capital adequacy ratio will
be maintained after such redemption or repayment or in connection with the raising of capital in an amount equal to or inexcess of the amount to be redeemed or repaid;(3) Applicable to absorb losses while the obligor continues to do business; and(4) Contains a provision that allows a deferred payment of interest.
4. Dated subordinated debt
Dated subordinated debt differs from perpetual subordinated debt in that it has a fixed redemption or repayment term of morethan five years.
In the case of both perpetual subordinated debt and dated subordinated debt, if a step-up in interest is provided for, the application of such step-up must be made at a time five years or more from the issue or loan date so as to prevent the interest to be
paid after step-up from being excessive, and the amount of step-up must be within the limit that the Financial Services Agency
determines in supervisory guidelines.

4. 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 the following assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring structure.
Maintaining a Sufficient BIS Capital Adequacy Ratio and Tier 1 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 the light of our business plans and strategic targets tomatch the increase in risk-weighted assets acquired for growth, in addition to maintaining risk-based capital that exceeds theminimum requirements (8% under BIS standards, 4% under domestic standards).
Balancing Risk and CapitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group's overall risk
exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating capitalthat corresponds to the amount of risk to the business groups and units of our banking subsidiaries, etc. within the bounds of ourcapital, and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. Whenmaking these assessments, we examine whether an appropriate return on risk is maintained in addition to considering the effects
that interest rate risk related to our banking book, credit concentration risk and stress tests have on our capital.

197

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

5. Required Capital by Portfolio Classification
Billions of yen

2008
EAD
Required Capital

As of March 31,

Credit Risk
Internal Ratings-based Approach
Corporate (except Specialized Lending)Corporate (Specialized Lending)
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
Equities, etc.
PD/LGD Approach
Market-based Approach (Simple Risk Weight Method)
Market-based Approach (Internal Models Approach)Transitional Measure Applied
Regarded-method Exposure
Purchase Receivables
Securitizations
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
Others¥ 148,517.6
138,667.2
55,036.7
2,909.7
41,705.9
7,914.3
12,943.7
10,309.2
329.0
2,305.5
5,086.8
1,060.9277.6—
3,748.2
1,511.9
2,852.6
6,484.6
2,220.5
9,850.3
3,672.2
2,841.0
2,453.8
0.0
67.2
815.8

6,261.6
5,931.0
3,470.1
279.0
63.7
118.0
555.3
386.7
23.0
145.5
628.0
234.3
75.8
—
317.8
359.1
118.8
160.5
178.0
330.6
3.3
48.8
183.2
0.0
30.4
64.8

¥ 147,489.3
140,350.2
54,948.3
2,416.9
43,294.3
7,227.3
13,016.0
10,260.7345.0
2,410.2
6,550.1
910.9
147.0
—
5,492.0
1,097.2
3,134.1
6,394.6
2,271.0
7,139.0
2,633.8
1,731.4
2,474.5
0.0
17.4
281.7

/

164.2

/

174.9

Standardized Approach
Interest Rate Risk
Equities Risk
Foreign Exchange Risk
Commodities Risk
Option Transactions

/
/
/
/
/
/

112.9
84.1
18.1
4.1
6.4
—

/
/
/
/
/
/

138.2
84.5
40.1
7.8
5.6
—

Internal Models Approach

/

51.2

/

36.7

Market Risk

Operational Risk (Standardized Approach)Total Required Capital (Consolidated)

¥

2007
EAD
Required Capital

/
¥

/

290.8
¥

5,269.8¥/¥/

6,067.2
5,809.9
3,359.6
233.1
100.6
171.0
543.3
370.9
22.0
150.4
619.9
110.9
51.3
—
457.6
310.9
101.4
159.1
210.4
257.2
2.2
30.0
192.7
0.0
15.4
16.7

310.2
¥

5,663.6

Notes: 1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.
4. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and (iii) deduction from capital. For
market risk, the market risk equivalent amount. For operational risk, the operational risk equivalent amount.
5. Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.
6. The major exposures included in each portfolio classification of internal ratings-based approach are as follows:
Corporate (excluding Specialized Lending): Credit to corporations and sole proprietors (excluding credit to retail customers)
Corporate (Specialized Lending): Credit that limits interest and principal repayment sources to cash flow derived from specific real estate,chattel, businesses, etc.
Sovereign: Credit to central governments, central banks and local governmental entities
Bank: Credits to banks and securities companies, etc.
Retail: Housing loans (residential mortgage), credit card loans (qualifying revolving retail loans) and other individual consumer loans andloans to business enterprises with total credit amount of less than ¥100 million (other retail), etc.
Equities, etc.: Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)* The transitional measure applies to those held from September 30, 2004 or earlier, and others are applied either the PD/LGD approachor the market-based approach.
Regarded-method Exposure: Investment trusts and funds, etc.
Purchase Receivables: Receivables purchased from third parties excluding securities (excluding securitizations)
Securitizations: Transactions in the form of “non-recourse” or having a “senior/subordinated structure” (excluding specialized lending)198

Credit Risk
6. Credit Risk Management
Summary of Credit Risk Management
See pages 57 to 61 for a summary of our credit risk management policies and procedures.
We use the foundation internal ratings-based approach to calculate credit risk-weighted assets for purposes of Basel II.
However, we exempt business units or asset classes for which calculating the amount of credit risk-weighted assets is deemed
immaterial based on a consideration of the type of business and the degree of influence on the amount of credit risk-weighted
assets from the use of the foundation internal ratings-based approach, and the standardized approach is applied for these business units or asset classes.
In addition, the various estimates used to calculate credit risk-weighted assets, such as PD (probability of default), are used for
purposes of internal credit risk measurement and risk capital allocations. In compliance with regulations, we estimate PD by using
long-term averages of actual defaults, to which conservative adjustments are made, based on internal and external data. We regularly perform verifications through back testing and other methods.
Status of Portfolios to which Standardized Approach is Applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which the standardized
approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and Standard & Poor's (S&P) overseas.
We apply a 100% risk weight for all of our corporate exposure.
Summary of Our Internal Rating System
See page 58 to 59 for a summary of our internal rating system and rating assignment procedures.

199

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

7. Credit Risk Exposure, etc.
We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.
The outstanding balance is based on exposure at default.
No significant difference exists between period-end credit risk position and the average credit risk position during the fiscal
years ended March 31, 2007 and 2008.

Status of Credit Risk Exposure(a) Breakdown by Geographical Area
Billions of yen

As of March 31, 2008

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
OthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives¥ 70,384.1
16,931.7
3,199.2
1,721.4
5,659.0
86.1
4,669.5
1,596.3/¥ 87,315.9¥ 24,070.6
6,822.8
426.1
108.0
4,237.5—
1,862.5
188.5/¥ 30,893.5¥ 2,333.3
3,578.0
125.2
182.5
1,204.8
0.3
1,984.8
80.2/¥ 5,911.3

OthersTotal

5,338.5
1,211.3
457.4
7.6
196.7
2.7
415.0
131.5
9,783.0¥ 16,332.8¥ 102,126.6
28,544.0
4,208.1
2,019.7
11,298.1
89.2
8,931.9
1,996.7
9,783.0¥ 140,453.7¥

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2007

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
OthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives¥ 72,435.4
15,958.0
3,043.1
1,645.0
5,811.1
49.1
4,162.1
1,247.4/¥ 88,393.5¥ 24,737.5
8,100.6483.6
6.0
4,650.2—
2,870.2
90.5/¥ 32,838.2¥ 1,721.3
2,783.6
85.1
113.0
1,032.6
0.0
1,514.5
38.2/¥ 4,505.0

OthersTotal

5,674.3
1,447.1
389.6
9.0
239.7
1.5
684.1
123.0
7,121.6¥ 14,243.1¥ 104,568.7
28,289.5
4,001.4
1,773.2
11,733.8
50.6
9,231.0
1,499.3
7,121.6¥ 139,979.9¥

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

200

(b) Breakdown by Industry
Billions of yen

As of March 31, 2008

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersJapanese Government; Bank of Japan
Exempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 14,412.7
1,900.5
7,526.9
7,461.4
8,356.7
9,922.3
12,839.8
11,756.7
13,138.4/¥ 87,315.9

Securities¥

2,973.5
201.7
604.4
538.7
804.4
2,284.8—
6,778.7
16,706.8/¥ 30,893.5

OTC derivatives

¥

626.9
25.0
54.1
244.8
793.4
3,656.6
0.3
504.9
5.1
/
¥ 5,911.3

Others

¥

275.2
14.8
93.5
150.2
447.4
1,778.8
18.0
2,846.0
925.4
9,783.0¥ 16,332.8

Total

¥

18,288.4
2,142.1
8,279.0
8,395.3
10,402.1
17,642.7
12,858.2
21,886.5
30,775.9
9,783.0¥ 140,453.7

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2007

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersJapanese Government; Bank of Japan
Exempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 14,848.0
1,901.8
7,666.6
7,988.4
8,318.4
9,570.7
12,563.8
12,317.0
13,218.3/¥ 88,393.5

Securities¥

4,030.5
286.4
545.7
468.0
986.1
3,332.2—
7,696.9
15,491.9/¥ 32,838.2

OTC derivatives

¥

499.8
24.3
33.8
147.4
512.4
3,022.0
0.4
261.2
3.3
/
¥ 4,505.0

Others

¥

327.3
4.2
70.9
79.2
499.2
1,580.3
21.9
2,865.2
1,672.8
7,121.6¥ 14,243.1

Total

¥

19,705.7
2,216.8
8,317.2
8,683.3
10,316.1
17,505.4
12,586.1
23,140.5
30,386.5
7,121.6¥ 139,979.9

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

201

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(c) Breakdown by Residual Contractual Maturity
Billions of yen

As of March 31, 2008

Less than One Year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 29,969.0
12,883.0
13,297.5
21,922.5
9,243.6/¥ 87,315.9

Securities¥

9,586.2
7,082.8
3,397.0
5,810.5
5,016.7/¥ 30,893.5

OTC derivatives

¥

492.3
2,717.9
1,510.3
1,074.2
116.5/¥ 5,911.3

Others¥

1,652.0
796.0
47.9
34.1
4,019.6
9,783.0¥ 16,332.8

Total

¥

41,699.6
23,479.9
18,252.8
28,841.4
18,396.6
9,783.0¥ 140,453.7

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2007

Less than One Year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 31,495.2
12,689.4
13,494.0
21,570.3
9,144.3/¥ 88,393.5

Securities¥

7,328.9
7,008.0
3,585.1
8,870.8
6,045.1/¥ 32,838.2

OTC derivatives

¥

273.5
2,519.6
887.0
704.4
120.2
/
¥ 4,505.0

Others¥1,938.6
90.2
27.3
34.4
5,030.8
7,121.6¥ 14,243.1

Total

¥

41,036.4
22,307.4
17,993.5
31,180.1
20,340.6
7,121.6¥ 139,979.9

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

202

Status of Exposure Past Due Three Months or More or in Default(d) Breakdown by Geographical Area
Billions of yen

As of March 31, 2008

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
OthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives

OthersTotal¥ 1,735.2
114.5
27.3
0.1
22.5
0.5
58.7
5.3
/
¥ 1,849.7¥ 187.2
0.0
0.0
0.0
—
—
—
—
/
¥ 187.2¥ 25.6
0.3
0.0
—
—
—
0.3
—
/
¥ 26.0¥ 38.7
5.1
4.2
0.0
0.0
—
0.7
—
0.4
¥ 44.2¥ 1,986.8
120.0
31.6
0.1
22.5
0.5
59.8
5.3
0.4
¥ 2,107.3

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2007

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
OthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives

OthersTotal¥ 1,833.6
118.7
26.1
0.8
53.8
0.5
31.9
5.4
/
¥ 1,952.3¥ 65.9
0.2
0.2
0.0
—
—
—
—
/
¥ 66.1¥¥ 33.2
6.8
5.8
0.0
0.0
—
0.9
—
0.3
¥ 40.3¥ 1,940.8
125.7
32.1
0.8
53.8
0.5
32.8
5.4
0.3
¥ 2,066.8

¥

8.0
—
—
—
—
—
—
—
/
8.0

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

203

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(e) Breakdown by Industry
Billions of yen

As of March 31, 2008

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

¥

246.6
105.8
298.3
277.1
326.1
209.7
191.3
194.5
/
¥ 1,849.7

Securities

¥

8.2
12.9
0.5
4.4
9.0
117.9
—
34.0
/
¥ 187.2

OTC derivatives

Others¥¥ 10.7
0.9
0.6
6.4
11.1
7.0
1.5
5.3
0.4
¥ 44.2

3.7
1.1
0.3
0.8
8.5
2.5
—
8.7
/
¥ 26.0

Total

¥

269.4
120.8
299.9
288.8
354.8
337.2
192.8
242.8
0.4
¥ 2,107.3

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2007

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersExempt Portion
Total

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

¥

154.2
90.0
344.0
222.5
270.1
332.5
192.2
346.4
/
¥ 1,952.3

Securities

¥

5.2
13.8
0.1
1.8
28.1
8.5
—
8.3
/
¥ 66.1OTC derivatives

Others¥¥ 12.2
0.5
0.5
6.2
8.2
6.9
1.5
3.7
0.3
¥ 40.3

¥

0.5
1.0
0.3
0.4
2.7
1.9
—
0.8
/
8.0

Total

¥

172.4
105.4
345.1
231.1
309.2
349.9
193.7
359.3
0.3
¥ 2,066.8

Notes: 1. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

204

Status of Reserves for Possible Losses on Loans(f) Fiscal Year-End Balances of Reserves for Possible Losses on Loans and Changes during the Fiscal Year(after Partial Direct Write-Offs)
Billions of yen

As of and during the Fiscal Years ended 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

2008

Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance
Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance¥

Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance

500.8
510.9
500.8
510.9
352.3
173.4
352.3
173.4

2007

¥

3.1
0.0
3.1
0.0

Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance

¥

856.3
684.4
856.3
684.4

615.7
500.8
615.7
500.8
194.9
352.3
194.9
352.3
3.4
3.1
3.4
3.1

¥

814.1
856.3
814.1
856.3

(g) Specific Reserve for Possible Losses on Loans by Geographical Area and Industry
Billions of yen

As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersOverseas
Exempt Portion
Total

2008

¥

¥

144.6
12.0
5.3
10.3
24.7
24.9
4.3
56.8
5.9
24.7
3.9
173.4

¥

¥

2007

Change

332.8
15.4
3.2
11.3
16.8
21.6
178.5
64.6
20.9
15.9
3.5
352.3

(188.1)
(3.3)
2.1
(1.0)
7.8
3.2
(174.2)(7.8)(14.9)
8.8
0.3(178.8)

Note: Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.

205

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(h) Write-Offs of Loans by Industry
Billions of yen

For the Fiscal Years ended March 31,

2008

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersExempt portion
Total

2007

¥ 23.1
7.4
2.7
13.1
35.0
5.4
2.7
37.7
0.5
¥ 128.0

¥

7.7
1.4
0.6
11.7
20.9
5.7
5.6
13.0
0.2
¥ 67.1

Notes: 1. The above table shows the breakdown of losses on write-offs of loans in our consolidated statement of income.
2. Exempt portion represents amounts calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.
3. “Others” include overseas and non-Japanese resident portions.

Status of Exposure to which the Standardized Approach is Applied(i) Exposure by Risk Weight Category after Applying Credit Risk Mitigation
Billions of yen

On-balance Sheet

Off-balance Sheet

Total

629.1
12.4
644.9
0.0
92.6
2,513.4
0.0
—
—
—
—

¥ 2,946.8—
2,137.9
—
1.2
804.1
—
—
—
—
0.0

¥ 3,576.0
12.4
2,782.8
0.0
93.8
3,317.6
0.0
—
—
—
0.0

¥

71.5
—
0.6
—
5.9
28.5
—
—
—
—
—

¥ 3,892.7¥ 5,890.2¥ 9,783.0

¥

106.7

Off-balance Sheet

Total

758.1
0.6
538.6
0.0
85.5
2,086.2
0.0—¥ 1,875.2
0.1
1,148.9
—
0.5
627.2
—
—

¥ 2,633.4
0.8
1,687.6
0.0
86.1
2,713.4
0.0
—

¥

138.9
—
0.0
—
0.5
15.3
—
—

¥ 3,469.4¥ 3,652.2¥ 7,121.6

¥

154.7

As of March 31, 2008

Risk WeightWith external rating

0%
10%
20%
35%
50%
100%
150%
350%
625%
937.5%
1,250%

Total¥

Note: Off-balance-sheet exposure shows credit equivalent amount.
Billions of yen

On-balance Sheet
As of March 31, 2007

Risk Weight

Total

With external rating

0%
10%
20%
35%
50%
100%
150%
350%

¥

Note: Off-balance-sheet exposure shows credit equivalent amount.

206

(j) Deduction from CapitalBillions of yen

As of March 31,

2008

Deduction from Capital

¥

29.4

2007

¥

15.4

Status of Exposure to which the Internal Ratings-Based Approach is Applied(k) Specialized Lending Exposure under Supervisory Slotting Criteria by Risk Weight Category
Billions of yen

As of March 31,

Risk Weight

2008

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

¥

180.6
809.9
219.2
99.4
291.9
5.0
2.7
279.5
8.2

¥ 1,896.7

2007

¥

173.8
484.1
303.3
29.8
94.2
11.4
10.1
320.8
—

¥ 1,428.0(l) Equities Exposure under Simple Risk Weight Method by Risk Weight Category
Billions of yen

As of March 31,

Risk Weight
Total

2008

300%
400%

2007

¥

216.0
61.5

¥

78.2
68.7

¥

277.6

¥

147.0

Note: Of the equity exposure under the simple risk weight method, 300% risk weight is applied for listed equities and 400% for unlisted equities.

207

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(m) Portfolio by Asset Class and Ratings Segment (Corporate)
Billions of yen

PD(EAD Weighted
Average) (%)

LGD(EAD Weighted
Average) (%)

Risk Weight(EAD Weighted
Average) (%)

EAD

On-balance
Sheet

Off-balance
Sheet

Corporate
Investment Grade Zone
Non-investment Grade Zone
Default

4.09%
0.11
2.58
100.0043.06%
42.95
42.99
46.28

54.17%
27.07
93.22
.—

¥ 58,585.6
32,145.2
24,713.9
1,726.4¥ 42,899.7
20,723.9
20,544.0
1,631.7¥ 15,685.8
11,421.2
4,169.8
94.7

Sovereign
Investment Grade Zone
Non-investment Grade Zone
Default

0.01
0.00
1.05
100.00

44.99
44.99
44.98
45.00

1.90
1.63
84.33
.—

41,795.4
41,658.4
136.8
0.1

33,095.0
32,964.6130.2
0.1

8,700.3
8,693.7
6.6—

Bank
Investment Grade Zone
Non-investment Grade Zone
Default

0.10
0.07
1.05
100.00

42.13
42.16
41.00
45.00

18.41
17.13
67.68
.—

8,141.6
7,934.3
206.9
0.3

3,062.4
2,948.8
113.1
0.3

5,079.2
4,985.4
93.7—

Equity exposure under PD/LGD approach
Investment Grade Zone
Non-investment Grade Zone
Default

12.93
0.06
3.75
100.00

90.00
90.00
90.00
90.00

130.66139.41291.43.—

1,060.9
864.3
62.1
134.3

1,060.9
864.3
62.1
134.3

—
—
—
—

Total
Investment Grade Zone
Non-investment Grade Zone
Default

2.32%
0.05
2.56
100.0044.19%
44.40
43.10
49.43

32.32% ¥ 109,583.6
14.46
82,602.4
93.45
25,119.9.—
1,861.2¥ 80,118.2
57,501.9
20,849.7
1,766.5¥ 29,465.4
25,100.4
4,270.2
94.7

As of March 31, 2008

Notes: 1. Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default
includes E2R to H1 (see page 59 for details of obligor ratings).
2. “Corporate” does not include specialized lending exposure under supervisory slotting criteria.
Billions of yen

PD(EAD Weighted
Average) (%)

LGD(EAD Weighted
Average) (%)

Risk Weight(EAD Weighted
Average) (%)

EAD

On-balance
Sheet

Off-balance
Sheet

Corporate
Investment Grade Zone
Non-investment Grade Zone
Default

3.97%
0.12
1.80
100.0043.49%
43.93
42.77
46.21

51.99%
32.64
79.23
0.00

¥ 58,532.0
31,116.6
25,590.7
1,824.7¥ 44,137.4
20,510.1
21,878.2
1,749.0¥ 14,394.6
10,606.4
3,712.5
75.6

Sovereign
Investment Grade Zone
Non-investment Grade Zone
Default

0.03
0.01
2.10
100.00

44.99
44.99
44.99
45.00

2.80
2.48
86.73
0.00

43,361.8
43,195.0
161.9
4.8

34,993.7
34,838.8
149.9
4.8

8,368.1
8,356.1
11.9
0.0

Bank
Investment Grade Zone
Non-investment Grade Zone
Default

0.21
0.13
0.94
100.00

43.76
43.81
41.81
45.00

29.02
28.05
61.90
.—

7,699.1
7,470.5
224.4
4.1

3,207.5
3,019.7
183.5
4.1

4,491.5
4,450.7
40.8—

Equity exposure under PD/LGD approach
Investment Grade Zone
Non-investment Grade Zone
Default

2.46
0.12
4.62
100.00

90.00
90.00
90.00
90.00

124.66121.16305.54
.—

910.9
860.5
30.4
19.9

910.9
860.5
30.4
19.9

—
—
—
—

Total
Investment Grade Zone
Non-investment Grade Zone
Default

2.15%
0.06
1.80
100.0044.48%
44.95
42.83
46.68

31.69%
17.38
79.39
.—

¥ 110,504.0
82,642.7
26,007.4
1,853.7¥ 83,249.7
59,229.3
22,242.2
1,778.1¥ 27,254.3
23,413.4
3,765.2
75.6

As of March 31, 2007

Notes: 1. Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default
includes E2R to H1 (see page 59 for details regarding obligor ratings).
2. “Corporate” does not include specialized lending exposure under supervisory slotting criteria.

208

(n) Portfolio by Asset Class and Ratings Segment (Retail)Billions of yen

As of March 31, 2008

PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

Residential Mortgage
Non-default
Default

1.76%
0.91
100.0046.35%
46.29
53.07

0.42%
.—
49.42

36.39% ¥ 10,309.2 ¥ 9,814.9
36.29
10,221.2
9,732.4
48.31
87.9
82.4

Qualifying Revolving
Loans (Retail)Non-default
Default

3.42
2.97
100.00

69.87
69.83
77.70

0.34
.—
73.36

57.44
57.44
57.42

329.0
327.4
1.5

232.8
231.5
1.2

96.1
95.8
0.2

1,406.4
1,404.2
2.2

6.81%
6.80%
11.29%

Other RetailNon-default
Default

4.29
1.79
100.00

49.23
49.09
54.62

1.29
.—
50.83

50.72
50.74
50.13

2,305.5
2,246.8
58.7

2,255.8
2,201.5
54.2

49.6
45.2
4.4

58.9
54.4
4.5

76.58%
74.89%
96.80%

Total
Non-default
Default

2.25%
1.12
100.0047.46%
47.39
53.93

0.58%
.—
50.23

39.48% ¥ 12,943.8 ¥ 12,303.6
39.37
12,795.5 12,165.6
49.13
148.2
138.0

¥ 640.1
629.9
10.1¥ 1,471.5
1,464.7
6.8

9.99%
9.72%
68.42%

As of March 31, 2007

PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments

Weighted
Averageof Credit
Conversion
Factor(%)

Residential Mortgage
Non-default
Default

1.53%
0.85
100.0047.86%
47.81
56.13

0.36%
.—
52.73

35.65% ¥ 10,260.7 ¥ 10,181.4
35.59
10,190.8 10,147.8
45.01
69.8
33.6

Qualifying Revolving
Loans (Retail)Non-default
Default

2.87
2.46
100.00

73.36
73.33
79.85

0.32
.—
75.98

53.38
53.39
51.22

345.0
343.5
1.4

240.7
239.5
1.2

Other RetailNon-default
Default

4.04
1.63
100.00

49.17
48.39
59.21

1.37
.—
55.68

50.53
50.62
46.87

2,410.2
2,351.0
59.2

Total
Non-default
Default

2.03%
1.04
100.0048.14%
48.59
3.47

0.54%
.—
54.33

EAD

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments¥ 494.3
488.8
5.5

¥

Weighted
Averageof Credit
Conversion
Factor(%)

6.1 100.00%
6.1 100.00%——%

Billions of yen

EAD

¥

79.2
43.0
36.2

¥

—
—
—

—%
—%
—%

104.2
104.0
0.2

1,409.8
1,408.0
1.7

7.37%
7.36%
13.27%

2,345.4
2,286.6
58.7

64.7
64.3
0.4

68.2
67.6
0.5

77.79%
77.75%
82.08%

38.88% ¥ 13,016.0 ¥ 12,767.7
38.81
12,885.5 12,674.0
45.92
130.5
93.6

¥ 248.3
211.4
36.9¥ 1,478.0
1,475.7
2.3

10.62%
10.59%
28.98%

209

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(o) Actual Losses by Asset Class
Billions of yen

For the Fiscal Years ended March 31,

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loans (Retail)
Other Retail
Total

2008
Actual Losses

2007
Actual Losses¥ 1,001.0
0.0
0.4
75.7
4.7
41.7

¥ 1,126.5
0.9
3.8
110.5
4.9
63.1

¥ 1,123.8¥ 1,309.9

Notes: 1. Actual losses are the sum of tax-qualified direct write-offs, losses from sales of non-performing loans, losses from debt forgiveness, losses
from debt-equity swaps, partial direct write-offs during the fiscal year, as well as specific reserves for possible losses on loans and generalreserves for possible losses on loans (for claims for special attention only) as of the end of the fiscal year.
2. The data of actual losses by asset class has been accumulated since the fiscal year ended March 31, 2007.
3. Equity exposure under the PD/LGD approach is not included within the amount of actual losses because losses related thereto are notrecorded as a credit-related cost and it is difficult to determine whether the losses are due to credit risk.
<Analysis>
Actual losses decreased by ¥186.1 billion from the previous fiscal year to ¥1,123.8 billion in the fiscal year ended March 31, 2008. The
decrease was due mainly to the reversal of reserve for loan losses as a result of the improvement of credit ratings of customers at Mizuho
Corporate Bank, Ltd., etc.

(p) Comparison of Estimated and Actual Losses by Asset Class
Billions of yen

For the Fiscal Years ended March 31,

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loans (Retail)
Other Retail
Total

2008
Estimated Losses
Actual Losses

2007
Estimated Losses
Actual Losses¥ 1,086.0
5.4
6.4
78.2
7.2
52.9

¥ 1,001.0
0.0
0.4
75.7
4.7
41.7

¥

/
/
/
/
/
/

¥ 1,126.5
0.9
3.8
110.5
4.9
63.1

¥ 1,236.5¥ 1,123.8¥/¥ 1,309.9

Notes: 1. Estimated losses are expected losses as of March 31, 2007.
2. We began estimating expected losses by asset class from March 31, 2007.
3. Actual losses are the sum of tax-qualified direct write-offs, losses from sales of non-performing loans, losses from debt forgiveness, losses
from debt-equity swaps, partial direct write-offs during the fiscal year, as well as specific reserves for possible losses on loans and generalreserves for possible losses on loans (for claims for special attention only) as of the end of the fiscal year.
4. The data of actual losses by asset class has been accumulated since the fiscal year ended March 31, 2007.
5. Equity exposure under the PD/LGD approach is not included within the amount of actual losses because losses related thereto are notrecorded as a credit-related cost and it is difficult to determine whether the losses are due to credit risk.

210

Methods for Credit Risk Mitigation
8. Risk Management Regarding Credit Risk Mitigation
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, we evaluate the valueof the collateral, guarantee performance capability of guarantor and legal enforceability, and we also conduct periodical subsequent
re-evaluations. Furthermore, we monitor the state of concentration of collateral type and concentration of credit risks in individualcompanies, 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 througheligible financial collateral (mainly deposits and securities), eligible IRB collateral (mainly real estate) and guarantees by “sovereign,”“banks” or “corporations above a certain credit rating” is reflected pursuant to the Notice.
In addition, when calculating the credit risk-weighted assets for corporate exposure, after considering the relevant maturity andother factors pursuant to the Notice, we offset loan claims with deposits with us to the extent such offsetting is legally possible.
When calculating the credit risk-weighted assets for derivative transactions and repurchase transactions, in cases in which a bilateral netting contract is valid in light of the legal system of the relevant jurisdiction, we take its effect into consideration.

211

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

9. Credit Risk Mitigation by Portfolio Classification
The amounts of exposure to which the method of credit risk mitigation through collateral and guarantees is applied are as follows:
Billions of yen

As of March 31, 2008

Internal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersTotal

Eligible
Financial Collateral

Other Eligible
IRB Collateral

Guarantees

CreditDerivatives¥ 2,700.0
2,130.3
0.2
542.3
27.0
—
—
27.0
—

¥ 4,388.1
4,282.5
28.1
7.6
69.7
—
—
69.7
—

Total

¥ 3,486.6
1,809.6
624.8
234.7
817.4
328.0
1.0
488.3
—

¥ 713.5
693.5
—
20.0
—
—
—
—
—

¥ 11,288.4
8,916.1
653.2
804.8
914.2
328.0
1.0
585.2
—

2,508.2
2,428.8
5.2
73.2
—
0.7
0.0

/
/
/
/
/
/
/

94.1
11.6
0.8
81.7
—
—
—

34.2
—
—
34.2
—
—
—

2,636.6
2,440.5
6.1
189.2
—
0.7
0.0

¥ 5,208.2¥ 4,388.1¥ 3,580.8¥ 747.8¥ 13,925.1

Eligible
Financial Collateral

Other Eligible
IRB Collateral

Guarantees

CreditDerivatives

Total¥ 2,818.3
2,261.0
0.2
516.9
40.1
—
—
40.1
—

¥ 4,477.4
4,326.2
26.2
4.2
120.6
—
—
120.6
—

¥ 2,941.2
1,543.0
474.4
60.5
863.1
363.8
4.7
494.5
—

¥ 505.0
505.0
—
—
—
—
—
—
—

¥ 10,742.1
8,635.4
501.0
581.7
1,023.9
363.8
4.7
655.3
—

1,470.0
1,451.2
3.1
15.6
—
—
0.0

/
/
/
/
/
/
/

66.7
—
2.7
64.0
—
—
—

8.3
—
5.9
0.4
—
1.9
—

1,545.2
1,451.2
11.8
80.1
—
1.9
0.0

¥ 4,288.4¥ 4,477.4¥ 3,008.0¥ 513.4¥ 12,287.3

Billions of yen

As of March 31, 2007

Internal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersTotal

212

Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions
10. Management of Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions
A summary of policies and procedures for risk management regarding counterparty risk for derivatives transactions, etc., arefound on page 156 to 157.

11. Status of Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions(a) Status of Derivatives Transactions and Long-Settlement Transactions
Derivative Transactions
Billions of yen

2008

As of March 31,

Foreign Exchange-related Transactions
Interest rate-related Transactions
Gold-related Transactions
Equity-related Transactions
Transactions related to Precious Metals(Other than Gold)
Other Commodity-related Transactions
Credit Derivatives Transactions
Subtotal (A)Effect of Credit Equivalent Amounts Mitigation
by Close-out Netting Settlement Contracts (B)Subtotal (C)=(A)+(B)
Effect of Credit Risk Mitigation by Collateral (D)Total (C)+(D)

2007

Gross
Replacement
Cost

Gross
Add-onCreditEquivalent
AmountGross
Replacement
Cost

Gross
Add-onCreditEquivalent
Amount¥ 2,978.0
9,621.1
0.1
109.2¥ 2,222.2
5,252.5
0.0
81.6¥ 5,200.3
14,873.7
0.2
190.9¥ 1,843.5
4,810.3
0.1
100.8¥ 2,329.5
4,607.6
0.0
67.1¥ 4,173.1
9,418.0
0.2
167.9

0.5
212.8
313.6
13,235.7

0.2
114.6
2,055.5
9,727.0

0.7
327.5
2,369.2
22,962.8

—
163.4
17.2
6,935.6

0.0
122.8
464.1
7,591.4

0.0
286.3
481.3
14,527.1

/
/
/
/

/
/
/
/

14,285.5
8,677.2
926.2¥ 7,750.9

/
/
/
/

/
/
/
/

9,061.9
5,465.2
150.0¥ 5,315.1

Note: The current exposure method is used as the method of calculating credit equivalent amounts.

Long-Settlement Transactions
Billions of yen

2008

As of March 31,

Gross
Replacement
Cost

Long-settlement Transactions¥

2.9

CreditEquivalent
AmountGross
Add-on

¥

10.6

¥

13.6

Notes: 1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the “effect of credit equivalent amounts mitigation by close-out netting settlement contracts” nor the “effect of credit risk
mitigation by collateral” applies to long-settlement transactions.

213

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(b) Amounts of Credit Risk Mitigation by Type
Billions of yen

As of March 31,

2008

Eligible Financial Collateral
Other Eligible IRB Collateral
Guarantees, Others
Total

¥

¥

47.6
63.7
2.1
113.5

2007

¥

¥

55.3
46.2
10.3
111.8

(c) Notional Amount of Credit Derivatives Subject to Credit Equivalent Amount Calculations
Billions of yen

2008
2007
Notional Amount Notional Amount

As of March 31,

Credit Derivatives Type:
Credit Default Swap

BoughtSold¥ 13,324.6
12,314.5¥ 6,309.7
5,144.6

Total Return Swap

Bought
Sold

—
—

—
—

BoughtSold¥ 13,324.6
12,314.5¥ 6,309.7
5,144.6

Total

Note: Credit derivatives used for credit risk mitigation are as follows:
Billions of yen

As of March 31,

Credit Derivatives Used for Credit Risk Mitigation

2008

¥

956.5

2007

¥

661.0

Securitization Exposure
We classify transactions as securitization exposure based on two characteristics, “non-recourse” and “senior/subordinated structure,” pursuant to the definitions set forth in the Consolidated Capital Adequacy Ratio Notice, etc.; provided that the transactions
do not include those which fall within specialized lending exposure.
Disclosed figures on securitization exposure in this section are based on transactions that are subject to the calculation of theamount of credit risk-weighted assets and do not include assets held in our (including our securities company subsidiaries) trading
account.
See pages 86 to 93 for the status of our group's securitization products (based on a definition thereof pursuant to our managerial accounting which differs from the definition set forth in the Consolidated Capital Adequacy Ratio Notice, etc.), including
those held in our trading account and the status of our overseas ABCP programs, etc.

12. Summary of Securitization Exposure and Its Risk Management
We are associated with securitization transactions from various perspectives and positions. With respect to quantitative information related to (a) to (c) below, see “Quantitative disclosure items for securitization exposure” described beginning from page 216
that follows the definition set forth in the Consolidated Capital Adequacy Ratio Notice, etc.

(a) Securitization of Our Assets (“Securitization as Originator”)
For the purposes of mitigating credit concentration risk and controlling economic capital, etc., we engage in securitization transactions (such as synthetic CDOs) of which underlying assets include mortgage loans, exposure to our corporate customers andsecuritization exposure. When conducting a securitization as originator, we consider various sides of such transaction, including
the effects of reduction of economic capital and improvement of return on risk as well as the practical effects of risk transfers,
and make a comprehensive judgment on structure and appropriateness of transaction.

214

(b) Securitization Program (ABCP/ABL) Sponsor
As a means of supporting our customers in their securitization of account receivables and trade notes, etc. held by our customers,
we retain securitization exposure by providing the asset-backed loan, or ABL, or providing an asset-backed commercial paper, or
ABCP, backup line, as sponsor. In such cases, in addition to gaining firm understanding of the actual risk profile through due diligence from the viewpoint of investors, we apply internal ratings and make evaluations by assessing such transactions and carefully managing the exposure together with other direct loan assets.
(c) Investment in Alternative Credit Risk Assets (“Securitization Transactions as Investor”)
We hold securitization instruments, such as ABS, CMBS, RMBS, and CDO, 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 Portfolio
Management Committee, etc., establish investment limits for securitization transactions as 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., as a meansof financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets, and to disclose
appropriately the risks and terms of the program to the investing customer.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash advance)and provide interest rate swaps to securitization conduits.
We conduct credit risk measurements on all credit transactions, including securitization transactions, and carry out periodic
monitoring on investment balance and performance on securitization transactions, etc., and report results to our Portfolio
Management Committee, etc.

Status of Response to Basel II
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply theratings-based approach (“RBA”) if the asset has a rating obtained from eligible external credit assessment institutions and apply
the supervisory formula approach (“SF”) in other cases pursuant to Consolidated Capital Adequacy Ratio Notice. We deduct securitization exposure from our capital when neither RBA nor SF can be applied.
In addition, in calculating credit risk-weighted assets of securitization exposure under the standardized approach, we calculate
based on risk weight according to ratings by eligible external credit assessment institutions and weighted average risk weight ofunderlying assets.
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 (Moody's), Standard & Poor's (S&P) and Fitch Ratings, Ltd. in determining securitization exposure risk weight (We do not separately designate eligible external credit assessment institutions for eachtype of securitization exposure).

13. 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 Business Accounting Standards No.10, “Accounting Standards Relating to
Financial Products” (Business Accounting Deliberation Council, January 22, 1999).
In addition, in consideration of global convergence of accounting standards, we conduct valuations based on market price orother reasonably calculated price (such as a price quoted by a broker or an information vender) unless valuation is extremely difficult in practice.
Furthermore, we apply appropriate accounting treatment on compound financial products based on “Report on Auditing
Securitized Instruments” announced by the Japanese Institute of Certified Public Accountants on March 26, 2008.

215

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

14. Quantitative Disclosure Items for Securitization Exposure
Securitization Exposure as Originator
We reclassified the disclosed figures of the fiscal year ended March 31, 2007, such as “classification based on type of underlying
assets,” etc., to conform to the classification used for the fiscal year ended March 31, 2008.

(a) Information by Type of Underlying Assets
Billions of yen

As of March 31, 2008
For the Fiscal Year ended March 31, 2008

Conventional Securitizations
Amount of Underlying Assets
Default Exposure

CreditCards¥

Residential
MortgageLoans— ¥ 313.0
—
2.4

Lease
Auto
Payment
Loans Receivables

¥

—
—

¥

Securitization
Products

RealEstateCorporate

— ¥
—

27.8
1.4

¥ 22.1—¥Total— ¥ 363.0—
3.8

Losses during the Fiscal Year

—

0.9

—

—

0.2

—

—

1.2

Amount of Exposures Securitized
during the Fiscal Year

—

—

—

—

—

—

—

—

Gains and Losses Recognizedon Sales during the Fiscal Year

—

—

—

—

—

—

—

—

Securitization Subject to Early
Amortization Treatment

—

—

—

—

—

—

—

—

—
—

—
—

—
—

—
—

776.3
—

—
—

269.5
—

1,045.8
—

—

—

—

—

—

—

—

—

Exposure related to Synthetic Securitizations
Amount of Underlying Assets
Default Exposure
Losses during the Fiscal Year
Amount of Exposures Securitized
during the Fiscal Year

¥

—

¥

—

¥

—

¥

— ¥ 329.1¥—¥

22.9 ¥ 352.0

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2008.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us,
exposure to assets originated by other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition ofdefault as set forth in the respective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The risk mitigating effects, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitizationtransactions are reflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”
7. Of ¥269.5 billion in synthetic securitization transactions with underlying assets classified as “Securitization products,” the underlying
assets of such securitization products that are subject to transfers (hedges) of risk consist mainly of “residential mortgage loans” and also
include “real estate” and “corporate loans,” etc.
Of the securitization schemes (with CDS and other means), described in Note 2 of “Foreign Currency denominated Securitization Products(Banking Subsidiaries)” on page 87, certain securitization schemes that do not fall within the definition of securitization exposure set forthin the Consolidated Capital Adequacy Ratio Notice are not included in “Securitization exposure as originator.”

216

Billions of yen

CreditCards

Residential
Mortgage
Loans

—
—

¥ 375.2
1.9

Losses during the Fiscal Year

—

1.4

—

Amount of Exposures Securitized
during the Fiscal Year——

Gains and Losses Recognizedon Sales during the Fiscal Year—

Securitization Subject to Early
Amortization Treatment

As of March 31, 2007
For the Fiscal Year ended March 31, 2007

Conventional Securitizations
Amount of Underlying Assets
Default Exposure¥

Exposure related to Synthetic Securitizations
Amount of Underlying Assets
Default Exposure
Losses during the Fiscal Year
Amount of Exposures Securitized
during the Fiscal Year

¥

Lease
Auto
Payment
Loans Receivables¥ 27.5
—

—

—

—

—

1.4

—

—

—

14.3

—

14.3

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—
—

—
—

—
—

—
—

549.0
—

—
—

314.0
—

863.1
—

—

—

—

—

—

—

—

—

¥

—

¥

—
—

—

¥

¥

—
—

¥

— ¥ 586.2

¥

—

¥

Total

58.2
1.7

—

¥

Real
EstateCorporate

Securitization
Products— ¥ 461.0—
3.6¥ 314.0 ¥ 900.2

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2007.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us,
exposure to assets originated by other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition ofdefault as set forth in the respective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The risk mitigating effects, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitizationtransactions are reflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”217

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(b) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2008

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

¥

—
—
—
—
—
—
—

0.0

¥

—

¥ 42.8CreditCards

Residential
Mortgage
Loans

Deduction from Capital
Total

Residential
Mortgage
Loans

¥

Lease
Auto
Payment
Loans Receivables

—
—
—
42.8
—
—

¥

—
—
—
—
—
—

¥

—

Total

¥

3.0
—
—
—
—
—

¥ 256.9 ¥
—
—
—
11.9
—

993.2
—
—
48.4
15.6
19.9

0.7

17.8

¥

3.0

Corporate

¥

—
—
—
—
—
—
—

17.1

¥

—

¥ 779.6—

RealEstateSecuritization
Products¥ 733.2
—
—
5.6
3.7
19.9

—

¥ 269.5 ¥ 1,095.1

Required
Capital

¥

6.4
—
—
5.7
0.3
4.5

¥

30.2

13.1

Billions of yen

As of March 31, 2007

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%¥

Deduction from Capital
Total

¥

—
—
—
—
—
—

¥

Lease
Auto
Payment
Loans Receivables

—
—
—
45.0
—
—

—

0.0

—

¥ 45.0

¥

—
—
—
—
—
—
—

Total

¥

2.0
—
—
—
—
—

¥ 295.3 ¥
—
—
—
18.0
—

734.4
—
—
147.5
18.0
—

—

0.6

13.3

¥

2.0

¥ 314.0 ¥

913.4

Real
EstateSecuritization
Products

Corporate

¥

—
—
—
—
—
—
—

12.7

¥

—

¥ 552.2—¥

Real
EstateSecuritization
Products¥ 437.0
—
—
102.5
—
—

Required
Capital

¥

4.4
—
—
11.1
0.3
—

¥

27.1

11.1

Capital Increase Due to Securitization Transactions
Billions of yen

CreditCards

As of March 31, 2008

Capital Increase due toSecuritization Transactions¥—

Residential
Mortgage
Loans

¥

9.3

Lease
Auto
Payment
Loans Receivables

¥

—

¥

—

Corporate

¥

—

¥

— ¥

—

Total

¥

9.3

Billions of yen

As of March 31, 2007

Capital Increase due toSecuritization Transactions¥

CreditCards

Residential
MortgageLoans—¥ 10.9Lease
Auto
Payment
Loans Receivables

¥

—

¥

—

Real
EstateCorporate¥—

Securitization
Products

¥

— ¥

—

Total

¥

10.9

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 ofSupplementary Provisions of the FSA Capital Adequacy Ratio Notice

218

2008

¥

—

2007

¥

—

Securitization Exposure as Sponsor of Securitization Programs (ABCP/ABL)(c) Information by Type of Underlying Assets
Billions of yen

As of March 31, 2008
For the Fiscal Year ended March 31, 2008

Amount of Underlying Assets
Default Exposure

CreditCards¥ 180.9—

Residential
Mortgage
Loans

¥

Lease
Accounts
Auto
Payment
and Note
Loans Receivables Receivables——¥ 110.9 ¥—298.8 ¥
8.5

722.9
9.5

0.3

5.0

22.6

Estimated Loss Amount related toUnderlying Assets

8.6—

Amount of Exposures Securitized
during the Fiscal Year¥ 504.6¥ 131.5¥ 652.2 ¥ 2,363.2 ¥ 3,020.7

Real
Estate¥——Others

¥

—
¥

—

Total

52.3 ¥ 1,366.0
—
18.0
6.2

42.9

¥ 362.3 ¥ 7,034.8

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2008.
2. Securitization exposure that is acquired in securitization of customer's claims other than as sponsor (in the form of asset-backed securities,
trust beneficiary rights and other transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and thefollowing parameters that are used in the calculation of capital adequacy ratio:· parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and· with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratingsbased approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.
7. Of “Amount of exposures securitized during the fiscal year,” a securitization product in the amount of ¥131.5 billion classified as“Residential mortgage loans” was acquired as a substitution payment of loans provided by Mizuho Corporate Bank, Ltd. to its sponsoringoverseas ABCP conduit. As we consolidated a special purpose company that issued such acquired securitization product as of the end of
the fiscal year, we include the securitization exposure held by such special purpose company in “Securitization exposure as investor.”
Billions of yen

As of March 31, 2007
For the Fiscal Year ended March 31, 2007

Amount of Underlying Assets
Default Exposure

CreditCards¥ 244.9—

Estimated Loss Amount related toUnderlying Assets

17.0

Amount of Exposures Securitized
during the Fiscal Year¥ 185.2

Residential
Mortgage
Loans

¥

—
—
—

¥

—

Lease
Accounts
Auto
Payment
and Note
Loans Receivables Receivables¥

72.0 ¥—

258.3 ¥
3.8

684.9
20.1

0.2

3.1

13.0

¥ 242.5 ¥ 1,658.7 ¥ 3,508.3

Real
Estate¥——Others

¥

—
¥

—

0.7
¥

Total

17.7 ¥ 1,278.0
—
23.9
34.2

17.7 ¥ 5,612.6

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2007.
2. Securitization exposure that is acquired in securitization of customer's claims other than as sponsor (in the form of asset-backed securities,
trust beneficiary rights and other transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and thefollowing parameters that are used in the calculation of capital adequacy ratio:· parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and· with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratingsbased approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.

219

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(d) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2008

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%¥ 27.4
—
11.7
159.3
—
31.3

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets

Residential
Mortgage
Loans

¥

—
—
—
—
—
—
—

—

—

—

¥

—

¥ 109.1¥ 271.4¥ 678.0

—

—

57.4

79.7

—
¥ 229.7

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables

165.4¥ 13.6
30.0
64.7
—
0.7
—

¥ 177.6
65.9
27.8
—
—
—

¥ 436.4
30.5
174.7
31.8
4.5
—

Real
Estate

¥

—
—
—
—
—
—

¥

—

OthersTotal¥

39.0 ¥
15.7
1.2
—
—
—

¥

56.0 ¥ 1,344.5

—

694.2
142.2
280.3
191.1
5.3
31.3

—

—

Required
Capital

¥

5.2
4.4
15.4
25.0
2.5
22.1

¥

74.8

—

46.0

—

348.7

/

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation ofrequired capital.
2. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
Billions of yen

CreditCards

As of March 31, 2007

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets

¥

3.1
90.3
5.1
184.2
—
0.8

Residential
Mortgage
Loans

¥

—
—
—
—
—
—
—

—

—

—

¥

—

¥ 65.0¥ 262.8¥ 621.5

—

—

51.1

24.7

—
¥ 283.6
244.5

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables¥ 24.7
—
40.2
—
—
—

¥ 165.4
80.6
10.8
5.9
—
—

¥ 441.2
34.2
123.1
22.7
0.1
—

Real
Estate

¥

—
—
—
—
—
—

¥

—

Others

¥

— ¥
18.6
—
—
—
—

¥

18.6 ¥ 1,251.7

—

—

Total

634.5
223.7
179.4
212.9
0.1
0.8

—

18.6

Required
Capital

¥

4.5
7.7
11.6
23.1
0.0
0.5

¥

47.6

—

—

339.0

/

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation ofrequired capital.
2. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary
Provisions of the FSA Capital Adequacy Ratio Notice

220

2008

¥

—

2007

¥

—

Securitization Exposure as Investor(e) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2008

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets
Exposure on Resecuritizations

Residential
MortgageLoans¥ 126.4 ¥ 1,626.8
1.9
17.2
56.1
18.9
—
—
—
1.3
—
—

Lease
Auto
Payment
Loans Receivables

CorporateReal
Estate¥ 318.7
—
0.3
—
—
—

¥ 428.1
16.9
4.0
2.5
—
—

¥ 355.5
55.1
2.3
0.2
—
—

¥ 629.1
166.1
23.9
—
—
—

13.3

—

—

16.8

20.6

¥ 184.6 ¥ 1,677.8¥ 319.0¥ 451.6¥ 430.1¥ 839.8

81.3
—

42.7
—

296.0
8.3

44.7
2.3

—

98.5
—

198.3
13.9

Total

Required
Capital¥ 187.0 ¥ 3,671.9
10.7
268.3
3.5
109.4
—
2.7
—
1.3
—
—

¥ 35.1
7.3
6.9
0.2
0.3
—

Others

7.7

58.5

35.8

¥ 209.1 ¥ 4,112.3¥ 85.8

21.4
3.7

783.2
28.3

/
/

Notes: 1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as
investor even when the assets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions
for those managed CLOs, etc., were ¥8.0 billion (treated as deduction from capital for purpose of capital adequacy ratio calculation), andour sale of assets to such managed CLOs, etc., during the fiscal year was ¥14.4 billion.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio
is recorded as securitization exposure as originator.
6. Securitization exposure as investor includes ¥85.9 billion liquidity facilities that we provide to ABCP programs sponsored by othercompanies. Note that such transactions are not included in the amounts disclosed in pages 86 to 93.
7. We classify securitization products whose underlying assets are securitization products such as ABS, etc. (e.g., ABS CDO)
as “resecuritizations.”

221

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Billions of yen

CreditCards

As of March 31, 2007

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets
Exposure on Resecuritizations

Residential
Mortgage
Loans¥ 129.8 ¥1,616.3
2.3
9.7
198.2
16.7
—
—
—
—
—
—

Lease
Auto
Payment
Loans Receivables

CorporateReal
Estate¥ 365.8
—
0.1
—
—
—

¥ 431.4
3.3
0.6
2.9
—
—

¥ 479.7
23.3
11.9
—
23.6
—

¥ 471.6
151.7
30.9
—
—
—

—

—

—

8.6

13.1

¥ 334.8 ¥1,642.8¥ 366.0¥ 438.3¥ 547.2¥ 667.5

94.3
—

19.9
—

394.4
9.7

41.6
6.2

4.3

261.2
—

203.6
15.3

OthersTotal¥ 219.7 ¥3,714.5
15.0
205.5
2.8
261.6
—
2.9
—
23.6
—
—
0.0

¥

26.1

¥ 237.6 ¥4,234.5
20.2
19.4

Required
Capital

36.0
5.5
16.8
0.2
8.7
—
25.8

¥

93.2

1,035.4
50.7//

Notes: 1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as
investor even when the assets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions
for those managed CLOs, etc., were ¥6.3 billion (treated as deduction from capital for purpose of capital adequacy ratio calculation), andour sale of assets to such managed CLOs, etc., during the fiscal year was ¥105.9 billion.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio
is recorded as securitization exposure as originator.
6. We classify securitization products whose underlying assets are securitization products such as ABS, etc. (e.g., ABS CDO)
as “resecuritizations.”

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary
Provisions of the FSA Capital Adequacy Ratio Notice

2008

¥

—

2007

¥

—

Note that, in addition to the above, within the provision of credit in the form of eligible servicer cash advance, set forth in Article
246 of the Notice, there was an undrawn portion to which no required capital is allocated.
The balances of such portion as of March 31, 2007 and 2008 were ¥40.7 billion and ¥39.1 billion, respectively.

222

Market Risk
See pages 61 to 66 for information regarding market risk.

Operational Risk
See pages 66 to 67 for information regarding operational risk.

Equity Exposure
15. Risk Management Related to Equity ExposureWith regard to equities in our banking book, we manage default risk through our credit risk management structure and pricefluctuation 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 management classification.
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 whichhave readily determinable fair values are valued at the quoted market price if available, or otherwise based on their reasonablevalue at the consolidated balance sheet date (cost of securities sold is calculated primarily by the moving average method); andother securities which do not have readily determinable fair values are stated at acquisition cost or amortized cost as determinedby the moving average method.

16. Status of Equity Exposure in Banking Book(a) Amounts Stated in Consolidated Balance Sheet
Billions of yen

As of March 31,

2008
Consolidated Balance Sheet
Amount¥ 4,178.6
559.6¥ 4,738.3

Exposure of Listed Stock, etc.
Other Equity Exposure
Total

Fair Value

2007
Consolidated Balance Sheet
AmountFair Value¥ 4,178.6
559.6¥ 6,063.1
363.2¥ 6,063.1
363.2¥ 4,738.3¥ 6,426.3¥ 6,426.3

Note: Above figures include only Japanese and foreign stocks.

(b) Gains and Losses on Sales Related to Equity Exposure
Billions of yen

2008
For the Fiscal Years ended March 31,

Sale of Equity Exposure

Gains and Losses
on Sales¥ 335.0

2007

Gains on Sales Losses on Sales

¥

343.9

¥

8.8

Gains and Losses
on Sales¥ 225.8

Gains on Sales Losses on Sales

¥

231.2

¥

5.3

Note: Above figures represent gains and losses on sales of stocks in our consolidated statement of income.

223

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(c) Gains and Losses from Write-Offs Related to Equity Exposure
Billions of yen

For the Fiscal Years ended March 31,

2008
Gains and Losses from Write-offs

2007
Gains and Losses from Write-offs

Write-offs of Equity Exposure¥ (102.6)¥ (335.7)

Note: Above figures represent losses on devaluation of stocks in our consolidated statement of income.

(d) Unrealized Gains and Losses Recognized in the Consolidated Balance Sheet and Not Recognized in theConsolidated Statement of Income
Billions of yen

2008

As of March 31,

Equity exposure

Net Unrealized
Gains

¥

986.6

2007

Unrealized
Gains

Unrealized
Losses¥ 1,200.6

¥

213.9

Net Unrealized
Gains

Unrealized
Gains

Unrealized
Losses¥ 2,711.4¥ 2,759.7¥

48.3

Note: Above figures include only Japanese and foreign stocks.

(e) Unrealized Gains and Losses Not Recognized in the Consolidated Balance Sheet or in the Consolidated
Statement of Income
None for the fiscal years ended March 31, 2008 and 2007.

(f) Equity Exposure by Portfolio Classification
Billions of yen

As of March 31,

PD/LGD Approach
Market-based Method (Simple Risk Weight Method)
Market-based Method (Internal Models Approach)Transitional Measure Applied
Total

224

2008

2007

¥ 1,060.9
277.6—
3,748.2

¥

910.9
147.0
—
5,492.0¥ 5,086.8¥ 6,550.1

Senior Executives

Mizuho Financial Group

Mizuho Corporate Bank

Board of Directors

Board of Directors

Terunobu Maeda*

Hiroshi Saito*

Managing Director

President & CEO

President & CEO

Masakazu Kawabata*Takashi Tsukamoto*

Norimasa Kuroda*

Managing Director

Deputy President

Deputy President

Head of Financial Control and Accounting Group /Chief Financial Officer (CFO)

Yasuhiro Sato*

Shuzo Haimoto*Managing Director

Tetsuro Ueno*

Corporate Auditors

Deputy President

Hiroshi Kiyama

Head of Internal Audit Group

Corporate Auditor

Head of Strategic Planning Group and Head of IT,
Systems & Operations Group / Chief Strategy
Officer (CSO) / Chief Information Officer (CIO)

Yutaka Miyamoto*Takuo Hirota

Deputy President

Corporate Auditor

Masao Fujioka*

Tsuneo Morita*

Yukio Nozaki

Managing Director

Corporate Auditor

Managing Director

Chief Risk Officer / Head of Risk Management Group
Chief Human Resources Officer / Head of Human
Resources Group

Toshiaki Hasegawa

Hiroshi Motoyama*
Managing Director

Head of Internal Audit Group / Chief Auditor (CA)Hiroshi Saito
Director

Seiji Sugiyama
Director

Akihiko Nomiyama
Director

Mitsuo Ohashi

Tetsuo Hiramatsu*

Corporate Auditor

Managing Director

Mizuho Securities

Chief Strategy Officer / Head of Strategic PlanningGroup Chief Financial Officer / Head of Financial
Control & Accounting Group

Board of Directors

Mikito Nagai*
Managing Director
Head of Corporate Banking Unit

Director

Keisuke Yokoo
President

Tetsuya Fukabori
Deputy President

Kanemitsu Anraku

Corporate Auditors

Director

Mitsuo Hirakata

Deputy President

Corporate Auditor

Akira Kawamura

Keizo Nemoto

Deputy President

Corporate Auditors
Yoshiaki Sugita
Corporate Auditor

Tsuneo Muneoka
Corporate Auditor

Yukio Nozaki

Masahiro Murayama

Corporate Auditor

Yukio Nozaki
Corporate Auditor

Toshiaki Hasegawa
Corporate Auditor

Corporate Auditor

Mizuho Trust & Banking
Board of Directors
Teruhiko Ikeda
Chairman

Masahiro Seki

Executive Officers

Takashi Nonaka*

Corporate Auditor

Mitsuhiro Nagahama

President and CEO

Masami Ishizaka

Managing Executive Officer

Mitsuyoshi Tohyama*

Corporate Auditor

Executive Officers
Hajime Saito

Head of the Americas

Hidetake Nakamura
Managing Executive Officer
Head of International Banking UnitManaging Executive Officer

Keizo Ohashi

Head of Risk Management Group, Head of Human
Resources Group and Head of Compliance Group /Chief Risk Officer (CRO) / Chief Human Resources
Officer (CHRO) / Chief Compliance Officer (CCO)Managing Executive Officer

Masanori Murakami

Hidemi Hiroi
Executive Officer
General Manager of Group Strategic Planning

Toshitsugu Okabe
Executive Officer
General Manager of Executive Secretariat

Nobutake Nishijima*
Deputy President

Mitsuaki Tsuchiya*
Deputy President

Head of Asia & Oceania

Shinya Wako
Managing Executive Officer
Head of Europe, Middle East and Africa

Executive Officer
General Manager of Corporate Communications

Deputy President

Mizuho Bank
Board of Directors
Seiji Sugiyama*
President & CEO

Tetsuji Kosaki*
Deputy President

Satoru Nishibori*
Deputy President

Takuro Yoshida*
Managing Director

Notes:1. * Indicates Directors concurrently serving as
Executive Officers.
2. Executive Officers, excluding the Directors
concurrently serving as Executive Officers andExecutive Officers responsible for global regional
operations and the head of the International
Banking Unit of Mizuho Corporate Bank, have notbeen listed.
3. Executive Officers, excluding Directors concurrently
serving as Executive Officers of Mizuho Bank, havenot been listed.
4. Members of the Board of Directors other than the
President and the Deputy Presidents, and the
Corporate Auditors as well as the Executive Officersof Mizuho Securities, have not been listed.
5. Members of the Board of Directors other than the
Chairman, President and CEO and the Deputy
Presidents, and the Corporate Auditors as well as
the Executive Officers of Mizuho Trust & Banking,have not been listed.

(As of June 26, 2008)

225

Location of Overseas Offices(As of June 30, 2008)

Network of Mizuho Corporate Bank

Asia and Oceania(Country/Region)
China

Mizuho Corporate Bank (China), Ltd.
Head Office
25th Floor, HSBC Tower, 1000 Lujiazui Ring Road,
Pudong New Area, Shanghai
200120, The People's Republic of China
TEL 86-21-6841-0001

Mizuho Corporate Bank (China), Ltd.
Beijing Branch
8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People's Republic of China
TEL 86-10-6525-1888

Mizuho Corporate Bank (China), Ltd.
Dalian Branch
6th Floor, Senmao Building, Zhongshan
Road 147, Xigang District, Dalian 116011,
The People's Republic of China
TEL 86-411-8360-2543

Mizuho Corporate Bank (China), Ltd.
Qingdao Branch
44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Qingdao City,
Shandong Province, 266071,
The People's Republic of China
TEL 86-532-8097-0001

Mizuho Corporate Bank (China), Ltd.
Shenzhen Branch
21st Floor, Shenzhen International Financial
Building, Jian She Lu, Shenzhen, Guangdong
Province 518001, The People's Republic of China
TEL 86-755-8222-1918

Mizuho Corporate Bank (China), Ltd.
Tianjin Branch
E2ABC-5F, East Wing Binhai Finance Zone, No.20
Xinchengdong Road, TEDA, Tianjin, 300457,
The People's Republic of China
TEL 86-22-6622-5588

Mizuho Corporate Bank (China), Ltd.
Wuxi Branch
8th Floor, Wuxi Software Park, No.16
Changjiang Road, WND, Wuxi,
Jiangsu Province, 214028
The People's Republic of China
TEL 86-510-8522-3939

Mizuho Corporate Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch
22nd Floor, Gugeng International Business
Building No.138 Jin Ma Road, Economic andTechnological Development Area Dalian,
Liaoning Province, The People's Republic of China
TEL 86-411-8793-5670

Guangzhou Representative Office
12th Floor, Garden Tower, 368 Huanshi
Dong Lu, Guangzhou 510064,
The People's Republic of China
TEL 86-20-8385-8000

Nanjing Representative Office
Room 801, Nanjing Grand Hotel, 208 Guangzhou
Road. Nanjing, Jiangsu Province 210024,
The People's Republic of China
TEL 86-25-8332-9379

Wuhan Representative Office
Room 411, Shangri-la Hotel, 700 Jian She Dadao,
Wuhan 430015, The People's Republic of China
TEL 86-27-8578-1155

226

Xiamen Representative Office

Taichung Branch

Room 2102, The Bank Center, No.189 Xiahe Road,
Xiamen, Fujian 361003,
The People's Republic of China
TEL 86-592-239-5571

8th Floor 111-66 Sec.2, Wenshin Road,
Taichung 407, Taiwan
TEL 886-4-2374-6300

Hong Kong

Hong Kong Branch
17th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2103-3000

Mizuho Capital Markets (HK) Limited
16th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2537-3815

India

Mumbai BranchTaipei Branch
2nd Floor, Hung Kuo Building, 167 Tun Hua
North Road, Taipei 105, Taiwan
TEL 886-2-2715-3911

Thailand

Bangkok Branch
18th Floor, TISCO Tower, 48 North Sathorn Road,
Silom, Bangrak, Bangkok 10500, Thailand
TEL 66-2-638-0200

VietnamHanoi Branch

Maker Chamber III, 1st Floor, Jamnalal Bajaj Road,
Nariman Point, Mumbai, 400021 India
TEL 91-22-2288-6638

Suite 403~407, 63 LTT Building,
63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
TEL 84-4-9363-123

New Delhi Branch

Ho Chi Minh City Branch

4th Floor, East Tower, Sood Tower, 25,
Barakhamba Road, New Delhi 110 001 India
TEL 91-11-3041-0900

18th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
TEL 84-8-8278-260

Indonesia

PT. Bank Mizuho Indonesia
Plaza Bll Menara 2, 24th Floor, JL., M.H. Thamrin
No.51, Jakarta 10350, Republic of Indonesia
TEL 62-21-392-5222

Australia

Sydney Branch
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Korea

Seoul Branch
19th Floor, Seoul Finance Center, 84 Taepyung-ro
1-ka, Chung-ku, Seoul, Republic of 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 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Kuala Lumpur Representative Office
Level 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6595

Philippines

Manila Branch
26th Floor, Citibank Tower, Valero Street corner
Villar Street, Salcedo Village, Makati City,
Metro Manila, Philippines
TEL 63-2-860-3550

Singapore

Singapore Branch
168 Robinson Road, #13-00 Capital Tower,
Singapore 068912, Republic of Singapore
TEL 65-6423-0330

TaiwanKaohsiung Branch
12th Floor, No.2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
TEL 886-7-236-8768

Europe and the Middle East(Country/Region)
AustriaMizuho Corporate Bank-BA
Investment Consulting GmbH
Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

BelgiumMizuho Corporate Bank Nederland 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 33-1-5383-4100

Germany

Düsseldorf Branch
Königsallee 60 D, 40212 Düsseldorf,
F.R. Germany
TEL 49-211-13020

Mizuho Corporate Bank (Germany)
Aktiengesellschaft
Taunustor 2, 60311 Frankfurt am Main,
F.R. Germany
TEL 49-69-27282-0

ItalyMilan Branch
6th Floor, Largo Augusto 7, 20122 Milan,
Republic of Italy
TEL 39-02-778-0001

The Netherlands

Mizuho Corporate Bank Nederland N.V.
Apollolaan 171, 1077 AS, Amsterdam,
The Netherlands
TEL 31-20-5734343

United Kingdom

London Branch
Bracken House, One Friday Street,
London EC4M 9JA, UK
TEL 44-20-7012-4000

River Plate House Representative
OfficeRiver Plate House, 7-11 Finsbury Circus,
London EC2M 7DH, UK
TEL 44-20-7012-4000

Mizuho Capital Markets (UK) LimitedRiver Plate House, 7-11 Finsbury Circus,
London EC2M 7DH, UK
TEL 44-20-7972-9900

The Americas(Country/Region)
Mizuho Corporate Bank (U.S.A.)
Nassau Branch
SG Hambros Building West Bay Street
P.O. Box N-7788 Nassau, Bahamas

BrazilSão Paulo Representative Office
Avenida Paulista, 1274-11, andar, Bela Vista,São Paulo, SP, CEP. 01310-925, Brazil
TEL 55-11-3251-4199

CanadaTehran Representative Office
3rd Floor, No.1, 14th Street,
Khaled Eslamboli Avenue, Tehran 15117, IranTEL 98-21-8872-6593

U.A.E

Dubai Branch
The Gate Village, Building Number 5, Level 2,
Dubai International Financial Centre, P.O.Box
No:506607, Dubai, United Arab Emirates
TEL 971-4-425-9200

RussiaZAO Mizuho Corporate Bank
(Moscow)
37 Bolshaya Ordynka, Moscow, 119017, RussianFederation
TEL 7-495-729-5858

Moscow Representative Office
12 Trubnaya Street, Moscow 107045, RussianFederation
TEL 7-495-787-2771

Mizuho Corporate Bank (USA)1251 Avenue of the Americas,
New York, NY 10020, U.S.A.
TEL 1-212-282-3030

Mizuho Corporate Bank (USA)Atlanta Representative Office

100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
TEL 1-416-874-0222

Mizuho Corporate Bank (USA)
Chicago Representative Office

Vancouver Office
Suite 305, South Tower, 5811 Cooney Road,
Richmond, British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

Mizuho Corporate Bank (Canada)

Mizuho Corporate Bank (Canada)
Vancouver Office

Iran1731 Technology Drive, Suite 100, San Jose,
California 95110, U.S.A.
TEL 1-408-487-1788

3353 Peachtree Road NE, Atlanta Financial
Center, Suite 500, Atlanta, Georgia 30326, U.S.A.
TEL 1-404-364-1550

Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-20-7012-4300

Suite 201-202, Entrance 4,
2nd Floor, Manama Center, Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
TEL 973-17-224522

Mizuho Corporate Bank of California
Silicon Valley Branch

Canada Branch

100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada M5C 2W1
TEL 1-416-874-0222

Bahrain Representative Office

350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, U.S.A.
TEL 1-213-612-2700

BahamasMizuho Investment Management(UK) Ltd.

BahrainMizuho Corporate Bank of California

Suite 305, South Tower, 5811 Cooney Road,
Richmond, British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

Cayman Islands

Cayman Branch
Coutts House, 1446 West Bay Road,
P.O. Box 707GT, Grand Cayman, Cayman Islands,
British West Indies

Mexico311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, U.S.A.
TEL 1-312-855-1111

Mizuho Corporate Bank (USA)
Houston Representative Office5051 Westheimer Road, Galleria Tower II ,Suite 710, Houston, Texas 77056, U.S.A.
TEL 1-713-499-4800

Mizuho Corporate Bank (USA)Los Angeles Representative Office
350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, U.S.A.
TEL 1-213-243-4500

Mizuho Alternative Investments, LLC
1251 Avenue of the Americas, New York, NY
10020 U.S.A.
TEL 1-212-282-3871

Mizuho Capital Markets Corporation
1440 Broadway, 25th Floor,
New York, NY 10018, U.S.A.
TEL 1-212-547-1500

Mexico Representative Office
Edificio Omega, Campos Eliseos No.345-11,
Col. Chapultepec Polanco, Deleg. MiguelHidalgo, 11560 Mexico, D.F., Mexico
TEL 52-55-5281-5037

U.S.A.

Chicago Branch
311 South Wacker Drive, Suite 2020,
Chicago, IL 60606, U.S.A.
TEL 1-312-855-1111

New York Branch
1251 Avenue of the Americas,
New York, NY 10020, U.S.A.
TEL 1-212-282-3000

Los Angeles Agency
350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, U.S.A.
TEL 1-213-243-4500

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, Georgia 30326, U.S.A.
TEL 1-404-364-1550

Houston Representative Office5051 Westheimer Road, Galleria Tower II ,Suite 710, Houston, Texas 77056, U.S.A.
TEL 1-713-499-4800

Mizuho Desk(Country/Region)
Asia and Oceania

Maybank
Menara Maybank, 100 Jalan Tun Perak,
50050 Kuala Lumpur, Malaysia
TEL 60-3-2031-2346

Europe and the Middle East

Raiffeisen Zentralbank Osterreich AG
A-1030 Wein, Am Stadpark 9, Austria
TEL 43-1-71707-1375

Mashreqbank psc
P.O.Box 1250, Omar Bin Al Khatab Rd,
Next to Al Ghurair Centre, Deira, Dubai
TEL 971-4-207-7945
971-4-207-7267”Mizuho Desk”
By forming tie-ups with major financial institutions in regions where Mizuho does not possess
offices, we offer our customers financial services
through various institutions. (Transactions are
conducted directly between the customer and the
local financial institution.)227

Location of Overseas Offices

Network of Mizuho Securities

Network of Mizuho Trust & Banking

Beijing Representative OfficeLondon Representative Office

8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People's Republic of China
TEL 86-10-6523-4779

River Plate House, 7-11 Finsbury Circus, London
EC2M 7HB, United Kingdom
TEL 44-20-7588-7400

Shanghai Representative OfficeMizuho Trust & Banking(Luxembourg) S.A.

24th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-8000

1B, Parc d'Activité Syrdall, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-4216171

Mizuho Investment Consulting(Shanghai) Co., Ltd.
24th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-5888

Mizuho Securities Asia Limited
11th Floor, CITIC Tower,
1 Tim Mei Avenue, Central, Hong Kong, S.A.R.,
The People's Republic of China
TEL 852-2685-2000

Mizuho Futures (Singapore) Pte.,
Limited
5 Shenton Way, #15-01, UIC Building
068808, Republic of Singapore
TEL 65-6221-3633

Mizuho Bank (Switzerland) Ltd
Loewenstrasse 32, 8021 Zurich, Switzerland
TEL 41-44-216-9111

Mizuho International plc
Bracken House, One Friday Street,
London EC4M 9JA, UK
TEL 44-20-7236-1090

Mizuho Securities USA Inc.
1251 Avenue of the Americas, 33rd Floor,
New York, NY 10020, U.S.A.
TEL 1-212-209-9300

The Bridgeford Group, Inc.
445 Park Avenue, 20th Floor,
New York, NY 10022, U.S.A.
TEL 1-212-705-0880

228

Mizuho Trust & Banking Co. (USA)135 W. 50th Street, 16th Floor, New York,NY 10020, U.S.A.
TEL 1-212-373-5900

Network of DIAM
DIAM International Ltd.
Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-20-7329-3777

DIAM Singapore Pte. Ltd.
2 Shenton Way #12-01 SGX Centre1,
Singapore 068804
TEL 65-6532-5470

DIAM U.S.A. Inc.
1133 Avenue of the Americas, 28th Floor,
New York, NY 10036, U.S.A.
TEL 1-212-350-7650

Investor Information

Date of Establishment(Preferred Stock)
Percentageof shares
outstanding
Shares held(%)

January 8, 2003

Paid-in Capital
DEUTSCHE BANK AG, LONDON 610(Standing proxy agent: Deutsche
Securities Inc.)¥1,540,965 million

Outstanding Shares
12,376,684.66 shares
Common Stock: 11,396,254.66 shares
Preferred Stock:980,430 shares

Number of Shareholders
Common Stock:
Preferred Stock:359,9172,202

Major Shareholders(Common Stock)
Percentageof shares
outstanding
Shares held(%)

Japan Trustee Services Bank, Ltd.
(Trustee account)

700,643.00

6.14

The Master Trust Bank of Japan, Ltd.
(Trustee account)

595,358.00

5.22

The Dai-ichi Mutual Life Insurance
Company

279,158.00

2.44

Japan Trustee Services Bank, Ltd.
(Trustee account 4)

226,316.00

1.98

48,6304.96

MORGAN STANLEY & CO. INTERNATIONAL
PLC (Standing proxy agent: Morgan
Stanley Japan Securities Co., Ltd.)32,795

3.34

UBS AG LONDON A/C IPB SEGREGATEDCLIENT ACCOUNT (Standing proxy agent:
Citibank Japan Ltd.)

27,045

2.75

The Dai-ichi Mutual Life Insurance
Company

27,0002.75

BNP PARIBAS LONDON BRANCH FOR
BNPPPB EVOTOK (Standing proxy agent:
HSBC Limited)

25,6002.61

Meiji Yasuda Life Insurance Company

25,0002.54

MORGAN STANLEY & CO. INC (Standing
proxy agent: Morgan Stanley Japan
Securities Co., Ltd.)

19,2901.96

LEHMAN BROTHERS INTERNATIONAL(EUROPE) (Standing proxy agent: Lehman
Brothers Japan Inc.)

19,2601.96

Sompo Japan Insurance Inc.

19,000

1.93

FUKOKU MUTUAL LIFE INSURANCECOMPANY

15,0001.52

Note: The numbers of Preferred Stock above are the total shares of the Eleventh
Series Class XI and Thirteenth Series Class XIII Preferred Stock.

BNY GCM CLIENT ACCOUNT JPRD ISG(FE-AC) (Standing proxy agent: The
Bank of Tokyo-Mitsubishi UFJ, Ltd.)
194,330.00

1.70

MORGAN STANLEY & CO.
INTERNATIONAL PLC (Standing proxyagent: Morgan Stanley Japan
Securities Co., Ltd.)144,106.00

1.26

Trust & Custody Services Bank, Ltd.
(Meiji Yasuda Life Insurance Company
Retirement Benefit Trust Accountre-entrusted by Mizuho Trust &Banking Co., Ltd.)
137,000.00

1.20

HERO & CO (Standing proxy agent:Mizuho Corporate Bank, Ltd.)*

133,558.00

1.17

Nippon Life Insurance Company

132,630.76

1.16

DEUTSCHE BANK AG, LONDON 610(Standing proxy agent: Deutsche
Securities Inc.)

101,270.00

0.88(As of March 31, 2008)* HERO & CO is a nominee of the shares deposited for the purpose of issuanceof American Depository Receipts (ADR).

229

Investor Information

Stock Listings(Common Stock)
Tokyo Stock Exchange
Osaka Securities Exchange(ADR)
New York Stock Exchange

ADR* Information
Accounting Auditors

Outline of Mizuho Financial Group's ADR

Ernst & Young ShinNihon LLC

Shareholder Register Manager
Mizuho Trust & Banking Co., Ltd.

Fiscal Year
April 1 to March 31

Convocation of General Meetings of Shareholders
An ordinary general meeting of shareholders of theCompany shall be convened no later than 3 months fromthe last day of each business year and an extraordinary
general meeting of shareholders shall be convened whenever necessary.

Record Date
1. The Company shall deem shareholders having voting
rights appearing in writing or electronically in the registerof shareholders as of the end of March 31 of each year as
the shareholders who are entitled to exercise their rights atthe ordinary general meeting of shareholders for the relevant business year.
2. In addition to the preceding paragraph, the Company may
temporarily set the record date whenever necessary, by aresolution of the Board of Directors and upon giving aprior public notice thereof.

Dividends from Surplus Approved by Resolution of
Ordinary General Meeting of Shareholders
Dividends from the surplus approved by a resolution of an
ordinary general meeting of shareholders shall be distributed
to the shareholders or registered stock pledgees appearing
in writing or electronically in the register of shareholders asof the end of March 31 of each year.

Interim Dividends
The Company may, by a resolution of the Board of Directors,
distribute interim dividends provided for in Article 454,
Paragraph 5 of the Company Law of Japan to the shareholders or registered stock pledgees appearing in writing or electronically in the register of shareholders as of the end of
September 30 of each year.

230

1. NYSE ticker symbol :2. CUSIP :3. Conversion ratio :4. Depositary bank :MFG
60687Y109
500 ADRs = 1 common share
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Phone: 1-201-680-6825
U.S. Toll Free: 888-269-2377
http://www.adrbnymellon. com/
5. Local custodian bank : Mizuho Corporate Bank, Ltd.

* ADRs are securities issued for the purpose of trading in the U.S. in place of
the underlying stock of foreign companies. As ADRs are registered with
the SEC as U.S. securities, they are traded, settled and held in custody insubstantively the same manner as the stocks of U.S. companies. ADR is anacronym for American Depositary Receipts.

Disclosure Policy

Basic Principles
We aim to win the highest regard of our shareholders andthe market and to earn the trust of society as Japan's leading
comprehensive financial services group. For this reason, weplace one of the highest management priorities on continuing to disclose information to our customers, shareholders,and investors both in and outside Japan in a fair, timely andappropriate manner, in order that they may form proper
judgments and appraisals of the group. To achieve this aim,
we observe applicable domestic and international laws andregulations as well as stock exchange rules relating to corporate disclosure, and we establish and implement appropriate
Disclosure Controls and Procedures.

Disclosure Controls and Procedures(1) Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are established toobserve 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 processcarried out by directors, officers and employees ofMizuho Financial Group and include internal controls
designed to provide reasonable assurance regarding thereliability of Financial Reporting and the Preparation of
Financial Statements. We have established the basic principles underlying our Disclosure Controls and Procedures
as well as our internal rules related to Disclosure Controls
and Procedures that govern the management framework
for the entire Mizuho Financial Group including groupcompanies, and we endeavor to establish, implement andcontinuously improve our Disclosure Controls andProcedures. Our Disclosure Committee is the principal
management body that is responsible for discussing andexploring matters relating to Disclosure Controls andProcedures.
(2) Evaluation of Effectiveness of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our
Disclosure Controls and Procedures is conducted regularly
by reviewing the contents of such documentation andtheir implementation. In addition, evaluation of the effectiveness and appropriateness of Disclosure Controls andProcedures is 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 Controls and Audit Hotline”, a systemdesigned for obtaining concerns regarding questionableaccounting or auditing matters from both inside and outside Mizuho Financial Group.

Disclosure Methods, Other(1) Disclosure Methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and international laws and regulations as well as stock exchange
rules, we follow the defined disclosure procedures such as
publishing such information in business reports (JigyoHokoku), annual securities reports (YukashokenHokokusho) and other disclosure publications, as well as
providing such information through the information distribution systems of domestic and international stock
exchanges and through press releases. We also endeavor
to disclose other information in a fair, timely and appropriate manner. When we disclose such information, webasically publish on our website the information we disclose. In addition, we endeavor to utilize the latest disclosure methods and tools to provide more fair andwidespread disclosure.
(2) Investor Relations Activities
In accordance with our Basic Principles described above,
and with due attention to two-way communication, we
endeavor sincerely to facilitate a proper understanding of
our management strategies, financial condition and othermatters. In this way, 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 as well as
stock exchange rules, we endeavor to grasp properly thetypes of information desired by the market and to disclose useful and appropriate information voluntarily andproactively. Regarding disclosure of information we consider particularly important, we communicate such information on an ad hoc basis as and when necessary, even if
a press release has already been issued, through suchmeans 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
to limit carefully our explanations to matters already disclosed and facts commonly known.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding
Mizuho Financial Group in the market due to the spreadof rumors or otherwise, we endeavor to investigate theircauses and correct such misconceptions promptly.

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Privacy Policy Regarding Customer Information

Mizuho Financial Group, Inc. (“MHFG”) hereby establishes
and announces the “Privacy Policy Regarding Customer
Information” applicable to Mizuho Financial Group which iscomposed of MHFG, its consolidated subsidiaries and affiliates (which are accounted for by the equity method) that arelisted in MHFG's Financial Reports.

Policy of Management
Mizuho Financial Group recognizes appropriate protection
and use of personal information to be important social
responsibilities, and makes every effort to appropriately protect and use personal information complying with the
Personal Data Protection Law in Japan, other related regulations and the internal rules of Mizuho Financial Group, including the “Privacy Policy Regarding Customer Information”
when Mizuho Financial Group conducts business.

Proper Acquisition

Management of Sensitive Information
Mizuho Financial Group will not acquire, use and provide to
any third party sensitive information (e.g. political affiliation,
religion, participation in labor union, race, ethnic group, family origin, legal address on family registry and medical information) unless authorized by law or it is necessary to conductbusiness on condition that Mizuho Financial Group has customer consent.
Security Measures
Mizuho Financial Group will maintain and manage accurate
and up to date personal information, and prevent leakage of
information with rational security measures. Mizuho Financial
Group will properly supervise employees and parties
entrusted with handling personal information.

Continuous Improvement

Mizuho Financial Group will acquire personal informationthat is necessary to conduct its business by proper and lawfulmeans.

Mizuho Financial Group will continuously review this policy
according to the development of information technologies
and the changes in social demand, and improve the management of personal information.

Purpose of Use

Procedures to Request Disclosure

Mizuho Financial Group will specify the purpose of use of
personal information and will not use it beyond the specified
purpose. Furthermore, Mizuho Financial Group will not use
personal information beyond the purpose limited by related
regulations.
The purpose of use of personal information is set forththrough the web site or other measures provided by eachcompany of Mizuho Financial Group.

Mizuho Financial Group will endeavor to properly andpromptly cope with following requests from customers:
 notification of the purpose of use
 disclosure of personal data correction, addition and deletion of personal data that do
not reflect the facts
 suspension of use and elimination of personal data suspension of providing personal data to a third party

Limitation on Providing Personal Information to a
Third Party

Customer Request

Mizuho Financial Group will not provide personal information
to any third party in principle unless the individual concerned
has agreed to such use or it is authorized by law. However,Mizuho Financial Group may provide personal information to
relevant entities without customer consent in following
cases:
 Mizuho Financial Group entrusts management of personal information that is necessary to achieve the purpose of use to a third party.
 Mizuho Financial Group is one of the parties in a consolidation transaction.
 Mizuho Financial Group uses personal information jointlywith designated entities that are publicly informed.

Mizuho Financial Group will endeavor to cope with customer
requests for the management of personal information sincerely and promptly.

 Strengthening Information Security Management Systems
MHFG obtained certifications for the Information Security Management Systems of all divisionsof the company under both the Conformity Assessment Scheme, “ISO/IEC27001: 2005,” theinternational standard, and “JIS Q 27001: 2006,” the domestic standard.
IS97580 / ISO IEC27001

232

Contact Information

Mizuho Financial Group, Inc.
Marunouchi 2-chome Building,
2-5-1, Marunouchi,
Chiyoda-ku, Tokyo, 100-8333
Japan
Tel. +81-(0)3-5224-1111
URL: http://www.mizuho-fg.co.jp/english/

Mizuho Corporate Bank, Ltd.

 MHFG's “News Release E-mail Distribution
Service”
MHFG offers an e-mail service for notifying registered users the title and the URL page of thegroup's news releases when releases are placed on
the group's website.
If you wish to register for this service, please
access MHFG's website (http://www.mizuhofg.co.jp/english/), and click “News Release E-mailDistribution Service.”

1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.mizuhocbk.co.jp/english/

Mizuho Bank, Ltd.
1-1-5, Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011,
Japan
Tel. +81-(0)3-3596-1111
URL: http://www.mizuhobank.co.jp/english/

Mizuho Trust & Banking Co., Ltd.
1-2-1, Yaesu,
Chuo-ku, Tokyo 103-8670,
Japan
Tel. +81-(0)3-3278-8111
URL: http://www.mizuho-tb.co.jp/english/

Mizuho Securities Co., Ltd.
Otemachi First Square,
1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5208-3210
URL: http://www.mizuho-sc.com/en/

233